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7 January 2013
Twelve-year Sentence for Franklin Man Who Purchased Sadistic Images of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Paul G. Fox, 48, of Franklin, Ohio was sentenced in U.S. District Court today to 144 months in prison for possession of more than 600 images of child pornography, depicting children under 12 years old in sadistic and masochistic conduct.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Marlon Miller, Special Agent in Charge, Homeland Security Investigations (HSI), and members of the Greater Cincinnati Internet Crimes Against Children Task Force (ICAC) announced the sentence handed down today by Senior U.S. District Judge Sandra S. Beckwith.
Fox pleaded guilty on April 24, 2013 to one count of receipt of child pornography. According to court documents, HSI received a child exploitation referral from the Queensland Police in Australia regarding images posted on a Russian image board indicating the exchange of images of child exploitation, with information pointing to Fox.
HSI and Franklin Police obtained a search warrant for Fox’s house on January 9, 2013 where they seized computer storage media and a computer. A forensic analysis of the computer by the Secret Service showed that Fox knowingly received multiple images and videos depicting violence or sadistic conduct. Fox possessed more than 600 images. Fox was arrested January 11, 2013 and has been in custody since his arrest.
After he completes his prison term, Fox will be under court supervision for the rest of his life. Under federal law, he must register as a sex offender anywhere he lives, works or goes to school.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by HSI and ICAC, as well as the Regional Electronics and Computer Investigations (RECI). Agencies participating in the Greater Cincinnati ICAC, in addition to the U.S. Attorney’s Office include the FBI, U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, Hamilton County Sheriff Jim Neil and the police departments in Amberley Village, Blue Ash, Cincinnati, and West Chester.
U.S. Attorney Stewart also commended Assistant U.S. Attorney Christy Muncy, who prosecuted the case.
Twelve Defendants Indicted for Alleged Roles in Scheme to Obtain More Than $1 Million from Counterfeit ChecksRead the Press Release
CHICAGO — Twelve Chicago and area defendants were indicted on federal bank fraud charges, and five of them were also charged with aggravated identity theft, for their alleged roles in a scheme to obtain more than $1 million from counterfeit personal and corporate checks, and actually obtaining more than $700,000, by cashing the bogus checks at various local banks and sharing the proceeds among themselves.
The defendants were charged in a 37-count federal grand jury indictment that was unsealed last Thursday after the lead defendant, KENNTH PEARSON, was arrested by U.S. Secret Service agents who conducted the investigation with assistance from the Downers Grove Police Department and other suburban police departments. Pearson, 39, of Chicago, was charged with 32 counts of bank fraud and one count of aggravated identity theft. He remains in federal custody pending a detention hearing at 10:30 a.m. tomorrow before U.S. District Judge Virginia Kendall.
A co-defendant, DAVID KOTLICKY, 23, of Downers Grove, was ordered detained without bond after he was arrested on Nov. 27, 2012, on a criminal complaint, which preceded the indictment that was returned under seal last month charging Kotlicky, Pearson and 10 other defendants. Defendant ANTIONE MAHONE, 24, of Chicago, was arrested on Friday and released on bond, and an arrest warrant is outstanding for ERIC JACKSON, 24, of Chicago.
The eight remaining defendants will be arraigned on various dates this month before Judge Kendall in Federal Court.
The indictment was announced today by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and Frank Benedetto, Special Agent-in-Charge of the Chicago office of the Secret Service.
According to the indictment, between August 2010 and December 2012, the defendants created hundreds of counterfeit checks, with face values totaling more than $1 million, presented them to various banks to be cashed, usually in amounts of approximately $2,500, and kept and shared the proceeds.
Defendant LATRESE LESHORE, 30, of Chicago, through her employment processing individuals’ health insurance applications and payments, allegedly stole bank customers’ authentic checks and account information by making copies at work, and providing them to a codefendant in exchange for cash, knowing that the victims’ accounts would be compromised.
The indictment alleges that Pearson, Kotlicky and Jackson then used the stolen checks and account information to create counterfeit checks. Pearson and Kotlicky then made and caused others to falsely make changes to the bank customers’ account information so that they could monitor the customers’ accounts, intercept bank employees’ questions about account activity, and prevent immediate detection of the alleged scheme.
Pearson, Kotlicky, Jackson, STACEY SANDERS, 38, of Chicago, and DEANGRIA WELLS, 27, of Chicago, allegedly recruited runners to take the counterfeit checks to branches of American Chartered Bank, Chase Bank, Citibank, Fifth Third Bank, First Midwest Bank, BMO Harris Bank, and U.S. Bank to be cashed. Those same defendants then allegedly collected proceeds of the cashed counterfeit checks from runners, paid the runners a fee for cashing the checks, and distributed the remaining proceeds to Pearson.
Also indicted were: ROGER ELAM, 48; his sister, ROSIE ELAM, 59; LYNADA MAHONE, 34, (Antione Mahone’s cousin); TOVISE STONE, 34; and STARLINDA STUBBS, 21, all of Chicago.
All 12 defendants face at least one or more counts of bank fraud. In addition, Pearson, Kotlicky, Jackson, Sanders, and Leshore were each charged with one count of aggravated identity theft, and Kotlicky alone was charged with one count of passing $80 in counterfeit currency. The indictment also seeks forfeiture of approximately $1 million from Pearson and Kotlicky.
Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. Aggravated identity theft carries a mandatory consecutive sentence of two years in prison and a maximum $250,000 fine, and passing counterfeit currency carries a maximum of 20 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Julie Porter.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Three Sentenced in Massive Domestic Sex Trafficking CaseRead the Press Release
HOUSTON – Three men have each been ordered to federal prison for 96 months for their convictions in relation to Operation Total Exposure, the largest domestic sex trafficking case in the Southern District of Texas, United States Attorney Kenneth Magidson announced today. During the course of the investigation, at least one minor was rescued and other minors and several adults have been returned to their families.
Andre McDaniels, 42, and William Hornbeak, 36, entered guilty pleas Sept. 13, and 24, 2012, respectively, while John Butler, 51, Ronnie Presley, 38, and Jamine Lake, 30, pleaded guilty Oct. 4, 2012. The five men, all of Houston, pleaded guilty to conspiracy to commit sex trafficking. In addition to the conspiracy charge, Butler was convicted of one count of transportation. Lake was also convicted of one count of transportation as well as one count of coercion and enticement. Presley and Hornbeak were both also convicted of two counts of coercion and enticement, while Presley was also convicted of two counts of transportation. McDaniels was convicted of one count of coercion and enticement and two counts of transportation.
Today, U.S. District Judge Lynn Hughes sentenced McDaniels, Lake and Presley to 96-month-terms of federal imprisonment. They each received 60 months on the conspiracy charge and 96 months on each of their respective convictions, all to be served concurrently for a total sentence of 96 months for each defendant. They were all also ordered to serve a 10-year-term of supervised release following completion of their sentences and must each pay a $10,000 fine.
Butler and Hornbeak will be sentenced on Jan. 22.
At the hearing today, one of the victims testified about the emotional and physical abuse she suffered, noting one instance where a gun was placed in her mouth. She further discussed how she was branded with a large tattoo of a black panther on her back to mark her as property.
Court records indicated that the defendants operated commercialized sex businesses often disguised as modeling studios, health spas, massage parlors and bikini bars in Houston. Further testimony proved they also utilized sexually oriented publications and websites to advertise their illicit business.
Evidence revealed the conspirators recruited women and minors as young as 16 to work as prostitutes and perform commercial sex acts. Members of the criminal enterprise transported women and minors to and from the Houston area and had ties to Kansas, Nevada, Arizona and Florida. The females were instructed to perform certain acts to insure that the customers to whom they were providing sex acts were not law enforcement officers.
The women were routinely beaten and threatened to instill fear in them and insure their obedience. Some of the co-conspirators also had sexual intercourse with the minor females. Any proceeds the women received as a result of their sexual encounters where taken by the members of the enterprise, rendering them dependent upon the defendants for basic necessities.
McDaniels was also convicted in a separate, but related case of nine counts of witness tampering and faces up to life in prison as a result. He will be sentenced by U.S. District Judge Lee H. Rosenthal March 22, 2013, at 9:00 a.m.
All the men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Innocence Lost Task Force of the FBI and the Houston Police Department as part of the Innocence Lost National Initiative. The initiative was founded in June 2003 to address criminal enterprises involved in the domestic sex trafficking of children and is a joint effort of the FBI, the Department of Justice’s Child Exploitation and Obscenity Section, the National Center for Missing and Exploited Children and the Texas Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorney Sherri Zack and former Special Assistant U.S. Attorney Angela Goodwin.
Springfield Tax Preparer Sentenced to 18 Months in PrisonRead the Press Release
Boston - A Springfield tax preparer was sentenced today in U.S. District Court in Springfield for filing fraudulent tax returns for her clients.
Yolanda Mercedes Perez Lopez, 51, was sentenced by U.S. District Judge Michael A. Ponsor to 18 months in prison, to be followed by three years of supervised release, and $46,300 in restitution to the Internal Revenue Service. In November 2012, Perez Lopez pleaded guilty to aiding and assisting in the preparation of false tax returns, false statements to a federally insured financial institution, endeavoring to interfere with the administration of the internal revenue laws, false representation of United States citizenship, and false representation of a Social Security Number with intent to deceive.Perez Lopez operated a tax preparation business in Springfield called Lopez Multiservice (LMS). Between February 2007 and April 2008, in order to obtain greater tax refunds for her customers than they were entitled to receive, Perez Lopez prepared numerous tax returns that she knew were fraudulent. Perez Lopez also corruptly endeavored to obstruct and impede the due administration of the Internal Revenue laws by making materially false statements to representatives of the IRS; providing false documentation for her customers to submit to the Massachusetts Department of Revenue; and counseling her customers to lie to representatives of the IRS.
In addition, in April 2009, Perez Lopez provided false and fraudulent financial information to a loan officer at National City Mortgage, a division of National City Bank, in connection with a residential mortgage application for a property located in Agawam, Mass. This information included a 2007 and 2008 tax return that stated substantially more income than the tax returns that she had previously filed with the IRS.
Further, in June 2009, Perez Lopez prepared an amended 2008 tax return that she knew was fraudulent, in that the tax return claimed a first-time homebuyer credit for the property in Agawam, despite the fact that Perez Lopez knew that the individual had already purchased a home which he continued to own and occupy as his primary residence.Lastly, Perez Lopez is a national from the Dominican Republic who resided in the United States without a valid visa. To conceal her true identity, nationality, and immigration status, Perez Lopez used the name, date of birth, and Social Security Number of another person, who was a United States citizen and resident of Puerto Rico. Perez Lopez used this fraudulent identity to operate LMS, bank accounts, credit cards, insurance, and a Massachusetts driver=s license.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Scott Antolik, Special Agent In Charge of the Office of Inspector General, Social Security Administration, Office of Investigations, Boston Field Division; and Cortez Richardson, Special Agent In Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Boston Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz=s Springfield Branch Office.
Somerset County, N.J., Man Pleads Guilty to Concealing Income from Undeclared Swiss and Indian Bank AccountsRead the Press Release
Agrees To Pay $2.3M Penalty
NEWARK, N.J. – A Somerset County, N.J., man today admitted using corporations in the Cayman Islands and the British Virgin Islands to conceal hundreds of thousands of dollars he held in secret bank accounts in Switzerland and India, U.S. Attorney Paul J. Fishman and Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division announced.
Sanjay Sethi, 52, of Watchung, N.J., pleaded guilty today before U.S. District Judge Jose L. Linares in Newark federal court to an Information charging him with conspiracy to conceal assets in undeclared bank accounts from the IRS.Sethi also failed to file a Report of Foreign Bank or Financial Accounts (FBAR) with respect to his foreign accounts. U.S. citizens who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. They must file an FBAR with the U.S.Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
“Our criminal laws do not tolerate those who use foreign accounts to conceal their assets,” U.S. Attorney Fishman said. “Cheating the government out of tax dollars hurts all honest taxpayers.”“This guilty plea serves as another warning to those who still think they can hide their assets offshore through the use of shell companies, nominees, and foreign bank accounts,” said Assistant Attorney General Keneally. “On behalf of all honest taxpayers, we will continue to seek out and prosecute those who engage in these criminal activities.”
According to documents filed in this case and statements made in court:Sethi schemed with bankers from the United States, United Kingdom, and Switzerland to conceal his assets and income derived from those assets. He used nominee and shell companies formed in tax-haven jurisdictions to conceal his ownership and control of assets from the IRS. Sethi and his co-conspirators used bank accounts in the name of shell companies and nominees, and filed false and fraudulent tax returns with the IRS in order to conceal his ownership of the foreign accounts.
From 2001 to 2009, Sethi met with his co-conspirators and opened numerous undeclared bank accounts in India and Switzerland, and used shell companies to transfer millions of dollars to undeclared offshore accounts. The total tax loss to the Government was between $80,000 and $200,000.
The conspiracy to conceal assets count to which Sethi pleaded guilty is punishable by a maximum potential sentence of five years in prison and a fine of $250,000, or twice the gain from the offense, together with the costs of prosecution. Sethi has agreed to file true and accurate tax returns and to pay to the IRS all taxes and penalties owed, in addition to the $2.4 million penalty imposed for his failure to disclose the foreign accounts. Sentencing is scheduled for April 18, 2013.
Fishman credited Special Agents with IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s guilty plea.
The government is represented by Trial Attorney Michael C. Vasiliadis of the Department of Justice Tax Division and Assistant U.S. Attorney Joseph Mack of the U.S. Attorney’s Office Healthcare and Government Fraud Unit.13-010
Defense counsel: Bryan Skarlatos and Amy Walsh Esqs., New York
Sethi Information
Seward Woman Sentenced for EmbezzlementRead the Press Release
United States Attorney Deborah R. Gilg announced that Crystal Lankford was sentenced today by United States District Judge John M. Gerrard to 45 months in federal prison followed by 5 years of supervised release. Lankford was also ordered to make restitution in the amount of $635,998.56. In September, Crystal Lankford pled guilty to Embezzlement from a Federally Insured Credit Union.
Crystal Lankford was the sole employee, Manager and Treasurer of the H.B.E. Credit Union in Seward, Nebraska. From at least April 12, 2006, to September 20, 2011, Lankford began to write checks, drawn on the operating account of HBE at Union Bank and Trust, to herself and her husband, Steve Lankford without the approval or authorization of HBE Credit Union or its officers. The funds from the account represented the moneys, funds and credits of HBE. Lankford then deposited the money fraudulently obtained from the checks into her own checking account. Crystal Lankford continued to take money out the Credit Union in this unauthorized manner until October of 2011, when she quit the Credit Union. Records revealed that she knew that the HBE account at Union Bank had practically a zero balance at the time she quit. In all, she stole $635,998.56 from the Credit Union. The accounts and monies of the HBE Credit Union were insured by the National Credit Union Administration.
The investigation of this matter was conducted by the Nebraska State Patrol and Federal Bureau of Investigation.Sentence: 8 Years in Federal Prison for Convicted Felon with GunRead the Press Release
WICHITA, KAN. – A Hutchinson man with a felony conviction record including involuntary manslaughter has been sentenced to eight years in federal prison for possessing a firearm, U.S. Attorney Barry Grissom said today.
Joshua W. Whitehurst, 35, Hutchinson, Kan., was sentenced Monday to 96 months in federal prison. Whitehurst pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. He unlawfully possessed a Highpoint 9 mm handgun when he was arrested Jan. 3, 2012, in Harvey County.
“Kansas was third in the nation last year for the number of federal firearms prosecutions,” Grissom said. “The fight against gun violence is a top priority.”
Whitehurst was prohibited by federal law from possessing a firearm because of prior felony convictions, including a 2003 conviction in Harvey County District Court on a charge of involuntary manslaughter.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Matt Treaster for their work on the case.Rosebud Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 7, 2013, by United States District Judge Roberto A. Lange. Vinney Farmer, age 25, was sentenced to 33 months in custody, 2 years of supervised release, $2,691.66 in restitution, and a $100 special assessment to the Victim Assistance Fund.
The conviction stems from an incident that took place on February 21, 2012, when Farmer picked up the victim, a child, up under her armpits, brought her up to his eye level, and threw her straight down to the floor. The victim suffered two broken femurs.
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 Marie H. Ruettgers.
Farmer was remanded to the custody of the United States Marshal.
Romanian National Sentenced to 21 Months in Prison for Role in Multimillion-Dollar Scheme to Remotely Hack into and Steal Payment Card Data from Hundreds of U.S. Merchants’ ComputersRead the Press Release
WASHINGTON – A Romanian national was sentenced today to serve 21 months in prison for his role in an international, multimillion-dollar scheme to remotely hack into and steal payment card data from hundreds of U.S. merchants’ computers, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the District of New Hampshire John P. Kacavas; and Holly Fraumeni, Resident Agent in Charge of the U.S. Secret Service (USSS), Manchester, N.H., Resident Office.
Cezar Butu, 27, of Ploiesti, Romania, was sentenced by Judge Steven J. McAuliffe in U.S. District Court in New Hampshire.
On Sept. 17, 2012, Butu pleaded guilty to one count of conspiracy to commit access device fraud.
In his guilty plea, Butu admitted that, from approximately 2009-2011, he participated in a Romanian-based conspiracy to hack into hundreds of U.S.-based computers to steal credit, debit and payment account numbers and associated data (collectively “payment card data”) that belonged to U.S. cardholders. According to court documents, Butu and his co-conspirators used the stolen payment card data to make unauthorized charges on, and/or transfers of funds from, cardholders’ accounts (or alternatively to transfer the stolen payment card data to other co-conspirators who would do the same). Butu admitted that he repeatedly asked an alleged co-conspirator to provide him with stolen payment card data and that the alleged co-conspirator provided him with instructions for how to access a website where a portion of the stolen payment card data was stored. Butu later attempted to use the stolen payment card data to make unauthorized charges on, or transfers of funds from, the accounts. According to Butu’s plea agreement, he also attempted to sell, or otherwise transfer, the stolen payment card data to other co-conspirators for them to use in a similar manner. Butu admitted to acquiring stolen payment card data belonging to approximately 140 cardholders during the course of the scheme.
In his plea agreement, Butu agreed to be sentenced to 21 months in prison.
Butu’s co-conspirator Iulian Dolan pleaded guilty to one count of conspiracy to commit computer fraud and two counts of conspiracy to commit access device fraud, and has agreed to be sentenced to seven years in prison. Dolan’s sentencing hearing is scheduled for April 4, 2013.
Alleged co-conspirator Adrian-Tiberiu Oprea is scheduled for trial on Feb. 20, 2013, in U.S. District Court in New Hampshire.
The case was investigated by the USSS, with the assistance of the New Hampshire State Police and the Romanian Directorate of Investigation of Organized Crime and Terrorism.The case is being prosecuted by Trial Attorney Mona Sedky in the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen from the District of New Hampshire.
Romanian National Sentenced to 21 Months in Prison for Role in Multimillion-Dollar Scheme to Remotely Hack into and Steal Payment Card Data from Hundreds of U.S. Merchants' ComputersRead the Press Release
WASHINGTON – A Romanian national was sentenced today to serve 21 months in prison for his role in an international, multimillion-dollar scheme to remotely hack into and steal payment card data from hundreds of U.S. merchants’ computers, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the District of New Hampshire John P. Kacavas; and Holly Fraumeni, Resident Agent in Charge of the U.S. Secret Service (USSS), Manchester, N.H., Resident Office.
Cezar Butu, 27, of Ploiesti, Romania, was sentenced by Judge Steven J. McAuliffe in U.S. District Court in New Hampshire.
On Sept. 17, 2012, Butu pleaded guilty to one count of conspiracy to commit access device fraud.
In his guilty plea, Butu admitted that, from approximately 2009-2011, he participated in a Romanian-based conspiracy to hack into hundreds of U.S.-based computers to steal credit, debit and payment account numbers and associated data (collectively “payment card data”) that belonged to U.S. cardholders. According to court documents, Butu and his co-conspirators used the stolen payment card data to make unauthorized charges on, and/or transfers of funds from, cardholders’ accounts (or alternatively to transfer the stolen payment card data to other co-conspirators who would do the same). Butu admitted that he repeatedly asked an alleged co-conspirator to provide him with stolen payment card data and that the alleged co-conspirator provided him with instructions for how to access a website where a portion of the stolen payment card data was stored. Butu later attempted to use the stolen payment card data to make unauthorized charges on, or transfers of funds from, the accounts. According to Butu’s plea agreement, he also attempted to sell, or otherwise transfer, the stolen payment card data to other co-conspirators for them to use in a similar manner. Butu admitted to acquiring stolen payment card data belonging to approximately 140 cardholders during the course of the scheme.
In his plea agreement, Butu agreed to be sentenced to 21 months in prison.
Butu’s co-conspirator Iulian Dolan pleaded guilty to one count of conspiracy to commit computer fraud and two counts of conspiracy to commit access device fraud, and has agreed to be sentenced to seven years in prison. Dolan’s sentencing hearing is scheduled for April 4, 2013.
Alleged co-conspirator Adrian-Tiberiu Oprea is scheduled for trial on Feb. 20, 2013, in U.S. District Court in New Hampshire.
The case was investigated by the USSS, with the assistance of the New Hampshire State Police and the Romanian Directorate of Investigation of Organized Crime and Terrorism.The case is being prosecuted by Trial Attorney Mona Sedky in the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen from the District of New Hampshire.
Rancho Cucamonga Man Who Operated Large-Scale Marijuana Grow and Commercial Pot Store Sentenced to 10 Years in Federal PrisonRead the Press Release
LOS ANGELES – The former president of G3 Holistics, Inc., a marijuana business operating in the Inland Empire, was sentenced this morning to 10 years in prison for his conviction last fall on federal narcotics charges for distributing hundreds of pounds of marijuana.
Aaron Sandusky, 42, of Rancho Cucamonga, was sentenced by United States District Judge Percy Anderson, who presided over Sandusky’s trial last fall.
A federal jury that heard two days of evidence convicted Sandusky of two counts – conspiracy and possession with the intent to distribute marijuana. In relation to each of the two counts, the jury determined that the crimes involved at least 1,000 marijuana plants. As a result of the convictions, federal law called for a mandatory sentence of at least 10 years.
Sandusky “is an unrepentant manipulator who used the perceived ambiguity surrounding ‘medical’ marijuana to exploit a business opportunity for himself,” prosecutors wrote in a sentencing memo filed with the court.
Sandusky “used G3 as a means to replace the vast income he lost from the collapse of his real estate business. Defendant built a veneer of legitimacy around his criminal enterprise using his customers’ good-faith search for pain relief. There is absolutely no altruistic component to defendant’s continued and sustained criminality,” according to the sentencing memo.
The jury that returned guilty verdicts on two counts could not reach unanimous verdicts on four other counts, which specifically charged Sandusky with maintaining drug-involved premises at each of G3’s marijuana stores – in Upland, Colton and Moreno Valley – and at G3’s marijuana grow operation in Ontario. At the government’s request today, Judge Anderson dismissed those counts.
The criminal case against Sandusky came after he had received written warnings in October 2011 from the United States Attorney's Office that G3’s marijuana stores were operating in violation of federal law. While Sandusky closed G3 stores in Colton and Moreno Valley, he kept the Upland store open – even after federal authorities executed two separate search warrants at that location, filed an asset forfeiture lawsuit against the Upland property, and filed a second asset forfeiture lawsuit against nearly $11,500 in cash seized by federal authorities in November 2011.
Sandusky was one of six people connected to G3 who were indicted by a federal grand jury in June 2012. The other five defendants – including G3’s co-owner, John Leslie Nuckolls II, of Rialto – pleaded guilty prior to trial and are scheduled to be sentenced by Judge Anderson in the coming weeks.
The investigation of this case was conducted by special agents from the Drug Enforcement Administration, who received assistance from the San Bernardino County Sheriff’s Department.
Release No. 13-003
Philadelphia Man Sentenced to 13 Years for Three Armed RobberiesRead the Press Release
PHILADELPHIA - Jackson Doggette, 22, of Philadelphia, was sentenced today to 13 years in prison for three armed robberies committed between August and October 2011. Doggette and co-defendant Marvin Gibson, 39, also of Philadelphia, brandished a handgun while robbing the Metro PCS store, located at 3613 Germantown Avenue, on August 24, 2011 of approximately $50; the Metro PCS store, located at 3154 N. Broad Street, on September 9, 2011, of approximately $850; and the Rite Aid store, located at 810 S. Broad Street, on October 18, 2011 of approximately $2230. Both defendants pleaded guilty to Hobbs Act Robbery and firearms charges. Doggette pleaded guilty June 25, 2012. Gibson was sentenced on October 1, 2012, to 15 years in prison.
In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered Doggette to pay restitution in the amount of $3,130, a $500 special assessment and ordered five years of supervised release.
This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, and the Philadelphia District Attorney's Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owners of Charter Fishing and River Cruising Boat Companies Sentenced to Prison, Probation, for Tax EvasionRead the Press Release
TRENTON, N.J. – A father and daughter who own and operate Bogan’s Deep Sea Fishing Center in Brielle, N.J., were sentenced today for failing to report or pay income taxes on a large portion of the money they took in while running their business, U.S. Attorney Paul J. Fishman announced.
William H. Bogan Sr., 77, was sentenced to six months in prison and six months home confinement with electronic monitoring. His daughter, Sharon Bogan, 47, was sentenced to two years of probation. The defendants previously pleaded guilty before U.S. District Judge Freda L. Wolfson to Informations charging them with income tax evasion. Judge Wolfson imposed the sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
Bogan Sr. and Sharon Bogan owned and operated a number of charter fishing and river cruising boats located in Brielle and Point Pleasant, N.J. From 2004 through 2009, the Bogans kept for their personal use a large portion of the business receipts received by their charter fishing and river cruising boats – primarily payments in the form of cash and checks made out to “Captain Bogan” – and failed to report these receipts on their respective personal income tax returns. William Bogan admitted that in 2006 alone, he failed to report more than $300,000 in income he diverted from the charter fishing and river cruising boats. William Bogan further admitted that he maintained a “second set of books,” which was recovered by special agents of the IRS during a search of his personal residence and which he used to record the amount of income he received but did not report to the IRS.
In addition to the prison term, Judge Wolfson sentenced William Bogan to two years of supervised release and ordered him to pay a $5,000 fine.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation that resulted in today’s sentences.The government is represented by Assistant U.S. Attorney Christopher J. Kelly of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
13-012
Defense counsel: William Howard Bogan Sr.: Kevin H. Marino Esq., Chatham, N.J.
Sharon Bogan: Lawrence S. Horn Esq., Newark, N.J.Owner of Detroit Adult Day Care Centers Pleads Guilty in Connection with Medicare Psychotherapy Fraud SchemeRead the Press Release
WASHINGTON – The owner of several Detroit-area businesses that housed severely mentally-disabled Medicare recipients pleaded guilty today for his role in a $13.2 million fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Marcus Jenkins, 51, of Farmington Hills, Mich., pleaded guilty before U.S. District Judge Stephen J. Murphy III in the Eastern District of Michigan to one count of conspiracy to commit health care fraud and five counts of health care fraud. Jenkins’s wife, Beth Jenkins, pleaded guilty to the same charges on Jan. 3, 2013, for her involvement in the scheme.
Marcus Jenkins admitted that he and others conspired to defraud Medicare through Quality Recreation & Rehabilitation LLC (QRR) and Procare Rehabilitation Inc., two adult day care centers he owned and operated with Beth Jenkins. According to court documents, Jenkins also owned and operated several Detroit-area adult foster care homes (AFCs) that housed severely mentally-disabled Medicare recipients. Court documents allege that Jenkins used the Medicare information of more than 100 Detroit-area AFC residents to bill Medicare through QRR and Procare for individual and group psychotherapy. Jenkins admitted that he caused claims to be submitted to Medicare for psychotherapy services that were not provided, including claims for psychotherapy purportedly given to a patient who was deceased on the dates of claimed service.
From 2004 through 2011, Marcus Jenkins, Beth Jenkins and alleged co-conspirators submitted more than 185,000 claims to Medicare totaling more than $13.2 million for group and individual psychotherapy that was not provided. According to court documents, Medicare paid $4,777,792 on these claims.
At sentencing, scheduled for April 19, 2013, Jenkins faces a maximum penalty of 60 years in prison and a $1.5 million fine.
Jenkins’s co-defendant Dr. Alphonso Berry, is scheduled for trial on Jan. 8, 2013. He is presumed innocent until proven guilty at trial.
This case is being prosecuted by William G. Kanellis and Tarek Helou of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner and Employee of All Sunshine Head Shop Sentenced to Federal ProbationRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Janet Elaine Shirley, 39, of Boise, Idaho, the former owner and operator of All Sunshine, LLC, and Antonio Ricardo Mendoza, 34, also of Boise, an employee, are the latest defendants in Operation Not for Human Consumption to be sentenced over the past several months for offering drug paraphernalia for sale.
Chief U.S. District Judge B. Lynn Winmill sentenced Shirley today to two years’ probation and ordered her to complete 120 hours of community service. U.S. District Judge Edward J. Lodge sentenced Mendoza to three years’ probation and ordered him to complete 80 hours of community service. Both Shirley and Mendoza pleaded guilty to the charge on September 5, 2012.
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Ada County Sheriff's Office, Canyon County Sheriff's Office, Nampa Police Department, Meridian Police Department, and the Canyon County Prosecutor's Office. The U.S. Marshals Service and Idaho State Police provided assistance.
North Platte Man Sentenced in Child Porn CaseRead the Press Release
United States Attorney Deborah R. Gilg announced that Jason Bielicki was sentenced today by United States District Judge John M. Gerrard to 84 months in federal prison followed by 5 years of supervised release after entering a guilty plea to one count of Receipt and Distribution of Child Pornography.
Beginning in July, 2011, and continuing into September, 2011, an investigator with the North Platte Police Department used automated software to determine that a computer utilizing a specific IP address was sharing child pornography through the Internet. A search warrant was obtained for the search of the residence of Bielicki in North Platte. During an interview, Bielicki initially said that he was downloading items to report to others but then admitted to viewing, possessing, and sharing images and videos of child pornography.
A forensic examination of the computers and related storage media revealed over 110 GB of items that were believed to be child pornography and child erotica. Over 2,100 items were sent to the National Center for Missing and Exploited Children for identification. NCMEC identified victims in 96 videos and 105 digital images to be from outside the State of Nebraska. The material found included videos and digital images of graphic sexually explicit conduct and prepubescent minors engaged in sexually explicit conduct. Some of the images were received by the defendant from at least on or about June 1, 2011, to October 31, 2011. In addition, Bielicki indicated to agents during the interview that he was a moderator for at least one bulletin board website that allowed individuals to upload images and videos of sexually explicit conduct, including child pornography.
The investigation of this matter was conducted by the North Platte Police Department and the Department of Homeland Security, Homeland Security Investigations.
North Liberty Man Sentenced to Imprisonment and Home Confinement for FraudRead the Press Release
DAVENPORT, IA – On January 4, 2013, Corey David Hagen, age 46, was sentenced to two months of imprisonment followed by six months of home confinement for committing wire fraud, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Judge James E. Gritzner also sentenced Hagen to three years of supervised release and ordered him to pay $150,000 in restitution to the victim.
While selling boats for International Marine Distributors, LLC, Hagen directed customers to wire money directly into his personal account instead of into the IMD corporate account. Hagen did not pass these funds on to the company and used them for personal expenditures. Hagen also invested $125,000 in a new business venture and falsely represented that the funds were his personal funds when in actuality the money belonged to IMD.
This case was investigated by the Coralville, Iowa, Police Department, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Non-Native Man Residing on Navajo Indian Reservation Pleads Guilty to Federal Marijuana Trafficking ChargeRead the Press Release
ALBUQUERQUE – On January 4, 2013, Richard Glosch, 34, a non-Indian who resides in Pinehill, N.M., pled guilty to a marijuana trafficking charge under a plea agreement with the U.S. Attorney’s Office.
U.S. Attorney Kenneth J. Gonzales said that Glosch was arrested on Oct. 25, 2012, after tribal officers found marijuana plants in his Pinehill residence when responding to a domestic violence call. Pinehill is located within the Navajo Indian Reservation. Subsequently, Glosch was indicted and charged with (1) intentional child abuse not resulting in death or bodily harm, and (2) possession of marijuana with intent to distribute.
During his plea hearing, Glosch plead guilty to Count 2 of the indictment and admitted that on Oct. 25, 2012, he possessed marijuana with the intention of delivering or transferring it to another person. Under the terms of Glosch’s plea agreement, Count 1 of the indictment will be dismissed after Glosch is sentenced.
Glosch continues on conditions of release and under pretrial supervision pending his sentencing hearing, which has yet to be scheduled. At sentencing, Glosch faces a maximum five years of imprisonment.
The case was investigated by the Ramah Navajo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.Niagara Falls Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Wally Reynolds, 36, of Niagara Falls, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to conspiracy to possess with intent to distribute, and to distribute, 100 kilograms of marijuana. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $2,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Reynolds supervised other individuals in a drug conspiracy who imported marijuana from Canada into the United States. The defendant then distributed the marijuana to his customers in the United States.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for May 6, 2013 at 12:30 p.m. before Judge Arcara.
Newport News Woman Sentenced for PerjuryRead the Press Release
NEWPORT NEWS, Va. – Bettina Bugg, 30, of Newport News, Va., has been sentenced to 42 months in prison for lying to a federal grand jury.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Mark S. Davis on January 4, 2013.
Bugg pled guilty on July 6, 2012. According to court documents Bugg was subpoenaed to testify before a federal grand jury in Newport News related to the investigation of a double homicide. The father of one of her children was identified as a suspect in the homicides. Bugg lied under oath in front of the grand jury and then approached a government witness and asked her to lie about the obstructive conduct.
“Bettina Bugg made a mockery of the grand jury system by lying during a murder investigation and trying to get someone else to lie as well,” said U.S. Attorney MacBride. “This tough sentence should be a clear warning that lying to a federal grand jury is a serious crime that could result in years behind bars.”
This case was investigated by FBI, Newport News Police Department, Virginia State Police. Assistant United States Attorney Eric M. Hurt prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New York Man Pleads Guilty to Traveling to Pennsylvania for the Purpose of Engaging in Illicit Sexuals ConductRead the Press Release
ERIE, Pa. - A former resident of Ashville, New York, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
David Michael Lopus, 42, pleaded guilty to three counts before United States District Judge Sean J. McLaughlin.
In connection with the guilty plea, the court was advised that Lopus traveled from New York to Pennsylvania on four separate occasions for the purpose of engaging in illicit sexual conduct with minors. As part ofhis plea agreement, Lopus agreed to a sentence of21 years of imprisonment and lifetime supervised release.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge McLaughlin scheduled sentencing for May 13, 2013, at 1:30 p.m. The law provides for a total sentence of90 years in prison, a fine of$750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, the Conewango Township Police Department, the City of Warren Police Department and the Corry Police Department conducted the investigation that led to the prosecution of Lopus.
New Jersey Sex Offender Sentenced to Life Plus 10 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Donald J. Jones, III, 48, of Pemberton, N.J., was sentenced today by U.S. District Court Judge William E. Smith to life plus 10 years in federal prison, having been convicted at trial by a federal court jury in Providence, R.I., in May 2012, on charges of interstate travel to engage in illicit sexual acts with a minor, aggravated sexual assault, enticement of a minor, and distribution of child pornography. Jones was previously convicted on three occasions in the state of New Jersey for crimes against children, including child pornography and aggravated sexual assault of a child under the age of thirteen.
Jones was arrested by federal agents and the Rhode Island State Police on April 8, 2011, after he traveled by bus from Philadelphia to Providence, expecting to meet with an eight-year-old girl and her father. Jones communicated for nearly three weeks via the Internet and by phone with a person he believed was the girl’s father, when in fact he was communicating with federal agents assigned to the Rhode Island State Police Computer Crimes Unit/Internet Crimes Against Children (ICAC) Task Force.Jones’ sentence was announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Kevin M. Niland, U.S. Postal Inspector in Charge; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
U.S. Attorney Peter F. Neronha commented, “As prosecutors, we have no higher calling than to aid parents in protecting their children. Accordingly, I am very pleased with the life sentenced handed down today, which ensures that a remorseless, recidivist pedophile has been brought to justice. Spending the rest of his life in prison ensures that he will never, ever harm another child.”
Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police said, "In addition to preventing this particular pedophile from further targeting any more children, a life sentence sends a clear message to others that may choose to follow in the same path he did.” Colonel O’Donnell added, “I commend the prosecutors, troopers, local police and federal agents for their continued vigilance in tracking, arresting and prosecuting those who prey on our children.”
Kevin M. Niland, U.S. Postal Service Inspector in Charge added, "A life sentence demonstrates the serious consequence that awaits those who sexually exploit innocent children. The Postal Inspection Service will continue to aggressively identify, target, and arrest those who dare prey on our children.""Today's life sentence demonstrates the serious consequences that await those who would sexually prey upon and exploit children," said Bruce Foucart, special agent in charge of HSI Boston. "Criminals with this kind of depravity in mind should know that we are ever vigilant. For every tactic taken to evade law enforcement, we will adapt our strategies to find them and prosecute them. Through our partnerships with state, local and other federal law enforcement agencies in Rhode Island, HSI will continue to police cyber space to investigate child predators and ensure that they feel the full weight of the law."
According to the government’s evidence presented at trial, on March 21, 2011, Jones posted a message on an adult Internet forum seeking a parent willing to allow him to have sex with their pre-pubescent child. The message was discovered by a postal inspector assigned to the RI ICAC who responded, posing as the father of an eight-year-old Rhode Island girl.
Jones and the agent exchanged numerous emails which evolved from the parent purporting to have an interest in allowing Jones to have sex with his daughter, to Jones at first describing and then emailing videos of child pornography in an effort to depict his intentions. They also had numerous telephone conversations, including conversations during which a female Providence Police officer posed as the young girl.
The government presented evidence to the jury that Jones purchased clothing for the young girl and mailed them to the person he believed to be her father. Jones also purchased and brought with him a nightgown and underwear for the young girl to wear.
On April 8, 2011, federal agents watched as Jones boarded a bus in Philadelphia and traveled to New York and then on to Rhode Island. Jones was arrested by federal and state law enforcement agents as he stepped off the bus in downtown Providence.
According to the State of New Jersey sex offender registry, Donald J. Jones, III is a level two child sex offender, convicted in 1993 on charges of aggravated sexual assault and endangering the welfare of a child. Both offenses were against a female under the age of 13. Jones was sentenced today to a consecutive 10 year federal prison sentence for committing a new sex offender crime while being required to register as a sex offender.The case was prosecuted by Assistant U.S. Attorneys Stephen G. Dambruch and Leslie J. Kane.
Providence Police, agents from ICE-Homeland Security Investigations in New Jersey and the U.S. Marshals Service assisted in the investigation.The Rhode Island State Police ICAC Task Force is a Department of Justice grant-funded program administered by the state police, and is comprised of six State Police detectives, detectives from the Providence, West Warwick, Coventry, Warwick, Johnston, and Pawtucket Police Departments, and federal agents from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the United States Postal Inspectors’ Office. The objective of the ICAC is to form strong working relationships among federal, state and local law enforcement in order to effectively and efficiently prevent, detect, investigate, and prosecute online child exploitation and child pornography crimes.
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. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Contact: 401-709-5357
[email protected]Mobridge Woman Sentenced on Drug ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that a Mobridge woman convicted of Conspiracy to Distribute and Possess With Intent to Distribute a Controlled Substance was sentenced on January 4, 2013, by U.S. District Judge Charles B. Kornmann. Amber Long Chase, age 32, was sentenced to 105 months in custody, 6 years of supervised release, and a $100 special assessment.
Long Chase was indicted by a federal grand jury in February 2012. She pled guilty to one count of a superseding information in September 2012.
The conviction stems from Long Chase knowingly and intentionally conspiring to distribute and possess a mixture or substance containing methamphetamine, a Schedule II controlled substance, in 2011.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.Long Chase was immediately turned over to the custody of the U.S. Marshal.
Mexican National Sentenced for False United States Passport ApplicationRead the Press Release
Gulfport, Miss. – Estanislao Pulido, 48, a citizen of Mexico, was sentenced to seven months in federal prison for making false statements in an application for a United States Passport, announced U.S. Attorney Gregory K. Davis and Brian Hatheway, Resident Agent in Charge, U.S. Dept. of State Diplomatic Security Service.
Pulido’s prison term will run consecutively to the 120 month term of imprisonment he is currently serving for drug charges in the Eastern District of California.
Pulido pled guilty on October 1, 2012, to making and signing a false application for a United States Passport by falsifying his name, his citizenship, and his Social Security number.
This case was investigated by the U.S. Dept. of State, Diplomatic Security Service, and was prosecuted by Assistant U.S. Attorney Ruth Morgan.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
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or e-mail it to:
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Men from California and Texas Plead Guilty to Federal Kidnapping ChargeRead the Press Release
ALBUQUERQUE – Brandon Lawrence Jones, 35, of San Diego, Calif., and Jesus Manuel Gallegos, 41, of El Paso, Texas, have entered guilty pleas to an indictment charging them with a federal kidnapping charge. Jones entered his guilty plea on Dec. 28, 2012, and Gallegos entered his guilty plea on Jan. 3, 2013. Both guilty pleas were entered without the benefit of plea agreements.
Court records reflect that, on the night of Nov. 5, 2011, Jones and Gallegos carjacked and kidnapped a man as he was leaving a basketball game in El Paso, Texas. Using an air pistol that resembled semi-automatic pistol, Jones forced the victim to get into the passenger seat of his own vehicle. Thereafter, Gallegos joined Jones and the victim in the vehicle. After directing the victim to identify banks at which the victim maintained accounts, Jones took bank cards out of the victim’s wallet; forced the victim to reveal the PINs for his bank accounts; and withdrew cash from the victim’s bank accounts. During this time, Jones and Gallegos repeatedly struck the victim in the face and body with their fists.
Jones and Gallegos drove the vehicle from El Paso to Clines Corner, N.M. During one stop, they duct-taped the victim’s hands and feet, but later released him from the restraints when they realized that it might be hard to explain a restrained passenger as they crossed through the U.S. Border Patrol checkpoint at Hatch, N.M. During a stop in Albuquerque, N.M., Jones and Gallegos continued to use the victim’s bank card to withdraw money from the victim’s bank accounts. When they arrived at Clines Corner in the early morning of Nov. 6, 2011, Jones and Gallegos parked the vehicle at a truck stop and fell asleep. After ensuring that his kidnappers were asleep, the victim escaped from the vehicle and sought help from restaurant employees at the Clines Corner truck stop who called 911 and helped the victim contact family members in El Paso. Shortly thereafter, officers of the New Mexico State Police and Torrance County Sheriff's Office arrested Jones and Gallegos, who were still asleep in the victim’s vehicle.
When they were arrested, Jones was in possession of a wallet containing the victim’s driver's license, and Gallegos was in possession of one of the victim’s bank cards. In the vehicle, the officers found an air pistol, which looked like a semi-automatic pistol with a laser site, ATM receipts, and wads of used duct tape.
Jones and Gallegos were arrested on federal charges on Nov. 7, 2011, and have been in federal custody since that time. At their sentencing hearings, which have yet to be scheduled, Jones and Gallegos each face a maximum sentence of life imprisonment.
The case was investigated by the Albuquerque Division of the FBI and the New Mexico State Police. The case is being prosecuted by Assistant U.S. Attorneys Charles L. Barth and William Pflugrath and Special Assistant U.S. Attorney Adam Rowley.
Man Indicted for Obstructing and Impeding the Irs by Filing False Irs Forms Claiming $36 Million in RefundsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that a federal Grand Jury in Syracuse has returned a seven-count Indictment charging GLENN RICHARD UNGER (62, of Ogdensburg, NY) with obstructing and impeding the Internal Revenue Service (“IRS”) by filing numerous false and fraudulent IRS forms seeking refunds. Specifically, the Indictment alleges that GLENN RICHARD UNGER obstructed and impeded the IRS between 2007 and 2011 by filing numerous false and fraudulent claims with the IRS for payment of a refund of taxes totaling approximately 36 million dollars. Upon receiving the false IRS forms, the IRS realized that they were fraudulent and did not issue any refund checks to GLENN RICHARD UNGER. The Indictment also alleges that the defendant filed false claims for refunds, evaded paying income taxes, and filed a fictitious obligation. If found guilty, the defendant faces a statutory maximum sentence of 20 years, a term of supervised release of up to 3 years, and a maximum fine of $250,000.00. The defendant was arraigned in Albany, New York, on January 2, 2013 before United States Magistrate Judge Randolph F. Treece and is currently detained.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation, New York Field Office, the Federal Bureau of Investigation, Albany Field Office, the New York State Police, and the Treasury Inspector General for Tax Administration. The case is being prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Man Indicted for Obstructing and Impeding the Irs by Filing False Irs Forms Claiming $36 Million in RefundsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that a federal Grand Jury in Syracuse has returned a seven-count Indictment charging GLENN RICHARD UNGER (62, of Ogdensburg, NY) with obstructing and impeding the Internal Revenue Service (“IRS”) by filing numerous false and fraudulent IRS forms seeking refunds. Specifically, the Indictment alleges that GLENN RICHARD UNGER obstructed and impeded the IRS between 2007 and 2011 by filing numerous false and fraudulent claims with the IRS for payment of a refund of taxes totaling approximately 36 million dollars. Upon receiving the false IRS forms, the IRS realized that they were fraudulent and did not issue any refund checks to GLENN RICHARD UNGER. The Indictment also alleges that the defendant filed false claims for refunds, evaded paying income taxes, and filed a fictitious obligation. If found guilty, the defendant faces a statutory maximum sentence of 20 years, a term of supervised release of up to 3 years, and a maximum fine of $250,000.00. The defendant was arraigned in Albany, New York, on January 2, 2013 before United States Magistrate Judge Randolph F. Treece and is currently detained.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation, New York Field Office, the Federal Bureau of Investigation, Albany Field Office, the New York State Police, and the Treasury Inspector General for Tax Administration. The case is being prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Louisiana Home Inspector Sentenced to 78 Months in Prison<br /> for Tax FraudRead the Press Release
Jack Ray Carr, of Baton Rouge, La., was sentenced today to 78 months in federal prison for one count of corruptly interfering with the due administration of the Internal Revenue laws, four counts of filing false income tax returns and one count of aiding and assisting in the preparation of a false income tax return, the Justice Department, Internal Revenue Service (IRS) and Treasury Inspector General for Tax Administration (TIGTA) announced. Additionally, Carr was sentenced to one year of supervised release.
On June 20, 2012, following a three-day jury trial in the Middle District of Louisiana, Carr was convicted on all six counts. The evidence at trial established that Carr, a home inspector, threatened violence against a federal agent, filed false documents and tax returns with the IRS, and attempted to pay his tax debt with fraudulent bonds, fictitious money orders and a fake check. On three successive personal income tax returns, Carr falsely reported that his and his wife’s income was “$0.00,” despite earning hundreds of thousands of dollars in total during the 2001, 2002 and 2003 tax years. In 2009, on two tax returns, Carr falsely reported more than $100,000 of federal income tax withholdings based on fictitious IRS Forms 1099-OID attached to the tax returns that Carr filed in his own name and in the name of his wife. In doing so, Carr claimed more than $150,000 of fraudulent tax refunds from the U.S. government.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked the special agents of IRS - Criminal Investigation and TIGTA, who investigated this case. Assistant Attorney General Keneally also thanked Tax Division Trial Attorneys Justin Gelfand and Jason Poole who prosecuted this case.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on January 7, 2013, Tiffany Lynn Lafond, 37, of Lincoln, was sentenced to ten years (120 months) in federal prison for her involvement in a conspiracy to distribute and possess with intent to distribute methamphetamine between June of 2010 and March of 2012. Information provided to law enforcement indicated that Lafond was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine during that time frame in the Lincoln area.
Following the prison term, Lafond will serve five years on supervised release.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on January 7, 2013, Ledon Marcel Hatcliff, 27, of Lincoln, was sentenced to 15 years and eight months (188 months) in federal prison for his involvement in a conspiracy to distribute and possess with intent to distribute methamphetamine between June of 2009 and February of 2011. Information provided to law enforcement indicated that Hatcliff was responsible for the distribution of at least 350 grams (approximately 12 ½ ounces) of methamphetamine during that time frame in the Lincoln area.
Following the prison term, Hatcliff will serve four years on supervised release.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Lake Wales Man Charged with Child Pornography OffensesRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces the return by a grand jury of an indictment charging Paul Henry Carlin (58, Tampa) with transportation and receipt of child pornography. If convicted, Carlin faces a mandatory minimum of 5 years and up to 20 years in federal prison on each count.
According to the indictment, between May 29, 2012, and December 5, 2012, Carlin transported and received files containing child pornography, using the Internet.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Laguna Pueblo Man Pleads Guilty to Federal Domestic Violence by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Last week, Timothy Luke Perea, 41, a member and resident of Laguna Pueblo, pled guilty to an indictment charging him with domestic assault by a habitual offender. Perea entered his guilty plea on Jan. 4, 2013, under a plea agreement with the U.S. Attorney’s Office.
The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
During his plea hearing, Perea admitted assaulting his wife, also a member of Laguna Pueblo, on March 6, 2011. In entering his guilty plea, Perea acknowledged that he had at least two prior convictions for assault against a spouse, household member, intimate partner, or a person with whom he was cohabiting.
Perea was prosecuted federally for the March 6, 2011 assault because he had two prior domestic violence convictions. Court records reflect that Perea was convicted of assault resulting in serious bodily injury on Aug. 29, 1997, in federal court in New Mexico. Perea also was convicted of aggravated battery against a household member on Oct. 20, 1997, in the Second Judicial District Court for the State of New Mexico.
At sentencing, Perea faces a maximum penalty of five years of imprisonment and a $250,000 fine. Perea has been in custody since his arrest on Oct. 17, 2012, and remains detained pending his sentencing hearing, which has yet to be scheduled.The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Southern Pueblos Agency, and the Laguna Pueblo Police Department, and is being prosecuted by Special Assistant U.S. Attorney David M. Adams.
Justice Department to Monitor Municipal Special Election in South CarolinaRead the Press Release
The Justice Department announced today that it will monitor the municipal special election on Jan. 8, 2013, in Branchville, S.C., to ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Justice Department personnel will monitor polling place activities in Branchville. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from Office of Personnel Management, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Justice Department Reaches Settlement with South Carolina Food Service Provider to Resolve Immigration-Related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it reached an agreement with Centerplate Inc., resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). Centerplate, based in Spartanburg, S.C., is one of the largest hospitality companies in the world. With over 10,000 employees nationwide, Centerplate provides food service to over 250 stadiums, convention centers and entertainment venues across the country.
The Justice Department’s investigation was initiated based on a referral from the U.S. Citizenship and Immigration Services (USCIS) under a memorandum of agreement between the Civil Rights Division and USCIS. The department’s investigation concluded that, for at least the past three years, Centerplate engaged in a pattern or practice of treating work-eligible non-U.S. citizens differently from U.S. citizens during the INA’s employment eligibility verification processes, including E-Verify, by requiring specific documents issued by the Department of Homeland Security from non-U.S. citizens, while not making similar requests of U.S. citizens.
Under the terms of the agreement, Centerplate has agreed to pay $250,000 in civil penalties, the third highest amount paid through settlement since enactment of the INA’s anti-discrimination provision in 1986. Centerplate has also agreed to fully compensate any victims who lost wages as a result of Centerplate’s practices, undergo Justice Department training on the anti-discrimination provision of the INA, and be subject to monitoring of its employment eligibility verification practices for a period of three years. The case settled prior to the Justice Department filing a complaint in this matter.
“Work-eligible applicants – citizens and non-citizens alike – deserve fair and equal treatment in the eligibility verification process,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Therefore, we will continue to vigorously enforce the anti-discrimination provision of the INA.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Files Lawsuit in Idaho AgainstJerome County Sheriff’s Office to Enforce the Employment Rights of Army National Guard MemberRead the Press Release
The United States Justice Department and U.S. Attorney Wendy J. Olson announced today the filing of a complaint alleging that the Jerome County Sheriff’s Office willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to reemploy and terminating Idaho Army National Guard Member Mervin Jones while he was recuperating from a knee injury that he sustained while performing military service. The suit was filed in federal district court in Idaho.
Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed promptly by their civilian employers in the positions they would have held if their employment had not been interrupted by military service or in positions of comparable seniority, pay, and status. In addition, USERRA requires employers to accommodate service members who are injured in the line of duty, and allows service members who are recuperating from such an injury up to two years to obtain reemployment without facing termination by their civilian employers.
The complaint states that Jones began working for the Jerome County Sheriff’s Office as a correctional deputy in 2002. By 2007, he had been promoted through the ranks to Corporal. During his employment with the Sheriff’s Office, Jones was also a member of the Idaho Army National Guard. He suffered a knee injury while deployed to Iraq in 2004, which Jones later aggravated in 2008 during a weekend training event with his Guard unit. The complaint alleges that in 2009, while Jones was still recuperating from multiple knee surgeries, the Sheriff’s Office forced him to complete Family Medical Leave Act (FMLA) paperwork even though his leave was protected under USERRA, denied him light duty work to accommodate his physical limitations caused by the knee injury, attempted to subject him to an unlawful “fitness for duty” evaluation and physical fitness test before allowing him to return to work, and terminating his employment during the period of time permitted by USERRA to recover from an injury incurred in the line of duty.
“When Congress enacted USERRA, it was to protect our men and women in uniform from experiencing exactly this kind of injustice,” said Thomas E. Perez, Assistant Attorney General for the Department of Justice’s Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our service members.”
“Members of the Army National Guard sacrifice time away from their jobs to serve their country,” said Olson. “USERRA ensures that they are not discriminated against after they have returned and their employment rights are protected. We are committed to vigorously enforcing USERRA’s protections.”
The case stems from a referral by the United States Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service. This case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the District of Idaho.
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Related Materials:
Jones Complaint
Justice Department Files Lawsuit in Idaho Against Jerome County Sheriff’s Office to Enforce the Employment Rights of Army National Guard MemberRead the Press Release
WASHINGTON — The United States Justice Department and U.S. Attorney Wendy J. Olson announced today the filing of a complaint alleging that Jerome County Sheriff’s Office willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to reemploy and terminating Idaho Army National Guard Member Mervin Jones while he was recuperating from a knee injury that he sustained while performing military service. The suit was filed in federal district court in Idaho.
Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed promptly by their civilian employers in the positions they would have held if their employment had not been interrupted by military service or in positions of comparable seniority, pay, and status. In addition, USERRA requires employers to accommodate service members who are injured in the line of duty, and allows service members who are recuperating from such an injury up to two years to obtain reemployment without facing termination by their civilian employers.
The complaint states that Jones began working for Jerome County Sheriff’s Office as a correctional deputy in 2002. By 2007, he had been promoted through the ranks to Corporal. During his employment with the Sheriff’s Office, Jones was also a member of the Idaho Army National Guard. He suffered a knee injury while deployed to Iraq in 2004, which Jones later aggravated in 2008 during a weekend training event with his Guard unit. The complaint alleges that in 2009, while Jones was still recuperating from multiple knee surgeries, the Sheriff’s Office forced him to complete Family Medical Leave Act (FMLA) paperwork even though his leave was protected under USERRA, denied him light duty work to accommodate his physical limitations caused by the knee injury, attempted to subject him to an unlawful “fitness for duty” evaluation and physical fitness test before allowing him to return to work, and terminating his employment during the period of time permitted by USERRA to recover from an injury incurred in the line of duty.
“When Congress enacted USERRA, it was to protect our men and women in uniform from experiencing exactly this kind of injustice,” said Thomas E. Perez, Assistant Attorney General for the Department of Justice’s Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our service members.”
“Members of the Army National Guard sacrifice time away from their jobs to serve their country,” said Olson. “USERRA ensures that they are not discriminated against after they have returned and their employment rights are protected. We are committed to vigorously enforcing USERRA’s protections.”
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Judy A. Robbins to Serve as U.S. Trustee for District of Columbia, Maryland, South Carolina, Virginia, and West Virginia for Interim PeriodRead the Press Release
WASHINGTON – Judy A. Robbins, the U.S. Trustee for the Southern and Western Districts of Texas (Region 7), has been designated by Attorney General Eric Holder also to serve as the U.S. Trustee for the District of Columbia, Maryland, South Carolina, Virginia, and West Virginia (Region 4) for an interim period beginning on February 1, 2013, the Executive Office for U.S. Trustees announced today. She replaces W. Clarkson McDow, Jr., who is retiring after serving as the U.S. Trustee for Region 4 since June 1994.
Ms. Robbins has served as U.S. Trustee for Region 7 since September 2010. Prior to that appointment, she served as an Assistant U.S. Attorney, Civil Division, in the Southern District of Texas, focusing on bankruptcy, civil fraud, commercial litigation and employment discrimination. She has also served as a bankruptcy attorney for the Federal Deposit Insurance Corporation in Houston, a Trial Attorney for the U.S. Trusteeç´ office in Houston, an estate administrator for the U.S. Bankruptcy Court for the Southern District of Texas and a pro se law clerk for the U.S. District Court for the Southern District of Texas. Ms. Robbins received her law degree from the University of Houston College of Law and her undergraduate degree cum laude from the University of Houston.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 4 is headquartered in Columbia, S.C., with additional offices in Alexandria, Norfolk, Richmond, and Roanoke, Va.; Baltimore and Greenbelt, Md.; and Charleston, W.Va.
Contact:Jane Limprecht, Public Information Officer
Monday, July 15, 2013 3:10 PM
Executive Office for U.S. Trustees
(202) 305-7411Johnstown Man Pleads Guilty to Unlawfully Possessing PistolRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of unlawful possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
John A. Hinton, 32, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on April 3, 2012, Hinton, who had been convicted in 2007 in Cambria County, Pa., of delivery of cocaine, unlawfully possessed an H & R pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Delivery of cocaine is such a crime.
Judge Gibson scheduled sentencing for June 4, 2013, at 9:30 a.m. The law provides for a total sentence of 10 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 of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Johnstown Police Department conducted the investigation that led to the prosecution of Hinton.
According to Mr. Hickton, Hinton is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Johnstown Man Pleads Guilty to Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
James Robert Reynolds, 54, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on March 30, 2011, Reynolds knowingly possessed videos and images as computer graphic files containing images of child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer.
Judge Gibson scheduled sentencing for June 4, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Conemaugh Township Police Department conducted the investigation that led to the prosecution of Reynolds.
According to Mr. Hickton, James Robert Reynolds is being prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse, led by the United States Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims.
Indictment: California Man Drove to KansasWith Four Kilograms of CocaineRead the Press Release
WICHITA, KAN. - A federal grand jury today returned an indictment against a California man who was arrested in Thomas County, Kan., charging him with possession with intent to distribute four kilograms of cocaine, U.S. Attorney Barry Grissom said.
Patrick Yarborough, 35, Lawndale, Calif., is charged with one count of possession with intent to distribute cocaine and one count of interstate travel in furtherance of drug trafficking. The indictment alleges he had traveled from California to Kansas for the purpose of drug trafficking when he was arrested Oct. 11, 2013.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $2 million on the possession with intent to distribute charge, and a maximum penalty of five years and a fine up to $250,000 on the interstate travel charge. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
OTHER INDICTMENTS
Costel Neicu, 33, a citizen of Romania, is charged in a superseding indictment with two counts of possessing false passports, two counts of possessing false immigration documents, two counts of producing false immigration documents and one count of aggravated identity theft. The crimes are alleged to have occurred March 1, 2012, in Ellis County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each of the first four counts of possessing false documents, a maximum penalty of 15 years and a fine up to $250,000 on each count of producing false documents, and a mandatory two years to run consecutive to other sentences and a fine up to $250,000 on the aggravated identity theft count. The Kansas Highway Patrol and Homeland Security Investigations investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Marcos Salvatierra-Martinez, 25, a citizen of Mexico, is charged with one count of unlawful possession of a firearm by an alien illegally in the United States and one count of unlawful possession of ammunition by an alien illegally in the United States. The crimes are alleged to have occurred Dec. 12, 2013, in Wichita, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Wichita Police Department and Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jaime Ollarzabal-Lopez, 28, a citizen of Mexico, is charged with count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported, and one count of unlawful possession of a firearm by an alien illegally in the United States. He was found Dec. 4, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison without parole and a fine up to $250,000 on the re-entry charge, and a maximum penalty of 10 years and a fine up to $250,000 on the firearm charge. The Wichita Police Department and Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Darrin Kebert, Jr., 28, Cherryvale, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Aug. 23, 2013, Montgomery County, Kan.If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $2 million on methamphetamine charge, not less than five years consecutive to the sentence on the drug charge and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm charge. The Kansas Bureau of Investigation investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hunterdon County, N.J., Man Indicted for Social Security Disability FraudRead the Press Release
NEWARK, N.J. – A Hunterdon County, N.J., man who previously owned his own private detective firm was indicted by a federal grand jury and charged with conspiring to commit Social Security disability fraud, U.S. Attorney Paul J. Fishman announced.
David M. Disney, 45, of Alexandria Township and Saddle River, N.J, and formerly of DM Disney & Associates, is charged in a three-count Indictment with conspiring with a former girlfriend to fraudulently obtain $144,000 in disability insurance benefits from the Social Security Administration between 2003 and 2008. Disney appeared in Newark federal court today before U.S. Magistrate Judge Patty Shwartz and U.S. District Court Judge Faith S. Hochberg for his initial appearance and arraignment.
According to the Indictment, unsealed today:
As a result of a head injury he suffered in January 2003, Disney applied for disability insurance payments in the fall of 2003, claiming an inability to work, take care of himself or his finances, or even concentrate for more than five minutes. Based on that application, Disney and his two dependent children were deemed eligible for monthly disability benefit payments to replace his lost income. By signing the application, Disney agreed to notify the Social Security Administration if there was any improvement in his medical condition or if he regained the ability to work and earn income. A former girlfriend of Disney’s, who worked for his private detective firm, also signed forms attesting to his inability to work or earn any income.
However, during the time that Disney was receiving disability benefits, he continued to perform surveillance for clients of DM Disney & Associates, to testify before the New York State Workers' Compensation Board on behalf of clients, and even applied to renew his New Jersey Private Detective License and purchase a handgun. Between 2003 and 2008, Disney collected more than $144,000 in monthly disability payments to which he was not entitled by continuing to make false statements to the Social Security Administration and underreporting the income that he was earning.
Disney is charged in Count One of the Indictment with Conspiracy, in Count Two with Social Security Disability Fraud and in Count Three with Theft of Government Property. Counts One and Two are each punishable by a maximum potential penalty of five years in prison and a $250,000 fine. On Count Three, Disney faces a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Social Security Administration - Office of the Inspector General, under the direction of Special Agent-in-Charge Edward J. Ryan of the New York Field Division, with the investigation leading to the Indictment.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-011
Defense counsel: James Patton Esq., Livingston, N.J.Disney Indictment
Hudson County, N.J., Teacher Charged with Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A permanent substitute teacher at a private school in Jersey City was arrested today after law enforcement officers discovered alleged child pornography on a computer at his residence, U.S. Attorney Paul J. Fishman announced.
Guy West, 44, of Jersey City, N.J., is charged by Complaint with one count of distributing images of child sex abuse over the Internet. West will make his initial court appearance tomorrow before U.S. Magistrate Judge Patty Shwartz in Newark federal court.
According to the criminal Complaint;
On Dec. 18, 2012, West distributed videos and images depicting child sexual abuse on the Internet via peer-to-peer file sharing software, to which others had access in shared directories. Special agents of the FBI executed a search warrant today at West’s residence, seizing digital evidence that contained numerous images depicting child sexual abuse, including material that involved prepubescent minors and material that portrays sadistic or masochistic conduct. The digital evidence seized included three files previously downloaded from West by law enforcement agents working in an undercover capacity on the peer-to-peer network.
On the child pornography distribution count, West faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years, and a $250,000 fine.U.S. Attorney Fishman credited special agents of the FBI Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark, the Jersey City Police Department and the Hudson County Prosecutor’s Office with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-014
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, NewarkWest, Guy Complaint
Guy G. Gebhardt Is Appointed Acting U.S. Trustee for Florida, Georgia, Puerto Rico, Virgin IslandsRead the Press Release
WASHINGTON – Guy G. Gebhardt has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for Florida, Georgia, Puerto Rico, and the U.S. Virgin Islands (Region 21), effective on January 12, 2013, the Executive Office for U.S. Trustees announced today. He replaces Donald F. Walton, who is retiring after 25 years with the U.S. Trustee Program (USTP), including the past four and a half as U.S. Trustee.
Mr. Gebhardt has served since 1991 as the Assistant U.S. Trustee in the Atlanta office. He has participated in numerous working groups to implement USTP priorities that include coordinating national enforcement against identity theft and unlawful “foreclosure rescue” operations, tracking and reporting civil enforcement activities, and streamlining field office operations. He was a recipient of the Director’s Award for Exemplary Service in November 2002 for his longstanding contributions to the USTP. Before joining the USTP, Mr. Gebhardt practiced law in Atlanta for 17 years. He received his undergraduate degree cum laude from Illinois Wesleyan University in Bloomington, Ill., and, after serving in the U.S. Army, received his law degree from Vanderbilt University School of Law in Nashville, Tenn.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 21 is headquartered in Atlanta with additional offices in Macon and Savannah, Ga.; Miami, Orlando, Tallahassee, and Tampa, Fla.; and San Juan, Puerto Rico.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Georgia Woman Indicted for Stealing Identities to Obtain Tax RefundsRead the Press Release
A federal grand jury in Montgomery, Ala., returned a superseding indictment charging Deatrice Smith Williams and Quentin Collick for their roles in a stolen identity refund fraud conspiracy, Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, U.S. Attorney for the Middle District of Alabama George L. Beck Jr. and the Internal Revenue Service (IRS) announced today. The 13 count indictment charges Williams and Collick with conspiracy to file false claims, theft of public funds, wire fraud and aggravated identity theft.
On Aug. 9, 2012, Quentin Collick was indicted for his role in the conspiracy. In November 2012, pursuant to a criminal complaint, Williams was arrested for her role in the conspiracy. The superseding indictment was unsealed today.
According to court documents, Williams worked for a debt collection company in Georgia. As part of her employment, Williams had access to names and social security numbers. She provided several names and Social Security numbers to her son-in-law, Quentin Collick. Collick, and his co-conspirators used those names to file false tax returns from the Middle District of Alabama. Collick and his co-conspirators, in turn, cashed several fraudulent federal refund checks.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Collick and Williams each face maximum potential sentences of 10 years in prison for the conspiracy count, up to 20 years in prison for each wire fraud count, and a mandatory 2-year sentence for the aggravated identity theft counts. Collick also faces up to 10 years in prison for each theft of public funds count. They are also subject to fines and mandatory restitution if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Tax Division Trial attorneys Jason H. Poole and Michael Boteler and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Georgia Woman Indicted for Stealing Identities to Obtain Tax RefundsRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, Ala., returned a superseding indictment charging Deatrice Smith Williams and Quentin Collick for their roles in a stolen identity refund fraud conspiracy, Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, United States Attorney George L. Beck, Jr., and the Internal Revenue Service (IRS) announced today. The thirteen count indictment charges Williams and Collick with conspiracy to file false claims, theft of public funds, wire fraud, and aggravated identity theft.
On August 9, 2012, Quentin Collick was indicted for his role in the conspiracy. In November 2012, pursuant to a criminal complaint, Williams was arrested for her role in the conspiracy. The superseding indictment was unsealed today.
According to court documents, Williams worked for a debt collection company in Georgia. As part of her employment, Williams had access to names and social security numbers. She provided several names and social security numbers to her son-in-law, Quentin Collick. Collick and his co-conspirators used those names to file false tax returns from the Middle District of Alabama. Collick and his co-conspirators, in turn, cashed several fraudulent federal refund checks.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Collick and Williams each face maximum potential sentences of 10 years imprisonment for the conspiracy count, up to 20 years imprisonment for each wire fraud count, and a mandatory 2-year sentence for the aggravated identity theft counts. Collick also faces up to 10 years imprisonment for each theft of public funds count. They are also subject to fines and mandatory restitution if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Tax Division Trial attorneys Jason H. Poole and Michael Boteler and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Garfield Man Found Guilty of Constructing A Road Through A Protected Wetland BasinRead the Press Release
MINNEAPOLIS – Last week in federal court, a 48-year-old man from the central
Minnesota community of Garfield was found guilty of constructing a road through a federallyprotected wetland basin located on his property. Based on evidence presented during a two-day bench trial last August, United States Magistrate Judge Leo I. Brisbois issued a written order on
January 4, 2013, convicting James Bosek of one misdemeanor count of filling a wetland that was subject to a federal easement under the National Wildlife Refuge System Act.
Judge Brisbois found that Bosek engaged in prohibited activity when he built a road across the eastern edge of his property, located in rural Douglas County. The property is subject to a perpetual easement that the U.S. Department of Interior purchased in 1963. Bosek purchased the property subject to the easement in 2001.
Judge Brisbois found that Bosek knew of the easement before building the road, and that
Bosek did not obtain permission or authorization from the U.S. Fish and Wildlife Service
(“USFWS”) before building the road. The USFWS discovered the road while making an unrelated visit to Bosek’s property in April of 2008. Judge Brisbois credited the trial testimony of a USFWS biologist, who surveyed the property and concluded that Bosek’s filling of the wetland damaged the wetland as a protected native habitat for waterfowl. Bosek was charged on
August 19, 2011, after refusing the USFWS’s demand that he remove the road and restore the wetland.
Under the statute of conviction, Bosek faces a potential maximum penalty of 180 days in prison, a $5,000 fine, and costs of restoring the wetland. Judge Brisbois will determine his sentence at a future hearing, scheduled for March 27, 2013, at the federal courthouse in Fergus
Falls. This case is the result of an investigation by the USFWS. It is being prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu, Thomas Calhoun-Lopez, and William J.
Otteson.Fulton Man Pleads Guilty to Bank Robbery, Admits Robbing Five BanksRead the Press Release
JEFFERSON CITY, Mo. - David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man pleaded guilty in federal court today to bank robbery, admitting that he had robbed banks in Sedalia, Chillicothe, Cuba, Moberly and Rolla, Mo.
John David Farnell, 61, of Fulton, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a June 9, 2010, federal indictment. Farnell is currently serving a federal prison sentence in a separate bank robbery case that was prosecuted in the Eastern District of Missouri.
Farnell pleaded guilty to stealing $11,540 from Excel Bank in Sedalia, Mo., on Aug. 10, 2009. Farnell entered the bank carrying a green gym bag in his left hand and immediately approached a teller. He set the bag on the counter, retrieved a black handgun that had a long barrel and wooden grip, pointed it at the teller and instructed her not to make a sound. He told the teller to give him twenties, fifties and hundreds. The teller pulled the bills out of her drawer and put them on the counter. Farnell instructed the teller not to make a sound or move again, and then walked down to another window.
Farnell approached a second teller counter. He again placed the bag on the counter, displayed the gun, and stated, “I want all your tens, twenties, fifties, hundreds.” The second teller gave him all the loose bills, and Farnell asked, “Is that all?” The second teller responded, “No, I’m sorry,” and gave him the bundled tens and the twenties. Farnell exited the bank through the front doors, got into a white minivan and left.
On April 29, 2010, the First Community National Bank in Cuba was robbed. At approximately 11 a.m., a Missouri State Highway Patrol trooper stopped Farnell, who was traveling in a van that matched the description of the suspect vehicle involved in the bank robbery. During a search of the van, a Ruger .357 magnum revolver was recovered, as well as U.S. currency.
Farnell admitted to law enforcement officers that he committed the robbery in Cuba and the robbery in Sedalia, as well as robbing BTC Bank in Chillicothe on Feb. 24, 2010. Farnell stated that he committed the robberies because of financial reasons, and admitted that he used the .357 magnum revolver recovered from his van during all of the robberies.
In a separate case, Farnell was sentenced in the Eastern District of Missouri on March 9, 2012, to 13 years and six months in federal prison without parole. Farnell pleaded guilty in that case to robbing First Community National Bank in Cuba, Commerce Bank in Moberly (on March 13, 2009) and Town & Country Bank in Rolla (on Dec. 18, 2009). He also pleaded guilty in that case to one count of possessing a firearm in connection with a crime of violence.
Under federal statutes, Farnell is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $250,000. 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 Jim Lynn. It was investigated by the FBI, the Missouri State Highway Patrol, and the police departments of Sedalia, Chillicothe, El Dorado Springs, Rolla and Cuba, Mo.
Four (4) Members of an International Drug Trafficking Organization Found Guilty of Conspiracy to Import 146 Kilograms of Cocaine and 8 Kilograms of Heroin into Puerto RicoRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico announced that yesterday, a federal jury returned a guilty verdict against Manuel Liriano-De la Cruz, José Pena-Santo, Jonathan Martinez, and José Ramón Vicente-Arias for Conspiring to Import Drugs into the United States and Conspiring to Possess Drugs in a Vessel Subject to the Jurisdiction of the United States. Liriano-De la Cruz and Pena-Santo were also found guilty of being aliens attempting to illegally re-enter into the United States after having been removed from the United States. All four (4), members of an international drug trafficking organization based in the Dominican Republic, attempted to introduce a load of 146 kilograms of cocaine and 8 kilograms of heroin, with a street value of 3.2 million dollars into Puerto Rico. Two (2) other defendants, Alejandro Difot-Santos and Carlos De la Cruz-Sànchez pled guilty, the day before the trial was scheduled to begin.
The evidence at trial showed that the drug traffickers departed from the Dominican Republic in a yawl carrying the load of drugs contained in six bags wrapped with duct tape. The yawl was detected in the late evening and early morning hours by law enforcement heading in a track line towards the coast of Puerto Rico. Air and marine units from the Caribbean Air and Marine Branch (CAMB), U.S. Coast Guard and FURA from the Puerto Rico Police Department were launched to intercept the yawl. A fast boat from the U.S. Coast Guard arrived and detained the yawl, along with the six subjects onboard, approximately four (4) nautical miles off the coast of Dorado in U.S. customs waters. A fixed wing aircraft from CAMB observed the individuals onboard the yawl throwing the bales containing the load of drugs into the water. A CAMB helicopter illuminated the debris field which allowed the FURA marine unit to recover the heavy packages before they sank.
This case shows the commitment of federal and state authorities to work together against the drug trafficking organizations that attempt to use our coasts for the importation of drugs into the United States.
The case was prosecuted by Special Assistant United States Attorney US Coast Guard Lieutenant Kelley Tiffany and Assistant United States Attorney Carlos R. Cardona from the Organized Crime Drug Enforcement Task Force (OCDETF) initiative of the United States Attorney’s Office for the District of Puerto Rico.
Founder of Violent “Dead Man Incorporated” Gang Sentenced to Life on Federal Racketeering, Murder and Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42, today to life in prison for conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI). Roark has been the “Supreme Commander” of DMI since it was originally created as a prison gang in Maryland in 2000. At the government’s request, Judge Bennett has recommended that Roark serve his sentence at USP Florence, Colorado, the most secure prison in the federal system.
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; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.
“Perry Roark was scheduled to be released from state prison, but instead he will spend the rest of his life in federal prison for leading the violent Dead Man Incorporated gang and arranging murders,” said U.S. Attorney Rod J. Rosenstein. “Federal racketeering prosecutions serve a critical role in the coordinated local, state and federal law enforcement strategy to reduce violent crime in Maryland.”
According to Roark’s plea agreement, DMI was created originally in 2000 as a prison gang in Maryland, and at its inception was closely allied to the Black Guerilla Family (BGF), another prison gang. By 2006, DMI expanded its membership by recruiting members outside prison, including women.
DMI members operated in and out of prisons throughout Maryland, as well as Pennsylvania, Louisiana and Texas. DMI is active in numerous prison facilities in Maryland. Units operating outside the prisons are identified by the region they cover, such as Brooklyn, South Baltimore, Southwest Baltimore, Southeast Baltimore, Dundalk, Westminster, Glen Burnie, etc.
Roark admitted that he conspired to conduct the affairs of DMI through a pattern of criminal activity from 2000 to the present, including: murder and threats to commit murder, armed robbery, drug trafficking and extortion. DMI members and associates smuggled drugs, tobacco, cell phones and other contraband into prisons, by concealing them on the persons of visitors to the prisons.
Gang members used contraband cell phones in prisons to coordinate the smuggling of contraband into prisons, disseminate information about arrests and releases of members and associates, to warn of investigations, to publicize the identities of persons believed to be cooperating with law enforcement, and to order assaults and murders of such persons, as well as enemies of DMI.
Specifically, Roark admitted that from November 2008 through June 2, 2009, he ordered and planned the June 2, 2009, murder of Tony Geiger, which was carried out by his co-defendants. Roark admitted that he ordered three other murders, which were never carried out, as well as numerous assaults. Roark was frequently involved in drug trafficking within the prisons where he was housed from 2000 to the present.
Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.
United States Attorney Rod J. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Former TCU Football Player and Fellowship of Christian Athletes Staffer Admits Defrauding Investors in Nearly $16 Million Forex Market ScamRead the Press Release
DALLAS – Eldon A. Gresham, Jr., 67, pleaded guilty late Thursday afternoon, before U.S. District Judge Jorge A. Solis, to one count of mail fraud stemming from a foreign currency exchange (ForEx) scam that he ran from January 2004 through June 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Gresham, formerly of Olney, Texas, who is representing himself in the case, was set to go on trial next Monday, January 14, 2013, on a superseding indictment charging four counts of mail fraud.
Gresham faces a maximum statutory sentence of 20 years in prison, a $250,000 fine and restitution. However, in accordance with the terms of the plea agreement, if the Court accepts the plea, the parties agree that the maximum prison term shall be at the bottom end of the U.S. Sentencing Guideline range that is ultimately determined by the Court. In addition, Gresham shall forfeit a money judgment to the U.S. in the amount of $15.8 million, constituting the proceeds obtained from his offense. A sentencing date has not been set.
Gresham is presently in federal custody, having been arrested in Georgia on December 13, 2012, for violating the conditions of pre-trial release. It is expected that a bond hearing will be held in the near future.
According to the superseding indictment, Gresham recruited at least 90 individuals to invest in his ForEx trading business, The Gresham Company, which he operated out of Peachtree City, Georgia, where he resided. Gresham falsely represented to potential investors that he consistently generated large investment returns by trading investor funds in off-exchange foreign currency contracts in the ForEx market. Over the life of the scheme, Gresham fraudulently obtained approximately $15.8 million in investor funds.
As also noted in the superseding indictment, Gresham specifically targeted members of the Christian faith as potential investors, knowing that many of these Christian investors were elderly and particularly vulnerable to his scheme. He induced Christians to give him funds for investment by telling them that his success in currency trading was a blessing and gift from God, which Gresham considered to be “his ministry.” He also persuaded Christian investors to give him funds by telling them that the investors could later use investment profits to further God’s works.
According to the factual resume filed in the case, Gresham falsely represented inflated profits to investors and represented to several investors that he had never suffered any losses in his currency trading. He also falsely represented to investors the financial condition of their investor accounts by sending monthly emails that included falsely inflated investment profits. Gresham also falsely represented to investors that funds he distributed to existing investors were actual returns on investment for that investor, when he knew some of those funds were actually funds he received from new investors.
The U.S. Postal Inspection Service is in charge of the investigation. Assistant U.S. Attorneys David Jarvis and J. Nicholas Bunch are prosecuting.