FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, August 29, 2013
California Businessman Pleads Guilty to Conspiracy to Conceal Israeli Bank Accounts
Encino, Calif., Resident Is the Latest in a Series of Defendants Charged with Conspiring with Bankers to Hide Secret Israeli Bank Accounts
Aaron Cohen of Encino, Calif., pleaded guilty today in the U.S. District Court for the Central District of California to conspiracy to defraud the United States, the Justice Department and Internal Revenue Service-Criminal Investigation (IRS-CI) announced.
According to court documents, Cohen, a U.S. citizen, maintained undeclared bank accounts at two international banks headquartered in Tel Aviv, Israel, identified in court documents as Bank A and Bank B. One of Cohen’s undeclared accounts was maintained at a branch of Bank A located in the Cayman Islands. The accounts were held in the names of nominees in order to keep them secret from the U.S. Government. In or about 2000, Cohen began using the funds in his undeclared account in the Cayman Islands as collateral for back-to-back loans obtained from another branch of Bank A located in Los Angeles. Cohen’s ownership of the funds in the Cayman Islands accounts was not identified in the loan records maintained at the Los Angeles branch, thus concealing the fact that he was borrowing his own money, paying tax-deductible interest on the loans and not reporting the interest income he was earning in the Cayman Islands on his U.S. tax returns.
According to the plea agreement, in or about 2009, Cohen transferred approximately $2 million from his Cayman Islands account at Bank A to a new offshore account at Bank B in Israel. Cohen then used the funds in the new account as collateral to obtain a back-to-back loan from the Los Angeles branch of Bank B. Cohen failed to report any income from the accounts on his individual income tax returns that were filed with the IRS. For tax years 2006 through 2009, Cohen failed to report interest income of approximately $238,000. The highest balance in the undeclared accounts was approximately $3,450,000.
“Today’s guilty plea is but the latest example that attempting to hide income and assets from the United States in offshore accounts is a bad gamble,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “The Internal Revenue Service will find the hiding places and the Department of Justice will criminally prosecute these tax cheats, who face potential jail time, still owe the taxes due and may lose those hidden assets and more to severe civil penalties."
“Mr. Cohen is yet another taxpayer caught using anonymous offshore accounts to avoid paying his fair share of taxes,” said IRS Criminal Investigation Chief Richard Weber. “Through IRS-CI’s efforts, we are gaining access to more and more information on institutions and individuals involved in offshore tax fraud, and you can expect us to use all of our enforcement tools to fight offshore tax evasion.”
Cohen is the latest in a series of defendants charged in the U.S. District Court for the Central District of California with failing to report income from undeclared accounts in Israel.
On March 29, 2013, Zvi Sperling of Beverly Hills, Calif., pleaded guilty to conspiring to defraud the United States in connection with back-to-back loans obtained in Los Angeles at branches of Bank A and Bank B that were secured by funds in undeclared bank accounts in Israel. For tax years 2005 through 2008, Sperling failed to report income of approximately $381,563. The highest balance in Sperling’s undeclared accounts was approximately $4 million.
On May 21, 2013, Guity Kashfi of Los Angeles, Calif., pleaded guilty to conspiring to defraud the United States in connection with back-to-back loans obtained from branches of Bank A and Bank B in Los Angeles that were secured by funds in undeclared bank accounts in Israel and Luxembourg. For tax years 2005 through 2011, Kashfi failed to report interest income of approximately $221,306. The highest balance in Kashfi’s undeclared accounts was approximately $2.5 million.
U.S. citizens and residents 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. Additionally, U.S. citizens and residents must file a Report of Foreign Bank and Financial Reports (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.
Cohen faces a potential maximum prison term of five years and a maximum fine of $250,000. In addition, Cohen has agreed to pay a civil penalty to the IRS in the amount of 50 percent of the high balance of his undeclared accounts for failing to file FBARs.
Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and André Birotte Jr., U.S. Attorney for the Central District of California thanked special agents of IRS-CI, who investigated the case, and Tax Division Senior Litigation Counsel John E. Sullivan and Assistant Chief Elizabeth C. Hadden, who prosecuted these cases, and Assistant U.S. Attorney Sandra A. Brown of the U.S. Attorney’s Office, who assisted with the prosecutions.
Friday, September 6, 2013
Thursday, September 5, 2013
MAN, WOMAN PLEAD GUILTY TO TORCHING HOME OF AFRICAN-AMERICAN FAMILY
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, August 28, 2013
Independence, Mo., Man and Woman Plead Guilty to Violating Civil Rights of Family by Torching Their Home
Tammy Dickinson, U.S. Attorney for the Western District of Missouri, and Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, announced that an Independence, Mo., man and woman pleaded guilty in federal court today to violating the civil rights of an African-American family by setting fire to their residence.
Logan J. Smith, 25, and Victoria A. Cheek-Herrera, 34, both of Independence, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of conspiring to threaten and intimidate an Independence family from exercising their constitutional right to reside in their home because of their race or color and one count of a civil rights violation for committing a racially-motivated arson. Smith waived his right to a grand jury indictment and pleaded guilty to a two-count information, whereas Cheek-Herrera pleaded guilty to two of three counts charged in an indictment returned by the grand jury on May 23, 2013.
By pleading guilty, Smith and Cheek-Herrera admitted that on June 26, 2008, they conspired to injure, oppress, threaten and intimidate an African-American couple and their minor children in the free exercise of their constitutional rights to occupy and rent their home in Independence, because of their race and color.
According to the plea agreements, Smith and Cheek-Herrera discussed their desire to set fire to the home of the couple, and they drew a swastika and wrote the words “White Power” on the driveway. Smith and Cheek-Herrera asked a juvenile acquaintance for gasoline and then created a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. Smith and Cheek-Herrera then lit the wick and threw the gasoline-filled bottle into the side of the house that the couple was renting and set the residence on fire.
Smith and Cheek-Herrera each face a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one count of conspiracy against rights and a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one count of interference with housing rights.
This case was investigated by the FBI and is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice.
Wednesday, August 28, 2013
Independence, Mo., Man and Woman Plead Guilty to Violating Civil Rights of Family by Torching Their Home
Tammy Dickinson, U.S. Attorney for the Western District of Missouri, and Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, announced that an Independence, Mo., man and woman pleaded guilty in federal court today to violating the civil rights of an African-American family by setting fire to their residence.
Logan J. Smith, 25, and Victoria A. Cheek-Herrera, 34, both of Independence, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of conspiring to threaten and intimidate an Independence family from exercising their constitutional right to reside in their home because of their race or color and one count of a civil rights violation for committing a racially-motivated arson. Smith waived his right to a grand jury indictment and pleaded guilty to a two-count information, whereas Cheek-Herrera pleaded guilty to two of three counts charged in an indictment returned by the grand jury on May 23, 2013.
By pleading guilty, Smith and Cheek-Herrera admitted that on June 26, 2008, they conspired to injure, oppress, threaten and intimidate an African-American couple and their minor children in the free exercise of their constitutional rights to occupy and rent their home in Independence, because of their race and color.
According to the plea agreements, Smith and Cheek-Herrera discussed their desire to set fire to the home of the couple, and they drew a swastika and wrote the words “White Power” on the driveway. Smith and Cheek-Herrera asked a juvenile acquaintance for gasoline and then created a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. Smith and Cheek-Herrera then lit the wick and threw the gasoline-filled bottle into the side of the house that the couple was renting and set the residence on fire.
Smith and Cheek-Herrera each face a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one count of conspiracy against rights and a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one count of interference with housing rights.
This case was investigated by the FBI and is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice.
Wednesday, September 4, 2013
MAN SENTENCED FOR 2009 MURDER OF EIGHT AND WOUNDING OF 19 OTHERS AT NIGHTCLUB
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, August 28, 2013
Puerto Rico Man Sentenced to Life in Prison for 2009 Mass Shooting
Alexis Candelario-Santana, 42, was sentenced today to life in prison for murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting at a Puerto Rico nightclub in 2009.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez made the announcement.
“The horrifying massacre at La Tómbola came just nine months after Candelario-Santana’s release from prison for committing 12 murders. During his rampage, he brutally killed or injured dozens of other innocent victims, including children and the elderly,” said Acting Assistant Attorney General Raman. “Our thoughts are with the victims and their families, and we hope that today’s life sentence brings some measure of comfort to them. As this prosecution and today’s life sentence shows, we will not waver in our commitment to bringing violent criminals to justice.”
“With the sentencing of this career criminal we have made our community a safer place. The U.S. Attorney’s Office will continue working along with other law enforcement agencies to prosecute criminals who deprive our communities of a peaceful and safe environment,” said U.S. Attorney Rodríguez-Vélez. “I commend our prosecutors and investigative agencies who have demonstrated, once again, that our efforts continue to provide positive results to the community.”
Candelario-Santana and his co-defendant David Oquendo-Rivas were convicted by a federal jury on March 8, 2013. Candelario-Santana was convicted of 28 counts of committing violent crimes in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possessing a firearm as a convicted felon. Oquendo-Rivas was convicted of 28 counts of committing violent crimes in aid of racketeering activity and nine counts of using a firearm in relation to a crime of violence. These offenses occurred on Oct. 17, 2009, in what became known as the “La Tómbola Massacre.”
Based on the government’s charging documents, only Candelario-Santana was potentially eligible for the death penalty. On March 23, 2013, the same jury that determined the guilt of Candelario-Santana and Oquendo-Rivas was unable to reach a unanimous verdict on the question of whether Candelario-Santana should be sentenced to death or life in prison. As a result, under the Federal Death Penalty Act, Candelario-Santana was required to be sentenced to life in prison.
According to the evidence presented at trial, from approximately 1993 through 2003, Candelario-Santana was a leader of the drug trafficking organization that operated principally in Sabana Seca, Toa Baja, Puerto Rico. The organization purchased drugs in bulk, processed and packaged the drugs, and sold them at Sabana Seca through numerous sellers, runners and enforcers under Candelario-Santana’s control. The organization sold crack, cocaine, heroin and marijuana, and members of the organization routinely possessed firearms to protect its drug points. In addition, the evidence introduced at trial established that, between 1995 and 2001, Candelario-Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats to his drug trafficking organization or as being disloyal members of the drug trafficking organization.
In approximately 2002, Candelario-Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Candelario-Santana was eventually convicted of 12 murders in the local courts, and was sentenced to a total of 12 years in prison. Sometime after Candelario-Santana’s arrest, co-defendant Carmelo Rondón-Feliciano took charge of the day-to-day operations of the organization, but Candelario-Santana continued to direct the organization from prison until approximately 2006, when he was marginalized by co-conspirator Wilfredo Semprit-Santana and Rondón-Feliciano. According to evidence presented at trial, Candelario-Santana was infuriated at being removed from power within the drug trafficking organization.
On Sept. 25, 2006, Rondón-Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes, for which he was eventually convicted. These charges stemmed, in part, from Rondón-Feliciano’s distribution of narcotics in Sabana Seca. After Rondón-Feliciano’s arrest, co-conspirator Semprit-Santana took charge of the organization.
In February 2009, Candelario-Santana was released from prison.
On Oct. 17, 2009, Semprit-Santana held the grand opening of a nightclub he had rented and refurbished called La Tómbola, located in Toa Baja, Puerto Rico, complete with a popular live band and a festive Paso Fino horse parade, known as a “cabalgata.” The event was heavily attended, with families congregating inside and outside the establishment, most of whom had nothing to do with the drug trafficking organization and merely resided in the general area. At approximately 11:50 p.m., Candelario-Santana, co-defendant David Oquendo-Rivas, and others, all of whom were heavily armed, drove to La Tómbola. When they arrived, they immediately opened fire indiscriminately on all the patrons located outside, many of whom were women, children and elderly people. Candelario-Santana and Oquendo-Rivas stormed into the La Tómbola, and Candelario-Santana was heard to yell, “no one gets out alive,” as they opened fire on the people inside.
In all, eight people and an 8-month unborn child were killed as a result of the gunfire at La Tómbola, and 19 other victims were shot and injured. The individuals killed included Candelario-Santana’s godson, Rondón-Feliciano’s stepson, and Candelario-Santana’s cousin. The evidence introduced at trial demonstrated that 335 expended shell-casings were recovered from the La Tómbola crime scene. The ballistics evidence established that three AK-47-type assault rifles, one AR-15-type assault rifle, eight .9 mm semi-automatic pistols, three 40-caliber semi-automatic pistols, and two 45-caliber semi-automatic pistols were used in the attack.
Oquendo-Rivas is scheduled for sentencing on Sept. 20, 2013.
The case was investigated by the FBI and the Puerto Rico Police Department, with the collaboration of the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. The case was prosecuted by First Assistant U.S. Attorney María Dominguez-Victoriano and Assistant U.S. Attorney Marcela C. Mateo of the U.S. Attorney’s Office for the District of Puerto Rico and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Unit.
Wednesday, August 28, 2013
Puerto Rico Man Sentenced to Life in Prison for 2009 Mass Shooting
Alexis Candelario-Santana, 42, was sentenced today to life in prison for murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting at a Puerto Rico nightclub in 2009.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez made the announcement.
“The horrifying massacre at La Tómbola came just nine months after Candelario-Santana’s release from prison for committing 12 murders. During his rampage, he brutally killed or injured dozens of other innocent victims, including children and the elderly,” said Acting Assistant Attorney General Raman. “Our thoughts are with the victims and their families, and we hope that today’s life sentence brings some measure of comfort to them. As this prosecution and today’s life sentence shows, we will not waver in our commitment to bringing violent criminals to justice.”
“With the sentencing of this career criminal we have made our community a safer place. The U.S. Attorney’s Office will continue working along with other law enforcement agencies to prosecute criminals who deprive our communities of a peaceful and safe environment,” said U.S. Attorney Rodríguez-Vélez. “I commend our prosecutors and investigative agencies who have demonstrated, once again, that our efforts continue to provide positive results to the community.”
Candelario-Santana and his co-defendant David Oquendo-Rivas were convicted by a federal jury on March 8, 2013. Candelario-Santana was convicted of 28 counts of committing violent crimes in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possessing a firearm as a convicted felon. Oquendo-Rivas was convicted of 28 counts of committing violent crimes in aid of racketeering activity and nine counts of using a firearm in relation to a crime of violence. These offenses occurred on Oct. 17, 2009, in what became known as the “La Tómbola Massacre.”
Based on the government’s charging documents, only Candelario-Santana was potentially eligible for the death penalty. On March 23, 2013, the same jury that determined the guilt of Candelario-Santana and Oquendo-Rivas was unable to reach a unanimous verdict on the question of whether Candelario-Santana should be sentenced to death or life in prison. As a result, under the Federal Death Penalty Act, Candelario-Santana was required to be sentenced to life in prison.
According to the evidence presented at trial, from approximately 1993 through 2003, Candelario-Santana was a leader of the drug trafficking organization that operated principally in Sabana Seca, Toa Baja, Puerto Rico. The organization purchased drugs in bulk, processed and packaged the drugs, and sold them at Sabana Seca through numerous sellers, runners and enforcers under Candelario-Santana’s control. The organization sold crack, cocaine, heroin and marijuana, and members of the organization routinely possessed firearms to protect its drug points. In addition, the evidence introduced at trial established that, between 1995 and 2001, Candelario-Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats to his drug trafficking organization or as being disloyal members of the drug trafficking organization.
In approximately 2002, Candelario-Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Candelario-Santana was eventually convicted of 12 murders in the local courts, and was sentenced to a total of 12 years in prison. Sometime after Candelario-Santana’s arrest, co-defendant Carmelo Rondón-Feliciano took charge of the day-to-day operations of the organization, but Candelario-Santana continued to direct the organization from prison until approximately 2006, when he was marginalized by co-conspirator Wilfredo Semprit-Santana and Rondón-Feliciano. According to evidence presented at trial, Candelario-Santana was infuriated at being removed from power within the drug trafficking organization.
On Sept. 25, 2006, Rondón-Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes, for which he was eventually convicted. These charges stemmed, in part, from Rondón-Feliciano’s distribution of narcotics in Sabana Seca. After Rondón-Feliciano’s arrest, co-conspirator Semprit-Santana took charge of the organization.
In February 2009, Candelario-Santana was released from prison.
On Oct. 17, 2009, Semprit-Santana held the grand opening of a nightclub he had rented and refurbished called La Tómbola, located in Toa Baja, Puerto Rico, complete with a popular live band and a festive Paso Fino horse parade, known as a “cabalgata.” The event was heavily attended, with families congregating inside and outside the establishment, most of whom had nothing to do with the drug trafficking organization and merely resided in the general area. At approximately 11:50 p.m., Candelario-Santana, co-defendant David Oquendo-Rivas, and others, all of whom were heavily armed, drove to La Tómbola. When they arrived, they immediately opened fire indiscriminately on all the patrons located outside, many of whom were women, children and elderly people. Candelario-Santana and Oquendo-Rivas stormed into the La Tómbola, and Candelario-Santana was heard to yell, “no one gets out alive,” as they opened fire on the people inside.
In all, eight people and an 8-month unborn child were killed as a result of the gunfire at La Tómbola, and 19 other victims were shot and injured. The individuals killed included Candelario-Santana’s godson, Rondón-Feliciano’s stepson, and Candelario-Santana’s cousin. The evidence introduced at trial demonstrated that 335 expended shell-casings were recovered from the La Tómbola crime scene. The ballistics evidence established that three AK-47-type assault rifles, one AR-15-type assault rifle, eight .9 mm semi-automatic pistols, three 40-caliber semi-automatic pistols, and two 45-caliber semi-automatic pistols were used in the attack.
Oquendo-Rivas is scheduled for sentencing on Sept. 20, 2013.
The case was investigated by the FBI and the Puerto Rico Police Department, with the collaboration of the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. The case was prosecuted by First Assistant U.S. Attorney María Dominguez-Victoriano and Assistant U.S. Attorney Marcela C. Mateo of the U.S. Attorney’s Office for the District of Puerto Rico and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Unit.
Tuesday, September 3, 2013
SOLDIER PLEADS GUILTY TO BRIBERY CHARGES CONCERNING FUEL THEFTS IN AFHGHANISTAN
FROM: DEFENSE DEPARTMENT
Thursday, August 29, 2013
Army Soldier Pleads Guilty in Kentucky to Bribery Charges for Facilitating Thefts of Fuel in Afghanistan
U.S. Army Sergeant Kevin Bilal Abdullah pleaded guilty today to bribery charges for his role in the theft of fuel at Forward Operating Base (FOB) Fenty, near Jalalabad, Afghanistan.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Kentucky David J. Hale.
Abdullah, 30, of Fort Campbell, Ky., pleaded guilty before U.S. District Judge Thomas B. Russell in the Western District of Kentucky to one count of conspiracy to commit bribery and one substantive count of bribery.
According to court documents, in approximately May and June 2010, Abdullah was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. As part of this process, documents generally described as “transportation movement requests” (TMRs or mission sheets) were created to authorize the movement of fuel.
According to court documents, Abdullah created fraudulent TMRs that purported to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, the fraudulent TMRs were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint in order to justify the trucks’ departures from FOB Fenty. In truth, the fuel was simply stolen.
Abdullah pleaded guilty to receiving payments from a representative of the trucking company in exchange for facilitating the theft of approximately 25 truckloads of fuel. According to court documents, the loss to the United States as a result of the theft was in excess of $400,000.
Abdullah’s plea is the third guilty plea arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Abdullah, pleaded guilty to similar charges. On Oct. 10, 2012, Christopher Weaver also pleaded guilty to fuel theft charges. A fourth individual, Stephanie Charboneau, was indicted April 9, 2013, and is pending trial on fuel theft-related charges.
This case is being prosecuted by Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael A. Bennett of the Western District of Kentucky. This case was investigated by the Special Inspector General for Afghanistan Reconstruction; Department of the Army, Criminal Investigations Division; Defense Criminal Investigative Service; and FBI.
Thursday, August 29, 2013
Army Soldier Pleads Guilty in Kentucky to Bribery Charges for Facilitating Thefts of Fuel in Afghanistan
U.S. Army Sergeant Kevin Bilal Abdullah pleaded guilty today to bribery charges for his role in the theft of fuel at Forward Operating Base (FOB) Fenty, near Jalalabad, Afghanistan.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Kentucky David J. Hale.
Abdullah, 30, of Fort Campbell, Ky., pleaded guilty before U.S. District Judge Thomas B. Russell in the Western District of Kentucky to one count of conspiracy to commit bribery and one substantive count of bribery.
According to court documents, in approximately May and June 2010, Abdullah was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. As part of this process, documents generally described as “transportation movement requests” (TMRs or mission sheets) were created to authorize the movement of fuel.
According to court documents, Abdullah created fraudulent TMRs that purported to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, the fraudulent TMRs were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint in order to justify the trucks’ departures from FOB Fenty. In truth, the fuel was simply stolen.
Abdullah pleaded guilty to receiving payments from a representative of the trucking company in exchange for facilitating the theft of approximately 25 truckloads of fuel. According to court documents, the loss to the United States as a result of the theft was in excess of $400,000.
Abdullah’s plea is the third guilty plea arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Abdullah, pleaded guilty to similar charges. On Oct. 10, 2012, Christopher Weaver also pleaded guilty to fuel theft charges. A fourth individual, Stephanie Charboneau, was indicted April 9, 2013, and is pending trial on fuel theft-related charges.
This case is being prosecuted by Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael A. Bennett of the Western District of Kentucky. This case was investigated by the Special Inspector General for Afghanistan Reconstruction; Department of the Army, Criminal Investigations Division; Defense Criminal Investigative Service; and FBI.
Monday, September 2, 2013
SELLING A WAY IN: ENTERING COMPUTER NETWORKS THROUGH THE BACKDOOR
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, August 27, 2013
Pennsylvania Man Pleads Guilty in Massachusetts to Hacking into Multiple Computer Networks
A Pennsylvania man pleaded guilty today to charges stemming from his participation in a scheme to hack into computer networks and sell access to those networks.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts.
Andrew James Miller, 23, of Devon, Penn., pleaded guilty before U.S. District Judge Mark Wolf in the District of Massachusetts to one count of conspiracy and two counts of computer intrusion.
According to court documents, from 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers. According to court documents, Miller obtained log-in credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other log-in credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks.
Judge Wolf scheduled sentencing for Nov. 19, 2013. The maximum penalty for the conspiracy count is five years in prison. One of the computer intrusion counts carries a maximum penalty of five years in prison and the other, involving intentional damage to a protected computer, carries a maximum penalty of 10 years in prison.
The case was investigated by the FBI. It is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the U.S. Attorney’s Office for the District of Massachusetts.
Tuesday, August 27, 2013
Pennsylvania Man Pleads Guilty in Massachusetts to Hacking into Multiple Computer Networks
A Pennsylvania man pleaded guilty today to charges stemming from his participation in a scheme to hack into computer networks and sell access to those networks.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts.
Andrew James Miller, 23, of Devon, Penn., pleaded guilty before U.S. District Judge Mark Wolf in the District of Massachusetts to one count of conspiracy and two counts of computer intrusion.
According to court documents, from 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers. According to court documents, Miller obtained log-in credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other log-in credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks.
Judge Wolf scheduled sentencing for Nov. 19, 2013. The maximum penalty for the conspiracy count is five years in prison. One of the computer intrusion counts carries a maximum penalty of five years in prison and the other, involving intentional damage to a protected computer, carries a maximum penalty of 10 years in prison.
The case was investigated by the FBI. It is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the U.S. Attorney’s Office for the District of Massachusetts.
Sunday, September 1, 2013
THREATENING SYNAGOGUE LEADS TO CHARGE OF CIVIL RIGHTS VIOLATIONS
FROM: U.S. JUSTICE DEPARTMENT
Monday, August 26, 2013
Man Who Threatened Synagogue in Fargo, North Dakota, Charged with Civil Rights Violation
Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels and U.S. Attorney for the District of North Dakota Timothy Q. Purdon announced that Dominique Jason Flanigan was arraigned today on civil rights and threats charges.
Flanigan was indicted under seal by a grand jury on Dec. 12, 2012, for threatening a synagogue in Fargo, N.D. The two-count indictment charges Flanigan with issuing a threatening interstate communication and with interfering with a federally protected activity. The indictment was unsealed prior to his arraignment.
The indictment alleges that, on Jan. 4, 2011, Flanigan called Temple Beth El in Fargo, and left a voice mail message threatening the employees of the synagogue. The indictment charges that this threat intimidated and interfered with Temple Beth El employees because of their religion.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Lynn C. Jordheim and Megan A. Healy of the U.S. Attorney’s Office for the District of North Dakota and Trial Attorney Dana Mulhauser of the Criminal Section of the Civil Rights Division.
Monday, August 26, 2013
Man Who Threatened Synagogue in Fargo, North Dakota, Charged with Civil Rights Violation
Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels and U.S. Attorney for the District of North Dakota Timothy Q. Purdon announced that Dominique Jason Flanigan was arraigned today on civil rights and threats charges.
Flanigan was indicted under seal by a grand jury on Dec. 12, 2012, for threatening a synagogue in Fargo, N.D. The two-count indictment charges Flanigan with issuing a threatening interstate communication and with interfering with a federally protected activity. The indictment was unsealed prior to his arraignment.
The indictment alleges that, on Jan. 4, 2011, Flanigan called Temple Beth El in Fargo, and left a voice mail message threatening the employees of the synagogue. The indictment charges that this threat intimidated and interfered with Temple Beth El employees because of their religion.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Lynn C. Jordheim and Megan A. Healy of the U.S. Attorney’s Office for the District of North Dakota and Trial Attorney Dana Mulhauser of the Criminal Section of the Civil Rights Division.
Saturday, August 31, 2013
HIDDEN BUT NOT FORGOTTEN, U.S. MARSHALS GET THEIR MAN
FROM: U.S. MARSHALS SERVICE
Can I Blend In? Probably Not
Albuquerque, NM – On August 15, 2013, the District Court of New Mexico in Sandoval County issued a warrant for the arrest of Joseph T. Smith, charging him with Criminal Sexual Penetration of a Minor. Rio Rancho Police investigated the sexual assault and the complaint alleges that Smith befriended a minor on a computer website and then went over to the minor’s home when her parents were not there. The Minor’s parents returned home and caught Smith jumping out the second story window of their home. The Minor’s parents gave chase and when the mother caught up to Smith, Smith assault and battered the Minor’s mother to get away. Smith’s friends helped him flee Rio Rancho; they picked him up and transported him to Albuquerque. Smith attempted to hide in and around the city of Albuquerque.
Rio Rancho Police and United States Marshals developed information that Smith was sleeping in the dug out of a high school baseball field every other night and that he would ride the Albuquerque city buses for a place to feel safe and sleep. Smith was seen in Albuquerque’s southeast area of town on several occasions trying to blend in with college kids in and around the two universities. Smith has a very distinctive tattoo that makes him easily identifiable. When pictures of Smith were distributed, within a split second most people that saw Smith were able to identify whether they did or did not see him in the area.
U.S. Marshals contacted both University of New Mexico (UNM) and Central New Mexico (CNM) campuses and had distributed photos of Smith to law enforcement officers. While Deputy Marshals were checking the computer labs and the library of CNM, CNM Security officers spotted Smith on campus trying to fit in with other college kids. Security Officers and Deputies took Smith into custody in the 900 block of Buena Vista Se, Albuquerque, NM. Joseph T. Smith, 22, has a criminal history that spans four states and includes other acts of violence. Smith was booked into custody without incident. District of New Mexico, United States Marshal Conrad Candelaria said ” the District of New Mexico’s United States Marshals Service, Fugitive Task Force takes very seriously its primary directive of investigating and apprehending dangerous and violent fugitives but what further propels this directive is when children suffer at the hands of predators. I commend the diligent efforts of the Marshals Service and its many law enforcement partners that worked continuously until this dangerous fugitive was arrested before another child is hurt.”
Can I Blend In? Probably Not
Albuquerque, NM – On August 15, 2013, the District Court of New Mexico in Sandoval County issued a warrant for the arrest of Joseph T. Smith, charging him with Criminal Sexual Penetration of a Minor. Rio Rancho Police investigated the sexual assault and the complaint alleges that Smith befriended a minor on a computer website and then went over to the minor’s home when her parents were not there. The Minor’s parents returned home and caught Smith jumping out the second story window of their home. The Minor’s parents gave chase and when the mother caught up to Smith, Smith assault and battered the Minor’s mother to get away. Smith’s friends helped him flee Rio Rancho; they picked him up and transported him to Albuquerque. Smith attempted to hide in and around the city of Albuquerque.
Rio Rancho Police and United States Marshals developed information that Smith was sleeping in the dug out of a high school baseball field every other night and that he would ride the Albuquerque city buses for a place to feel safe and sleep. Smith was seen in Albuquerque’s southeast area of town on several occasions trying to blend in with college kids in and around the two universities. Smith has a very distinctive tattoo that makes him easily identifiable. When pictures of Smith were distributed, within a split second most people that saw Smith were able to identify whether they did or did not see him in the area.
U.S. Marshals contacted both University of New Mexico (UNM) and Central New Mexico (CNM) campuses and had distributed photos of Smith to law enforcement officers. While Deputy Marshals were checking the computer labs and the library of CNM, CNM Security officers spotted Smith on campus trying to fit in with other college kids. Security Officers and Deputies took Smith into custody in the 900 block of Buena Vista Se, Albuquerque, NM. Joseph T. Smith, 22, has a criminal history that spans four states and includes other acts of violence. Smith was booked into custody without incident. District of New Mexico, United States Marshal Conrad Candelaria said ” the District of New Mexico’s United States Marshals Service, Fugitive Task Force takes very seriously its primary directive of investigating and apprehending dangerous and violent fugitives but what further propels this directive is when children suffer at the hands of predators. I commend the diligent efforts of the Marshals Service and its many law enforcement partners that worked continuously until this dangerous fugitive was arrested before another child is hurt.”
Friday, August 30, 2013
MEMBERS OF ALLEGED LOAN SHARKING-ILLEGAL GAMBLING ORGANIZATION CHARGED
FROM: U.S. JUSTICE DEPARTMENT
Friday, August 23, 2013
Alleged Members of Violent Loan Sharking and Illegal Gambling Organization Charged in Philadelphia
An indictment was unsealed charging nine people in a loan sharking and illegal gambling ring allegedly run out of several Philadelphia businesses.
The charges were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division.
Ylli Gjeli, 48, Fatimir Mustafaraj, 41, George Markakis, 43, Gezim Asllani, 34, Rezart Rahmi Telushi, 40, Eneo Jahaj, 26, and Ardit Pone, 35, all of Philadelphia; Erion Murataj, 35, of Huntingdon Valley, Penn.; and Brian Jackson, 35, of Harleysville, Penn., were arrested this morning. The defendants are named in an indictment charging racketeering conspiracy, racketeering collection of unlawful debt, making extortionate extensions of credit, collections of extensions of credit by extortionate means, operating an illegal gambling business and possession of a firearm in furtherance of a crime of violence.
“The indictment unsealed today charges nine defendants with operating a criminal enterprise built on illegal gambling and a violent extortion racket,” said Acting Assistant Attorney General Raman. “The Justice Department will not stand by as criminal organizations victimize our communities. Today’s charges demonstrate our ongoing commitment to working alongside our federal, state and local counterparts to root out organized crime.”
“The indictment charges the defendants with running a violent loan sharking and gambling enterprise, using intimidation, threats and actual violence as part of their illegal business,” said U.S. Attorney Memeger. “We will not tolerate this type of criminal activity that preys upon financial weakness and threatens the physical safety of the individuals in debt and their innocent family members.”
“The defendants allegedly victimized people twice over,” said FBI Special Agent in Charge Hanko. “They provided loans at outrageous interest rates to those unable to obtain loans from traditional sources and then used threats and violence to collect on those illegal loans. Today's arrests demonstrate the FBI’s continued commitment to ridding Philadelphia of organized crime, wherever we find it.”
“Individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable,” said Special Agent in Charge of Internal Revenue Service-Criminal Investigation (IRS-CI) Akeia Conner. “IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to the indictment, the defendants and their associates used businesses located in Philadelphia – including the Lion Bar, Blackbird Café, “Ylli’s 2 Brothers,” First England Pizza and various coffee shops, among others – to conduct the enterprise’s loan sharking activities and illegal gambling business. The defendants allegedly generated money by making and collecting on loans with usurious rates of interest; using intimidation, threats and violence to make and collect on loans; and making loans to betting customers whose debts were incurred through the enterprise’s illegal gambling business.
Members and associates of the enterprise allegedly cultivated their reputation for violence by threatening customers with dangerous weapons such as a firearm or hatchet; using implied threats and intimidation; telling customers that if they did not pay their debts someone would kill them, break their legs or physically harm them or their family members in some other way; and physically assaulting subordinate members and associates. For example, the indictment alleges that Gjeli asked a customer why he had come to the basement of the Lion Bar. He then grabbed a hatchet with one hand, grabbed the customer’s arm with the other hand and slammed the hatchet onto the table right after the customer pulled his hand away. It is further alleged that defendant Gjeli placed a gun to the same customer’s head and threatened him.
It is further alleged that the defendants attempted to conceal the existence and operations of the enterprise from law enforcement by: limiting their discussions of criminal activities when on the phone, using cryptic and coded language to describe criminal activities, such as “pizza” to describe a loan; conducting pat-downs and body searches of customers to check for weapons and recording devices; and conducting the enterprise’s transactions primarily in cash.
According to the indictment, Gjeli was a leader and “boss” of the organization; Mustafaraj, aka “Tony,” was a leader and “muscle.” Both allegedly directed other members in the loan sharking activities and illegal gambling business, approved loans, used intimidation and threats of violence against customers, collected weekly loan payments, physically assaulted subordinate members and their associates, supervised the illegal gambling business, provided cash to pay customer’s gambling wins and otherwise financed the gambling business, collected gambling debts and made loans to customers whose debts were incurred through the illegal gambling business. Markakis, aka “George the Greek” and “Fat George,” was allegedly a leader of the enterprise who directed other members in the illegal gambling business. Murataj, aka “Ben” and “Paul,” and Asllani, aka “Sam,” were allegedly “collectors” who assisted Gjeli and Mustafaraj in making loans and regularly collected weekly loan payments from customers. Telushi, aka “Luigi,” was allegedly a “collector” who regularly collected weekly loan payments from customers. Jahaj, aka “Nimo,” Jackson, aka “Mark,” and Pone were allegedly “bookies” who operated parts of the illegal gambling business and regularly collected gambling debts. Jahaj and Jackson also allegedly set up and administered online accounts to facilitate customer betting and used the enterprise’s loan sharking activities to convert the gambling debts to loans.
If convicted of all charges, Gjeli and Mustafaraj face a maximum sentence of life in prison. The remaining defendants each face a maximum sentence of 20 years in prison.
An indictment is an accusation, and defendants are presumed innocent unless and until proven guilty.
The case was investigated by the FBI, IRS-CI, U.S. Immigration and Customs Enforcement (ICE) – Homeland Security Investigations (HSI), Pennsylvania State Police, Montgomery County, Penn., Detectives and the New Jersey State Police. It is being prosecuted by Assistant U.S. Attorney Salvatore L. Astolfi and Trial Attorney Jerome Maiatico of the Criminal Division’s Organized Crime and Gang Section.
Friday, August 23, 2013
Alleged Members of Violent Loan Sharking and Illegal Gambling Organization Charged in Philadelphia
An indictment was unsealed charging nine people in a loan sharking and illegal gambling ring allegedly run out of several Philadelphia businesses.
The charges were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division.
Ylli Gjeli, 48, Fatimir Mustafaraj, 41, George Markakis, 43, Gezim Asllani, 34, Rezart Rahmi Telushi, 40, Eneo Jahaj, 26, and Ardit Pone, 35, all of Philadelphia; Erion Murataj, 35, of Huntingdon Valley, Penn.; and Brian Jackson, 35, of Harleysville, Penn., were arrested this morning. The defendants are named in an indictment charging racketeering conspiracy, racketeering collection of unlawful debt, making extortionate extensions of credit, collections of extensions of credit by extortionate means, operating an illegal gambling business and possession of a firearm in furtherance of a crime of violence.
“The indictment unsealed today charges nine defendants with operating a criminal enterprise built on illegal gambling and a violent extortion racket,” said Acting Assistant Attorney General Raman. “The Justice Department will not stand by as criminal organizations victimize our communities. Today’s charges demonstrate our ongoing commitment to working alongside our federal, state and local counterparts to root out organized crime.”
“The indictment charges the defendants with running a violent loan sharking and gambling enterprise, using intimidation, threats and actual violence as part of their illegal business,” said U.S. Attorney Memeger. “We will not tolerate this type of criminal activity that preys upon financial weakness and threatens the physical safety of the individuals in debt and their innocent family members.”
“The defendants allegedly victimized people twice over,” said FBI Special Agent in Charge Hanko. “They provided loans at outrageous interest rates to those unable to obtain loans from traditional sources and then used threats and violence to collect on those illegal loans. Today's arrests demonstrate the FBI’s continued commitment to ridding Philadelphia of organized crime, wherever we find it.”
“Individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable,” said Special Agent in Charge of Internal Revenue Service-Criminal Investigation (IRS-CI) Akeia Conner. “IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to the indictment, the defendants and their associates used businesses located in Philadelphia – including the Lion Bar, Blackbird Café, “Ylli’s 2 Brothers,” First England Pizza and various coffee shops, among others – to conduct the enterprise’s loan sharking activities and illegal gambling business. The defendants allegedly generated money by making and collecting on loans with usurious rates of interest; using intimidation, threats and violence to make and collect on loans; and making loans to betting customers whose debts were incurred through the enterprise’s illegal gambling business.
Members and associates of the enterprise allegedly cultivated their reputation for violence by threatening customers with dangerous weapons such as a firearm or hatchet; using implied threats and intimidation; telling customers that if they did not pay their debts someone would kill them, break their legs or physically harm them or their family members in some other way; and physically assaulting subordinate members and associates. For example, the indictment alleges that Gjeli asked a customer why he had come to the basement of the Lion Bar. He then grabbed a hatchet with one hand, grabbed the customer’s arm with the other hand and slammed the hatchet onto the table right after the customer pulled his hand away. It is further alleged that defendant Gjeli placed a gun to the same customer’s head and threatened him.
It is further alleged that the defendants attempted to conceal the existence and operations of the enterprise from law enforcement by: limiting their discussions of criminal activities when on the phone, using cryptic and coded language to describe criminal activities, such as “pizza” to describe a loan; conducting pat-downs and body searches of customers to check for weapons and recording devices; and conducting the enterprise’s transactions primarily in cash.
According to the indictment, Gjeli was a leader and “boss” of the organization; Mustafaraj, aka “Tony,” was a leader and “muscle.” Both allegedly directed other members in the loan sharking activities and illegal gambling business, approved loans, used intimidation and threats of violence against customers, collected weekly loan payments, physically assaulted subordinate members and their associates, supervised the illegal gambling business, provided cash to pay customer’s gambling wins and otherwise financed the gambling business, collected gambling debts and made loans to customers whose debts were incurred through the illegal gambling business. Markakis, aka “George the Greek” and “Fat George,” was allegedly a leader of the enterprise who directed other members in the illegal gambling business. Murataj, aka “Ben” and “Paul,” and Asllani, aka “Sam,” were allegedly “collectors” who assisted Gjeli and Mustafaraj in making loans and regularly collected weekly loan payments from customers. Telushi, aka “Luigi,” was allegedly a “collector” who regularly collected weekly loan payments from customers. Jahaj, aka “Nimo,” Jackson, aka “Mark,” and Pone were allegedly “bookies” who operated parts of the illegal gambling business and regularly collected gambling debts. Jahaj and Jackson also allegedly set up and administered online accounts to facilitate customer betting and used the enterprise’s loan sharking activities to convert the gambling debts to loans.
If convicted of all charges, Gjeli and Mustafaraj face a maximum sentence of life in prison. The remaining defendants each face a maximum sentence of 20 years in prison.
An indictment is an accusation, and defendants are presumed innocent unless and until proven guilty.
The case was investigated by the FBI, IRS-CI, U.S. Immigration and Customs Enforcement (ICE) – Homeland Security Investigations (HSI), Pennsylvania State Police, Montgomery County, Penn., Detectives and the New Jersey State Police. It is being prosecuted by Assistant U.S. Attorney Salvatore L. Astolfi and Trial Attorney Jerome Maiatico of the Criminal Division’s Organized Crime and Gang Section.
Thursday, August 29, 2013
TWO PLEAD GUILTY IN ARYAN BROTHERHOOD OF TEXAS MURDER CASE
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, August 21, 2013
Two Plead Guilty to Involvement in Aryan Brotherhood of Texas Racketeering Murder
An Aryan Brotherhood of Texas (ABT) gang member and an ABT associate have pleaded guilty to charges related to the May 2008 murder of Mark Davis Byrd Sr. in Atascosa County, Texas.
The guilty pleas were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Shane Gail McNiel, aka “Dirty,” 34, of San Antonio, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to the charge of accessory after the fact in the murder of Byrd. Destiny Nicole Feathers, 24, of Jourdanton, Texas, pleaded guilty to the same offense on Aug. 14, 2013.
According to information presented in court, McNiel was an ABT member and Feathers was associated with the gang, a powerful race-based, statewide organization that operates inside and outside of state and federal prisons throughout Texas and elsewhere in the United States. According to court documents, Byrd, an ABT prospect, was murdered by Jim Flint McIntyre, aka “Q-Ball,” Michael Dewayne Smith, aka “Bucky,” and another ABT gang member for allegedly stealing drugs he was ordered to deliver to a customer on behalf of the ABT. According to court documents, Byrd was murdered as a result of a “discipline” ordered by Frank Lavell Urbish, aka “Thumper,” and his superiors. Byrd’s body was discovered in Atascosa County on May 4, 2008. McIntyre, Smith and Urbish each pleaded guilty in 2011 to the racketeering murder of Byrd.
According to their plea agreements, McNiel and Feathers helped hide a shotgun that they knew had been used to murder Byrd. Following the murder, Urbish and Feathers drove to McNiel’s house with the shotgun wrapped in a sheet and gave it to McNiel who then hid the shotgun in a metal shed behind his house. According to court documents, Feathers further assisted McIntyre by disposing of Byrd’s bloody clothing.
According to court documents, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. While the ABT was at its inception primarily concerned with the protection of white inmates and white supremacy/separatism, over time the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to court documents, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by members of the ABT.
At sentencing, scheduled for Jan. 30, 2014, McNiel and Feathers each face a maximum penalty of 15 years in prison.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Wednesday, August 21, 2013
Two Plead Guilty to Involvement in Aryan Brotherhood of Texas Racketeering Murder
An Aryan Brotherhood of Texas (ABT) gang member and an ABT associate have pleaded guilty to charges related to the May 2008 murder of Mark Davis Byrd Sr. in Atascosa County, Texas.
The guilty pleas were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Shane Gail McNiel, aka “Dirty,” 34, of San Antonio, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to the charge of accessory after the fact in the murder of Byrd. Destiny Nicole Feathers, 24, of Jourdanton, Texas, pleaded guilty to the same offense on Aug. 14, 2013.
According to information presented in court, McNiel was an ABT member and Feathers was associated with the gang, a powerful race-based, statewide organization that operates inside and outside of state and federal prisons throughout Texas and elsewhere in the United States. According to court documents, Byrd, an ABT prospect, was murdered by Jim Flint McIntyre, aka “Q-Ball,” Michael Dewayne Smith, aka “Bucky,” and another ABT gang member for allegedly stealing drugs he was ordered to deliver to a customer on behalf of the ABT. According to court documents, Byrd was murdered as a result of a “discipline” ordered by Frank Lavell Urbish, aka “Thumper,” and his superiors. Byrd’s body was discovered in Atascosa County on May 4, 2008. McIntyre, Smith and Urbish each pleaded guilty in 2011 to the racketeering murder of Byrd.
According to their plea agreements, McNiel and Feathers helped hide a shotgun that they knew had been used to murder Byrd. Following the murder, Urbish and Feathers drove to McNiel’s house with the shotgun wrapped in a sheet and gave it to McNiel who then hid the shotgun in a metal shed behind his house. According to court documents, Feathers further assisted McIntyre by disposing of Byrd’s bloody clothing.
According to court documents, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. While the ABT was at its inception primarily concerned with the protection of white inmates and white supremacy/separatism, over time the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to court documents, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by members of the ABT.
At sentencing, scheduled for Jan. 30, 2014, McNiel and Feathers each face a maximum penalty of 15 years in prison.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Wednesday, August 28, 2013
MARSHALS SERVICE ARRESTED PUERTO RICO MURDER FUGITIVE
FROM: U.S. MARSHALS SERVICE
U.S. Marshals Arrest Puerto Rico Murder Fugitive in Lebanon County
Fatal shooting occurred over two decades ago
Harrisburg, PA – Today, United States Marshal Martin J. Pane announced the arrest of Felix Pinero-Baez, a 63-year old man, in Lebanon, Pennsylvania.
On October 5, 1986, Pinero-Baez was involved in a vehicular accident in Carolina, Puerto Rico. He fled the scene of the accident. A 35-year old female who witnessed the accident followed Pinero-Baez’s vehicle. She approached it when it stopped, and was shot three times by the car’s driver. In November 1986, the victim died from the gunshot wounds. In January 1987, an arrest warrant was issued charging Pinero-Baez with the homicide. Pinero-Baez has been on the run since, and has never been arrested for this murder.
On August 6, 2013, the Pennsylvania Board of Probation and Parole, in coordination with Puerto Rico National Police, requested the assistance of the U.S. Marshals Service Fugitive Task Force to assist in locating Pinero-Baez. Information was developed indicating Pinero-Baez was in the Lebanon area.
During the morning hours of August 7, U.S. Marshals, Lebanon City Police Department, Pennsylvania Board of Probation & Parole and Pennsylvania State Police located and arrested Pinero-Baez in the 100 block of North 12th Street in Lebanon. Pinero-Baez was arrested without incident.
Pinero-Baez was turned over to local authorities, and is held at the Lebanon County Prison. Pinero-Baez will be arraigned by Magisterial District Judge Thomas Capello.
United States Marshal Martin J. Pane stated, “The U.S. Marshals Service Fugitive Task Force is committed to ensuring victims of such cruelty have justice. Such dangerous fugitives are given the highest priority, and we are committed to taking them off the streets swiftly to prevent further harm to the public.”
U.S. Marshals received significant assistance from the Pennsylvania Board of Probation and Parole and the Pennsylvania State Police. These agencies are participating members of the U.S. Marshals Service Fugitive Task Force in the Middle District of Pennsylvania. Additional assistance was provided by the Lebanon City Police Department.
The concept of all USMS-led fugitive task forces is to seek out and arrest the nation’s most dangerous offenders.
U.S. Marshals Arrest Puerto Rico Murder Fugitive in Lebanon County
Fatal shooting occurred over two decades ago
Harrisburg, PA – Today, United States Marshal Martin J. Pane announced the arrest of Felix Pinero-Baez, a 63-year old man, in Lebanon, Pennsylvania.
On October 5, 1986, Pinero-Baez was involved in a vehicular accident in Carolina, Puerto Rico. He fled the scene of the accident. A 35-year old female who witnessed the accident followed Pinero-Baez’s vehicle. She approached it when it stopped, and was shot three times by the car’s driver. In November 1986, the victim died from the gunshot wounds. In January 1987, an arrest warrant was issued charging Pinero-Baez with the homicide. Pinero-Baez has been on the run since, and has never been arrested for this murder.
On August 6, 2013, the Pennsylvania Board of Probation and Parole, in coordination with Puerto Rico National Police, requested the assistance of the U.S. Marshals Service Fugitive Task Force to assist in locating Pinero-Baez. Information was developed indicating Pinero-Baez was in the Lebanon area.
During the morning hours of August 7, U.S. Marshals, Lebanon City Police Department, Pennsylvania Board of Probation & Parole and Pennsylvania State Police located and arrested Pinero-Baez in the 100 block of North 12th Street in Lebanon. Pinero-Baez was arrested without incident.
Pinero-Baez was turned over to local authorities, and is held at the Lebanon County Prison. Pinero-Baez will be arraigned by Magisterial District Judge Thomas Capello.
United States Marshal Martin J. Pane stated, “The U.S. Marshals Service Fugitive Task Force is committed to ensuring victims of such cruelty have justice. Such dangerous fugitives are given the highest priority, and we are committed to taking them off the streets swiftly to prevent further harm to the public.”
U.S. Marshals received significant assistance from the Pennsylvania Board of Probation and Parole and the Pennsylvania State Police. These agencies are participating members of the U.S. Marshals Service Fugitive Task Force in the Middle District of Pennsylvania. Additional assistance was provided by the Lebanon City Police Department.
The concept of all USMS-led fugitive task forces is to seek out and arrest the nation’s most dangerous offenders.
Tuesday, August 27, 2013
U.S. MARSHALS SERVICES SAYS "ALLEGED KILLER RUNS HOME TO HIDE"
FROM: U.S. MARSHALS SERVICE
Alleged Killer Runs Home to Hide
Albuquerque, NM – On June 15, 2013, Jashon Warren allegedly shot and killed Michael Moore outside the Bird of Paradise bar in southeast Albuquerque, NM. The Albuquerque Police Department obtained a warrant for Warren’s arrest charging him with Murder. Albuquerque Police Department (APD) Gang Unit Detectives developed information that Warren fled New Mexico and ran to his home town of Sacramento, CA.
On August 1, 2013, United States Marshals in Albuquerque, NM, were asked to assist in locating and arresting Jashon Warren in California. Deputy Marshals in New Mexico and California, working in conjunction with APD Gang Unit Detectives, were able to track Warren to the 2500 block of Kit Carson Street, Sacramento, CA. Deputy Marshals and task force Officers from the Eastern District of California, moved in to arrest Warren and that’s when Warren took off running. After two foot chases, 1 through a creepy cemetery at night, and a 2 hour game of hide and seek, Deputies were able to corner and contain Warren in an apartment in the 2600 block of Kit Carson Street in the Housing Projects of Sacramento.
Deputies surrounded the apartment and were able to call Warren out after several hours. Warren will be extradited back to New Mexico to face charges of Murder, Shooting at or from an Occupied Motor Vehicle, and Felon in Possession of a Firearm.
Alleged Killer Runs Home to Hide
Albuquerque, NM – On June 15, 2013, Jashon Warren allegedly shot and killed Michael Moore outside the Bird of Paradise bar in southeast Albuquerque, NM. The Albuquerque Police Department obtained a warrant for Warren’s arrest charging him with Murder. Albuquerque Police Department (APD) Gang Unit Detectives developed information that Warren fled New Mexico and ran to his home town of Sacramento, CA.
On August 1, 2013, United States Marshals in Albuquerque, NM, were asked to assist in locating and arresting Jashon Warren in California. Deputy Marshals in New Mexico and California, working in conjunction with APD Gang Unit Detectives, were able to track Warren to the 2500 block of Kit Carson Street, Sacramento, CA. Deputy Marshals and task force Officers from the Eastern District of California, moved in to arrest Warren and that’s when Warren took off running. After two foot chases, 1 through a creepy cemetery at night, and a 2 hour game of hide and seek, Deputies were able to corner and contain Warren in an apartment in the 2600 block of Kit Carson Street in the Housing Projects of Sacramento.
Deputies surrounded the apartment and were able to call Warren out after several hours. Warren will be extradited back to New Mexico to face charges of Murder, Shooting at or from an Occupied Motor Vehicle, and Felon in Possession of a Firearm.
Monday, August 26, 2013
FBI SEEKING INFORMATION REGARDING TARGETED MURDER OF POLICE OFFICER
FROM: FEDERAL BUREAU OF INVESTIGATION
Mollie Halpern: The FBI and its law enforcement partners are seeking information about the murder of police officer Jason Ellis. Chief Division Counsel of the Louisville, Kentucky FBI Mary Trotman…
Mary Trotman: The FBI has just recently approved up to $50,000 for information for the identification, arrest, and convictions of those responsible.
Halpern: I’m Mollie Halpern, and this is Wanted by the FBI. Officer Ellis was headed home at the end of his shift in the early morning of May 25 when he was ambushed on an exit ramp of the Blue Grass Parkway in Bardstown, Kentucky. He was shot multiple times. Kentucky State Police Lieutenant Jeremy Thompson…
Jeremy Thompson: When a police officer is specifically targeted, that is a higher danger to the public.
Halpern: Officer Ellis, a canine handler, played for the Cincinnati Reds minor league baseball team and coached little league.
Thompson: Someone has information, and that information could help us catch the killer of a fine police officer, husband, and father.
Halpern: Report tips to the FBI at (502) 263-6000 or the KSP [Kentucky State Police] at (270) 766-5078. Visit www.fbi.gov for more information.
Mollie Halpern: The FBI and its law enforcement partners are seeking information about the murder of police officer Jason Ellis. Chief Division Counsel of the Louisville, Kentucky FBI Mary Trotman…
Mary Trotman: The FBI has just recently approved up to $50,000 for information for the identification, arrest, and convictions of those responsible.
Halpern: I’m Mollie Halpern, and this is Wanted by the FBI. Officer Ellis was headed home at the end of his shift in the early morning of May 25 when he was ambushed on an exit ramp of the Blue Grass Parkway in Bardstown, Kentucky. He was shot multiple times. Kentucky State Police Lieutenant Jeremy Thompson…
Jeremy Thompson: When a police officer is specifically targeted, that is a higher danger to the public.
Halpern: Officer Ellis, a canine handler, played for the Cincinnati Reds minor league baseball team and coached little league.
Thompson: Someone has information, and that information could help us catch the killer of a fine police officer, husband, and father.
Halpern: Report tips to the FBI at (502) 263-6000 or the KSP [Kentucky State Police] at (270) 766-5078. Visit www.fbi.gov for more information.
CORRECTIONS OFFICER CHARGED WITH ASSAULTING AN INMATE
FROM: U.S. JUSTICE DEPARTMENT
Friday, August 16, 2013
Former Lorain County, Ohio, Corrections Officer Charged for Assaulting an Inmate
Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels, U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach and Special Agent in Charge for the FBI Cleveland Field Office Stephen D. Anthony, announced today that former Lorain County, Ohio corrections officer Marlon Taylor, 47, of Vermilion, Ohio, was charged in the U.S. Court for the Northern District of Ohio with one count of deprivation of rights under color of law.
The criminal information alleges that on July 29, 2012, Taylor, while working as a corrections officer in the Lorain County Jail, assaulted an inmate identified as Victim 1 by striking him repeatedly, causing bodily injury and depriving Victim 1 the right to be free from cruel and unusual punishment.
If convicted, Taylor faces a potential maximum sentence of 10 years in prison and a $250,000 fine. A charge is not evidence of guilt and all defendants are presumed innocent until proven guilty.
The investigation has been conducted by the FBI Cleveland Field Office. Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell, and, Trial Attorney Betsy Biffl of the Civil Rights Division, Criminal Section will prosecute the case.
Friday, August 16, 2013
Former Lorain County, Ohio, Corrections Officer Charged for Assaulting an Inmate
Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels, U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach and Special Agent in Charge for the FBI Cleveland Field Office Stephen D. Anthony, announced today that former Lorain County, Ohio corrections officer Marlon Taylor, 47, of Vermilion, Ohio, was charged in the U.S. Court for the Northern District of Ohio with one count of deprivation of rights under color of law.
The criminal information alleges that on July 29, 2012, Taylor, while working as a corrections officer in the Lorain County Jail, assaulted an inmate identified as Victim 1 by striking him repeatedly, causing bodily injury and depriving Victim 1 the right to be free from cruel and unusual punishment.
If convicted, Taylor faces a potential maximum sentence of 10 years in prison and a $250,000 fine. A charge is not evidence of guilt and all defendants are presumed innocent until proven guilty.
The investigation has been conducted by the FBI Cleveland Field Office. Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell, and, Trial Attorney Betsy Biffl of the Civil Rights Division, Criminal Section will prosecute the case.
Sunday, August 25, 2013
THREE MEMBERS AND ASSOCIATE OF ALMIGHTY LATIN KING/QUEEN NATION SENTENCED TO PRISON
FROM: U.S. JUSTICE DEPARTMENT
Thursday, August 15, 2013
Three Members and One Associate of Violent North Carolina Latin Kings Gang Sentenced to Prison
Three members and one associate of the North Carolina Almighty Latin King/Queen Nation (ALKQN) have been sentenced this week in federal court in the Middle District of North Carolina.
The announcement was made today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ripley Rand of the Middle District of North Carolina; Special Agent in Charge John A. Strong of the FBI’s Charlotte Division; Chief of the Greensboro, N.C., Police Department Ken Miller; and B.J. Barnes, Sheriff of Guilford County, N.C.
U.S. District Court Judge James A. Beaty Jr. sentenced the following defendants:
• Jorge Peter Cornell, 36, of Greensboro, N.C., aka “King Jay,” was sentenced on Aug. 14, 2013, to serve 336 months in prison;
• Jason Paul Yates, 32, originally of Chicago but recently living in North Carolina, aka “King Squirrel,” was sentenced on Aug. 15, 2013, to serve 206 months in prison;
• Steaphan Acencio-Vasquez, 22, of Raleigh, N.C., aka “King Leo,” was sentenced on Aug. 13, 2013, to serve 96 months in prison and three years of supervised release; and
• Ernesto Wilson, 55, of New York City, aka “Yayo,” was sentenced on Aug. 13, 2013, to serve 204 months in prison and three years of supervised release.
Cornell, the leader of the North Carolina ALKQN, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy, violent crimes in aid of racketeering activity and use of a firearm during and in relation to a crime of violence for an April 2008 assault with a dangerous weapon.
Wilson, an ALKQN associate, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy.
ALKQN members Yates and Acencio-Vasquez previously pleaded guilty to racketeering conspiracy.
According to court documents and evidence presented at trial, the defendants were members and associates of ALKQN, a violent street gang that originated in Chicago in the 1960s and ultimately migrated to cities throughout the United States, including New York City and ultimately Greensboro in 2002. From approximately 2005 until December 2011, ALKQN gang members met on a regular basis to increase their knowledge base of the gang rules; discuss criminal activity and how to deal with rival gangs, including by attempted murder; purchase firearms; circulate firearms for use in criminal activity by other ALKQN members; and engage in violent crimes such as robberies, bank fraud, arson and carjacking. The proceeds of this criminal activity helped to finance the gang’s illegal activities. ALKQN members also attempted to murder members of the gang when they attempted to terminate their membership.
Evidence presented at trial also showed that Cornell conspired with other ALKQN members to commit racketeering acts, including the April 2008 shooting of a rival gang member; the commissioning of no fewer than five Hobbs Act Robberies of businesses located throughout the Greensboro area; the plotting of firebomb attacks on the residences of former ALKQN members; attacks on former ALKQN members; and the killing of former ALKQN members through drive-by shootings. Cornell also provided firearms to members of ALKQN to commit several of these crimes.
ALKQN member Wesley Anderson Williams, who pleaded guilty on Oct. 1, 2012, to racketeering conspiracy, will be sentenced by Judge Beaty on Aug. 20, 2013. Russell Lloyd Kilfoil, an ALKQN member who was convicted by a federal jury on Nov. 21, 2012, will be sentenced on Aug. 28, 2013.
The investigation was a joint operation conducted by the FBI’s Greensboro Field Office, Greensboro Police Department and the Guilford County Sheriff’s Office.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Robert A.J. Lang of the Middle District of North Carolina.
Thursday, August 15, 2013
Three Members and One Associate of Violent North Carolina Latin Kings Gang Sentenced to Prison
Three members and one associate of the North Carolina Almighty Latin King/Queen Nation (ALKQN) have been sentenced this week in federal court in the Middle District of North Carolina.
The announcement was made today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ripley Rand of the Middle District of North Carolina; Special Agent in Charge John A. Strong of the FBI’s Charlotte Division; Chief of the Greensboro, N.C., Police Department Ken Miller; and B.J. Barnes, Sheriff of Guilford County, N.C.
U.S. District Court Judge James A. Beaty Jr. sentenced the following defendants:
• Jorge Peter Cornell, 36, of Greensboro, N.C., aka “King Jay,” was sentenced on Aug. 14, 2013, to serve 336 months in prison;
• Jason Paul Yates, 32, originally of Chicago but recently living in North Carolina, aka “King Squirrel,” was sentenced on Aug. 15, 2013, to serve 206 months in prison;
• Steaphan Acencio-Vasquez, 22, of Raleigh, N.C., aka “King Leo,” was sentenced on Aug. 13, 2013, to serve 96 months in prison and three years of supervised release; and
• Ernesto Wilson, 55, of New York City, aka “Yayo,” was sentenced on Aug. 13, 2013, to serve 204 months in prison and three years of supervised release.
Cornell, the leader of the North Carolina ALKQN, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy, violent crimes in aid of racketeering activity and use of a firearm during and in relation to a crime of violence for an April 2008 assault with a dangerous weapon.
Wilson, an ALKQN associate, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy.
ALKQN members Yates and Acencio-Vasquez previously pleaded guilty to racketeering conspiracy.
According to court documents and evidence presented at trial, the defendants were members and associates of ALKQN, a violent street gang that originated in Chicago in the 1960s and ultimately migrated to cities throughout the United States, including New York City and ultimately Greensboro in 2002. From approximately 2005 until December 2011, ALKQN gang members met on a regular basis to increase their knowledge base of the gang rules; discuss criminal activity and how to deal with rival gangs, including by attempted murder; purchase firearms; circulate firearms for use in criminal activity by other ALKQN members; and engage in violent crimes such as robberies, bank fraud, arson and carjacking. The proceeds of this criminal activity helped to finance the gang’s illegal activities. ALKQN members also attempted to murder members of the gang when they attempted to terminate their membership.
Evidence presented at trial also showed that Cornell conspired with other ALKQN members to commit racketeering acts, including the April 2008 shooting of a rival gang member; the commissioning of no fewer than five Hobbs Act Robberies of businesses located throughout the Greensboro area; the plotting of firebomb attacks on the residences of former ALKQN members; attacks on former ALKQN members; and the killing of former ALKQN members through drive-by shootings. Cornell also provided firearms to members of ALKQN to commit several of these crimes.
ALKQN member Wesley Anderson Williams, who pleaded guilty on Oct. 1, 2012, to racketeering conspiracy, will be sentenced by Judge Beaty on Aug. 20, 2013. Russell Lloyd Kilfoil, an ALKQN member who was convicted by a federal jury on Nov. 21, 2012, will be sentenced on Aug. 28, 2013.
The investigation was a joint operation conducted by the FBI’s Greensboro Field Office, Greensboro Police Department and the Guilford County Sheriff’s Office.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Robert A.J. Lang of the Middle District of North Carolina.
Saturday, August 24, 2013
JAMAICAN CITIZEN CHARGED FOR ROLE IN LOTTERY SCAM
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, August 14, 2013
Individual Arrested in Florida in Connection with a Lottery Scam in Jamaica
A Jamaican citizen charged in connection with the operation of a fraudulent lottery was arrested Tuesday in Orlando, Fla., following his indictment by a federal grand jury in Fort Lauderdale, Fla., on Aug. 9, 2012, the Justice Department, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Marshals Service announced today. Oneike Mickhale Barnett was arrested based on charges that he and his co-conspirators ran a lottery scam in Jamaica that fraudulently induced elderly victims in the United States to send them thousands of dollars to cover fees for lottery winnings that victims had not in fact won. The indictment unsealed with Barnett’s arrest forms part of the government’s crackdown on fraudulent lottery scams based in Jamaica.
Beginning in October 2008, Barnett and his co-conspirators are alleged to have contacted victims in the U.S., announced that the victims had won cash and prizes and persuaded the victims to send them thousands of dollars in fees to release the money. The victims never received cash or prizes. The defendant and his co-conspirators allegedly made calls from Jamaica using Voice Over Internet Protocol technology that allowed them to use a telephone number with a U.S. area code. According to the indictment, Barnett convinced victims to send money to middlemen in South Florida, who forwarded the money to Jamaica.
“Lottery scams that target older Americans, such as the one alleged here, are the most pernicious kind of fraud – often swindling seniors out of their life savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Justice Department will continue to combat these schemes and bring those responsible to justice.”
“The alleged lottery scheme in this case is most vile because it targeted the elderly, one of the most vulnerable members in our society,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “While the scam was based in Jamaica, it targeted victims in the United States, including South Florida. We will continue to pursue and prosecute those responsible for these illegal schemes in an effort to bring those responsible to justice and protect those in our society.”
Barnett was charged with conspiracy and 37 counts of wire fraud, and with committing these offenses via telemarketing. If convicted, he faces a statutory maximum sentence of 30 years per count, a possible fine and mandatory restitution.
“This arrest highlights the joint effort between U.S. and Jamaican law enforcement to prosecute those who prey on our nation’s senior citizens,” said U.S. Postal Inspector in Charge for the Miami Division Ronald Verrochio. “The mission of the Postal Inspection Service is to protect consumers by ensuring the nation’s mail system is not used as a tool for fraud.”
Special Agent in Charge for Homeland Security Investigations in Miami Alysa D. Erichs added, “These individuals are preying on some of the most vulnerable members in our communities. We will continue to work with our partners in Jamaica and other law enforcement agencies to put these criminal enterprises out of business.”
Acting U.S. Marshal Neil DeSousa said, “The U.S. Marshals Service in the Southern District of Florida, along with the Jamaica Foreign Field Office and the Organized Crime Drug Enforcement Task Force, remain committed to locating and apprehending criminals who defraud elderly Americans. We will continue to work with the U.S. Postal Inspection Service and Department of Homeland Security on the JOLT task force in the ongoing effort to combat lottery fraud targeting some of our most vulnerable citizens.”
U.S. Attorney Ferrer and Assistant Attorney General Delery both commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, the U.S. Marshals Service and Jamaica’s Major Organized Crime and Anti-Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division attorneys Jeffrey Steger and Kathryn Drenning.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Wednesday, August 14, 2013
Individual Arrested in Florida in Connection with a Lottery Scam in Jamaica
A Jamaican citizen charged in connection with the operation of a fraudulent lottery was arrested Tuesday in Orlando, Fla., following his indictment by a federal grand jury in Fort Lauderdale, Fla., on Aug. 9, 2012, the Justice Department, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Marshals Service announced today. Oneike Mickhale Barnett was arrested based on charges that he and his co-conspirators ran a lottery scam in Jamaica that fraudulently induced elderly victims in the United States to send them thousands of dollars to cover fees for lottery winnings that victims had not in fact won. The indictment unsealed with Barnett’s arrest forms part of the government’s crackdown on fraudulent lottery scams based in Jamaica.
Beginning in October 2008, Barnett and his co-conspirators are alleged to have contacted victims in the U.S., announced that the victims had won cash and prizes and persuaded the victims to send them thousands of dollars in fees to release the money. The victims never received cash or prizes. The defendant and his co-conspirators allegedly made calls from Jamaica using Voice Over Internet Protocol technology that allowed them to use a telephone number with a U.S. area code. According to the indictment, Barnett convinced victims to send money to middlemen in South Florida, who forwarded the money to Jamaica.
“Lottery scams that target older Americans, such as the one alleged here, are the most pernicious kind of fraud – often swindling seniors out of their life savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Justice Department will continue to combat these schemes and bring those responsible to justice.”
“The alleged lottery scheme in this case is most vile because it targeted the elderly, one of the most vulnerable members in our society,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “While the scam was based in Jamaica, it targeted victims in the United States, including South Florida. We will continue to pursue and prosecute those responsible for these illegal schemes in an effort to bring those responsible to justice and protect those in our society.”
Barnett was charged with conspiracy and 37 counts of wire fraud, and with committing these offenses via telemarketing. If convicted, he faces a statutory maximum sentence of 30 years per count, a possible fine and mandatory restitution.
“This arrest highlights the joint effort between U.S. and Jamaican law enforcement to prosecute those who prey on our nation’s senior citizens,” said U.S. Postal Inspector in Charge for the Miami Division Ronald Verrochio. “The mission of the Postal Inspection Service is to protect consumers by ensuring the nation’s mail system is not used as a tool for fraud.”
Special Agent in Charge for Homeland Security Investigations in Miami Alysa D. Erichs added, “These individuals are preying on some of the most vulnerable members in our communities. We will continue to work with our partners in Jamaica and other law enforcement agencies to put these criminal enterprises out of business.”
Acting U.S. Marshal Neil DeSousa said, “The U.S. Marshals Service in the Southern District of Florida, along with the Jamaica Foreign Field Office and the Organized Crime Drug Enforcement Task Force, remain committed to locating and apprehending criminals who defraud elderly Americans. We will continue to work with the U.S. Postal Inspection Service and Department of Homeland Security on the JOLT task force in the ongoing effort to combat lottery fraud targeting some of our most vulnerable citizens.”
U.S. Attorney Ferrer and Assistant Attorney General Delery both commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, the U.S. Marshals Service and Jamaica’s Major Organized Crime and Anti-Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division attorneys Jeffrey Steger and Kathryn Drenning.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Friday, August 23, 2013
ALABAMA STATE EMPLOYEE SENTENCED FOR STOLEN IDENTITY REFUND FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, August 14, 2013
Alabama State Employee Sentenced to Prison for Stolen Identity Refund Fraud
Chequlia Motley of Montgomery, Ala., was sentenced yesterday to serve 36 months in prison for conspiracy and aggravated identity theft, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. Motley pleaded guilty to those charges in May 2013.
According to Motley’s plea agreement, she was a former state employee who stole identities from state databases and sold them to co-conspirators. As evidence presented at the sentencing hearing showed, Motley had previously worked for the Alabama State Employees’ Insurance Board and stole the personal information of over 100 state workers and their family members from the databases maintained by the board. She provided this information to Veronica Temple, Yolanda Moses and Barbara Murry, who used the stolen identities to file false tax returns that fraudulently requested tax refunds from the IRS. Temple, Moses and Murry were previously convicted and each sentenced in February to 57 months in prison.
In addition to the prison sentence, Motley was ordered to pay $179,946 in restitution to the Internal Revenue Service (IRS).
The case was investigated by agents of the IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division prosecuted the case, with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Wednesday, August 14, 2013
Alabama State Employee Sentenced to Prison for Stolen Identity Refund Fraud
Chequlia Motley of Montgomery, Ala., was sentenced yesterday to serve 36 months in prison for conspiracy and aggravated identity theft, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. Motley pleaded guilty to those charges in May 2013.
According to Motley’s plea agreement, she was a former state employee who stole identities from state databases and sold them to co-conspirators. As evidence presented at the sentencing hearing showed, Motley had previously worked for the Alabama State Employees’ Insurance Board and stole the personal information of over 100 state workers and their family members from the databases maintained by the board. She provided this information to Veronica Temple, Yolanda Moses and Barbara Murry, who used the stolen identities to file false tax returns that fraudulently requested tax refunds from the IRS. Temple, Moses and Murry were previously convicted and each sentenced in February to 57 months in prison.
In addition to the prison sentence, Motley was ordered to pay $179,946 in restitution to the Internal Revenue Service (IRS).
The case was investigated by agents of the IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division prosecuted the case, with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Thursday, August 22, 2013
TWO IDAHO RESIDENTS GO TO PRISON FOR ASBESTOS VIOLATIONS OF THE CLEAN AIR ACT
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, August 14, 2013
Two Idaho Men Sentenced to Prison for Asbestos Violations
Waterline Renovation Project Led to $3,980,000 Cleanup
Bradley Eberhart, 51, of Garden Valley, Idaho, and Douglas Greiner, 53, of Eagle, Idaho, were sentenced this week in federal court for violating the asbestos work practice standards of the Clean Air Act, announced Robert G. Dreher, Acting Assistant Attorney General for Environment and Natural Resources Division, and Wendy J. Olson, U.S. Attorney for the District of Idaho.
U.S. District Judge Edward J. Lodge sentenced Eberhart on Monday to six months in prison plus six months of home confinement, followed by six months of supervised release, 200 hours of community service, and restitution of $3.98 million, in joint and several liability. Greiner was also sentenced to six months in prison and six months of home confinement, to be followed by six months of supervised release. The amount of restitution by Greiner will be the subject of further briefing by the parties.
Both defendants previously pleaded guilty on Feb. 26, 2013.
Boise-based Owyhee Construction Inc., was the successful bidder on a $2.1 million waterline renovation project in Orofino, Idaho, a rural community in north central Idaho. Greiner was the project superintendent and Eberhart was the onsite supervisor of the project. The contract documents warned Owyhee Construction that the company may encounter up to 5,000 linear feet of cement asbestos pipe (CAP) during the renovation. CAP is a non-friable form of asbestos that is encapsulated in a cement matrix. When the CAP is broken or crushed by heavy equipment or subjected to cutting and grinding by machinery it becomes subject to regulation because of the threat to public health from airborne fibers.
Eberhart and Greiner failed to properly supervise the renovation. Eberhart supervised employees who were not properly trained in asbestos work and were not properly outfitted with protective gear while cutting CAP with saws. While working in the trenches to replace pipe, workers would remove CAP from the trenches, crush it and then place it back in the trenches. Large quantities of CAP were also removed from the trenches and ended up as fill material on sixteen properties around Orofino. Greiner pleaded guilty to orchestrating one of the disposals. The EPA cleanup cost just under $4 million.
“These prison sentences reflect the serious consequences of the failure of these defendants to comply with EPA’s regulations that protect public health from asbestos, a human carcinogen,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. “Such criminal acts endanger workers and the community and can, as demonstrated here, cost the federal government millions of dollars to cleanup. The Justice Department will continue to vigorously prosecute these crimes.”
“This case demonstrates the commitment of law enforcement and the Department of Justice to ensure the health of our residents,” said U.S. Attorney Olson. “Threats to the environment and to public health may not be readily apparent from a construction project. Renovation projects like these often generate dust with fine asbestos particles that may have the potential to cause serious health and environmental problems if safety precautions are not taken. The full extent of injury from airborne asbestos may not be noticed or diagnosed for years. It is important that companies, their foremen and their operators comply with environmental laws to avoid serious harm.”
“These two Defendants carelessly subjected Orofino residents to asbestos exposure,” said Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in Seattle. “In the course of their enterprise, they also created sixteen separate asbestos disposal sites that threatened the community, jeopardized workers and cost taxpayers $4 million to cleanup. Today’s sentence sends a clear message: if you risk people’s lives to save time and money, you will pay the price.”
The case was investigated by the U.S. Environmental Protection Agency. The case was prosecuted by Assistant U.S. Attorney D. Marc Haws from the District of Idaho and Senior Trial Attorney J. Ronald Sutcliffe of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Wednesday, August 14, 2013
Two Idaho Men Sentenced to Prison for Asbestos Violations
Waterline Renovation Project Led to $3,980,000 Cleanup
Bradley Eberhart, 51, of Garden Valley, Idaho, and Douglas Greiner, 53, of Eagle, Idaho, were sentenced this week in federal court for violating the asbestos work practice standards of the Clean Air Act, announced Robert G. Dreher, Acting Assistant Attorney General for Environment and Natural Resources Division, and Wendy J. Olson, U.S. Attorney for the District of Idaho.
U.S. District Judge Edward J. Lodge sentenced Eberhart on Monday to six months in prison plus six months of home confinement, followed by six months of supervised release, 200 hours of community service, and restitution of $3.98 million, in joint and several liability. Greiner was also sentenced to six months in prison and six months of home confinement, to be followed by six months of supervised release. The amount of restitution by Greiner will be the subject of further briefing by the parties.
Both defendants previously pleaded guilty on Feb. 26, 2013.
Boise-based Owyhee Construction Inc., was the successful bidder on a $2.1 million waterline renovation project in Orofino, Idaho, a rural community in north central Idaho. Greiner was the project superintendent and Eberhart was the onsite supervisor of the project. The contract documents warned Owyhee Construction that the company may encounter up to 5,000 linear feet of cement asbestos pipe (CAP) during the renovation. CAP is a non-friable form of asbestos that is encapsulated in a cement matrix. When the CAP is broken or crushed by heavy equipment or subjected to cutting and grinding by machinery it becomes subject to regulation because of the threat to public health from airborne fibers.
Eberhart and Greiner failed to properly supervise the renovation. Eberhart supervised employees who were not properly trained in asbestos work and were not properly outfitted with protective gear while cutting CAP with saws. While working in the trenches to replace pipe, workers would remove CAP from the trenches, crush it and then place it back in the trenches. Large quantities of CAP were also removed from the trenches and ended up as fill material on sixteen properties around Orofino. Greiner pleaded guilty to orchestrating one of the disposals. The EPA cleanup cost just under $4 million.
“These prison sentences reflect the serious consequences of the failure of these defendants to comply with EPA’s regulations that protect public health from asbestos, a human carcinogen,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. “Such criminal acts endanger workers and the community and can, as demonstrated here, cost the federal government millions of dollars to cleanup. The Justice Department will continue to vigorously prosecute these crimes.”
“This case demonstrates the commitment of law enforcement and the Department of Justice to ensure the health of our residents,” said U.S. Attorney Olson. “Threats to the environment and to public health may not be readily apparent from a construction project. Renovation projects like these often generate dust with fine asbestos particles that may have the potential to cause serious health and environmental problems if safety precautions are not taken. The full extent of injury from airborne asbestos may not be noticed or diagnosed for years. It is important that companies, their foremen and their operators comply with environmental laws to avoid serious harm.”
“These two Defendants carelessly subjected Orofino residents to asbestos exposure,” said Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in Seattle. “In the course of their enterprise, they also created sixteen separate asbestos disposal sites that threatened the community, jeopardized workers and cost taxpayers $4 million to cleanup. Today’s sentence sends a clear message: if you risk people’s lives to save time and money, you will pay the price.”
The case was investigated by the U.S. Environmental Protection Agency. The case was prosecuted by Assistant U.S. Attorney D. Marc Haws from the District of Idaho and Senior Trial Attorney J. Ronald Sutcliffe of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Wednesday, August 21, 2013
MAN CHARGED WITH OBSTRUCTING IRS ABILITY TO IDENTIFY HIS INCOME
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, August 14, 2013
Kentucky Resident Charged with Tax Evasion and Other Tax Fraud Charges
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, and Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, jointly announced today that James S. Faller II, of Russell Springs, Ky., was indicted by a federal grand jury in Bowling Green, Ky. Faller, a consultant and private investigator, is charged in an eleven count indictment with obstructing the internal revenue laws, evading his individual income taxes, making and subscribing to a false form that he filed with the Internal Revenue Service (IRS) and failing to file his individual income tax returns.
The indictment alleges that Faller obstructed the IRS’s ability to collect payment of a substantial penalty he owed to the government and the IRS’s ability to identify his income from 2006 through 2009. According to the indictment, Faller evaded the payment of a $216,000 penalty related to unpaid employment taxes of Call Center Communications Inc., of which Faller was the president. In addition, Faller was charged with evading his individual income taxes from 2006 through 2009. He allegedly failed to report more than $960,000 of income during this four-year period and committed various affirmative acts of evasion.
Faller faces a maximum punishment of three years in prison for the charge of obstructing the internal revenue laws; five years for each count of evading his individual income taxes; three years for making and subscribing to a false form that he filed with the IRS; and one year for each count of failing to file his individual income tax returns. He faces a maximum fine of $100,000 on each count of failing to file his income tax returns and $250,000 for each of the other counts. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case resulted from an investigation by special agents of the IRS - Criminal Investigation. Tax Division Trial Attorney Thomas Voracek and Assistant U.S. Attorney Lee Gentry are prosecuting the case.
Wednesday, August 14, 2013
Kentucky Resident Charged with Tax Evasion and Other Tax Fraud Charges
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, and Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, jointly announced today that James S. Faller II, of Russell Springs, Ky., was indicted by a federal grand jury in Bowling Green, Ky. Faller, a consultant and private investigator, is charged in an eleven count indictment with obstructing the internal revenue laws, evading his individual income taxes, making and subscribing to a false form that he filed with the Internal Revenue Service (IRS) and failing to file his individual income tax returns.
The indictment alleges that Faller obstructed the IRS’s ability to collect payment of a substantial penalty he owed to the government and the IRS’s ability to identify his income from 2006 through 2009. According to the indictment, Faller evaded the payment of a $216,000 penalty related to unpaid employment taxes of Call Center Communications Inc., of which Faller was the president. In addition, Faller was charged with evading his individual income taxes from 2006 through 2009. He allegedly failed to report more than $960,000 of income during this four-year period and committed various affirmative acts of evasion.
Faller faces a maximum punishment of three years in prison for the charge of obstructing the internal revenue laws; five years for each count of evading his individual income taxes; three years for making and subscribing to a false form that he filed with the IRS; and one year for each count of failing to file his individual income tax returns. He faces a maximum fine of $100,000 on each count of failing to file his income tax returns and $250,000 for each of the other counts. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case resulted from an investigation by special agents of the IRS - Criminal Investigation. Tax Division Trial Attorney Thomas Voracek and Assistant U.S. Attorney Lee Gentry are prosecuting the case.
Tuesday, August 20, 2013
SEC STOPS HEDGE FUND MANAGER FROM COMMITTING ALLEGED FRAUD
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Halts Fraud by Ohio-Based Hedge Fund Manager
On August 13, the Securities and Exchange Commission filed an emergency action charging Anthony J. Davian and his Richfield, Ohio-based asset management firm with defrauding investors in hedge funds they manage. A federal district court granted the SEC's motion for emergency relief, halting the fraud.
The SEC alleges that since 2011 Davian, a 34-year old resident of Copley, Ohio, has raised more than $1.5 million from investors by promoting Davian Capital Advisors, LLC as a highly successful investment management firm that manages a portfolio of profitable hedge funds. The SEC further alleges that Davian and Davian Capital misappropriated at least $1 million in investor proceeds and used the funds to pay for personal expenses such as the purchase of a luxury home and automobile for Davian.
According to the SEC's complaint, filed in federal district court, since 2011 Davian has raised at least $1.5 million from investors in several private funds managed by Davian Capital. Davian provided investors with marketing materials touting the funds' supposedly high returns and profitable trading strategies. The returns and profits described in the marketing materials were fictitious. Davian misappropriated most of the money received from investors and used the investors' funds to pay for personal expenses. For example, Davian pressured three individuals to invest $225,000 into his private funds, telling them that if they acted fast he would give them a break on his firm's management fees. Immediately upon receiving the investors' proceeds on July 5, 2013, Davian used the funds to pay for the construction of his residence.
The SEC filed an action against Davian and Davian Capital in federal district court in Akron, Ohio on August 13, alleging that they violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The Commission requested emergency relief, including a temporary restraining order and asset freeze. That same day, the Court granted the emergency relief requested by the SEC. In addition to emergency relief, the SEC seeks permanent injunctions, disgorgement of ill-gotten gains and financial penalties from Davian and Davian Capital.
SEC Halts Fraud by Ohio-Based Hedge Fund Manager
On August 13, the Securities and Exchange Commission filed an emergency action charging Anthony J. Davian and his Richfield, Ohio-based asset management firm with defrauding investors in hedge funds they manage. A federal district court granted the SEC's motion for emergency relief, halting the fraud.
The SEC alleges that since 2011 Davian, a 34-year old resident of Copley, Ohio, has raised more than $1.5 million from investors by promoting Davian Capital Advisors, LLC as a highly successful investment management firm that manages a portfolio of profitable hedge funds. The SEC further alleges that Davian and Davian Capital misappropriated at least $1 million in investor proceeds and used the funds to pay for personal expenses such as the purchase of a luxury home and automobile for Davian.
According to the SEC's complaint, filed in federal district court, since 2011 Davian has raised at least $1.5 million from investors in several private funds managed by Davian Capital. Davian provided investors with marketing materials touting the funds' supposedly high returns and profitable trading strategies. The returns and profits described in the marketing materials were fictitious. Davian misappropriated most of the money received from investors and used the investors' funds to pay for personal expenses. For example, Davian pressured three individuals to invest $225,000 into his private funds, telling them that if they acted fast he would give them a break on his firm's management fees. Immediately upon receiving the investors' proceeds on July 5, 2013, Davian used the funds to pay for the construction of his residence.
The SEC filed an action against Davian and Davian Capital in federal district court in Akron, Ohio on August 13, alleging that they violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The Commission requested emergency relief, including a temporary restraining order and asset freeze. That same day, the Court granted the emergency relief requested by the SEC. In addition to emergency relief, the SEC seeks permanent injunctions, disgorgement of ill-gotten gains and financial penalties from Davian and Davian Capital.
Monday, August 19, 2013
9TH PERSON SENTENCED IN BUSINESS OPPORTUNITY VENTURES FRAUD SCHEME
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, August 13, 2013
Ninth Individual Sentenced in Connection with Costa Rica-based Business Opportunity Ventures That Defrauded Americans
Michael Kerry Deevy, a Canadian citizen, was sentenced today in connection with a series of business opportunity fraud ventures based in Costa Rica, the Justice Department and the U.S. Postal Inspection Service announced. Beginning in 2006, Deevy and his co-conspirators in Costa Rica are alleged to have fraudulently induced purchasers in the U.S. to buy business opportunities from companies known as Cards-R-Us Inc., Premier Cards Inc. and Nation West. The business opportunities cost purchasers thousands of dollars each, with most paying at least $10,000. Today’s sentencing forms part of the government’s continued nationwide crackdown on business opportunity fraud.
“Business opportunity fraud schemes such as this one can crush the dreams – and wipe out the savings – of Americans who simply want to operate their own small businesses,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Department of Justice will continue to prosecute those who engage in these schemes, whether they set up shop here or abroad.”
“Business opportunity schemes target believers in a system that rewards those who are willing to sacrifice and work hard in the hope of getting ahead,” said U.S. Attorney for the Southern District of Florida Wifredo Ferrer. “In this particular case, the business opportunity fraud ventures were based in Costa Rica and targeted purchasers in the United States, including South Florida. Today’s sentence will hopefully send a message to those who are contemplating engaging in schemes such as this that, no matter where you are, we will pursue and prosecute you and bring you to justice for these illegal schemes.”
Deevy was sentenced by U.S. District Court Judge Patricia A. Seitz in Miami to 60 months in prison and 5 years’ supervised release. Deevy also was ordered to pay $4,541,914 in restitution. Prior to Deevy’s sentencing today, 11 other individuals were charged in connection with related business opportunity fraud ventures based in Costa Rica. Deevy is the ninth of those individuals to be convicted and sentenced in the U.S.
On April 11, Deevy pleaded guilty to one count of conspiracy, three counts of mail fraud and nine counts of wire fraud in connection with the business opportunity scheme. Deevy was arrested in Costa Rica in 2011 and extradited to the U.S. in 2012 following his indictment by a federal grand jury in Miami on Nov. 29, 2011. The indictment alleged that Deevy and his co-conspirators purported to sell greeting card and vending machine business opportunities, including assistance in establishing, maintaining and operating these businesses. Each company operated for several months, and after one company closed, another one opened.
Co-conspirators at the companies made numerous false statements to potential purchasers of the business opportunities. They indicated that purchasers likely would earn substantial profits; prior purchasers of the business opportunities were earning substantial profits; purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the companies worked with third party “locators” familiar with the potential purchasers’ areas who would secure, or had already secured, high-traffic locations for the prospective buyers’ merchandise display racks or machines.
In addition to these “locators,” the companies also employed various other types of sales representatives, including fronters, references and closers. Fronters spoke to prospective purchasers when they initially contacted the company in response to an advertisement. References told potential buyers that they had purchased one of the business opportunities and were making a profit. Closers subsequently spoke to potential purchasers to finalize deals. In pleading guilty, Deevy admitted that he was a fronter and reference for Cards-R-Us Inc., Premier Cards Inc. and Nation West.
“This investigation shows the resolve of the U.S. Postal Inspection Service to protect the American public from predatory business opportunity frauds,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division. “We will continue to work with our law enforcement partners in the United States and overseas to root out these schemes.”
Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service. The case was prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Alan Phelps with the Consumer Protection Branch of the U.S. Department of Justice’s Civil Division.
Tuesday, August 13, 2013
Ninth Individual Sentenced in Connection with Costa Rica-based Business Opportunity Ventures That Defrauded Americans
Michael Kerry Deevy, a Canadian citizen, was sentenced today in connection with a series of business opportunity fraud ventures based in Costa Rica, the Justice Department and the U.S. Postal Inspection Service announced. Beginning in 2006, Deevy and his co-conspirators in Costa Rica are alleged to have fraudulently induced purchasers in the U.S. to buy business opportunities from companies known as Cards-R-Us Inc., Premier Cards Inc. and Nation West. The business opportunities cost purchasers thousands of dollars each, with most paying at least $10,000. Today’s sentencing forms part of the government’s continued nationwide crackdown on business opportunity fraud.
“Business opportunity fraud schemes such as this one can crush the dreams – and wipe out the savings – of Americans who simply want to operate their own small businesses,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Department of Justice will continue to prosecute those who engage in these schemes, whether they set up shop here or abroad.”
“Business opportunity schemes target believers in a system that rewards those who are willing to sacrifice and work hard in the hope of getting ahead,” said U.S. Attorney for the Southern District of Florida Wifredo Ferrer. “In this particular case, the business opportunity fraud ventures were based in Costa Rica and targeted purchasers in the United States, including South Florida. Today’s sentence will hopefully send a message to those who are contemplating engaging in schemes such as this that, no matter where you are, we will pursue and prosecute you and bring you to justice for these illegal schemes.”
Deevy was sentenced by U.S. District Court Judge Patricia A. Seitz in Miami to 60 months in prison and 5 years’ supervised release. Deevy also was ordered to pay $4,541,914 in restitution. Prior to Deevy’s sentencing today, 11 other individuals were charged in connection with related business opportunity fraud ventures based in Costa Rica. Deevy is the ninth of those individuals to be convicted and sentenced in the U.S.
On April 11, Deevy pleaded guilty to one count of conspiracy, three counts of mail fraud and nine counts of wire fraud in connection with the business opportunity scheme. Deevy was arrested in Costa Rica in 2011 and extradited to the U.S. in 2012 following his indictment by a federal grand jury in Miami on Nov. 29, 2011. The indictment alleged that Deevy and his co-conspirators purported to sell greeting card and vending machine business opportunities, including assistance in establishing, maintaining and operating these businesses. Each company operated for several months, and after one company closed, another one opened.
Co-conspirators at the companies made numerous false statements to potential purchasers of the business opportunities. They indicated that purchasers likely would earn substantial profits; prior purchasers of the business opportunities were earning substantial profits; purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the companies worked with third party “locators” familiar with the potential purchasers’ areas who would secure, or had already secured, high-traffic locations for the prospective buyers’ merchandise display racks or machines.
In addition to these “locators,” the companies also employed various other types of sales representatives, including fronters, references and closers. Fronters spoke to prospective purchasers when they initially contacted the company in response to an advertisement. References told potential buyers that they had purchased one of the business opportunities and were making a profit. Closers subsequently spoke to potential purchasers to finalize deals. In pleading guilty, Deevy admitted that he was a fronter and reference for Cards-R-Us Inc., Premier Cards Inc. and Nation West.
“This investigation shows the resolve of the U.S. Postal Inspection Service to protect the American public from predatory business opportunity frauds,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division. “We will continue to work with our law enforcement partners in the United States and overseas to root out these schemes.”
Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service. The case was prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Alan Phelps with the Consumer Protection Branch of the U.S. Department of Justice’s Civil Division.
Sunday, August 18, 2013
CONSTRUCTION COMPANY OWNER INDICTED FOR TAX FRAUD
FROM: U.S. JUSTICE DEPARTMENT
Friday, August 9, 2013
Owner of New York Construction Company Indicted for Tax Fraud
The Justice Department and Internal Revenue Service (IRS) announced that Tomas Olazabal, of Fresh Meadows, N.Y., was arrested today following his indictment in the U.S. District Court for the Eastern District of New York on Aug. 8, 2013, on multiple tax crimes.
According to the indictment, Olazabal owned Tupac Construction Corp., a construction company in Fresh Meadows. As alleged in the indictment, Olazabal used check cashing services to cash a substantial number of checks paid to his construction company for services between 2007 and 2008. He concealed his check cashing activities from his tax return preparers. Accordingly, the gross receipts represented by the checks negotiated at the check cashers were not included as gross receipts on the company’s tax returns.
The indictment alleges that Olazabal filed false 2007 and 2008 corporate income tax returns for Tupac. Olazabal faces a potential maximum sentence of six years in prison and a potential fine of up to $500,000.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Steve Descano of the Justice Department’s Tax Division.
Friday, August 9, 2013
Owner of New York Construction Company Indicted for Tax Fraud
The Justice Department and Internal Revenue Service (IRS) announced that Tomas Olazabal, of Fresh Meadows, N.Y., was arrested today following his indictment in the U.S. District Court for the Eastern District of New York on Aug. 8, 2013, on multiple tax crimes.
According to the indictment, Olazabal owned Tupac Construction Corp., a construction company in Fresh Meadows. As alleged in the indictment, Olazabal used check cashing services to cash a substantial number of checks paid to his construction company for services between 2007 and 2008. He concealed his check cashing activities from his tax return preparers. Accordingly, the gross receipts represented by the checks negotiated at the check cashers were not included as gross receipts on the company’s tax returns.
The indictment alleges that Olazabal filed false 2007 and 2008 corporate income tax returns for Tupac. Olazabal faces a potential maximum sentence of six years in prison and a potential fine of up to $500,000.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Steve Descano of the Justice Department’s Tax Division.
Saturday, August 17, 2013
INVESTIGATION INTO DEATH OF CARLOS LAMADRID IS CLOSED BY FEDS
FROM: U.S. JUSTICE DEPARTMENT
Friday, August 9, 2013
Federal Officials Close the Investigation into the Death of Carlos LaMadrid
The Justice Department will not pursue federal criminal civil rights or other federal criminal charges against the United States Border Patrol (USBP) agent involved in the shooting incident that resulted in the death of Carlos LaMadrid, the Department announced today.
Officials from the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the District of Arizona, and the Department of Homeland Security (DHS) Office of the Inspector General (OIG) met today with LaMadrid’s family members and their representatives to inform them of this determination. The department’s decision is based on the facts developed during an independent and comprehensive investigation into the matter.
The department devoted significant time and resources to investigating the events surrounding LaMadrid’s death on March 21, 2011, around noon, at the international boundary fence separating the United States from Mexico in Douglas, Ariz. A team of experienced federal prosecutors reviewed thousands of pages of evidence generated by the DHS OIG investigators, the Customs and Border Protection Office of Professional Responsibility, and the Immigration and Customs Enforcement (ICE) Internal Affairs Unit. They conducted a detailed and lengthy analysis of numerous materials including videotapes of the incident, the autopsy report, physical evidence reports, official law enforcement use of force training materials, law enforcement accounts and civilian witness accounts. Federal prosecutors also interviewed several key witnesses and physically examined the scene of the shooting to gather additional information.
The evidence developed during the investigation indicated that LaMadrid, a 19-year-old U.S. citizen, was observed by Douglas Police Department (DPD) officers loading suspected bundles of narcotics into a Chevrolet Avalanche. DPD officers pursued the vehicle, but LaMadrid failed to yield and drove toward the international boundary fence. The Avalanche ran into a USBP agent’s service vehicle near the fence. LaMadrid exited the driver’s door, ran toward the fence, and climbed up a ladder that was resting against the fence. On top of the fence, near LaMadrid, was another male throwing brick-sized rocks at the USBP agent. At the time the shots were fired by the agent, LaMadrid was in the line of fire between the rock-throwing male and the agent. LaMadrid was struck by four bullets, causing him to fall to the ground. He was transported to a nearby hospital where he died in surgery several hours later.
While a civilian witness who climbed up the ladder behind the victim stated that he did not see anyone throwing rocks at the time of the shooting, his account is contradicted by the physical, testimonial and video evidence. A law enforcement officer who witnessed the shooting stated that he saw a man on top of the fence throw three rocks at the agent, forcing the shooting agent to duck down behind his vehicle for cover. The videotapes of the incident, although poor in quality, show an individual on top of the border fence making an overhead throwing motion as the victim ascends the ladder. Crime scene investigators recovered several brick-sized rocks at the scene, including one that shattered the windshield of the USBP agent’s service vehicle, which the agent was standing or stooping next to when he fired five shots.
Under the applicable federal criminal civil rights law, prosecutors must establish, beyond a reasonable doubt, that an official “willfully” deprived an individual of a constitutional right, meaning that the official acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by the law. Neither accident, mistake, fear, negligence nor bad judgment is sufficient to establish a federal criminal civil rights violation. After a careful and thorough review, a team of experienced federal prosecutors determined that the evidence was insufficient to pursue federal criminal civil rights charges.
This matter is also not prosecutable under the federal homicide statutes, although it was committed within the Special Maritime and Territorial Jurisdiction of the United States, because there is insufficient evidence for the government to disprove that the agent was acting in self-defense when he fired at the rock thrower and mistakenly struck the victim, who was in his line of fire.
Friday, August 9, 2013
Federal Officials Close the Investigation into the Death of Carlos LaMadrid
The Justice Department will not pursue federal criminal civil rights or other federal criminal charges against the United States Border Patrol (USBP) agent involved in the shooting incident that resulted in the death of Carlos LaMadrid, the Department announced today.
Officials from the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the District of Arizona, and the Department of Homeland Security (DHS) Office of the Inspector General (OIG) met today with LaMadrid’s family members and their representatives to inform them of this determination. The department’s decision is based on the facts developed during an independent and comprehensive investigation into the matter.
The department devoted significant time and resources to investigating the events surrounding LaMadrid’s death on March 21, 2011, around noon, at the international boundary fence separating the United States from Mexico in Douglas, Ariz. A team of experienced federal prosecutors reviewed thousands of pages of evidence generated by the DHS OIG investigators, the Customs and Border Protection Office of Professional Responsibility, and the Immigration and Customs Enforcement (ICE) Internal Affairs Unit. They conducted a detailed and lengthy analysis of numerous materials including videotapes of the incident, the autopsy report, physical evidence reports, official law enforcement use of force training materials, law enforcement accounts and civilian witness accounts. Federal prosecutors also interviewed several key witnesses and physically examined the scene of the shooting to gather additional information.
The evidence developed during the investigation indicated that LaMadrid, a 19-year-old U.S. citizen, was observed by Douglas Police Department (DPD) officers loading suspected bundles of narcotics into a Chevrolet Avalanche. DPD officers pursued the vehicle, but LaMadrid failed to yield and drove toward the international boundary fence. The Avalanche ran into a USBP agent’s service vehicle near the fence. LaMadrid exited the driver’s door, ran toward the fence, and climbed up a ladder that was resting against the fence. On top of the fence, near LaMadrid, was another male throwing brick-sized rocks at the USBP agent. At the time the shots were fired by the agent, LaMadrid was in the line of fire between the rock-throwing male and the agent. LaMadrid was struck by four bullets, causing him to fall to the ground. He was transported to a nearby hospital where he died in surgery several hours later.
While a civilian witness who climbed up the ladder behind the victim stated that he did not see anyone throwing rocks at the time of the shooting, his account is contradicted by the physical, testimonial and video evidence. A law enforcement officer who witnessed the shooting stated that he saw a man on top of the fence throw three rocks at the agent, forcing the shooting agent to duck down behind his vehicle for cover. The videotapes of the incident, although poor in quality, show an individual on top of the border fence making an overhead throwing motion as the victim ascends the ladder. Crime scene investigators recovered several brick-sized rocks at the scene, including one that shattered the windshield of the USBP agent’s service vehicle, which the agent was standing or stooping next to when he fired five shots.
Under the applicable federal criminal civil rights law, prosecutors must establish, beyond a reasonable doubt, that an official “willfully” deprived an individual of a constitutional right, meaning that the official acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by the law. Neither accident, mistake, fear, negligence nor bad judgment is sufficient to establish a federal criminal civil rights violation. After a careful and thorough review, a team of experienced federal prosecutors determined that the evidence was insufficient to pursue federal criminal civil rights charges.
This matter is also not prosecutable under the federal homicide statutes, although it was committed within the Special Maritime and Territorial Jurisdiction of the United States, because there is insufficient evidence for the government to disprove that the agent was acting in self-defense when he fired at the rock thrower and mistakenly struck the victim, who was in his line of fire.
Friday, August 16, 2013
5 PUERTO RICO POLICED DEPARTMENT OFFICERS INDICTED ON VARIOUS CHARGES
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, August 7, 2013
Five Puerto Rico Police Department Officers Indicted on Federal Civil Rights, Obstruction of Justice and Perjury Charges
A second superseding indictment against five Puerto Rico Police Department (PRPD) officers was announced today by Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division; Rosa Emilia Rodriguez-Velez, U.S. Attorney for the District of Puerto Rico; and Carlos Cases, Special Agent in Charge of the FBI San Juan Field Office.
According to the indictment unsealed today, PRPD Lt. Erick Rivera Nazario, Officer David Colon Martinez and Officer Angel Torres Quinones were indicted on civil rights charges alleging that they violated the constitutional rights of Jose Irizarry Perez while he was celebrating the local election results at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008. Rivera was also charged with violating the civil rights of Irizarry Perez’s father, Jose Irizarry Muniz. In addition, Rivera, Colon, Officer Miguel Negron Vazquez and Sgt. Antonio Rodriguez Caraballo were indicted for obstruction of justice and making false statements to the FBI and a federal grand jury. Torres was indicted for obstruction of justice by providing misleading information to the local prosecutor.
According to the twenty-count second superseding indictment, while Colon held and restrained Irizarry Perez, Rivera and another PRPD officer physically struck Irizarry Perez and assaulted him with a police baton, which resulted in bodily injury to him. In addition, the second superseding indictment charges Torres with striking Irizarry Perez with a police baton, which also resulted in bodily injury to him. The second superseding indictment alleges that Rivera, Colon and Torres thereby deprived Irizarry Perez of his right to be free from unreasonable seizures by those acting under color of law. Although Irizarry Perez died as a result of injuries he sustained on Nov. 5, 2008, the second superseding indictment does not include charges that his death resulted from the defendants’ conduct. Rivera, who was a supervisor at the time of the incident, was also charged with failing to keep Irizarry Perez and his father from harm when an officer whom Rivera supervised assaulted the victims in Rivera’s presence.
In addition, the second superseding indictment alleges that Rivera, Colon, Negron and Rodriguez made false statements concerning the incident to the FBI and to the federal grand jury which had been investigating the incident. Colon and Negron were also charged with obstruction of justice for submitting false police reports and for providing misleading information to the Puerto Rico prosecutor that initially investigated the matter. Rodriguez and Torres were also charged with obstruction of justice for providing misleading information to the Puerto Rico prosecutor, and Rivera was additionally charged with obstruction of justice for submitting a false police report.
Each of the civil rights charges is punishable by a maximum term of ten years in prison. Each count charging obstruction of justice is punishable by a maximum term of twenty years in prison. Each count charging making false statements to the FBI and perjury is punishable by a maximum term of five years in prison. In addition, every charge in the indictment carries a maximum fine of $250,000.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the San Juan Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jose A. Contreras from the U.S. Attorney’s Office for the District of Puerto Rico and Senior Litigation Counsel Gerard Hogan and Trial Attorney Shan Patel from the Civil Rights Division of the U.S. Department of Justice.
Wednesday, August 7, 2013
Five Puerto Rico Police Department Officers Indicted on Federal Civil Rights, Obstruction of Justice and Perjury Charges
A second superseding indictment against five Puerto Rico Police Department (PRPD) officers was announced today by Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division; Rosa Emilia Rodriguez-Velez, U.S. Attorney for the District of Puerto Rico; and Carlos Cases, Special Agent in Charge of the FBI San Juan Field Office.
According to the indictment unsealed today, PRPD Lt. Erick Rivera Nazario, Officer David Colon Martinez and Officer Angel Torres Quinones were indicted on civil rights charges alleging that they violated the constitutional rights of Jose Irizarry Perez while he was celebrating the local election results at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008. Rivera was also charged with violating the civil rights of Irizarry Perez’s father, Jose Irizarry Muniz. In addition, Rivera, Colon, Officer Miguel Negron Vazquez and Sgt. Antonio Rodriguez Caraballo were indicted for obstruction of justice and making false statements to the FBI and a federal grand jury. Torres was indicted for obstruction of justice by providing misleading information to the local prosecutor.
According to the twenty-count second superseding indictment, while Colon held and restrained Irizarry Perez, Rivera and another PRPD officer physically struck Irizarry Perez and assaulted him with a police baton, which resulted in bodily injury to him. In addition, the second superseding indictment charges Torres with striking Irizarry Perez with a police baton, which also resulted in bodily injury to him. The second superseding indictment alleges that Rivera, Colon and Torres thereby deprived Irizarry Perez of his right to be free from unreasonable seizures by those acting under color of law. Although Irizarry Perez died as a result of injuries he sustained on Nov. 5, 2008, the second superseding indictment does not include charges that his death resulted from the defendants’ conduct. Rivera, who was a supervisor at the time of the incident, was also charged with failing to keep Irizarry Perez and his father from harm when an officer whom Rivera supervised assaulted the victims in Rivera’s presence.
In addition, the second superseding indictment alleges that Rivera, Colon, Negron and Rodriguez made false statements concerning the incident to the FBI and to the federal grand jury which had been investigating the incident. Colon and Negron were also charged with obstruction of justice for submitting false police reports and for providing misleading information to the Puerto Rico prosecutor that initially investigated the matter. Rodriguez and Torres were also charged with obstruction of justice for providing misleading information to the Puerto Rico prosecutor, and Rivera was additionally charged with obstruction of justice for submitting a false police report.
Each of the civil rights charges is punishable by a maximum term of ten years in prison. Each count charging obstruction of justice is punishable by a maximum term of twenty years in prison. Each count charging making false statements to the FBI and perjury is punishable by a maximum term of five years in prison. In addition, every charge in the indictment carries a maximum fine of $250,000.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the San Juan Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jose A. Contreras from the U.S. Attorney’s Office for the District of Puerto Rico and Senior Litigation Counsel Gerard Hogan and Trial Attorney Shan Patel from the Civil Rights Division of the U.S. Department of Justice.
Thursday, August 15, 2013
MS-13 LEADERS FOUND GUILTY OF RACKETEERING
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, August 6, 2013
Three MS-13 Leaders Found Guilty of Racketeering and Additional Charges for Multiple Murders and Attacks
Twelve Others Have Pleaded Guilty in the Case
Three leaders of MS-13 in Washington, D.C., were found guilty by a federal jury today of conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes in the Washington area.
The verdicts, which followed a month-long trial, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Washington; and Cathy L. Lanier, Chief of the Washington, D.C., Metropolitan Police Department (MPD).
“Today, a jury has found three defendants guilty of committing heinous crimes as part of their membership in a brutal international criminal organization that has terrorized communities throughout the United States and Central America,” said Acting Assistant Attorney General Raman. “As a result of this successful investigation and prosecution, these violent gang members now face substantial prison sentences.”
“After a month-long trial, this jury delivered the message that MS-13 and its brutal brand of violence will not be tolerated in the District of Columbia,” said U.S. Attorney Machen. “These three killers now face life in prison for their outrageous crimes, including the stabbing death of a 14-year-old boy in Columbia Heights. I want to thank the prosecutors and our law enforcement partners who have dedicated years to investigating and prosecuting this transnational gang. The District is safer with these murderers behind bars.”
“This verdict represents the consequences for the decisions made and the lifestyle choices of the three convicted gang members,” said Special Agent in Charge Torres. “Investigating violent crimes committed by trans-national gang members is a priority for HSI.”
“The convictions of these three violent gang leaders should send a clear message to the members of this ruthless, international criminal organization that gang activity will not be tolerated in our communities,” said Police Chief Lanier. “I applaud the hard work and dedication by the members of the Metropolitan Police Department and our law enforcement partners who helped make today’s convictions possible. Our communities will be safer as a result.”
Yester Ayala, 22, aka “Freeway” and “Daddy Yankee,” of Washington; Noe Machado-Erazo, aka “Gallo,” 30, of Wheaton, Md.; and Jose Martinez-Amaya, 26, aka “Crimen,” of Brentwood, Md., were each found guilty in U.S. District Court in the District of Columbia. At sentencing, scheduled for Nov. 4, 2013, each of the defendants faces a maximum sentence of life in prison.
Ayala was found guilty of one count of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, one count of first-degree premeditated murder and one count of second-degree murder. Machado-Erazo was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence. Martinez-Amaya was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.
The government’s evidence showed that MS-13, a large gang that operates in the United States and Central America, engages in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The gang has numerous rules, such as enduring a beating of 13 seconds before becoming a member; killing rival gang members; and staying unfailingly loyal.
According to the government’s evidence, Machado-Erazo was a member and Martinez-Amaya was a leader of the Normandie clique, one of a number of smaller MS-13 groups operating in the Washington area. Ayala was a leader of the Sailors, another clique. The local cliques often act together, and evidence showed that Machado-Erazo was the leader of a program of cliques that worked together. According to evidence presented in court, the local MS-13 cliques act in accordance with the international MS-13’s strictures and have frequent contact with MS-13 leadership in El Salvador. The evidence showed that two of the murders were committed on orders from MS-13 leadership in El Salvador.
The three defendants are among numerous people indicted by a grand jury in 2010 following a federal investigation. Twelve others have pleaded guilty to charges in the case.
The range of criminal activity alleged in the indictment includes acts committed from 2008 through 2010 in the District of Columbia, Maryland, Virginia and other states.
Ayala was convicted of taking part in two murders in 2008, and Machado-Erazo and Martinez-Amaya were convicted of taking part in the murder of another victim.
The government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos. Membreno-Zelaya, 27, was stabbed at least 20 times, according to evidence presented in court. His body was found on Nov. 6, 2008, in Northwest Washington.
The second murder, according to evidence presented in court, took place in the late afternoon of Dec. 12, 2008. Ayala joined in on an attack against Giovanni Sanchez, 14, near the Columbia Heights Metro station in Washington. Giovanni had 11 stab wounds, and witnesses identified Ayala as one of the assailants.
According to evidence presented at trial, Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Md. Enriquez, another fellow MS-13 member, was fatally shot. Evidence presented during trial showed that Machado-Erazao provided the gun and Martinez-Amaya committed the shooting.
This case was prosecuted by Assistant U.S. Attorney Nihar Mohanty of the District of Columbia and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
The case was investigated by ICE-HSI and the MPD. Assistance was provided by the Montgomery County and the Prince George’s County, Md. Police Departments, the State’s Attorney’s Office for Montgomery County, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
Tuesday, August 6, 2013
Three MS-13 Leaders Found Guilty of Racketeering and Additional Charges for Multiple Murders and Attacks
Twelve Others Have Pleaded Guilty in the Case
Three leaders of MS-13 in Washington, D.C., were found guilty by a federal jury today of conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes in the Washington area.
The verdicts, which followed a month-long trial, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Washington; and Cathy L. Lanier, Chief of the Washington, D.C., Metropolitan Police Department (MPD).
“Today, a jury has found three defendants guilty of committing heinous crimes as part of their membership in a brutal international criminal organization that has terrorized communities throughout the United States and Central America,” said Acting Assistant Attorney General Raman. “As a result of this successful investigation and prosecution, these violent gang members now face substantial prison sentences.”
“After a month-long trial, this jury delivered the message that MS-13 and its brutal brand of violence will not be tolerated in the District of Columbia,” said U.S. Attorney Machen. “These three killers now face life in prison for their outrageous crimes, including the stabbing death of a 14-year-old boy in Columbia Heights. I want to thank the prosecutors and our law enforcement partners who have dedicated years to investigating and prosecuting this transnational gang. The District is safer with these murderers behind bars.”
“This verdict represents the consequences for the decisions made and the lifestyle choices of the three convicted gang members,” said Special Agent in Charge Torres. “Investigating violent crimes committed by trans-national gang members is a priority for HSI.”
“The convictions of these three violent gang leaders should send a clear message to the members of this ruthless, international criminal organization that gang activity will not be tolerated in our communities,” said Police Chief Lanier. “I applaud the hard work and dedication by the members of the Metropolitan Police Department and our law enforcement partners who helped make today’s convictions possible. Our communities will be safer as a result.”
Yester Ayala, 22, aka “Freeway” and “Daddy Yankee,” of Washington; Noe Machado-Erazo, aka “Gallo,” 30, of Wheaton, Md.; and Jose Martinez-Amaya, 26, aka “Crimen,” of Brentwood, Md., were each found guilty in U.S. District Court in the District of Columbia. At sentencing, scheduled for Nov. 4, 2013, each of the defendants faces a maximum sentence of life in prison.
Ayala was found guilty of one count of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, one count of first-degree premeditated murder and one count of second-degree murder. Machado-Erazo was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence. Martinez-Amaya was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.
The government’s evidence showed that MS-13, a large gang that operates in the United States and Central America, engages in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The gang has numerous rules, such as enduring a beating of 13 seconds before becoming a member; killing rival gang members; and staying unfailingly loyal.
According to the government’s evidence, Machado-Erazo was a member and Martinez-Amaya was a leader of the Normandie clique, one of a number of smaller MS-13 groups operating in the Washington area. Ayala was a leader of the Sailors, another clique. The local cliques often act together, and evidence showed that Machado-Erazo was the leader of a program of cliques that worked together. According to evidence presented in court, the local MS-13 cliques act in accordance with the international MS-13’s strictures and have frequent contact with MS-13 leadership in El Salvador. The evidence showed that two of the murders were committed on orders from MS-13 leadership in El Salvador.
The three defendants are among numerous people indicted by a grand jury in 2010 following a federal investigation. Twelve others have pleaded guilty to charges in the case.
The range of criminal activity alleged in the indictment includes acts committed from 2008 through 2010 in the District of Columbia, Maryland, Virginia and other states.
Ayala was convicted of taking part in two murders in 2008, and Machado-Erazo and Martinez-Amaya were convicted of taking part in the murder of another victim.
The government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos. Membreno-Zelaya, 27, was stabbed at least 20 times, according to evidence presented in court. His body was found on Nov. 6, 2008, in Northwest Washington.
The second murder, according to evidence presented in court, took place in the late afternoon of Dec. 12, 2008. Ayala joined in on an attack against Giovanni Sanchez, 14, near the Columbia Heights Metro station in Washington. Giovanni had 11 stab wounds, and witnesses identified Ayala as one of the assailants.
According to evidence presented at trial, Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Md. Enriquez, another fellow MS-13 member, was fatally shot. Evidence presented during trial showed that Machado-Erazao provided the gun and Martinez-Amaya committed the shooting.
This case was prosecuted by Assistant U.S. Attorney Nihar Mohanty of the District of Columbia and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
The case was investigated by ICE-HSI and the MPD. Assistance was provided by the Montgomery County and the Prince George’s County, Md. Police Departments, the State’s Attorney’s Office for Montgomery County, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
Wednesday, August 14, 2013
COLOMBIAN NARCOTICS TRAFFICKER SENTENCED TO 25 YEARS INT PRISON
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, August 5, 2013
Major Colombian Narcotics Trafficker Sentenced in Washington, D.C., to 25 Years in Prison for Drug Trafficking
Christian Fernando Borda, a major narcotics trafficker aligned with paramilitary groups in Colombia, was sentenced today to serve 25 years in prison for conspiring to import ton-quantities of cocaine into the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
Borda, 49, aka “Tony,” was sentenced by U.S. District Judge Gladys Kessler in the District of Columbia. Borda’s sentence included a mandatory minimum prison term of 20 years due to his 1998 conviction in the Southern District of Florida for possession with intent to distribute five kilograms or more of cocaine. In addition to his prison term, Borda was sentenced to serve 10 years of supervised release and ordered to pay a fine of $6.5 million.
“Christian Borda will spend 25 years in prison for leading a massive international drug trafficking operation that conspired to move vast quantities of cocaine into the United States,” said Acting Assistant Attorney General Raman. “The substantial prison term secured against Borda would not have been possible without the extensive cooperation between law enforcement in the U.S. and abroad, and it demonstrates our commitment to holding drug traffickers accountable for their crimes.”
“Our relentless pursuit of justice alongside our Colombian partners has ensured Christian Fernando Borda will be punished for his criminal activities,” said DEA Administrator Leonhart. “For years, Borda operated a massive drug trafficking and money laundering enterprise, which facilitated the AUC’s terrorist activities. This successful investigation demonstrates the strong will and skill of the United States and Colombian governments to rid the world of the most dangerous and ruthless drug traffickers and facilitators.”
Following a trial that lasted almost seven weeks, Borda was convicted by a federal jury on Dec. 9, 2010, of one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that the substances would be unlawfully imported into the United States.
Borda, a Colombian national, led a major international narcotics trafficking organization based in Colombia that transported ton-quantities of cocaine from Colombia to the United States and elsewhere via Mexico. As the leader of this drug trafficking group, Borda obtained large amounts of cocaine from Colombian sources and directed others who took part in the drug trafficking activities. One of their shipments of cocaine in 2005 involved approximately 1,500 kilograms that were smuggled in a containerized shipment of drums of palm oil on a vessel departing from the north coast of Colombia.
The evidence further showed that Borda conspired with others to distribute tons of cocaine in Colombia, Mexico and elsewhere, with the knowledge and intent that the cocaine would be imported into the United States.
Borda was one of seven defendants charged with drug trafficking offenses in an indictment filed on March 16, 2007. He was extradited to the United States from Colombia in October 2009 and was ordered detained in federal custody pending trial.
Borda’s co-defendant, Alvaro Alvaran-Velez, is scheduled to be sentenced on Sept. 3, 2013, before U.S. District Judge Gladys Kessler in the District of Columbia.
The case was prosecuted by Trial Attorneys Paul W. Laymon and Robert J. Raymond of the Criminal Division’s Narcotic and Dangerous Drug Section, and Charles D. Griffith Jr., now of the Criminal Division’s Office of Enforcement Operations. The Criminal Division’s Office of International Affairs provided significant assistance in the provisional arrest and extradition of Borda, and the Criminal Division’s Asset Forfeiture and Money Laundering Section provided assistance at sentencing. The investigation in this case was initiated by the DEA Miami Field Division in approximately 2004. The DEA Houston Field Division conducted a related investigation. Both investigations were conducted with assistance by the DEA's county offices in Cartagena and Bogota, Colombia, Mexico City and Guadalajara, Mexico. The U.S. Coast Guard provided valuable investigative assistance. The investigation also involved unprecedented cooperation from the Colombian National Police and the Colombian Fiscalia.
Monday, August 5, 2013
Major Colombian Narcotics Trafficker Sentenced in Washington, D.C., to 25 Years in Prison for Drug Trafficking
Christian Fernando Borda, a major narcotics trafficker aligned with paramilitary groups in Colombia, was sentenced today to serve 25 years in prison for conspiring to import ton-quantities of cocaine into the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
Borda, 49, aka “Tony,” was sentenced by U.S. District Judge Gladys Kessler in the District of Columbia. Borda’s sentence included a mandatory minimum prison term of 20 years due to his 1998 conviction in the Southern District of Florida for possession with intent to distribute five kilograms or more of cocaine. In addition to his prison term, Borda was sentenced to serve 10 years of supervised release and ordered to pay a fine of $6.5 million.
“Christian Borda will spend 25 years in prison for leading a massive international drug trafficking operation that conspired to move vast quantities of cocaine into the United States,” said Acting Assistant Attorney General Raman. “The substantial prison term secured against Borda would not have been possible without the extensive cooperation between law enforcement in the U.S. and abroad, and it demonstrates our commitment to holding drug traffickers accountable for their crimes.”
“Our relentless pursuit of justice alongside our Colombian partners has ensured Christian Fernando Borda will be punished for his criminal activities,” said DEA Administrator Leonhart. “For years, Borda operated a massive drug trafficking and money laundering enterprise, which facilitated the AUC’s terrorist activities. This successful investigation demonstrates the strong will and skill of the United States and Colombian governments to rid the world of the most dangerous and ruthless drug traffickers and facilitators.”
Following a trial that lasted almost seven weeks, Borda was convicted by a federal jury on Dec. 9, 2010, of one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that the substances would be unlawfully imported into the United States.
Borda, a Colombian national, led a major international narcotics trafficking organization based in Colombia that transported ton-quantities of cocaine from Colombia to the United States and elsewhere via Mexico. As the leader of this drug trafficking group, Borda obtained large amounts of cocaine from Colombian sources and directed others who took part in the drug trafficking activities. One of their shipments of cocaine in 2005 involved approximately 1,500 kilograms that were smuggled in a containerized shipment of drums of palm oil on a vessel departing from the north coast of Colombia.
The evidence further showed that Borda conspired with others to distribute tons of cocaine in Colombia, Mexico and elsewhere, with the knowledge and intent that the cocaine would be imported into the United States.
Borda was one of seven defendants charged with drug trafficking offenses in an indictment filed on March 16, 2007. He was extradited to the United States from Colombia in October 2009 and was ordered detained in federal custody pending trial.
Borda’s co-defendant, Alvaro Alvaran-Velez, is scheduled to be sentenced on Sept. 3, 2013, before U.S. District Judge Gladys Kessler in the District of Columbia.
The case was prosecuted by Trial Attorneys Paul W. Laymon and Robert J. Raymond of the Criminal Division’s Narcotic and Dangerous Drug Section, and Charles D. Griffith Jr., now of the Criminal Division’s Office of Enforcement Operations. The Criminal Division’s Office of International Affairs provided significant assistance in the provisional arrest and extradition of Borda, and the Criminal Division’s Asset Forfeiture and Money Laundering Section provided assistance at sentencing. The investigation in this case was initiated by the DEA Miami Field Division in approximately 2004. The DEA Houston Field Division conducted a related investigation. Both investigations were conducted with assistance by the DEA's county offices in Cartagena and Bogota, Colombia, Mexico City and Guadalajara, Mexico. The U.S. Coast Guard provided valuable investigative assistance. The investigation also involved unprecedented cooperation from the Colombian National Police and the Colombian Fiscalia.
Tuesday, August 13, 2013
MAN SENTENCED IN CALIFORNIA FOR ROLE IN NATIONWIDE FORECLOSURE SCAM
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, August 5, 2013
Former Federal Fugitive Sentenced in California for Nationwide Foreclosure Scam
Collected More Than $1.2 Million from More Than 800 Distressed Homeowners
Glen Alan Ward, 48, a former Los Angeles resident who fled to Canada and was a federal fugitive for 12 years, was sentenced today to serve 132 months in prison for aggravated identity theft and bankruptcy fraud in connection with his leading role in a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Inspector General for the Troubled Asset Relief Program Christy Romero made the announcement.
Ward was sentenced by U.S. District Judge Dale S. Fischer in the Central District of California. In addition to his prison term, Ward was sentenced to serve three years of supervised release and ordered to pay approximately $60,000 in restitution.
Ward pleaded guilty on April 8, 2013, in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud. In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme. In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco. On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there. While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 on his guilty plea to 61 months in custody for engaging in similar conduct.
On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.
According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy.
Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years. In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.
As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country. During that same period, Ward admitted to collecting from his clients who paid for his illegal foreclosure-delay services more than $1.2 million.
The investigation was conducted by the Office of the Special Inspector General for the Troubled Asset Relief Program and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Office of International Affairs of the Department of Justice, Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.
This case was prosecuted by Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California with assistance from the Criminal Division’s Fraud Section. Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.
Monday, August 5, 2013
Former Federal Fugitive Sentenced in California for Nationwide Foreclosure Scam
Collected More Than $1.2 Million from More Than 800 Distressed Homeowners
Glen Alan Ward, 48, a former Los Angeles resident who fled to Canada and was a federal fugitive for 12 years, was sentenced today to serve 132 months in prison for aggravated identity theft and bankruptcy fraud in connection with his leading role in a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Inspector General for the Troubled Asset Relief Program Christy Romero made the announcement.
Ward was sentenced by U.S. District Judge Dale S. Fischer in the Central District of California. In addition to his prison term, Ward was sentenced to serve three years of supervised release and ordered to pay approximately $60,000 in restitution.
Ward pleaded guilty on April 8, 2013, in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud. In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme. In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco. On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there. While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 on his guilty plea to 61 months in custody for engaging in similar conduct.
On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.
According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy.
Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years. In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.
As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country. During that same period, Ward admitted to collecting from his clients who paid for his illegal foreclosure-delay services more than $1.2 million.
The investigation was conducted by the Office of the Special Inspector General for the Troubled Asset Relief Program and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Office of International Affairs of the Department of Justice, Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.
This case was prosecuted by Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California with assistance from the Criminal Division’s Fraud Section. Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.
Monday, August 12, 2013
TAX PREPARER WITH TOO MANY REFUNDS SHUT DOWN
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, July 31, 2013
Justice Department Shuts Down Indiana Tax Preparer
The Justice Department announced that yesterday, a federal district judge in Indianapolis permanently barred Cynthia Hawk, who operates Gain Tax Services, from preparing federal income tax returns for others. Hawk consented to the entry of this injunction.
The government’s complaint alleged that Hawk prepared at least 1,501 returns from 2009 through 2012, and that returns Hawk prepared claimed refunds at an unusually high percentage, ranging from 96 to 99 percent during these years. The government alleged that Hawk failed to comply with due-diligence requirements imposed by federal law on tax preparers who claim the earned income tax credit (EITC) on customers’ income tax returns. Because Hawk failed to comply with these due-diligence requirements, in 2011 she was penalized by the Internal Revenue Service (IRS) . When the IRS performed a follow-up investigation in 2012, as it routinely does, the complaint alleged that it again found ongoing failures and fraudulent claims by Hawk.
The complaint also alleged that Hawk claimed education credits on her customers’ tax returns, when the customers did not actually have any qualifying education expenses. Hawk also allegedly falsified customers’ income in order to claim the maximum EITC for them.
The complaint alleged that Hawk’s repeated conduct of preparing returns that understated her customers’ liabilities based on bogus credits or fabricated income or deductions was sufficient for the court to prohibit her from preparing federal tax returns.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters.
Wednesday, July 31, 2013
Justice Department Shuts Down Indiana Tax Preparer
The Justice Department announced that yesterday, a federal district judge in Indianapolis permanently barred Cynthia Hawk, who operates Gain Tax Services, from preparing federal income tax returns for others. Hawk consented to the entry of this injunction.
The government’s complaint alleged that Hawk prepared at least 1,501 returns from 2009 through 2012, and that returns Hawk prepared claimed refunds at an unusually high percentage, ranging from 96 to 99 percent during these years. The government alleged that Hawk failed to comply with due-diligence requirements imposed by federal law on tax preparers who claim the earned income tax credit (EITC) on customers’ income tax returns. Because Hawk failed to comply with these due-diligence requirements, in 2011 she was penalized by the Internal Revenue Service (IRS) . When the IRS performed a follow-up investigation in 2012, as it routinely does, the complaint alleged that it again found ongoing failures and fraudulent claims by Hawk.
The complaint also alleged that Hawk claimed education credits on her customers’ tax returns, when the customers did not actually have any qualifying education expenses. Hawk also allegedly falsified customers’ income in order to claim the maximum EITC for them.
The complaint alleged that Hawk’s repeated conduct of preparing returns that understated her customers’ liabilities based on bogus credits or fabricated income or deductions was sufficient for the court to prohibit her from preparing federal tax returns.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters.
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