Wednesday, June 4, 2014

New York Man Admits Role in International $200 Million Credit Card Fraud Conspiracy

TRENTON, NJ—A New York man today admitted his role in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.
Khawaja Ikram, 41, of Staten Island, New York, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud. Two co-defendants, Tarsem Lal, 73, of Iselin, New Jersey, and Azhar Ikram, 40, of Howard Beach, New York, pleaded guilty before Judge Thompson in Trenton on April 2, 2014, to informations charging them with conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Khawaja Ikram was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and finally, run up large loans.
The scope of the criminal fraud enterprise required Ikram and his conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments, and post office boxes, which they used as the mailing addresses of the false identities.
Ikram admitted he helped obtain credit cards in the name of third parties—many of which were fictional—and then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted he knew the cards would be used fraudulently at businesses.
The charge to which Ikram pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for September 23, 2014. Azhar Ikram and Lal are scheduled to be sentenced September 17, 2014.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford; postal inspectors, under the direction of Postal Inspector in Charge Maria L. Kelokates; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, for the investigation leading to today’s guilty plea. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.

Trenton Mayor Sentenced to 58 Months in Prison on Federal Extortion, Bribery, and Mail and Wire Fraud Charges

TRENTON, NJ—Trenton Mayor Tony F. Mack was sentenced today to 58 months in prison after being convicted at trial in February on all six federal extortion, bribery, and mail and wire fraud charges against him, U.S. Attorney Paul J. Fishman announced.
Mack’s brother, Ralphiel Mack, who was also convicted on three of the charges but found not guilty on three mail fraud and wire fraud counts, was sentenced to 30 months in prison. The Macks had been convicted following a five-week trial before U.S. District Judge Michael A. Shipp, who imposed the sentences today in Trenton federal court.
The Macks were charged in connection with a scheme to accept $119,000 in bribes in exchange for Mayor Mack’s official actions and influence in assisting cooperating witnesses in the development of an automated parking garage on city-owned land.
“Nearly four years ago, Tony Mack raised his hand and swore to uphold the state and federal constitutions as he assumed the office of mayor of the capital city of New Jersey,” U.S. Attorney Fishman said. “Within 10 weeks, he began selling that office and, with the help of his brother and others, he sold out the people of Trenton in the process. Today, he learned the true cost of his actions: He will spend 58 months in federal prison.”
“Instead of providing transparent government to the citizens of Trenton, Tony Mack and his brother allowed themselves to succumb to self-interest and greed,” FBI Special Agent in Charge Aaron T. Ford said. “This investigation brought to light the unsavory underworld of secret meetings with convicted felons, the calculated use of ‘buffers’ and bagmen, and bribe payments associated with inside deals to give away the city’s treasures, its property. The citizens of Trenton are entitled to political figures who discharge their duties with goodness of heart and not those motivated by personal gain.”
Tony F. Mack, 48, and Ralphiel Mack, 41, both of Trenton, originally were charged by complaint on September 10, 2012, with one count of conspiracy to obstruct commerce by extortion under color of official right related to the $119,000 extortion scheme. Also charged at that time was Joseph A. Giorgianni, 64, of Ewing, New Jersey. An indictment returned in December 2012 added charges against all three defendants.
Giorgianni pleaded guilty on December 13, 2013, to one count of conspiring with the Macks and others to obstruct interstate commerce by extorting individuals under color of official right, in addition to a separate extortion scheme, a narcotics charge and illegal weapons possession, all charges unrelated to the Macks.
Mayor Mack was convicted of the six counts charged in the indictment:
  • Conspiracy to obstruct and affect interstate commerce by extortion under color of official right
  • Attempted obstruction of commerce by extortion under the color of official right
  • Accepting and agreeing to accept bribes
  • Two counts of wire fraud
  • Mail fraud
Ralphiel Mack was convicted on the same first three counts and found not guilty of the mail and wire fraud charges. The jury members deliberated for seven hours before returning their verdicts.
According to documents filed in this case and the evidence presented at trial:
Tony Mack, Giorgianni, and Ralphiel Mack conspired to accept approximately $119,000 in cash and other valuables, of which $54,000 was accepted and another $65,000 that the defendants planned to accept from two cooperating witnesses (CW-1 and CW-2). In exchange for the payments, Tony Mack agreed to and did assist CW-1 and CW-2 in their efforts to acquire a city-owned lot (East State Street Lot) to develop an automated parking garage (the Parking Garage Project). The scheme included a plan to divert $100,000 of the purchase amount that CW-2 had indicated a willingness to pay to the city of Trenton for the lot as a bribe and kickback payment to Giorgianni and Tony Mack. The mayor authorized and directed a Trenton official responsible for disposition of city-owned land to offer the East State Street Lot to CW-2 for $100,000, significantly less than the amount originally proposed by CW-2.
The defendants went to great lengths to conceal their corrupt activity to keep Tony Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Tony Mack’s benefit. Tony Mack also used another city of Trenton employee involved in the scheme, Charles Hall, III, 49, of Trenton, to contact other Trenton officials to facilitate the Parking Garage Project and to inform the mayor when Giorgianni had received corrupt cash payments. Hall pleaded guilty before Judge Shipp in February 2013 to an information charging him with one count of conspiracy to obstruct commerce by extortion under color of official right and one count of conspiring to distribute narcotics with others, including Giorgianni.
To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases. One such code word was “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Tony Mack that a corrupt payment had been received. For example, on October 29, 2011, Giorgianni telephoned Hall and informed him that Giorgianni had to “see” Tony Mack and that “I got Uncle Remus for him,” meaning a corrupt cash payment that Giorgianni had received from CW-1 two days earlier. Giorgianni directed Hall to bring Tony Mack to a meeting location controlled by Giorgianni (Giorgianni’s Clubhouse), stating “we gotta talk” because “I got something that might be good for him” and that “they’ve already come with Uncle Remus,” meaning a corrupt cash payment. On June 13, 2012, Giorgianni telephoned Tony Mack and informed him that “Uncle Remus,” meaning a corrupt cash payment, “was there.” Tony Mack replied, “I’ll call you, J. Okay?” In text messages to Tony Mack related to the scheme, Giorgianni would refer to himself as “Mr. Baker.”
The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including at Giorgianni’s residence, a restaurant maintained by Giorgianni known as JoJo’s Steakhouse, Giorgianni’s Clubhouse, and Atlantic City restaurants. At one Atlantic City meeting among Tony Mack, Giorgianni, Hall, and CW-2, Tony Mack instructed Giorgianni to ensure that no photographs were taken in order to conceal the corrupt arrangement.
In addition to the prison terms, Judge Shipp sentenced Tony Mack to three years of supervised release, 100 hours of community service, and fined him $3,000. He sentenced Ralphiel Mack to three years of supervised release and fined him $1,500.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.

Former Bank Officer Sentenced to 18 Months in Prison for Accepting Bribes, Bank Fraud

CAMDEN, NJ—A former bank officer was sentenced today to 18 months in prison for accepting bribes of more than $50,000 in return for his assistance in corrupt financial transactions, as well as bank fraud, U.S. Attorney Paul J. Fishman announced.
Jose Dominguez, 47, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with soliciting and accepting bribes in excess of $1,000 as a bank officer. He had also pleaded guilty to a separate indictment charging him with bank fraud and conspiracy to commit bank fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From January 1988 to February 2007, Dominguez was employed as a loan officer at Spencer Savings Bank in Elmwood Park, New Jersey. From September 2004 to November 2004, Dominguez and Victor Patela, 38, a former Newark Police officer, conspired to fraudulently obtain a $1.92 million commercial loan from Spencer Savings Bank so that they could purchase apartment buildings in Elizabeth, New Jersey. In connection with this scheme, Dominguez and Patela made false representations to Spencer Savings Bank relating to Patela’s assets in order to obtain the commercial loan. Dominguez also accepted bribe payments from Patela in exchange for using his influence as a loan officer to obtain the $1.92 million loan. In June 2012, Patela was convicted at trial of bank fraud, conspiracy to commit bank fraud, two counts of loan application fraud, and bank bribery and sentenced in April 2013 to 48 months in prison.
In 2003, Dominguez was contacted by a bank customer who wanted to refinance some loans with Spencer Savings Bank and wanted to do so without paying significant prepayment penalty fees. Dominguez advised the customer that if the customer made corrupt payments to Dominguez, the customer could obtain a lower interest rate without paying a prepayment penalty to Spencer Savings Bank.
Between August 2003 and December 2003, Dominguez accepted $55,529.57 in corrupt payments from the customer to influence the requested loan modification. Dominguez also admitted to accepting additional bribes from other bank customers in the amounts of $4,500 and $5,000, respectively.
In addition to the prison term, Judge Hillman sentenced Dominguez to three years of supervised release and fined him $4,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

Two Men Admit Roles in Armed Robbery of New Jersey Target Store on Black Friday 2012

TRENTON, NJ—Two New Jersey men admitted this week to participating in an armed robbery of a Target Store in Union, New Jersey, on Black Friday in November 2012, U.S. Attorney Paul J. Fishman announced today.
Maryland Liggins, III, 29, of Newark, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with conspiracy to commit a Hobbs Act robbery. On May 20, 2014, Darrell A. Carter, 24, of Irvington, New Jersey, pleaded guilty before Judge Thompson to an information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence.
Carter, Liggins and two other men—Lavell Jones, 28, of East Orange, New Jersey, and DaQuaan Vaughn, 36, of Newark—were arrested on June 19, 2013, and charged by complaint in connection with the Target robbery. On April 29, 2013, a federal grand jury returned an indictment against Jones and Vaughn charging both men with one count of Hobbs Act robbery and charging Vaughn with one count of using a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
On November 23, 2012, Carter and Liggins allegedly participated in an armed robbery of the Target store on Springfield Avenue in Union on Black Friday—the day after Thanksgiving—which is considered to be one of the busiest shopping days of the year. Carter and Vaughn allegedly entered the store and robbed the store’s employees at gunpoint and Liggins served as the getaway driver. Jones allegedly posed as a shopper and served as a lookout inside the store.
While in the store, Carter and Vaughn restrained Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe located in the cash room. The two men then fled the store and ran out to a vehicle driven by Liggins that was parked on the shoulder of nearby Route 78.
The charge of Hobbs Act robbery is punishable by a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. Each of these counts also carries a maximum fine of $250,000. Sentencing for Liggins is scheduled for September 25, 2014; sentencing for Carter is scheduled for September 24, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton and Assistant U.S. Attorney Jonathan Romankow, acting deputy chief of the U.S. Attorney’s Office General Crimes Unit.

New Jersey Pharmacist Admits Attempting to Weaponize Deadly Toxins and Possessing Narcotics Manufacturing Equipment

WASHINGTON—A licensed pharmacist pleaded guilty in federal court today to attempting to develop, produce, and possess the potentially deadly toxins ricin and abrin for use as weapons and to possessing equipment for producing illegal narcotics, New Jersey U.S. Attorney Paul J. Fishman announced.
Jordan S. Gonzalez, 34, of New York and formerly of Jersey City, New Jersey, entered his guilty plea before U.S. District Judge Mary L. Cooper in Trenton federal court.
“Jordan Gonzalez admitted today that he worked to manufacture and deploy deadly toxins, stockpiled weapons and body armor, and acquired manuals training him for violent confrontation,” said U.S. Attorney Fishman. “We all have seen the devastation possible when these behaviors go unchecked. With today’s guilty plea, Jordan Gonzalez will face justice and will not be a threat to society.”
“The overriding focus of the FBI’s WMD Directorate and the primary focus of our overall efforts is prevention,” said FBI Newark Division Special Agent in Charge Aaron T. Ford. “To make this happen, we pull together various resources from the FBI and work closely with our law enforcement partners. In this case, the FBI worked swiftly and tirelessly with our partners to prevent and neutralize all threats posed by this defendant.”
Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said, “The men and women of DEA are dedicated to protecting the citizens of this nation. This investigation reveals how DEA and its law enforcement partners worked together to prevent Mr. Gonzalez from doing harm to the citizens of our communities.”
According documents filed in this case and statements made in court:
From September 18, 2011 through March 19, 2013, Gonzalez purchased thousands of seeds containing ricin and abrin and materials to extract and administer those toxins to others, including filtering equipment, respirators, glass vials, a spraying device, and projectile weapons including a crossbow pistol. Gonzalez also purchased materials for making RDX, an explosive compound used in military and commercial demolition applications. Gonzalez made the purchases through an online third-party vendor marketplace, and all the items were delivered to him at his Jersey City apartment.
Gonzalez learned how to extract toxins from the seeds and about deployment methods from manuals he acquired. He also kept manuals teaching how to make improvised explosive devices and synthesize explosive compounds, including RDX.
On November 8, 2013, while living in New York, Gonzalez purchased one kilogram of sodium azide, a toxic, gas-forming compound that can explode at high temperatures and is lethal if ingested or absorbed through the skin. Law enforcement officers intercepted the delivery during the investigation.
On November 14, 2013, Gonzalez was arrested in Jersey City, and search warrants were executed at three locations he used: apartments in Manhattan and Jersey City and a storage unit in Jersey City. Collectively, material collected through the searches included thousands of seeds containing ricin and abrin; explosive precursor chemicals; manuals related to toxins, explosives, and improvised explosive devices; approximately one thousand rounds of ammunition, handguns, components for assault rifles, and high-capacity magazines; a bulletproof vest; and books and documents related to the collapse of social order and techniques for surviving in a lawless environment. Gonzalez has been in custody since his arrest.
Even small doses of ricin and abrin are potentially lethal to humans if ingested, inhaled, or injected—causing death within 36 to 72 hours from the time of exposure.
During his guilty plea, Gonzalez admitted that acquiring this knowledge and these materials were substantial steps toward developing ricin and abrin as weapons and that he acquired all the materials—including the firearms, ammunition, and body armor—in anticipation of using them in confrontations with other people in the future.
Gonzalez also acquired manuals for synthesizing controlled substances, including methylenedioxyamphetamine (MDA) and methylenedioxymethamphetamine (MDMA), also known as Ecstasy. He bought and had delivered to the Jersey City apartment a three-neck round-bottom flask, gel capsules, and an encapsulating machine, as well as precursor chemicals used in the manufacture of MDA and MDMA. Possession of that type of flask is prohibited if intended for use in the manufacturing of controlled substances.
The toxin charge to which Gonzalez pleaded guilty carries a maximum potential penalty of any term of years or life in prison and a $250,000 fine. The narcotics charge carries a maximum potential penalty of four years in prison and a $250,000 fine. Sentencing is currently scheduled for September 17, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, and the DEA, under the direction of Special Agent in Charge Kotowski in New Jersey, with the investigation leading to today’s plea. He also thanked members of FBI Newark’s Joint Terrorism Task Force; FBI’s New York Office and Weapons of Mass Destruction Directorate Laboratory Division; DEA’s New York Division; and the New Jersey Office of Homeland Security and Preparedness for their work on the case, as well as the police and fire departments of Jersey City and the city of New York, as well as the New Jersey State Police for their assistance.
The government is represented by Assistant U.S. Attorney L. Judson Welle of the U.S. Attorney’s Office National Security Unit and Assistant U.S. Attorney Francisco J. Navarro of the Office’s Criminal Division, both in Newark. Valuable support was provided by attorneys of the Department of Justice’s National Security Division-Counterterrorism Section.

Jersey City Police Officer Pleads Guilty to Transportation of Stolen Goods and Extortion

TRENTON, NJ—A Jersey City, New Jersey police officer today admitted stealing more than half a million cigarettes from a trailer and extorting $20,000 from a drug courier who turned out to be an undercover FBI agent, U.S. Attorney Paul J. Fishman announced.
Mario Rodriguez, 39, of Jersey City, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with transportation of stolen goods and extortion under color of official right.
According to documents filed in the case and statements made in court:
On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, New Jersey to break into a trailer, steal cigarettes, and sell the stolen goods to the CI’s associate. Law enforcement agents had previously parked the trailer at the warehouse and established surveillance of the area.
After using bolt-cutters to cut the lock off of the trailer, Rodriguez and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, New York, Rodriguez made several phone calls seeking buyers for the TVs.
The pair met the CI’s associate—actually an undercover officer—in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.
On July 10, 2013, Rodriguez, the CI and an undercover law enforcement agent met in New Jersey and discussed the possibility of robbing a drug courier, who was actually another undercover officer. On July 24, 2013, the group met again in Staten Island to discuss the plan. The undercover officer told Rodriguez the courier would be delivering cocaine to them that day in exchange for a $20,000 payment. Rodriguez suggested a Jersey City mall parking lot due to an absence of surveillance cameras and called his associate, Anthony Roman, 48, of Jersey City, who was not a law enforcement officer, to help him with the robbery. Roman was charged with one count of Hobbs Act extortion.
Later that day, Rodriguez and Roman drove an SUV to the location where the CI and the drug courier were parked. Law enforcement agents had already established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman approached the car and identified themselves as law enforcement officers who were investigating the CI. They pretended to arrest the CI, threatened to arrest the drug courier and took the cash.
Later that day, Rodriguez, the CI and the undercover agent met in a hotel room at a Pennsylvania casino to split the cash.
The cargo theft and conspiracy to commit extortion charges to which Rodriguez pleaded guilty carry a maximum potential penalty of 10 and 20 years in prison, respectively. Both counts also carry a maximum fine of $250,000. Sentencing is scheduled for September 26, 2014. Rodriguez has been suspended from the police department.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to today’s plea. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.
The government is represented by Acting Deputy Chief of the General Crimes Unit Jonathan W. Romankow in Newark.
The charges against Roman remain pending. They are merely accusations, and he remains innocent unless and until proven guilty.

Member of Largest Counterfeit Goods Conspiracy Ever Charged Sentenced to 46 Months in Prison

NEWARK—A member of a massive, international counterfeit goods conspiracy was sentenced today to 46 months in prison for his role in the scheme, U.S. Attorney Paul J. Fishman announced.
Ming Zheng, a/k/a “Uncle Mi,” 48, of New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with a conspiracy to launder money. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From November 2009 through February 2012, Zheng’s co-defendants ran one of the largest counterfeit goods smuggling and distribution conspiracies ever charged by the Department of Justice. The defendants and others conspired to import hundreds of containers of counterfeit goods—primarily handbags, footwear, and perfume—from China into the United States in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.
Zheng was a money launderer who was introduced to undercover special agents (collectively, the UCs) by co-defendants who were running the counterfeiting operation. Conspirators obtained cash from the UCs, purportedly the proceeds of gambling and other unlawful activities. These other conspirators then provided the money to Zheng. For every $50,000 in cash the UCs provided, Zheng and others would return approximately $42,500—via wire transfers from banks in China—into a bank account set up by the UCs. When other conspirators received money from the UCs to be laundered, one of the conspirators would then contact Zheng, who in turn contacted a Chinese-based conspirator, and transferred the money to locations in China. Then the money (less the laundering fee) was transferred from Fujian, China, to a bank in Guangzho, China, where it was subsequently withdrawn and physically transported via courier to a bank in Hong Kong. The final transfer was from the bank in Hong Kong to the UCs’ bank account. Zheng was therefore instrumental in each of the money laundering transactions—he received the cash from other conspirators and caused it to be transferred overseas in furtherance of the laundering process.
U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Andrew M. McLees, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.

Monday, May 5, 2014

California Fugitive Captured in Cleveland

A murder suspect on the run from police in Fresno, California is behind bars today. The Cleveland Violent Crime Task Force found fugitive Craig Foster hiding in a Cleveland apartment. Foster, a 44-year-old violent gang member from California, was wanted for the shooting death of a young California mother and the attempted murder of her husband.
Foster is accused of shooting 28-year-old Janee Tatum in the head and shooting her husband, Herman Tatum, twice. Herman Tatum survived, but Janee Tatum died a few days later. The victims were gunned down in a Fresno bar in March. Fresno police stated Foster tried to “pick up” Janee Tatum, which led to an argument between Herman Tatum and Foster. The Tatums have no gang ties.
A joint investigation between the Fresno Police, Sacramento FBI, and Las Vegas FBI tracked Foster to Cleveland. Foster was arrested on warrants for murder, attempted murder and unlawful flight to avoid prosecution. Foster is being held in the Cuyahoga County Jail and is expected to have an extradition hearing on Monday.
The Cleveland Violent Crime Task Force is composed of law enforcement officers from the FBI, Cleveland Police Department, Cuyahoga County Sheriff’s Office, and the Cuyahoga Metropolitan Housing Authority.

Former Columbus Police Detective Sentenced to 57 Months in Prison for Drug Crime

COLUMBUS—Former Columbus Police Detective Stevie Billups, 48, of Columbus, was sentenced to serve 57 months in prison for crimes he committed through his involvement with a local drug dealer.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI); Karen Huey, Director of Enforcement for the Ohio Casino Control Commission; and Columbus Police Chief Kim Jacobs announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Judge Graham also fined Billups $10,000 and ordered him to serve three years of supervised release after he completes his prison sentence.
Billups pleaded guilty on November 22, 2013, to one count of attempted possession with intent to distribute heroin. According to a document the government filed with the court prior to today’s sentencing, in 2013 Billups provided armed protection for two transactions involving drugs while he was a Columbus Police officer.
Billups began his relationship with a drug dealer when Billups began laundering money for the drug dealer by cashing in chips which helped the drug dealer avoid transaction reporting requirements at the Hollywood Casino in Columbus.
According to court documents, Billups asked the drug dealer to “get him in the game.” Billups’ query led to the June 28th and July 17th drug stings by the FBI, whereby Billups protected the drug dealer in the pickup of purported drug money. He later provided protection for the drug dealer during a transaction which Billups believed involved the distribution of heroin. Billups provided protection during the second transaction while he was on duty, armed with his service weapon, and in a Columbus Division of Police unmarked detective vehicle. Billups received a total of $5,000 in exchange for providing protection to the drug dealer during these transactions.
“Public confidence in our police to ‘do the right thing’ is undermined with each case of police corruption,” Assistant U.S. Attorney Doug Squires told the court. “It is a police officer’s duty to uphold the law and protect the public....Billups’ intent to aid and further the problems that heroin has brought to our communities for his own profit indicates the serious nature of this offense.”
“Using a police officer’s badge and gun to commit crime is a particularly disturbing threat to the community,” stated SAC Kevin Cornelius. “This case highlights the fact that local, state, and federal agencies are working together to root out corruption and bring to justice those who betray the public’s trust.”
“Ohio Casino Control Commission and its gaming agents are committed to working with our federal and local law enforcement partners to investigate criminal activity occurring at the casinos,” said Karen Huey. “The Commission will not tolerate money laundering or drug dealing at any of Ohio’s casinos.”
U.S. Attorney Stewart praised the cooperative investigation by the Ohio Casino Control Commission and the FBI’s Central Ohio Public Corruption Task Force, which includes agents from the FBI and the Ohio Bureau of Criminal Investigation (BCI).
Mr. Stewart commended the Columbus Division of Police and Police Chief Kim Jacobs for the cooperation they provided during the course of this investigation and thanked the Homeland Security Investigations Bulk Cash Smuggling Task Force for helping initiate this investigation. The Bulk Cash Smuggling Task Force includes agents with Homeland Security Investigations and detectives with the Columbus Police Department, Franklin County Sheriff’s Office and the Ohio State Highway Patrol. Stewart also acknowledged Assistant United States Attorneys Doug Squires and David DeVillers, who prosecuted the case.

Buffalo Man Pleads Guilty to Bank Robbery

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Michael Tynes, 54, of Buffalo, New York, pleaded guilty to bank robbery before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 20 years in prison, a 250,000 fine or both.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, Tynes robbed two M&T Banks:
  • On August 7, 2013, the defendant entered M&T Bank, located at 133 Jefferson Avenue, Buffalo, and passed the teller a demand note stating: “This is a stick up. Give me 30. $100.00 bills. And 40. $50.00 bills. No dye packs. I have a crew outside. If I am not out of here in 4 min, they will come in. Do not sound alarm.” The teller gave Tynes an amount of money.
  • On September 11, 2013, the defendant entered M&T Bank, located at 1300 Jefferson Avenue in Buffalo and passed the teller a demand note stating: “Fast. This is a stick up. No dye packs. I have a crew outside. Don’t sound alarm. 30. $100.00 dollar bills 40. $50.00 dollar bills. FAST!” The teller gave Tynes an amount of money.
The plea is the culmination of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 15, 2014 at 12:30 p.m.

Buffalo Man Pleads Guilty to Clean Air Act Violation Related to the Kensington Towers Project

BUFFALO, NY—U.S. Attorney William J. Hochul announced today that Rai Johnson, 35, of Buffalo, New York, pleaded guilty before U.S. District Court Judge Richard J. Arcara to violating the Clean Air Act asbestos work practice standards. The charge carries a maximum penalty of five years in prison, a fine of $250,000, or both.
“Today’s conviction means that all defendants who worked directly on the Kensington Towers asbestos removal project—and who intentionally violated federal environmental laws while doing so—have now been brought to justice,” said U.S. Attorney Hochul. “This office will not permit any company or person—including public officials—to jeopardize the health and well being of the community through their violation of federal law.”
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was a supervisor at Johnson Contracting of WNY, Inc., an asbestos abatement company that was hired to conduct asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex, located at 1827 Fillmore Avenue in Buffalo. In a pre-abatement asbestos survey, each building at Kensington Towers was found to contain 63,000 square feet of regulated asbestos-containing material. The asbestos abatement project lasted from June 2009 to January 2010
During the asbestos abatement of building A-1, Johnson and employees working under his direction violated the Clean Air Act asbestos work practice standards by: (i) failing to adequately wet regulated asbestos during stripping and removal operations; (ii) failing to ensure that regulated asbestos remained wetted until placed in leak-tight containers; and (iii) causing regulated asbestos to be dropped down holes cut through the floors in Building A-1.
Rai Johnson is the sixth defendant to plead guilty as part of the Kensington Towers asbestos abatement project. Ernest Johnson and JMD project monitors Evan Harnden, Chris Coseglia, Henry Hawkins, and Brian Scott have also been convicted. Charges are still pending against current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants are expected to go on trial May 13, 2014. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of special agents of the U.S. Environmental Protection Agency-Criminal Investigation Division, under the direction of Acting Special Agent in Charge, Vernesa Jones-Allen; special agents of the Federal Bureau of Investigation; special agents of the U.S. Department of Housing and Urban Development-Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.
Sentencing is scheduled for August 18, 2014, 2014 at 1:00 p.m. before Judge Arcara.

Jamaican Man Sentenced for Role in Greece Triple Murder and for Assaulting Federal Jail Guards

ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that Andrew Wright, 44, a citizen of Jamaica, was sentenced to four consecutive life terms, plus five years, by U.S. District Judge Charles J. Siragusa for participating in a large, multi-state marijuana distribution conspiracy and murdering three men in furtherance of that conspiracy in the Town of Greece in March, 2010.
“Today’s sentencing brings to a successful conclusion a very violent and tragic episode in our community,” said U.S. Attorney Hochul. “These defendants will never again inflict further violence on the residents of Western New York. This case is also a great example of the cooperative efforts of our office working closely with our law enforcement partners at all levels. We will continue to pursue members of other violent criminal organizations with the same vigor until such gangs are no more.”
In December, 2013, a jury convicted Wright and his two co-defendants, Richard Anderson and Aston Johnson, of murdering Robert Moncriffe, Mark Wisdom, and Christopher Green in Greece on March 9, 2010. The evidence presented by the government at trial established that in the days prior to March 9, the defendants traveled to Rochester from Phoenix, Arizona and planned the murders. The evidence also showed that Anderson, Johnson, and Wright targeted the victims because they believed Moncriffe, Wisdom, and Green were cheating them out of proceeds from the sale of marijuana. The defendants went to the apartment in Greece, where the three victims lived. They bound and gagged Christopher Green and waited for Moncriffe and Wisdom to arrive home. Once they arrived, the defendants shot the three men to death at the same time.
In a separate case, Wright was also sentenced for assaulting two federal guards at the Buffalo Federal Detention Facility in Batavia, New York. A jury convicted Wright of these assaults in May 2011, but sentencing had been postponed pending the outcome of the triple homicide and marijuana distribution case. Judge Siragusa sentenced Wright to 20 years on each of the two counts of assaulting the federal guards, such sentences to run concurrent to each other but consecutive to the life terms.
In addition to sentencing the defendant to life in prison, Judge Siragusa also imposed a $1,000,000 forfeiture judgment against defendant Wright, as well as the forfeiture of three guns seized at the house in Phoenix, Arizona.
Co-defendants Richard Anderson and Aston Johnson had been previously sentenced on March 11, 2014, to life sentences.
Today’s sentencing is the result of an investigation conducted by the Greece Police Department. under the direction of then-Chief Todd Baxter and current Chief Patrick Phelan; the Federal Bureau of Investigation; the New York State Police, under the direction of Major Mark Koss; the Rochester Police Department, under the direction of Chief Michael Ciminelli; the U.S. Marshals Service, under the direction of Marshal Charles Salina; the Monroe County Sheriff’s Department, under the direction Sheriff Patrick O’Flynn; the Monroe County Crime Analysis Center; the U.S. Postal Inspection Service, Boston Division, under the direction of Acting Inspector in Charge, Shelly A. Binkowski; the U.S. Immigration and Customs Enforcement, under the direction of Special Agent in Charge James C. Spero; the U.S. Border Patrol, under the direction of Patrol Agent in Charge Tom Pocorobba, Jr.; the New York/New Jersey High Intensity Drug Trafficking area; the Franklin County, Ohio Sheriff’s Department; the Arizona Department of Public Safety; and the Los Angeles Police Department.
The investigation of the assault of the two federal guards in Batavia was handled by Immigration and Customs Enforcement-Enforcement and Removal Operations, under the direction of Field Office Director, Michael T. Phillips.

Georgia Man Pleads Guilty to Wire Fraud

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Rodney Walker, 44, of Atlanta, Georgia, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to wire fraud. The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that the defendant created an investment loan scheme which resulted in $175,000 in financial losses to an investment company located in the Western District of New York. Walker represented to the victim investment company that he and a co-conspirator could obtain a standby letter of credit from banks outside the United States. The defendant assured representatives of the investment company that he could monetize the stand by letter of credit which would provide the investment company with $100 million dollars in loans. As part of the scheme, Walker required the investment company to provide him with $175,000 which would purportedly cover the costs associated with the financial transaction. The investment company provided the funds but instead of using the money to obtain financing, the defendant and his co-conspirator used the funds for their own purposes.
The plea was the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation.
Sentencing is scheduled for August 19, 2014 at 12:00 p.m. before Judge Arcara.

Tinmouth Man Sentenced to 37 Months for Heroin Trafficking

The Office of the United States Attorney for the District of Vermont stated that yesterday Alan H. Willis, II, of Tinmouth, was sentenced by Chief United States District Judge Christina Reiss to 37 months’ imprisonment on his guilty plea to a charge of conspiracy to distribute 100 grams or more of heroin. Chief Judge Reiss also ordered that Willis serve two years on supervised release after his incarceration ends. Willis has been detained since his arraignment.
According to court documents, Willis trafficked between 700 and 1000 grams of heroin in the Rutland area from summer 2012 to February 2013. In late January 2013, the Vermont Drug Task Force (VDTF) used a confidential informant to make two controlled purchases of heroin from Willis, the first at his home and the second in the parking lot of Rutland’s Diamond Run Mall. On February 4, 2013, the VDTF and several other agencies executed a search warrant at Willis’ residence, seizing 1,500 bags of heroin and $4,800 in cash.
Originally charged in Rutland Superior Court by the Vermont Attorney General’s Office, Willis was first indicted by a federal grand jury on April 24, 2013, leading to dismissal of the state charges. On July 24, 2013, based on a joint investigation by the VDTF, the Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI), the grand jury returned a superseding indictment expanding the temporal scope of the conspiracy and charging Joshua Rose, 21; Devon Cruz, 29; Charles Hercules, 23, all of New York; Evan Murphy, 23, and Jean Marie Phillips, 47, both of Rutland, along with Willis, as conspirators. On January 24, 2014, Phillips entered a guilty plea to a charge of aiding and abetting Rose’s possession with intent to distribute heroin. She is scheduled for sentencing on May 9, 2014. Today, Murphy entered a guilty plea to the conspiracy charge in the superseding indictment. Murphy is scheduled for sentencing on August 26, 2014. Rose, Cruz, and Hercules are awaiting trial.
United States Attorney Coffin commended the joint investigation by the VDTF, DEA and FBI and thanked the Vermont Attorney General’s Office for its cooperation. Rutland attorney Elizabeth Mann represented Willis. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.

Alleged Serial Bank Robber Arrested After Morning Robbery of Bank in Colonia

NEWARK, NJ—A man allegedly responsible for a three-county New Jersey bank robbery spree faces a federal charge today following his arrest yesterday, May 1, 2014, after the rush hour robbery of a Rahway Savings Institute in Colonia, U.S. Attorney Paul J. Fishman announced.
Jason Novello, 35, of Elizabeth, New Jersey, is charged by complaint with one count of bank robbery in connection with the Colonia theft. He made his initial appearance today before U.S. Judge James B. Clark, III in Newark federal court and was detained.
According to the complaint filed today and statements made in court:
At approximately 9:05 a.m. on May 1, 2014, Novello entered the Rahway Savings Institute in Colonia, approached a bank teller, and held up a note claiming he had a gun and demanding money. The teller gave the cash to Novello, including two “bait bills” from which the serial numbers had been pre-recorded by the bank.
A bank employee followed Novello out of the bank and noted the license plate of the blue Hyundai Elantra in which Novello fled. Law enforcement officers were able to track the car’s registration to an address where they waited for Novello. FBI agents arrested him when he showed up in the Hyundai.
Including the latest Colonia robbery with which he is charged, the complaint alleges Novello committed nine robberies in the nine months from August 2013 to May 2014, hitting two of the banks—in Colonia and Elizabeth—twice each:
  • May 1, 2014 - Rahway Savings Institute, Colonia
  • April 28, 2014 - PNC Bank, Scotch Plains
  • March 22, 2014 - Rahway Savings Institute, Colonia
  • March 8, 2014 - Capital One Bank, Iselin
  • March 1, 2014 - PNC Bank, Edison
  • January 25, 2014 - Capital One Bank, North Plainfield
  • December 7, 2013 - PNC Bank, Fanwood
  • October 30, 2013 - Investors Savings Bank, Elizabeth
  • August 30, 2013 - Investors Savings Bank, Elizabeth
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and thanked the Middlesex and Somerset County Prosecutors’ Offices, as well as the Woodbridge, Edison, North Plainfield, Fanwood, Scotch Plains, and Elizabeth Police Departments for their work.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Assistant Federal Public Defender Carol Gillen Esq., Newark

Tuesday, April 22, 2014

Kenmore Man Pleads Guilty to Gun Charge

BUFFALO, NY—U.S. Attorney William J. Hochul announced today that Marlon Johnson, Jr., 25, of Kenmore, New York, who was convicted of possession of a firearm by a convicted felon, was sentenced to 48 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Anthony M. Bruce, who handled the case, stated that on December 16, 2011, Buffalo Police responded to a call on Emerson Street. As officers approached the area, the defendant ran from the area and a foot chase ensued. Johnson was taken into custody inside a residence on Glenwood Avenue. Officers searched a garbage tote next to the door of the residence and found a loaded .380 caliber semi-automatic pistol with a defaced serial number. The defendant later admitted that he stole the gun from another individual.
Today’s development is the latest in a continuing series of actions aimed at the Bailey Boys Gang allegedly operating in the city of Buffalo. A total of 10 alleged members and associates of the Bailey Boys have been indicted on racketeering charges, which include multiple murders, attempted murders, robberies, and narcotics trafficking. Authorities believe that Johnson, the subject of today’s sentencing, in fact was a criminal associate of the Bailey Boys.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon; and the Federal Bureau of Investigation’s Safe Streets Task Force.

Cell Phone Store Robber Sentenced to 116 Years

A 29-year-old Detroit man was sentenced today in federal court to 116 years in prison for his role in six cellular telephone store robberies, U.S. Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement was Paul M. Abbate, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Office.
U.S. District Judge Sean F. Cox imposed sentence on Timothy Ivory Carpenter, who was convicted after a two-week jury trial in December. The jury found Carpenter guilty of committing six robberies of cell phone stores and of using a gun during five of the robberies. The evidence at trial established that Carpenter and his brother, Timothy Sanders, conspired with others to rob cell phone stores in Detroit, Highland Park, Eastpointe, and Warren, Ohio between December 13, 2010 and December 1, 2012.
“Armed robberies at neighborhood stores make citizens fearful to carry out their daily business in our community,” McQuade said. “This lengthy sentence sends a powerful message that using guns to commit crimes will not be tolerated.”
“Aggressively pursuing violent offenders, particularly those associated with organized criminal groups, is among the highest priorities of the FBI,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Today’s sentence, along with others seen recently, sends a strong message to violent perpetrators whose actions wreak havoc upon our community—the FBI, our local, state, and federal partners and the U.S. Attorney’s Office will work tirelessly to combat violent crime and bring justice to bear on these offenders.”
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Kenneth Chadwell.

Guilty Verdict Reached in Bank Robbery Trial


Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the conviction today of Walter Butler, Jr., aged 45, of Gainesville, Georgia, of bank robbery. Orlando Brock, aged 43, of Hartwell, Georgia, was found guilty of armed bank robbery and brandishing a firearm during a crime of violence. The guilty verdicts were handed down following a four-day trial before the Honorable C. Ashley Royal, Chief United States District Court Judge, in Athens, Georgia.
Evidence presented at trial showed that on Thursday, September 22, 2011, at approximately 2:40 p.m., Allen Colbert, a/k/a “Juicy,” and Juan Vladimir Camp entered the North Georgia Credit Union in Lavonia, Georgia. Both men carried firearms; one of them brandished a firearm. Both men wore gloves and covers over their heads. The pair forced the tellers to hand over approximately $310,000 and then sprayed them with pepper spray. After stealing the money, both Mr. Butler and Mr. Colbert left the scene in a truck driven by Mr. Butler. Orlando Brock planned the robbery, supplied the firearms, and dropped Mr. Colbert and Mr. Camp off at the bank that day.
Mr. Colbert and Mr. Camp entered guilty pleas to their part in the robbery on March 20, 2013. The court has set their sentencing hearing for May 27, 2014, in Athens, Georgia.
Mr. Butler faces a maximum sentence of 20 years’ imprisonment, a maximum fine of $250,000, or both. Mr. Brock, Mr. Colbert and Mr. Camp face a maximum sentence of 25 years’ imprisonment, a maximum fine of $250,000, or both. Mr. Brock faces an additional minimum mandatory sentence of seven years up to a maximum sentence of life, a maximum fine of $250,000, or both on the firearm charges. The court will set a sentencing date for Mr. Butler and Mr. Brock following the completion of a pre-sentence investigation and report.
“This case is a fine example of a cooperative investigation by the federal, state, and local authorities. These defendants face lengthy terms of imprisonment without parole as the result of their violent criminal activity,” stated U.S. Attorney Michael Moore.
“The GBI is committed to working with our local and federal law enforcement partners to insure those who commit crimes such as this are brought to justice,” said GBI Director Vernon Keenan.
The case was investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Franklin County Sheriff’s Office, and Lavonia Police Department. Assistant United States Attorneys Graham Thorpe and Sonja Profit prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.

Two Winter Garden Men Convicted at Trial

ORLANDO—United States Attorney A. Lee Bentley, III announces that yesterday a federal jury found Linell Devon Lowe (22) and Latavis Deyonta Mackroy (20) guilty of conspiracy to commit a Hobbs Act robbery and the brandishing of a firearm during the commission of the robbery. Both men face a maximum penalty of 20 years’ imprisonment for the robbery, plus a mandatory minimum, consecutive sentence of seven years, up to life in prison, on the firearm offense. A sentencing hearing is scheduled for July 28, 2014.
Lowe and Mackroy were indicted on December 11, 2013. A third person, who acted as lookout during the robbery, pleaded guilty on February 24, 2014.
According to the testimony and evidence presented at trial, on May 23, 2013, Lowe and Mackroy, armed with a firearm and a hammer, robbed the Value Pawn and Jewelry located at 2200 E. Semoran Boulevard, in Apopka, Florida. During the course of the robbery, they made death threats and intimidated two employees and a customer. Mackroy repeatedly hit a customer with a hammer and then stole approximately 100 pieces of gold and diamond jewelry, while Lowe pointed a gun at the manager and stole the cash from the registers.
This case was investigated by Federal Bureau of Investigation and the Apopka Police Department, with assistance from both the Winter Garden Police and Orlando Police Departments. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.

Mastermind of Violent Robbery Crew Convicted of Robbery Murder and Weapons Charges

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce today that Terrance Brown, 41, of Miami, was convicted of Hobbs Act robbery, two counts of attempted Hobbs Act robbery, and three counts of possession of a firearm in furtherance of a crime of violence.
According to the indictment and evidence presented at trial, Brown was the mastermind of a seven-man robbery crew that conspired in 2010 to rob armored Brinks trucks. In July 2010, the crew planned to rob a Brinks truck at a Bank of America in Lighthouse Point. However, that robbery did not occur because the Brinks truck did not arrive at the bank at the time that the crew planned to rob it. In September 2010, the crew attempted to rob another Brinks truck at a Bank of America in Miramar. That robbery also did not occur because a police vehicle drove through the bank parking lot just prior to the planned robbery, causing members of the crew to run from the scene. Finally, in October 2010, the crew returned to the same Bank of America in Miramar to once again rob the Brinks guard as he was delivering currency to the bank. During that robbery, the gunman fatally shot the guard in the head while Brown and his accomplices acted as lookouts. The gunman was arrested at the scene and one year later pleaded guilty and was sentenced to life in prison. Thereafter, in July 2013, a jury convicted Brown and three other co-defendants of several charges, including conspiracy to commit Hobbs Act robbery. However, the jury was unable to reach a unanimous verdict on several other charges, which resulted in a retrial for the charges for which defendant Brown was just convicted.
U.S. Attorney Wifredo A. Ferrer stated, “We are gratified that the jury reached a unanimous verdict finding Terrance Brown guilty of robbery murder and related weapons charges. Brown was the mastermind of a violent robbery crew that resulted in the senseless murder of a Brinks guard. Today our community can sleep sounder knowing that Brown is off our streets and that justice has been served.”
“Terrance Brown is a violent and greedy criminal who was bent on hitting armored truck couriers during their deliveries,” said George L. Piro, Special Agent in Charge, FBI Miami. “In July 2010, Brown and his robbery crew fatally shot a Brinks guard during the course of his duties. For this brutal and cowardly act, Brown is now being held accountable.”
Sentencing for Brown is scheduled for July 1, 2014, before U.S. District Judge Robin S. Rosenbaum in Ft. Lauderdale. Brown faces a maximum sentence of life in prison.
Mr. Ferrer commended the FBI’s Violent Crime Task Force, the Broward County Sheriff’s Office, the Miramar Police Department, the Lighthouse Point Police Department, and the Coconut Creek Police Department for their excellent work on this matter. This case was prosecuted by Assistant U.S. Attorneys Mark Dispoto, Marc Anton, and Michael Gilfarb.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls.

Miami Resident Sentenced to 81 Months in IRS Fraudulent Refund Scheme

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Daniel C. Alexander, Chief, Boca Raton Police Department, announce today that Brandon James, of Miami, was sentenced by U.S. District Judge Daniel T.K. Hurley to 81 months in prison, followed by two years of supervised release. James was also ordered to pay restitution in the amount of $382,444 and a special assessment of $300.
According to court documents and statements made in court, James was involved in cashing out fraudulent federal income tax refunds that had been placed electronically onto debit cards. James and his co-conspirators, Laron Larkin and Eric Fussell, attempted to defraud the IRS of more than $862,000 in fraudulent income tax refunds based on at least 121 stolen identities. The IRS paid approximately $382,484 on these refund requests.
James pled guilty earlier to conspiracy to steal government monies, in violation of Title 18, United States Code, Section 371 (count one), theft of government funds, in violation of Title 18, United States Code, Section 641 (count four), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A (count nine).
Co-defendant Larkin was sentenced on October 7, 2013, to 36 months and one day in prison, to be followed by three years of supervised release. Larkin pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, and the Boca Raton Police Department. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.

Jury Convicts Former GMAC and Countrywide Loan Officer and Former New York Corrections Officer on Mortgage Fraud Charges

NEW HAVEN, CT—A federal jury has convicted two men for their roles in an extensive mortgage fraud scheme arising from the fraudulent purchases of more than 40 properties in New Haven, U.S. Attorney Paul J. Fishman, District of New Jersey, announced today.
Andrew Constantinou, of Unionville, Connecticut, and Jacques Kelly, of Poughkeepsie, New York, were convicted on April 18, 2014, of all counts charged in the indictment following a three-week trial before Chief U.S. District Judge Janet C. Hall. The jury found both men guilty of conspiracy to commit mail, wire, and bank fraud. The jury also found Kelly guilty of one count of wire fraud and one count of making a false statement to a financial institution.
According to documents filed in this case and the evidence at trial:
From 2006 to 2008, Constantinou, Kelly, and others, including Menachem Yosef Levitin, Ronald Hutchison, Charles Lesser, Jeffrey Weisman, Genevieve Salvatore, Bradford Rieger, Lawrence Dressler, and Kwame Nkrumah, conspired to defraud mortgage lenders of millions of dollars of mortgage proceeds by inflating the contract price that the sellers of the properties had actually agreed to accept. The scheme involved multi-family properties in New Haven.
The lower sale price, which ranged from approximately $30,000 to $145,000 less than the contract price, was not disclosed to the lenders from which the buyers obtained financing to purchase the properties. In most of the fraudulent transactions, the buyers did not make any deposits or down payments. Constantinou, Kelly, and their conspirators used some of the fraudulently obtained mortgage proceeds to cover the down payments and deposits. At or shortly after a closing, the borrowers would often receive thousands to tens of thousands of dollars in cash back, although these payments were not disclosed to the lender.
Constantinou, Kelly, and their conspirators submitted to mortgage lenders false HUD-1 forms that often did not match another, undisclosed HUD-1 form that was actually used to disburse the fraudulently obtained proceeds at the closing. As a result of the submission of the false HUD-1 forms and other false documentation in support of the loan, including fictitious leases and false information about the borrower’s assets and liabilities, the mortgage lenders would issue mortgages based on the inflated sales price.
Constantinou, 57, was a loan officer at GMAC Mortgage from 2006 to 2007 and at Countrywide Home Loans from 2007 to 2008. He submitted and received commissions from fraudulent loans as part of the scheme without disclosing the existence of inflated contract prices, secret contract addenda that contained large repair credits, false leases, and other false documentation. Constantinou worked with an unindicted conspirator, who was a licensed mortgage broker, to originate additional loans as part of the conspiracy.
Kelly, 48, was a corrections officer for the Westchester County Department of Corrections in New York. From December 2006 to May 2007, Kelly purchased eight multi-family properties in New Haven and attempted to purchase a ninth property. He paid no money to purchase the properties and received more than $56,000 from his closings. Kelly also made a fraudulent sale of a New Haven property he owned to conspirator Hutchison in September 2006 but for which Hutchison paid no money at closing.
Nearly all the properties purchased as part of this conspiracy went into default and have been foreclosed upon, causing losses of more than $7 million to lenders.
Constantinou faces a maximum potential penalty of 30 years in prison; his sentencing is scheduled for July 15, 2014. He has been free on bond since February 25, 2013. Kelly faces a maximum potential penalty of 30 years for conspiracy, 20 years for wire fraud, and 30 years for making a false statement; his sentencing is scheduled for July 14, 2014. Kelly has been free on bond since October 6, 2011.
Ten defendants have been charged and convicted for their participation in this mortgage fraud conspiracy, including two loan officers, four attorneys, and a real estate agent. Salvatore, Rieger, Dressler, and Nkrumah have previously been sentenced. Levitin, Hutchison, Lesser, and Weisman each await sentencing.
U.S. Attorney Fishman credited the FBI, the U.S. Postal Inspection Service, the U.S. Department of Housing and Urban Development-Office of Inspector General, and the Federal Housing Finance Agency-Office of Inspector General, which identified multiple Fannie Mae and Freddie Mac loans that went into foreclosure, for the investigation leading to the guilty verdicts.
The government is represented in the criminal cases by Assistant U.S. Attorney David T. Huang and Special Assistant U.S. Attorney John McReynolds of the U.S. Attorney’s Office, District of Connecticut; the parallel civil forfeiture cases are being handled by Assistant U.S. Attorney Julie G. Turbert, U.S. Attorney’s Office, District of Connecticut. The U.S. Attorney for the District of New Jersey has been overseeing the case because of the recusal of the U.S. Attorney’s Office for the District of Connecticut.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

Bay Area Man Pleads Guilty to Securities Fraud by Insider Trading in The Walt Disney Company’s Acquisition of Marvel Entertainment in August 2009

LOS ANGELES—A San Francisco man who made approximately $192,000 in profits by purchasing Marvel Entertainment Inc. stock options immediately prior to its acquisition by The Walt Disney Company in August 2009 pleaded guilty this morning to a federal securities fraud charge.
Toby G. Scammell, 29, pleaded guilty today to one count of securities fraud before United States District Judge S. James Otero.
According to a plea agreement filed in federal court, Scammell learned that Disney planned to acquire another company “that people would recognize right away” from his then-girlfriend, who was an extern at Disney in the summer of 2009 and who worked on the deal to acquire Marvel. Scammell later learned from a supervisor at his then-employer—which had periodically provided corporate consulting services to Disney and had confidentiality obligations to Disney—that Disney had previously been interested in acquiring Marvel. Scammell admitted that he learned the planned acquisition by Disney was estimated to close by Labor Day 2009, based on his observations of his girlfriend’s work schedule at Disney and their own travel plans at the time.
Scammell used the information that he learned from his girlfriend to acquire 659 call options to purchase Marvel stock for $5,465. He purchased more than half the options in his brother’s account. Scammell did not tell his girlfriend or his brother about the purchases of the Marvel call options.
Marvel’s stock rose approximately 25 percent after the deal with Disney was announced on August 31, 2009. After the acquisition was publicly disclosed by Disney, Scammell immediately sold his options, realizing more than $192,000 in profits. Scammell transferred $100,000 of the profits out of his brother’s account to conceal the trading and profits from his brother.
As a result of the guilty plea, Scammell faces a maximum statutory sentence of 25 years in federal prison when he is sentenced by Judge Otero on July 28, 2014.
Today’s guilty plea resolves a case filed in October 2013 when a federal grand jury returned an indictment that named Scammell.
Scammell was previously charged with securities fraud by the Securities and Exchange Commission in a civil lawsuit filed in August 2011. He was later ordered to disgorge his trading profits and pay civil penalties and interest totaling $800,985 in that case.
This case was investigated by the Federal Bureau of Investigation, which received assistance from the Securities and Exchange Commission.

Wednesday, April 16, 2014

Newport News Man Pleads Guilty to Participating in Murder

NEWPORT NEWS, VA—Mustafah Kalil Muhammad, 27, of Newport News, Virginia, pleaded guilty today use of a firearm resulting in the death of Lloyd Robinson on January 8, 2010.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office; and Richard W. Meyers, Chief of Newport News Police, made the announcement after the plea was accepted by United States District Judge Raymond A. Jackson.
Muhammad was charged, along with others, in a superseding indictment returned in July 2013 with interference with commerce by robbery and use of a firearm resulting in death.
Muhammad faces a maximum penalty of life in prison when he is sentenced on July 23, 2014, in Norfolk.
Muhammad is alleged to be part of a criminal organization known locally as Thug Relations, alternatively known as the Duct, “Warwick Lawnz, TR,” and from the Duct to the Lawnz, a neighborhood gang operating in the Aqueduct Apartments, St. Michael’s Apartments, Mariner’s Landing Apartments, and Heritage Trace Apartments, as well as Warwick Lawns, Warwick Town Home, Sharon Drive, and the Savage Drive areas of Newport News, Virginia. The alleged gang members are accused in the indictment of protecting their criminal enterprise and activities through murder, attempted murder, witness intimidation, robbery, and narcotics distribution. In a statement of facts filed with his plea agreement, Muhammad admitted to his participation in the drug related home invasion and murder of Lloyd Robinson on January 8, 2010.
This investigation was led by FBI and the Safe Streets Task Force, with assistance from the Newport News Police and the Virginia State Police. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel and Special Assistant United States Attorney Jonathan A. Ophardt are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.

Utah Man Charged with Federal Hate Crime for Threatening Interracial Family

WASHINGTON—The Department of Justice announced today that an information was filed charging Robert Keller, 70, with interfering with the housing rights of three members of an interracial family because of the family members’ races and because the family members were living in Hurricane, Utah.
Keller has been charged with two counts of criminal interference with a right to fair housing. More specifically, the information alleges that Keller wrote a note to two Caucasian family members of an interracial family threatening to kill them if they did not make their African-American family member leave their home and the community. The first count alleges that Keller’s threats interfered with the housing rights of the Caucasian residents to associate in their home with their African-American family member, and the second count alleges that Keller’s threats interfered with the African-American resident’s right to occupy the home.
If convicted, Keller faces a statutory maximum penalty of one year in prison on each count.
This case is being investigated by the Salt Lake City Division of the FBI in cooperation with the Hurricane City Police Department. It is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant U.S. Attorney Carlos Esqueda for the District of Utah.
An information is merely an accusation, and the defendant is presumed innocent unless proven guilty.

San Antonio Businessmen Sentenced to Federal Prison for Fraud and Tax Scheme Involving More Than $130 Million in Real-Dollar Losses

n San Antonio this morning, United States Chief District Judge Fred Biery handed down prison sentences to two individuals for their roles in what is believed to be the largest real-dollar loss fraud and tax related case ever prosecuted in the Western District of Texas, announced United States Attorney Robert Pitman, Acting FBI Special Agent in Charge Aaron C. Rouse, and IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
Larry Kimes, the manager of AccounTex Financial Services LLC, was sentenced to 12 years in federal prison, followed by three years of supervised release, and ordered to pay $132 million restitution after pleading guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge last month.
Charles Pircher, manager of a series of Professional Employer Organizations (PEOs) based in San Antonio, including service professionals, was sentenced to 11 years in federal prison, followed by three years of supervised release, and ordered to pay $132 million restitution after pleading guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge in November 2013.
“The sentencing of so-called ‘white-collar’ defendants to significant terms of imprisonment such as the judge imposed in this case today should send a strong message to those who concoct fraudulent schemes—schemes that result in real losses to real people,” stated United States Attorney Robert Pitman.
In February, three other individuals who also entered guilty pleas in connection with this fraudulent scheme were sentenced to federal prison by Judge Biery. John Bean, owner of Synergy Personnel, a PEO based in San Antonio, as well as an agent, representative, officer, license holder, and accountant of several San Antonio- and Austin-based PEOs, including Service Professionals; Pat Mire, owner and manager of several San Antonio-based PEOs, including Service Professionals; and Mike Solis, an executive assistant at several San Antonio based PEOs, including Service Professionals, were sentenced to six years, three years, and three years in federal prison, respectively.
By pleading guilty, the defendants admitted that between 2002 and 2008, they participated in a scheme in which they stole more than $130 million from the clients of a series of PEOs operated by the defendants. The PEOs entered into staff leasing agreements with various client companies to manage the companies’ payroll and insurance programs. Kimes, Pircher, and the other co-conspirators diverted to their own use and benefit clients’ monies that should have been paid for payroll taxes and insurance premiums.
“The defendants involved in this, the largest-ever single criminal tax case in San Antonio’s history, knowingly violated our country’s tax laws. They chose to ignore their responsibilities and live a lavish lifestyle on money belonging to their employees and to the U.S. government. IRS special agents will continue to aggressively pursue these types of very serious tax crimes,” stated IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
“Motivated by greed, the defendants perpetrated an extensive fraud scheme designed to steal money from their clients and taxpayers over a number of years. The FBI will continue to work with our partners to identify, investigate, and prosecute others, like the defendants, who seek unjust enrichment by victimizing others,” stated FBI Acting Special Agent in Charge Aaron C. Rouse.
This case was investigated by agents with the Federal Bureau of Investigation and the Internal Revenue Service- Criminal Investigation. Assistant United States Attorney Thomas J. McHugh prosecuted this case on behalf of the government.

Austin-Area Man Sentenced to Federal Prison for a String of Robberies

In Austin today, 52-year-old Randall David Reed of Dripping Springs, Texas, was sentenced to 15 years in federal prison for six robberies, including five banks and one grocery store, and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse.
In addition to the prison term, United States District Judge Lee Yeakel ordered that Reed pay restitution totaling $32,430 and be placed under supervised release for a period of three years after completing his prison term.
On February 5, 2014, Reed pleaded guilty to five counts of bank robbery, one count of violating the Hobbs Act (robbery that affects interstate commerce) and the firearm charge. According to court records, Reed admitted that he committed the following robberies:
  • February 28, 2013—Randalls grocery store (2000 block of West Ben White Blvd. in Austin)—$3,000
  • March 25, 2013—Pioneer Bank (100 block of Wonder World Dr. in San Marcos)—$8,312
  • May 3, 2013—Prosperity Bank (12000 block of Research Blvd. in Austin)—$2,200
  • May 21, 2013—Northstar Bank (1500 block of West 35th St. in Austin)—$3,552
  • July 3, 2013—Broadway Bank (13400 block of U.S. Hwy 281 in San Antonio)—$1,500
  • July 26, 2013—Benchmark Bank (1500 block of West 35th St. in Austin)—$13,866
Furthermore, Reed admitted to carrying a handgun during all the robberies and even brandishing a handgun during the July 26, 2013 robbery.
This case was investigated by agents with the Federal Bureau of Investigation and the police departments from Austin, San Marcos, and San Antonio. Assistant United States Attorney Matthew B. Devlin prosecuted this case on behalf of the government.