NORFOLK, VA—Enrique Omar Hinton, a.k.a. “Rico,” 26, of Newport News, pleaded guilty today to racketeering conspiracy, as well as possessing and discharging a firearm in furtherance of a crime of violence.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; David A. O’Neil, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Tommy E. Miller.
Hinton was charged in a superseding indictment returned on December 9, 2013, with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, possessing and discharging a firearm in furtherance of a crime of violence, and conspiracy to distribute and possess with intent to distribute marijuana. Hinton faces a maximum penalty of 20 years in prison on the racketeering conspiracy charge and a mandatory consecutive sentence of te10n years to life in prison on the firearm charge when he is sentenced on June 26, 2014, in Norfolk.
In a statement of facts filed with his plea agreement, Hinton admitted that he was a member of a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones, which operated as a criminal enterprise located primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News. The Black P-Stones engaged in various criminal activities including murders, robberies, illegal drug trafficking, and obstruction of justice. Hinton joined the gang in approximately 2005 and held the rank of “foot soldier.” As a foot soldier, Hinton sold marijuana for the gang, possessed firearms, attended gang meetings, and planned and participated in the gang’s criminal activities. On December 10, 2008, Hinton and co-conspirators participated in a shooting in Williamsburg to retaliate against a rival gang member who exhibited disrespect toward a co-conspirator’s girlfriend. During the shooting, approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the home’s living room and front door while two people were inside. Hinton further admitted that on July 13, 2009, he testified falsely before a federal grand jury for the purpose of obstructing the grand jury’s investigation of the Black P-Stones and the December 10, 2008 shooting in which he and co-conspirators participated.
The investigation of this case was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department and the James City County Police Department. Assistant United States Attorney Eric M. Hurt and Trial Attorney Louis A. Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division 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.
Monday, March 31, 2014
Houston Man Convicted of Making Hoax Bomb Threat
HOUSTON—Cody Matthew Tackett, 23, has entered a plea of guilty to a criminal information charging him with making a hoax bomb threat, announced United States Attorney Kenneth Magidson.
Tackett has admitted he willfully sent a false threatening communication through an instrument of interstate commerce to the University of St. Thomas-Houston concerning an attempt to unlawfully damage real property by means of an explosive. Specifically, on November 20, 2013, he sent an e-mail to school officials stating that there was a bomb on the campus.
U.S. District Judge Ewing Werlein, Jr., who accepted the plea, has permitted Tackett to remain on bond pending sentencing, scheduled for June 20, 2014. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine.
FBI investigated the case, which is being prosecuted by Assistant United States Attorney Craig Feazel.
Tackett has admitted he willfully sent a false threatening communication through an instrument of interstate commerce to the University of St. Thomas-Houston concerning an attempt to unlawfully damage real property by means of an explosive. Specifically, on November 20, 2013, he sent an e-mail to school officials stating that there was a bomb on the campus.
U.S. District Judge Ewing Werlein, Jr., who accepted the plea, has permitted Tackett to remain on bond pending sentencing, scheduled for June 20, 2014. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine.
FBI investigated the case, which is being prosecuted by Assistant United States Attorney Craig Feazel.
Katy Man Charged with Multiple Crimes, Including Possession of Explosive Materials
HOUSTON—Robert James Talbot Jr., 38, has been arrested and charged by criminal complaint alleging attempted interference with commerce by robbery, solicitation to commit a crime of violence, and possession of an explosive material, specifically, Composition 4 (C-4), announced United States Attorney Kenneth Magidson along with Special Agent in Charge Stephen L. Morris of the FBI.
Talbot, formerly of Batavia, New York, and now a resident of Katy, was arrested yesterday following an eight-month undercover investigation by the FBI Joint Terrorism Task Force (JTTF). He is expected to make an initial appearance before U.S. Magistrate Judge Frances Stacy today at 10:00 a.m. or 2:00 p.m., at which time the U.S. expects to request his detention pending further criminal proceedings.
According to the complaint filed late yesterday, Talbot espoused his desire to recruit five to six other like-minded individuals to blow up government buildings, rob banks, and kill law enforcement officers. Talbot allegedly created a Facebook page titled American Insurgent Movement (AIM). The complaint alleges he described that page as:
“a Pre-Constitutionalist Community that offers those who seek True patriotism and are looking for absolute Freedom by doing the Will of God. Who want to restore America Pre-Constitutionally and look forward to stopping the Regime with action by bloodshed.”
The criminal complaint further alleges Talbot made several postings on the page between January 30, 2014 and February 9, 2014, seeking people interested in “walking away from your life…to stop the regime.”
On March 15, 2014, Talbot allegedly posted again to the page:
“In a few weeks me and my team are goin active for Operation Liberty....I will not be able to post no more. We will be the revolution, things will happen nation wide or in the states. They will call us many names and spin things around on media. Just remember we fight to stop Marxism, liberalism, Central banking Cartels, and the New World Order. I will try to find someone to take over this community page, but most of the guys who are admins are part of my unit. I will have a website up in 2 months....The funding is unlimited since the banking cartel will be forced to fund our movements.”
The complaint alleges that on March 20, 2014, Talbot conducted surveillance of multiple financial institutions in the Northwest Houston area, monitoring the movements of people entering and exiting the banks. Talbot also allegedly followed an armored car, watching how personnel exited the vehicle and whether the carrier was picking up or dropping off bags.
On March 22, 2014, Talbot sent $500 as a down payment for the explosive devices he had requested, according to the complaint.
Two days later, Talbot allegedly claimed to have quit his job and was preparing for an upcoming armored car robbery. On March 27, 2014, Talbot and others met at a storage facility in Houston with the intent to conduct an armor car robbery that morning, according to allegations. Talbot allegedly provided detailed maps of the target financial institution as well as escape routes in order to quickly evade law enforcement. The complaint further alleges he placed two explosive devices made of C-4 into his black backpack and allegedly stated he would place the explosive device on the vehicle. He further instructed the group how to block the armor car with their vehicle to prevent it from leaving the location and provided a “manifesto” that was read to the group. “We must rebel. There is no other option no. Blood and bullets are the only two things that will change this world, short of divine action.”
While en route to conduct the armored car robbery, Talbot was arrested and taken into custody by the FBI Houston Division Special Weapons and Tactics team.
If convicted, he faces up to a maximum penalty of 20 years’ imprisonment and a possible $250,000 fine for the attempted robbery, as well as another 10 years’ imprisonment and $100,000 fine for each of the remaining charges.
This case was investigated by the FBI’s JTTF, which includes personnel from the FBI; U.S. Coast Guard Investigative Service; U.S. Department of State; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Secret Service;, Houston and Houston Metro Police Departments; and the Harris County Sheriff’s Office. Assistant United States Attorneys Carolyn Ferko and Jim McAlister are prosecuting.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Talbot, formerly of Batavia, New York, and now a resident of Katy, was arrested yesterday following an eight-month undercover investigation by the FBI Joint Terrorism Task Force (JTTF). He is expected to make an initial appearance before U.S. Magistrate Judge Frances Stacy today at 10:00 a.m. or 2:00 p.m., at which time the U.S. expects to request his detention pending further criminal proceedings.
According to the complaint filed late yesterday, Talbot espoused his desire to recruit five to six other like-minded individuals to blow up government buildings, rob banks, and kill law enforcement officers. Talbot allegedly created a Facebook page titled American Insurgent Movement (AIM). The complaint alleges he described that page as:
“a Pre-Constitutionalist Community that offers those who seek True patriotism and are looking for absolute Freedom by doing the Will of God. Who want to restore America Pre-Constitutionally and look forward to stopping the Regime with action by bloodshed.”
The criminal complaint further alleges Talbot made several postings on the page between January 30, 2014 and February 9, 2014, seeking people interested in “walking away from your life…to stop the regime.”
On March 15, 2014, Talbot allegedly posted again to the page:
“In a few weeks me and my team are goin active for Operation Liberty....I will not be able to post no more. We will be the revolution, things will happen nation wide or in the states. They will call us many names and spin things around on media. Just remember we fight to stop Marxism, liberalism, Central banking Cartels, and the New World Order. I will try to find someone to take over this community page, but most of the guys who are admins are part of my unit. I will have a website up in 2 months....The funding is unlimited since the banking cartel will be forced to fund our movements.”
The complaint alleges that on March 20, 2014, Talbot conducted surveillance of multiple financial institutions in the Northwest Houston area, monitoring the movements of people entering and exiting the banks. Talbot also allegedly followed an armored car, watching how personnel exited the vehicle and whether the carrier was picking up or dropping off bags.
On March 22, 2014, Talbot sent $500 as a down payment for the explosive devices he had requested, according to the complaint.
Two days later, Talbot allegedly claimed to have quit his job and was preparing for an upcoming armored car robbery. On March 27, 2014, Talbot and others met at a storage facility in Houston with the intent to conduct an armor car robbery that morning, according to allegations. Talbot allegedly provided detailed maps of the target financial institution as well as escape routes in order to quickly evade law enforcement. The complaint further alleges he placed two explosive devices made of C-4 into his black backpack and allegedly stated he would place the explosive device on the vehicle. He further instructed the group how to block the armor car with their vehicle to prevent it from leaving the location and provided a “manifesto” that was read to the group. “We must rebel. There is no other option no. Blood and bullets are the only two things that will change this world, short of divine action.”
While en route to conduct the armored car robbery, Talbot was arrested and taken into custody by the FBI Houston Division Special Weapons and Tactics team.
If convicted, he faces up to a maximum penalty of 20 years’ imprisonment and a possible $250,000 fine for the attempted robbery, as well as another 10 years’ imprisonment and $100,000 fine for each of the remaining charges.
This case was investigated by the FBI’s JTTF, which includes personnel from the FBI; U.S. Coast Guard Investigative Service; U.S. Department of State; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Secret Service;, Houston and Houston Metro Police Departments; and the Harris County Sheriff’s Office. Assistant United States Attorneys Carolyn Ferko and Jim McAlister are prosecuting.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Members of Cocaine Trafficking Organization Indicted on Federal Charges
MARTINSBURG, WV—A large drug trafficking organization was disrupted as a result of a 73-count federal indictment charging cocaine trafficking and money laundering.
United States Attorney William J. Ihlenfeld, II, who announced the charges on Monday in Wheeling, said that the lead defendant in the case is Cedric Malachi Jones, also known as “BG,” 32 years old, of Palm Coast, Florida. Jones is charged with conspiracy to distribute cocaine and cocaine base, conspiracy to launder monetary instruments, money laundering, distribution of cocaine and cocaine base, distribution of cocaine and cocaine base within 1,000 feet of a protected location, and possession with intent to distribute cocaine.
Jones is alleged to be the leader of a group that caused controlled substances to be transported from other parts of the country to Keyser, West Virginia, for redistribution. Jones is also alleged to have laundered money that was generated as a result of the drug trafficking. Jones faces a total of 58 counts.
Others named in the indictment include:
This prosecution of this case is being handled by Assistant United States Attorney Jarod J. Douglas. It was investigated by the Potomac Highlands Drug & Violent Crime Task Force, which consists of officers from the Federal Bureau of Investigation and the West Virginia State Police-Bureau of Criminal Investigations.
United States Attorney William J. Ihlenfeld, II, who announced the charges on Monday in Wheeling, said that the lead defendant in the case is Cedric Malachi Jones, also known as “BG,” 32 years old, of Palm Coast, Florida. Jones is charged with conspiracy to distribute cocaine and cocaine base, conspiracy to launder monetary instruments, money laundering, distribution of cocaine and cocaine base, distribution of cocaine and cocaine base within 1,000 feet of a protected location, and possession with intent to distribute cocaine.
Jones is alleged to be the leader of a group that caused controlled substances to be transported from other parts of the country to Keyser, West Virginia, for redistribution. Jones is also alleged to have laundered money that was generated as a result of the drug trafficking. Jones faces a total of 58 counts.
Others named in the indictment include:
- Ebony Ishia Haynes Jack, age 32, of Palm Coast, Florid
- Patrice Dominique Stephens a/k/a “Everett Backstreets,” 34, of Westernport, Maryland
- Paul Harland Ellis, 35, of Keyser, West Virginia
- Tequila L. Smith, 32, of Ranson, West Virginia
- Dixie Sherylann Layman, 40, of Keyser, West Virginia
- Sheena Collins, 26, of Oakland, Maryland
- Travis Sinclair Howard, 34, of Palatka, Florida
- Samaria Alice Clifford, 32, of Keyser, West Virginia
- Robert Lee Jessie, 34, of Keyser, West Virginia
- Christopher Lee Redman, 30, of Keyser, West Virginia
- Adrian Nicholas Sanchez a/k/a “ACE,” 30, of Cumberland, Maryland
- Troy Aaron Wilt, 30, of Keyser, West Virginia
This prosecution of this case is being handled by Assistant United States Attorney Jarod J. Douglas. It was investigated by the Potomac Highlands Drug & Violent Crime Task Force, which consists of officers from the Federal Bureau of Investigation and the West Virginia State Police-Bureau of Criminal Investigations.
Facing the Cyber Threat
The following opinion piece, published on March 28, 2014, on cleveland.com, was written by FBI Cleveland Special Agent in Charge Stephen D. Anthony. It is scheduled to be printed in the Sunday, March 30, 2014 edition of The Cleveland Plain Dealer.
The Internet touches everything and everyone. For that reason, it has also provided the means for hostile foreign nations, hackers for hire, and criminal syndicates to steal our personal information, intellectual property, technology, and state secrets. Terrorists may seek to strike our critical infrastructure and our economy.
As FBI Director James Comey told Congress last year, we expect threats posed by cyber crime attacks to surpass threats posed by terrorists as our top national security threat.
We here in Northeast Ohio—with our concentration of manufacturers, world-class hospitals, and research universities—are not immune to the threat.
Given the scope of this threat, we in the FBI are working side-by-side with our partners, including the U.S. Department of Homeland Security and the Department of Defense.
We are targeting high-level intrusions—the biggest and most dangerous botnets, state-sponsored attacks, and global cyber rings. FBI agents, analysts, and computer scientists combine technical skills and traditional investigative techniques—including sources and court-authorized interception of communications, surveillance, and forensics—to find and stop cyber criminals. We are working with our federal, state, and local partners and instituting Cyber Task Forces in each of our field offices across the United States, including here in Northern Ohio. Our 64 Legal Attaché offices around the world coordinate international cyber investigations, and we have special agents embedded with police departments overseas in cyber “hot spots” to identify emerging trends and key players.
But we cannot do it alone. Whether it’s a bank robbery, a murder investigation, or a sophisticated cyber intrusion, law enforcement cannot succeed without witnesses and community support. Our private sector partners are the primary victims of the cyber threat, yet they also possess the knowledge we need to stop these attacks.
I understand why businesses may be reluctant to report computer intrusions. They are worried about privacy issues and shareholder lawsuits, loss of competitive edge, and negative publicity. There is still some confusion about the “lanes in the road” when it comes to the federal government and cyber security. And to some it may seem that cooperating with the government is bad for the bottom line.
But former FBI Director Robert Mueller summed it up succinctly two years ago when he said, “There are only two types of companies: those that have been hacked, and those that will be.”
We must overcome companies’ worries to better protect the private sector’s proprietary information and customer data. We must share as much information as we can, as quickly as possible, so that companies can minimize any breach. And we must continue to build strong partnerships. As the special agent in charge, our office, including myself, is committed to being on a first-name basis with key industry partners in our community. Our office needs to know what private sector businesses need from the FBI and how best to protect their interests.
We also need the means to share information instantaneously. Human speed—typing an e-mail or making a phone call—won’t cut it anymore. As a first step, we in the FBI have created a malware repository that provides near real-time investigative information. If your company has been hacked, you can send the malware to us and, in most cases, receive a report within hours on how it works, what it might be targeting, and whether others have suffered a similar attack. In Northern Ohio, we are developing working groups between law enforcement, the private sector, and regulatory groups. These working groups are a first step towards seamless information sharing, which will help identify nefarious actors and protect our community.
We also want to provide an electronic means for reporting intrusions. Through a program called iGuardian, law enforcement and the private sector can share intrusion information, quickly and routinely. These are important steps. We must stop these threats before they become reality.
There has been much discussion of privacy in recent months and a fair amount of suspicion of the government, particularly with regard to electronic communications. Some believe there is an inherent conflict between protecting national security and preserving privacy and civil liberties. I disagree. The men and women of the FBI are sworn to protect both security and liberty. When a city posts police officers in a dangerous park, for example, so that families can use the park without worry, security has promoted liberty. At our best, that is our goal.
But the Internet park we all use is becoming more dangerous, every day. We face serious threats, and we need timely and accurate intelligence—including electronic communications—to stop those threats. If we are going to discuss altering the tools we use to collect information on individuals we believe are connected to criminal or terrorist activity, we must understand the benefits and the losses that may come with any change. The same is true when we allow the effectiveness of those tools to erode over time, through the failure to update our laws, or when our tools become less effective through unauthorized disclosures.
Intelligent people can and will disagree, but we can resolve these issues with open and honest communication. It will not be easy, and we will not always see eye-to-eye, but we must stand together to protect our data, our intellectual property, our economy, and our collective security.
The Internet touches everything and everyone. For that reason, it has also provided the means for hostile foreign nations, hackers for hire, and criminal syndicates to steal our personal information, intellectual property, technology, and state secrets. Terrorists may seek to strike our critical infrastructure and our economy.
As FBI Director James Comey told Congress last year, we expect threats posed by cyber crime attacks to surpass threats posed by terrorists as our top national security threat.
We here in Northeast Ohio—with our concentration of manufacturers, world-class hospitals, and research universities—are not immune to the threat.
Given the scope of this threat, we in the FBI are working side-by-side with our partners, including the U.S. Department of Homeland Security and the Department of Defense.
We are targeting high-level intrusions—the biggest and most dangerous botnets, state-sponsored attacks, and global cyber rings. FBI agents, analysts, and computer scientists combine technical skills and traditional investigative techniques—including sources and court-authorized interception of communications, surveillance, and forensics—to find and stop cyber criminals. We are working with our federal, state, and local partners and instituting Cyber Task Forces in each of our field offices across the United States, including here in Northern Ohio. Our 64 Legal Attaché offices around the world coordinate international cyber investigations, and we have special agents embedded with police departments overseas in cyber “hot spots” to identify emerging trends and key players.
But we cannot do it alone. Whether it’s a bank robbery, a murder investigation, or a sophisticated cyber intrusion, law enforcement cannot succeed without witnesses and community support. Our private sector partners are the primary victims of the cyber threat, yet they also possess the knowledge we need to stop these attacks.
I understand why businesses may be reluctant to report computer intrusions. They are worried about privacy issues and shareholder lawsuits, loss of competitive edge, and negative publicity. There is still some confusion about the “lanes in the road” when it comes to the federal government and cyber security. And to some it may seem that cooperating with the government is bad for the bottom line.
But former FBI Director Robert Mueller summed it up succinctly two years ago when he said, “There are only two types of companies: those that have been hacked, and those that will be.”
We must overcome companies’ worries to better protect the private sector’s proprietary information and customer data. We must share as much information as we can, as quickly as possible, so that companies can minimize any breach. And we must continue to build strong partnerships. As the special agent in charge, our office, including myself, is committed to being on a first-name basis with key industry partners in our community. Our office needs to know what private sector businesses need from the FBI and how best to protect their interests.
We also need the means to share information instantaneously. Human speed—typing an e-mail or making a phone call—won’t cut it anymore. As a first step, we in the FBI have created a malware repository that provides near real-time investigative information. If your company has been hacked, you can send the malware to us and, in most cases, receive a report within hours on how it works, what it might be targeting, and whether others have suffered a similar attack. In Northern Ohio, we are developing working groups between law enforcement, the private sector, and regulatory groups. These working groups are a first step towards seamless information sharing, which will help identify nefarious actors and protect our community.
We also want to provide an electronic means for reporting intrusions. Through a program called iGuardian, law enforcement and the private sector can share intrusion information, quickly and routinely. These are important steps. We must stop these threats before they become reality.
There has been much discussion of privacy in recent months and a fair amount of suspicion of the government, particularly with regard to electronic communications. Some believe there is an inherent conflict between protecting national security and preserving privacy and civil liberties. I disagree. The men and women of the FBI are sworn to protect both security and liberty. When a city posts police officers in a dangerous park, for example, so that families can use the park without worry, security has promoted liberty. At our best, that is our goal.
But the Internet park we all use is becoming more dangerous, every day. We face serious threats, and we need timely and accurate intelligence—including electronic communications—to stop those threats. If we are going to discuss altering the tools we use to collect information on individuals we believe are connected to criminal or terrorist activity, we must understand the benefits and the losses that may come with any change. The same is true when we allow the effectiveness of those tools to erode over time, through the failure to update our laws, or when our tools become less effective through unauthorized disclosures.
Intelligent people can and will disagree, but we can resolve these issues with open and honest communication. It will not be easy, and we will not always see eye-to-eye, but we must stand together to protect our data, our intellectual property, our economy, and our collective security.
Jose Alvarado, aka Chewee, Sentenced in Federal Court to 20 Years in Federal Prison for Engaging in a Drug Trafficking Conspiracy in Binghamton
BINGHAMTON, NY—United States Attorney Richard S. Hartunian announced that Jose Alvarado, aka Chewee, 25 years old from Binghamton, New York, was sentenced today in federal court in Binghamton, New York, to 20 years in federal prison and to be followed by 10 years of post-release supervision.
The investigation leading to today’s sentencing of Jose Alvarado was conducted by members of a task force composed of the U.S. Attorney’s Office, Binghamton, New York; FBI Albany Field Office; Broome County District Attorney’s Office; Binghamton Police Department; New York State Police; Broome County Sheriff’s Office; Johnson City Police Department; Endicott Police Department; and the U.S. Marshals Service.
Following an extensive investigation by the task force, Jose Alvarado and several others were indicted by a federal grand jury. On October 3, 2013, Alvarado pled guilty to count one of a single-count indictment (12-CR-445). Count one charges that from about May 2011 through September 2012, in Broome County, in the Northern District of New York and elsewhere, defendants Luis Masso-Diaz, aka Wewe; Jose Alvarado, aka Chewee; Reynaldo Bones, aka Javy; Victor Texidor, aka Machito; Jose Alicea, aka Papo; and others conspired to knowingly and intentionally possess with intent to distribute and to distribute one or more controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. That violation involved 280 grams or more of a mixture or substance containing cocaine base, in violation of Title 21, United States Code, Section 841(b)(1)(A); 500 grams or more of a mixture or substance containing a detectable amount of cocaine, in violation of Title 21, United States Code, Section 841(b)(1)(B); 100 grams or more of a mixture or substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Section 841(b)(1)(B); oxycontin, percocet, and morphine, in violation of Title 21, United States Code, Section 841(b)(1)(C); and vicodin, in violation of Title 21, United States Code, Section 841(b)(1)(E).
Reynaldo Bones, aka Javy, 28 years old from Binghamton, New York, was previously also sentenced in federal court to 135 months in federal prison and five years of post-release supervision. The remaining defendants are awaiting sentencing and remain in custody with the U.S. Marshals Service.
The investigation leading to today’s sentencing of Jose Alvarado was conducted by members of a task force composed of the U.S. Attorney’s Office, Binghamton, New York; FBI Albany Field Office; Broome County District Attorney’s Office; Binghamton Police Department; New York State Police; Broome County Sheriff’s Office; Johnson City Police Department; Endicott Police Department; and the U.S. Marshals Service.
Following an extensive investigation by the task force, Jose Alvarado and several others were indicted by a federal grand jury. On October 3, 2013, Alvarado pled guilty to count one of a single-count indictment (12-CR-445). Count one charges that from about May 2011 through September 2012, in Broome County, in the Northern District of New York and elsewhere, defendants Luis Masso-Diaz, aka Wewe; Jose Alvarado, aka Chewee; Reynaldo Bones, aka Javy; Victor Texidor, aka Machito; Jose Alicea, aka Papo; and others conspired to knowingly and intentionally possess with intent to distribute and to distribute one or more controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. That violation involved 280 grams or more of a mixture or substance containing cocaine base, in violation of Title 21, United States Code, Section 841(b)(1)(A); 500 grams or more of a mixture or substance containing a detectable amount of cocaine, in violation of Title 21, United States Code, Section 841(b)(1)(B); 100 grams or more of a mixture or substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Section 841(b)(1)(B); oxycontin, percocet, and morphine, in violation of Title 21, United States Code, Section 841(b)(1)(C); and vicodin, in violation of Title 21, United States Code, Section 841(b)(1)(E).
Reynaldo Bones, aka Javy, 28 years old from Binghamton, New York, was previously also sentenced in federal court to 135 months in federal prison and five years of post-release supervision. The remaining defendants are awaiting sentencing and remain in custody with the U.S. Marshals Service.
Jersey City Man Pleads Guilty to Armed Robbery of Jewelry Store
TRENTON, NJ—A Jersey City man admitted today to committing an armed robbery of a jewelry store in Hudson County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Mouhamadou Lamine Amar, 20, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an indictment charging him with committing a Hobbs Act robbery and with brandishing a firearm during the robbery.
According to documents filed in this case and statements made in court:
On June 28, 2013, Amar entered a jewelry store in Jersey City and held a gun to a store employee’s head. He grabbed and pushed the employee when the employee tried to flee. He tied up the employee and threatened to shoot the employee if the employee tried to escape. Amar was arrested inside the store while still in possession of the firearm.
The Hobbs Act robbery count to which Amar pleaded guilty carries a maximum potential penalty of 20 years in prison. The count of brandishing a firearm during a violent crime carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine or twice the gross gain or loss arising out of the offense. Sentencing is scheduled for July 10, 2014.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force (JTTF), under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. The JTTF is composed of law enforcement officers from numerous federal, state, and local agencies throughout New Jersey. U.S. Attorney Fishman also thanked the Jersey City Police Department and the Hudson County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Criminal Division in Newark.
Mouhamadou Lamine Amar, 20, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an indictment charging him with committing a Hobbs Act robbery and with brandishing a firearm during the robbery.
According to documents filed in this case and statements made in court:
On June 28, 2013, Amar entered a jewelry store in Jersey City and held a gun to a store employee’s head. He grabbed and pushed the employee when the employee tried to flee. He tied up the employee and threatened to shoot the employee if the employee tried to escape. Amar was arrested inside the store while still in possession of the firearm.
The Hobbs Act robbery count to which Amar pleaded guilty carries a maximum potential penalty of 20 years in prison. The count of brandishing a firearm during a violent crime carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine or twice the gross gain or loss arising out of the offense. Sentencing is scheduled for July 10, 2014.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force (JTTF), under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. The JTTF is composed of law enforcement officers from numerous federal, state, and local agencies throughout New Jersey. U.S. Attorney Fishman also thanked the Jersey City Police Department and the Hudson County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Criminal Division in Newark.
Friday, March 28, 2014
Fresno Police Department Detective and Fresno Marijuana Trafficker Indicted in Bribery Scheme
FRESNO, CA—A federal grand jury returned a four-count indictment today against Derik Carson Kumagai, 40, resident of Clovis, California, and Saykham Somphoune, a/k/a, “Oat,” 40, resident of Fresno, California, charging them with conspiracy, bribery, and extortion, United States Attorney Benjamin B. Wagner announced.
According to court documents, detective Kumagai accepted a $20,000 bribe from an individual who was under investigation for marijuana trafficking. In return for the bribe payment, Kumagai and co-conspirator Somphoune (who is not a law enforcement officer) promised the person under investigation that he would be signed up as a confidential informant for the Fresno Police Department. On November 6, 2013, the person under investigation paid Kumagai approximately $20,000 cash. A few hours later, the person under investigation completed purported documents regarding work as a confidential informant for the Fresno Police Department.
This case was the product of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, and Internal Revenue Service-Criminal Investigation Division. The Department of Homeland Security-Homeland Security Investigations and the United States Postal Inspection Service also provided investigative assistance in this case. Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.
Derik Kumagai was released from pretrial custody on March 19, 2014. Saykham Somphoune is currently detained as a flight risk.
If convicted of conspiracy, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of bribery, they face a maximum statutory penalty of 10 years in prison and a $500,000 fine. If convicted of extortion or conspiracy to commit extortion, they face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
According to court documents, detective Kumagai accepted a $20,000 bribe from an individual who was under investigation for marijuana trafficking. In return for the bribe payment, Kumagai and co-conspirator Somphoune (who is not a law enforcement officer) promised the person under investigation that he would be signed up as a confidential informant for the Fresno Police Department. On November 6, 2013, the person under investigation paid Kumagai approximately $20,000 cash. A few hours later, the person under investigation completed purported documents regarding work as a confidential informant for the Fresno Police Department.
This case was the product of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, and Internal Revenue Service-Criminal Investigation Division. The Department of Homeland Security-Homeland Security Investigations and the United States Postal Inspection Service also provided investigative assistance in this case. Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.
Derik Kumagai was released from pretrial custody on March 19, 2014. Saykham Somphoune is currently detained as a flight risk.
If convicted of conspiracy, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of bribery, they face a maximum statutory penalty of 10 years in prison and a $500,000 fine. If convicted of extortion or conspiracy to commit extortion, they face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento FBI Arrests Bad Beard Bandit, Who is Suspected of Robbing Eight Northern California Banks
SACRAMENTO, CA—Today, the Federal Bureau of Investigation (FBI) arrested Gerardo Orozco Lopez, 28, of Half Moon Bay—suspected of being the “Bad Beard Bandit”—for allegedly committing a series of eight bank robberies in California.
The Bad Beard Bandit struck eight separate Northern California banks over the course of four months and was prominently featured on the FBI’s wanted bank robber website (https://bankrobbers.fbi.gov). The suspect earned his nickname, Bad Beard Bandit, from the FBI because he wore a dark, costume beard of poor quality in an attempt to conceal his identity. While a weapon was reportedly not seen by victims at the banks, the suspect threatened that he had a weapon, increasing concern for the safety of bank personnel and patrons.
The Bad Beard Bandit was wanted for the following robberies:
The Bad Beard Bandit struck eight separate Northern California banks over the course of four months and was prominently featured on the FBI’s wanted bank robber website (https://bankrobbers.fbi.gov). The suspect earned his nickname, Bad Beard Bandit, from the FBI because he wore a dark, costume beard of poor quality in an attempt to conceal his identity. While a weapon was reportedly not seen by victims at the banks, the suspect threatened that he had a weapon, increasing concern for the safety of bank personnel and patrons.
The Bad Beard Bandit was wanted for the following robberies:
- November 21, 2013: Bank of the West, 411 W. Main St., Ripon, California
- November 26, 2013: Chase Bank, 123 Spreckels Ave., Manteca, California
- December 3, 2013: Chase Bank, 691 W. 11th St., Tracy, California
- December 4, 2013: Chase Bank, 4520 Dublin Blvd., Dublin, California
- December 10, 2013: Citibank, 395 W El Camino Real, Sunnyvale, California
- December 18, 2013: Chase Bank, 5142 Stevens Creek Boulevard, San Jose, California
- February 5, 2014: Citibank, 2000 Geer Road, Turlock, California
- February 25, 2014: Citibank, 1995 41st Avenue, Capitola, California
Correctional Officer and Prison Inmate Indicted in Conspiracy to Smuggle Heroin and Methamphetamine into the Taft Correctional Facility
FRESNO, CA—A federal grand jury returned a five-count superseding indictment today against Ramon Cano, 28, a resident of Bakersfield, and Gerardo Alvarez-Montanez, 32, an inmate at the Taft Federal Correctional Facility, charging them with conspiracy to provide and possess contraband in prison and with various substantive counts, including distribution and attempted distribution of a controlled substance and bribery of a public official. United States Attorney Benjamin B. Wagner announced.
According to court documents, Cano, a full-time contract correctional officer employed at the Taft Federal Correctional Facility, was involved in smuggling heroin, methamphetamine, and other items of contraband, including cash and cell phones, to Alvarez-Montanez in return for payments of cash.
This case was the product of an investigation by the Federal Bureau of Investigation and the Office of the Inspector General U.S. Department of Justice. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Cano and Alvarez face a maximum statutory penalty of 40 years in prison and a $5,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
According to court documents, Cano, a full-time contract correctional officer employed at the Taft Federal Correctional Facility, was involved in smuggling heroin, methamphetamine, and other items of contraband, including cash and cell phones, to Alvarez-Montanez in return for payments of cash.
This case was the product of an investigation by the Federal Bureau of Investigation and the Office of the Inspector General U.S. Department of Justice. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Cano and Alvarez face a maximum statutory penalty of 40 years in prison and a $5,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Sacramento-Area Man Sentenced to 30 Months in Mortgage Fraud Scheme
SACRAMENTO, CA—Alexander A. Romaniolis, 48, of Irvine, was sentenced today by United States District Judge Troy L. Nunley to 30 months in prison and a $17,500 fine and forfeiture of more than $400,000 for mortgage fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Romaniolis recruited five straw buyers to purchase eight California residential properties in Rocklin, Roseville, and San Clemente. Romaniolis assisted the straw buyers in providing false information to lenders about their employment, income, assets, and intent to occupy properties as primary residences. In most cases, the straw buyers claimed to be executives of companies created and controlled by Romaniolis. He was responsible for the origination of more than $5 million in residential mortgage loans in the scheme. All the properties were foreclosed on, resulting in a total loss of more than $2 million.
At sentencing, Romaniolis asked to be released for a short period so he could see his family before completing his sentence. Judge Nunley denied that request.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Attorney General’s Mortgage Fraud Task Force. The Huntington Beach Police Department assisted in the arrest. Assistant United States Attorneys Jean M. Hobler and Jeff Spivak prosecuted the case.
According to court documents, Romaniolis recruited five straw buyers to purchase eight California residential properties in Rocklin, Roseville, and San Clemente. Romaniolis assisted the straw buyers in providing false information to lenders about their employment, income, assets, and intent to occupy properties as primary residences. In most cases, the straw buyers claimed to be executives of companies created and controlled by Romaniolis. He was responsible for the origination of more than $5 million in residential mortgage loans in the scheme. All the properties were foreclosed on, resulting in a total loss of more than $2 million.
At sentencing, Romaniolis asked to be released for a short period so he could see his family before completing his sentence. Judge Nunley denied that request.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Attorney General’s Mortgage Fraud Task Force. The Huntington Beach Police Department assisted in the arrest. Assistant United States Attorneys Jean M. Hobler and Jeff Spivak prosecuted the case.
Mobile Man Sentenced to Nearly Four Years in Prison for Conning $260,000 from Three Women
BIRMINGHAM—A federal judge today sentenced a Mobile man to nearly four years in prison in connection with a con scheme totaling more than $260,000 that he ran on at least three women he met in an upscale Birmingham steakhouse, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
Julian Pearson Burke, 56, pleaded guilty in October to two counts of wire fraud and one count of interstate transportation of stolen goods. U.S. District Judge L. Scott Coogler sentenced Burke to 45 months in prison on the charges and ordered him to pay the victims $264,300 in restitution. Burke had agreed to the restitution as part of his plea agreement with the government. Judge Coogler ordered Burke into custody immediately following today’s hearing.
Between October 2010 and October 2011, Burke struck up friendships with at least three women he met at a restaurant in the Summit Shopping Center on U.S. 280. He convinced all three to give him tens of thousands of dollars for him to invest, according to court documents. Instead of investing the money, Burke spent it at pawnshops and casinos. He never returned any money to the three women.
Burke pleaded guilty to transporting stolen goods across state lines for receiving a $100,000 investment check from a woman, identified by the initials C.W., and converting it to personal use by endorsing and negotiating the check at the Imperial Palace of Mississippi casino in Biloxi. The woman believed she was investing in the Admiral Semmes Hotel in Mobile.
According to Burke’s plea agreement and other court documents, he carried out his wire fraud scheme as follows:
Burke owned two businesses, Burke Construction and Computer Converters, and maintained business accounts for both at the Mississippi-based Hancock Bank.
In October 2010, Burke met a woman, identified by the initials D.G., at the Birmingham restaurant and built a friendship. In February 2011, he asked D.G. to invest with him by loaning money to pawnshops. On February 7, 2011, she wired $18,000 from her bank account to the Computer Converters account, which held $313 before her deposit. The next day, Burke transferred $18,200 from the Computer Converters account to the Burke Construction account. The same day, he wrote two $9,150 checks to Quik Pawn in Mobile to buy back a 17-carat platinum watch and a men’s diamond pinky ring he previously had pawned there for $7,500 each.
In April 2011, Burke convinced D.G. to invest $86,000 more with him, claiming he was publishing academic coloring books for children and would roll her previous investment, plus interest, into the project. She thought she would get back the $110,000, plus interest, within six months. In July 2011, D.G. wired another $20,300 to the Burke Construction account for the coloring book project. Burke never returned any of D.G.’s money. He also cashed a $59,921 check at Grand Casino of Mississippi on the same day the $86,000 was deposited into the previously overdrawn construction company account.
The third victim in the case is identified in court documents by the initials, S.H. Burke met her at the Birmingham restaurant in February 2011. He convinced S.H. to invest with him in buying a pawnshop, with the understanding that she would earn 15 percent interest within 60 days. On October 24, 2011, S.H. wired $40,000 to the Burke Construction bank account, which was overdrawn until the deposit arrived. That same day, Burke withdrew $35,000 cash and transferred $2,000 to the Computer Converters account.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
Julian Pearson Burke, 56, pleaded guilty in October to two counts of wire fraud and one count of interstate transportation of stolen goods. U.S. District Judge L. Scott Coogler sentenced Burke to 45 months in prison on the charges and ordered him to pay the victims $264,300 in restitution. Burke had agreed to the restitution as part of his plea agreement with the government. Judge Coogler ordered Burke into custody immediately following today’s hearing.
Between October 2010 and October 2011, Burke struck up friendships with at least three women he met at a restaurant in the Summit Shopping Center on U.S. 280. He convinced all three to give him tens of thousands of dollars for him to invest, according to court documents. Instead of investing the money, Burke spent it at pawnshops and casinos. He never returned any money to the three women.
Burke pleaded guilty to transporting stolen goods across state lines for receiving a $100,000 investment check from a woman, identified by the initials C.W., and converting it to personal use by endorsing and negotiating the check at the Imperial Palace of Mississippi casino in Biloxi. The woman believed she was investing in the Admiral Semmes Hotel in Mobile.
According to Burke’s plea agreement and other court documents, he carried out his wire fraud scheme as follows:
Burke owned two businesses, Burke Construction and Computer Converters, and maintained business accounts for both at the Mississippi-based Hancock Bank.
In October 2010, Burke met a woman, identified by the initials D.G., at the Birmingham restaurant and built a friendship. In February 2011, he asked D.G. to invest with him by loaning money to pawnshops. On February 7, 2011, she wired $18,000 from her bank account to the Computer Converters account, which held $313 before her deposit. The next day, Burke transferred $18,200 from the Computer Converters account to the Burke Construction account. The same day, he wrote two $9,150 checks to Quik Pawn in Mobile to buy back a 17-carat platinum watch and a men’s diamond pinky ring he previously had pawned there for $7,500 each.
In April 2011, Burke convinced D.G. to invest $86,000 more with him, claiming he was publishing academic coloring books for children and would roll her previous investment, plus interest, into the project. She thought she would get back the $110,000, plus interest, within six months. In July 2011, D.G. wired another $20,300 to the Burke Construction account for the coloring book project. Burke never returned any of D.G.’s money. He also cashed a $59,921 check at Grand Casino of Mississippi on the same day the $86,000 was deposited into the previously overdrawn construction company account.
The third victim in the case is identified in court documents by the initials, S.H. Burke met her at the Birmingham restaurant in February 2011. He convinced S.H. to invest with him in buying a pawnshop, with the understanding that she would earn 15 percent interest within 60 days. On October 24, 2011, S.H. wired $40,000 to the Burke Construction bank account, which was overdrawn until the deposit arrived. That same day, Burke withdrew $35,000 cash and transferred $2,000 to the Computer Converters account.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
Former Jefferson County Committee for Economic Opportunity Executive Director Sentenced to Two Years in Prison for Stealing from Non-Profit Community Agency
BIRMINGHAM—U.S. District Judge L. Scott Coogler today sentenced the former executive director of the Jefferson County Committee for Economic Opportunity (JCCEO) to two years in prison for stealing close to $500,000 from the non-profit organization, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
Ruth Gayle Cunningham, 64, was executive director of JCCEO for more than 20 years before resigning the job last March. She pleaded guilty in September to theft from a government program that received more than $10,000 in federal funding or assistance. Her daughter, Kelli E. Caulfield, 31, pleaded guilty last year to conspiring with her mother to defraud JCCEO. Cunningham paid $492,195 in restitution to JCCEO, which was part of her plea agreement with the government, before today’s sentencing. She must report to prison April 28.
JCCEO is a community action agency that administers programs, including Head Start, for low-income and disadvantaged residents. Between late 2008 and April 2010, while Cunningham and her daughter were running fake invoices through the agency and using agency funds to pay mortgages on personal investment properties, JCCEO was paying Cunningham a salary of as much as $150,000, plus bonuses, benefits, and retirement contributions.
“At the same time Cunningham was being showered with accolades, benefits, and praise for her work at the JCCEO, she was stealing funds which could have been used for community programs,” the government said in its sentencing memorandum.
“Gayle Cunningham was able to steal money intended to help some of the most vulnerable members of our community because she traded on her long tenure at JCCEO to receive broad discretionary powers from its board,” Vance said. “She and her daughter exploited that authority to steal nearly a half million dollars from the agency. As a result, training programs lagged, Head Start buses were not replaced, and classroom computers were running on obsolete, unsupported operating systems,” she said. “Prison is deserved for this type of abuse of trust and misuse of federal funds.”
“Today’s sentence should send the message that regardless of who you are or the position that you hold, you cannot abuse the public trust and steal federal funds,” Schwein said. “The public can expect that the FBI will continue to aggressively investigate public corruption at all levels.”
According to court records, Cunningham used JCCEO funds in 2009 and 2010 to make monthly mortgage payments on at least three residential properties she owned and at least five residential properties her daughter owned in Jefferson and Shelby Counties. Cunningham also used JCCEO funds to pay property taxes on one of those properties, a house in Chelsea that she bought in 2007 with a mortgage loan of more than $1 million.
Cunningham also paid $293,413 in JCCEO funds to companies her daughter owned and to other contractors for claimed repairs or renovations to the women’s properties. Caulfield created the invoices for repair services that never were performed, and she disguised her ownership in many of the companies, according to the government’s sentencing memorandum. The checks were drawn from the JCCEO operating account and allocated to the agency’s Housing Revitalization Program.
Caulfield crafted the invoices for amounts less than $5,000 to prevent the need for a second signature by a member of the JCCEO board. As executive director, her mother had check-signing authority up to $5,000.
The FBI discovered the fraud at JCCEO while investigating allegations of a mortgage fraud scheme. That investigation led to federal prosecutors’ charges against Cunningham and Caulfield, as well as to charges against a real estate investor and a mortgage broker of conspiracy to defraud federally insured financial institutions. Cunningham and Caulfield bought most of the properties that later became part of their scheme to defraud JCCEO from the investor, Robert Paul Hollman.
Hollman pleaded guilty in September and is scheduled for sentencing April 2.
The government’s sentencing memorandum argues that Cunningham and Caulfield have “improperly characterized themselves as victims in the real estate transactions with Hollman.” Cunningham has a history of buying real estate, and, on all the purchases from Hollman, the loan applications and mortgage documents show Cunningham and her daughter signed and willingly entered the contracts, the memo states.
It also challenges a claim in Cunningham’s own sentencing memorandum that, during meetings she had with JCCEO Board Chairman T.L. Lewis, it was suggested she use the agency’s Housing Revitalization Program funds to pay her personal mortgages.
Lewis told investigating agents that Cunningham and Caulfield never were authorized to use JCCEO money to pay personal mortgages.
“Cunningham’s statement that she had approval from the chairman of the board is a completely self-serving statement that is unsupported by the evidence,” the government memorandum states. “These attempts by Cunningham to legitimize her actions and mitigate the need for a custodial sentence by pointing the finger at Dr. Lewis are contrary to the facts and evidence and furthermore are contrary to her acceptance of responsibility,” it states.
The FBI investigated the case. Assistant U.S. Attorney Robin Beardsley Mark is prosecuting the case.
Ruth Gayle Cunningham, 64, was executive director of JCCEO for more than 20 years before resigning the job last March. She pleaded guilty in September to theft from a government program that received more than $10,000 in federal funding or assistance. Her daughter, Kelli E. Caulfield, 31, pleaded guilty last year to conspiring with her mother to defraud JCCEO. Cunningham paid $492,195 in restitution to JCCEO, which was part of her plea agreement with the government, before today’s sentencing. She must report to prison April 28.
JCCEO is a community action agency that administers programs, including Head Start, for low-income and disadvantaged residents. Between late 2008 and April 2010, while Cunningham and her daughter were running fake invoices through the agency and using agency funds to pay mortgages on personal investment properties, JCCEO was paying Cunningham a salary of as much as $150,000, plus bonuses, benefits, and retirement contributions.
“At the same time Cunningham was being showered with accolades, benefits, and praise for her work at the JCCEO, she was stealing funds which could have been used for community programs,” the government said in its sentencing memorandum.
“Gayle Cunningham was able to steal money intended to help some of the most vulnerable members of our community because she traded on her long tenure at JCCEO to receive broad discretionary powers from its board,” Vance said. “She and her daughter exploited that authority to steal nearly a half million dollars from the agency. As a result, training programs lagged, Head Start buses were not replaced, and classroom computers were running on obsolete, unsupported operating systems,” she said. “Prison is deserved for this type of abuse of trust and misuse of federal funds.”
“Today’s sentence should send the message that regardless of who you are or the position that you hold, you cannot abuse the public trust and steal federal funds,” Schwein said. “The public can expect that the FBI will continue to aggressively investigate public corruption at all levels.”
According to court records, Cunningham used JCCEO funds in 2009 and 2010 to make monthly mortgage payments on at least three residential properties she owned and at least five residential properties her daughter owned in Jefferson and Shelby Counties. Cunningham also used JCCEO funds to pay property taxes on one of those properties, a house in Chelsea that she bought in 2007 with a mortgage loan of more than $1 million.
Cunningham also paid $293,413 in JCCEO funds to companies her daughter owned and to other contractors for claimed repairs or renovations to the women’s properties. Caulfield created the invoices for repair services that never were performed, and she disguised her ownership in many of the companies, according to the government’s sentencing memorandum. The checks were drawn from the JCCEO operating account and allocated to the agency’s Housing Revitalization Program.
Caulfield crafted the invoices for amounts less than $5,000 to prevent the need for a second signature by a member of the JCCEO board. As executive director, her mother had check-signing authority up to $5,000.
The FBI discovered the fraud at JCCEO while investigating allegations of a mortgage fraud scheme. That investigation led to federal prosecutors’ charges against Cunningham and Caulfield, as well as to charges against a real estate investor and a mortgage broker of conspiracy to defraud federally insured financial institutions. Cunningham and Caulfield bought most of the properties that later became part of their scheme to defraud JCCEO from the investor, Robert Paul Hollman.
Hollman pleaded guilty in September and is scheduled for sentencing April 2.
The government’s sentencing memorandum argues that Cunningham and Caulfield have “improperly characterized themselves as victims in the real estate transactions with Hollman.” Cunningham has a history of buying real estate, and, on all the purchases from Hollman, the loan applications and mortgage documents show Cunningham and her daughter signed and willingly entered the contracts, the memo states.
It also challenges a claim in Cunningham’s own sentencing memorandum that, during meetings she had with JCCEO Board Chairman T.L. Lewis, it was suggested she use the agency’s Housing Revitalization Program funds to pay her personal mortgages.
Lewis told investigating agents that Cunningham and Caulfield never were authorized to use JCCEO money to pay personal mortgages.
“Cunningham’s statement that she had approval from the chairman of the board is a completely self-serving statement that is unsupported by the evidence,” the government memorandum states. “These attempts by Cunningham to legitimize her actions and mitigate the need for a custodial sentence by pointing the finger at Dr. Lewis are contrary to the facts and evidence and furthermore are contrary to her acceptance of responsibility,” it states.
The FBI investigated the case. Assistant U.S. Attorney Robin Beardsley Mark is prosecuting the case.
Federal Grand Jury Indicts Man Who Flew into Birmingham Airport and Attempted to Fly Out Under Assumed Names
BIRMINGHAM—A man who flew into the Birmingham-Shuttlesworth International Airport under an assumed name on March 16 now faces a federal grand jury indictment for violating airport security and presenting false identification documents, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
The three-count indictment filed in U.S. District Court charges Robert Anthony Ricks, 30, with the felonies of entering an airport area in violation of security requirements and with using someone else’s identification to illegally enter an aircraft or secure airport area. The indictment also charges Ricks with entering a secure airport area by false pretenses, a misdemeanor.
Ricks was arrested at the airport and initially charged in a federal complaint under the name Robert Quran Hick. His indictment lists that name, along with four others, as aliases. The other aliases included are Robert Harris, Quran Kendrick, Sage Malik, and Wise. The investigation is ongoing, and Ricks’ last place of residence has not been confirmed.
Count one of the indictment charges that Ricks got off Delta Flight 1535 in Birmingham and entered the “secure and sterile area of the terminal” under the identity of “U.W.” Thereafter, he assumed the identity of another person, identified in the indictment by the initials M.M. A March 17 FBI affidavit supporting Ricks’ arrest complaint identifies Flight 1535 as flying to Birmingham from Atlanta.
Count two of the indictment, the misdemeanor, charges that Ricks attempted to go through security screening at the Birmingham airport using a boarding pass in the name of M.M.
Count three charges that Ricks illegally possessed a document identifying him as M.M. and intended to use the document to enter an aircraft or a secure airport area.
According to the arrest affidavit, Ricks obtained United Airlines boarding passes from Birmingham to Chicago and from Chicago to Colorado Springs by telling a United representative in Birmingham that he was M.M. Ricks made the claim at a United boarding gate after hearing a public address system message for M.M.
Hicks was arrested after he left the secure area of the Birmingham airport, twice tried to re-enter the area by going up the down escalator, and then tried to go through a Transportation Security Agency checkpoint using one of the United boarding passes, according to the arrest affidavit.
The affidavit also reports that Ricks provided a false name and birth date to the FBI agent who interviewed him when he was arrested.
The maximum penalty for entering an airport area in violation of security requirements is 10 years in prison and a $250,000 fine; and the maximum penalty for possessing false identification documents with the intent to use them illegally is five years in prison and a $250,000 fine. The misdemeanor charge of entering a secure airport area by false pretenses carries a maximum sentence of six months in prison and a $5,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Elizabeth Holt is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government’s responsibility to prove guilt beyond a reasonable doubt.
The three-count indictment filed in U.S. District Court charges Robert Anthony Ricks, 30, with the felonies of entering an airport area in violation of security requirements and with using someone else’s identification to illegally enter an aircraft or secure airport area. The indictment also charges Ricks with entering a secure airport area by false pretenses, a misdemeanor.
Ricks was arrested at the airport and initially charged in a federal complaint under the name Robert Quran Hick. His indictment lists that name, along with four others, as aliases. The other aliases included are Robert Harris, Quran Kendrick, Sage Malik, and Wise. The investigation is ongoing, and Ricks’ last place of residence has not been confirmed.
Count one of the indictment charges that Ricks got off Delta Flight 1535 in Birmingham and entered the “secure and sterile area of the terminal” under the identity of “U.W.” Thereafter, he assumed the identity of another person, identified in the indictment by the initials M.M. A March 17 FBI affidavit supporting Ricks’ arrest complaint identifies Flight 1535 as flying to Birmingham from Atlanta.
Count two of the indictment, the misdemeanor, charges that Ricks attempted to go through security screening at the Birmingham airport using a boarding pass in the name of M.M.
Count three charges that Ricks illegally possessed a document identifying him as M.M. and intended to use the document to enter an aircraft or a secure airport area.
According to the arrest affidavit, Ricks obtained United Airlines boarding passes from Birmingham to Chicago and from Chicago to Colorado Springs by telling a United representative in Birmingham that he was M.M. Ricks made the claim at a United boarding gate after hearing a public address system message for M.M.
Hicks was arrested after he left the secure area of the Birmingham airport, twice tried to re-enter the area by going up the down escalator, and then tried to go through a Transportation Security Agency checkpoint using one of the United boarding passes, according to the arrest affidavit.
The affidavit also reports that Ricks provided a false name and birth date to the FBI agent who interviewed him when he was arrested.
The maximum penalty for entering an airport area in violation of security requirements is 10 years in prison and a $250,000 fine; and the maximum penalty for possessing false identification documents with the intent to use them illegally is five years in prison and a $250,000 fine. The misdemeanor charge of entering a secure airport area by false pretenses carries a maximum sentence of six months in prison and a $5,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Elizabeth Holt is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government’s responsibility to prove guilt beyond a reasonable doubt.
Second Former Gulf Cartel Plaza Boss Pleads Guilty to Federal Drug Charges
BROWNSVILLE, TX—Jose Luis Zuniga-Hernandez, 46, aka Wicho or XW or Commandante Wicho, has entered a plea of guilty to conspiracy to import more than five kilograms of cocaine and more than 1,000 kilograms of marijuana between January 2002 and July 2013, announced United States Attorney Kenneth Magidson. As part of his plea, he has also agreed to a $5 million forfeiture. His brother, Armando Arizmendi Hernandez, 37, aka Commandante Mando or XW2, entered the same plea and agreed forfeiture on Tuesday, March 25, 2014.
Zuniga-Hernandez served as plaza boss of the El Control, Tamaulipas, Plaza, and during that time, Arizmendi Hernandez was second in command. Arizmendi-Hernandez became the plaza boss on November 6, 2010, when Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to the El Control Plaza. At that time, Arizmendi-Hernandez resumed his duties as second in command of the Plaza.
Cartel Del Golfo Transnational Criminal Organization (CDG) plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana, and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a “piso,” or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
Zuniga-Hernandez received marijuana shipments from the states of Durango and Michoacán, Mexico, purchased at $60 per kilogram in Mexico and sold at $130 per kilogram in the U.S. Zuniga-Hernandez indicated the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and into the United States per month. Planes and clandestine air strips were used to fly the cocaine into Mexico for later importation and distribution within the United States.
Under his command were approximately 120 lookouts and 60 estacas. An estaca is a vehicle occupied by three or four armed individuals. Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza.
On October 27, 2011, Zuniga-Hernandez and Arizmendi Hernandez fled into the United States with Juan Rincon-Rincon and Luis Ivan Nino-Duenes after a gun battle in Mexico involving a power struggle between the plazas of the CDG. All were found and arrested by the U.S. Border Patrol (USBP) hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond, and ruby encrusted gun; more than $39,000; and several cell phones. Evidence on those phones showed discussions with “Apa” about the gun battle and what to do in response. Apa was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG. Also found were videos of Arizmendi Hernandez, Zuniga-Hernandez, and other members of the CDG in preparation for and after the October 27, 2011 gun battle.
Zuniga-Hernandez and Arizmendi Hernandez have stipulated that the total relevant conduct during their leadership was well in excess of 150 kilograms of cocaine and 1,000 kilograms of marijuana. Both have agreed they obtained at least $5 million in drug proceeds as a result of the conspiracy.
They face a mandatory minimum sentence of 10 years and up to life in federal prison. Both will be sentenced before U.S. District Court Judge Hilda G. Tagle on June 30, 2014.
The case was investigated by Homeland Security Investigations; Drug Enforcement Administration; FBI; Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Brownsville Police Department. Assistant United States Attorneys Angel Castro and Jody Young are prosecuting.
Zuniga-Hernandez served as plaza boss of the El Control, Tamaulipas, Plaza, and during that time, Arizmendi Hernandez was second in command. Arizmendi-Hernandez became the plaza boss on November 6, 2010, when Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to the El Control Plaza. At that time, Arizmendi-Hernandez resumed his duties as second in command of the Plaza.
Cartel Del Golfo Transnational Criminal Organization (CDG) plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana, and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a “piso,” or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
Zuniga-Hernandez received marijuana shipments from the states of Durango and Michoacán, Mexico, purchased at $60 per kilogram in Mexico and sold at $130 per kilogram in the U.S. Zuniga-Hernandez indicated the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and into the United States per month. Planes and clandestine air strips were used to fly the cocaine into Mexico for later importation and distribution within the United States.
Under his command were approximately 120 lookouts and 60 estacas. An estaca is a vehicle occupied by three or four armed individuals. Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza.
On October 27, 2011, Zuniga-Hernandez and Arizmendi Hernandez fled into the United States with Juan Rincon-Rincon and Luis Ivan Nino-Duenes after a gun battle in Mexico involving a power struggle between the plazas of the CDG. All were found and arrested by the U.S. Border Patrol (USBP) hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond, and ruby encrusted gun; more than $39,000; and several cell phones. Evidence on those phones showed discussions with “Apa” about the gun battle and what to do in response. Apa was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG. Also found were videos of Arizmendi Hernandez, Zuniga-Hernandez, and other members of the CDG in preparation for and after the October 27, 2011 gun battle.
Zuniga-Hernandez and Arizmendi Hernandez have stipulated that the total relevant conduct during their leadership was well in excess of 150 kilograms of cocaine and 1,000 kilograms of marijuana. Both have agreed they obtained at least $5 million in drug proceeds as a result of the conspiracy.
They face a mandatory minimum sentence of 10 years and up to life in federal prison. Both will be sentenced before U.S. District Court Judge Hilda G. Tagle on June 30, 2014.
The case was investigated by Homeland Security Investigations; Drug Enforcement Administration; FBI; Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Brownsville Police Department. Assistant United States Attorneys Angel Castro and Jody Young are prosecuting.
Laredo Resident Arrested for Threatening to Blow Up Federal Building
LAREDO, TX—Cristina Lara, 43, has been charged with threatening to blow up the building that houses the Drug Enforcement Administration (DEA) in Laredo, announced United States Attorney Kenneth Magidson.
The criminal complaint, filed under seal March 17, 2014, was unsealed this morning as she was taken into custody by federal authorities. Lara is expected to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga tomorrow morning.
According to the charges, the DEA received a voicemail message on the morning of February 21, 2014, from an anonymous caller threatening to blow up the building. The entire building, which houses the DEA offices as well as other federal agencies, was evacuated immediately.
The FBI traced the message to a phone number located within the Laredo Medical Center, which is allegedly attached to a particular phone located in the reception area of the building. Video surveillance allegedly shows Lara using the phone at the same time the call was made.
If convicted, Lara faces up to 10 years in federal prison.
The case is being investigated by FBI is being prosecuted by Assistant U.S. Attorney Sonah Lee.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
The criminal complaint, filed under seal March 17, 2014, was unsealed this morning as she was taken into custody by federal authorities. Lara is expected to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga tomorrow morning.
According to the charges, the DEA received a voicemail message on the morning of February 21, 2014, from an anonymous caller threatening to blow up the building. The entire building, which houses the DEA offices as well as other federal agencies, was evacuated immediately.
The FBI traced the message to a phone number located within the Laredo Medical Center, which is allegedly attached to a particular phone located in the reception area of the building. Video surveillance allegedly shows Lara using the phone at the same time the call was made.
If convicted, Lara faces up to 10 years in federal prison.
The case is being investigated by FBI is being prosecuted by Assistant U.S. Attorney Sonah Lee.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Houston Man Charged with Threatening to Bomb Synagogues
WASHINGTON—The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Texas announced today that a federal grand jury in Houston returned a six-count indictment charging Dante Phearse, 33, with calling in bomb threats to two Houston synagogues, a municipal courthouse, and a private business.
Phearse, of Houston, has been charged with two civil rights violations for threat of force with an explosive device against two synagogues, which allegedly obstructed members of the synagogues from enjoying the free exercise of their religious beliefs. Phearse is also charged with four counts of using an instrument of interstate commerce to communicate a threat to kill and injure people and destroy a building by means of an explosive device.
The indictment alleges that on April 30, 2013, Phearse telephoned two different synagogues in Houston, Congregation Beth Israel and Congregation Or Ami, and left voicemails threatening to bomb the buildings and cause other harms to the members. According to the indictment, on the same day, Phearse also called in and threatened to bomb the City of Houston Municipal Courts building and a private business.
If convicted, Phearse faces a statutory maximum penalty of 20 years in prison for each civil rights violation and a statutory maximum penalty of 10 years in prison for each count of making bomb threats over the phone. Phearse has been in custody since his arrest. He is expected to make an initial appearance on the indictment in the near future, at which time the U.S. expects to request his continued detention pending trial.
This case is being investigated by the Houston Division of the FBI in cooperation with the Houston Police Department. It is being prosecuted by Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division and Assistant U.S. Attorneys Ruben Perez and Joe Magliolo of the Southern District of Texas in cooperation with the Harris County District Attorney’s Office.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty through due process of law.
Phearse, of Houston, has been charged with two civil rights violations for threat of force with an explosive device against two synagogues, which allegedly obstructed members of the synagogues from enjoying the free exercise of their religious beliefs. Phearse is also charged with four counts of using an instrument of interstate commerce to communicate a threat to kill and injure people and destroy a building by means of an explosive device.
The indictment alleges that on April 30, 2013, Phearse telephoned two different synagogues in Houston, Congregation Beth Israel and Congregation Or Ami, and left voicemails threatening to bomb the buildings and cause other harms to the members. According to the indictment, on the same day, Phearse also called in and threatened to bomb the City of Houston Municipal Courts building and a private business.
If convicted, Phearse faces a statutory maximum penalty of 20 years in prison for each civil rights violation and a statutory maximum penalty of 10 years in prison for each count of making bomb threats over the phone. Phearse has been in custody since his arrest. He is expected to make an initial appearance on the indictment in the near future, at which time the U.S. expects to request his continued detention pending trial.
This case is being investigated by the Houston Division of the FBI in cooperation with the Houston Police Department. It is being prosecuted by Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division and Assistant U.S. Attorneys Ruben Perez and Joe Magliolo of the Southern District of Texas in cooperation with the Harris County District Attorney’s Office.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty through due process of law.
Jury Convicts Gunman of Beaumont Carjackings
BEAUMONT, TX—A 22-year-old Beaumont man has been convicted of multiple crimes related to an armed carjacking spree in April 2012 in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Timothy Wayne Harris, Jr., a/k/a “J,” was found guilty by a jury following a three-day trial before U.S. District Judge Thad Heartfield.
According to information presented in court, on April 17-18, 2012, Harris and Jerry Lee Edwards, 38, went on a crime spree outside a Beaumont restaurant and convenience store, Carl’s Jr. and the Calder Food Mart. On May 2, 2012, a federal grand jury indicted Harris and Edwards and charged them with two counts of carjacking, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit carjacking. The men have been detained since their arrests on April 24, 2012. The case was delayed for 17 months by psychiatric examinations of Harris, who was the gunman and leader of the offenses. Late last year, Harris was determined to be competent to stand trial.
The jury today convicted Harris of all five counts. Harris faces a sentence of between 50 years and life in federal prison. Edwards pleaded guilty in January to conspiracy to commit carjacking, admitting that he knowingly joined in the crimes. Edwards faces up to five years in federal prison. Sentencing dates have not been set.
This case was prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
The case was investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John B. Ross and Special Assistant U.S. Attorney Catherine Cockrell.
Timothy Wayne Harris, Jr., a/k/a “J,” was found guilty by a jury following a three-day trial before U.S. District Judge Thad Heartfield.
According to information presented in court, on April 17-18, 2012, Harris and Jerry Lee Edwards, 38, went on a crime spree outside a Beaumont restaurant and convenience store, Carl’s Jr. and the Calder Food Mart. On May 2, 2012, a federal grand jury indicted Harris and Edwards and charged them with two counts of carjacking, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit carjacking. The men have been detained since their arrests on April 24, 2012. The case was delayed for 17 months by psychiatric examinations of Harris, who was the gunman and leader of the offenses. Late last year, Harris was determined to be competent to stand trial.
The jury today convicted Harris of all five counts. Harris faces a sentence of between 50 years and life in federal prison. Edwards pleaded guilty in January to conspiracy to commit carjacking, admitting that he knowingly joined in the crimes. Edwards faces up to five years in federal prison. Sentencing dates have not been set.
This case was prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
The case was investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John B. Ross and Special Assistant U.S. Attorney Catherine Cockrell.
Cambria County Man Sentenced for Narcotics and Firearms Violations
JOHNSTOWN, PA—A resident of Johnstown, Pennsylvania has been sentenced in federal court to 120 months in prison and three years’ supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Gerald P. Carr, 32.
According to information presented to the court, on February 1, 2013, Carr possessed with intent to distribute less than 100 grams of heroin and was found in possession of a Marlin Firearms Co., model 45 Camp Carbine, .45 caliber rifle. On February 19, 2007 , Carr was convicted in Cambria Co., Pennsylvania, of delivery of cocaine, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Johnstown Police Department for the investigation leading to the successful prosecution of Carr.
According to Mr. Hickton, this case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
United States District Judge Kim R. Gibson imposed the sentence on Gerald P. Carr, 32.
According to information presented to the court, on February 1, 2013, Carr possessed with intent to distribute less than 100 grams of heroin and was found in possession of a Marlin Firearms Co., model 45 Camp Carbine, .45 caliber rifle. On February 19, 2007 , Carr was convicted in Cambria Co., Pennsylvania, of delivery of cocaine, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Johnstown Police Department for the investigation leading to the successful prosecution of Carr.
According to Mr. Hickton, this case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Alleged Cosi Robber Indicted
Ronald Stone, 29, of Philadelphia, Pennsylvania, was charged today by superseding indictment with three robberies or attempted robberies at various Cosi stores, announced United States Attorney Zane David Memeger. Stone was added to an indictment charging James Pray. According to the indictment, on December 3, 2013, Stone and Pray robbed the Cosi store at 235 S. 15th Street in Philadelphia; on December 9, 2013, they allegedly attempted to rob the Cosi at 140 S. 36th Street in Philadelphia; and on December 24, 2013, they allegedly robbed the Cosi at 235 S. 15th Street in Philadelphia. The pair is also charged with using a handgun during the two robberies.
If convicted, each defendant faces a mandatory minimum of 32 years in prison with a maximum sentence of life, as well as five years of supervised release, a substantial fine, a special assessment, restitution, and forfeiture of the firearm and ammunition.
This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
If convicted, each defendant faces a mandatory minimum of 32 years in prison with a maximum sentence of life, as well as five years of supervised release, a substantial fine, a special assessment, restitution, and forfeiture of the firearm and ammunition.
This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lehigh Valley Doctor Indicted on Tax Charges
Dennis Erik Fluck Von Kiel, 57, of Macungie and New Tripoli, Pennsylvania, the former medical director of Lehigh County Prison (LCP), was formally indicted today on one count of conspiracy to defraud the United States and five counts of attempting to evade or defeat federal taxes, announced United States Attorney Zane David Memeger. Von Kiel has been held without bail at the Federal Detention Center since his arrest on February 28, 2014, on a federal criminal complaint.
Von Kiel is a doctor of osteopathy whose medical practice included treating inmates at LCP from approximately March 1989 until approximately August 2013. According to the indictment, Von Kiel earned wages of more than $200,000 a year from 2008 through 2012 and paid no federal taxes during any of those years. Von Kiel had represented that he was exempt from federal taxes because he was a minister of a religious institution called the International Academy of Lymphology (and its successors, the International Academy of Life and the Christian Forum Assembly Church) and had taken a “vow of poverty.”
It is further alleged that Von Kiel directed his employer to deposit his bi-weekly paychecks into bank accounts for his “church,” and once the money arrived in those accounts, co-conspirators would transfer nearly the same amount of money into Pennsylvania bank accounts controlled by Von Kiel. Von Kiel then allegedly used that money to pay for all of his family’s day-to-day living expenses and to buy some unusual items, such as a batting cage for his sons, all while purportedly living under his “vow of poverty.”
If convicted, Von Kiel faces a maximum possible sentence of 30 years in prison, up to three years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
This case was investigated by Internal Revenue Service-Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Von Kiel is a doctor of osteopathy whose medical practice included treating inmates at LCP from approximately March 1989 until approximately August 2013. According to the indictment, Von Kiel earned wages of more than $200,000 a year from 2008 through 2012 and paid no federal taxes during any of those years. Von Kiel had represented that he was exempt from federal taxes because he was a minister of a religious institution called the International Academy of Lymphology (and its successors, the International Academy of Life and the Christian Forum Assembly Church) and had taken a “vow of poverty.”
It is further alleged that Von Kiel directed his employer to deposit his bi-weekly paychecks into bank accounts for his “church,” and once the money arrived in those accounts, co-conspirators would transfer nearly the same amount of money into Pennsylvania bank accounts controlled by Von Kiel. Von Kiel then allegedly used that money to pay for all of his family’s day-to-day living expenses and to buy some unusual items, such as a batting cage for his sons, all while purportedly living under his “vow of poverty.”
If convicted, Von Kiel faces a maximum possible sentence of 30 years in prison, up to three years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
This case was investigated by Internal Revenue Service-Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Solon Man Charged with Defrauding Parker Hannifin of $1.5 Million
A 15-count criminal indictment was filed charging a Solon man with defrauding his former employer of nearly $1.5 million, law enforcement officials said.
John A. Miller, 53, was charged with one count of conspiracy to commit mail fraud, nine counts of mail fraud, three counts of tax evasion, and two counts of money laundering in connection with a scheme to defraud Parker Hannifin Corp.
“This defendant is accused of running a scheme in which he stole nearly $1.5 million from his employer,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This type of self-dealing is not fair to workers or shareholders and will not be tolerated.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, said: “Mr. Miller put a lot of effort into orchestrating and maintaining this seven year fraudulent scheme. Law enforcement will continue efforts to follow the money trial to ensure financial fraudsters are brought to justice.”
“Fraud and embezzlement schemes harm everyone,” said Kathy Enstrom, Special Agent in Charge, IRS-Cincinnati Field Office. “As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer financial harm.”
Miller worked at Parker Hannifin Corp. (PHC) for 25 years, where he directed work to outside contractors. In 2002, he approached his neighbor, Nancy Seaman, to do IT work for PHC, according to the indictment.
To do this, Seaman established Digital Design Services Inc., which she operated out of her residence in Solon. In 2004, Miller approached R.K. (not charged herein), who owned and operated a billing company in Pennsylvania that had previously been a subcontractor for PHC. Miller requested that R.K. and his billing company prepare invoices and billings for PHC, and R.K. agreed to do so, according to the indictment.
Beginning around 2004, Miller engaged in a fraudulent scheme to increase the payment he was receiving from PHC by using subcontractors Seaman and R.K. to funnel payments to himself. He did his despite having a salaried position at PHC and without the knowledge or consent of PHC, according to the indictment.
Miller did this by falsely inflating the invoices submitted by Digital Design and Seaman and by asking R.K. to process payments and to pay subcontractors as designated by Miller. Under this arrangement, Miller submitted invoices in the names of Miller’s wife and son, even though neither had done any of the work submitted in these invoices nor were they even aware that Miller was using their names to submit such billings to PHC, according to the indictment. Miller caused a loss to PHC of approximately $1,489,494 between 2004 through 2011, according to the indictment.
Seaman was aware that additional amounts, over and above her Digital Design billings, were being sent to her. Miller instructed Seaman to pay these additional funds to him in cash, less a 30 percent commission to Seaman, according to the indictment.
Seaman previously pleaded guilty in U.S. District Court to conspiring with Miller to conceal Miller’s tax liability from the Internal Revenue Service and to conspiring with Miller to commit wire fraud in a scheme to defraud Parker Hannifin. She is awaiting sentencing.
Miller is also charged with money laundering for using the funds he stole from Parker Hannifin Corporation to pay his tax liabilities to the IRS and to pay for his son’s tuition at Cornell University, according to the indictment.
Miller is also charged with tax evasion for calendar years 2009 to 2011. During the calendar year 2009, Miller received approximately $192,042 in taxable income, and owed approximately $30,568 in income tax; during the calendar year 2010, Miller received approximately $378,571 in taxable income, and owed approximately $93,745 in income tax; and during the calendar year 2011, Miller had received approximately $217,060 in taxable income and owed approximately $43,488.00 in income tax, according to the indictment.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations in Cleveland and is being handled by Assistant U.S. Attorney Christian H. Stickan.
If convicted, the defendants’ sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
John A. Miller, 53, was charged with one count of conspiracy to commit mail fraud, nine counts of mail fraud, three counts of tax evasion, and two counts of money laundering in connection with a scheme to defraud Parker Hannifin Corp.
“This defendant is accused of running a scheme in which he stole nearly $1.5 million from his employer,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This type of self-dealing is not fair to workers or shareholders and will not be tolerated.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, said: “Mr. Miller put a lot of effort into orchestrating and maintaining this seven year fraudulent scheme. Law enforcement will continue efforts to follow the money trial to ensure financial fraudsters are brought to justice.”
“Fraud and embezzlement schemes harm everyone,” said Kathy Enstrom, Special Agent in Charge, IRS-Cincinnati Field Office. “As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer financial harm.”
Miller worked at Parker Hannifin Corp. (PHC) for 25 years, where he directed work to outside contractors. In 2002, he approached his neighbor, Nancy Seaman, to do IT work for PHC, according to the indictment.
To do this, Seaman established Digital Design Services Inc., which she operated out of her residence in Solon. In 2004, Miller approached R.K. (not charged herein), who owned and operated a billing company in Pennsylvania that had previously been a subcontractor for PHC. Miller requested that R.K. and his billing company prepare invoices and billings for PHC, and R.K. agreed to do so, according to the indictment.
Beginning around 2004, Miller engaged in a fraudulent scheme to increase the payment he was receiving from PHC by using subcontractors Seaman and R.K. to funnel payments to himself. He did his despite having a salaried position at PHC and without the knowledge or consent of PHC, according to the indictment.
Miller did this by falsely inflating the invoices submitted by Digital Design and Seaman and by asking R.K. to process payments and to pay subcontractors as designated by Miller. Under this arrangement, Miller submitted invoices in the names of Miller’s wife and son, even though neither had done any of the work submitted in these invoices nor were they even aware that Miller was using their names to submit such billings to PHC, according to the indictment. Miller caused a loss to PHC of approximately $1,489,494 between 2004 through 2011, according to the indictment.
Seaman was aware that additional amounts, over and above her Digital Design billings, were being sent to her. Miller instructed Seaman to pay these additional funds to him in cash, less a 30 percent commission to Seaman, according to the indictment.
Seaman previously pleaded guilty in U.S. District Court to conspiring with Miller to conceal Miller’s tax liability from the Internal Revenue Service and to conspiring with Miller to commit wire fraud in a scheme to defraud Parker Hannifin. She is awaiting sentencing.
Miller is also charged with money laundering for using the funds he stole from Parker Hannifin Corporation to pay his tax liabilities to the IRS and to pay for his son’s tuition at Cornell University, according to the indictment.
Miller is also charged with tax evasion for calendar years 2009 to 2011. During the calendar year 2009, Miller received approximately $192,042 in taxable income, and owed approximately $30,568 in income tax; during the calendar year 2010, Miller received approximately $378,571 in taxable income, and owed approximately $93,745 in income tax; and during the calendar year 2011, Miller had received approximately $217,060 in taxable income and owed approximately $43,488.00 in income tax, according to the indictment.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations in Cleveland and is being handled by Assistant U.S. Attorney Christian H. Stickan.
If convicted, the defendants’ sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Charlotte Mayor Arrested on Federal Public Corruption Charges
CHARLOTTE, NC—Charlotte Mayor Patrick DeAngelo Cannon was arrested today by FBI agents for alleged violations of federal public corruption laws, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The federal criminal complaint filed in U.S. District Court charges Cannon, 47, of Charlotte, with theft and bribery concerning programs receiving federal funds, honest services wire fraud, and extortion under color of official right.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Tompkins in making today’s announcement.
According to allegations contained in the charging document and the affidavit filed in support of the criminal complaint, during the course of a separate criminal investigation, the FBI received reliable information that Cannon was potentially involved in illegal activities associated with his position as an elected official and began an undercover investigation in or about August 2010. The complaint and affidavit allege that during the course of that investigation, Cannon allegedly solicited and accepted money bribes and things of value from undercover FBI agents, posing as commercial real estate developers and investors wishing to do business in Charlotte. As alleged in the filed documents, Cannon solicited and accepted such bribes and things of value in exchange for the use of his official position as Charlotte mayor, mayor pro tem, and/or as a city council member.
The complaint and law enforcement affidavit allege that Cannon accepted the bribes from the undercover FBI agents on five separate occasions. On the last occasion, on February 21, 2014, Cannon allegedly accepted $20,000 in cash in the mayor’s office. According to the complaint and the affidavit, between January 2013 and February 2014, Cannon allegedly accepted from the undercover agents more than $48,000 in cash, airline tickets, a hotel room, and use of a luxury apartment in exchange for the use of his official position.
Cannon had his initial appearance today and has been released on bond, pending indictment. The charge of theft and bribery concerning programs receiving federal funds carries a statutory maximum sentence of 10 years in prison and a $250,000 fine; the charge of honest services wire fraud carries a statutory maximum sentence of not more than 20 years in prison and a $1,000,000 fine; and the charge of extortion under color of official right carries a statutory maximum sentence of not more than 20 years in prison and a $250,000 fine.
The charges contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorney Michael E. Savage of the U.S. Attorney’s Office for the Western District of North Carolina. The case is being investigated by the Federal Bureau of Investigation.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Tompkins in making today’s announcement.
According to allegations contained in the charging document and the affidavit filed in support of the criminal complaint, during the course of a separate criminal investigation, the FBI received reliable information that Cannon was potentially involved in illegal activities associated with his position as an elected official and began an undercover investigation in or about August 2010. The complaint and affidavit allege that during the course of that investigation, Cannon allegedly solicited and accepted money bribes and things of value from undercover FBI agents, posing as commercial real estate developers and investors wishing to do business in Charlotte. As alleged in the filed documents, Cannon solicited and accepted such bribes and things of value in exchange for the use of his official position as Charlotte mayor, mayor pro tem, and/or as a city council member.
The complaint and law enforcement affidavit allege that Cannon accepted the bribes from the undercover FBI agents on five separate occasions. On the last occasion, on February 21, 2014, Cannon allegedly accepted $20,000 in cash in the mayor’s office. According to the complaint and the affidavit, between January 2013 and February 2014, Cannon allegedly accepted from the undercover agents more than $48,000 in cash, airline tickets, a hotel room, and use of a luxury apartment in exchange for the use of his official position.
Cannon had his initial appearance today and has been released on bond, pending indictment. The charge of theft and bribery concerning programs receiving federal funds carries a statutory maximum sentence of 10 years in prison and a $250,000 fine; the charge of honest services wire fraud carries a statutory maximum sentence of not more than 20 years in prison and a $1,000,000 fine; and the charge of extortion under color of official right carries a statutory maximum sentence of not more than 20 years in prison and a $250,000 fine.
The charges contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorney Michael E. Savage of the U.S. Attorney’s Office for the Western District of North Carolina. The case is being investigated by the Federal Bureau of Investigation.
Six Individuals Associated with the Newspaper and Mail Deliverers’ Union Arrested
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Benjamin Castellazzo, Jr.; Rocco Giangregorio; Glenn LaChance, Rocco Miraglia, also known as “Irving,” and Anthony Turzio, also known as “the Irish Guy,” with conspiring to defraud the Newspaper and Mail Deliverers’ Union (NMDU) and Hudson News in order to obtain a union card and employment at Hudson News for Castellazzo, Jr.
In addition, a three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Thomas Leonessa, also known as “Tommy Stacks,” with wire fraud, wire fraud conspiracy, and theft and embezzlement from employee benefit plans in an unrelated scheme. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on March 6, 2014, and relates to Leonessa’s alleged “no show” job as a delivery driver for the New York Post.
Castellazzo, Jr., Giangregorio, LaChance, Miraglia, Turzio, and Leonessa were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Robert M. Levy at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office.
As alleged in the complaint, the NMDU is an independent union that represents approximately 1,500 employees involved in the newspaper industry in New York, New Jersey, and Connecticut. NMDU members deliver newspapers for the New York Times, The Wall Street Journal, the New York Daily News, the New York Post, and El Diario. Hudson News, which also employs members of the NMDU, is a retail chain of newsstands mainly located in major transportation hubs, including airports and train stations.
Between June 2009 and October 2009, Miraglia, who was a foreman at the New York Daily News—as well as an alleged associate of the Colombo organized crime family of La Cosa Nostra and the son of a deceased soldier in the Colombo family—conspired with officials of the NMDU and with Turzio, who was an employee of El Diario, to get an NMDU union card for Castellazzo, Jr. and place him in a job at Hudson News. Castellazzo, Jr. is the son of Benjamin Castellazzo, the alleged underboss of the Colombo family. Giangregorio and LaChance, who were business agents for the NMDU, also are charged with participating in this scheme.
As alleged in the indictment, Leonessa was employed by the New York Post to deliver newspapers by truck from a New York Post warehouse in the Bronx, New York, to New Jersey. He was also a member of the NMDU, which maintained offices, including offices for its welfare and pension funds, in Queens, New York. From about December 2010 to about September 2011, Leonessa had a “no show” job at the New York Post, that is, a job for which he was paid wages and benefits but which he did not perform. When Leonessa did not complete his required deliveries, he was nevertheless, based on his fraudulent representations, paid wages by the New York Post and accorded benefits from employee pension and welfare funds managed by the NMDU.
“Today’s arrests indicate that the NMDU and the newspaper delivery industry are, sadly, still subject to the influence of organized crime,” stated United States Attorney Lynch. “We cannot tolerate corruption in that industry, which is relied on by newspaper readers throughout New York City and beyond. We will prosecute anyone who seeks to obtain employment—or to maintain “no show” employment—in that industry by trading on the power of organized crime. Such acts not only lead to ill-gotten gains, but they also displace innocent, hard-working union members and would-be union members from jobs they have rightfully earned. We thank our partners at the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, for their tremendous efforts to identify and root out these corrupt practices.” Ms. Lynch also extended her grateful appreciation to the New York City Police Department, the New York County District Attorney’s Office, and Waterfront Commission of New York Harbor for their assistance.
“As alleged, a paycheck in exchange for a hard day’s work was a foreign concept to these defendants. Instead, they engaged in a scheme to defraud the NMDU and Hudson News for easy money and personal gain. The FBI, along with its law enforcement partners, will continue to pursue allegations of corruption and fraud all levels,” stated FBI Assistant Director in Charge Venizelos.
The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The charges in the complaint and indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth A. Geddes and Allon Lifshitz and by Trial Attorney Joseph Wheatley of the Department of Justice’s Organized Crime and Gangs Section.
Defendants:
Benjamin Castellazzo, Jr.
Age: 48
Manahawkin, New Jersey
Rocco Giangregorio
Age: 39
Dumont, New Jersey
Glenn LaChance
Age: 50
Oceanside, New York
Rocco Miraglia
Age: 43
Staten Island, New York
Anthony Turzio
Age: 78
New York, New York
Thomas Leonessa
Age: 52
High Bridge, New Jersey
In addition, a three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Thomas Leonessa, also known as “Tommy Stacks,” with wire fraud, wire fraud conspiracy, and theft and embezzlement from employee benefit plans in an unrelated scheme. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on March 6, 2014, and relates to Leonessa’s alleged “no show” job as a delivery driver for the New York Post.
Castellazzo, Jr., Giangregorio, LaChance, Miraglia, Turzio, and Leonessa were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Robert M. Levy at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office.
As alleged in the complaint, the NMDU is an independent union that represents approximately 1,500 employees involved in the newspaper industry in New York, New Jersey, and Connecticut. NMDU members deliver newspapers for the New York Times, The Wall Street Journal, the New York Daily News, the New York Post, and El Diario. Hudson News, which also employs members of the NMDU, is a retail chain of newsstands mainly located in major transportation hubs, including airports and train stations.
Between June 2009 and October 2009, Miraglia, who was a foreman at the New York Daily News—as well as an alleged associate of the Colombo organized crime family of La Cosa Nostra and the son of a deceased soldier in the Colombo family—conspired with officials of the NMDU and with Turzio, who was an employee of El Diario, to get an NMDU union card for Castellazzo, Jr. and place him in a job at Hudson News. Castellazzo, Jr. is the son of Benjamin Castellazzo, the alleged underboss of the Colombo family. Giangregorio and LaChance, who were business agents for the NMDU, also are charged with participating in this scheme.
As alleged in the indictment, Leonessa was employed by the New York Post to deliver newspapers by truck from a New York Post warehouse in the Bronx, New York, to New Jersey. He was also a member of the NMDU, which maintained offices, including offices for its welfare and pension funds, in Queens, New York. From about December 2010 to about September 2011, Leonessa had a “no show” job at the New York Post, that is, a job for which he was paid wages and benefits but which he did not perform. When Leonessa did not complete his required deliveries, he was nevertheless, based on his fraudulent representations, paid wages by the New York Post and accorded benefits from employee pension and welfare funds managed by the NMDU.
“Today’s arrests indicate that the NMDU and the newspaper delivery industry are, sadly, still subject to the influence of organized crime,” stated United States Attorney Lynch. “We cannot tolerate corruption in that industry, which is relied on by newspaper readers throughout New York City and beyond. We will prosecute anyone who seeks to obtain employment—or to maintain “no show” employment—in that industry by trading on the power of organized crime. Such acts not only lead to ill-gotten gains, but they also displace innocent, hard-working union members and would-be union members from jobs they have rightfully earned. We thank our partners at the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, for their tremendous efforts to identify and root out these corrupt practices.” Ms. Lynch also extended her grateful appreciation to the New York City Police Department, the New York County District Attorney’s Office, and Waterfront Commission of New York Harbor for their assistance.
“As alleged, a paycheck in exchange for a hard day’s work was a foreign concept to these defendants. Instead, they engaged in a scheme to defraud the NMDU and Hudson News for easy money and personal gain. The FBI, along with its law enforcement partners, will continue to pursue allegations of corruption and fraud all levels,” stated FBI Assistant Director in Charge Venizelos.
The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The charges in the complaint and indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth A. Geddes and Allon Lifshitz and by Trial Attorney Joseph Wheatley of the Department of Justice’s Organized Crime and Gangs Section.
Defendants:
Benjamin Castellazzo, Jr.
Age: 48
Manahawkin, New Jersey
Rocco Giangregorio
Age: 39
Dumont, New Jersey
Glenn LaChance
Age: 50
Oceanside, New York
Rocco Miraglia
Age: 43
Staten Island, New York
Anthony Turzio
Age: 78
New York, New York
Thomas Leonessa
Age: 52
High Bridge, New Jersey
Final Defendant Pleads Guilty to RICO Conspiracy and Gun Charge on Eve of Scheduled Trial
BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Tony Peebles, 27, of Buffalo, New York, pleaded guilty to Racketeer Influenced Corrupt Organizations (RICO) and discharging a firearm during a crime of violence before U.S. District Judge Richard J. Arcara. The charges carry a minimum penalty of 10 years in prison, a maximum of life, a $250,000 fine or both.
“For the past several years, this office has been relentless in its pursuit of violent gang members and narcotics traffickers,” said U.S. Attorney Hochul. “The results speak for themselves with more than a 150 predators behind bars, dozens of violent crimes solved and ever declining violent crime rates across the District. Let today’s developments and likely sentence be heard loud and clear by any remaining gang members—your days are numbered.”
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant participated in seven shootings during which eight victims were struck by bullets, some suffering life threatening injuries. Between 2000 and 2010, Peebles was a member of the 10th Street Gang. As a part of their involvement in the gang, the defendants, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo. The violent acts by members of the 10th Street Gang included two murders.
The defendant is among 44 10th Street Gang members and associates charged in this case. A total of 38 have been convicted. Charges are pending against the six remaining defendants. 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 Federal Bureau of Investigation; the New York State Police, under the direction of Major Michael Cerretto; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
Sentencing is scheduled for July 30, 2014 at 1:00 p.m. before Judge Arcara.
“For the past several years, this office has been relentless in its pursuit of violent gang members and narcotics traffickers,” said U.S. Attorney Hochul. “The results speak for themselves with more than a 150 predators behind bars, dozens of violent crimes solved and ever declining violent crime rates across the District. Let today’s developments and likely sentence be heard loud and clear by any remaining gang members—your days are numbered.”
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant participated in seven shootings during which eight victims were struck by bullets, some suffering life threatening injuries. Between 2000 and 2010, Peebles was a member of the 10th Street Gang. As a part of their involvement in the gang, the defendants, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo. The violent acts by members of the 10th Street Gang included two murders.
The defendant is among 44 10th Street Gang members and associates charged in this case. A total of 38 have been convicted. Charges are pending against the six remaining defendants. 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 Federal Bureau of Investigation; the New York State Police, under the direction of Major Michael Cerretto; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
Sentencing is scheduled for July 30, 2014 at 1:00 p.m. before Judge Arcara.
Thursday, March 27, 2014
Fugitive Sought in Vehicular Homicide Case
ATLANTA—Special Agent in Charge J. Britt Johnson, FBI Atlanta Field Office, requests the public’s assistance in locating the following federal fugitive charged with vehicular homicide that took the life of a 16-year-old young man in 2000.
On June 16, 2000, in Gilmer County, Georgia, Billy Inman had stopped for a red light behind another vehicle at an intersection. Inman was accompanied by his son, wife, and dog. While waiting at the intersection, Inman’s vehicle was struck from behind by a vehicle driven by Gonzalez Gonzalo Harrell. The speedometer of Harrell’s vehicle was later found to be fixed at approximately 62 miles per hour.
The collision caused by Harrell killed Inman’s 16-year-old son, Dustin Inman, and their family dog. Inman’s wife sustained lifelong crippling injuries. Both Inman and Harrell were transported to a nearby hospital for medical treatment.
During medical treatment, Harrell fled the hospital.
On January,19, 2001, Harrell was indicted by a Gilmer County, Georgia grand jury charging him with homicide by vehicle in the first degree (one count), serious injury by vehicle (two counts), and reckless driving (one count).
On June 2, 2002, a federal Unlawful Flight to Avoid Prosecution warrant was obtained by FBI Atlanta’s Rome Resident Agency.
Harrell, a Mexican national, is described as follows:
Gonzalez Gonzalo Harrell
Crime Stoppers Atlanta is offering a reward of up to $2,000 for information in this matter. Anyone with information in this matter should contact Crime Stoppers Atlanta at (404) 577-TIPS (8477).
The public is reminded that the above are merely allegations and that all persons are to be presumed innocent until proven guilty in a court of law.
On June 16, 2000, in Gilmer County, Georgia, Billy Inman had stopped for a red light behind another vehicle at an intersection. Inman was accompanied by his son, wife, and dog. While waiting at the intersection, Inman’s vehicle was struck from behind by a vehicle driven by Gonzalez Gonzalo Harrell. The speedometer of Harrell’s vehicle was later found to be fixed at approximately 62 miles per hour.
The collision caused by Harrell killed Inman’s 16-year-old son, Dustin Inman, and their family dog. Inman’s wife sustained lifelong crippling injuries. Both Inman and Harrell were transported to a nearby hospital for medical treatment.
During medical treatment, Harrell fled the hospital.
On January,19, 2001, Harrell was indicted by a Gilmer County, Georgia grand jury charging him with homicide by vehicle in the first degree (one count), serious injury by vehicle (two counts), and reckless driving (one count).
On June 2, 2002, a federal Unlawful Flight to Avoid Prosecution warrant was obtained by FBI Atlanta’s Rome Resident Agency.
Harrell, a Mexican national, is described as follows:
- Name: Gonzalez Gonzalo Harrell
- Alias: Gonzalo Harrell, Gonzalo Herrell, Gonzalo Harrell-Gonzalez
- Race: White/Hispanic
- Sex: Male
- Age: 46
- Height: 5’8”
- Weight: 150 lbs.
- Hair: Black
- Eyes: Brown
- Place of Birth: Mexico
Gonzalez Gonzalo Harrell
The public is reminded that the above are merely allegations and that all persons are to be presumed innocent until proven guilty in a court of law.
Additional Photos Released of Relisha Rudd and Kahlil Tatum
Related information/updates:
Law enforcement authorities today released additional photographs of missing 8-year old Relisha Tenau Rudd, described as a black female, 4’0” tall, weighing approximately 70 to 80 pounds, with black hair, brown eyes, and a medium complexion.
Relisha Tenau Rudd
Law enforcement authorities also released an additional photograph of Kahlil Malik Tatum, of the 2500 block of N Street in Southeast Washington, and are seeking information about this individual in connection with this investigation. Tatum is described as a black male, 5’7” tall, and 170 pounds.
Kahlil Malik Tatum
An arrest warrant has been issued in Prince George’s County, Maryland for 51-year-old Tatum in connection for the murder of his wife, 51-year-old Andrea Denise Tatum, also of N Street, Southeast Washington. The victim was discovered in a motel room in the 6100 block of Oxon Hill Road on Thursday, March 20, 2014. A reward of up to $25,000 is offered to anyone who provides information leading to an arrest and indictment in this case.
- Press release: Authorities Release Video Surveillance of Kahlil Malik Tatum and Relisha Tenau Rudd
- Press release: FBI Announces Reward for Information on Missing 8-Year-Old
- Missing person poster: Relisha Tenau Rudd
Law enforcement authorities today released additional photographs of missing 8-year old Relisha Tenau Rudd, described as a black female, 4’0” tall, weighing approximately 70 to 80 pounds, with black hair, brown eyes, and a medium complexion.
Relisha Tenau Rudd
Kahlil Malik Tatum
The investigation is being conducted jointly by the Metropolitan Police Department, Prince George’s County (Maryland) Police Department, and the FBI’s Washington Field Office. Anyone with information is asked to call their local law enforcement or the FBI.
Related information/updates:FBI Announces Reward for Information on Missing 8-Year-Old
Related information/updates:
The FBI has announced a reward of up to $25,000 for information leading to the location and return of missing 8-year-old Relisha Tenau Rudd, described as a black female, 4’0” tall, weighing approximately 70 to 80 pounds, with black hair, brown eyes, and a medium complexion.
Law enforcement authorities are seeking information about Kahlil Malik Tatum, of the 2500 block of N Street in Southeast Washington, in connection with this investigation. Tatum is described as a black male, 5’7” tall, and 170 pounds.
An arrest warrant has been issued in Prince George’s County, Maryland, for 51-year-old Tatum for the murder of his wife, 51-year-old Andrea Denise Tatum, also of N Street, Southeast Washington. The victim was discovered in a motel room in the 6100 block of Oxon Hill Road on Thursday, March 20, 2014. A separate reward of up to $25,000 is offered by Prince’s George’s County Police Department to anyone who provides information leading to an arrest and indictment in this case.
The investigation is being conducted jointly by the Metropolitan Police Department, Prince George’s County (Maryland) Police Department, and the FBI’s Washington Field Office. Anyone with information is asked to call their local law enforcement or the FBI.
Related information/updates:
- Press release: Authorities Release Video Surveillance of Kahlil Malik Tatum and Relisha Tenau Rudd
- Press release: Additional Photos Released of Relisha Rudd and Kahlil Tatum
- Missing person poster: Relisha Tenau Rudd
Law enforcement authorities are seeking information about Kahlil Malik Tatum, of the 2500 block of N Street in Southeast Washington, in connection with this investigation. Tatum is described as a black male, 5’7” tall, and 170 pounds.
An arrest warrant has been issued in Prince George’s County, Maryland, for 51-year-old Tatum for the murder of his wife, 51-year-old Andrea Denise Tatum, also of N Street, Southeast Washington. The victim was discovered in a motel room in the 6100 block of Oxon Hill Road on Thursday, March 20, 2014. A separate reward of up to $25,000 is offered by Prince’s George’s County Police Department to anyone who provides information leading to an arrest and indictment in this case.
The investigation is being conducted jointly by the Metropolitan Police Department, Prince George’s County (Maryland) Police Department, and the FBI’s Washington Field Office. Anyone with information is asked to call their local law enforcement or the FBI.
Related information/updates:
Authorities Release Video Surveillance of Kahlil Malik Tatum and Relisha Tenau Rudd
Related information/updates:
Law enforcement authorities today released surveillance footage of Kahlil Malik Tatum and missing 8-year-old Relisha Tenau Rudd taken on Wednesday, February 26, 2014, at the Holiday Inn Express located at 1917 Bladensburg Road NE, Washington, D.C.
The video shows Tatum and Rudd walking down a hallway in the hotel. Rudd is wearing a pair of pink boots and a purple Helly Hansen brand jacket with white stripes. The public is being asked to view the video and to contact law enforcement if they have seen either individual.
The FBI is offering a reward of up to $25,000 for information leading to the location and return of missing 8-year-old Relisha Tenau Rudd.
An arrest warrant has been issued in Prince George’s County, Maryland for 51-year-old Tatum, for the murder of his wife, 51-year-old Andrea Denise Tatum, also of N Street Southeast, Washington, D.C. The victim was discovered in a motel room in the 6100 block of Oxon Hill Road, Oxon Hill, Maryland, on Thursday, March 20, 2014. A separate reward of up to $25,000 is offered to anyone who provides information leading to an arrest and indictment in this case.
The investigation is being conducted jointly by the Metropolitan Police Department, Prince George’s County (Maryland) Police Department, and the FBI’s Washington Field Office. Anyone with information is asked to call their local law enforcement or the FBI.
Warning: Kahlil Tatum is considered armed and dangerous.
Related information/updates:
- Press release: FBI Announces Reward for Information on Missing 8-Year-Old
- Press release: Additional Photos Released of Relisha Rudd and Kahlil Tatum
- Missing person poster: Relisha Tenau Rudd
Law enforcement authorities today released surveillance footage of Kahlil Malik Tatum and missing 8-year-old Relisha Tenau Rudd taken on Wednesday, February 26, 2014, at the Holiday Inn Express located at 1917 Bladensburg Road NE, Washington, D.C.
| Download |
The video shows Tatum and Rudd walking down a hallway in the hotel. Rudd is wearing a pair of pink boots and a purple Helly Hansen brand jacket with white stripes. The public is being asked to view the video and to contact law enforcement if they have seen either individual.
The FBI is offering a reward of up to $25,000 for information leading to the location and return of missing 8-year-old Relisha Tenau Rudd.
An arrest warrant has been issued in Prince George’s County, Maryland for 51-year-old Tatum, for the murder of his wife, 51-year-old Andrea Denise Tatum, also of N Street Southeast, Washington, D.C. The victim was discovered in a motel room in the 6100 block of Oxon Hill Road, Oxon Hill, Maryland, on Thursday, March 20, 2014. A separate reward of up to $25,000 is offered to anyone who provides information leading to an arrest and indictment in this case.
The investigation is being conducted jointly by the Metropolitan Police Department, Prince George’s County (Maryland) Police Department, and the FBI’s Washington Field Office. Anyone with information is asked to call their local law enforcement or the FBI.
Warning: Kahlil Tatum is considered armed and dangerous.
Related information/updates:
Three New London Men Charged with Federal Offenses Stemming from 2012 Homicide
United States Attorney for the District of Connecticut Deirdre M. Daly, New London Police Chief Margaret Ackley; and Federal Bureau of Investigation New Haven Division Special Agent in Charge Patricia M. Ferrick today announced that a federal grand jury in New Haven returned an indictment yesterday charging three New London men with various offenses stemming from the September 2012 homicide of Javier Reyes, 36, of New London.
As alleged in the indictment, OSCAR VALENTIN, also known as “Tato,” 40, operated and managed a narcotics distribution enterprise at the “Green Garages,” a series of garage bays located as 12/14 Walker Street in New London. In the summer of 2011, VALENTIN was the intended victim of a murder-for-hire plot orchestrated by former members of his enterprise in an attempt to take over narcotics distribution at the Green Garages. In September 2012, VALENTIN hired NESTOR PAGAN, also known as “Ernie” and “Naeem Medina,” 31, ANDREW AVILES, also known as “P.A.” and “Papo,” 26, and others, to assault Javier Reyes in an attempt to maintain his position as head of the Green Garages conspiracy. On the evening of September 12, 2012, Reyes was stabbed multiple times outside of his apartment at 187 Huntington Street in New London, and died a short time later.
“This indictment alleges that Oscar Valentin orchestrated the brutal attack of Javier Reyes as part of his criminal drug dealing enterprise, while Nestor Pagan, Andrew Aviles, and others executed Valentine’s order,” stated U.S. Attorney Daly. “The investigation and prosecution of violent offenders is a top priority of the U.S. Attorney’s Office and our law enforcement partners. I commend our partners, the New London State’s Attorney’s Office, the New London Police Department, the FBI, the State Police, the Department of Correction, HSI, and Secret Service, for their thorough investigation that has led to these serious charges.”
“The New London Police Department is thankful to the FBI and U.S. Attorney’s office for their close working relationship on this case, and the combined effort of the Connecticut State Police Major Crime Squad, Homeland Security, and Secret Service for their efforts leading to this indictment,” stated New London Police Chief Ackley. “New London Detective Curcuro has been quietly working on this case with the FBI and U.S. Attorney’s office since September 2012 and we look forward to a continued working relationship.”
“Narcotics trafficking and the inescapable violent crimes associated with it plague our cities,” stated FBI Special Agent in Charge Ferrick. “Holding those accountable for crimes which impact quality of life for city residents is important to the FBI and to all our law enforcement partners. We stand shoulder-to-shoulder with the New London Police Department in working to bring some sense of relief to the victim’s family and the residents of New London. I’d like to thank the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, and the U.S. Secret Service, and the hard-working officers and agents assigned to this investigation, for they remain resolute in their pursuit of justice.”
The four-count indictment charges VALENTIN, PAGAN, and AVILES with one count of conspiracy to commit a violent crime in aid of racketeering, specifically an assault that resulted in serious bodily injury, and one count of committing a violent crime in aid of racketeering. The three defendants are also charged with using a facility in interstate commerce, namely a cellular telephone, with the intent to commit a crime of violence.
The indictment also charges VALENTIN and PAGAN with one count of conspiracy to distribute and to possess with intent to distribute cocaine.
If convicted of the charges, each defendant faces a maximum term of imprisonment of life.
VALENTIN has been in federal custody since his arrest on narcotics charges on April 3, 2013. PAGAN has been in federal custody since his arrest on unrelated firearms charges on December 13, 2012. AVILES is in state custody on unrelated charges.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the New London Police Department and the Federal Bureau of Investigation, with the assistance of the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, the U.S. Secret Service, and the New London State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Sarah Karwan, and Senior Assistant State’s Attorney Paul Narducci.
A principle of the Justice Department’s Smart on Crime initiative is the prioritization of prosecutions to focus on the most serious cases. To learn more about the Smart on Crime initiative visit http://www.justice.gov/ag/smart-on-crime.pdf.
As alleged in the indictment, OSCAR VALENTIN, also known as “Tato,” 40, operated and managed a narcotics distribution enterprise at the “Green Garages,” a series of garage bays located as 12/14 Walker Street in New London. In the summer of 2011, VALENTIN was the intended victim of a murder-for-hire plot orchestrated by former members of his enterprise in an attempt to take over narcotics distribution at the Green Garages. In September 2012, VALENTIN hired NESTOR PAGAN, also known as “Ernie” and “Naeem Medina,” 31, ANDREW AVILES, also known as “P.A.” and “Papo,” 26, and others, to assault Javier Reyes in an attempt to maintain his position as head of the Green Garages conspiracy. On the evening of September 12, 2012, Reyes was stabbed multiple times outside of his apartment at 187 Huntington Street in New London, and died a short time later.
“This indictment alleges that Oscar Valentin orchestrated the brutal attack of Javier Reyes as part of his criminal drug dealing enterprise, while Nestor Pagan, Andrew Aviles, and others executed Valentine’s order,” stated U.S. Attorney Daly. “The investigation and prosecution of violent offenders is a top priority of the U.S. Attorney’s Office and our law enforcement partners. I commend our partners, the New London State’s Attorney’s Office, the New London Police Department, the FBI, the State Police, the Department of Correction, HSI, and Secret Service, for their thorough investigation that has led to these serious charges.”
“The New London Police Department is thankful to the FBI and U.S. Attorney’s office for their close working relationship on this case, and the combined effort of the Connecticut State Police Major Crime Squad, Homeland Security, and Secret Service for their efforts leading to this indictment,” stated New London Police Chief Ackley. “New London Detective Curcuro has been quietly working on this case with the FBI and U.S. Attorney’s office since September 2012 and we look forward to a continued working relationship.”
“Narcotics trafficking and the inescapable violent crimes associated with it plague our cities,” stated FBI Special Agent in Charge Ferrick. “Holding those accountable for crimes which impact quality of life for city residents is important to the FBI and to all our law enforcement partners. We stand shoulder-to-shoulder with the New London Police Department in working to bring some sense of relief to the victim’s family and the residents of New London. I’d like to thank the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, and the U.S. Secret Service, and the hard-working officers and agents assigned to this investigation, for they remain resolute in their pursuit of justice.”
The four-count indictment charges VALENTIN, PAGAN, and AVILES with one count of conspiracy to commit a violent crime in aid of racketeering, specifically an assault that resulted in serious bodily injury, and one count of committing a violent crime in aid of racketeering. The three defendants are also charged with using a facility in interstate commerce, namely a cellular telephone, with the intent to commit a crime of violence.
The indictment also charges VALENTIN and PAGAN with one count of conspiracy to distribute and to possess with intent to distribute cocaine.
If convicted of the charges, each defendant faces a maximum term of imprisonment of life.
VALENTIN has been in federal custody since his arrest on narcotics charges on April 3, 2013. PAGAN has been in federal custody since his arrest on unrelated firearms charges on December 13, 2012. AVILES is in state custody on unrelated charges.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the New London Police Department and the Federal Bureau of Investigation, with the assistance of the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, the U.S. Secret Service, and the New London State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Sarah Karwan, and Senior Assistant State’s Attorney Paul Narducci.
A principle of the Justice Department’s Smart on Crime initiative is the prioritization of prosecutions to focus on the most serious cases. To learn more about the Smart on Crime initiative visit http://www.justice.gov/ag/smart-on-crime.pdf.
Palisade Man Pleads Guilty to Attempted Armed Bank Robbery
DENVER—Jose O. Jimenez, age 27, of Palisade, Colorado, pled guilty last week to attempted armed bank robbery, United States Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Jimenez was one of three people indicted for their involvement in or knowledge of the attempted armed robbery of the Palisades National Bank. Jimenez pled guilty before U.S. District Court Judge R. Brooke Jackson on March 20, 2014. He is scheduled to be sentenced on July 23, 2014.
Co-defendant Bryan Morrow, age 22, of Palisade, Colorado, pled guilty before Judge Jackson on October 8, 2013. He is scheduled to be sentenced on April 30, 2014. Finally, Nicole Kozic, age 25, of San Bernardino, California, who knew that Jimenez and Morrow were involved in the attempted bank robbery, pled guilty to a Class A misdemeanor, interfering with an extradition agent, before U.S. District Court Judge Robert E. Blackburn also on March 20, 2014. Kozic lied to an FBI agent who was working on locating Jimenez to extradite him to Washington state to face earlier criminal charges there. She is scheduled to be sentenced by Judge Blackburn on May 28, 2014.
According to the stipulated facts in Jimenez’s plea agreement as well as other court documents, on Saturday morning, August 20, 2011, co-defendant Bryan Morrow drove defendant Jose Jimenez from Morrow’s home in Palisade, Colorado to the Palisades National Bank just a few blocks away. Morrow was driving a yellow Nissan XTerra. At approximately 8:20 a.m., Morrow dropped off Jimenez near the bank and positioned himself so he could watch the outside of the bank building. He and Jimenez had two-way radios to communicate with each other. At 8:25 a.m., the Manager of the Palisades National Bank entered the bank by the side door before it opened to the public. As per his usual routine, he checked the bank for security, and then let in the two waiting tellers through the front door. He then went back to the side entrance and opened the door, with the intent to go back to his car to retrieve items. The tellers were setting up their stations. When the bank manager opened the door, he saw work boots underneath the apricot trees by the back door. He was then confronted by Jimenez, who was carrying a gun in his right hand and wearing a black hoodie covered by a reflective work vest, a camouflage mask over half his face, jeans, and work boots. He ordered the manager back into the bank. When one of the tellers realized a man with a gun was in the bank, she discretely pushed the silent alarm.
Jimenez ordered the bank manager to call the tellers to his location. He ordered the tellers to kneel and place their hands on the wall. A third teller arrived and knocked on the door, and Jimenez ordered that she be let in. She joined the other two tellers kneeling at the wall. Jimenez went through her purse and pulled out her car keys. He asked that teller what kind of car she drove, and she responded that she drove a white minivan.
Jimenez ultimately got the bank manager and a teller to open the bank’s vault. He ordered a teller to spread the money out on the counter to ensure it contained no dye packs. The tellers then put the money into a backpack Jimenez had found behind the counter in the bank and had emptied. The backpack belonged to a teller. Jimenez had a two-way radio, with which he spoke to Morrow. Morrow told Jimenez that someone was coming. Jimenez cocked the weapon and took the manager to the front door while the tellers continued with the money. A Palisade police officer arrived at the front door and knocked. Jimenez told the manager to meet the police officer. The bank door was opened, and the officer asked, “Is everything ok?” The manager discretely shook his head “no” and the officer saw Jimenez. Jimenez ordered the officer onto the floor and touched the muzzle of his gun to the officer’s head. Jimenez then obtained the officer’s weapon. The officer’s radio was on, and dispatch was requesting a status check. Jimenez told him to tell dispatch everything was fine, which he did.
When Jimenez went to check on the tellers’ progress, the officer leapt up and ran out of the bank. He immediately called for backup. Jimenez ran out of the bank after the officer. Because the bank was not yet open to the public, the door of the bank locked behind Jimenez and he could not get back into the bank after he broke off pursuit of the officer, who escaped unharmed. Jimenez, who could not access the substantial sum of money being prepared for him inside, entered the white minivan and then met up with Morrow. Jimenez abandoned the minivan and got into the front passenger seat of Morrow’s XTerra, and Morrow drove away from the bank.
“This violent attempted bank robbery victimized many innocent people and was thwarted by the resourceful actions of a police officer on the scene,” said U.S. Attorney John Walsh. “We are aggressively pursuing all those involved in this robbery to obtain justice for those victims.”
“The convictions of those who participated in this violent crime illustrate the ongoing relationship with our partners to ensure justice is served and our communities are protected,” said FBI Denver Division Special Agent in Charge Thomas P. Ravenelle.
Attempted armed bank robbery carries a penalty of not more than 25 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI and the Palisade Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Michelle Heldmyer.
Co-defendant Bryan Morrow, age 22, of Palisade, Colorado, pled guilty before Judge Jackson on October 8, 2013. He is scheduled to be sentenced on April 30, 2014. Finally, Nicole Kozic, age 25, of San Bernardino, California, who knew that Jimenez and Morrow were involved in the attempted bank robbery, pled guilty to a Class A misdemeanor, interfering with an extradition agent, before U.S. District Court Judge Robert E. Blackburn also on March 20, 2014. Kozic lied to an FBI agent who was working on locating Jimenez to extradite him to Washington state to face earlier criminal charges there. She is scheduled to be sentenced by Judge Blackburn on May 28, 2014.
According to the stipulated facts in Jimenez’s plea agreement as well as other court documents, on Saturday morning, August 20, 2011, co-defendant Bryan Morrow drove defendant Jose Jimenez from Morrow’s home in Palisade, Colorado to the Palisades National Bank just a few blocks away. Morrow was driving a yellow Nissan XTerra. At approximately 8:20 a.m., Morrow dropped off Jimenez near the bank and positioned himself so he could watch the outside of the bank building. He and Jimenez had two-way radios to communicate with each other. At 8:25 a.m., the Manager of the Palisades National Bank entered the bank by the side door before it opened to the public. As per his usual routine, he checked the bank for security, and then let in the two waiting tellers through the front door. He then went back to the side entrance and opened the door, with the intent to go back to his car to retrieve items. The tellers were setting up their stations. When the bank manager opened the door, he saw work boots underneath the apricot trees by the back door. He was then confronted by Jimenez, who was carrying a gun in his right hand and wearing a black hoodie covered by a reflective work vest, a camouflage mask over half his face, jeans, and work boots. He ordered the manager back into the bank. When one of the tellers realized a man with a gun was in the bank, she discretely pushed the silent alarm.
Jimenez ordered the bank manager to call the tellers to his location. He ordered the tellers to kneel and place their hands on the wall. A third teller arrived and knocked on the door, and Jimenez ordered that she be let in. She joined the other two tellers kneeling at the wall. Jimenez went through her purse and pulled out her car keys. He asked that teller what kind of car she drove, and she responded that she drove a white minivan.
Jimenez ultimately got the bank manager and a teller to open the bank’s vault. He ordered a teller to spread the money out on the counter to ensure it contained no dye packs. The tellers then put the money into a backpack Jimenez had found behind the counter in the bank and had emptied. The backpack belonged to a teller. Jimenez had a two-way radio, with which he spoke to Morrow. Morrow told Jimenez that someone was coming. Jimenez cocked the weapon and took the manager to the front door while the tellers continued with the money. A Palisade police officer arrived at the front door and knocked. Jimenez told the manager to meet the police officer. The bank door was opened, and the officer asked, “Is everything ok?” The manager discretely shook his head “no” and the officer saw Jimenez. Jimenez ordered the officer onto the floor and touched the muzzle of his gun to the officer’s head. Jimenez then obtained the officer’s weapon. The officer’s radio was on, and dispatch was requesting a status check. Jimenez told him to tell dispatch everything was fine, which he did.
When Jimenez went to check on the tellers’ progress, the officer leapt up and ran out of the bank. He immediately called for backup. Jimenez ran out of the bank after the officer. Because the bank was not yet open to the public, the door of the bank locked behind Jimenez and he could not get back into the bank after he broke off pursuit of the officer, who escaped unharmed. Jimenez, who could not access the substantial sum of money being prepared for him inside, entered the white minivan and then met up with Morrow. Jimenez abandoned the minivan and got into the front passenger seat of Morrow’s XTerra, and Morrow drove away from the bank.
“This violent attempted bank robbery victimized many innocent people and was thwarted by the resourceful actions of a police officer on the scene,” said U.S. Attorney John Walsh. “We are aggressively pursuing all those involved in this robbery to obtain justice for those victims.”
“The convictions of those who participated in this violent crime illustrate the ongoing relationship with our partners to ensure justice is served and our communities are protected,” said FBI Denver Division Special Agent in Charge Thomas P. Ravenelle.
Attempted armed bank robbery carries a penalty of not more than 25 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI and the Palisade Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Michelle Heldmyer.
Former New York Attorney Sentenced to 50 Months in Prison
SAN FRANCISCO—Leigh E. Sprague was sentenced yesterday to 50 months in prison and ordered to pay $1.4 million in restitution after being convicted of transporting stolen money in foreign commerce, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Sprague, 43, of Fort Atkinson, Wisconsin, pleaded guilty on December 16, 2013, to transporting more than $5 million of stolen funds in foreign commerce. According to court records, Sprague graduated from Columbia Law School and then worked in two large law firms in New York, eventually transferring to a law firm’s Moscow office. After leaving the law firm, in 2007 he joined United Company Rusal in Moscow, where he served as the Head of the Corporate Finance Unit until he was fired in April 2011.
In June 2010, Sprague incorporated a shell corporation set up in the Republic of Seychelles. Although Sprague owned and managed the shell corporation, he forged a stock certificate falsely reflecting that the shell corporation was owned by his employer. After setting up a bank account in Geneva, Switzerland, in the name of the shell company, Sprague falsely represented to Goldman Sachs that he was authorized to direct Goldman to liquidate $10 million of an asset belonging to Sprague’s corporate employer. Relying on Sprague’s false statements and forged documents, Goldman liquidated $10 million of the asset and paid that amount into the shell company’s Swiss bank account.
According to court records, Sprague then transferred the funds to bank accounts he controlled in various parts of the world, including Belize, Switzerland, Hong Kong, and the United States. He also used the money on lavish personal expenditures, including more than $800,000 on rare collectors’ automobiles, remodeling an ocean-view home he owned in Malibu, California, and paying off significant credit card bills. Several months after stealing the $10 million, Sprague allegedly tried to have Goldman liquidate an additional $5 million through the same scheme. Goldman and Sprague’s employer discovered the scheme, however, and did not transfer this money. Sprague then allegedly fled from Moscow.
Sprague transferred more than $5 million of the stolen money to the United States. According to court records, Sprague then tried to transfer much of that money to an account in Belize, but he failed. Law enforcement authorities seized more than $6 million of the stolen funds, as well as many luxury collector automobiles Sprague had purchased with the stolen funds. In all, law enforcement authorities and Sprague’s employer have recovered approximately $8.5 million of the $10 million Sprague diverted.
Sprague, formerly resided in New York, New York, and in Moscow, Russia. The United States Attorney’s Office filed an information on October 30, 2013, charging Sprague with one count of transporting stolen money in foreign commerce, in violation of Title 18, United States Code, Section 2314.
The sentence was handed down by the Honorable Thelton E. Henderson, United States District Court Judge, following Sprague’s guilty plea. Judge Henderson also sentenced the defendant to a three-year period of supervised release and ordered Sprague to pay $1,416,260.85 in restitution. The defendant will begin serving the sentence on May 5, 2014.
Doug Sprague and Patricia Kenney are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Sprague, 43, of Fort Atkinson, Wisconsin, pleaded guilty on December 16, 2013, to transporting more than $5 million of stolen funds in foreign commerce. According to court records, Sprague graduated from Columbia Law School and then worked in two large law firms in New York, eventually transferring to a law firm’s Moscow office. After leaving the law firm, in 2007 he joined United Company Rusal in Moscow, where he served as the Head of the Corporate Finance Unit until he was fired in April 2011.
In June 2010, Sprague incorporated a shell corporation set up in the Republic of Seychelles. Although Sprague owned and managed the shell corporation, he forged a stock certificate falsely reflecting that the shell corporation was owned by his employer. After setting up a bank account in Geneva, Switzerland, in the name of the shell company, Sprague falsely represented to Goldman Sachs that he was authorized to direct Goldman to liquidate $10 million of an asset belonging to Sprague’s corporate employer. Relying on Sprague’s false statements and forged documents, Goldman liquidated $10 million of the asset and paid that amount into the shell company’s Swiss bank account.
According to court records, Sprague then transferred the funds to bank accounts he controlled in various parts of the world, including Belize, Switzerland, Hong Kong, and the United States. He also used the money on lavish personal expenditures, including more than $800,000 on rare collectors’ automobiles, remodeling an ocean-view home he owned in Malibu, California, and paying off significant credit card bills. Several months after stealing the $10 million, Sprague allegedly tried to have Goldman liquidate an additional $5 million through the same scheme. Goldman and Sprague’s employer discovered the scheme, however, and did not transfer this money. Sprague then allegedly fled from Moscow.
Sprague transferred more than $5 million of the stolen money to the United States. According to court records, Sprague then tried to transfer much of that money to an account in Belize, but he failed. Law enforcement authorities seized more than $6 million of the stolen funds, as well as many luxury collector automobiles Sprague had purchased with the stolen funds. In all, law enforcement authorities and Sprague’s employer have recovered approximately $8.5 million of the $10 million Sprague diverted.
Sprague, formerly resided in New York, New York, and in Moscow, Russia. The United States Attorney’s Office filed an information on October 30, 2013, charging Sprague with one count of transporting stolen money in foreign commerce, in violation of Title 18, United States Code, Section 2314.
The sentence was handed down by the Honorable Thelton E. Henderson, United States District Court Judge, following Sprague’s guilty plea. Judge Henderson also sentenced the defendant to a three-year period of supervised release and ordered Sprague to pay $1,416,260.85 in restitution. The defendant will begin serving the sentence on May 5, 2014.
Doug Sprague and Patricia Kenney are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Subscribe to:
Posts (Atom)