NEWARK, NJ—A Newark man today admitted his role in a shotgun carjacking in Little Falls, New Jersey, on October 30, 2011, U.S. Attorney Paul J. Fishman announced.
Hanzah Darby, 24, pleaded guilty to an indictment charging him with one count of theft of a motor vehicle by force, violence, and intimidation and one count of use of a firearm in furtherance of a crime of violence. He entered his guilty plea before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and statements made in court:
During his guilty plea proceeding, Darby admitted that on October 30, 2011, he and another individual were in the Little Falls area when they spotted a parked 2008 BMW 335 with passengers inside. Darby and his conspirator—who allegedly brandished a shotgun—approached the car and ordered the occupants out of the vehicle at gunpoint.
Ivan Lee, 25, of Newark, is charged with Darby in the indictment, and the charges against him remain pending.
Darby and Lee then took the car and fled the area. Law enforcement officers recovered the car in Newark on November 7, 2011. Darby was standing next to it at the time.
The carjacking charge to which Darby pleaded guilty carries a maximum potential penalty of 15 years in prison. The firearm charge carries a maximum potential 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 of the two counts also carries a maximum $250,000 fine. Sentencing is currently scheduled for November 18, 2013.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; officers of the Little Falls Police Department, under the direction of Chief John Dmuchowski; the New Jersey State Police, under the direction of Colonel Rick Fuentes; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s plea.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
As for Lee, the charges and allegations contained in the indictment against him are merely allegations, and the defendant is considered innocent unless and until proven guilty.
Monday, September 9, 2013
Elizabeth Man Indicted in String of Gunpoint Robberies of New Jersey Banks
NEWARK, NJ—A federal grand jury today returned an indictment charging an Elizabeth, New Jersey man with a series of gunpoint bank robberies throughout New Jersey, U.S. Attorney Paul J. Fishman announced.
Claude Williams, 61, was charged with six bank robberies and two counts of using a firearm in furtherance of a crime of violence when he was arrested in July 2012. Today’s indictment adds multiple counts, and Williams now faces one count of conspiracy to commit bank robbery, seven counts of bank robbery, one count of attempted bank robbery, and eight firearms counts in connection with the alleged robbery spree. Williams will be arraigned on the indictment on a date to be determined.
According to documents filed in this case and statements made in court:
Between September 26, 2011 and July 30, 2012, Williams committed seven armed bank robberies and attempted to rob an eighth bank. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweatshirt or jacket, and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.
Williams robbed, or attempted to rob, the following banks:
In several of the bank robberies, Williams sent a conspirator into the bank to case it shortly before he entered to commit the robbery.
Prior to the July 12, 2012 robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car, and crouch down to hide. After noting the license plate number, the officer followed the car.
After an unsuccessful attempt to elude the officer, the getaway car stopped. Williams got out of the car and pointed his gun at the officer, forcing the officer to leave the scene without apprehending Williams and his accomplice.
Later, on Friday, July 27, 2012 and Saturday, July 28, 2012, law enforcement observed Williams driving in the vicinity of a Unity Bank in Somerset, New Jersey. On July 30, 2012, law enforcement again observed Williams and accomplice Andrea Dorsey—who has since pleaded guilty to her involvement in some of the robberies—in the vicinity of the bank. Law enforcement stopped the car blocks from the bank and arrested Williams and Dorsey, finding a handgun and white gloves inside the car.
Each of the bank robbery charges carries a maximum potential penalty of 25 years in prison. The attempted bank robbery charge carries a maximum potential penalty of 20 years in prison. The first of the eight counts of using a firearm in furtherance of a crime of violence carries a mandatory minimum penalty of seven years and a maximum of life in prison; each additional count carries a mandatory minimum penalty of 25 years and a maximum of life in prison. Each charge also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Somerset County Prosecutors Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield, and Plainfield Police Departments for their excellent work.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Claude Williams, 61, was charged with six bank robberies and two counts of using a firearm in furtherance of a crime of violence when he was arrested in July 2012. Today’s indictment adds multiple counts, and Williams now faces one count of conspiracy to commit bank robbery, seven counts of bank robbery, one count of attempted bank robbery, and eight firearms counts in connection with the alleged robbery spree. Williams will be arraigned on the indictment on a date to be determined.
According to documents filed in this case and statements made in court:
Between September 26, 2011 and July 30, 2012, Williams committed seven armed bank robberies and attempted to rob an eighth bank. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweatshirt or jacket, and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.
Williams robbed, or attempted to rob, the following banks:
Date
|
Bank
|
Location
|
| September 26, 2011 | Financial Resources Federal Credit Union | Somerset, New Jersey |
| November 21, 2011 | Somerset Savings Bank | Somerville, New Jersey |
| February 27, 2012 | Provident Bank | Piscataway, New Jersey |
| April 17, 2012 | Provident Bank | Clifton, New Jersey |
| May 22, 2012 | Provident Bank | Piscataway, New Jersey |
| June 20, 2012 | Fulton Bank | Metuchen, New Jersey |
| July 12, 2012 | Unity Bank | Middlesex, New Jersey |
| July 30, 2012 | Unity Bank | North Plainfield, New Jersey |
In several of the bank robberies, Williams sent a conspirator into the bank to case it shortly before he entered to commit the robbery.
Prior to the July 12, 2012 robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car, and crouch down to hide. After noting the license plate number, the officer followed the car.
After an unsuccessful attempt to elude the officer, the getaway car stopped. Williams got out of the car and pointed his gun at the officer, forcing the officer to leave the scene without apprehending Williams and his accomplice.
Later, on Friday, July 27, 2012 and Saturday, July 28, 2012, law enforcement observed Williams driving in the vicinity of a Unity Bank in Somerset, New Jersey. On July 30, 2012, law enforcement again observed Williams and accomplice Andrea Dorsey—who has since pleaded guilty to her involvement in some of the robberies—in the vicinity of the bank. Law enforcement stopped the car blocks from the bank and arrested Williams and Dorsey, finding a handgun and white gloves inside the car.
Each of the bank robbery charges carries a maximum potential penalty of 25 years in prison. The attempted bank robbery charge carries a maximum potential penalty of 20 years in prison. The first of the eight counts of using a firearm in furtherance of a crime of violence carries a mandatory minimum penalty of seven years and a maximum of life in prison; each additional count carries a mandatory minimum penalty of 25 years and a maximum of life in prison. Each charge also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Somerset County Prosecutors Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield, and Plainfield Police Departments for their excellent work.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bergen County Loan Officer Pleads Guilty to Role in $2 Million Mortgage Fraud
CAMDEN, NJ—A loan officer admitted today to conspiring to defraud financial institutions as part of an approximately $2 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on town homes and other real estate in three states, U.S. Attorney Paul J. Fishman announced.
Raffi Oghlian, 38, of Westwood, New Jersey, pleaded guilty today before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Oghlian worked for a period in 2008 as a loan officer at MJS Lending Inc. in Hasbrouck Heights, New Jersey, which was in the business of making mortgage loans.
During his guilty plea proceeding, Oghlian admitted that he conspired with others to profit from the sale of over-priced homes in Newark, New Jersey, and Atlanta, as well as properties in Naples, Florida, owned by developers seeking to sell off inventory. He acknowledged that as part of the conspiracy, he and his conspirators obtained mortgage loans for unqualified borrowers using fraudulent loan applications and other documents.
Oghlian’s conspirators recruited “straw buyers” to purchase those properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. Oghlian created false and fraudulent loan applications that contained false information concerning, among other things, the straw buyers' employment, income, assets, and intended use of the properties. Oghlian also admitted creating false documents to support the phony loan applications.
Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Oghlian’s co-conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. For his part on the conspiracy, Oghlian earned fees as the loan officer of the seven transactions in which he participated.
In all, the conspiracy caused approximately $2 million to be released from MJS Lending.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS-Criminal Investigation, Newark field office, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their roles in the ongoing investigation.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
Raffi Oghlian, 38, of Westwood, New Jersey, pleaded guilty today before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Oghlian worked for a period in 2008 as a loan officer at MJS Lending Inc. in Hasbrouck Heights, New Jersey, which was in the business of making mortgage loans.
During his guilty plea proceeding, Oghlian admitted that he conspired with others to profit from the sale of over-priced homes in Newark, New Jersey, and Atlanta, as well as properties in Naples, Florida, owned by developers seeking to sell off inventory. He acknowledged that as part of the conspiracy, he and his conspirators obtained mortgage loans for unqualified borrowers using fraudulent loan applications and other documents.
Oghlian’s conspirators recruited “straw buyers” to purchase those properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. Oghlian created false and fraudulent loan applications that contained false information concerning, among other things, the straw buyers' employment, income, assets, and intended use of the properties. Oghlian also admitted creating false documents to support the phony loan applications.
Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Oghlian’s co-conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. For his part on the conspiracy, Oghlian earned fees as the loan officer of the seven transactions in which he participated.
In all, the conspiracy caused approximately $2 million to be released from MJS Lending.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS-Criminal Investigation, Newark field office, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their roles in the ongoing investigation.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
Dozens of Members of Violent Street Gang Charged with Narcotics and Weapons Violation Following Joint Investigation Known as Operation Thumbs Down
LOS ANGELES—Over 800 hundred law enforcement officers and agents served dozens of arrest and search warrants this morning in Operation Thumbs Down, an 18-month investigation that targeted members and associates of the Rollin’ 30s Harlem Crips, a South Los Angeles street gang that ranks among the Los Angeles Police Department’s top targeted street gangs, announced André Birotte Jr., the United States Attorney in Los Angeles; Bill Lewis, the Assistant Director in Charge of FBI in Los Angeles; Charlie Beck, the Chief of the Los Angeles Police Department; and Mike Feuer, the City Attorney in Los Angeles.
Thirty-five defendants currently charged with federal and state violations are in custody following this morning’s Operation Thumbs Down, an investigation initiated in 2012 to identify and target high-level members of the Rollin 30s Harlem Crips, a gang known for violence in the community it claims as its territory. Several remaining defendants charged at either the state or federal level were already in custody on unrelated charges or are considered fugitives currently being sought by task force members. The investigation was dubbed Thumbs Down by the task force in reference to hand gestures used by this gang, including two thumbs pointed upward, representing the “H” in the word “Harlem.”
The Rollin 30s Crips is a known multi-generational violent gang that operates primarily in South Los Angeles and has ties to other gangs with whom they are known to have violent disputes. The Rollin’ 30s is composed of three factions, known as “cliques” or “sets,” identified as The Avenues, Denker Park, and 39th Street. Each clique claims different geographical territories within the gang’s overall claimed territory, and has its own respective leaders or "shotcallers," who direct the gang’s criminal activity. Law enforcement estimates there are between 700 and 1,000 Rollin 30s gang members. During Operations Thumbs Down, task force members targeted these “shotcallers” within the Rollin’ 30s’ criminal enterprise.
Twenty-one defendants were named in federal indictments returned by a grand jury in United States District Court in Los Angeles. The federal indictments charge the defendants with a variety of narcotics and weapons violations, including: possession of cocaine base (“crack”) with intent to distribute; conspiracy to possess with intent to distribute cocaine base (“crack”); felon in possession of a firearm; maintaining drug-involved premises; and unlicensed dealing in firearms.
Those charged federally are listed below:
Crime statistics indicate there have been 29 homicides within the past five years in the gang’s territory, which incorporates the neighborhood between Jefferson Avenue, Martin Luther King Avenue, Normandie Avenue, and Crenshaw Avenue. In addition, approximately 1100 robberies and 1075 assaults have been reported in the 1.5 square mile area that comprises the gang’s claimed territory. The Rollin 30s Harlem Crips is also suspected of committing a series of residential or “knock-knock” burglaries, referred to by the gang as “floccin.” Police departments in multiple counties throughout Southern California are investigating members of the Rollin 30s Harlem Crips in connection with these robberies.
Throughout the investigation and prior to today, task force members arrested 60 Rollin’ 30s gang members and associates for state violations, seized 32 firearms, and seized in excess of 10 kilograms of rock cocaine.
Nineteen of the 21 federal defendants are in custody and two are considered fugitives. Three of the federal defendants were already incarcerated on unrelated charges and are expected to be transferred to federal custody.
Many of the federal defendants face mandatory-minimum prison terms ranging from five to 10 years, depending on the quantities of narcotics alleged and individual criminal histories, and maximum penalties of 20 or 30 years in federal prison. Federal defendants arrested today will make an initial appearance in U.S. District Court in Los Angeles this afternoon.
This case is the result of an investigation by members of the Los Angeles Metropolitan Task Force on Violent Gangs, including the Federal Bureau of Investigation; the Los Angeles Police Department; the United States Attorney’s Office; and the Los Angeles City Attorney’s Office.
Multiple agencies assisted the task force during this investigation and today’s operation, including the United States Secret Service; the Department of Child and Family Services; the United States Department of Housing and Urban Development-Office of Inspector General; the Los Angeles County Sheriff’s Department; the California Department of Corrections and Rehabilitation; the Los Angeles County Department of Probation; and agencies that participate on the High Intensity Drug Trafficking Agency (HIDTA).
The federal defendants will be prosecuted by the United States Attorney’s Office. The defendants arrested for violations of California state law will be prosecuted by the Los Angeles County District Attorney’s Office.
Additional information about violent street gangs across America can be found at http://www.fbi.gov/stats-services/publications/2011-national-gang-threat-assessment
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Media Contacts:
Thirty-five defendants currently charged with federal and state violations are in custody following this morning’s Operation Thumbs Down, an investigation initiated in 2012 to identify and target high-level members of the Rollin 30s Harlem Crips, a gang known for violence in the community it claims as its territory. Several remaining defendants charged at either the state or federal level were already in custody on unrelated charges or are considered fugitives currently being sought by task force members. The investigation was dubbed Thumbs Down by the task force in reference to hand gestures used by this gang, including two thumbs pointed upward, representing the “H” in the word “Harlem.”
The Rollin 30s Crips is a known multi-generational violent gang that operates primarily in South Los Angeles and has ties to other gangs with whom they are known to have violent disputes. The Rollin’ 30s is composed of three factions, known as “cliques” or “sets,” identified as The Avenues, Denker Park, and 39th Street. Each clique claims different geographical territories within the gang’s overall claimed territory, and has its own respective leaders or "shotcallers," who direct the gang’s criminal activity. Law enforcement estimates there are between 700 and 1,000 Rollin 30s gang members. During Operations Thumbs Down, task force members targeted these “shotcallers” within the Rollin’ 30s’ criminal enterprise.
Twenty-one defendants were named in federal indictments returned by a grand jury in United States District Court in Los Angeles. The federal indictments charge the defendants with a variety of narcotics and weapons violations, including: possession of cocaine base (“crack”) with intent to distribute; conspiracy to possess with intent to distribute cocaine base (“crack”); felon in possession of a firearm; maintaining drug-involved premises; and unlicensed dealing in firearms.
Those charged federally are listed below:
- Stephen Bayliss, aka “Iceberg”—30, currently in federal custody
- Michael Byars, aka “Wanetti”—55, Inglewood
- Jesus De La Hoya, aka “Jesse”—40, Mira Loma
- Anthoney Edwards, aka “Three Leaf”—23, currently in state custody
- Frank Fisher, aka “Boons”—23, Los Angeles
- Rayeisha Glenn, aka “Ray Ray”—35, Los Angeles
- Kenneth Green, aka “Gin”—36, Los Angeles
- Kevin Green, aka “Young Watt”—31, Los Angeles
- Jovan Harris, aka “Headache”—34, Los Angeles
- Clavern Luckett, aka “Uncle D”—38, Los Angeles
- Gary Luckett, aka “Uncle Gary”—39, Los Angeles
- Kelly Martin, aka “Cartoon”—43, Compton
- Don Mosley, aka “Whino”—34, currently in state custody
- Edward Norwood, aka “Polo”—33, Los Angeles
- Brandon Robertson, aka “BK”—31, Los Angeles
- Alan Ross, aka “Big Choo”—37, Los Angeles
- Darlene Sebatta—38, Los Angeles
- Ernest Sluch, aka “E-Rocc”—47, Los Angeles
- Jason Thurton, aka “CT”—35, Long Beach
- Emerie Tims, aka “Mac”—34, Long Beach
- Moses Williams, aka “Termite”—34, Los Angeles
Crime statistics indicate there have been 29 homicides within the past five years in the gang’s territory, which incorporates the neighborhood between Jefferson Avenue, Martin Luther King Avenue, Normandie Avenue, and Crenshaw Avenue. In addition, approximately 1100 robberies and 1075 assaults have been reported in the 1.5 square mile area that comprises the gang’s claimed territory. The Rollin 30s Harlem Crips is also suspected of committing a series of residential or “knock-knock” burglaries, referred to by the gang as “floccin.” Police departments in multiple counties throughout Southern California are investigating members of the Rollin 30s Harlem Crips in connection with these robberies.
Throughout the investigation and prior to today, task force members arrested 60 Rollin’ 30s gang members and associates for state violations, seized 32 firearms, and seized in excess of 10 kilograms of rock cocaine.
Nineteen of the 21 federal defendants are in custody and two are considered fugitives. Three of the federal defendants were already incarcerated on unrelated charges and are expected to be transferred to federal custody.
Many of the federal defendants face mandatory-minimum prison terms ranging from five to 10 years, depending on the quantities of narcotics alleged and individual criminal histories, and maximum penalties of 20 or 30 years in federal prison. Federal defendants arrested today will make an initial appearance in U.S. District Court in Los Angeles this afternoon.
This case is the result of an investigation by members of the Los Angeles Metropolitan Task Force on Violent Gangs, including the Federal Bureau of Investigation; the Los Angeles Police Department; the United States Attorney’s Office; and the Los Angeles City Attorney’s Office.
Multiple agencies assisted the task force during this investigation and today’s operation, including the United States Secret Service; the Department of Child and Family Services; the United States Department of Housing and Urban Development-Office of Inspector General; the Los Angeles County Sheriff’s Department; the California Department of Corrections and Rehabilitation; the Los Angeles County Department of Probation; and agencies that participate on the High Intensity Drug Trafficking Agency (HIDTA).
The federal defendants will be prosecuted by the United States Attorney’s Office. The defendants arrested for violations of California state law will be prosecuted by the Los Angeles County District Attorney’s Office.
Additional information about violent street gangs across America can be found at http://www.fbi.gov/stats-services/publications/2011-national-gang-threat-assessment
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Media Contacts:
- Assistant United States Attorney Christopher Pelham: 213 894-0610
- FBI Press Relations: 310 996-3343
Huntsville Man Indicted for Series of Bank Robberies
BIRMINGHAM—A federal grand jury today indicted a Huntsville man for 11 robberies or attempted robberies at banks across north central and north western Alabama, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
An indictment filed in U.S. District Court charges Cedrick Lamond Hicks, 32, with nine counts of bank robbery and two counts of attempted bank robbery. In all, the banks were robbed of more than $43,000. Most of the charges are for robberies or attempted robberies in 2012, while one charge is for a 2006 bank robbery and two are for bank robberies this year.
The date, location, and amount of money stolen are as follows, according to the indictment:
The maximum penalty for each robbery count is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The public is reminded than an indictment contains only charges. A defendant is presumed innocent, and it will be the government’s responsibility to prove the defendant’s guilt beyond a reasonable doubt at trial.
An indictment filed in U.S. District Court charges Cedrick Lamond Hicks, 32, with nine counts of bank robbery and two counts of attempted bank robbery. In all, the banks were robbed of more than $43,000. Most of the charges are for robberies or attempted robberies in 2012, while one charge is for a 2006 bank robbery and two are for bank robberies this year.
The date, location, and amount of money stolen are as follows, according to the indictment:
- December 13, 2006, Regions Bank, Madison Street, Huntsville, $3,074
- February 22, 2012, Regions Banks, Madison Street, Huntsville, $2,870
- March 23, 2012, First Jackson Bank, Sutton Road, Huntsville, $1,894
- April 30, 2012, Renasant Bank, U.S. 72 West, Madison, $3,500
- August 2, 2012, Peoples Bank, U.S. 431 South, Guntersville, $890
- August 8, 2012, Traditions Bank, Alabama 67 South, Decatur, $7,243
- November 27, 2012, Regions Banks, Lee Street, Rogersville, $8,009
- January 7, 2013, Peoples Trust Bank, Military Street South, Hamilton, $9,000
- March 6, 2013, ServisFirst Bank, Meridian Street, Huntsville, $6,575
The maximum penalty for each robbery count is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The public is reminded than an indictment contains only charges. A defendant is presumed innocent, and it will be the government’s responsibility to prove the defendant’s guilt beyond a reasonable doubt at trial.
Fifth Adams Produce Official Charged in Scheme to Defraud U.S. Government
BIRMINGHAM—A fifth Adams Produce Company official now faces federal charges in a scheme to defraud the federal government, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
A federal grand jury today indicted Michael John O'Brien, 50, of Navarre, Florida, who was general manager of the Adams Produce distribution center in Pensacola, Florida. O'Brien’s duties included determining the prices Adams Produce charged the United States under contracts it had with the government.
The 37-count indictment filed in U.S. District Court charges O'Brien with conspiracy to defraud the U.S. Department of Defense and its Defense Logistics Agency of hundreds of thousands of dollars. The indictment also charges O'Brien with 32 counts of wire fraud or aiding and abetting wire fraud and with four counts of false claims or aiding and abetting false claims in order to carry out the conspiracy.
Four other Adams Produce officials—Scott David Grinstead, David Andrew Kirkland, Christopher Alan Pfahl, and Stanley Joel Butler, II—have pleaded guilty to charges in connection with defrauding the government.
Adams Produce was a Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for many years. It was founded more than 100 years ago as a family-owned business. The family sold the company to executives and a private equity firm in 2010. Adams Produce closed abruptly and filed for bankruptcy in 2012.
The Department of Defense, through DLA, contracted with Adams Produce and other distributers to supply fresh fruits and vegetables to military bases, public school systems, junior colleges, and universities. Adams Produce had contracts worth millions of dollars with the U.S. government, according to O'Brien’s indictment. Under the contracts, the price the government paid Adams depended largely on what Adams had to pay its produce suppliers.
Each week, Adams Produce electronically submitted pricing information to DLA and was required, periodically, to submit purchase orders to DLA proving its costs, according to the indictment.
Adams bought from TLC, one of the largest distributors of fresh produce in the United States, with offices located across the country. Between August 2011 and November 2011, according to the indictment, O'Brien and other Adams employees arranged and conducted transactions with TLC in Marietta, Georgia, designed to create purchase orders and invoices that reflected inflated costs to Adams Produce.
According to O'Brien’s indictment, he and others continued the conspiracy as follows:
O'Brien communicated instructions, often by e-mail, to other Adams' employees concerning the inflated prices to show on the false purchase orders. Adams' employees and officers used the false purchase orders to support false pricing information the company submitted to DLA for payment. The transactions with TLC to produce false purchase orders and the false information submitted to DLA "were intended to increase Adams Produce’s profit margins and inflate the income reported on Adams Produce’s financial statements."
The maximum penalty for the conspiracy count is 10 years in prison and a $250,000 fine. The maximum penalty for each wire fraud count is 20 years in prison and a $250,000 fine, and the maximum penalty for each false claim count is five years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney George A. Martin, Jr. 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 at trial.
A federal grand jury today indicted Michael John O'Brien, 50, of Navarre, Florida, who was general manager of the Adams Produce distribution center in Pensacola, Florida. O'Brien’s duties included determining the prices Adams Produce charged the United States under contracts it had with the government.
The 37-count indictment filed in U.S. District Court charges O'Brien with conspiracy to defraud the U.S. Department of Defense and its Defense Logistics Agency of hundreds of thousands of dollars. The indictment also charges O'Brien with 32 counts of wire fraud or aiding and abetting wire fraud and with four counts of false claims or aiding and abetting false claims in order to carry out the conspiracy.
Four other Adams Produce officials—Scott David Grinstead, David Andrew Kirkland, Christopher Alan Pfahl, and Stanley Joel Butler, II—have pleaded guilty to charges in connection with defrauding the government.
Adams Produce was a Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for many years. It was founded more than 100 years ago as a family-owned business. The family sold the company to executives and a private equity firm in 2010. Adams Produce closed abruptly and filed for bankruptcy in 2012.
The Department of Defense, through DLA, contracted with Adams Produce and other distributers to supply fresh fruits and vegetables to military bases, public school systems, junior colleges, and universities. Adams Produce had contracts worth millions of dollars with the U.S. government, according to O'Brien’s indictment. Under the contracts, the price the government paid Adams depended largely on what Adams had to pay its produce suppliers.
Each week, Adams Produce electronically submitted pricing information to DLA and was required, periodically, to submit purchase orders to DLA proving its costs, according to the indictment.
Adams bought from TLC, one of the largest distributors of fresh produce in the United States, with offices located across the country. Between August 2011 and November 2011, according to the indictment, O'Brien and other Adams employees arranged and conducted transactions with TLC in Marietta, Georgia, designed to create purchase orders and invoices that reflected inflated costs to Adams Produce.
According to O'Brien’s indictment, he and others continued the conspiracy as follows:
O'Brien communicated instructions, often by e-mail, to other Adams' employees concerning the inflated prices to show on the false purchase orders. Adams' employees and officers used the false purchase orders to support false pricing information the company submitted to DLA for payment. The transactions with TLC to produce false purchase orders and the false information submitted to DLA "were intended to increase Adams Produce’s profit margins and inflate the income reported on Adams Produce’s financial statements."
The maximum penalty for the conspiracy count is 10 years in prison and a $250,000 fine. The maximum penalty for each wire fraud count is 20 years in prison and a $250,000 fine, and the maximum penalty for each false claim count is five years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney George A. Martin, Jr. 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 at trial.
Federal Prosecutors Charge Ninth Person in Scheme to Defraud BP Oil Spill Claims Fund
BIRMINGHAM—Federal prosecutors this week charged a Birmingham woman as part of a conspiracy to fraudulently take money from funds established to pay claims from individuals and businesses harmed by the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
In an information filed Thursday in U.S. District Court, the U.S. Attorney’s Office charged Metilda Steward Gorden, 47, with conspiring in 2010 to participate in a scheme to defraud the Gulf Coast Claims Facility.
The U.S. Attorney’s Office has now charged nine people with conspiring to defraud the oil spill claims funds, and seven have pled guilty.
British Petroleum, which owned the Macondo oil well where the Deepwater Horizon drilling rig exploded, established the Gulf Coast Claims Facility in June 2010 for the purpose of administering and settling claims resulting from the oil spill disaster. A subsidiary of BP established the Deepwater Horizon Oil Spill Trust Fund in August 2010 to pay certain types of claims and expenses from the oil spill, including claims settled through the GCCF.
Gorden is charged with independently agreeing to provide personal information, such as bank account information, to individuals who recruited her so that they could use her information to file fraudulent claims for lost wages with the GCCF. The recruiters are not named in the charging document. After the GCCF paid Gorden on the fraudulent claims, she returned part of the money to the individuals who recruited her to participate in the scheme, according to the information. Between November 2010 and August 2011, the GCCF paid about $65,786 into Gorden’s bank account.
The FBI is investigating these cases. Assistant U.S. Attorney Henry Cornelius is prosecuting the cases.
In an information filed Thursday in U.S. District Court, the U.S. Attorney’s Office charged Metilda Steward Gorden, 47, with conspiring in 2010 to participate in a scheme to defraud the Gulf Coast Claims Facility.
The U.S. Attorney’s Office has now charged nine people with conspiring to defraud the oil spill claims funds, and seven have pled guilty.
British Petroleum, which owned the Macondo oil well where the Deepwater Horizon drilling rig exploded, established the Gulf Coast Claims Facility in June 2010 for the purpose of administering and settling claims resulting from the oil spill disaster. A subsidiary of BP established the Deepwater Horizon Oil Spill Trust Fund in August 2010 to pay certain types of claims and expenses from the oil spill, including claims settled through the GCCF.
Gorden is charged with independently agreeing to provide personal information, such as bank account information, to individuals who recruited her so that they could use her information to file fraudulent claims for lost wages with the GCCF. The recruiters are not named in the charging document. After the GCCF paid Gorden on the fraudulent claims, she returned part of the money to the individuals who recruited her to participate in the scheme, according to the information. Between November 2010 and August 2011, the GCCF paid about $65,786 into Gorden’s bank account.
The FBI is investigating these cases. Assistant U.S. Attorney Henry Cornelius is prosecuting the cases.
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