U.S. Marshals Fugitive Task Force Arrests Hazle Township Shooting Suspect in New York

Scranton, PA - Today, U.S. Marshal Martin J. Pane announced the arrest of Lizandy Antonio Trejo, a 25-year old man with no permanent address.

On November 8, 2015, the Pennsylvania State Police from Hazleton, PA investigated a shooting along Ebervale Road, Hazle Township. An argument between two groups of people escalated until an individual fired several shots from a handgun into an occupied vehicle before fleeing the scene. State Troopers identified the shooter as Trejo and charged him with aggravated assault and recklessly endangering another person. Attempts to find Trejo in the local area were unsuccessful .

Members of the task force developed information that Trejo may have fled to a family member’s home in Bronx, NY. Today, members of the New York/New Jersey Regional Fugitive Task Force arrested Trejo in the 2200 block of Creston Ave, Bronx, NY without incident. Trejo was ordered detained pending extradition to Pennsylvania.

United States Marshal Pane stated, “The U.S. Marshals Service Fugitive Task Force places a high priority on arresting violent offenders, especially those who have no regard for human life. We will continue to work together with our law enforcement partners and the community to help make our streets safer. “

The USMS Fugitive Task Force in the Middle District of Pennsylvania is comprised of 21 state, county and local police agencies; including the Pennsylvania State Police – which works alongside the USMS every day.

New Jersey Man Sentenced in Indiana to 20 Years for Biodiesel Fraud Scheme

Joseph Furando, 50, of Montvale, New Jersey, was sentenced yesterday in Indianapolis, Indiana, to 20 years in prison, three years of supervised release and to pay more than $56 million in restitution for his role in an elaborate scheme to defraud biodiesel buyers and United States taxpayers by fraudulently selling biodiesel incentives, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minkler for the Southern District of Indiana.

“Programs like the Renewable Fuel Standard and the Blender’s Tax Credit open the path toward energy independence and curbing the impact of climate change,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “When people approach these programs with bad faith and seek to exploit them, these purposes are blocked, American businesses are hurt and the treasury of the United States is depleted.  This significant prison sentence sends the right message that such fraud will not be tolerated.”

“Joseph Furando used fraud to spin biodiesel programs into a million-dollar home, high-end cars, expensive jewelry and watches and any other luxury that pleased him,” said U.S. Attorney Minkler.  “He did so through threats, bullying, and intimidation.  With the court’s sentence, all of that unraveled. The agencies and prosecutors who unraveled his schemes have shown how foolish it is to try to prey on these programs.”

“Fraud in the renewable fuels program compromises our ability to fight climate change and reduce dependence on foreign oil,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance at EPA.  “Yesterday’s sentencing puts a check on illegal behavior and sends a clear message that EPA and its partners will prosecute serious offenders.  We are committed to upholding program integrity and protecting responsible companies that play by the rules.” 

“We are proud to work with our federal partners to identify and investigate groups that manipulate and utilize federal government programs to line their pockets by fraud,” said Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI.  “In doing so, they deceive their customers, their shareholders and the American public.  The FBI will continue the fight against this dishonest and fraudulent behavior which harms the American people and the American economy.”

“Federal government tax credits and incentives are put in place to assist the American people,” said Acting Special Agent in Charge David Talcott of the IRS-Criminal Investigation.  “The harm is felt by all American taxpayers and our economy when individuals manipulate and take advantage of federal programs.  Mr. Furando perpetrated this egregious fraud for his own personal gain.  IRS-Criminal Investigation will continue to protect American taxpayers and our economy by vigorously pursuing individuals who prey upon the integrity of our great country.”

During yesterday’s sentencing hearing, Judge Sarah Evans Barker ordered Furando to pay more than $56 million in restitution, jointly and severally with other defendants.  That amount reflects the losses Furando and his co-conspirators imposed on fraud victims and United States taxpayers.

Under the terms of a plea agreement, Furando is obligated to forfeit the fruits of his crime, which include a Ferrari, other cars, a million-dollar home, artwork, a piano and two biodiesel powered motorcycles.

Furando’s scheme may be summarized as follows: From 2007 through 2012, Indiana-based E‑biofuels owned a biodiesel manufacturing plant in Middletown, Indiana.  Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants.  Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a dollar per gallon tax credit as well as another valuable credit, called a Renewable Identification Number (RIN) that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations.  These incentives can be claimed once and only once for any given volume of biodiesel.

Furando admitted that sometime in late 2009, he and his companies, New Jersey-based defendants Caravan Trading Company and CIMA Green, began supplying E‑biofuels with biodiesel that was actually made by other companies and had already been used to claim tax credits and RINs.  Because these incentives had already been claimed, Furando could purchase the biodiesel at much lower prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits.  The conspiracy functioned as follows: Furando supplied the product to E‑biofuels and his co-conspirators would claim that E-biofuels made the fuel and then they would illegally re-certify the fuel and sell it at the much higher market price for incentivized biodiesel, known as B100 with RINs.  Within the circle of those he trusted, Furando referred to this fraud scheme as “Alchemy.”

Furando, his New Jersey-based companies and his Indiana-based co-defendants realized huge per gallon profits through this scheme, sometimes in excess of $15,000 per truckload.  Furando realized his profits through the prices he charged E‑biofuels.  Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145.5 million.  The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.

In separate hearings yesterday, three corporations at the heart of the scheme were also sentenced for their joint liability in the scheme. Furando’s companies, CIMA Green LLC, and Caravan Trading LLC, were both sentenced to pay $56 million in restitution and million dollar fines. The companies, which are largely defunct, must serve two years’ probation to ensure that what assets remain are properly directed toward victims.  Toward that end, the court imposed, but suspended, the fines.  The third company, E‑biofuels LLC, operated by Furando’s co-defendants Craig Ducey, Chad Ducey and Chris Ducey, was also sentenced to pay the $56 million in restitution.  E-biofuels is in bankruptcy and its few remaining assets are being distributed to creditors and victims through the bankruptcy process.

The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division and Jake Schmidt, a Special Assistant U.S. Attorney of the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.

The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS-Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture’s Office of Inspector General-Investigations.

All of the other defendants in this case have pled guilty and are awaiting sentencing.  Another co-conspirator, Brian Carmichael, was charged in a separate case.  Carmichael cooperated with the government before the criminal cases were filed.  In December 2015, he received a sentence of five years of imprisonment.

International Operation Concludes in Montana; Convicts 21 Defendants of Child Pornography-Related Crimes

An international operation that led to the conviction of 21 defendants for child pornography-related crimes concluded today in the District of Montana.  These defendants were involved in the sexual exploitation of children via two international online bulletin boards where members advertised, distributed, viewed and received images depicting child sexual exploitation.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Michael W. Cotter of the District of Montana, Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division, Special Agent in Charge David A. Thompson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Denver Field Office and Division Administrator Bryan Lockerby of the Montana Division of Criminal Investigation made the announcement.

Operation Kingdom Conqueror began in 2011 when FBI agents and officers from the Internet Crimes Against Children Task Force (ICACTF) received a tip that ultimately led to the discovery of Kingdom of Future Dreams (KOFD), an online bulletin board operated by Paul Wencewicz, 49, of Polson, Montana, that members used to advertise and trade sexually explicit images of young girls.  Between November 2009 and March 2012, Wencewicz and other members of the bulletin board sexually exploited hundreds of girls, both domestically and internationally, by trading images and videos of them.

The KOFD bulletin board was housed on a server in the Isle of Jersey.  Through cooperation with local police and British authorities, the United States obtained the boards’ data, allowing U.S. federal agents to identify 13 defendants in the United States in addition to Wencewicz and conduct searches in New Jersey, Maryland, Missouri, Indiana, Virginia, Washington, Massachusetts, Kentucky, Arizona, Texas and California.  This investigation revealed that eight of the 14 KOFD defendants were also members of a second child exploitation bulletin board called the Dark Moon, which involved a highly complex encryption scheme.  After gaining access to the board in April 2013, agents identified additional members.

Today, the final defendant, Shawnston Beaudoin, 31, of Kennesaw, Georgia, was sentenced to 210 months in prison and lifetime supervised release.  Beaudoin pleaded guilty to conspiracy to advertise child pornography on Sept. 30, 2015.  In connection with his plea, Beaudoin admitted that he became an active member of Dark Moon in October 2012 and remained an advanced member of the board until April 2013.  During that time, he posted hyperlinks and preview images of child exploitation to the advanced member section of the board.  Beaudoin also requested child pornography from other members and responded to and commented on other members’ postings.  Chief U.S. District Court Judge Dana Christensen of the District of Montana presided over the sentencing.

In addition to Beaudoin, the following individuals have been convicted of conspiracy to advertise child pornography and sentenced as follows:

    Paul Wencewicz, 49, of Polson, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;

    Scott Long, 55, of Portland, Oregon, was sentenced to 200 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution; 

    Steve Humiston, 58, of Tacoma, Washington, was sentenced to 210 months in prison and lifetime supervised release and was ordered to pay a $5,000 fine and $29,859 in restitution;

    Phillip Morris, 43, of Jeffersonville, Indiana, was sentenced to 216 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;

    Tony Bronson, 55, of Gary, Indiana, was sentenced to 224 months in prison and 10 years supervised release and was ordered to pay $29,859 in restitution;

    Jeffrey Woolley, 55, of Nicholasville, Kentucky, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;

    Charles Crosby, 45, of Trenton, New Jersey, was sentenced to 210 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;

    John Johnson, 59, of Locust Grove, Virginia, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;

    Joseph Purificato, 25, of Mount Vernon, Missouri, was sentenced to 180 months in prison and 10 years supervised release and was ordered to pay $29,859 in restitution;

    Ian Nosek, 44, of Charlottesville, Virginia, was sentenced to 216 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;

    Robert Krise, 67, of Gaithersburg, Maryland, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;

    John Merchberger III, 48, of Dayton, Maine, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay a $5,000 fine;

    Daniel Brown, 27, of Taylors, South Carolina, was sentenced to 180 months in prison and lifetime supervised release;

    Marc Edoria, 24, of Sacramento, California, was sentenced to 180 months in prison and 10 years supervised release;

    Tony Gustafson, 49, of Hastings, Nebraska, was sentenced to 200 months in prison and lifetime supervised release;

    Ryan Hatfield, 26, of Mount Washington, Kentucky, was sentenced to 180 months in prison and 10 years supervised release; and

    David Woods, 37, of Corfu, New York, was sentenced to 180 months in prison and 15 years supervised release.

The following defendants were convicted at trial of participating in a child exploitation enterprise and conspiracy to advertise child pornography and were sentenced as follows:

    Joshua Petersen, 45, of Prescott, Arizona, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 restitution; and

    Steven Grovo, 35, of Shirley, Massachusetts, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution.

Richard Pitts, 28, of Cathedral City, California, pleaded guilty to conspiracy to distribute child pornography and was sentenced to 84 months in prison and 15 years of supervised release.

“The predators on these illicit websites glorified the sexual assault of little girls and encouraged each other to share images of this terrible abuse,” said Assistant Attorney General Caldwell.  “For the victim children, this trauma lasts the rest of their lives.  Thanks to the great partnership among federal, state and local law enforcement, these criminals will be punished for their vile crimes and prevented from harming other children.”

“This collaboration of federal and state law enforcement agencies demonstrates the power of the ICACTF and the concerted strength we can bring to bear against these types of child predators when we combine forces,” said U.S. Attorney Cotter.  “These operations succeeded in bringing to justice a group of dangerous and sadistic individuals, some of whom had committed prior sex offenses against children.  As a result of the operations, one threat against Montana’s children—and children everywhere—has been dismantled.  We will continue this successful collaboration and our efforts to protect our children and our communities into the future.”

The FBI, ICE-HSI, the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the Montana Department of Criminal Investigations, the Helena, Montana, Police Department and Montana ICACTF investigated the case.  CEOS Trial Attorney Maureen C. Cain and Assistant U.S. Attorney Cyndee L. Peterson of the District of Montana prosecuted the case.  The Criminal Division’s Office of International Affairs also provided assistance.