Coordinated Law Enforcement Efforts Make Albany Streets Safer

Over the course of the last few years, the coordinated efforts of a number of law enforcement agencies have led to the dismantling of two violent organizations in the City of Albany, and sent their members to federal prison. As a result, the City is now a safer place. These organizations or gangs were known as the Original Gangsta Killers (OGK) or “Downtown” gang, and the Jungle Junkies, or “Uptown” gang. Not only were the members of these two gangs responsible for the distribution of substantial quantities of crack and marijuana in the City, but in order to control and protect their territories, gang members committed armed robberies, assaults, and drive-by shootings, including shootings of rival gang members, and traveled to other states to obtain firearms which they brought back to Albany.

Federal, state and local law enforcement officers initially targeted the illegal activities of the Jungle Junkies. Members of this gang were charged with violating federal Racketeering Influenced And Corrupt Organizations (RICO) and drug conspiracy laws. In 2006, thirty Jungle Junkies gang members or associates were charged, convicted and sentenced: Ernest Conley, Mark Lewis, Shatia Wright, Tracy Battle, Keymon Dobbs, Alan Skorupski, Kamar Harrison, John Welcom, Lavar Houtman, Kahlil Barnes, Rahmel Carter, Amin Cowan, Anthony Fenner, Ahmad Fleming, Rayquinshawn Harrison, Takeem Heath, Lamel Inman, Kali Johnson, Deauntta Malloy, Santonieo Miller, Jr., Ramaar Milner, Lajuan Morales, Kemiek Payne, Shabar Perkins, Taron Robinson, Elquan Sturdivant, Shameek K. Thomas, John VanHoesen, Joshua VanHoesen and Shaheem White.

In 2009, twenty-five OGK members or associates were charged with similar crimes, and all have pled guilty. They are: Terrence Anthony, Elijah Cancer, Mundhir Conor, Wister J. Farmer, Eric D. Foster, Owen Z. Furthman, Justin P. Gaddy, Ladawn H. Harris, Anairian R. Kittle, Michelle P. Knickerbocker, Kwon S. Lilliard, Kolby J. Martin, Jomeek L. McNeal, Winfield C. Nicholson, Alfonso Parker, Marcel D. Perry, Kenyan D. Poole, Dushawn J. Pough, Derrick D. Ruffin, Elijah J. Sims, Nahmel C. Stratton, Nakeem B. Stratton, Dyjuan S. Tatro, Kanan D. Tatro, and Charles M. Thompson. The sentencings for these individuals are scheduled from March through May of 2011. In the course of the investigation of the OGK gang, 25 firearms and various quantities of controlled substances were seized by law enforcement.

The prosecutions of both organizations resulted from an Organized Crime Drug Enforcement Task Force and Safe Streets Task Force investigation conducted by the Office of the United States Attorney for the Northern District of New York; the Federal Bureau of Investigation, Albany Field Division; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Drug Enforcement Administration, Albany District Office; the City of Albany Police Department; the Albany County Sheriff’s Department; the New York State Police; the New York State Department of Corrections; the New York State Division of Parole; and the Rensselaer County Sheriff’s Department, with the assistance of the United States Marshal’s Service, Northern District of New York, Albany Office; U.S. Customs and Border Patrol, Department of Homeland Security; the Albany County District Attorney’s Office; and the Rensselaer County District Attorney’s Office.

Richard S. Hartunian, United States Attorney for the Northern District of New York, said, “In the past five years we have taken important steps to address the violent crime problem in Albany. We have aggresssively prosecuted violent offenders using federal laws and we have reached out to the youth in our community to show them a better way. We are proud of our efforts and will continue to work to showcase our Albany successes as shining examples of how partnerships between law enforcement and the community can lead to positive change.”

Clifford C. Holly, Special Agent in Charge, Federal Bureau of Investigation, Albany Field Division, said, “The investigation of the members of the Original Gangsta Killers gang, as well as the previous investigation of the Jungle Junkies gang, reflect the collective efforts to deter gang activity in the Capital District. This resolve is apparent in the number of arrests made by law enforcement in these cases. The FBI, along with our law enforcement partners, will continue to actively identify individuals and groups throughout the Capital District involved in the most violent gang activity.”

Chief Steven Krokoff, Albany Police Department, stated “The results of these two investigations in 2006 and 2009 have had a positive impact on the entire community of Albany. Through joint investigations similar to this, we have been able to control and suppress violent crime in the City of Albany over the past five years. The city has seen a 24 percent decrease in violent crime since 2005. That is a direct result of the hard work of our officers, law enforcement partners as well as our community partners who have worked with us to steer our youth away from violence.”

Ronald Turk, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, stated that “Today’s announcement of 25 guilty pleas from members of the Original Gangsta Killers is a testament to the tenacious investigative and prosecutorial skills of the agents and prosecutors involved. Through their diligence they saw this investigation through from the initial stages of identifying the gang members, to gathering sufficient evidence, right through to the point that none of these gang members wanted to take their chances in a jury trial, hence 25 guilty pleas. All the law enforcement partners should be extremely proud of their efforts to help make the streets of Albany safer and ATF will continue to target armed violent criminals in our neighborhoods.”

John P. Gilbride, Special Agent in Charge of the New York Division of the Drug Enforcement Administration stated, “Members of the OGK have all pled out to their respective felony charges. Through federal, local and state law enforcement efforts this crack and marijuana drug trafficking organization has been dissolved in order to make Albany’s south side safer from the perils of drug trafficking and the violence associated. I would like to commend all the law enforcement agencies involved and I attribute the success of this investigation to the collaboration that existed throughout its course.”

Mayor Gerald D. Jennings, City of Albany, said, “The coordinated efforts of the U.S. Attorney’s Office and all of the other law enforcement partners have made the streets of Albany a safer place for our citizens and I would like to thank everyone who participated. It is important to identify and arrest those individuals who want to continually engage in drug trafficking and violence in all of our communities. These two investigations succeeded in doing that. We must also continue to educate and work with our young people and provide them with alternatives to gangs and violence.”

Albany County Sheriff James L. Cambell stated “The investigation, arrests, and subsequent pleas of all participants in this case are a perfect example of excellent police work involving Federal, State, and local law enforcement agencies working together.”

Brian Fischer, New York State Department of Correctional Services Commissioner stated: “Unfortunately, some offenders continue their criminal activities even while incarcerated. The vigilance of our staff and that of our fellow law enforcement agencies helps bring those offenders to justice, and these guilty pleas are the latest example. I would like to thank our staff and our partners for their commitment to fighting criminal activity on both sides of prison walls.”

Andrea W. Evans, Chief Executive Officer of the New York State Division of Parole and chairwoman of the Board of Parole stated: “I believe in fighting fire with fire, and we are committed to working with our local and federal partners to ’gang up’ on the gangs that spoil our communities and attempt to intimidate our neighbors. As this prosecution shows, we are not going to be intimidated and we are not going to back down from our commitment to public safety. The fact that every single defendant in this case pleaded guilty is a testament to the strength of the case that was carefully built by an extraordinary team of investigators and prosecutors.”

Brandon LaMora, Supervisory Deputy U.S. Marshal, Albany, stated: “The U.S. Marshal’s Service is always willing to assist our sister agencies in any aspect of their investigations, including the apprehension of the defendants in this case. The coordinated efforts of all the various Federal, State, and Local agencies that participated in the successful investigation, arrest, and prosecution of all the defendants in this case is commendable and will prove to make the Albany area a safer place to live.”

These prosecutions were part of a multi-prong approach to stem gang violence in the City of Albany. On November 8, 2010, United States Attorney Hartunian announced a new school initiative, the LEADership Project (Legal Education and Decision Making), which is providing all 5th grade students in the Albany City School District with lessons about making good decisions, the effects of bad choices, and finding the path to rewarding career opportunities. A coalition of over 50 volunteers from 19 agencies and groups are working with teachers and students from every 5th grade class in the City School District of Albany by participating in four class sessions throughout the school year. The class lessons focus on making good decisions, the effects of bad choices, finding the right way, and achieving the good life by pursuing positive career goals. In the press release announcing the initiative, United States Attorney Hartunian pointed out that “We in law enforcement recognize that aggressive enforcement actions directed at gangsters and violent criminals are only part of the solution to the problems plaguing the residents of Albany and other cities within the Northern District of New York. Equally important is our effort to reach out to our community leaders and schools to send the message that we will work with you to encourage our young people to make good decisions and lead productive lives.”

The United States Attorney’s Office is also partnering with the City School District of Albany in the establishment of a Youth Court program in Albany. On October 26, 2010 representatives of the United States Attorney’s Office made a presentation at a forum hosted by the New York State Bar Association’s Special Committee on Youth Courts in support of the creation of a youth court in Albany, and the Office continues to work with the City School District to implement this important program.

This OGK case is being prosecuted by Assistant U.S. Attorneys Carlos A. Moreno and Daniel Hanlon. Further questions or inquiries may be directed to Deputy Criminal Chief William C. Pericak at (518) 431-0225.

Indianapolis man pleads guilty to human trafficking

PROVIDENCE, R.I. -- Nathan G. Pope, 48, of Indianapolis, Ind., pleaded guilty in U.S. District Court in Providence Monday to conspiracy and transporting an individual across state lines to engage in prostitution, in violation of the Mann Act. Pope and a codefendant, Jan M. Wales, 45, of Indianapolis, were charged with trafficking two women they recruited on the Internet to a Rhode Island hotel to engage in prostitution. Wales pleaded guilty in U.S. District Court in Providence in August. The investigation was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

The guilty pleas, which were accepted by U.S. District Court Judge William E. Smith, were announced by U.S. Attorney for the District of Rhode Island Peter F. Neronha; Bruce M. Foucart, special agent in charge of ICE HSI in Boston; and Warwick Police Chief Colonel Stephen McCartney.

"Many people are unaware that this form of modern day slavery still occurs in the United States," said Special Agent Foucart. Foucart oversees ICE HSI throughout New England. "While we can't erase the suffering these two women experienced, by aggressively investigating and prosecuting these cases, ICE HSI and our law enforcement partners are sending a powerful warning about the consequences facing those responsible for such heinous acts."

At Pope's change of plea hearing, Assistant U.S. Attorney Terrence P. Donnelly told the court that in December 2009, Pope drove the women from Indianapolis to a hotel in Warwick, R.I., and checked in with the intent to solicit customers in Rhode Island and Massachusetts. The next day, Pope left one of the women at the hotel after assaulting her, prompting her to contact Warwick Police. That evening, Pope was located at a hotel in Windsor Locks, Conn., near Bradley Airport, and arrested by ICE HSI special agents on a federal arrest warrant.

Wales, who remained in Indianapolis, scheduled appointments for the women and relayed the information to Pope in Rhode Island via text messages. She was arrested in Arizona in February.

U.S. Attorney Peter F. Neronha commented, "As unbelievable as it may seem, in the shadows of modern society, there are still those who traffic in the lives of others for profit. This office, together with our federal, state and local partners, stands committed to protecting and seeking justice for the victims of these human trafficking crimes, typically women and children."

Pope is scheduled to be sentenced on April 29, 2011.

Earlier this month, President Obama announced that January is National Slavery and Human Trafficking Prevention Month. "Human trafficking is a global travesty that takes many forms. Whether forced labor or sexual trafficking, child soldiering or involuntary domestic servitude, these abuses are an affront to our national conscience, and to our values as Americans and human beings," said President Obama. "There is no one type of victim -- men and women, adults and children are all vulnerable. From every corner of our Nation to every part of the globe, we must stand firm in defense of freedom and bear witness for those exploited by modern slavery."

ICE is attacking these types of crimes on several fronts. The agency encourages the public to recognize and report human trafficking crimes through its Hidden in Plain Sight public outreach campaign. The campaign included widespread distribution of posters, billboards and transit shelter signs. ICE is taking a global strategy, working with non-governmental organizations (NGOs) and international partners hosting meetings, coordinating efforts and sharing information to dismantle human trafficking organizations that bring such desperation to the people they ensnare.

ICE's Victims Assistance Program helps to coordinate services in support of human trafficking victims. In April 2009, ICE was recognized for its commitment to assisting victims of crime with a Federal Service Award from the U.S. Department of Justice National Crime Victims' Service Awards program.

Last summer, the Department of Homeland Security (DHS) launched the Blue Campaign. The Blue Campaign, named for "the thin blue line" of law enforcement, is an outreach effort to bring public awareness to the crime of human trafficking through education and reporting guidelines.

Search and Rescue Academy

They answer the call anywhere in the county when someone goes missing and they do it for free. Volunteers are the driving force behind the Sheriff’s Search and Rescue (SAR) Unit. This week, 25 new volunteers will start four months of Search and Rescue Academy. Here’s the schedule so you can get a glimpse of what it takes to become a part of this unit:

• FRIDAY, January 14th - 7:00 p.m. to 9:00 p.m. at the Sheriff’s Department Training Room, 9621 Ridgehaven Court, San Diego. Students and their families will be introduced to various divisions of SAR such as communications, canine, medical, mounted, motorized, etc. SAR K-9s will be present along with an SAR
rescue truck and SAR mobile command unit.

• SATURDAY, January 15th – 7:30 a.m. to 11:00 a.m. at the Los Peñasquitos Canyon Preserve, 12020 Black Mountain Road. Base Camp is at the Ranch House. Students must complete an 8 mile hike with a 20 pound backpack in less than 3 and half hours. They must complete this hike at least once a year to stay
field qualified.

These two classes are just the beginning of four months of classroom and field trainings. Your contact for both Friday and Saturday is Sgt. Don Parker. You may reach him at (619) 952-8933. For Saturday’s hike, someone at base camp is available to radio Sgt. Parker in case he’s on the trail.

The Sheriff’s SAR Unit has been serving the public for 30 years. Teams are available 24 hours a day to respond to local, state and federal agency requests. To learn more about SAR visit
http://www.sdsheriff.net/sar/units.html.

Detroit Area Strip Club Owner Pleads Guilty to Using Computer Software Program to Delete Club’s Sales in Order to Cheat on Taxes

Nicholas J. Faranso of Farmington Hills, Mich., pleaded guilty today before U.S. District Court Judge John Corbett O’Meara in the Eastern District of Michigan to one count of conspiracy to defraud the United States, the Justice Department and Internal Revenue Service (IRS) announced.   For his role in the conspiracy, Faranso faces a maximum sentence of five years in prison. The court set sentencing for July 14, 2011.

­According to court documents, Faranso owned   two strip clubs:   BT’s in Dearborn, Mich., and Tycoon’s in Detroit.   From 2001 through 2004, both establishments used a computerized point of sales system which produced guest checks and electronically tracked and recorded sales.   Court documents reveal that, in 2001,Faranso purchased a computer software program called Journal Sales Remover from Theodore Kramer, a self-employed computer software salesman.   This computer software program was specifically designed to remove a portion of the actual sales from the computerized point of sales systems.   The program would make it appear that Faranso’s clubs received less income than they actually did.    

Faranso directed Kramer to put the Journal Sales Remover program onto his businesses’ computer systems in order to help the club owner cheat on the businesses’ taxes.   From about 2001 to about 2004, at Faranso’s request, Kramer made periodic visits to Faranso’s clubs to run the Journal Sales Remover program to remove a substantial amount of the actual sales from the computerized sales systems.   Faranso then provided the reduced sales figures to his accountant.   As a result, Faranso falsified the clubs’ tax returns by understating their gross receipts by more than $500,000. Kramer previously pleaded guilty to one count of conspiracy on Nov. 17, 2010.

Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan, and John A. DiCicco, Acting Assistant Attorney General for the Department of Justice, Tax Division, commended the IRS special agents who investigated this matter and Tax Division Trial Attorneys Kenneth C. Vert and Tiwana L. Wright, who prosecuted the case.

Together We Thrive: Tucson and America

By Tracy Russo

This evening, Attorney General Eric Holder joined President Obama and other government officials at the “Together We Thrive: Tucson and America”  – a memorial event in remembrance of the victims of Saturday’s mass shooting in Arizona.

As part of the remembrance, the Attorney General read the following passage from the New Testament:

A Reading from the Second Letter of Paul to the Corinthians (4:13-5:1)

 Since we have the same spirit of faith as he had who wrote, “I believed, and so I spoke,” we too believe, and so we speak, knowing that he who raised the Lord Jesus will raise us also with Jesus and bring us with you into his presence.

 For it is all for your sake, so that as grace extends to more and more people it may increase thanksgiving, to the glory of God.

 So we do not lose heart. Though our outer nature is wasting away, our inner nature is being renewed every day.

 For this slight momentary affliction is preparing for us an eternal weight of glory beyond all comparison, because we look not to the things that are seen but to the things that are unseen; for the things that are seen are transient, but the things that are unseen are eternal.

 For we know that if the earthly tent we live in is destroyed, we have a building from God, a house not made with hands, eternal in the heavens.

 This is the word of the Lord.

AMBER Alerts Now on Facebook

By Tracy Russo

The following post appears courtesy of Laurie O. Robinson, Assistant Attorney General for the Office of Justice Programs.

Today’s announcement that the National Center for Missing & Exploited Children has partnered with Facebook to distribute AMBER Alerts to its members will expand the reach of these important, live-saving alerts.

The AMBER Alert system began 15 years ago in Arlington, Texas, when local broadcasters joined with law enforcement in the aftermath of Amber Hagerman’s abduction and murder, and it has evolved to include law enforcement agencies, broadcasters, transportation agencies, the wireless industry, and others who have joined with us to expand the reach of AMBER Alerts.

Since then the AMBER Alert program has helped find and safely recover 525 abducted children.  Real people – terrified children, frightened parents, dedicated law enforcement offices and vigilant community members – are behind these numbers.  Last October in California, a gang member grabbed an eight-year-old girl while she playing in front of her house.  Her horrified mother ran after the truck, but it was too late.  A statewide AMBER Alert was issued.  Luckily, a member of the community was watching the local news and saw the AMBER Alert message.  When he later spotted the suspect’s car, he followed it and, ultimately, helped to stop the kidnapper from fleeing and to rescue the child.

The new Facebook pages will include one main page as well as 53 local pages, one for each of the 50 states plus the District of Columbia, Puerto Rico, and the Virgin Islands.  By signing up to become a “fan” of the appropriate page, Facebook users can receive AMBER Alerts issued in their regions.  Today’s press conference will be streamed live and archived on the Washington, D.C., Facebook page Livestream player at http://on.fb.me/FBDClive.  It also can be viewed at http://www.livestream.com/facebookdclive.

 As the National AMBER Alert Coordinator, I am pleased to see the growth of the program’s national network.  I would like to thank the National Center for Missing & Exploited Children and Facebook for working together to develop another way the public can join with us to bring home missing and abducted children.  We can all play our part by being aware and responsive to AMBER Alert postings that we will now see on Facebook.

Lake Forest, CAICE aids in investigation of Orange County woman arrested for out-of-state child molestation

LAKE FOREST, Calif. - A 36-year-old Lake Forest, Calif., woman was taken into custody here Friday by investigators with the Orange County Sheriff's Department (OCSD) on suspicion of child molestation and rape of a 13-year-old Maryland boy.

Agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) provided substantial assistance in the investigation and arrest of Rachel Ann Hicks, who is accused of befriending the boy she met on the Internet and traveling to his Maryland home to engage in sexual relations with him.

On January 4, Maryland State Troopers advised OCSD investigators that the initial contact between Hicks and her victim took place in September through an X-Box live chat room. The online relationship progressed to phone calls, texting, emails and the exchange of sexually explicit images and movies. Hicks, who told the boy she was 23, flew to Maryland and met him at his home, where they engaged in sexual intercourse over the Thanksgiving holiday. Soon afterward, the victim's family discovered "romantic" text messages on the boy's cell phone and he told his family what had occurred.

Despite using a fake name and bogus age, HSI agents were able to identify Hicks through subscriber information related to the Hicks' family cell phone. Hicks' identity was confirmed by Maryland police, who obtained a "no bail" warrant for her arrest on two counts of rape, one count of a second-degree "sex offense," and one count of sexual solicitation of a minor.

On January 7, OSCD and HSI investigators executed a search warrant at Hicks' residence. During a subsequent interview, Hicks admitted there was an additional minor male victim in California. All of the evidence collected in the case is being forwarded to the Harford County Sheriff's Office in Maryland to aid in their ongoing investigation and with efforts to identify the second possible victim.

"We're extremely concerned there may be more young victims in this case who've not yet been identified, and are continuing to assist our law enforcement partners with this ongoing investigation," said Joseph Macias, assistant special agent in charge of ICE's Homeland Security Investigations in Orange County. "Pedophiles who mistakenly believe they can evade the law by going out of state to sexually exploit innocent children should know we're using every tool at our disposal to keep our young people safe - whether they are around the block or around the world."

Former State Employee Who Inspected Rehab Clinics Sentenced to 41 Months in Prison for Taking Cash Bribes

LOS ANGELES—A former employee of the California agency charged with inspecting alcohol and drug abuse programs across the state was sentenced today to 41 months in federal prison after being convicted on federal corruption charges for demanding more than $100,000 in bribes from the owners of two drug rehabilitation clinics.

Gary Eugene Goethe, 48, of Sacramento, was sentenced this afternoon by United States District Judge Gary A. Feess, who said Goethe’s conduct was “essentially a shakedown of those...over whom he has authority and the ability to control.” In May 2010, Goethe pleaded guilty to four counts of extortion under color of official right and two counts of bribery. In addition to the prison term he received today,

Goethe was ordered to repay the bribes he received during the FBI’s undercover investigation of his corrupt activities.

Goethe worked for the California Department of Alcohol and Drug Programs (ADP) as a Drug Medi-Cal Monitoring Supervisor who traveled to alcohol and drug treatment clinics throughout California to inspect records and documentation related to Medi-Cal billings. ADP, which receives millions of dollars in funding every year from the United States government, is responsible for administering prevention, treatment and recovery services for alcohol abuse, drug abuse and problem gambling.

Goethe was arrested on July 9, 2009 by special agents with the FBI as he was leaving a meeting where he accepted a $3,500 cash payment that was part of a $10,000 bribe he had negotiated. Goethe subsequently pled guilty to having solicited and accepted bribes from rehabilitation facility owners in exchange for his promises of approvals and other benefits. In a plea agreement filed in this case, Goethe admitted that he told a clinic owner that he could help the owner obtain certifications that would allow the owner to expand service offerings to include mental health treatment. Goethe admitted having promised that, in exchange for cash bribery payments, he could “guarantee” that the owner’s clinics would obtain certification to provide mental health treatment services. Goethe demanded $92,000 in bribery payments from the owner.

In relation to another facility, Goethe revealed to the owner that the clinic was being investigated by the California Department of Justice, but, in exchange for a cash bribe, Goethe could “help” the clinic owner by providing confidential information about the subjects and progress of the investigation, as well as steering CalDOJ away from the clinic. Goethe demanded $10,000 in bribe payments from the owner of this facility.

The case against Goethe was investigated by the Federal Bureau of Investigation.

CONTACT: Assistant United States Attorney Joseph N. Akrotirianakis

Public Corruption and Civil Rights Section

(213) 894-2467.

Owner and Operator of Massachusetts Computer Parts Company Sentenced to 48 Months After Conviction for Wire Fraud and Money Laundering

Used False Identities, Private Mailboxes in at Least 39 States in Connection with $15.4 Million Cisco Networking Equipment Fraud

SAN JOSE, CA—The president of Data Resource Group, a company based in Salisbury, Mass., was sentenced today to 48 months in prison for defrauding Cisco Systems of computer networking equipment and engaging in money laundering by selling the fraudulently obtained equipment to other Cisco hardware resellers, U.S. Attorney Melinda Haag announced. Michael A. Daly was also ordered to pay restitution in the amount of $1 million to Cisco and serve a term of three years of supervised release after completion of his custodial sentence.

According to court documents, from approximately June 2003 to February 2007, Daly, 56, of Danvers, Mass., engaged in a scheme to defraud Cisco. To help carry out his scheme, Daily created fictitious personal and company names, obtained e-mail accounts related to those names, and used the fictitious names to rent private mailboxes around the United States. Daly then used the fictitious names to contact Cisco and falsely claim that parts supposedly covered by contracts under Cisco’s SMARTnet warranty program were failed or defective and needed to be replaced.

According to a previously filed indictment, Daly carried out the fraud more than 1300 times and used private mailboxes in 39 states. On each occasion, he obtained equipment with a list price ranging from $995 to $25,000, resulting in a total loss of approximately $15,455,695.

Under the SMARTnet program, Cisco provides customers with technical support, including advance hardware replacement. Advance hardware replacement allows customers to obtain replacement equipment from Cisco immediately, without having first to return the broken part.

Court documents further show that Daly also engaged in money laundering by selling the fraudulently obtained “replacement” parts to Cisco equipment resellers around the country. On a number of occasions, Daly received tens of thousands of dollars from Cisco resellers for fraudulently obtained parts. Daly generally did not return any parts to Cisco and, when he did, he returned parts not covered by SMARTnet and worth little or nothing.

Daly was charged by indictment on May 9, 2007, with multiple counts of wire fraud and money laundering. On April 9, 2009, pursuant to a plea agreement, Daly pled guilty to wire fraud and money laundering and admitted to the forfeiture allegations contained in the Indictment. Today’s sentence was handed down by United States District Court Judge Ronald M. Whyte.

Richard C. Cheng is the Assistant United States Attorney who prosecuted the case, with the assistance of paralegal Lauri Gomez. The guilty plea is the result of an investigation by the Federal Bureau of Investigation with the assistance of Cisco Systems Global Business Controls.

Further Information:

Case #: CR 07-00282 RMW

A copy of this press release may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.

Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.

All press inquiries to the U.S. Attorney’s Office should be directed to Jack Gillund at (415) 436-6599 or by email at Jack.Gillund@usdoj.gov.

Pennsylvania Odometer Tamperer Sentenced to 100 Months in Prison

Ordered to Pay More Than $4 Million in Restitution

PHILADELPHIA – Yakov Babchinetskiy, 43, of Huntingdon Valley, Pa., was sentenced today in Philadelphia by U.S. District Court Judge Legrome D. Davis to 100 months in prison plus three years of supervised release for his role in a conspiracy to alter odometers on used motor vehicles, provide false odometer statements, and commit wire and securities fraud, the Justice Department announced. He was also ordered to pay restitution of more than $4,098,165

to the victims of the fraud, which include consumers, retail automobile dealers and insurance companies.

From 2002 to 2005, Babchinetksiy conspired with other individuals to purchase high-mileage used motor vehicles, alter the mileage on the titles, roll back the odometers, and sell the vehicles at a false low-mileage to dealers and consumers. Co-defendants Mikhail Gokhman and Yan Hershman previously pleaded guilty to similar charges and were also sentenced by Judge Davis.

Mikhail Gokhman was sentenced in October 2008 to 10 years in prison; and Yan Hershman was sentenced in July 2008 to 48 months in prison. Hershman, who was an illegal alien, was deported to Israel after serving his sentence. Another co-defendant, Edvard Khakhan, remains a fugitive.

In a related case brought in the Middle District of Pennsylvania, James Russell Bradbury, a former Pennsylvania Department of Transportation title clerk, pleaded guilty and was sentenced in November 2006 by U.S. District Court Judge Yvette Kane to 21 months in prison for bribery concerning a program receiving federal funds.

"This type of financial fraud harms consumers making one of the biggest investments they will make: their automobile. Dishonest dealers who roll back odometers cheat customers out of their hard-earned money, impede informed buying choices, and raise safety concerns by misrepresenting the actual condition of the vehicles they sell," said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. "The Justice Department will seek appropriately tough sentences for those engaging in these illegal practices."

"Consumers are entitled to know exactly what they are buying," said Zane Memeger, U.S. Attorney for the Eastern District of Pennsylvania. "The type of fraud committed by this defendant deprives the car buying public of the right-to-know how many miles a car has been driven prior to purchase. Such mileage could ultimately affect car safety and the costs of future repairs to the consumer."

This case was investigated by the National Highway Traffic Safety Administration Office of Odometer Fraud Investigation and the Pennsylvania State Police. It was prosecuted by Senior Litigation Counsel Linda I. Marks and Trial Attorney Mary Murphy of the Civil Division’s Office of Consumer Litigation, with assistance from the U.S. Attorney’s Office in Philadelphia.

Mobile Surveillance Systems aid in Marijuana Seizures

Tucson, Ariz. – In two incidents over the weekend, U.S. Border Patrol agents assigned to the Tucson Sector’s Casa Grande Station seized a total of 1,160 pounds of marijuana. The estimated value of the contraband is approximately $935,000.

Border Patrol agents operating a Mobile Surveillance System (MSS) detected a group of suspected illegal aliens in a remote location near the United States/Mexico International Boundary. Upon arrival to the location, agents discovered backpacks of marijuana hidden in a wash. Evidence obtained at the scene indicated that the smugglers absconded into Mexico to avoid arrest. The marijuana, weighing 615 pounds, was transported to the Casa Grande Station for processing.

In a separate incident, agents, who were also operating an MSS, detected another group of suspected illegal aliens. 

Agents assigned to the Motorcycle Unit, working in tandem with the Customs and Border Protection Office of Air and Marine, responded to interdict the group. The collective effort resulted in 554 pounds of marijuana seized and three arrests. The suspects and the marijuana were transported to the Casa Grande Station for processing.

“With the deployment of advanced detection technology and increasing numbers of personnel, it is become more and more difficult for transnational criminals to conduct operations in the West Desert,” stated Associate Chief Raleigh Leonard. “You also have literally hundreds of Southern Arizona law enforcement officers all working together in a united front with a focus on disrupting, degrading, and dismantling transnational criminal networks.”

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Photos Released of Serial Bank Robber

The FBI Detroit Division needs your help in connection with multiple robberies throughout Macomb and Wayne Counties from October 2010 through January 2011. The robberies connected to this individual are:

10/28/2010 - Chase Bank,

31045 Harper Avenue, St. Clair Shores, Michigan

11/18/2010 - Comerica Bank,

30500 Van Dyke Avenue, Warren, Michigan

11/26/2010 - Bank of America,

20599 Mack Ave, Grosse Pointe Woods, Michigan

12/21/2010 - PNC Bank,

31320 Harper Avenue, St. Clair Shores, Michigan

1/5/2011 - Comerica Bank,

28801 Groesbeck Hwy, Roseville, Michigan

The individual is described as a black male, early to mid 30’s, approximately 5’10” - 6’ tall , with a medium build. The robber has worn a baseball cap in each robbery, including a hat with the Philadelphia Phillies and Detroit Red Wings logos. The robber may be driving a maroon/burgundy sport utility vehicle (SUV). The bank’s surveillance photographs are below.

Those with information concerning the identity of the robber are asked to call the Federal Bureau of Investigation (FBI) at (586) 412-4844.

La Potra Bar Investigation Results in Convictions and Prison Terms

HOUSTON—A Human Trafficking Rescue Alliance (HTRA) task force investigation into reported illegal activities at the La Potra Bar has resulted in the conviction of four for various federal offenses and prison terms for two sentenced today, United States Attorney José Angel Moreno announced today.

Luis Urbina aka “El Negro,” 27, and Christian Javier Guzman Flores, 21, who were convicted of conspiring to distribute cocaine from the Houston area bar, were sentenced today by United States District Judge Vanessa Gilmore. Urbina received time served—approximately 15 months in federal prison, while Flores is to serve 37 months’ imprisonment. Both sentences are to be served without parole.

Urbina and Flores are two of five defendants named in two federal indictments charged with various federal offenses for illegal conduct at the La Potra Bar, located at

6149 Airline Dr.

in Houston. Also charged and pending sentencing later this year is Wilson Sauzo aka Walter Reyes, 29. Sauzo, convicted of conspiracy to possess with intent to distribute cocaine after pleading guilty in April 12, 2010, is pending sentencing April 18, 2011, at which time he faces a maximum of 20 years’ imprisonment. Charges against the fourth defendant, Carlos Cabrera, 47, a Honduran national, were dismissed on April 30, 2010, after Cabrera died as a result of a self-inflicted injury. Urbina, Flores, and Sauzo are also foreign nationals from the Republic of Honduras subject to deportation upon completing their prison terms.

A fifth defendant charged separately, Jose Martin Zavala-Acosta, 27, aka “El Chilango,” a Mexican national, plead guilty to a charge of smuggling illegal aliens in February 2010 and was sentenced by U.S. District Judge Kenneth Hoyt on May 10, 2010, to 24 months’ imprisonment.

According to the record of this case, the investigation leading to the charges against all of these defendants was initiated upon receipt of reports that prostitution, human trafficking and drug dealing was occurring at the La Potra Bar. As a result, members of the HTRA in Houston, which includes the FBI, Immigration and Customs Enforcement - Homeland Security Investigations, the Harris County Sheriff’s Office, the Houston Police Department, and the Texas Alcohol and Beverage Commission, initiated an investigation. That investigation led to evidence proving numerous cocaine transactions involving Urbina, Flores, and Sauzo occurring at the bar and further evidence proving Zavala-Acosta paid an alien smuggler to smuggle illegal aliens into the United States.

Assistant United States Attorneys Ruben R. Perez and Joe Magliolo prosecuted the case for the government.

California Man Sentenced to Five Years in Prison for Conspiracy to Act as a Foreign Agent, Export Military Equipment, and Possess Stolen Property

FRESNO, CA—Amen Ahmed Ali, 60, aka Ali Amin Alrowhani or Ameen Alrohany, of Bakersfield, California, was sentenced today by U.S. District Court Judge Lawrence J. O’Neill to five years in prison to be followed by three years’ supervised release for conspiring to act as an illegal agent of a foreign government, to unlawfully export defense materials, and to possess stolen government property, announced U.S. Attorney Benjamin B. Wagner and David Kris, Assistant Attorney General for National Security.

Ali pled guilty to the charges on Oct. 7, 2010, admitting that, beginning in about 1987, he conspired with others to act as an unregistered agent of the government of Yemen and received instructions and acted on behalf of the Armed Forces Department of the Republic of Yemen.

Ali also admitted in the plea agreement that in 2003, he conspired with another person to cause various defense, articles including bulletproof vests and chemical protective suits, to be exported to Yemen without a license. Finally, Ali admitted in his plea agreement that in late 2005 and early 2006, he negotiated with an undercover FBI agent to obtain and ship to Yemen materials that he believed were stolen U.S. military equipment, including night vision goggles, satellite telephones, and laptop computers.

This case was the product of a long-term investigation by the Joint Terrorism Task Force, which involved members of the FBI, Bakersfield Police Department, the Kern County Sheriff's Office, and the U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorneys Duce Rice and Stanley Boone and Trial Attorney Clifford Rones of the Department of Justice’s Counterespionage Section.

Keeping Company Secrets Secret

FBI Agent Offers Tips on Guarding Valuable Information

When most people think of theft, they think of having a laptop, a wallet, or a piece of jewelry stolen. There’s no doubt that being a victim of any type of theft can be very distressing. But what if you were to invest countless hours and money into an invention only to have the idea stolen? “This type of crime is what’s called trade secret theft,” explains FBI Special Agent Karl Schmae. “It can be absolutely devastating to the person or company that has put a lot of time and money into developing a product.” Special Agent Schmae is assigned to the FBI Salt Lake City Field Office and teaches companies how to guard their trade secrets. A trade secret can be anything from a unique food recipe to a specialized car part. In other words, it’s what sets one company or product apart from all the others. Sometimes it’s an insider, such as an employee, who will steal the information to sell. In other cases it may be an outsider, perhaps a computer hacker, who gains access to private files. Whatever the circumstance, the bottom line is at stake. “Imagine the financial edge a competitor stands to gain if they get information and documents that detail how to make the product that you or your company designed,” says Schmae.

The FBI investigates theft of trade secrets under the Economic Espionage Act. For successful prosecution, it’s imperative that companies take reasonable measures to protect their trade secrets from the start. How can do they do this? Companies should identify what their trade secret is and limit access to that information. Personnel who are granted access should sign non-disclosure agreements. Schmae strongly recommends companies secure or lock up the information and provide mandatory security awareness training for employees. Finally, a company should destroy any trade secret information that’s no longer needed. 

Special Agent Schmae is available to educate companies about threats and provide tips about how to protect trade secrets. He also encourages companies that feel they’ve been victimized to report it to the FBI. For more information, contact Special Agent Schmae at the FBI Salt Lake City Field Office (801) 579-1400.

Federal Court Permanently Bars Florida Woman from Preparing Federal Tax Returns for Others

Pembroke Pines Woman Allegedly Claimed Improper First Time Homebuyer Credits and Other Items On Customers’ Returns

WASHINGTON – A federal court has permanently barred Dianelys Armengol Guevara of Pembroke Pines, Fla., from preparing federal income tax returns for others, the Justice Department announced today. The permanent injunction order, to which Guevara consented, was entered by Judge Cecilia Altonaga of the U.S. District Court for the Southern District of Florida in Fort Lauderdale.

The government complaint in the case alleges that Guevara has prepared returns that falsely claim tax credits and deductions, including the first-time-homebuyer credit, for her customers. According to the complaint, Guevara improperly claimed over $950,000 in homebuyer credits, misrepresented the requirements for the credit to her customers, failed to disclose to her customers that a person must actually purchase a home in order to claim the credit, and claimed the credit without her customers’ knowledge or against their wishes.

The government’s suit also claims that Guevara failed to identify herself properly as the paid tax return preparer on many of the returns. She allegedly used a fictitious Social Security number to identify herself on hundreds of returns she prepared.

In the past 10 years the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax-fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department website.

Del Rio Border Patrol Agents Have Busy Week

Over $1.2 Million of Marijuana Off The Streets

(Friday, January 07, 2011)

Del Rio, Texas – U.S. Border Patrol agents seized over 1,550 pounds of marijuana, worth more than $1,200,000 during the last week of the year.

On Dec. 27, Border Patrol agents from Carrizo Springs were patrolling on a ranch, when they noticed abnormalities in the brush. Upon further investigation, three military-style duffle bags were discovered abandoned. The duffle bags contained marijuana that weighed over 129 pounds. The marijuana was turned over to the Drug Enforcement Administration.

On Dec. 28, Border Patrol agents from Eagle Pass were working near Normandy when they observed a sedan traveling at a high rate of speed. A traffic stop was initiated and the sedan was found to contain five bundles of marijuana that weighed over 357 pounds. The driver, sedan and marijuana were turned over to the Drug Enforcement Administration. Later that evening, agents observed five individuals carrying feed sacks near the Rio Grande River. When agents encountered the subjects, they dropped the feed sacks and attempted to abscond back to Mexico. Agents were able to apprehend two of the subjects. The feed sacks contained over 339 pounds of marijuana. Both subjects and marijuana were turned over to the Maverick County Sheriff’s Office.

On Dec. 29, Border Patrol agents from Eagle Pass were working near the Rio Grande River when they noticed five subjects carrying large duffle bags. When the smugglers encountered the agents, they dropped the duffle bags and absconded back to Mexico. The large duffle bags contained marijuana bundles weighing over 411 pounds. The marijuana was turned over to the Drug Enforcement Administration.

On Dec. 31, Border Patrol agents from Eagle Pass performed a vehicle stop on a sport utility vehicle. The driver attempted to abscond on foot, but was apprehended by agents. The vehicle contained several bundles of marijuana in the rear and cargo areas with a total weight of 320 pounds. The driver, vehicle and marijuana were turned over to the Drug Enforcement Administration.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Lobbyist Sentenced to 27 Months in Prison for Role in Illegal Campaign Contribution Scheme

WASHINGTON – Paul Magliocchetti, the founder and president of PMA Group Inc., a lobbying firm, was sentenced today to 27 months in prison for making hundreds of thousands of dollars in illegal campaign contributions and making false statements to a federal agency, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.

U.S. District Court Judge T.S. Ellis III also sentenced Magliocchetti to two years of supervised release and ordered him to pay a $75,000 fine. Magliocchetti pleaded guilty in U.S. District Court in Alexandria, Va., on Sept. 24, 2010, to one count each of making false statements, making illegal conduit contributions and making illegal corporate contributions.

“Paul Magliocchetti spent half of a decade gaming the system.  He concocted a massive scheme to secretly funnel money to political campaigns – all so that he could gain wealth and prestige,” said Assistant Attorney General Lanny A. Breuer of the Criminal Division.  “As today’s sentence makes clear, he must now pay a price.  We will continue to bring to justice those who hide the source of campaign funds and thus damage the integrity of our election process.”

 “Mr. Magliocchetti carried out one of the largest federal campaign finance frauds in history,” said U.S. Attorney MacBride.  “He learned that no one – despite wealth and influence – is above the law.  Today’s sentence should put anyone on notice that if you seek to buy the influence of elected public officials through skirting the campaign finance laws you’ll not merely be exposed publicly but you’ll go to prison for a long time.”

 “Enhancing one’s professional reputation by using colleagues, friends and even family to make illegal campaign contributions is dishonest; and Mr. Magliocchetti knew that his actions were against the law,” said James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.  “I am proud of the team of agents from the Defense Criminal Investigative Service and FBI who worked on behalf of all Americans to investigate this blatant abuse of prestige and money. The public needs to trust that elections will not be influenced in this manner.”

He was charged in an indictment unsealed on Aug. 5, 2010.  According to the indictment, Magliocchetti orchestrated a scheme to make illegal conduit and corporate federal campaign contributions in an effort to enrich himself and PMA by increasing the firm’s influence, power and prestige among the firm’s current and potential clients as well as among the elected public officials to whom PMA and its lobbyists sought access.  The federal campaigns that received these funds were unaware of Magliocchetti’s scheme.

Magliocchetti admitted that, from 2003 through 2008, he used members of his family, friends and PMA lobbyists to make unlawful campaign contributions.  Aware of the strict limits on individual federal campaign contributions – and the outright ban on corporate contributions – Magliocchetti admitted that he instructed the conduits to write checks out of their personal checking accounts to specific candidates for federal office and that, for the purpose of making these contributions, Magliocchetti advanced funds to or reimbursed these individuals using personal and corporate monies.  Magliocchetti also admitted that, through this scheme, he caused various federal campaign committees to unknowingly create and file false reports with the Federal Election Commission (FEC) regarding the contributions they had received.  These reports, which the FEC made available to the public, falsely stated that the conduits had made contributions, when in fact the contributions were made by Magliocchetti or PMA.

In connection with this investigation, Mark Magliocchetti pleaded guilty on Aug. 5, 2010, before U.S. Magistrate Judge T. Rawles Jones Jr., in U.S. District Court in Alexandria to making illegal corporate campaign contributions.  According to court documents, Mark Magliocchetti admitted to receiving payments from an individual and a company with the understanding that those monies were to be used for federal campaign contributions.  According to court documents, the amount of contributions made by Mark Magliocchetti and his wife, and funded by the individual and the company, exceeded $120,000 but was less than $200,000.  Mark Magliocchetti was sentenced to 14 days in prison plus five and a half months of home confinement.

This case was prosecuted by Deputy Chief Justin V. Shur and Trial Attorneys M. Kendall Day and Kevin O. Driscoll of the Criminal Division’s Public Integrity Section, and by Assistant U.S. Attorney Mark D. Lytle of the U.S. Attorney’s Office for the Eastern District of Virginia.  The case was investigated by the FBI and the Defense Criminal Investigative Service.

Former U.S. Army Staff Sergeant Sentenced to 90 Months in Prison for Bribery in Afghanistan Fuel Theft Scheme

WASHINGTON - A former U.S. Army staff sergeant was sentenced today to 90 months in prison in connection with a fuel theft scheme to solicit more than $400,000 in bribes from a government contractor in Afghanistan, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.

Stevan Nathan Ringo, 26, of Marrero, La., was also ordered by U.S. District Judge T. S. Ellis III to forfeit the proceeds of the scheme, which included $408,495 and other property.  In addition, Judge Ellis sentenced Ringo to serve three years of supervised release following his release from prison.  Judge Ellis deferred until a later date his decision on the amount of restitution the defendant will be ordered to pay.  Ringo pleaded guilty on Sept. 24, 2010, to one count of bribery. 

According to court documents, Ringo was stationed at Forward Operating Base (FOB) Shank, a U.S. Army installation in the Logar Province of Eastern Afghanistan.  FOB Shank supports U.S. military operations in Afghanistan in various ways, including through fuel receipt and redistribution.  More specifically, the Army stores large quantities of fuel at FOB Shank and redistributes that fuel to installations in the surrounding area through government contractors.  Ringo’s responsibilities at FOB Shank included supervision of that fuel redistribution process.

In his guilty plea, Ringo admitted that between December 2009 and February 2010, he accepted more than $400,000 in cash payments from a government contractor in exchange for creating and submitting fraudulent paperwork permitting that contractor to steal fuel from FOB Shank.  The total value of the fuel stolen in the course of the scheme was nearly $1.5 million.

The case was prosecuted by Trial Attorney Ryan S. Faulconer of the Criminal Division’s Fraud Section and former Assistant U.S. Attorney Edmund P. Power for the Eastern District of Virginia.  Substantial assistance was provided by the Criminal Division’s Office of International Affairs.   The case was investigated by the FBI’s Washington Field Office, the Defense Criminal Investigative Service, the U.S. Army Criminal Investigative Division, other military law enforcement at FOB Shank, and members of the former National Procurement Fraud Task Force (NPFTF) and the International Contract Corruption Task Force (ICCTF).

The NPFTF, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention and prosecution of procurement fraud.  In November 2010, the NPFTF membership became a part of the Financial Fraud Enforcement Task Force, an interagency task force established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The ICCTF is a joint law enforcement agency task force that seeks to detect, investigate, and dismantle corruption and contract fraud resulting from U.S. Overseas Contingency Operations worldwide, including in Kuwait, Afghanistan and Iraq.

The FBI and Police in Los Angeles and Orange Counties Are Seeking the Public’s Assistance in Learning the Whereabouts of the Recently Identified “Scanner Bandit,” Linked to Fourth Robbery This Week

The FBI and detectives with the Los Angeles County Sheriff's Department, Orange Police Department, Torrance Police Department and Whittier Police Department are seeking the public's assistance in finding bank robbery suspect Garry Allen Reeder, formerly known only as the "Scanner Bandit." Previously, the FBI released bank surveillance photographs of the Scanner Bandit, a male suspect believed to be responsible for multiple bank robberies since December 15, 2010.

An investigation by detectives and agents has focused on a California man, Garry Allen Reeder, born on 1/8/1963. A warrant for Reeder, who is believed to have committed the robberies, has been issued by state officials. Reeder is white male and, according to his California license, he is 5'7", 180 lbs., with blue eyes. Reeder may currently be wearing a beard.

Investigators believe Reeder may be residing in local hotels and that he has or will travel to other jurisdictions or out of state. Additionally, Reeder is believed to be robbing banks to support a gambling and/or drug addiction; or both.

Anyone with information as to Reeder's location is urged to contact law enforcement immediately and warned to refrain from confronting Reeder, who is considered armed and dangerous.

The suspect was named the Scanner Bandit based on witness descriptions that he carries a device in one hand, described as a police scanner. The Scanner Bandit also threatens to have an explosive device, which he partially conceals inside a black folder.

The Scanner Bandit most recently robbed a bank in Orange, California, on Tuesday, January 4. After the robbery, police and explosives experts with the city of Orange, Orange County and the FBI responded when a suspected explosive device was left behind. The device was rendered safe.

The Scanner Bandit has been linked to the following four bank robberies:

1 1/4/2011 Bank of

America Tustin Blvd. Orange

2 12/21/2010 Bank of

America Sartori Ave. Torrance

3 12/18/2010 U.S. Bank

E. Whittier Blvd. Whittier

4 12/15/2010

U.S. Bank Pioneer Blvd. Norwalk

Bank surveillance photographs from each robbery, as well as a photograph of Gary Reeder are available. Anyone with information as to the identity or whereabouts of Gary Reeder is urged contact the FBI or dial 911. In Los Angeles, the FBI can be reached 24 hours a day, seven days a week at 888 CANT HIDE (888 226-8443).

Please visit www.labankrobbers.org for additional information about bank robbery suspects in the greater Los Angeles area.

MEDIA CONTACT:

FBI: Laura Eimiller: 310 996-3343; or Lourdes Arocho (Spanish Speaker)

Orange Police Department: Sgt. Dan Adams: 714 715-4814

Torrance Police Department: 310 618-7131

Los Angeles County Sheriff's Department: Captain Michael Parker: 323 267-4800

Mount Royal, New Jersey Man Sentenced to 10 Years in Prison for Eight Bank Robberies

CAMDEN, NJ—A Mount Royal, N.J., man was sentenced today to 120 months in prison for committing eight bank robberies between September 19, 2008, and September 25, 2009, U.S. Attorney Paul J. Fishman announced.

Brian Layton, 49, previously pleaded guilty to an eight-count Information charging him with robberies occurring in Wilmington, Del., and four New Jersey counties. He entered his guilty plea before United States District Judge Jerome B. Simandle, who also imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

Layton admitted that he robbed the following banks:

COUNT  DATE  BANK LOCATION  AMOUNT TAKEN 

1 September 19, 2008 WSFS Bank, Wilmington, Del.  $2,102 

2 October 10, 2008 TD Banknorth, Blackwood, N.J.  $3,550 

3 December 22, 2008 Sun National Bank, Glendora, N.J.  $4,606 

4 February 2, 2009 TD Bank, Hi-Nella, N.J.  $2,749 

5 March 23, 2009 Newfield National Bank, Franklin, N.J.  $8,548 

6 May 15, 2009 The Bank, Carneys Point, N.J.  $20,400 

7 July 28, 2009 Sturdy Bank, Ocean City, N.J.  $3,829 

8 September 25, 2009 The Bank, Carneys Point, N.J.  $12,148 

During the robberies, Layton approached tellers in the banks and demanded money before fleeing on a bicycle. During the final September 25, 2009, robbery, Layton was armed with a pellet gun.

Layton was apprehended on September 25, 2009, after he fled from a New Jersey State Police Trooper on the

Garden State Parkway

. While fleeing, Layton threw away a backpack which contained approximately $12,106, most of the proceeds of the September 25, 2009 robbery.

In addition to the prison tern, Judge Simandle ordered Layton to serve three years of supervised release and to pay restitution in the amount of $43,724 to the banks he robbed.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge George Venizelos in Philadelphia and Special Agent in Charge Michael B. Ward in Newark, and the New Jersey State Police, under the direction of Superintendent Colonel Rick Fuentes, for the investigation leading to today's sentence.

The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney's Office Criminal Division in Camden.

Former Elizabeth, New Jersey Equipment Manager Admits Fraud Against Elizabeth Schools

NEWARK—Former Elizabeth Public Schools Equipment Manager Robert Firestone admitted today that he conspired to defraud the school system through fraudulent business practices for his personal gain, U.S. Attorney Paul J. Fishman announced.

Firestone, 64, of Clark, N.J., pleaded guilty to an Information charging him with one count of conspiracy to commit mail fraud. He entered his guilty plea before U.S. District Judge Dickinson R. Debevoise in Newark federal court and was released on a $50,000 bond.

According to the documents filed in this case and statements made in court:

Firestone, who was employed as Equipment Manager for Elizabeth Public Schools (“Elizabeth”) from at least February 2006 to April 2007, admitted that during this time, he conspired with employees from Circle Systems Group, Inc. (“Circle”)—a company that was in the business of selling and conditioning athletic equipment, uniforms and apparel—to commit fraud relating to Elizabeth’s purchasing of Circle’s services.

Firestone also admitted that, on several occasions, he approved fraudulent invoices submitted by Circle to Elizabeth for payment, knowing that Circle had not performed the full amount of the billed services. Once Elizabeth paid an invoice, Circle officials advised Firestone that the school district maintained an internal credit with Circle. Firestone stated that, on certain occasions, he requested that Circle use portions of the schools’ credit to purchase merchandise for his personal benefit. During the course of the conspiracy, Firestone received more than $7,000 in personal goods and merchandise, including electronic equipment such as a flat-screen TV, a Bose radio system and a digital camera—as well as various articles of clothing and athletic apparel. The items were paid from Elizabeth’s credit with Circle that was created through the fraudulent invoices paid by the district.

The case against Firestone is part of the ongoing investigation into Circle’s business practices conducted by the FBI and the U.S. Department of Education Office of Inspector General. On Dec. 22, 2008, former Circle president David Drill pleaded guilty to conspiring to defraud various New Jersey schools. On Dec.16, 2010, former Long Branch High School athletic director Charles Ferrara, Jr., pleaded guilty to conspiring to defraud Long Branch High School in a similar manner. Both Drill and Ferrara await sentencing.

The charge to which Firestone pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 18, 2011.

U.S. Attorney Fishman credited special agents of the U.S. Department of Education Office of Inspector General, under the direction of Special Agent in Charge Brian Hickey; and special agents of the FBI in Newark, under the direction of Special Agent in Charge Michael B. Ward, with the investigation.

The government is represented by Assistant U.S. Attorney Christopher J. Gramiccioni of the U.S. Attorney’s Office Special Prosecutions Division and Senior Litigation Counsel John M. Fietkiewicz of the Office’s Criminal Division.

Defense counsel: Wanda M. Akin, Esq., Newark, N.J.