Former Employee of U.S. Embassy in Baghdad Sentenced to 42 Months in Prison for Stealing Nearly $250,000

WASHINGTON – A former employee of the U.S. Embassy in Baghdad, Iraq, was sentenced today in U.S. District Court in Alexandria, Va., to 42 months in prison for stealing nearly $250,000 intended for the payment of shipping and customs services for the embassy, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride for the Eastern District of Virginia.

Osama Esam Saleem Ayesh, 36, was also ordered to pay $243,416 in restitution and a $5,000 fine, as well as to serve three years of supervised release following his prison term.   A federal jury convicted Ayesh on two counts of theft of public money and one count of engaging in acts affecting a personal financial interest.   Ayesh was arrested at Dulles International Airport on Aug. 16, 2010, and indicted on Oct. 15, 2010, on the charges for which he was convicted.

Ayesh, a resident of Jordan, was hired by the Department of State as a shipping and customs supervisor at the embassy in Baghdad, who oversaw the shipments of personal property of embassy officials and personnel in Iraq.   His duties required that he maintain close contact with local Iraqi companies and vendors with expertise in clearing goods through Iraqi customs. As a State Department employee, Ayesh was aware that he would be subject to the conflict of interest laws of the United States that prohibit government employees from using their position for personal profit.

According to court records, Ayesh used his State Department computer to create a phony e-mail account in the name of a real Iraqi contractor and used that e-mail account to impersonate the contractor in communications with embassy procurement officials.   He also established a bank account in Jordan under his wife’s name to further his criminal scheme and falsified wire transfer instructions that directed U.S. government electronic funds transfers to that account.  

Court records and evidence at trial showed that Ayesh was personally involved in establishing and operating blanket purchase agreements for the provision of customs clearance and delivery services to the U.S. Embassy in Baghdad.   From November 2008 to June 2010, Ayesh submitted false invoices in the name of an Iraqi contractor – which Ayesh fabricated on blank stationery he kept in his embassy apartment – and caused the U.S. Department of State to wire $243,416 to his wife’s account in Jordan.

This case was prosecuted by David Laufman of the Criminal Division’s Fraud Section, who is on detail to the Department of Justice from the Special Inspector General for Iraq Reconstruction, and Assistant U.S. Attorney Thomas McQuillan of the Eastern District of Virginia.   The Criminal Division’s Office of International Affairs provided assistance in this matter.   The case was investigated by special agents of the State Department’s Office of Inspector General and the FBI’s Washington Field Office.

Natural Gas Company Pleads Guilty in Arkansas in Connection with Fayetteville Shale Pipeline Construction Activities

WASHINGTON – Hawk Field Services LLC, a wholly-owned subsidiary of Houston-based Petrohawk Energy Corporation, pleaded guilty today in federal court in Little Rock, Ark., to charges stemming from the illegal take of endangered species in north-central Arkansas, the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Arkansas announced. 

Hawk Field Services, pleaded guilty to three counts of violating the Endangered Species Act.   The Endangered Species Act is a federal law that makes it illegal to take endangered species, by harassing the wildlife to such an extent that it significantly disrupts normal behavioral patterns such as breeding, feeding or sheltering. 

According to the information filed in the case and today’s plea agreement, Hawk Field Services, was engaged in gathering, conditioning and treating activities related to the development of natural gas properties in the Fayetteville Shale in north-central Arkansas.  The Fayetteville Shale is an unconventional gas reservoir located in the Arkoma Basin in Arkansas, at a depth of approximately 1,500 to 6,500 feet and ranging in thickness from 100 to 500 feet. The South, Middle and Archey Forks of the Little Red River, and their tributaries, are located in steep, mountainous terrain within the Fayetteville Shale region and contain the endangered speckled pocket book mussel. 

Hawk Field Services acquired and developed land in the Fayetteville Shale, on which wells and pipelines were installed.   The pipelines are subsurface and were constructed by Hawk Field Services, across the streams by either trenching or using a technique known as directional drilling.   In either case, Hawk Field Services cleared the land on both sides of a stream, exposing bare ground until the pipeline was installed and the land remediated, by re-seeding and re-foresting.   In today’s plea agreement, Hawk Field Services admitted that it did not adequately control erosion during construction, from October 2008 to April 2009, of the pipelines in the Little Red River watershed.   This lack of erosion control allowed silt to run downhill to the streams, causing sediment to build up at the stream crossing and downstream.   This erosion and sedimentation occurred in waters containing the endangered speckled pocketbook mussel, and caused a take of at least one mussel by harassment, in the South Fork, Little Fork and Archey Fork of the Little Red River.  

The maximum penalty for a corporation for a violation of the Endangered Species Act includes a $200,000 fine per count.  According to the plea agreement filed today, Hawk Field Services agreed to pay a $350,000 fine and to donate $150,000 to the National Fish and Wildlife Foundation, for use in restoration projects in the Little Red River watershed.   The sentencing hearing will be on a date to be determined by the court.

The case was investigated by the U.S. Fish & Wildlife Service, with assistance from the Arkansas Fish and Game Commission.  The case is being jointly prosecuted by Assistant U.S. Attorney Edward O. Walker of the U.S. Attorney’s Office for the Eastern District of Arkansas and Trial Attorney Todd S. Mikolop of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.

Justice Department Files Suit Against Woman for FACE Act Violations Against Kansas Physician

WASHINGTON – The Justice Department today filed a civil complaint in the U.S. District Court for the District of Kansas against Angel Dillard for violating the Freedom of Access to Clinic Entrances Act (FACE Act).  

According to court documents, on or about Jan. 15, 2011, Dillard mailed a threatening letter to a doctor training to perform abortions in Wichita, Kan.   The letter, among other threatening language, referenced explosives placed under the doctor’s car.   The FACE Act prohibits threats of force against any person providing or obtaining reproductive health services, with the intent to intimidate or interfere with that person.

Among other things, Dillard wrote:   “Thousands of people are already looking into your background, not just in Wichita, but from all over the U.S.   They will know your habits and routines.   They will know where you shop, who your friends are, what you drive, where you live.   You will be checking under your car everyday-because maybe today is the day someone places an explosive under it.”   Later Dillard added:   “We will not let this abomination continue without doing everything we can to stop it.”

In its complaint, the United States seeks an order preventing Dillard from contacting the doctor and from coming within 250 feet of the doctor, her home, car or place of business.   The complaint also seeks monetary damages.  

“Protecting the right of reproductive health services providers to do their jobs free from the threat of harm is of the utmost importance,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Department of Justice will continue to aggressively enforce the FACE Act against those who seek to violate the rights of their fellow Americans to safely provide or obtain such services.”

“The murder of Dr. George Tiller brought home to many of us the terrible potential for violence and the need to use every legal means at our disposal to prevent it,” said Barry Grissom, U.S. Attorney in the District of Kansas.

This civil action was filed by the Civil Rights Division Special Litigation Section Deputy Chief Julie Abbate and Trial Attorney Aaron Fleisher.

Indictment Unsealed Alleging Credit Card “Bust Out” Scheme and Trafficking in Contraband Tobacco

59-Count Indictment Includes Conspiracy, Trafficking, Bank Fraud, and Money Laundering

OKLAHOMA CITY—Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced today the unsealing of an indictment charging three men in a 59 count indictment. KHAWER SAEED GHILL (aka “Sajjan Gill”), 40, residing at times in Midwest City, Mustang, and Edmond, Oklahoma; AHSAN ULLAH (aka “Ibrahim Khan” and “Shawn Ullah”), 41, residing at times in Mustang, Yukon, and Edmond, Oklahoma; and ASMAT ULLAH (aka “Uncle”), 60, a resident of Edmond, Oklahoma, have been charged in an indictment containing 59 counts that includes conspiracy, trafficking, bank fraud, and money laundering involving two primary schemes—a credit card “bust out” scheme and a separate scheme involving trafficking in untaxed cigarettes.

A. Credit Card “Bust-Out” Scheme (Charging Khawer Ghill and Ahsan “Shawn” Ullah)

It is alleged that from March 2003, through April 2007, Ghill and Ahsan Ullah conspired to defraud financial institutions and commercial businesses by obtaining fraudulent loans with no intention to repay the loans. Further, it is alleged that these defendants obtained money and property from various credit card issuers, including banks, credit unions, credit card companies, and retail stores through credit card “bust-out” activity with no intention to repay the banks, credit unions, credit card companies, and retail stores for the cash advances. During the course of this scheme, it is alleged that over 50 separate credit cards were issued and that credit card issuers and banks incurred losses totaling nearly $500,000.

In this scheme, Ghill and Ahsan Ullah are charged with conspiracy to commit bank fraud, bank fraud, and money laundering. If convicted, these two men each face up to 30 years in prison and a $1,000,000 fine.

B. Trafficking in Untaxed Cigarettes (Charging Khawer Ghill, Ahsan “Shawn” Ullah and Asmat “Uncle” Ullah)

In Oklahoma, companies who purchase untaxed tobacco products from tobacco manufacturers are required to be licensed by the State and required to report all sales to the Oklahoma Tax Commission, pay the excise tax, purchase tax stamps and then place a tax stamp on each pack of cigarettes prior to distribution and sale. It is alleged that all three defendants operated a scheme to profit from the sale of contraband cigarettes and smokeless tobacco sold by them without the required excise taxes being assessed and paid to the State of Oklahoma.

According to the indictment, Prime Distributors, LLC (“Prime”), operated as a wholesale convenience distribution company that supplied products, including cigarettes and smokeless tobacco, to convenience stores in Oklahoma. Prime was authorized by the State of Oklahoma to be a stamping agent and was operated by Ahsan “Shawn” Ullah and Asmat “Uncle” Ullah until the fall of 2006 when, the indictment alleges, an audit revealed that Prime was not placing tax stamps on its cigarettes. This allowed the defendants to increase their profits on tobacco sales by avoiding paying state and federal tobacco tax. Prime relinquished its license and could no longer lawfully sell tobacco in the State of Oklahoma.

In the fall of 2006, Ghill and Ahsan Ullah incorporated a new company named Prime Time Distribution, LLC (“Prime Time”), located at the same address, operated by Ahsan Ullah and Asmat Ullah and was authorized by the State of Oklahoma to be a tax stamp licensee. It is alleged the defendants continued to buy and sell contraband tobacco products through Prime Time without the proper stamp on the cigarettes or tax on the smokeless tobacco.

Upon initiating a subsequent investigation, undercover ATF agents met with the defendants. The defendants agreed with the undercover ATF agents to operate a delivery hub in Oklahoma City for possession, sale, and distribution of contraband cigarettes and smokeless tobacco. It is alleged that from February 2007 through July 2009, the defendants sold at least 103,700 cartons (20,740,000 cigarettes) of contraband cigarettes and at least 265,310 of cans of contraband smokeless tobacco.

In this scheme, all three defendants are charged with conspiracy, trafficking in contraband cigarettes and smokeless tobacco, and money laundering. If convicted, all three defendants face up to 20 years in prison and a $500,000 fine.

In addition to the charges above, the indictment seeks forfeiture from each of the defendants in the amount of the proceeds of the crimes that was used for their own personal benefit, to purchase contraband tobacco, and the transfer of money to Pakistan.

Reference is made to the indictment for further information. The public is reminded that the indictment is merely an accusation and that the defendants are presumed innocent unless and until proven guilty.

This case is the result of a joint investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, the United States Secret Service, the Oklahoma City Police Department, the Oklahoma Highway Patrol, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigative Division, United States Postal Service, the Oklahoma Tax Commission, and the Oklahoma Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorneys Susan Dickerson Cox and Robert D. Gifford, II.

Former Harahan Police Officer Pleads Guilty to Obtaining Property by Fraud

NEW ORLEANS, LA—CAROL NEY, age 63, a resident of Kenner, Louisiana, pled guilty today in federal court before U.S. District Judge Martin L.C. Feldman to one count of obtaining property by fraud concerning programs receiving federal funds, announced U.S. Attorney Jim Letten.

According to the factual basis, NEY admitted that while employed as a police officer for the City of Harahan, she served as the city's victim assistance advocate and project director of a victim assistance program funded by a federal grant as a subgrantee of the Louisiana Commission on Law Enforcement and Administration of Criminal Justice.

NEY further admitted that she falsely represented she worked overtime hours on the Crime Victims Grant. According to the factual basis, NEY certified she had worked overtime during a week when she was vacationing out of state and also on a date when she had directed another employee to attend in her place a National Crime Victims' Rights Week event held on a weekend. Based on these fraudulent certifications, NEY received a total of $20,515 in overtime payments during the two annual grant periods.

NEY faces a possible maximum sentence of 10 years' imprisonment, a $250,000 fine, three years' supervised release, and restitution. Sentencing has been scheduled for August 10, 2011.

Speaking to today's guilty plea, Harahan Police Chief Mac Dickinson stated: "I sincerely appreciate the efforts of the FBI and Mr. Letten's office in pursuing this case. This was not something I wanted to find as a newly elected police chief, but it required immediate attention—and they did just that. Harahan is a small municipality yet the FBI and the U.S. Attorney did not diminish the importance of addressing the misappropriation of federal funds because of that. This kind of effort underscores their intention to root out illegal activities within governmental organizations of all sizes. With the closure of this case, we are setting a new course of transparency and trust for the Harahan Police Department."

U.S. Attorney Letten expressed his gratitude to Jacob M. "Mac" Dickinson, Chief of Police, City of Harahan, for his and his department's assistance and cooperation in this matter.

The case is being investigated by agents from the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eileen Gleason.

Comverse Technology INC. Agrees to Pay $1.2 Million Penalty to Resolve Violations of the Foreign Corrupt Practices Act

WASHINGTON - Comverse Technology Inc. (CTI), a New York City headquartered corporation, has agreed to pay a $1.2 million penalty for violations of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.  CTI, through its main operating subsidiary Comverse Inc. and Comverse Inc.’s subsidiaries, is a global provider of software and software systems for communication and billing services. 

According to the non-prosecution agreement, CTI has accepted responsibility for violating the books and records provisions of the FCPA arising from and related to CTI’s failure to record accurately certain improper payments that were made between 2003 and 2006 by employees and a third-party agent of Comverse Inc. subsidiaries to individuals connected to OTE, a Greek telecommunications provider, in order to obtain purchase orders.  The payments, totaling approximately $536,000, were inaccurately characterized as legitimate agent commissions in the books and records of Comverse Ltd., a wholly owned subsidiary of Comverse Inc. that is based in Tel Aviv, Israel. 

The agreement recognizes the company’s thorough self-investigation and the results of its investigation, voluntary disclosure of the underlying conduct, and full cooperation with the department.   CTI has also undertaken extensive remedial efforts and overhauled its overall compliance culture, including through the implementation of mandatory training programs focused on anti-corruption and the use of third-party agents and intermediaries, as well as more rigorous accounting controls for the approval of third-party payments.

As a result of these mitigating factors, the department has agreed not to prosecute CTI or its subsidiaries for failing to maintain accurate books and records, provided that CTI satisfies its obligations under the agreement for a period of two years.   Those obligations include ongoing cooperation, payment of the $1.2 million penalty, and the continued implementation of rigorous internal controls.  

In a related matter, CTI reached a settlement today with the U.S. Securities and Exchange Commission in which it agreed to pay approximately $1.6 million in disgorgement and pre-judgment interest.

This case is being handled by Trial Attorney Amanda Aikman of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ilene Jaroslaw of the U.S. Attorney’s Office for the Eastern District of New York.  The department acknowledges and expresses its appreciation for the significant assistance provided by the staff of the SEC during the course of this investigation.

Clay County Man Indicted on Child Pornography Charges

JACKSONVILLE, FL—United States Attorney Robert E. O'Neill announced today that Brian Russell Pollock (42, Clay County) was indicted by a federal grand jury on child pornography charges. Pollock is charged with advertising, receipt, attempted transportation, and possession of child pornography. On each of the three advertising counts, Pollock faces a minimum of 15 years and a maximum of 30 years in federal prison, and a $250,000 fine. On each of the receipt and attempted transportation counts, Pollock faces at least five years and up to 20 years in federal prison, and a $250,000 fine. On each of the possession counts, Pollock faces a maximum penalty of 10 years in federal prison and a $250,000 fine. Pollock was arrested today by FBI agents.

The indictment alleges that Pollock received and attempted to transport images of minors engaged in sexually explicit conduct and, on multiple occasions, did knowingly make, print, publish, and caused to be made notices and advertisements seeking and offering to receive the visual depiction of minors engaged in sexually explicit conduct. It further alleges that Pollock knew and had reason to know that such notices and advertisements would be transported via means involving interstate commerce, including the computer and Internet. According to the indictment, Pollock attempted to transport or ship such notices and visual images via the same means.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.

This case was investigated by the Federal Bureau of Investigation in Jacksonville and Rochester (New York), and the Child Predator Cybercrime Unit of the Florida Attorney General’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit projectsafechildhood.gov.

Miami-Dade County Men Sentenced in Export Violation Case

JACKSONVILLE, FL—U.S. District Judge Marcia Morales Howard today sentenced Osarobo George Omorose (43, Miami-Dade County) to 18 months’ federal imprisonment and Dennis Edward Joseph (50, Miami) to 180 days of house arrest and three years of probation, respectively, on the charge of aiding and abetting the attempted exportation of stolen motor vehicles The court further ordered Omorose to pay restitution totaling $75,548.18 to 14 different victims. On October 25, 2010, Omorose pled guilty to a federal indictment charging him with aiding and abetting the attempted export of stolen motor vehicles. On October 21, 2010, Joseph pled guilty to a federal indictment charging him with the same crime.

According to court documents, starting in February 2007, Omorose began receiving stolen vehicles from unknown individuals. In an effort to conceal the stolen nature of the vehicles, the vehicle identification numbers (VIN) were removed. The VINs were replaced with VINs from totaled or destroyed motor vehicles with the same make, model, and approximate year as the stolen vehicles. Following the alteration of the VINs, Omorose made arrangements for his co-defendant, Dennis Edward Joseph (Joseph), to export the vehicles from Jacksonville, Florida to Nigeria. Joseph owned Cargo Maritime Services, Inc. (CMS) and used his company to make arrangements for the stolen vehicles to be brought to the JAXPORT Blount Island Terminal. As part of the scheme, Omorose used various fraudulent documents, to include bills of sale and certificates of destruction that included the VIN fraudulently placed on the stolen vehicles. He also used various identities when making export arrangements. Joseph, through CMS, arranged to have ten stolen vehicles exported from Jacksonville to Nigeria on behalf of Omorose. Law enforcement intercepted all ten stolen vehicles before they reached Nigeria.

This case was investigated by U.S. Customs and Border Protection, Federal Bureau of Investigation, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Kevin C. Frein.

Jury Finds Salem Man Guilty of Failure to Appear

SIOUX FALLS, SD—United States Attorney Brendan V. Johnson announced that Thomas R. Kelley, age 54, of Salem, South Dakota, was convicted on Wednesday, April 6, of failure to appear following a federal jury trial in Sioux Falls before United States District Judge Lawrence L. Piersol. This charge carries a maximum penalty of 10 years of imprisonment and/or a $250,000 fine, to be served consecutively to the sentence for any underlying charges.

Kelley was previously convicted by a federal jury on May 6, 2010, of one count of false tax refund, one count of impeding the IRS, two counts of tax evasion, three counts of willfull failure to file tax returns, and 15 counts of fictitious obligations. Following those convictions, Kelley was released on bond, and his sentencing for those charges was set for August 23, 2010. Kelley failed to appear at his sentencing. A bench warrant was issued for Kelley, and he was placed on the Minnehaha County Most Wanted Fugitives list. He was ultimately found and apprehended in Wood Lake, Minnesota, on December 22, 2010.

This case was investigated by the Internal Revenue Service, United States Marshals Service, Minnehaha County Sheriff's Office, Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation. The case was prosecuted by Assistant United States Attorney Kevin Koliner. A presentence investigation was ordered, and a sentencing date was set for June 27, 2011. The defendant was remanded to the custody of the U.S. Marshals.

Reward Offered for Information on Attempted Bank Burglary in South Dakota

Richard T. Thornton, Acting Special Agent in Charge of the Minneapolis FBI Field Office, and Wells Fargo Bank are announcing that Wells Fargo Bank is offering a reward of up to $5,000 for original information leading to the arrest and conviction of the individual or individuals responsible for the attempted burglary of the Wells Fargo Bank branch located at BIA, Route 3, Crazy Horse Street, Lower Brule, South Dakota.

Bank employees reporting for work on the morning of March 29, 2011 reported that the bank branch had been broken into sometime between the time the branch closed the previous evening and the time that the employees arrived for work in the morning. No money was taken during the attempted burglary, but bank property was damaged. No bank surveillance camera pictures are available, and the individual or individuals responsible are still at large.

Anyone having information concerning the attempted burglary is asked to call the FBI Office in Pierre, South Dakota at 605/224-1331, or the Bureau of Indian Affairs at the Lower Brule Agency, telephone 605/473-5224.

Oglala Woman Pleads Guilty to Shaking Baby

RAPID CITY, SD—United States Attorney Brendan V. Johnson announced that Angela Yellow Horse, age 19, of Oglala, appeared before U.S. District Judge Jeffrey L. Viken on April 1, 2011, and pled guilty to an indictment that charged her with abuse of a minor. The maximum penalty upon conviction is 15 years' imprisonment and/or a $250,000 fine.

Between January and March 2010, Yellow Horse intentionally shook her infant son, causing brain swelling. The investigation was conducted by the FBI, the BIA, and OST-DPS. The case is being prosecuted by Assistant U.S. Attorney Britt M. Haxton.

A presentence investigation was ordered, and a sentencing date was set for June 20, 2011. The defendant was remanded to the custody of the U.S. Marshals pending sentencing.

Attorney and Trader Arrested, Charged with Trading on Inside Information Stolen from Three Preeminent Law Firms

More Than $109 Million in Illegally Traded Shares Netted More Than $32 Million in Last Five Years of Decades-Long Scheme

NEWARK, NJ—A professional stock trader and an attorney who formerly worked as a corporate associate at three prominent, international law firms were arrested today on charges arising from their alleged participation in a long-term insider trading scheme that netted at least $32 million in illicit profits, New Jersey U.S. Attorney Paul J. Fishman announced.

Garrett D. Bauer, 43, of New York, and Matthew H. Kluger, 50, of Oakton, Va., are both charged in a criminal complaint with one count of conspiracy to commit securities fraud, one count of conspiracy to commit money laundering, and two counts each of obstruction of justice. Bauer and Kluger are also each charged with nine counts and 11 counts of securities fraud, respectively. Both defendants were arrested this morning at their residences by FBI and IRS agents. Bauer is expected to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. Kluger is expected to appear this afternoon before U.S. Magistrate Judge Theresa Carroll Buchanan in Alexandria, Va., federal court.

The complaint also seeks the forfeiture of over $32 million, Bauer’s real property in New York and Boca Raton, and the contents of a number of bank and trading accounts allegedly used to facilitate the scheme.

U.S. Attorney Fishman said, “According to the complaint, the defendants exploited Kluger’s access to sensitive, confidential information to make trading profits a sure thing. This kind of cheating corrodes confidence in our markets and swindles those who play by the rules. A hub of corporate headquarters, technological expertise and infrastructure, New Jersey houses the wiring of Wall Street and some of the biggest names in industry. Despite Bauer and Kluger’s attempts to thwart law enforcement, our coordinated work has ensured they will not get away with committing fraud in our backyard.”

FBI Special Agent in Charge Michael B. Ward stated: “The impact of crimes commonly referred to as ‘insider trading’ is unmistakable. Millions of investors have entrusted their life savings to the integrity of the financial markets and the belief of a level playing field. Insider trading corrupts the process and tilts the playing field in favor of those privileged few with access to information not available to the public, and at the expense of unsuspecting and unknowing investors. The subjects in this case allegedly attempted to cover their tracks with tradecraft of which Gordon Gecko would have been proud, but in the end their downfall was similar; criminal activity has been exposed, professional reputations tarnished, and in the end their own financial assets are the ones placed at risk.”

According to the complaint unsealed today:

Bauer, Kluger, and a co-conspirator—referred to in court documents as CC-1—engaged in an insider trading scheme that began in 1994. During the last five years, the conspirators invested more than $109 million and made more than approximately $32 million in illicit profits.

Over time, Kluger worked at three of the nation’s premier mergers and acquisitions law firms. From 1994 to 1997, he worked first as a summer associate and later as a corporate associate at Cravath Swaine & Moore (“Cravath”) in New York. From 1998 to 2001, he worked at Skadden, Arps, Slate, Meagher & Flom (“Skadden”) as an associate in their corporate department. From December 5, 2005 to March 11, 2011, Kluger worked at Wilson Sonsini Goodrich & Rosati (“Wilson Sonsini”), as a senior associate in the Mergers & Acquisitions department of the firm’s Washington office.

While at the law firms, Kluger regularly stole and disclosed to CC-1 material, nonpublic information regarding anticipated corporate mergers and acquisitions on which his firms were working. While at Cravath and Skadden, Kluger disclosed information relating to deals on which he personally worked. In an effort to avoid law enforcement detection later in the scheme, Kluger took information which he found primarily by viewing documents on Wilson Sonsini’s internal computer system, rather than from deals on which he personally worked.

Once Kluger provided the inside information to CC-1, CC-1 passed it to Bauer, a professional trader. Bauer then purchased shares for himself, Kluger, and CC-1 in Bauer’s trading accounts. He quickly sold the shares once the relevant deal was publicly announced and the stock price rose. Bauer gave CC-1 and Kluger their shares of the illicit profits in cash—often tens or hundreds of thousands of dollars—that Bauer withdrew in multiple transactions from ATMs.

Bauer spent over $7 million of his share of the proceeds to purchase two properties—approximately $6.65 million for an Upper East Side condominium in New York and approximately $875,000 for a home in Boca Raton, Fla.

The complaint specifically identifies 11 transactions ahead of which Bauer, Kluger and CC-1 traded between April 2006 and February 2011, as outlined in an appended chart.

After Kluger joined Wilson Sonsini, the three conspirators took greater efforts to prevent detection of their insider trading scheme. They generally only spoke to each other about proposed transactions on payphones or prepaid cellular phones that they referred to as “throwaway phones” and purchased with cash. They often got a new phone for each of their insider trading deals.

As they became increasingly concerned that their criminal activity would be detected, Bauer and Kluger destroyed various pieces of evidence relating to their scheme and took other action designed to obstruct any investigation. Bauer destroyed a prepaid phone, discarding the pieces in two separate trash cans at a New York McDonald’s. Bauer also directed CC-1 to burn approximately $175,000 in cash that Bauer had paid him out of concern his fingerprints would be found on the money. Kluger destroyed his home computer, iPhone and a prepaid phone. Kluger also directed CC-1 to destroy his prepaid phone and discard the contents in a garbage can down the street from his house.

The complaint details a number of recorded conversations among the conspirators. Over the course of his conversations with CC-1, Kluger made several statements regarding the likelihood that he would be charged for his illegal activities. During a March 17, 2011 call, Kluger stated, “I think there’s a pretty good chance that we get past it. I don’t think that they’re gonna conclude that they have enough to go to court with.” He also discussed destroying evidence, saying, “By the way, I got rid of my computer. I got rid of my iPhone where I had looked up some stock quotes. Those are gone. I mean history. Gone.” Kluger also told his co-conspirator that “...if they start looking at me and look at my bank records and all that other stuff it could be, it could get ugly.”

In a call recorded the next day, Bauer also referenced his concerns that he would get caught, saying, “I can’t sleep. I can’t sleep. I am waiting for the FBI to ride into my apartment. And I am on edge all night thinking that they’re coming in.” During the same call, he talked about how he would explain his large cash withdrawals, saying, “I used that as spending money. I don’t know, I will say I bought prostitutes if it comes down to it.” On March 21, 2011, he stated, “...the fact is we did something wrong. So it is not like we are being convicted of doing nothing. We did something wrong here.” In a March 28, 2011, call, Bauer said, “Yes, well you just feel more comfortable that we talk all on cell phones this entire time. You know. And that there is no way that they could ever be recorded.”

The maximum potential penalties the defendants face per count are as follows:

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, for the investigation leading to today’s arrests and Complaint. He also thanked special agents of the IRS, under the direction of Special Agent in Charge Victor W. Lessoff, and the U.S. Securities and Exchange Commission’s Market Abuse Unit and Philadelphia Regional Office, under the direction of Daniel M. Hawke.

The government is represented by Assistant U.S. Attorneys Matthew E. Beck of the U.S. Attorney’s Office Economic Crimes Unit and Judith H. Germano, Chief of the Economic Crimes Unit, in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Count(s) Defendant(s) Charge Maximum Potential Penalty

1 Bauer, Kluger  Conspiracy to commit securities fraud Five years in prison; $250,000 fine or twice the aggregate loss to victims or gain to the defendants 

2-12 Bauer, Kluger  Securities fraud  Per count: 20 years in prison; $500,000 fine 

13 Bauer, Kluger  Conspiracy to commit money laundering  20 years in prison; $500,000 fine or twice the value of the property involved in the transaction 

14-15 Bauer Obstruction of justice  Per count: 20 years in prison; $500,000 fine 

16-17 Kluger  Obstruction of justice  Per count: 20 years in prison; $500,000 fine 

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, for the investigation leading to today’s arrests and complaint. He also thanked special agents of the IRS, under the direction of Special Agent in Charge Victor W. Lessoff, and the U.S. Securities and Exchange Commission’s Market Abuse Unit and Philadelphia Regional Office, under the direction of Daniel M. Hawke.

The government is represented by Assistant U.S. Attorneys Matthew E. Beck of the U.S. Attorney’s Office Economic Crimes Unit and Judith H. Germano, Chief of the Economic Crimes Unit, in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Defense counsel:

Garrett Bauer: William J. Davis, New York

Matthew Kluger: TBD

Alleged Insider Trades

Approx. Dates of Purchase  Announcement Date  Security Illicit Profit 

April 12-28, 2006 May 2, 2006 Advanced Digital Information Corp.  $1,724,208

May 2-10, 2007  May 17, 2007 Acxiom Corp.  $1,680,986

May 22-31, 2007  June 4, 2007 Palm, Inc.  $368,192 

Sept. 26-27, 2007  Sept. 28, 2007  3Com Corp.  $2,433,946

Oct. 18-25, 2007  Oct. 25, 2007  Visual Sciences  $758,466 

Feb. 25-March 27, 2008  March 31, 2008 Ansoft LLC  $2,954,598

April 17-20, 2009  April 20, 2009 Sun Microsystems, Inc.  $11,356,145

Aug. 24-Sept. 9, 2009  Sept. 15, 2009  Omniture, Inc.  $8,299,600

Oct. 8-Nov. 5, 2009  Nov. 11, 2009  3Com Corp.  $199,200 

July 28-Aug. 17, 2010  Aug. 19, 2010 McAfee, Inc.  $494,100 

Jan. 24-Feb. 17, 2011  Feb. 20, 2011 Zoran Corp.  $1,957,257

The FBI and San Mateo County Sheriff’s Office Seek the Public’s Help in Identifying a Portola Valley Bank Robbery Suspect

The FBI and San Mateo County Sheriff’s Office are seeking the public’s help in identifying the person responsible for a bank robbery in Portola Valley on Monday morning.

The suspect entered a Chase Bank at the 3100 block of Alpine Road at about 9:15 a.m. on April 4, 2011. He approached a bank teller, said he was armed, and demanded money. The suspect fled from the scene with an undisclosed amount of cash.

Witnesses described the suspect as a white male between the ages of 40 to 45; about 5 feet 7 inches to 5 feet 10 inches tall; weighing about 140 to 150 pounds. He has brown hair and a mustache and was wearing a yellow bicycle riding jacket and a white baseball cap.

This investigation is being conducted jointly by the FBI and the San Mateo County Sheriff’s Office. Anybody with information as to the identity or whereabouts of this suspect is urged to contact either agency or 911.

The FBI can be reached 24 hours a day at 415-553-7400. All calls are confidential.

The San Mateo County Sheriff’s Office can be reached at 650-363-4051, or call the anonymous tip line at 1-800-547-2700.

Bank surveillance photos of the suspect are available and are below.

Members of the media should call Public Affairs Specialist Julianne Sohn, FBI San Francisco at 415-553-7450.

 County District Attorney’s Office, cross-designated for this case, are in charge of the prosecution.

The charges contained in the indictment are merely accusations and the defendants are innocent unless and until proven guilty.

Madera Illegal Alien in Possession of Firearm and Ammo Convicted

55th Federal Conviction Stemming from Multi-agency Operation Trident

FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced that Julian Gonzalez–Jimenez, 24, of San Luis, El Petén, Guatemala, entered a guilty plea today to being an illegal alien in possession of a Ravens .25–caliber firearm and 77 rounds of .25–caliber ammunition when he was apprehended in connection with Operation Trident, a multi–agency marijuana enforcement effort in Madera, Fresno, and Tulare Counties in 2009 and 2010. To date, Operation Trident has resulted in the eradication of approximately 663,898 marijuana plants, primarily from public lands in the Sierra foothills and mountains in the Eastern District of California. Gonzalez–Jimenez’s guilty plea represents the 55th federal conviction as a result of Operation Trident.

This case is the product of an investigation conducted by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI), the U.S. Department of the Treasury, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Drug Enforcement Administration, Madera Narcotic Enforcement Team (MADNET), and Madera County Sheriff’s Department under the umbrella of Operation Trident. Other agencies that participated in Operation Trident include the Fresno County Sheriff’s Office and the Tulare County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Karen Escobar.

According to court documents, Gonzalez–Jimenez was apprehended while he was a passenger in a car headed for Oakhurst. Both he and the driver gave permission for Madera County Sheriff deputies to search the vehicle.

Gonzalez–Jimenez is scheduled to be sentenced on June 6, 2011 by Senior U.S. District Judge Oliver W. Wanger. He faces a maximum prison term of 10 years and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables. Gonzalez–Jimenez remains detained in the custody of the U.S. Marshal Service, having been ordered detained last June as a flight risk. Upon completion of his prison term, he faces deportation.

Alleged Child Rapist Arrest, Iran Jewelry Seizure and Cooked Crocodile Cap Busy Weekend for Dulles CBP

Sterling, VA. -- It was a typically busy weekend for Customs and Border Protection employees at Washington-Dulles International Airport as officers arrested an alleged child rapist and seized Iranian jewelry, while agriculture specialists seized a wholly cooked crocodile and nearly seven pounds of antelope meat this weekend.

Officers arrested Augusto G. Montalvo, 54, of Springfield, Va., on a Fairfax County arrest warrant after he arrived Saturday from Bolivia. Montalvo faces one count of aggravated sexual battery and one count of animate object sexual penetration. Charges stems from a report filed with the Fairfax County Police Department on January 25. The victim was 12 years old at the time. CBP officers confirmed Montalvo’s identity and arrest warrant, and then turned him over to Metropolitan Washington Airports Authority Police.

Customs and Border Protection agriculture specialists discovered cooked cow’s feet (right) and tetra pleura tetraptera, an African plant use as an herbal anti-inflammatory, concealed in the luggage of a passenger who arrived from Ghana to Washington Dulles International Airport April 4, 2011. 

“Sexually assaulting anyone is a vicious crime, but allegations of assaulting a 12-year-old child are particularly heinous. CBP officers take great pleasure in returning dangerous fugitives like this to justice,” said Christopher Hess, CBP port director for the Port of Washington.

CBP placed a detainer on Montalvo to be returned to CBP upon adjudication of charges and potential sentence.

CBP officers seized a passenger-estimated $3,000 in Iranian jewelry Sunday. The jewelry, which included one gold and one silver ring, two gold necklaces, a gold bracelet and a pair of earrings, violated the Treasure Department’s Office of Foreign Assets Control (OFAC) sanctions on Iranian products. CBP officers also required the passenger to complete a FINCEN form for possessing currency exceeding $10,000 in U.S. dollars or foreign equivalent. The passenger admitted to carrying $9,300, but officers discovered $11,106 in U.S. dollars and 141,177 Iranian Rials, equal to about $14 in U.S. dollars.

CBP agriculture specialists fined a passenger from Ethiopia $300 Friday for repeatedly failing to declare food products in her suitcase. Upon opening her baggage, agriculture specialists discovered nearly seven pounds of cooked antelope meat and a cooked crocodile. The crocodile is protected by the Convention on International Trade of Endangered Species of Wild Fauna and Flora (CITES), an endangered species conservation agreement.

Meat and plant products from continents that have experienced animal or plant diseases are generally prohibited from importing to the U.S. without appropriate U.S. Department of Agriculture permits.

Agriculture specialists fined a passenger from Panama $300 Sunday for possessing mangoes and yucca after repeatedly denying possessing food products, and fined a passenger from Ethiopia $175 Saturday for failing to declare about four pound of dried beef.

CBP fined two passengers who arrived from Ghana Monday $300 and $175 for failing to declared possessing prohibited agriculture products. CBP agriculture specialists discovered four pounds of cooked cow’s feet and two pounds of tetra pleura tetraptera, an African plant use as an herbal anti-inflammatory, in the first passenger’s luggage, and two pounds of cooked antelope in the second passenger’s luggage.

“These enforcement activities are a few examples of what our highly trained and dedicated employees do every day to intercept potential threats at our nation’s borders, and to keep us, our agriculture and our nation safe,” Hess said.

CBP routinely conducts random inspection operations on arriving and departing passengers searching for narcotics, currency, weapons and other prohibited or illicit products.

U.S. citizens and foreign visitors can learn more about admissible and prohibited products, and other travel regulations at CBP’s travel site.

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.

Dandridge Resident Sentenced to Over Fifteen Years in Prison for Possession of Firearms

GREENEVILLE, Tenn. – Jason Scott Morgan, 32, of Dandridge, Tenn., was sentenced in U.S. District Court for the Eastern District of Tennessee at Greeneville, by the Honorable J. Ronnie Greer, United States District Judge, to serve 15 ½ years in federal prison. The sentence was the result of a guilty plea by Morgan on November 3, 2010, to being a convicted felon in possession of firearms. Because Morgan had seven prior burglary convictions, he qualified as an Armed Career Criminal under federal law.

The indictment and subsequent conviction of Morgan was the result of an investigation conducted by the Morristown Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Robert M. Reeves represented the United States.

This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.

New Jersey Wastewater Treatment and Chemical Supply Company and Owner Sentenced for Their Role in Fraud Conspiracy

Owner Sentenced to Serve 18 Months in Prison

WASHINGTON — A Laurel Springs, N.J., wastewater treatment and chemical supply company and its owner were sentenced today for participating in a fraud conspiracy in connection with sub-contracts for wastewater treatment supplies and services at two Superfund sites in New Jersey, the Department of Justice announced today.   The Environmental Protection Agency (EPA)-designated Superfund sites are the Federal Creosote Superfund site in Manville, N.J., and the Diamond Alkali Superfund site in Newark, N.J.

John Drimak Jr. was sentenced in U.S. District Court in Newark by Judge Susan D. Wigenton to serve 18 months in prison, to pay a $30,000 criminal fine and to pay $283,241 in restitution to the victim, the EPA.   J.M.J. Environmental Inc. was also sentenced to pay $283,241 in restitution.   The company and its owner pleaded guilty on July 23, 2008, to rigging bids and allocating certain sub-contracts at Federal Creosote from approximately the spring of 2002 to approximately May 2007.   Drimak also pleaded guilty to one count of conspiracy to defraud the EPA at Federal Creosote and to defraud Tierra Solutions Inc. at Diamond Alkali.   Tierra Solutions is a general contractor based in The Woodlands, Texas.   As part of the conspiracy, Drimak participated in a false invoicing and kickback scheme from January 2002 until May 2007.   He also pleaded guilty to filing false income tax returns for 2002 through 2005.

According to court documents, Drimak paid approximately $411,000 in kickbacks to co-conspirators, at both the Federal Creosote and Diamond Alkali sites, in exchange for their assistance in allocating certain sub-contracts to J.M.J. Environmental.   The department said that the kickbacks were in the form of checks, cash, paid vacations, home renovations, boat trailers and payment of personal business expenses.

The cleanup at Federal Creosote is partly funded by the EPA.   An interagency agreement between the EPA and the Army Corps of Engineers designated that the EPA hire the prime contractors at Federal Creosote.   According to a settlement with the EPA and the New Jersey Department of Environmental Protection, Tierra Solutions was required to fund remedial action and maintenance of Diamond Alkali.   Tierra Solutions hired the prime contractor for the remedial action and maintenance of Diamond Alkali.             

Including Drimak and J.M.J Environmental, 10 individuals and three companies have been charged in this investigation.   More than $3 million in criminal fines and restitution have been imposed and four individuals have been sentenced to jail.

Today’s sentence is the result of an ongoing investigation being conducted by the Antitrust Division’s New York Field Office, the EPA’s Office of Inspector General and the Internal Revenue Service-Criminal Investigation.   Anyone with information concerning bid rigging relating to contracts awarded at Federal Creosote or Diamond Alkali should contact the Antitrust Division’s New York Field Office at 212-264-9308 or visit justice.gov/atr/contact/newcase.htm.

Canadian Man Convicted of Traveling to Have Sex with an 11-Year-Old Girl and Possession of Child Pornography

Defendant Caught in Undercover Operation

ATLANTA—A jury in federal district court today returned a guilty verdict against BRIAN SCHUMAKER, 54, of Mississagua, Ontario, Canada, on charges of traveling across state lines to engage in sexual activity with a child under the age of 12, attempting to entice a child to engage in sexual activity, and possession of child pornography.

United States Attorney Sally Quillian Yates said, “This defendant, who has five daughters himself, came to our community with the intent of sexually exploiting an 11-year-old girl. Alert law enforcement involved in an undercover operation knew he was coming and arrested him. Now, after a four-day trial, a federal jury has convicted him on all charges. We will continue to investigate and prosecute those who choose to commit these types of crimes in this district, and commend the FBI and the Alpharetta Police Department for their fine work on the Safe Child Task Force.”

According to United States Attorney Yates and the evidence presented at trial: From July 3, 2007 until August 3, 2007, through a series of Internet chats, SCHUMAKER used the Internet to try to arrange a meeting with a child under the age of 12 for the purpose of engaging in sexual activity. During the week of July 31, 2007, he traveled by car from Ontario, Canada to Atlanta to meet the child and attend a business conference at the Georgia World Congress Center. After SCHUMAKER’s arrest, law enforcement recovered child pornography from his laptop computer and phone device depicting the sexual abuse, rape, and molestation of very young children.

There was no actual child in this case. Instead, the online chats were part of a joint law enforcement undercover operation. SCHUMAKER communicated on the Internet with an undercover task force officer from the Alpharetta (Georgia) Police Department who was posing as an 11-year-old girl and her “mother.” On August 3, 2007, SCHUMAKER was arrested by FBI agents and Alpharetta officers at the location where he had arranged to meet the “mother.” Evidence introduced at trial showed that defendant boasted during chat sessions about having sex with girls as young as 12 years old in Canada. SCHUMAKER, a father of five girls, also expressed his desire to molest his own girls if he could hide the abuse from his wife.

SCHUMAKER could receive a maximum sentence of life in prison and a fine of up to $250,000.00. Sentencing has not been scheduled. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children via the Internet. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was investigated by task force agents with the Federal Bureau of Investigation and officers with the Alpharetta Police Department.

Assistant United States Attorney Jeffrey A. Brown is prosecuting the case.

For further information please contact Sally Q. Yates, United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney’s Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is justice.gov/usao/gan.

Activity in the United States Attorney’s Office: Sentences

Jeffrey Tanner, 40, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge William F. Downes on March 17, 2011, for a felon in possession of a firearm, conspiracy to possess with intent to distribute and to distribute between 500 grams and 1.5 kilograms methamphetamine. Tanner received 135 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.

John Miller, 57, of Sheridan, Wyoming, was sentenced by Chief Federal District Court Judge William F. Downes on March 24, 2011,for conspiracy to possess with intent to distribute and to distribute between 500 grams and 1.5 kilograms methamphetamine. Miller received 120 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment and a $300.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.

Juan Franco, 27, of Aurora, Colorado, was sentenced by Chief Federal District Court Judge William F. Downes on March 24, 2011, for conspiracy to possess with intent to distribute and to distribute between 500 grams and 1.5 kilograms methamphetamine. Franco received 63 months of imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation. Donald Allen Cole, 46, of Bremerton, Washington, was sentenced by Federal District Court Judge Clarence A. Brimmer on March 25, 2011, for a felon in possession of ammunition. Cole received one year and one day of imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the National Park Service.

Brittany Lee Beard, 22, of Littleton, Colorado, was sentenced by Chief Federal District Court Judge William F. Downes on March 25, 2011, for conspiracy to possess with intent to distribute and to distribute between 500 grams and 1.5 kilograms methamphetamine. Beard received 120 months of imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation. Michael Coates, 29, of Powell, Wyoming, was sentenced by Chief Federal District Court Judge William F. Downes on March 25, 2011, for possession of a firearm in furtherance of a drug trafficking crime, conspiracy to possess with intent to distribute and to distribute 500 grams of methamphetamine. Coates received 240 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $200.00 assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.

Tryel Blommel, 28, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge William F. Downes on March 28, 2011, for receipt of child pornography. Blommel received 120 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.

Mandi Hopkins, 19, of Laramie, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 28, 2011, for conspiracy to possess with intent to distribute and to distribute at least 500 grams of cocaine. Hopkins received 60 months imprisonment, to be followed by four years of supervised release and was ordered to pay a $250.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.

Rick Cranmore, 57, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge William F. Downes on March 28, 2011, for conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine. Cranmore received 51 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.

Shawn Gene Gilbertson, 29, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge William F. Downes on March 28, 2011, for carrying a firearm during and in relation to a drug trafficking crime, conspiracy to possess with intent to distribute and to distribute 50 grams or more of methamphetamine. Gilbertson received 180 months imprisonment, to be followed by five years of supervised release. In addition, Gilbertson was ordered to pay a $200.00 special assessment and to forfeit $500.00. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.

Terri Lynn Newburn, 48, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge William F. Downes on March 30, 2011, for conspiracy to launder money, conspiracy to possess with intent to distribute and to distribute 50 grams or more of methamphetamine. Newbury received 78 months imprisonment, to be followed by five years of supervised release. In addition, Newburn was ordered to pay a $200.00 special assessment and to forfeit $1,500.00. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.

ATF Los Angeles Hosts Citizens’ Acadamy

LOS ANGELES — John A. Torres, Special Agent in Charge of the Los Angeles Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the commencement of the latest class of the “ATF Citizens’ Academy” presented by the Los Angeles Field Division. The academy, which began March 30 and runs through May 18, was designed to create a greater understanding of ATF’s role in the community through education and open discussion.

“This Citizens’ Academy will be the eighth class we have presented to local business, civic, religious and community leaders that offers an inside look at the world of federal law enforcement, specifically ATF’s unique expertise in combating violent crime,” Torres said. “The overall response to the Academy has been very favorable. ATF continues to build strong relationships and foster a sense of trust between ATF and the community; which helps the citizens make their community a safer place.”

The Citizens’ Academy is hosted two times each year and is open to approximately 36 students per class. Students should be civic, religious or community leaders, be at least 21 years old, and have no felony convictions. The class, which lasts seven weeks, meets one day a week for approximately three hours and covers various law enforcement related topics, to include:

•ATF history, mission and jurisdiction

•Firearms/Explosives regulations

•Federal Firearms/Explosives Licensee Inspections

•Violent Crime Impact Teams

•Firearms safety and firearms familiarization/range day

•ATF Laboratories

•Certified Explosive Specialist program

•Explosives detection canine program

•Special Response Team (SWAT) and tactical simulation exercise

•Certified Fire Investigator (CFI) program

•National Response Team (Arson)

The next Citizens’ Academy is scheduled for fall of 2011. For additional information, please contact the Los Angeles Field Division at (818) 265–2500. For more information about ATF and its programs visit http://www.atf.gov/.