May 25, 2010 - McALLEN, TX— Jesus Jorge Flores Jr., 38, the owner and operator of St. Mary’s Ambulance Inc., has been sentenced to prison for defrauding Medicare and Medicaid of more than $1 million by submitting false and fraudulent claims, United States Attorney José Angel Moreno and Texas Attorney General Greg Abbott announced today.
United States District Judge Randy Crane sentenced Flores, of Weslaco, Texas, to 24 months in federal prison without parole during a sentencing hearing today. In addition to the prison term, Flores has been ordered to pay restitution to the Center for Medicare and Medicaid Services in the amount of $658,2581.13 and to serve a three-year-term of supervised release following the completion of his prison term. Flores pleaded guilty on July 7, 2008, to conspiracy to commit health care fraud -admitting that between February 2004 until September 2005 to having defrauding the two federal health care benefit programs by means of false and fraudulent claims in connection with the medically unnecessary delivery of ambulance transportation services to Medicare and Medicaid beneficiaries to and from area hemodialysis centers.
Flores, who has been free on bond since his October 2007 arrest has been permitted to remain on bond until June 7, 2010, when he is ordered to surrender to the U.S. Marshals Service in McAllen, Texas, to be transported a Bureau of Prisons facility where he will serve his sentence.
The investigation leading to the charges in this case was conducted by FBI and the Texas Attorney General’s Office Medicaid Fraud Control Unit. Assistant United States Attorney Carolyn Ferko prosecuted the case.
Tuesday, May 25, 2010
Bulgarian National Extradited from Poland to the United States to Face Charges Related to Alleged Role in International Money Laundering Scheme
Alleged Scheme Resulted in Nearly $1 Million in Losses to U.S. Victims
May 25, 2010 - A Bulgarian man appeared in federal court in the District of Columbia today to face charges related to his alleged role in managing a money laundering network for a transnational criminal group based in Eastern Europe, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division. According to court documents, in less than one year, the criminal conspiracy allegedly netted nearly $1 million from U.S. victims.
Georgi Vasilev Pletnyov, 49, of Svishtov, Bulgaria, was extradited from Poland to the United States on Friday, May 21, 2010. U.S. Magistrate Judge Alan Kay today ordered Pletnyov detained pending a hearing scheduled for May 28, 2010. Pletnyov is charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. If convicted, he faces a maximum sentence of 20 years in prison.
According to the indictment, Pletnyov allegedly participated in a scheme that operated from July 2005 through May 2006, which involved the posting of advertisements on eBay and other websites, fraudulently offering expensive vehicles and boats for sale that the conspirators did not possess. The indictment alleges that when the U.S. victims expressed interest in the merchandise, they were contacted directly by an e-mail from a purported seller. According to the indictment, the victims allegedly were then instructed to wire transfer payments through “eBay Secure Traders”—an entity which has no actual affiliation to eBay but was used as a ruse to persuade the victims that they were sending money into a secure escrow account pending delivery and inspection of their purchases. Instead, the victims’ funds allegedly were wired directly into bank accounts in Hungary, Slovakia, the Czech Republic and Poland that were controlled by co-conspirators.
Pletnyov was originally charged on Jan. 9, 2008, along with five additional defendants: Roman Teodor, Ivaylo Vasilev Pletnyov, Nikolay Georgiev Minchev, Georgi Boychev Georgiev and Antoaneta Angelova Getova. On Dec. 2, 2009, Ivaylo Vasilev Pletnyov and Nikolay Georgiev Minchev were sentenced to four years and 30 months in prison, respectively, for their roles in the money laundering conspiracy. Georgiev pleaded guilty to one count of conspiracy to commit money laundering on May 13, 2010, and is scheduled to be sentenced on July 23, 2010. The United States continues to work with foreign counterparts regarding the remaining defendants.
An indictment is merely an accusation and the defendants are presumed innocent until and unless proven guilty at trial beyond a reasonable doubt.
This investigation was conducted by the FBI – Hungarian National Bureau of Investigation Organized Crime Task Force located in Budapest, Hungary (Budapest Task Force). The Budapest Task Force was established by the FBI in April 2000 to address the increasing threat of Eurasian organized crime groups to the United States.
The case is being prosecuted by Trial Attorney Lisa Page of the Criminal Division’s Organized Crime and Racketeering Section. Senior Trial Attorneys Deborah M. Gaynus and Betsy E. Burke of the Criminal Division’s Office of International Affairs provided significant assistance on this case.
May 25, 2010 - A Bulgarian man appeared in federal court in the District of Columbia today to face charges related to his alleged role in managing a money laundering network for a transnational criminal group based in Eastern Europe, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division. According to court documents, in less than one year, the criminal conspiracy allegedly netted nearly $1 million from U.S. victims.
Georgi Vasilev Pletnyov, 49, of Svishtov, Bulgaria, was extradited from Poland to the United States on Friday, May 21, 2010. U.S. Magistrate Judge Alan Kay today ordered Pletnyov detained pending a hearing scheduled for May 28, 2010. Pletnyov is charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. If convicted, he faces a maximum sentence of 20 years in prison.
According to the indictment, Pletnyov allegedly participated in a scheme that operated from July 2005 through May 2006, which involved the posting of advertisements on eBay and other websites, fraudulently offering expensive vehicles and boats for sale that the conspirators did not possess. The indictment alleges that when the U.S. victims expressed interest in the merchandise, they were contacted directly by an e-mail from a purported seller. According to the indictment, the victims allegedly were then instructed to wire transfer payments through “eBay Secure Traders”—an entity which has no actual affiliation to eBay but was used as a ruse to persuade the victims that they were sending money into a secure escrow account pending delivery and inspection of their purchases. Instead, the victims’ funds allegedly were wired directly into bank accounts in Hungary, Slovakia, the Czech Republic and Poland that were controlled by co-conspirators.
Pletnyov was originally charged on Jan. 9, 2008, along with five additional defendants: Roman Teodor, Ivaylo Vasilev Pletnyov, Nikolay Georgiev Minchev, Georgi Boychev Georgiev and Antoaneta Angelova Getova. On Dec. 2, 2009, Ivaylo Vasilev Pletnyov and Nikolay Georgiev Minchev were sentenced to four years and 30 months in prison, respectively, for their roles in the money laundering conspiracy. Georgiev pleaded guilty to one count of conspiracy to commit money laundering on May 13, 2010, and is scheduled to be sentenced on July 23, 2010. The United States continues to work with foreign counterparts regarding the remaining defendants.
An indictment is merely an accusation and the defendants are presumed innocent until and unless proven guilty at trial beyond a reasonable doubt.
This investigation was conducted by the FBI – Hungarian National Bureau of Investigation Organized Crime Task Force located in Budapest, Hungary (Budapest Task Force). The Budapest Task Force was established by the FBI in April 2000 to address the increasing threat of Eurasian organized crime groups to the United States.
The case is being prosecuted by Trial Attorney Lisa Page of the Criminal Division’s Organized Crime and Racketeering Section. Senior Trial Attorneys Deborah M. Gaynus and Betsy E. Burke of the Criminal Division’s Office of International Affairs provided significant assistance on this case.
Seeking Information on Public Service Credit Union Robbery
The suspect is described as a black male, 35-45 years of age, 5'10"-6'0", approximately 180 lbs, medium build, wearing a dark hooded jacket, dark sunglasses, and a dark hat.
He is believed to have worn a jheri curl-type wig in prior bank robberies. The FBI Rocky Mountain Safe Streets Task Force has dubbed this bank robber the "Super Freak Bandit."
The suspect enters the banks, points, and loudly orders the tellers around. He approaches multiple tellers in each bank and makes a verbal demand for money. He has threatened a weapon but no weapon has been shown.
He is believed to be responsible for a total of five bank robberies in the Denver metro area:
03/18/10 at 11:15 a.m., Bank of Choice, 3095 S. Parker Rd. Aurora.
03/24/10 at 9:10 a.m., UMB Bank, 707 Colorado Blvd. Denver.
04/13/10 at 9:10 a.m., Bank of Denver, 530 S. Holly St. Denver.
05/13/10 at 9:06 a.m., TCF Bank, 1710 S. Havana St. Aurora.
05/24/10 at 9:30 a.m., Public Service Credit Union, 815 Colorado Blvd. Denver
Bank robbery is punishable by a 20-year prison sentence for each offense and increases if a dangerous weapon is used in the commission of the crime.
The FBI continues to provide financial institutions with the best practices for security to make them less vulnerable to robberies.
If anyone has any information on the bank robbery above, or any bank robbery, please call the FBI Rocky Mountain Safe Streets Task Force at 303-629-7171; or, you can remain anonymous and earn up to two thousand dollars ($2,000) by calling CRIMESTOPPERS at 720-913-STOP (7867).
Reward Offered in Search for “Double Dip Bandit”
In the most recent theft, which occurred on May 11, a lone robber entered the Citibank branch, located at 2801 West Devon Avenue in Chicago, approached a teller, and placed a plastic shopping bag on the counter. He then announced a robbery and ordered the teller to fill the bag with money. The robber was armed with a gun and threatened the bank employee with harm if his instructions were not followed. After receiving an undisclosed amount of cash, the robber fled the bank on foot, disappearing into the passing crowd.
The “Double Dip Bandit” is described as a white/male, 35 - 40 years of age, 6’ 0” tall, with a medium build. He has worn a variety of clothing during each robbery but always wears a baseball-style cap and sunglasses in an apparent attempt to conceal his identity. He has been given the moniker of the “Double Dip Bandit” as he has robbed two banks multiple times.
Other robberies this individual is suspected of committing are the TCF Bank branch, located at 6430 West Irving Park Road on February 26, March 28, and April 28; the TCF Bank branch, located at 1 West Devon Avenue in Park Ridge, on March 5 and March 15; and the TCF Bank branch, located at 4734 Cumberland Avenue in Chicago, on April 3.
This matter is being investigated by the Chicago FBI’s Violent Crimes Task Force (VCTF) and the Park Ridge Police Department. The Chicago VCTF is comprised of FBI special agents, detectives from the Chicago Police Department and investigators from the Cook County Sheriff’s Police.
Anyone recognizing this individual or having any information about these robberies is asked to call the Chicago FBI at (312) 421-6700.
Additional information about this case and other unsolved Chicago area bank robberies, including downloadable photographs, is available online at the Bandit Tracker Chicago website, www.bandittrackerchicago.com.
Five Doctors, Six Others Indicted for Participating in Million Dollar Medicare Fraud Ring
May 25, 2010 - SACRAMENTO, CA—United States Attorney Benjamin B. Wagner announced today that on May 20, 2010, a federal grand jury returned a 20-count superseding indictment charging five doctors and six others with conspiracy to commit health care fraud. The defendants are as follows:
Dr. Alexander Popov, 44, of Los Angeles;
Dr. Ramanathan Prakash, 63, of Northridge;
Dr. Emilio Cruz III, 57, of Los Angeles;
Dr. Lana Le Chabrier, 62, of Santa Barbara;
Dr. Sol Teitelbaum, 82, of Los Angeles;
Migran Petrosyan, 39, of Burbank;
Khachatur Arutunyan, 51, Tujunga;
Shushanik Martirosyan, 43, of Glendale;
Zoya Belov, 35, of Carmichael;
Nazaret Salmanyan, 27, of Citrus Heights; and
Liw Jiaw Saechao, 44, of Sacramento.
This case is the product of an extensive investigation by the Office of the Inspector General, Department of Health and Human Services, and the Federal Bureau of Investigation. Assistant United States Attorney Philip Ferrari is prosecuting the case.
The superseding indictment alleges that from February of 2006 through August of 2008, the defendants operated three health care clinics in Sacramento, Richmond, and Carmichael that submitted more than $5 million in fraudulent claims to Medicare.
The leader of the conspiracy, Vardges Egiazarian, 60, of Panorama City, was named in an original indictment that focused on the activities of the Richmond Clinic. The original indictment also charged Le Chabrier, Petrosyan, and Arutunyan, as well as Dr. Derrick Johnson with health care fraud.
According to Egiazarian’s guilty plea entered on August 12, 2009, he admitted that claims were submitted to Medicare for patients at each of the three clinics that the physicians did not treat and seeking reimbursement for procedures that were either unnecessary or never performed. Egiazarian admitted the clinic’s patients were recruited and transported to the clinic by individuals who were paid according to the number of patients they brought to the facility. Rather than being charged a co-payment, the patients were paid for their time and the use of their Medicare eligibility, generally $100 per visit. Some of the patients for whom billings were submitted at the Richmond Clinic were actually deceased on the date that they allegedly received services.
On November 6, 2009, Egiazarian was sentenced to six and a half years in prison and ordered to pay over $1.5 million to Medicare in restitution.
On September 9, 2009, Derrick Johnson entered a guilty plea to the original indictment. He admitted that hundreds of Medicare claims for services he allegedly performed at the Richmond clinic were submitted on his behalf, yet he had never set foot in the facility nor had he had any contact with its purported patients. He has yet to be sentenced.
The superseding indictment returned last Thursday adds both a conspiracy charge and allegations relating to the Richmond Clinic and adds the Sacramento and Carmichael Clinics. In sum, the superseding indictment charges that Doctors Popov, Prakash, Le Chabrier and Cruz each submitted applications to Medicare seeking approval to submit claims for medical services allegedly rendered at the clinics. Despite the approval of these applications, and the submission of over $5 million dollars worth of claims to Medicare, none of the doctors ever provided services or treatment at the clinics. As alleged in the indictment, clinic patients seldom received the services purportedly rendered in claims submitted to Medicare. Instead, Medicare-eligible patients were typically given cursory examinations and then paid $100 each for their trouble. The claims submitted to Medicare on behalf of these patients alleged that they received a variety of tests and treatments, including physical therapy sessions and sleep studies that were never performed at the clinics. The clinics maintained falsified medical files that held test results purportedly relating to the patients. In some instances, clinic employees performed procedures such as ultrasounds or blood draws on themselves or each other, and then placed the results in files relating to Medicare-eligible beneficiaries. The money paid by Medicare on these claims was distributed among the members of the conspiracy.
The maximum statutory penalty for a violation of both Health Care Fraud and Conspiracy to Commit Health Care Fraud is 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges in the superseding indictment are only allegations and each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Dr. Alexander Popov, 44, of Los Angeles;
Dr. Ramanathan Prakash, 63, of Northridge;
Dr. Emilio Cruz III, 57, of Los Angeles;
Dr. Lana Le Chabrier, 62, of Santa Barbara;
Dr. Sol Teitelbaum, 82, of Los Angeles;
Migran Petrosyan, 39, of Burbank;
Khachatur Arutunyan, 51, Tujunga;
Shushanik Martirosyan, 43, of Glendale;
Zoya Belov, 35, of Carmichael;
Nazaret Salmanyan, 27, of Citrus Heights; and
Liw Jiaw Saechao, 44, of Sacramento.
This case is the product of an extensive investigation by the Office of the Inspector General, Department of Health and Human Services, and the Federal Bureau of Investigation. Assistant United States Attorney Philip Ferrari is prosecuting the case.
The superseding indictment alleges that from February of 2006 through August of 2008, the defendants operated three health care clinics in Sacramento, Richmond, and Carmichael that submitted more than $5 million in fraudulent claims to Medicare.
The leader of the conspiracy, Vardges Egiazarian, 60, of Panorama City, was named in an original indictment that focused on the activities of the Richmond Clinic. The original indictment also charged Le Chabrier, Petrosyan, and Arutunyan, as well as Dr. Derrick Johnson with health care fraud.
According to Egiazarian’s guilty plea entered on August 12, 2009, he admitted that claims were submitted to Medicare for patients at each of the three clinics that the physicians did not treat and seeking reimbursement for procedures that were either unnecessary or never performed. Egiazarian admitted the clinic’s patients were recruited and transported to the clinic by individuals who were paid according to the number of patients they brought to the facility. Rather than being charged a co-payment, the patients were paid for their time and the use of their Medicare eligibility, generally $100 per visit. Some of the patients for whom billings were submitted at the Richmond Clinic were actually deceased on the date that they allegedly received services.
On November 6, 2009, Egiazarian was sentenced to six and a half years in prison and ordered to pay over $1.5 million to Medicare in restitution.
On September 9, 2009, Derrick Johnson entered a guilty plea to the original indictment. He admitted that hundreds of Medicare claims for services he allegedly performed at the Richmond clinic were submitted on his behalf, yet he had never set foot in the facility nor had he had any contact with its purported patients. He has yet to be sentenced.
The superseding indictment returned last Thursday adds both a conspiracy charge and allegations relating to the Richmond Clinic and adds the Sacramento and Carmichael Clinics. In sum, the superseding indictment charges that Doctors Popov, Prakash, Le Chabrier and Cruz each submitted applications to Medicare seeking approval to submit claims for medical services allegedly rendered at the clinics. Despite the approval of these applications, and the submission of over $5 million dollars worth of claims to Medicare, none of the doctors ever provided services or treatment at the clinics. As alleged in the indictment, clinic patients seldom received the services purportedly rendered in claims submitted to Medicare. Instead, Medicare-eligible patients were typically given cursory examinations and then paid $100 each for their trouble. The claims submitted to Medicare on behalf of these patients alleged that they received a variety of tests and treatments, including physical therapy sessions and sleep studies that were never performed at the clinics. The clinics maintained falsified medical files that held test results purportedly relating to the patients. In some instances, clinic employees performed procedures such as ultrasounds or blood draws on themselves or each other, and then placed the results in files relating to Medicare-eligible beneficiaries. The money paid by Medicare on these claims was distributed among the members of the conspiracy.
The maximum statutory penalty for a violation of both Health Care Fraud and Conspiracy to Commit Health Care Fraud is 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges in the superseding indictment are only allegations and each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
LOOKING FOR OUR CHILDREN
05/25/10 - These are just a very few of the children who are far away from home tonight.
Please take a minute to look at all the faces on our Kidnapping and Missing Persons webpage and see if you can identify Trenton, Allyson, and Georgina, or any of the other children listed there with their stories.
Please also take a look at the faces of the children who have been kidnapped by a parent—Mohamed Ali and the other 41 kids.
And we hope you'll visit our Crimes Against Children page to learn all you can about what a dangerous world it can be for our kids…and our Resources for Parents page to learn how to protect them in today’s world.
Last: join us in honoring the law enforcement officers and others recognized as part of National Missing Children's Day, including FBI Special Agents Charles Wilder, Barbara Cordero, and P. Michael Gordon and FBI Intelligence Analyst Vicki Pocock for their work on an international child pornography investigation called “Operation Achilles.”
Note: The children pictured or identified here may have been located since the above information was posted on this website. Please check our Wanted by the FBI website or contact your local FBI office for up-to-date information.
Monday, May 24, 2010
Butte County Developer to Plead Guilty in Builder Bailout Mortgage Fraud Scheme
Three Indicted in a Separate Sacramento Area Mortgage Fraud Scheme; Four More Indicted in a Shasta County Foreclosure Rescue Scheme
May 24, 2010- SACRAMENTO, CA—United States Attorney Benjamin B. Wagner announced developments today in three separate mortgage fraud cases in the Eastern District of California.
Butte County: Anthony G. Symmes, 59, of Paradise, has agreed to plead guilty to an information, filed this morning, charging him with one count of conspiracy to commit mail fraud in connection with a builder bailout scheme involving fraudulent sales of 62 houses, and with one count of money laundering. Symmes, who is an attorney, a CPA, a developer, and the largest home builder in the Chico area, has agreed to cooperate in the ongoing investigation of Garret G. Gililland and his associates. Gililland was previously indicted for mortgage fraud in this district, extradited from Spain, and is currently awaiting trial in federal custody. According to the plea agreement filed today, Symmes has already deposited $4 million into a U.S. Treasury account, which will be paid to the court for restitution.
The Symmes case was a joint investigation involving the FBI, IRS-Criminal Investigation, and the Butte County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Russell Carlberg.
Sacramento County: Lawrence Davis, 26, and Joel Clark, 27, both formerly of Sacramento and currently living in Las Vegas, and Eric Mortenson, 28, Sacramento, were indicted yesterday by a federal grand jury in Sacramento. That indictment was unsealed this morning after defendants Clark and Mortenson were arrested by FBI and IRS agents in Sacramento and Las Vegas. The indictment charges them with conspiracy to commit wire fraud and wire fraud in connection with an alleged property-flipping scheme operated in the Sacramento County area. This case is the product of an initial investigation by the California Department of Real Estate and is currently being investigated by the FBI. Assistant U.S. Attorney Laurel Loomis Rimon is prosecuting the case.
Shasta County: Jeremiah Andrew Martin, 32, of San Antonio, Darrin Arthur Johnston, 45, of Redding, Todd Allen Smith, 47, of Redding, and Cheryl Ann Hitomi Peterson, 47, of Redding, were indicted yesterday by a federal grand jury in Sacramento. The indictment was unsealed this morning when the defendants were arrested by FBI and IRS agents in Shasta County. The indictment returned yesterday charges all four defendants with conspiracy to commit mail fraud, mail fraud, and money laundering in connection with an alleged fraudulent foreclosure rescue scheme. The case is being investigated by the FBI and IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Matthew Stegman.
Regarding the Symmes case, Butte County District Attorney Mike Ramsey said, “Greedy, crooked developers, appraisers, mortgage brokers, and others contributed significantly to the great mortgage meltdown of the past two years. Greed led this formerly well-respected Chico developer down a path to his downfall and the destruction of a number of neighborhoods populated by good folks who have found their homes devalued by the empty foreclosures on their block. Once we discovered the complex, fraudulent scheme hatched here we began an extensive investigation. When we found the tentacles of this corrupt organization stretched beyond Butte County, we reached out to our federal partners for help. We are most gratified with the assistance and cooperation that has lead to the justice we see this day.”
U.S. Attorney Wagner said “The various schemes reflected in the cases announced today illustrate the many varieties of mortgage fraud. These types of crimes have a broad impact on our communities, not only weakening financial institutions and devastating individual victims of the fraud schemes, but also driving down the value of many families’ primary asset, their home. Rooting out and prosecuting fraudsters in the mortgage and real estate industries is an extremely high priority for the U.S. Department of Justice. We are working on other mortgage fraud investigations here in the Eastern District of California, and there will be more to come.”
“IRS-Criminal Investigation takes mortgage fraud seriously. The impact of these types of crimes cannot be overstated. Fraud in the mortgage industry has played a major role in almost crippling this nation’s economy, and directly affecting our tax administration system,” said José M. Martínez, Assistant Special Agent in Charge, IRS-Criminal Investigation. “We will continue to utilize our financial investigative expertise to aggressively investigate criminal activities that adversely affect our financial system.”
Symmes Builder-Bailout Scheme
The prosecution of Anthony G. Symmes arises from the same investigation that resulted in the prosecution of Garret Griffith Gililland III. According to the plea agreement filed this morning, beginning in the Fall of 2006, as the real estate market cooled, Symmes found himself with a significant inventory of newly built homes not selling at their list price. Gililland, an unlicensed mortgage broker, approached Symmes and offered to take the homes off of Symmes’s hands, using a network of straw buyers. The two agreed that the prices on Symmes’s homes would be artificially inflated by approximately $40,000 to $60,000 above the list price.
According to court documents, Gililland, using fraudulent documents, would then qualify his straw buyers for 100 percent financing on the inflated value of the homes. Typically the day after the homes sold at the inflated values, Symmes would write a check to shell corporations controlled by Gililland and his associates for the inflated portion of the sales price ($40,000 to $60,000, depending on the house). Gililland then pocketed a portion of the money and used some of the money to pay off his straw buyers.
Altogether, from 2006 through 2008, Symmes sold Gililland and Gililland’s associates 62 houses at artificially inflated prices. These fraudulent purchases were financed by mortgage lenders in the total amount of approximately $21 million. Symmes wrote checks back to Gililland and his associates totaling approximately $2.5 million. These price rebates from Symmes were concealed from the lenders. To date, dozens of Symmes’s homes have been foreclosed or short-sold. Losses realized to date total almost $5 million and are expected to climb. Due to the volume of the artificially inflated prices on homes in Chico, Symmes and Gililland were able to create artificially high comparable sales that appraisers relied upon, affecting the overall new-home market in the Chico area.
Symmes is expected to appear in U.S. District Court in Sacramento in the near future to enter his plea pursuant to the plea agreement. As part of that agreement, Symmes has already paid $4 million, which will be used to make restitution to victims, and has agreed to cooperate in the ongoing investigation.
Symmes faces a maximum penalty of 20 years in prison, for the mail fraud charge, 10 years in prison for the money laundering charge, a $250,000 fine, and three years of supervised release 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.
Sacramento Area Property-Flipping Scheme
The indictment filed yesterday in the Davis case alleges that Davis, a realtor, and Mortenson, a loan officer with All State Home Loans, worked as a team assisting clients in buying houses and obtaining mortgage loans through a real estate sales office in Sacramento. Joel Clark was Davis’s associate who assisted in running paperwork and showing homes to prospective buyers. Davis and Mortenson marketed a “rebate” program and encouraged buyers to buy multiple properties in a very short period of time, even within a single month, promising them “cash-back” on their purchases for repairs, upgrades, and to cover the mortgage payments they could not otherwise afford. Buyers were told that they had the opportunity to become real estate “investors” and to generate rental income and “flip” properties for substantial profits. Davis and Mortenson themselves gained large commissions from each transaction, and Joel Clark received some of the cash-back payments.
The indictment charges that the transactions involved false and fraudulent loan applications submitted by Davis and Mortenson on behalf of the buyers. First, Davis would offer the seller a purchase price on behalf of his client that was substantially more than the list price of the property, thereby misleading the lender as to the market value of the property. Then, Davis would include a term in the sales contract that required the seller to pay thousands of dollars back to the buyer, or to a third party, generally after the close of escrow and without notice to the lender. The “cash-back” to the buyers exceeded the limits set by lenders for buyer credits.
Additionally, the indictment alleges that Mortenson would submit loan applications that were full of false information and forged and fraudulent supporting documents. Loan applications were submitted that had entirely false occupations and monthly incomes, as well as falsely inflated bank account balances, leading the banks to believe that the borrowers were more qualified for the loans than they truly were. Mortenson also submitted fraudulent and forged forms verifying material matters, such as employment, rental history, and bank balances. By causing the buyers to buy so many properties in such a short period of time, earlier property purchases did not show up on property reports, leaving the lenders unaware of the buyers’ other loan commitments. In all, the charges in the indictment include more than $6 million worth of fraudulently obtained loans. All of the properties were foreclosed, resulting in a loss to the financial institutions of more than $2.6 million.
Mortenson is expected to make an initial appearance at 2:00 p.m. today before a U.S. Magistrate Judge in Sacramento. Defendants Davis and Clark will make their initial appearances before a U.S. Magistrate Judge in Las Vegas.
If convicted of the charges, the defendants face a maximum sentence of 20 years in prison, a $250,000 fine, and three years of supervised release. 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.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Shasta County Foreclosure Rescue Scheme
The indictment filed yesterday in the Martin case charges that Martin, Johnston, Smith, and Peterson, operating through several entities in the Redding area that purported to offer foreclosure relief and credit repair services, targeted homeowners in financial distress and facing foreclosure. Martin, Johnston, and Smith allegedly marketed a “foreclosure recovery” program in which homeowners were persuaded to sign over the deeds to their homes, based on the defendants’ false representations that the homeowners could lease them back for a low rent, that the defendants would help them repair their credit, and that the homeowners could buy the homes back after two years. After obtaining title to the homes, Martin, Johnston and Smith are alleged to have extracted equity from them by inflating their values and obtaining additional loans, keeping the rent payments rather than making payments to lenders, and then allowing the homes to be lost in foreclosure. Peterson, an escrow officer and notary, is alleged to have used her office and her notary status to lend the appearance of legitimacy to the scheme. Many homeowners lost their homes in the course of the fraud, and lenders suffered losses in excess of $1 million.
Defendants Johnson, Smith, and Peterson were arrested this morning in Shasta County are expected to make an initial appearance at 2:00 p.m. today before a U.S. Magistrate Judge in Sacramento.
The maximum penalty for conspiracy to commit mail fraud affecting a financial institution and for mail fraud affecting a financial institution is 30 years in prison and a $250,000 fine. The maximum penalty for conspiracy to launder funds is 10 years in prison and a $250,000 fine or twice the amount of the criminally derived property. 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.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This law enforcement action is part of the work being done by 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. One component of the FFETF is the national Mortgage Fraud Working Group, co-chaired by U.S. Attorney Wagner. For more information on the task force, visit StopFraud.gov.
May 24, 2010- SACRAMENTO, CA—United States Attorney Benjamin B. Wagner announced developments today in three separate mortgage fraud cases in the Eastern District of California.
Butte County: Anthony G. Symmes, 59, of Paradise, has agreed to plead guilty to an information, filed this morning, charging him with one count of conspiracy to commit mail fraud in connection with a builder bailout scheme involving fraudulent sales of 62 houses, and with one count of money laundering. Symmes, who is an attorney, a CPA, a developer, and the largest home builder in the Chico area, has agreed to cooperate in the ongoing investigation of Garret G. Gililland and his associates. Gililland was previously indicted for mortgage fraud in this district, extradited from Spain, and is currently awaiting trial in federal custody. According to the plea agreement filed today, Symmes has already deposited $4 million into a U.S. Treasury account, which will be paid to the court for restitution.
The Symmes case was a joint investigation involving the FBI, IRS-Criminal Investigation, and the Butte County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Russell Carlberg.
Sacramento County: Lawrence Davis, 26, and Joel Clark, 27, both formerly of Sacramento and currently living in Las Vegas, and Eric Mortenson, 28, Sacramento, were indicted yesterday by a federal grand jury in Sacramento. That indictment was unsealed this morning after defendants Clark and Mortenson were arrested by FBI and IRS agents in Sacramento and Las Vegas. The indictment charges them with conspiracy to commit wire fraud and wire fraud in connection with an alleged property-flipping scheme operated in the Sacramento County area. This case is the product of an initial investigation by the California Department of Real Estate and is currently being investigated by the FBI. Assistant U.S. Attorney Laurel Loomis Rimon is prosecuting the case.
Shasta County: Jeremiah Andrew Martin, 32, of San Antonio, Darrin Arthur Johnston, 45, of Redding, Todd Allen Smith, 47, of Redding, and Cheryl Ann Hitomi Peterson, 47, of Redding, were indicted yesterday by a federal grand jury in Sacramento. The indictment was unsealed this morning when the defendants were arrested by FBI and IRS agents in Shasta County. The indictment returned yesterday charges all four defendants with conspiracy to commit mail fraud, mail fraud, and money laundering in connection with an alleged fraudulent foreclosure rescue scheme. The case is being investigated by the FBI and IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Matthew Stegman.
Regarding the Symmes case, Butte County District Attorney Mike Ramsey said, “Greedy, crooked developers, appraisers, mortgage brokers, and others contributed significantly to the great mortgage meltdown of the past two years. Greed led this formerly well-respected Chico developer down a path to his downfall and the destruction of a number of neighborhoods populated by good folks who have found their homes devalued by the empty foreclosures on their block. Once we discovered the complex, fraudulent scheme hatched here we began an extensive investigation. When we found the tentacles of this corrupt organization stretched beyond Butte County, we reached out to our federal partners for help. We are most gratified with the assistance and cooperation that has lead to the justice we see this day.”
U.S. Attorney Wagner said “The various schemes reflected in the cases announced today illustrate the many varieties of mortgage fraud. These types of crimes have a broad impact on our communities, not only weakening financial institutions and devastating individual victims of the fraud schemes, but also driving down the value of many families’ primary asset, their home. Rooting out and prosecuting fraudsters in the mortgage and real estate industries is an extremely high priority for the U.S. Department of Justice. We are working on other mortgage fraud investigations here in the Eastern District of California, and there will be more to come.”
“IRS-Criminal Investigation takes mortgage fraud seriously. The impact of these types of crimes cannot be overstated. Fraud in the mortgage industry has played a major role in almost crippling this nation’s economy, and directly affecting our tax administration system,” said José M. Martínez, Assistant Special Agent in Charge, IRS-Criminal Investigation. “We will continue to utilize our financial investigative expertise to aggressively investigate criminal activities that adversely affect our financial system.”
Symmes Builder-Bailout Scheme
The prosecution of Anthony G. Symmes arises from the same investigation that resulted in the prosecution of Garret Griffith Gililland III. According to the plea agreement filed this morning, beginning in the Fall of 2006, as the real estate market cooled, Symmes found himself with a significant inventory of newly built homes not selling at their list price. Gililland, an unlicensed mortgage broker, approached Symmes and offered to take the homes off of Symmes’s hands, using a network of straw buyers. The two agreed that the prices on Symmes’s homes would be artificially inflated by approximately $40,000 to $60,000 above the list price.
According to court documents, Gililland, using fraudulent documents, would then qualify his straw buyers for 100 percent financing on the inflated value of the homes. Typically the day after the homes sold at the inflated values, Symmes would write a check to shell corporations controlled by Gililland and his associates for the inflated portion of the sales price ($40,000 to $60,000, depending on the house). Gililland then pocketed a portion of the money and used some of the money to pay off his straw buyers.
Altogether, from 2006 through 2008, Symmes sold Gililland and Gililland’s associates 62 houses at artificially inflated prices. These fraudulent purchases were financed by mortgage lenders in the total amount of approximately $21 million. Symmes wrote checks back to Gililland and his associates totaling approximately $2.5 million. These price rebates from Symmes were concealed from the lenders. To date, dozens of Symmes’s homes have been foreclosed or short-sold. Losses realized to date total almost $5 million and are expected to climb. Due to the volume of the artificially inflated prices on homes in Chico, Symmes and Gililland were able to create artificially high comparable sales that appraisers relied upon, affecting the overall new-home market in the Chico area.
Symmes is expected to appear in U.S. District Court in Sacramento in the near future to enter his plea pursuant to the plea agreement. As part of that agreement, Symmes has already paid $4 million, which will be used to make restitution to victims, and has agreed to cooperate in the ongoing investigation.
Symmes faces a maximum penalty of 20 years in prison, for the mail fraud charge, 10 years in prison for the money laundering charge, a $250,000 fine, and three years of supervised release 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.
Sacramento Area Property-Flipping Scheme
The indictment filed yesterday in the Davis case alleges that Davis, a realtor, and Mortenson, a loan officer with All State Home Loans, worked as a team assisting clients in buying houses and obtaining mortgage loans through a real estate sales office in Sacramento. Joel Clark was Davis’s associate who assisted in running paperwork and showing homes to prospective buyers. Davis and Mortenson marketed a “rebate” program and encouraged buyers to buy multiple properties in a very short period of time, even within a single month, promising them “cash-back” on their purchases for repairs, upgrades, and to cover the mortgage payments they could not otherwise afford. Buyers were told that they had the opportunity to become real estate “investors” and to generate rental income and “flip” properties for substantial profits. Davis and Mortenson themselves gained large commissions from each transaction, and Joel Clark received some of the cash-back payments.
The indictment charges that the transactions involved false and fraudulent loan applications submitted by Davis and Mortenson on behalf of the buyers. First, Davis would offer the seller a purchase price on behalf of his client that was substantially more than the list price of the property, thereby misleading the lender as to the market value of the property. Then, Davis would include a term in the sales contract that required the seller to pay thousands of dollars back to the buyer, or to a third party, generally after the close of escrow and without notice to the lender. The “cash-back” to the buyers exceeded the limits set by lenders for buyer credits.
Additionally, the indictment alleges that Mortenson would submit loan applications that were full of false information and forged and fraudulent supporting documents. Loan applications were submitted that had entirely false occupations and monthly incomes, as well as falsely inflated bank account balances, leading the banks to believe that the borrowers were more qualified for the loans than they truly were. Mortenson also submitted fraudulent and forged forms verifying material matters, such as employment, rental history, and bank balances. By causing the buyers to buy so many properties in such a short period of time, earlier property purchases did not show up on property reports, leaving the lenders unaware of the buyers’ other loan commitments. In all, the charges in the indictment include more than $6 million worth of fraudulently obtained loans. All of the properties were foreclosed, resulting in a loss to the financial institutions of more than $2.6 million.
Mortenson is expected to make an initial appearance at 2:00 p.m. today before a U.S. Magistrate Judge in Sacramento. Defendants Davis and Clark will make their initial appearances before a U.S. Magistrate Judge in Las Vegas.
If convicted of the charges, the defendants face a maximum sentence of 20 years in prison, a $250,000 fine, and three years of supervised release. 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.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Shasta County Foreclosure Rescue Scheme
The indictment filed yesterday in the Martin case charges that Martin, Johnston, Smith, and Peterson, operating through several entities in the Redding area that purported to offer foreclosure relief and credit repair services, targeted homeowners in financial distress and facing foreclosure. Martin, Johnston, and Smith allegedly marketed a “foreclosure recovery” program in which homeowners were persuaded to sign over the deeds to their homes, based on the defendants’ false representations that the homeowners could lease them back for a low rent, that the defendants would help them repair their credit, and that the homeowners could buy the homes back after two years. After obtaining title to the homes, Martin, Johnston and Smith are alleged to have extracted equity from them by inflating their values and obtaining additional loans, keeping the rent payments rather than making payments to lenders, and then allowing the homes to be lost in foreclosure. Peterson, an escrow officer and notary, is alleged to have used her office and her notary status to lend the appearance of legitimacy to the scheme. Many homeowners lost their homes in the course of the fraud, and lenders suffered losses in excess of $1 million.
Defendants Johnson, Smith, and Peterson were arrested this morning in Shasta County are expected to make an initial appearance at 2:00 p.m. today before a U.S. Magistrate Judge in Sacramento.
The maximum penalty for conspiracy to commit mail fraud affecting a financial institution and for mail fraud affecting a financial institution is 30 years in prison and a $250,000 fine. The maximum penalty for conspiracy to launder funds is 10 years in prison and a $250,000 fine or twice the amount of the criminally derived property. 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.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This law enforcement action is part of the work being done by 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. One component of the FFETF is the national Mortgage Fraud Working Group, co-chaired by U.S. Attorney Wagner. For more information on the task force, visit StopFraud.gov.
Crime in the US 2009 Preliminary Report
Preliminary figures indicate that, as a whole, law enforcement agencies throughout the Nation reported a decrease of 5.5 percent in the number of violent crimes brought to their attention for 2009 when compared with figures reported for 2008. The violent crime category includes murder, forcible rape, robbery, and aggravated assault. The number of property crimes in the United States in 2009 decreased 4.9 percent when compared with data from 2008. Property crimes include burglary, larceny-theft, and motor vehicle theft. Arson is also a property crime, but data for arson are not included in property crime totals. Figures for 2009 indicate that arson decreased 10.4 percent when compared to 2008 figures.
The data presented in Tables 1 and 2 indicate the percent change in offenses known to law enforcement for 2009 compared to 2008 by population group and region, respectively. Table 3 reflects the percent change within the Nation for consecutive years (each year compared to the prior year). Table 4 presents the number of offenses known to law enforcement for agencies having a resident population of 100,000 and over and providing 12 months of complete data for 2009. In addition, Table 4 presents 12 months of 2008 data, where available, as a point of comparison. All data in this Report are preliminary.
More Information
http://www.fbi.gov/ucr/prelimsem2009/index.html
The data presented in Tables 1 and 2 indicate the percent change in offenses known to law enforcement for 2009 compared to 2008 by population group and region, respectively. Table 3 reflects the percent change within the Nation for consecutive years (each year compared to the prior year). Table 4 presents the number of offenses known to law enforcement for agencies having a resident population of 100,000 and over and providing 12 months of complete data for 2009. In addition, Table 4 presents 12 months of 2008 data, where available, as a point of comparison. All data in this Report are preliminary.
More Information
http://www.fbi.gov/ucr/prelimsem2009/index.html
Robbery of U.S. Bank Branch in Bloomington
The robber is described as a dark-skinned male in his mid-20’s, who spoke softly with a middle-eastern accent. He was approximately 5’9” – 5’10” tall and 170 pounds with a slim build and a 5 o’clock shadow. He was wearing a dark gray hooded sweatshirt with the hood pulled up, dark jeans, and mirrored aviator-style sunglasses.
Ralph S. Boelter, Special Agent in Charge of the Minneapolis Office of the FBI, requests that anyone with information regarding this bank robbery contact the Minneapolis FBI at 612-376-3200, the Bloomington Police Department, or Crime Stoppers. A reward is offered for information leading to the arrest and indictment of this bank robber.
Two Women Arrested for Attempting to Smuggle 550 Pounds of Marijuana
May 24, 2010 - Lukeville, Ariz. - U.S. Customs and Border Protection officers at the Lukeville Port of Entry arrested two women on separate narcotic smuggling cases in the last few days.
“The officers demonstrate their dedication to the CBP mission through their enforcement efforts,” said Acting Port Director Efrain Solis Jr. “They do great work!”
On May 17, CBP officers processing travelers applying for entry into the United States encountered a 40-year-old woman driving a Ford F-150 truck. The officers during the primary interview noticed discrepancies in the vehicle and escorted the woman into the office.
The vehicle was inspected and found to have approximately 428 pounds of marijuana in the truck bed. The woman was immediately arrested and turned over to U.S. Immigration and Customs Enforcement.
On May 18, the second smuggling case occurred when a 42-year-old woman driving a Dodge Durango was found to have 121 pounds of marijuana in her car. Officers noticed her odd behavior and during the search found marijuana packages in the quarter panels and doors of the sport utility vehicle.
The woman, marijuana, and vehicle were turned over to the Pima County Sheriff’s Department.
“The officers demonstrate their dedication to the CBP mission through their enforcement efforts,” said Acting Port Director Efrain Solis Jr. “They do great work!”
On May 17, CBP officers processing travelers applying for entry into the United States encountered a 40-year-old woman driving a Ford F-150 truck. The officers during the primary interview noticed discrepancies in the vehicle and escorted the woman into the office.
The vehicle was inspected and found to have approximately 428 pounds of marijuana in the truck bed. The woman was immediately arrested and turned over to U.S. Immigration and Customs Enforcement.
On May 18, the second smuggling case occurred when a 42-year-old woman driving a Dodge Durango was found to have 121 pounds of marijuana in her car. Officers noticed her odd behavior and during the search found marijuana packages in the quarter panels and doors of the sport utility vehicle.
The woman, marijuana, and vehicle were turned over to the Pima County Sheriff’s Department.
Court Upholds Columbia County Drug Dealer’s Conviction and 24-Year Prison Sentence
May 24, 2010 - Dennis C. Pfannenschmidt, United States Attorney for the Middle District of Pennsylvania, announced today that the United States Court of Appeals for the Third Circuit has affirmed the conviction and prison sentence of Steven Fausnaught, age 35, of Catawissa. Fausnaught was previously convicted of 12 counts of drug trafficking and related crimes and sentenced by Senior U.S. District Court Judge Edwin M. Kosik to serve more than 24 years in prison.
Fausnaught, and his co-defendant, Charles Sechler, were convicted by a jury on July 30, 2007, after six days of testimony. The jury found that Fausnaught and Sechler participated in a lengthy conspiracy to distribute more than 500 grams of methamphetamine and more than 100 kilograms of marijuana in the Columbia-Lycoming Counties area of Pennsylvania during 1995 through 2003.
The charges against Fausnaught resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and the Columbia County Drug Task Force. Fausnaught was sentenced by Judge Kosik on December 29, 2008. Sechler is awaiting sentencing. In appealing his conviction, Fausnaught claimed that the government’s evidence at trial proved multiple conspiracies instead of the single conspiracy charged in the indictment. In appealing his sentence, Fausnaught claimed that Judge Kosik erred in attributing at least 15 kilograms of methamphetamine to his sentencing guideline calculation and in ruling that a guideline enhancement applied for Fausnaught’s possession of a firearm in connection with the drug conspiracy.
The Third Circuit Court, in upholding Fausnaught’s conviction, ruled that the jury did not err in finding that a single drug conspiracy existed. The Court noted that the evidence at trial showed that the conspirators shared a common goal; that the agreement among the conspirators “sought to accomplish a continuous result that would not persist without the continuous cooperation of the conspirators;” and that the involvement of the conspirators overlapped in the various dealings.
In affirming Fausnaught’s 292-month prison sentence, the Court held that Judge Kosik correctly attributed 15 kilograms of methamphetamine to Fausnaught and correctly applied the gun enhancement because “it was not clearly improbable that the guns found in Fausnaught’s residence were connected to the drug conspiracy.”
Pfannenschmidt noted that the case and appeal were handled by Assistant United States Attorney Francis P. Sempa.
Fausnaught, and his co-defendant, Charles Sechler, were convicted by a jury on July 30, 2007, after six days of testimony. The jury found that Fausnaught and Sechler participated in a lengthy conspiracy to distribute more than 500 grams of methamphetamine and more than 100 kilograms of marijuana in the Columbia-Lycoming Counties area of Pennsylvania during 1995 through 2003.
The charges against Fausnaught resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and the Columbia County Drug Task Force. Fausnaught was sentenced by Judge Kosik on December 29, 2008. Sechler is awaiting sentencing. In appealing his conviction, Fausnaught claimed that the government’s evidence at trial proved multiple conspiracies instead of the single conspiracy charged in the indictment. In appealing his sentence, Fausnaught claimed that Judge Kosik erred in attributing at least 15 kilograms of methamphetamine to his sentencing guideline calculation and in ruling that a guideline enhancement applied for Fausnaught’s possession of a firearm in connection with the drug conspiracy.
The Third Circuit Court, in upholding Fausnaught’s conviction, ruled that the jury did not err in finding that a single drug conspiracy existed. The Court noted that the evidence at trial showed that the conspirators shared a common goal; that the agreement among the conspirators “sought to accomplish a continuous result that would not persist without the continuous cooperation of the conspirators;” and that the involvement of the conspirators overlapped in the various dealings.
In affirming Fausnaught’s 292-month prison sentence, the Court held that Judge Kosik correctly attributed 15 kilograms of methamphetamine to Fausnaught and correctly applied the gun enhancement because “it was not clearly improbable that the guns found in Fausnaught’s residence were connected to the drug conspiracy.”
Pfannenschmidt noted that the case and appeal were handled by Assistant United States Attorney Francis P. Sempa.
Two Bounty Hunter Gang Members Plead Guilty to Assault and Firearms Charges
NORFOLK, VA—Cameron Mychal Evans, a/k/a Cam, 21, of Suffolk, Virginia, pled guilty today in Norfolk federal court to one count of assault with a dangerous weapon in aid of a racketeering activity and one count of possession of a firearm in furtherance of a crime of violence. A co-defendant, Craig Steven Foster, 24, of Portsmouth, Va., pled guilty to the same charges earlier this week. Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement today. Evans and Foster both entered their guilty pleas before United States District Judge Jerome B. Friedman. Evans will be sentenced on August 27, 2010, and Foster will be sentenced on August 20, 2010. Both are facing a maximum penalty of life in prison.
According to court documents, on June 12, 2007, Evans, Foster, and several co-defendants drove to a home in Chesapeake armed with a handgun for the purpose of committing a home invasion robbery. Several weeks earlier, one of the co-defendants visited the victim’s residence to inquire about renting the residence. During a walk-thru of the residence the co-defendant noticed a safe in the master bedroom. The co-defendant relayed this information to his fellow gang members, resulting in the plans to commit the home invasion robbery. When Evans, Foster, and their co-defendants arrived at the residence, they knocked on the door and when the victim answered, they forced their way into the residence. At gunpoint, they demanded from the victim money located in the safe. The victim began to scream and was hit several times on the head with the firearm. The screams of the victim came to the attention of the neighbors. Fearing apprehension, Evans, Foster, and the co-defendants fled the scene. In their haste to flee the scene, they accidently dropped the firearm in the victim’s front yard. The firearm was recovered by the Chesapeake Police.
This case was investigated by the FBI, the Portsmouth and Suffolk Police Departments and the Virginia State Police. Assistant United States Attorneys William Muhr and Melissa O’Boyle are prosecuting the case on behalf of the United States.
According to court documents, on June 12, 2007, Evans, Foster, and several co-defendants drove to a home in Chesapeake armed with a handgun for the purpose of committing a home invasion robbery. Several weeks earlier, one of the co-defendants visited the victim’s residence to inquire about renting the residence. During a walk-thru of the residence the co-defendant noticed a safe in the master bedroom. The co-defendant relayed this information to his fellow gang members, resulting in the plans to commit the home invasion robbery. When Evans, Foster, and their co-defendants arrived at the residence, they knocked on the door and when the victim answered, they forced their way into the residence. At gunpoint, they demanded from the victim money located in the safe. The victim began to scream and was hit several times on the head with the firearm. The screams of the victim came to the attention of the neighbors. Fearing apprehension, Evans, Foster, and the co-defendants fled the scene. In their haste to flee the scene, they accidently dropped the firearm in the victim’s front yard. The firearm was recovered by the Chesapeake Police.
This case was investigated by the FBI, the Portsmouth and Suffolk Police Departments and the Virginia State Police. Assistant United States Attorneys William Muhr and Melissa O’Boyle are prosecuting the case on behalf of the United States.
Operation Blood Drive Fugitive Turns Himself in to the FBI
May 24, 2010 - Today, Dupree Melvin, an associate of the Bloods street gang in Newburgh, NY, turned himself in to the FBI’s Hudson Valley Safe Streets Task Force (HVSSTF). He has been on the run since May 13, 2010 when the FBI HVSSTF conducted a major law enforcement operation in Newburgh. Seventy-eight gang members were indicted in the Southern District of New York on various federal charges, and starting in the early morning hours of May 13, over 500 law enforcement personnel carried out a major arrest operation. Seventy-three of the seventy-eight subjects have now been captured or turned themselves in.
The FBI and the HVSSTF are searching for the remaining fugitives and seek the public’s assistance. The wanted poster at the following web address lists the names of the fugitives and those that have been captured or turned themselves in: http://www.fbi.gov/wanted/alert/newyork.htm.
The remaining fugitive’s pictures have also been placed on the Clear Channel digital billboard in Times Square and have appeared prominently in the local press.
Special Agent Richard Kolko said, “The public’s assistance has been instrumental in tracking down these fugitives. With their pictures everywhere, including right in the middle of Times Square, these men know they are wanted by the FBI. There are still fugitives out there and we want them to turn themselves in. The residents of Newburgh want to see them arrested. The public can play a valuable role in tracking down the remaining fugitives. Anyone with information on their whereabouts is requested to call the FBI at 212-384-5000 or the local police.”
The Hudson Valley Safe Streets Task Force is comprised of agents and law enforcement officers from DOJ (SDNY); City of Newburgh PD; New York State Police; Orange County D.A.'S Office; Orange County Sheriff's Office; ATF; ICE; USMS; NYS Dept. of Corrections; City of Middletown PD; Town of Newburgh PD; Town of New Windsor PD; Village of Monticello PD; City of Poughkeepsie PD; Dutchess County Sheriff's Office; Beacon Police Department; Sullivan County Sheriff's Office; and NYS Department of Parole.
The FBI and the HVSSTF are searching for the remaining fugitives and seek the public’s assistance. The wanted poster at the following web address lists the names of the fugitives and those that have been captured or turned themselves in: http://www.fbi.gov/wanted/alert/newyork.htm.
The remaining fugitive’s pictures have also been placed on the Clear Channel digital billboard in Times Square and have appeared prominently in the local press.
Special Agent Richard Kolko said, “The public’s assistance has been instrumental in tracking down these fugitives. With their pictures everywhere, including right in the middle of Times Square, these men know they are wanted by the FBI. There are still fugitives out there and we want them to turn themselves in. The residents of Newburgh want to see them arrested. The public can play a valuable role in tracking down the remaining fugitives. Anyone with information on their whereabouts is requested to call the FBI at 212-384-5000 or the local police.”
The Hudson Valley Safe Streets Task Force is comprised of agents and law enforcement officers from DOJ (SDNY); City of Newburgh PD; New York State Police; Orange County D.A.'S Office; Orange County Sheriff's Office; ATF; ICE; USMS; NYS Dept. of Corrections; City of Middletown PD; Town of Newburgh PD; Town of New Windsor PD; Village of Monticello PD; City of Poughkeepsie PD; Dutchess County Sheriff's Office; Beacon Police Department; Sullivan County Sheriff's Office; and NYS Department of Parole.
Seeking Person of Interest in Connection with Shooting on Warm Springs Indian Reservation
The Warm Springs police officer was not injured and continued following the fleeing vehicle while calling for assistance. The vehicle continued on Highway 3 and turned onto Highway 8, eventually turning onto a dirt road called Charley Canyon Road. The vehicle continued attempting to elude officers for several miles on very rough roads until it was unable to continue any further. Two suspects were then observed fleeing the vehicle on foot, one carrying a rifle and the other a bag. While fleeing, one suspect fired several shots at the Warm Springs police officers. One officer armed with a rifle returned fire at the suspects.
At this time, the suspects remain at large. One suspect was seen wearing black shorts and a green shirt. The second suspect was wearing black pants and a black shirt. One or both suspects may have been wearing hoodies.
A perimeter around the area, described as very rugged with deep ravines, was established. Law enforcement officers from the FBI, Warm Springs Police Department, Oregon State Police, Jefferson County Sheriff's Office, Wasco County Sheriff's Office, Deschutes County Sheriff's Office, Madras Police Department, Bend Police Department, and Clackamas County Sheriff's Office were involved in a cooperative operation today to find and arrest the suspects.
Tactical officers from FBI and OSP were supported by officers patrolling the area in vehicles, in the air, and canine units on foot.
Nine local residences in the Charley Canyon area were evacuated by officers.
According to Warm Springs Department of Public Safety Director Jim Soules, the vehicle and suspects are believed to be involved in an earlier incident in Madras during which shots were fired at a Madras police officer.
Investigators have identified a person of interest who they would like to locate and interview regarding the shooting incident on the Warm Springs Reservation. He is identified as Waylon McKie Weaselhead, age 21. Weaselhead is a tribal member. He is described as:
Native American man
Height: 5'7"
Weight: 175 pounds
Hair: Black, but cut short/shaved
Eyes: Brown
Other: Tattoo on his chest that reads "5150" and multiple tattoos on other parts of his body
Anyone with information regarding Weaselhead's whereabouts or anyone with information on the larger investigation is asked to call the Warm Springs Dispatch Center at 541-553-1171 or send tips to wspdtips@wstribes.org.
*Note: The photographs of the crime scene are courtesy of the Oregon State Police.
Robbery of Chase Bank in Streamwood
For more information about this robbery and to view more photographs, please visit the www.bandittrackerchicago.com website.
Anyone having any information regarding this robbery is asked to call the Chicago Office of the FBI at 312/421-6700.
Federal Inmates Get Death Penalty for Murder of Fellow Prisoner in Beaumont
May 24, 2010 - BEAUMONT, TX—Two federal inmates have been sentenced to die for the murder of a fellow prisoner at the U.S. Penitentiary in Beaumont (USP-Beaumont) announced U.S. Attorney John M. Bales today.
Mark Issac Snarr, 34, of Salt Lake City, Utah, and Edgar Balthazar Garcia, 30, of Abilene, Texas were sentenced to the death penalty today by U.S. District Judge Marcia Crone. Snarr and Garcia were found guilty by a jury of capital murder on May 7, 2010 following a trial which began on May 3, 2010. Jurors deliberated for less than 3 hours before recommending the death penalty.
According to information presented in court, on the afternoon of Nov. 28, 2007, Bureau of Prisons corrections officers were escorting inmates Snarr and Garcia to their cells at the USP-Beaumont. As they arrived at their cells, inmates Snarr and Garcia slipped from their hand restraints and immediately pulled homemade knives, or shanks, that had been hidden on their persons. The two began attacking one of the corrections officers, stabbing him in the chest and shoulders 23 times. The inmates then turned their attention to the other corrections officer and demanded that he turn over his cell keys. When he refused, he was stabbed twice before Snarr removed the keys from the guard's belt.
Snarr and Garcia then unlocked the cell of inmate Gabriel Rhone. Snarr and Garcia immediately began to attack Rhone, stabbing him repeatedly with their shanks. Rhone was stabbed over 50 times, including a stab wound to his chest which penetrated his heart. Corrections officers were forced to use chemical agents through a locked door in order to stop the attack, which lasted several minutes and was captured by a surveillance camera. The wounded corrections officers and Rhone were transported to a local medical facility where Rhone was pronounced dead at approximately 4:15 pm.
Snarr and Garcia were indicted Jan. 21, 2009, and charged with first degree murder.
The case was investigated by the Federal Bureau of Prisons and the FBI and prosecuted by Assistant U.S. Attorneys Joseph R. Batte, Kerry Klintworth and Antonetta Stancu.
Mark Issac Snarr, 34, of Salt Lake City, Utah, and Edgar Balthazar Garcia, 30, of Abilene, Texas were sentenced to the death penalty today by U.S. District Judge Marcia Crone. Snarr and Garcia were found guilty by a jury of capital murder on May 7, 2010 following a trial which began on May 3, 2010. Jurors deliberated for less than 3 hours before recommending the death penalty.
According to information presented in court, on the afternoon of Nov. 28, 2007, Bureau of Prisons corrections officers were escorting inmates Snarr and Garcia to their cells at the USP-Beaumont. As they arrived at their cells, inmates Snarr and Garcia slipped from their hand restraints and immediately pulled homemade knives, or shanks, that had been hidden on their persons. The two began attacking one of the corrections officers, stabbing him in the chest and shoulders 23 times. The inmates then turned their attention to the other corrections officer and demanded that he turn over his cell keys. When he refused, he was stabbed twice before Snarr removed the keys from the guard's belt.
Snarr and Garcia then unlocked the cell of inmate Gabriel Rhone. Snarr and Garcia immediately began to attack Rhone, stabbing him repeatedly with their shanks. Rhone was stabbed over 50 times, including a stab wound to his chest which penetrated his heart. Corrections officers were forced to use chemical agents through a locked door in order to stop the attack, which lasted several minutes and was captured by a surveillance camera. The wounded corrections officers and Rhone were transported to a local medical facility where Rhone was pronounced dead at approximately 4:15 pm.
Snarr and Garcia were indicted Jan. 21, 2009, and charged with first degree murder.
The case was investigated by the Federal Bureau of Prisons and the FBI and prosecuted by Assistant U.S. Attorneys Joseph R. Batte, Kerry Klintworth and Antonetta Stancu.
Wenatchee Man Sentenced to Prison for 20 Years for Making Child Pornography
May 24, 2010 - SPOKANE—James A. McDevitt, United States Attorney for the Eastern District of Washington, announced that Russell Dale Riker, age 51, of Wenatchee, Washington was sentenced yesterday for producing child pornography that he then traded over the Internet.
The investigation centered on Russell Riker when a man in California was arrested and questioned concerning child pornography he had been receiving over the Internet. On August 7, 2008, a federal search warrant was executed at Russell Riker’s home in Wenatchee, Washington. The Federal Bureau of Investigation, the Chelan County Sheriff’s Office and the Washington State Patrol seized a computer and electronic storage devices containing images of child pornography. Two children were identified as the subjects of child pornography that Russell Riker produced. Russell Riker was arrested on August 7, 2008, and has remained in custody ever since. In August 2008, Russell Riker was charged by grand jury indictment for producing child pornography and on February 25, 2010, Russell Riker pleaded guilty to producing child pornography.
Russell Dale Riker was ordered to serve 240 months in prison, followed by a life term of court supervision after he is released from prison. Russell Riker will be required to register as a sex offender for his lifetime.
James A. McDevitt, U.S. Attorney for the Eastern District of Washington, said, “In our society, some like Mr. Riker must be locked up to protect our children. The scars he inflicted will take a lifetime to heal. The national network of dedicated law enforcement officers are commended for their cooperation and communication in this case, which resulted in a quick arrest and protection for the victims.”
This case is being brought as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. The Project Safe Childhood (PSC) Initiative has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims
• Participation of PSC partners in coordinated national initiatives
• Increased federal enforcement in child pornography and enticement cases
• Training of federal, state, and local law enforcement agents
• Community awareness and educational programs
To report these crimes, visit www.cybertipline.com or call the National Center for Missing and Exploited Children’s hotline at 1-800-843-5678. This investigation was conducted by the Federal Bureau of Investigation, the Chelan County Sheriff’s Office and the Washington State Patrol. This case was prosecuted by Stephanie Lister, Assistant U.S. Attorney for the Eastern District of Washington.
The investigation centered on Russell Riker when a man in California was arrested and questioned concerning child pornography he had been receiving over the Internet. On August 7, 2008, a federal search warrant was executed at Russell Riker’s home in Wenatchee, Washington. The Federal Bureau of Investigation, the Chelan County Sheriff’s Office and the Washington State Patrol seized a computer and electronic storage devices containing images of child pornography. Two children were identified as the subjects of child pornography that Russell Riker produced. Russell Riker was arrested on August 7, 2008, and has remained in custody ever since. In August 2008, Russell Riker was charged by grand jury indictment for producing child pornography and on February 25, 2010, Russell Riker pleaded guilty to producing child pornography.
Russell Dale Riker was ordered to serve 240 months in prison, followed by a life term of court supervision after he is released from prison. Russell Riker will be required to register as a sex offender for his lifetime.
James A. McDevitt, U.S. Attorney for the Eastern District of Washington, said, “In our society, some like Mr. Riker must be locked up to protect our children. The scars he inflicted will take a lifetime to heal. The national network of dedicated law enforcement officers are commended for their cooperation and communication in this case, which resulted in a quick arrest and protection for the victims.”
This case is being brought as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. The Project Safe Childhood (PSC) Initiative has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims
• Participation of PSC partners in coordinated national initiatives
• Increased federal enforcement in child pornography and enticement cases
• Training of federal, state, and local law enforcement agents
• Community awareness and educational programs
To report these crimes, visit www.cybertipline.com or call the National Center for Missing and Exploited Children’s hotline at 1-800-843-5678. This investigation was conducted by the Federal Bureau of Investigation, the Chelan County Sheriff’s Office and the Washington State Patrol. This case was prosecuted by Stephanie Lister, Assistant U.S. Attorney for the Eastern District of Washington.
Former Hedge Fund Manager Sentenced in Manhattan Federal Court to 27 Months in Prison in Galleon Insider Trading Case
May 24, 2010 - PREET BHARARA, the United States Attorney for the Southern District of New York, announced that MARK KURLAND, a former hedge fund manager and executive at Bear Stearns Asset Management, was sentenced today in Manhattan federal court by United States District Judge VICTOR MARRERO to 27 months in prison for his participation in the largest hedge fund insider trading case in history.
KURLAND, 61, of Mount Kisco, New York, was a Senior Managing Director at New Castle Partners ("New Castle"), which formerly operated as an equity hedge fund at Bear Stearns Asset Management and then JPMorgan Chase. On January 27, 2010, KURLAND pleaded guilty to conspiring to commit insider trading crimes with DANIELLE CHIESI, who formerly worked at New Castle, and who is charged separately in an Indictment with RAJ RAJARATNAM. KURLAND also pleaded guilty to substantive securities fraud.
According to the Information, the criminal Complaint, and statements made during the guilty plea proceeding:
From mid-August 2008 through January 2009, KURLAND and CHIESI participated in a scheme to execute securities transactions based on material, nonpublic information ("Inside Information") pertaining to Advanced Micro Devices, Inc. ("AMD"), Akamai Technologies, Inc. ("Akamai"), and Sun Microsystems Inc. ("Sun"). As part of the conspiracy, CHIESI obtained Inside Information from sources at Akamai and International Business Machines Corp. ("IBM"). CHIESI provided that Inside Information to KURLAND with the understanding that New Castle, at KURLAND's direction, would trade based on it. CHIESI also obtained KURLAND's permission to direct trading at New Castle on the basis of that Inside Information. KURLAND knew that the Inside Information CHIESI obtained from her sources at Akamai and IBM was obtained in breach of fiduciary and other duties of trust and confidence.
During the sentencing proceeding today, Judge MARRERO stated that KURLAND played an "active role" in the "sophisticated" scheme which he called "an egregious example of illegal insider trading by someone who should have known better." Judge MARRERO concluded that, "[KURLAND] built his life off the integrity of the stock markets, and in this Court's view, should have safeguarded those markets."
In addition to his prison term, Judge MARRERO sentenced KURLAND to two years of supervised release and ordered him to pay forfeiture in the amount of $900,000.
United States Attorney PREET BHARARA said: "Executives who manage businesses must lead by example to create a culture of integrity, not corruption, in their workplaces. Mark Kurland admitted to doing just the opposite, deploying one of his employees to obtain inside information so that he could gain an illegal trading edge. Kurland will now have to live with the consequences of his decision. The Southern District of New York, along with our law enforcement partners at the Federal Bureau of Investigation and the United States Securities and Exchange Commission, will continue to aggressively pursue illegal insider traders in order to protect the integrity of our markets."
Mr. BHARARA praised the work of the Federal Bureau of Investigation and thanked the United States Securities and Exchange Commission for its assistance in the investigation. Mr. BHARARA also noted that the investigation is continuing.
Assistant United States Attorneys JONATHAN STREETER and REED BRODSKY and Special Assistant United States Attorney ANDREW MICHAELSON are in charge of the prosecution.
KURLAND, 61, of Mount Kisco, New York, was a Senior Managing Director at New Castle Partners ("New Castle"), which formerly operated as an equity hedge fund at Bear Stearns Asset Management and then JPMorgan Chase. On January 27, 2010, KURLAND pleaded guilty to conspiring to commit insider trading crimes with DANIELLE CHIESI, who formerly worked at New Castle, and who is charged separately in an Indictment with RAJ RAJARATNAM. KURLAND also pleaded guilty to substantive securities fraud.
According to the Information, the criminal Complaint, and statements made during the guilty plea proceeding:
From mid-August 2008 through January 2009, KURLAND and CHIESI participated in a scheme to execute securities transactions based on material, nonpublic information ("Inside Information") pertaining to Advanced Micro Devices, Inc. ("AMD"), Akamai Technologies, Inc. ("Akamai"), and Sun Microsystems Inc. ("Sun"). As part of the conspiracy, CHIESI obtained Inside Information from sources at Akamai and International Business Machines Corp. ("IBM"). CHIESI provided that Inside Information to KURLAND with the understanding that New Castle, at KURLAND's direction, would trade based on it. CHIESI also obtained KURLAND's permission to direct trading at New Castle on the basis of that Inside Information. KURLAND knew that the Inside Information CHIESI obtained from her sources at Akamai and IBM was obtained in breach of fiduciary and other duties of trust and confidence.
During the sentencing proceeding today, Judge MARRERO stated that KURLAND played an "active role" in the "sophisticated" scheme which he called "an egregious example of illegal insider trading by someone who should have known better." Judge MARRERO concluded that, "[KURLAND] built his life off the integrity of the stock markets, and in this Court's view, should have safeguarded those markets."
In addition to his prison term, Judge MARRERO sentenced KURLAND to two years of supervised release and ordered him to pay forfeiture in the amount of $900,000.
United States Attorney PREET BHARARA said: "Executives who manage businesses must lead by example to create a culture of integrity, not corruption, in their workplaces. Mark Kurland admitted to doing just the opposite, deploying one of his employees to obtain inside information so that he could gain an illegal trading edge. Kurland will now have to live with the consequences of his decision. The Southern District of New York, along with our law enforcement partners at the Federal Bureau of Investigation and the United States Securities and Exchange Commission, will continue to aggressively pursue illegal insider traders in order to protect the integrity of our markets."
Mr. BHARARA praised the work of the Federal Bureau of Investigation and thanked the United States Securities and Exchange Commission for its assistance in the investigation. Mr. BHARARA also noted that the investigation is continuing.
Assistant United States Attorneys JONATHAN STREETER and REED BRODSKY and Special Assistant United States Attorney ANDREW MICHAELSON are in charge of the prosecution.
Border Patrol Agents Seize Load of Assault Rifles
Dallas Man Charged with Unlawfully Attempting to Export Firearms
May 24, 2010 - Del Rio, Texas – U.S. Border Patrol agents, stopping to aid a stranded motorist, discovered a hidden cache of assault rifles, Thursday morning.
While conducting patrol duties near La Pryor, agents assigned to the Uvalde Border Patrol Station encountered a pickup truck stopped on the side of the road due to mechanical problems. Agents became suspicious after observing that the truck had sustained substantial damage, and the two occupants of the vehicle made conflicting statements.
A Border Patrol canine alerted to the rear of the pickup, leading agents to discover the weapons hidden in the truck.
The vehicle was transported to the Uvalde Border Patrol Station for intensive inspection. Agents recovered a total of 59 assault rifles and 49 high-capacity magazines from the pickup.
Agents from U.S. Immigration and Customs Enforcement and the Bureau of Alcohol, Tobacco, Firearms and Explosives responded to the Uvalde Station to launch an investigation. U.S. Customs and Border Protection deployed technical assistance for further inspection of the vehicle.
The driver of the pickup, Cristobal Riojas, 29, of Dallas, was arrested and charged by criminal complaint with unlawfully attempting to export firearms. Riojas appeared in federal court, in Del Rio, this morning and was ordered detained pending a detention hearing Wednesday before U.S. Magistrate Judge Victor R. Garcia. If convicted, Riojas faces up to 10 years in federal prison and a maximum fine of $250,000.
ICE is leading the investigation in coordination with ATF and the Zavala County Sheriff’s Office.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
May 24, 2010 - Del Rio, Texas – U.S. Border Patrol agents, stopping to aid a stranded motorist, discovered a hidden cache of assault rifles, Thursday morning.
While conducting patrol duties near La Pryor, agents assigned to the Uvalde Border Patrol Station encountered a pickup truck stopped on the side of the road due to mechanical problems. Agents became suspicious after observing that the truck had sustained substantial damage, and the two occupants of the vehicle made conflicting statements.
A Border Patrol canine alerted to the rear of the pickup, leading agents to discover the weapons hidden in the truck.
The vehicle was transported to the Uvalde Border Patrol Station for intensive inspection. Agents recovered a total of 59 assault rifles and 49 high-capacity magazines from the pickup.
Agents from U.S. Immigration and Customs Enforcement and the Bureau of Alcohol, Tobacco, Firearms and Explosives responded to the Uvalde Station to launch an investigation. U.S. Customs and Border Protection deployed technical assistance for further inspection of the vehicle.
The driver of the pickup, Cristobal Riojas, 29, of Dallas, was arrested and charged by criminal complaint with unlawfully attempting to export firearms. Riojas appeared in federal court, in Del Rio, this morning and was ordered detained pending a detention hearing Wednesday before U.S. Magistrate Judge Victor R. Garcia. If convicted, Riojas faces up to 10 years in federal prison and a maximum fine of $250,000.
ICE is leading the investigation in coordination with ATF and the Zavala County Sheriff’s Office.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
CBP Officers Seize $22,154 at Douglas Port of Entry
May 24, 2010 - Douglas, Ariz. - U.S. Customs and Border Protection officers stopped an illegal exportation of currency when officers conducting southbound operations, searched a man and found that he was attempting to conceal $22,154 in undeclared currency on his person.
On May 22 at a little past 8 p.m. CBP officers were screening pedestrians going into Mexico as part of a southbound operation. The CBP officers selected a man carrying a red bag for inspection. CBP officers discovered that the man was attempting to smuggle $22,154 out of the United States by concealing the money on his person.
CBP officers seized the undeclared currency. The man was turned over to the custody of Immigration and Customs Enforcement for further investigation and prosecution.
On May 22 at a little past 8 p.m. CBP officers were screening pedestrians going into Mexico as part of a southbound operation. The CBP officers selected a man carrying a red bag for inspection. CBP officers discovered that the man was attempting to smuggle $22,154 out of the United States by concealing the money on his person.
CBP officers seized the undeclared currency. The man was turned over to the custody of Immigration and Customs Enforcement for further investigation and prosecution.
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