LAREDO, TX—A superseding indictment accusing Orlando Jesus Hale, aka Chacho, 27, of Laredo, of mail and wire fraud arising from an alleged auto theft insurance fraud scheme in addition to the previous charges of conspiracy to possess with intent to distribute cocaine and using a firearm in furtherance of that drug offense has been unsealed, United States Attorney José Angel Moreno announced today.
The superseding indictment returned under seal on Tuesday, July 20, 2010, was unsealed yesterday following Hale’s arrest. The new indictment adds four new counts of mail and wire fraud to the original indictment returned in April 2010. Hale, who pleaded not guilty to the new charges, has been ordered released on the same conditions originally imposed in April to include electronic monitoring.
Hale was originally charged with conspiracy to possess with intent to distribute cocaine between Oct. 15, 2008, to Nov. 30, 2008, and using and carrying a firearm during and in relation to a drug trafficking crime and possessing the firearm in furtherance of the drug trafficking crime between Nov. 7 to Nov. 25, 2008.
The new charges allege that between May 2008 and February 2009, Hale devised a scheme to defraud insurance companies to obtain money and property by assisting in the theft and sale of vehicles from complicit owners. According to allegations in the indictment, Hale participated in the taking of vehicles from the United States which were driven to Mexico and sold and transferred to others. Hale was to, in turn, allegedly receive money from the persons in Mexico and elsewhere, who had possession of the vehicles and driven them to Mexico. The taking of the vehicles was pre-arranged with the cooperation and consent of the owners of the vehicles who had either fallen behind in payments or no longer wanted to pay on the loan on the vehicles. The owner would falsely report the vehicle stolen to Hale or to another Laredo police officer recruited and paid by Hale to generate an official report of the theft of the vehicle. The owner would then submit the false report of theft to their respective auto insurance companies. The insurance companies, relying on the false reports, would satisfy the claim by sending checks via the U.S. Mail to the insured owners or via wire transfer to satisfy expenses incurred by the owners. The three mail fraud charges and one wire fraud charge arise from the alleged theft of two vehicles in October 2008 and December 2008 resulting in the payment of thousands of dollars in insurance proceeds to pay for the purported loss of the vehicles and expenses allegedly incurred as a result of the thefts.
Each of the four new charges of mail and wire fraud carries a maximum term of imprisonment of 20 years upon conviction. The drug conspiracy count carries a mandatory minimum sentence of 10 years' imprisonment and a maximum of life imprisonment along with a $4 million fine upon conviction. The firearms charge carries a mandatory minimum sentence of five years' imprisonment upon conviction, which must be served consecutive or upon completion of any term of imprisonment imposed for the underlying drug offense as well as a $250,000 fine.
The investigation leading to the charges was conducted by the FBI, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration Customs Enforcement and Customs Border Protection, with the assistance and cooperation of the Laredo Police Department. Assistant United States Attorney Roberto F. Ramirez and James McAlister are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
Wednesday, November 30, 2011
Monday, November 28, 2011
Dallas Man Sentenced to More Than 14 Years in Federal Prison on Cocaine and Firearm Convictions
DALLAS—Jose Miguel Estevane, 26, of Dallas, was sentenced yesterday afternoon by U.S. District Judge Jorge A. Solis to a total of 170 months in federal prison, without parole, on cocaine and firearm convictions, announced U.S. Attorney James T. Jacks of the Northern District of Texas.
Estevane pleaded guilty in March 2010 to one count of possession with the intent to distribute cocaine and one count of carrying a firearm during and relation to a drug trafficking crime. Estevane has been in custody since his arrest in December 2009 by special agents with the FBI on charges outlined in a related federal criminal complaint.
According to documents filed in the case, on December 9, 2009, Estevane agreed to sell five kilograms of cocaine to a confidential informant, working with the FBI, for $125,000. When the FBI executed a search warrant at Estevane’s residence on Fernwood Drive in Dallas that day, they discovered approximately nine kilograms of cocaine on a table, in plain view. In addition, his co-defendant, Alex Noel Mendoza-Cano, 34, was at the residence guarding the drugs. This amount of cocaine is consistent with bulk distribution, not personal use.
Mendoza-Cana pleaded guilty in March 2010 to one count of possession with intent to distribute cocaine and faces a minimum statutory sentence of not less than 10 years or more than life in prison and a $4 million fine. He is scheduled to be sentenced by Judge Solis on September 8, 2010.
Estevane had a .40 caliber pistol on his person when he was arrested, and admitted that he carried the pistol to protect his interests in the commission of the drug trafficking crime.
The case was investigated by the FBI. Assistant U.S. Attorney Gary Tromblay is in charge of the prosecution.
Estevane pleaded guilty in March 2010 to one count of possession with the intent to distribute cocaine and one count of carrying a firearm during and relation to a drug trafficking crime. Estevane has been in custody since his arrest in December 2009 by special agents with the FBI on charges outlined in a related federal criminal complaint.
According to documents filed in the case, on December 9, 2009, Estevane agreed to sell five kilograms of cocaine to a confidential informant, working with the FBI, for $125,000. When the FBI executed a search warrant at Estevane’s residence on Fernwood Drive in Dallas that day, they discovered approximately nine kilograms of cocaine on a table, in plain view. In addition, his co-defendant, Alex Noel Mendoza-Cano, 34, was at the residence guarding the drugs. This amount of cocaine is consistent with bulk distribution, not personal use.
Mendoza-Cana pleaded guilty in March 2010 to one count of possession with intent to distribute cocaine and faces a minimum statutory sentence of not less than 10 years or more than life in prison and a $4 million fine. He is scheduled to be sentenced by Judge Solis on September 8, 2010.
Estevane had a .40 caliber pistol on his person when he was arrested, and admitted that he carried the pistol to protect his interests in the commission of the drug trafficking crime.
The case was investigated by the FBI. Assistant U.S. Attorney Gary Tromblay is in charge of the prosecution.
Friday, November 25, 2011
Former Law Enforcement Officer Pleads Guilty to Mail Fraud
TRENTON, NJ—Michael Palermo, 51, of Jackson Township, New Jersey, pleaded guilty today to committing mail fraud in connection with a civil lawsuit that he instituted against a contracting company, its principal, and others who constructed and sold him a house in 2006, United States Attorney Paul J. Fishman announced.
Palermo, a former Task Force Officer with the Federal Bureau of Investigation, pleaded guilty to an Information charging him with one count of mail fraud before United States District Judge Peter G. Sheridan in Trenton federal court. Palermo was initially charged with the fraud in a criminal Complaint on October 8, 2009. Judge Sheridan allowed Palermo to remain on $50,000 bail pending his sentencing, scheduled for October 29, 2010.
According to documents filed in this case and statements made in court:
Palermo was an officer with the Port Authority Police Department (PAPD) for over 16 years and was detailed to work with the FBI as a Task Force Officer on violent crime investigations for the last 11 years.
Palermo admitted that, from February 2007 to January 2009, he perpetrated a scheme to defraud the adverse parties in the civil lawsuit by misrepresenting the cost to clean up water damage in the basement of his home. To further the scheme, Palermo enlisted an individual serving as cooperating witness in cases with which he was involved in an official capacity. Palermo admitted he asked this individual to create a false bill indicating Palermo had paid him $10,000 for repairs, which Palermo later provided in civil discovery to the adverse parties. Palermo never actually paid the individual for any services related to the cleanup of his basement. Palermo also admitted that he made false, sworn statements in a relevant deposition and provided false answers to interrogatories in the civil lawsuit, including that he paid $10,000 for the repairs, and directed his attorneys to mail those answers to the adverse parties.
The mail fraud charge to which Palermo pleaded guilty carries a maximum statutory penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, New Jersey, with the investigation leading to today’s plea. Fishman also thanked Department of Justice Office of the Inspector General, under the direction of Special Agent in Charge James. E. Tomlinson, and the PAPD, under the direction of Superintendent Michael Fedorko, for their vital roles in the investigation.
This case is being prosecuted by Assistant U.S. Attorney Eric T. Kanefsky of the U.S. Attorney’s Office Special Prosecutions Division.
Palermo, a former Task Force Officer with the Federal Bureau of Investigation, pleaded guilty to an Information charging him with one count of mail fraud before United States District Judge Peter G. Sheridan in Trenton federal court. Palermo was initially charged with the fraud in a criminal Complaint on October 8, 2009. Judge Sheridan allowed Palermo to remain on $50,000 bail pending his sentencing, scheduled for October 29, 2010.
According to documents filed in this case and statements made in court:
Palermo was an officer with the Port Authority Police Department (PAPD) for over 16 years and was detailed to work with the FBI as a Task Force Officer on violent crime investigations for the last 11 years.
Palermo admitted that, from February 2007 to January 2009, he perpetrated a scheme to defraud the adverse parties in the civil lawsuit by misrepresenting the cost to clean up water damage in the basement of his home. To further the scheme, Palermo enlisted an individual serving as cooperating witness in cases with which he was involved in an official capacity. Palermo admitted he asked this individual to create a false bill indicating Palermo had paid him $10,000 for repairs, which Palermo later provided in civil discovery to the adverse parties. Palermo never actually paid the individual for any services related to the cleanup of his basement. Palermo also admitted that he made false, sworn statements in a relevant deposition and provided false answers to interrogatories in the civil lawsuit, including that he paid $10,000 for the repairs, and directed his attorneys to mail those answers to the adverse parties.
The mail fraud charge to which Palermo pleaded guilty carries a maximum statutory penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, New Jersey, with the investigation leading to today’s plea. Fishman also thanked Department of Justice Office of the Inspector General, under the direction of Special Agent in Charge James. E. Tomlinson, and the PAPD, under the direction of Superintendent Michael Fedorko, for their vital roles in the investigation.
This case is being prosecuted by Assistant U.S. Attorney Eric T. Kanefsky of the U.S. Attorney’s Office Special Prosecutions Division.
Monday, November 21, 2011
Kidnappers of 7-Month-Old Indicted in Federal Court
Amber Alert Results in Federal Carjacking and Kidnapping charges
KNOXVILLE, TN—A federal grand jury in Knoxville returned a two-count indictment on July 20, 2010, against David Jackson, 35, of Miami, Florida, Ashlea Melynda Laughlin, 21, of Greeneville, Tennessee, and Brooke Lashae Collins Stumbo, 21, of Afton, Tennessee. Jackson, Laughlin, and Stumbo were arrested in Miami, Florida, on July 13, 2010, after removing a 7-month-old from the custody of his mother and taking her car from Greeneville, Tennessee. All three defendants have remained in federal custody since their arrests.
The indictment alleges that on July 11, 2010, Jackson took the car of Anne Boyd with the intent to cause her serious bodily injury or death, and Laughlin and Stumbo took the 7-month-old from his mother, Anne Boyd.
If convicted, Jackson faces a term of 15 years in prison, a $250,000 fine, three years on supervised release, and a $100 special assessment. If convicted, Laughlin and Stumbo face a term of life in prison, a $250,000 fine, a minimum of five years and a maximum of life on supervised release, and a $100 special assessment.
Gregg L. Sullivan, Acting United States Attorney, attributed the safe return of the baby and the prompt charges to the quick response of local, state, and federal law enforcement authorities, the National Center for Missing and Exploited Children, and the public who participated in the nationwide Amber Alert.
This indictment is the result of an investigation by the Greene County Sheriff’s Office, Tennessee Bureau of Investigation, Federal Bureau of Investigation, and Miami Safe Streets Task Force. Assistant U.S. Attorney Helen Smith will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
KNOXVILLE, TN—A federal grand jury in Knoxville returned a two-count indictment on July 20, 2010, against David Jackson, 35, of Miami, Florida, Ashlea Melynda Laughlin, 21, of Greeneville, Tennessee, and Brooke Lashae Collins Stumbo, 21, of Afton, Tennessee. Jackson, Laughlin, and Stumbo were arrested in Miami, Florida, on July 13, 2010, after removing a 7-month-old from the custody of his mother and taking her car from Greeneville, Tennessee. All three defendants have remained in federal custody since their arrests.
The indictment alleges that on July 11, 2010, Jackson took the car of Anne Boyd with the intent to cause her serious bodily injury or death, and Laughlin and Stumbo took the 7-month-old from his mother, Anne Boyd.
If convicted, Jackson faces a term of 15 years in prison, a $250,000 fine, three years on supervised release, and a $100 special assessment. If convicted, Laughlin and Stumbo face a term of life in prison, a $250,000 fine, a minimum of five years and a maximum of life on supervised release, and a $100 special assessment.
Gregg L. Sullivan, Acting United States Attorney, attributed the safe return of the baby and the prompt charges to the quick response of local, state, and federal law enforcement authorities, the National Center for Missing and Exploited Children, and the public who participated in the nationwide Amber Alert.
This indictment is the result of an investigation by the Greene County Sheriff’s Office, Tennessee Bureau of Investigation, Federal Bureau of Investigation, and Miami Safe Streets Task Force. Assistant U.S. Attorney Helen Smith will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Thursday, November 17, 2011
Bountiful Man Pleads Guilty to Wire Fraud in Connection with Scheme to Get Kickback from Investment Manager
SALT LAKE CITY—Cameron Hayes Cox, age 28, of Bountiful, pled guilty in federal court Tuesday morning to a charge of wire fraud in connection with a scheme to defraud the Utah Retirement Systems (URS) by soliciting a side deal from an investment manager. Cox is a former employee of URS.
Cox was charged in a one-count Felony Information filed in federal court in Salt Lake City in June. At a sentencing hearing Tuesday afternoon, U.S. District Judge Dale Kimball sentenced Cox to a year in federal prison. Judge Kimball also ordered him to serve 36 months of supervised release when he finishes his prison sentence.
Cox was employed by URS as an investment analyst from around January 2008 to around January 2010. URS is an independent agency established by the State of Utah and is responsible for the operation of various funds maintained as retirement accounts for active and retired state public employees.
According to court documents, one aspect of URS’ operations is the selection of third-party investment companies to serve as investment managers for portions of URS’ portfolio. The process of identifying a potential third-party manager, reviewing information, conducting due diligence, negotiating terms, and entering into a formal agreement typically occurs over a period of several months and involves a team of investment analysts, legal counsel, and others. The final step in this process involves a URS committee reviewing a proposed agreement for final approval.
According to the Felony Information, beginning in the spring of 2009, URS was introduced to representatives of a hedge fund based in London. A series of negotiations started between the parties concerning a potential agreement. Cox was a member of the URS team responsible for collecting, reviewing, and analyzing information provided by the company, negotiating terms, and presenting a proposed agreement for consideration by URS. Court records show that negotiations progressed to a point where URS intended to consider a proposed agreement between the parties around November 2009. The proposed agreement, if approved by URS, contemplated the hedge fund would manage approximately $50 million of URS’ portfolio.
Cox admitted in his plea agreement with federal prosecutors that beginning in November 2009 and continuing through January 2010, he communicated with an individual in London using an anonymous identity to negotiate a “side deal” whereby he would be paid $150,000 by the investment manager to ensure URS approved the proposed agreement between the parties. The individual Cox was communicating with was the point person involved in negotiations with URS.
Under the side deal, the company would agree to pay Cox money to facilitate URS’ approval of the company as a third-party fund manager. In truth and in fact, Cox did not have the authority or influence over URS to honor the side deal. Cox concealed all of his communication with the company from URS. Once propositioned, the London investment manager notified URS who notified federal law enforcement officials. Thereafter, hedge fund officials cooperated with the FBI’s efforts to conduct a sting operation.
URS officials say that no retirement trust funds were ever at risk during the course of Cox’s conduct and that he did not have the ability to take trust funds. Cox also did not have the authority or influence to make the decision on whether to hire an investment manager and the processes in place, which were followed in this situation, would not have allowed the improper hiring of an investment manager.
Law enforcement authorities believe Cox acted alone in this case and that no other URS employees were involved. URS worked closely with the FBI in the investigation of this case.
Federal prosecutors said the investment manager and hedge fund, which are not identified in court records, reported the conduct and cooperated fully in the investigation.
“This prosecution underscores our office’s commitment to holding accountable those who abuse their positions of trust. It also demonstrates the strength of effective coordination between potential victims and law enforcement. URS’s and the London hedge fund’s timely and responsible reporting of unlawful conduct, coupled with the FBI’s swift and thorough investigation, provided the foundation to bring a misguided junior investment advisor to justice,” Acting U.S. Attorney Carlie Christensen said today.
James S. McTighe, Special Agent in Charge of the FBI in Salt Lake City, said, “For a public employee to attempt to negotiate this type of secret deal for personal gain is not only a violation of federal law; it's a violation of the public’s trust. This case is an example of why public corruption is the FBI’s top criminal priority. Such illegal activity strikes at the heart of fair competition in the public sector. A public employee who promises contracts or business in exchange for a personal payout will find themselves in trouble with the FBI.”
Cox was charged in a one-count Felony Information filed in federal court in Salt Lake City in June. At a sentencing hearing Tuesday afternoon, U.S. District Judge Dale Kimball sentenced Cox to a year in federal prison. Judge Kimball also ordered him to serve 36 months of supervised release when he finishes his prison sentence.
Cox was employed by URS as an investment analyst from around January 2008 to around January 2010. URS is an independent agency established by the State of Utah and is responsible for the operation of various funds maintained as retirement accounts for active and retired state public employees.
According to court documents, one aspect of URS’ operations is the selection of third-party investment companies to serve as investment managers for portions of URS’ portfolio. The process of identifying a potential third-party manager, reviewing information, conducting due diligence, negotiating terms, and entering into a formal agreement typically occurs over a period of several months and involves a team of investment analysts, legal counsel, and others. The final step in this process involves a URS committee reviewing a proposed agreement for final approval.
According to the Felony Information, beginning in the spring of 2009, URS was introduced to representatives of a hedge fund based in London. A series of negotiations started between the parties concerning a potential agreement. Cox was a member of the URS team responsible for collecting, reviewing, and analyzing information provided by the company, negotiating terms, and presenting a proposed agreement for consideration by URS. Court records show that negotiations progressed to a point where URS intended to consider a proposed agreement between the parties around November 2009. The proposed agreement, if approved by URS, contemplated the hedge fund would manage approximately $50 million of URS’ portfolio.
Cox admitted in his plea agreement with federal prosecutors that beginning in November 2009 and continuing through January 2010, he communicated with an individual in London using an anonymous identity to negotiate a “side deal” whereby he would be paid $150,000 by the investment manager to ensure URS approved the proposed agreement between the parties. The individual Cox was communicating with was the point person involved in negotiations with URS.
Under the side deal, the company would agree to pay Cox money to facilitate URS’ approval of the company as a third-party fund manager. In truth and in fact, Cox did not have the authority or influence over URS to honor the side deal. Cox concealed all of his communication with the company from URS. Once propositioned, the London investment manager notified URS who notified federal law enforcement officials. Thereafter, hedge fund officials cooperated with the FBI’s efforts to conduct a sting operation.
URS officials say that no retirement trust funds were ever at risk during the course of Cox’s conduct and that he did not have the ability to take trust funds. Cox also did not have the authority or influence to make the decision on whether to hire an investment manager and the processes in place, which were followed in this situation, would not have allowed the improper hiring of an investment manager.
Law enforcement authorities believe Cox acted alone in this case and that no other URS employees were involved. URS worked closely with the FBI in the investigation of this case.
Federal prosecutors said the investment manager and hedge fund, which are not identified in court records, reported the conduct and cooperated fully in the investigation.
“This prosecution underscores our office’s commitment to holding accountable those who abuse their positions of trust. It also demonstrates the strength of effective coordination between potential victims and law enforcement. URS’s and the London hedge fund’s timely and responsible reporting of unlawful conduct, coupled with the FBI’s swift and thorough investigation, provided the foundation to bring a misguided junior investment advisor to justice,” Acting U.S. Attorney Carlie Christensen said today.
James S. McTighe, Special Agent in Charge of the FBI in Salt Lake City, said, “For a public employee to attempt to negotiate this type of secret deal for personal gain is not only a violation of federal law; it's a violation of the public’s trust. This case is an example of why public corruption is the FBI’s top criminal priority. Such illegal activity strikes at the heart of fair competition in the public sector. A public employee who promises contracts or business in exchange for a personal payout will find themselves in trouble with the FBI.”
Monday, November 14, 2011
Denver Man Faces Federal Charges in Connection with United Airline Flight Diverted to Salt Lake City
SALT LAKE CITY—A federal grand jury returned a one-count indictment Wednesday afternoon charging Andrew Escobar, age 40, of Denver, with communicating false information endangering aircraft safety.
The charges stem from a Feb. 18, 2010, incident involving a United Airlines flight from Denver to San Francisco. The plane was diverted to Salt Lake City after a flight attendant on the flight discovered a note taped to the beverage service cart. Based on the note, the pilot decided to land the plane in Salt Lake City. The FBI and members of its Joint Terrorism Task Force responded to the airport to investigate.
The indictment alleges Escobar willfully communicated information, knowing it to be false, and under circumstances in which it may reasonably be believed, thereby endangering the safety of an aircraft in flight.
“An aircraft with more than 160 passengers and crew members was diverted to Salt Lake City where it undertook an emergency landing. The flight crew was subjected to considerable stress and the passengers feared for their personal safety, had their travel plans disrupted, and were inconvenienced by the delays associated with the necessary security precautions taken in Salt Lake City. Given the circumstances of the case, I believe a federal prosecution is appropriate,” Acting U.S. Attorney Carlie Christensen said today.
The maximum potential penalty for the charge is up to 20 years in federal prison and a $250,000 fine. A summons will be issued to Escobar to appear on the charges. An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The charges stem from a Feb. 18, 2010, incident involving a United Airlines flight from Denver to San Francisco. The plane was diverted to Salt Lake City after a flight attendant on the flight discovered a note taped to the beverage service cart. Based on the note, the pilot decided to land the plane in Salt Lake City. The FBI and members of its Joint Terrorism Task Force responded to the airport to investigate.
The indictment alleges Escobar willfully communicated information, knowing it to be false, and under circumstances in which it may reasonably be believed, thereby endangering the safety of an aircraft in flight.
“An aircraft with more than 160 passengers and crew members was diverted to Salt Lake City where it undertook an emergency landing. The flight crew was subjected to considerable stress and the passengers feared for their personal safety, had their travel plans disrupted, and were inconvenienced by the delays associated with the necessary security precautions taken in Salt Lake City. Given the circumstances of the case, I believe a federal prosecution is appropriate,” Acting U.S. Attorney Carlie Christensen said today.
The maximum potential penalty for the charge is up to 20 years in federal prison and a $250,000 fine. A summons will be issued to Escobar to appear on the charges. An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Friday, November 11, 2011
Texas Man Pleads Guilty in Murder-for-Hire of Troy Couple
A Texas man pleaded guilty today in the murder-for-hire of a Troy, Michigan couple, announced United States Attorney Barbara L. McQuade.
Ms. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge, Federal Bureau of Investigation, and Special Agent in Charge Brian Moskowitz, Immigrations and Customs Enforcement, Detroit Division.
Pleading guilty before Chief United States District Judge Gerald E. Rosen was Douglas Tobar, age 42, formerly of Houston, Texas.
According to the information presented to the court at the time of the guilty plea, TOBAR and co-defendant Narayan Thadani arranged for Miguel Servando and Nelson Mendoza to travel from Texas to Michigan with the intent to murder Aasha and Brij Chhadbra of Troy, Michigan. Servando and Mendoza were arrested by the Taylor Police Department after a traffic stop while traveling southbound on I-75. The traffic stop led to a search of the vehicle which revealed, among other things, a diagram and address of a home in Troy, Michigan, and a copy of a passport picture of a woman. The Taylor officer requested that the Troy Police Department conduct a welfare check on the home. The Troy Police Department’s welfare check resulted in the discovery of the two victims, Brij and Asha Chhabra, who had been killed.
Co-defendant THADANI pleaded guilty last month and will be sentenced to life in prison without the possibility of parole.
United States Attorney Barbara L. McQuade stated, “This case is a great example of the success that can be achieved when law enforcement agencies work together. Through collaboration, we are able to bring violent criminals to justice."
The penalty for the charged offense is death or life imprisonment, however, under the terms of the plea agreement the government is recommending a sentence of 20 years in prison based on TOBAR’S cooperation in this case. Thadani and Tobar are currently in the custody of the United States Marshals Service. Servando and Mendoza were charged with first degree murder by the Oakland County Prosecutor's office. Servando pleaded guilty to state and federal charges, and is currently serving a life sentence in federal prison. Mendoza was found guilty after a trial on state charges, and is currently serving a life sentence in state custody.
United States Attorney Barbara McQuade praised the and hard work of the Taylor Police Department, the Troy Police Department, the Oakland County Prosecutor’s Office, the Federal Bureau of Investigation, and Immigration Customs Enforcement for conducting an aggressive, thorough, and effective joint investigation. This multi-jurisdictional investigation serves as another example of how the public can greatly benefit from the cooperation of federal and local law enforcement agencies.
Assistant United States Attorneys Matthew Roth and Jennifer Gorland are handling the prosecution of this case.
Ms. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge, Federal Bureau of Investigation, and Special Agent in Charge Brian Moskowitz, Immigrations and Customs Enforcement, Detroit Division.
Pleading guilty before Chief United States District Judge Gerald E. Rosen was Douglas Tobar, age 42, formerly of Houston, Texas.
According to the information presented to the court at the time of the guilty plea, TOBAR and co-defendant Narayan Thadani arranged for Miguel Servando and Nelson Mendoza to travel from Texas to Michigan with the intent to murder Aasha and Brij Chhadbra of Troy, Michigan. Servando and Mendoza were arrested by the Taylor Police Department after a traffic stop while traveling southbound on I-75. The traffic stop led to a search of the vehicle which revealed, among other things, a diagram and address of a home in Troy, Michigan, and a copy of a passport picture of a woman. The Taylor officer requested that the Troy Police Department conduct a welfare check on the home. The Troy Police Department’s welfare check resulted in the discovery of the two victims, Brij and Asha Chhabra, who had been killed.
Co-defendant THADANI pleaded guilty last month and will be sentenced to life in prison without the possibility of parole.
United States Attorney Barbara L. McQuade stated, “This case is a great example of the success that can be achieved when law enforcement agencies work together. Through collaboration, we are able to bring violent criminals to justice."
The penalty for the charged offense is death or life imprisonment, however, under the terms of the plea agreement the government is recommending a sentence of 20 years in prison based on TOBAR’S cooperation in this case. Thadani and Tobar are currently in the custody of the United States Marshals Service. Servando and Mendoza were charged with first degree murder by the Oakland County Prosecutor's office. Servando pleaded guilty to state and federal charges, and is currently serving a life sentence in federal prison. Mendoza was found guilty after a trial on state charges, and is currently serving a life sentence in state custody.
United States Attorney Barbara McQuade praised the and hard work of the Taylor Police Department, the Troy Police Department, the Oakland County Prosecutor’s Office, the Federal Bureau of Investigation, and Immigration Customs Enforcement for conducting an aggressive, thorough, and effective joint investigation. This multi-jurisdictional investigation serves as another example of how the public can greatly benefit from the cooperation of federal and local law enforcement agencies.
Assistant United States Attorneys Matthew Roth and Jennifer Gorland are handling the prosecution of this case.
Monday, November 7, 2011
Former State Representative Convicted for Insurance Fraud
COLUMBIA, SC—United States Attorney William N. Nettles stated today that Robert A. Kohn, age 65, of Charleston, was convicted of mail fraud, a violation of 18 U.S.C. § 1341, after a two-and-a-half day trial. Kohn is a former state representative. The jury deliberated a little over an hour Wednesday before reaching its verdict. Judge P. Michael Duffy of Charleston presided over the case and will impose the sentence on a date to be determined.
According to evidence presented during the trial, Kohn worked as an insurance consultant, periodically assisting companies with worker’s compensation matters. Among those companies was Knight’s Services, a Charleston-based company overseen by Roy Knight. Knight’s Services performed pipe fitting and welding jobs at Detyens Shipyards. Between 2002 and 2004, Kohn helped prepare Knight’s Services’ annual insurance submissions to Companion Property & Casualty Insurance Company. The premiums charged to Knight’s Services for this coverage were based on the payroll for the company. Kohn and Roy Knight, who has previously pled guilty to related charges, fabricated Knight’s Services’ payroll figures in order to obtain lower premiums for the company. Over the three-year time span, Kohn saved Knight approximately $370,000 in premiums. The fraud was discovered after a Knight’s Services employee, Matthew Williamson, died performing work at the shipyard. The subsequent worker’s compensation claim and scrutiny of the policy led to criminal charges for Kohn and Knight.
The maximum penalty Robert A. Kohn could receive is a fine of $250,000 and/or imprisonment of 20 years. Mr. Nettles said the case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Winston D. Holliday, Jr., and Peter T. Phillips.
According to evidence presented during the trial, Kohn worked as an insurance consultant, periodically assisting companies with worker’s compensation matters. Among those companies was Knight’s Services, a Charleston-based company overseen by Roy Knight. Knight’s Services performed pipe fitting and welding jobs at Detyens Shipyards. Between 2002 and 2004, Kohn helped prepare Knight’s Services’ annual insurance submissions to Companion Property & Casualty Insurance Company. The premiums charged to Knight’s Services for this coverage were based on the payroll for the company. Kohn and Roy Knight, who has previously pled guilty to related charges, fabricated Knight’s Services’ payroll figures in order to obtain lower premiums for the company. Over the three-year time span, Kohn saved Knight approximately $370,000 in premiums. The fraud was discovered after a Knight’s Services employee, Matthew Williamson, died performing work at the shipyard. The subsequent worker’s compensation claim and scrutiny of the policy led to criminal charges for Kohn and Knight.
The maximum penalty Robert A. Kohn could receive is a fine of $250,000 and/or imprisonment of 20 years. Mr. Nettles said the case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Winston D. Holliday, Jr., and Peter T. Phillips.
Two Members of Drug Ring Conspiracy Plead Guilty
Two men connected to a St. Paul drug ring responsible for distributing methamphetamine and other controlled substances have pleaded guilty to the crime in federal court in Minneapolis. Appearing before United States District Court Chief Judge Michael J. Davis late yesterday afternoon, Kou Lee, age 30, of South St. Paul, and Sherman Lee, age 31, of St. Paul, pled guilty to one count of conspiracy to distribute methamphetamine. Sherman Lee also pled guilty to one count of brandishing a firearm during a drug-trafficking crime. The men, along with nine co-defendants, were charged in a superseding indictment on February 10, 2010.
In their plea agreements, the Lees admitted that from May 1, 2009, through January 12, 2010, they conspired to distribute between 500 and 1,500 grams of methamphetamine. In addition, Sherman Lee admitted that during that time period, on at least one occasion, he possessed and brandished a Cobra, Model FS380 handgun while threatening another person during a dispute over unpaid drugs.
This case resulted from an investigation that included a controlled buy of methamphetamine from Kou Lee on November 20, 2009, and from Sherman Lee on December 15, 2009. The November transaction occurred in a St. Paul apartment, and the December transaction took place in an Eagan parking lot.
Several co-defendants in this case already have pleaded guilty to one count of conspiracy. Patrick Michael Grovum, unknown age and address; Zane Youalo Vang, age 24, of Oakdale, pleaded guilty in June of 2010. Deesa Xiong, age 27, of St. Paul, pleaded guilty in April of 2010. In March of 2010, Jorge Ramirez Hernandez, age 22, of St. Paul and Juan Mendez-Rios, age 32, of Minneapolis, pleaded guilty to the charge. A jury trial is set for July 29, 2010, for the remaining co-defendants.
For their crimes, Kou Lee and Sherman Lee face a potential maximum penalty of life in prison on the conspiracy charge. Sherman Lee also faces a potential maximum penalty of life in prison on the firearm count. Judge Davis will determine their sentences at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney Christian S. Wilton.
In their plea agreements, the Lees admitted that from May 1, 2009, through January 12, 2010, they conspired to distribute between 500 and 1,500 grams of methamphetamine. In addition, Sherman Lee admitted that during that time period, on at least one occasion, he possessed and brandished a Cobra, Model FS380 handgun while threatening another person during a dispute over unpaid drugs.
This case resulted from an investigation that included a controlled buy of methamphetamine from Kou Lee on November 20, 2009, and from Sherman Lee on December 15, 2009. The November transaction occurred in a St. Paul apartment, and the December transaction took place in an Eagan parking lot.
Several co-defendants in this case already have pleaded guilty to one count of conspiracy. Patrick Michael Grovum, unknown age and address; Zane Youalo Vang, age 24, of Oakdale, pleaded guilty in June of 2010. Deesa Xiong, age 27, of St. Paul, pleaded guilty in April of 2010. In March of 2010, Jorge Ramirez Hernandez, age 22, of St. Paul and Juan Mendez-Rios, age 32, of Minneapolis, pleaded guilty to the charge. A jury trial is set for July 29, 2010, for the remaining co-defendants.
For their crimes, Kou Lee and Sherman Lee face a potential maximum penalty of life in prison on the conspiracy charge. Sherman Lee also faces a potential maximum penalty of life in prison on the firearm count. Judge Davis will determine their sentences at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney Christian S. Wilton.
Saturday, November 5, 2011
Moses Lake Collector of Child Pornography Receives Four-Year Prison Term
SPOKANE, WA—Today, James A. McDevitt, United States Attorney for the Eastern District of Washington, announced that Keith Marshel Ivers, age 50, of Moses Lake, Washington, was sentenced to four years in prison for possessing child pornography on his computer.
In November 2007, the Federal Bureau of Investigation located in New York discovered an Internet location sharing child pornography. Further investigation showed the Internet location was originating from Keith Ivers home located in Moses Lake, Washington. In January 2008, a federal search warrant was executed at Keith Ivers’ home in Moses Lake, where over 2,000 images of child pornography were seized in computers and electronic storage devices. In addition to downloading child pornography from the Internet, the investigation showed that Keith Ivers had been sharing his files over the Internet using a file sharing program. Keith Ivers voluntarily surrendered in July 2009, and was released on electronic home confinement. He was ordered to self report to federal prison once one has been assigned for him. In March 2010, he pleaded guilty to possessing child pornography.
Keith Ivers was ordered to serve 48 months in prison, followed by a five-year term of court supervision after he is released from prison. As well, Keith Ivers will be required to register as a sex offender for his lifetime.
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. This case was prosecuted by Stephanie Van Marter, Assistant U.S. Attorney for the Eastern District of Washington.
In November 2007, the Federal Bureau of Investigation located in New York discovered an Internet location sharing child pornography. Further investigation showed the Internet location was originating from Keith Ivers home located in Moses Lake, Washington. In January 2008, a federal search warrant was executed at Keith Ivers’ home in Moses Lake, where over 2,000 images of child pornography were seized in computers and electronic storage devices. In addition to downloading child pornography from the Internet, the investigation showed that Keith Ivers had been sharing his files over the Internet using a file sharing program. Keith Ivers voluntarily surrendered in July 2009, and was released on electronic home confinement. He was ordered to self report to federal prison once one has been assigned for him. In March 2010, he pleaded guilty to possessing child pornography.
Keith Ivers was ordered to serve 48 months in prison, followed by a five-year term of court supervision after he is released from prison. As well, Keith Ivers will be required to register as a sex offender for his lifetime.
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. This case was prosecuted by Stephanie Van Marter, Assistant U.S. Attorney for the Eastern District of Washington.
Thursday, November 3, 2011
Tucson Sector Agents Apprehend Five Suspects with Active Warrants within 24 Hours
Tucson, Ariz. – During a 24 hour period, Border Patrol agents across the Tucson Sector apprehended five illegal aliens with active warrants for arrest; to include three with extraditable felony warrants. The warrants and extensive criminal histories of each individual were revealed using the Integrated Automated Fingerprint Identification System (IAFIS).
On Tuesday, agents assigned to the Douglas Border Patrol Station apprehended an individual with an outstanding felony arrest warrant issued by the New York Police Department for rape and sexual abuse. He is being held for prosecution and will be transferred to the U.S. Marshal’s Office.
Also late Tuesday, Casa Grande agents apprehended an individual in the west desert area with an extraditable warrant out of Navajo County, Ariz., on smuggling charges. He is being held pending extradition.
In two separate incidents early Wednesday, three more individuals with outstanding warrants were apprehended by Casa Grande agents. Agents first apprehended two illegal aliens wanted on drug-related charges; one with a felony warrant out of Henderson, Nev., the other out of Spanish Fork, Utah. Both individuals will be transferred to the Pinal County Sherriff’s Department for extradition.
Less than an hour after identifying the first two individuals, Casa Grande agents identified a third illegal alien with a warrant for “failure to appear” on a hit-and-run charge out of Portland, Ore. The warrant is not extraditable so the subject is being held for processing.
IAFIS technology helps agents quickly identify and classify criminals previously arrested and charged by other law enforcement agencies. In Fiscal Year 2009, the Tucson Sector Border Patrol apprehended more than 241,000 people. From Oct. 1, 2009, to June 30, 2010, Tucson Sector agents apprehended more than 184,000 people attempting to enter the United States illegally. The Border Patrol is committed to working with local, state, federal and tribal law enforcement agencies to reach our shared goal of improving the quality of life in all Arizona communities.
On Tuesday, agents assigned to the Douglas Border Patrol Station apprehended an individual with an outstanding felony arrest warrant issued by the New York Police Department for rape and sexual abuse. He is being held for prosecution and will be transferred to the U.S. Marshal’s Office.
Also late Tuesday, Casa Grande agents apprehended an individual in the west desert area with an extraditable warrant out of Navajo County, Ariz., on smuggling charges. He is being held pending extradition.
In two separate incidents early Wednesday, three more individuals with outstanding warrants were apprehended by Casa Grande agents. Agents first apprehended two illegal aliens wanted on drug-related charges; one with a felony warrant out of Henderson, Nev., the other out of Spanish Fork, Utah. Both individuals will be transferred to the Pinal County Sherriff’s Department for extradition.
Less than an hour after identifying the first two individuals, Casa Grande agents identified a third illegal alien with a warrant for “failure to appear” on a hit-and-run charge out of Portland, Ore. The warrant is not extraditable so the subject is being held for processing.
IAFIS technology helps agents quickly identify and classify criminals previously arrested and charged by other law enforcement agencies. In Fiscal Year 2009, the Tucson Sector Border Patrol apprehended more than 241,000 people. From Oct. 1, 2009, to June 30, 2010, Tucson Sector agents apprehended more than 184,000 people attempting to enter the United States illegally. The Border Patrol is committed to working with local, state, federal and tribal law enforcement agencies to reach our shared goal of improving the quality of life in all Arizona communities.
Tuesday, November 1, 2011
CBP Southbound Inspections Capture Fugitive Wanted in Colorado on Murder Charges
El Paso, Texas - U.S. Customs and Border Protection officers and border patrol agents working at the El Paso port of entry took custody of a man wanted by Lakewood, Colo., police on murder charges. The apprehension was made Tuesday morning at the southbound Stanton Street international crossing.
CBP officers and Border Patrol agents were performing an outbound inspection operation when a Mexico-bound commercial bus arrived at the crossing point. CBP personnel boarded the bus and initiated an inspection of bus passenger and their belongings. They encountered a male subject who claimed to be a U.S. citizen but had no formal documentation to support his claim.
CBP officers utilized their Integrated Automated Fingerprint Identification System (IAFIS) to check the identity of the individual. The query revealed that the person they were checking was 28-year-old Edward Gerald Graham of El Paso, Texas. The query also indicated that Graham had outstanding warrants in Lakewood, Colo., for charges of murder and assault with a deadly weapon. CBP officers arrested Graham and turned him over to the El Paso police department. He was booked into the El Paso County Jail where he is currently detained.
“Our outbound examinations routinely identify people who are wanted by law enforcement,” said William Molaski, U.S. Customs and Border Protection El Paso port director. “Our ability to locate and remove wanted fugitives from the streets of our community helps make El Paso and our nation a safer place to live.”
CBP officers and Border Patrol agents were performing an outbound inspection operation when a Mexico-bound commercial bus arrived at the crossing point. CBP personnel boarded the bus and initiated an inspection of bus passenger and their belongings. They encountered a male subject who claimed to be a U.S. citizen but had no formal documentation to support his claim.
CBP officers utilized their Integrated Automated Fingerprint Identification System (IAFIS) to check the identity of the individual. The query revealed that the person they were checking was 28-year-old Edward Gerald Graham of El Paso, Texas. The query also indicated that Graham had outstanding warrants in Lakewood, Colo., for charges of murder and assault with a deadly weapon. CBP officers arrested Graham and turned him over to the El Paso police department. He was booked into the El Paso County Jail where he is currently detained.
“Our outbound examinations routinely identify people who are wanted by law enforcement,” said William Molaski, U.S. Customs and Border Protection El Paso port director. “Our ability to locate and remove wanted fugitives from the streets of our community helps make El Paso and our nation a safer place to live.”
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