Former U.S. Soldier Charged with Conspiring to Use Destructive Device While Fighting with al Qaeda-Affiliated Group in Syria

ALEXANDRIA, VA—Eric Harroun, 30, of Phoenix, was arrested and charged with conspiring to use a rocket propelled grenade (RPG) while fighting with the al Nusrah Front, an organization commonly referred to as “al Qaeda in Iraq” and designated as a foreign terrorist organization since October 2004.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Harroun, a U.S. citizen who served with the U.S. Army from 2000 to 2003, was charged by criminal complaint with conspiring to use a destructive device outside of the United States, which carries a maximum penalty of life in prison, if convicted. Harroun made his initial appearance today in federal court in Alexandria, Virginia, before U.S. Magistrate Judge Theresa C. Buchanan.
The al Nusrah Front is one of several aliases used by the al Qaeda in Iraq terrorist organization, and since November 2011, the group has claimed responsibility for nearly 600 terrorist attacks in Syria.
According to an affidavit filed in support of the criminal complaint, Harroun allegedly crossed into Syria in January 2013 and fought with members of the al Nusrah Front against the Bashar al Assad regime in Syria. The affidavit alleges that Harroun was trained to use an RPG by members of the terrorist organization and that he fired an RPG and posted online multiple photographs of himself carrying or posing with RPGs and other military weapons. Harroun allegedly participated in attacks led by the al Nusrah Front and was part of an RPG team, for which he carried anti-personnel and anti-armor rockets.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Andrew Peterson, Carter Burwell, and Lynn Haaland are prosecuting the case on behalf of the United States, with assistance from the Justice Department’s National Security Division.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.

Maryland Woman Found Guilty in Mortgage Fraud Scheme That Cost Lenders More Than $900,000

WASHINGTON—LaFrances Dudley O’Neal, 49, of Clinton, Maryland, has been found guilty by a jury for her part in a mortgage fraud scheme that cost lenders more than $900,000.
The verdict was announced today by U.S. Attorney Ronald C. Machen, Jr.; Gary R. Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service; Joseph W. Clarke, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Housing and Urban Development; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and William P. White, Commissioner of the District of Columbia Department of Insurance, Securities and Banking.
O’Neal was found guilty by the jury on March 27, 2013, of four felony charges, including conspiracy and bank fraud, after a two-week trial in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton scheduled sentencing for June 20, 2013.
According to the government’s evidence at trial, O’Neal and others identified District of Columbia area homes and straw buyers to obtain mortgages through false loan applications, forged documents, and fraudulent settlements. Co-conspirators acted as a mortgage broker, title, and escrow agent, and other professionals to assist O’Neal with tricking the mortgage lenders and banks into lending $2.6 million in mortgage loans on the belief that the straw buyers had the means and the willingness to pay the mortgages.
Every one of the mortgages fell into default, and the lenders were forced to foreclosure with an aggregate loss to the lenders in excess of over $900,000.
According to the government’s evidence, the title and escrow companies paid O’Neal from the fraudulently obtained loan proceeds, at times using fraudulent “invoices” that falsely stated that renovation work had recently been completed and that money was due at settlement. As a result of these false invoices and inaccurate settlement statements, title and escrow agents turned over more than $400,000 of fraudulent loan proceeds to O’Neal.
In spite of promising the straw buyers that she would pay the mortgage and in spite of receiving rental income from the D.C. Housing Authority and their client tenants, O’Neal failed to pay the mortgages on all of these properties, and the lenders foreclosed on the houses with the result being the tenants were evicted.
Two other defendants earlier pled guilty to charges related to the scheme and are awaiting sentencing. Donald M. Ramsey, 45, a mortgage broker from Alexandria, Virginia, and Tania Firmani, 46, a title and escrow agent from Chesapeake Beach, Maryland, each pled guilty to a charge of conspiracy to commit bank and mail fraud.
“Mortgage fraud is a significant law enforcement priority for our office that has serious repercussions to our economy beyond the losses suffered by the financial institutions,” said U.S. Attorney Machen. “LaFrances Dudley O’Neal’s scheme not only cost lenders more than $900,000 but also led to foreclosures and evictions. This prosecution shows our resolve to bring to justice those who would seek to commit mortgage fraud for personal gain.”
“Ms. O’Neal took advantage of mortgage lenders and banks by falsely leading them to believe that they were supporting homeownership in the District of Columbia; instead, she bilked them out of hundreds of thousands of dollars,” said Assistant Director in Charge Parlave. “There is no safe harbor for criminals in this business, and the FBI will continue to work with our federal, state, and local partners to eradicate fraud within the real estate and mortgage industries.”
In announcing the verdict, U.S. Attorney Machen, Inspector in Charge Barksdale, Special Agent in Charge Clarke, Assistant Director in Charge Parlave and Commissioner White praised those who worked on the case from the U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development-Office of Inspector General; the FBI’s Washington Field Office; the District of Columbia Department of Insurance, Securities, and Banking; and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Financial Analyst Crystal Boodoo; Paralegal Specialists Donna Galindo, Corrine Laxman, Diane Hayes, Lenisse Edloe, Shanna Hays, Nicole Wattelet; former Paralegal Specialist Sarah Reis; Litigation Services Specialist Kimberly Smith; Law Interns Nicole Audet and Jason Navia; and Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section. Finally, they acknowledged the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.

FBI and San Diego Police Department Seek Public’s Assistance to Identify Comerica Bank Robber

The FBI and San Diego Police Department are seeking the public’s assistance to identify the unknown male who robbed the Comerica Bank located at 2307 Fenton Parkway, Suite C109, San Diego, California, on Tuesday, March 26, 2013.
On Tuesday, March 26, 2013, at approximately 10:15 a.m., the Comerica Bank located at 2307 Fenton Parkway, Suite C109, San Diego, California, was robbed by an unknown male using a demand note. The robber threatened to have a weapon, but no weapon was observed. After receiving a sum of money, the robber exited the bank and was last seen driving away in a white, four-door sedan.
Witnesses describe the robber as follows:

• Sex: Male
• Race: Black
• Age: Approximately 26-30 years old
• Height: Approximately 5’6” to 5’7” tall
• Weight: Approximately 160 pounds
• Hair: Short black hair and thin mustache with goatee
• Eyes: Dark
• Clothing: Long-sleeved shirt with vertical white and dark blue stripes, white T-shirt underneath, dark blue or black baggy jeans, baseball cap with raised letters “DC”

Bank surveillance photographs from Comerica Bank located at 2307 Fenton Parkway, San Diego, California, on Tuesday, March 26, 2013:

Anyone with information concerning this robbery is asked to contact the FBI at telephone number (858) 565-1255 (san.diego@ic.fbi.gov) or Crime Stoppers at (888) 580-8477. You may remain anonymous by calling the FBI or Crime Stoppers.

Last Defendant Sentenced in Massive International Telecommunications Fraud Case

DALLAS—Thomas Francis Quinn, 76, was sentenced Wednesday by U.S. District Judge Jorge A. Solis to 84 months in federal prison, and then remanded into federal custody, for his role in a conspiracy to defraud two British telecommunications companies of more than $60 million. Quinn, a U.S. citizen who resided in France and maintained residences in other foreign countries, pleaded guilty to one count of wire fraud. Quinn was the last defendant convicted in the case to be sentenced. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Other defendants convicted and sentenced in the case are:

• Michael Signoretto, 74, of Dallas. Following a two-week trial, Signoretto was convicted on one count of conspiracy to commit wire fraud and one count of conspiracy to obstruct an official proceeding. He was sentenced in June 2012 to 84 months in federal prison and ordered to pay $50,700,400 in restitution.
• Steven Roy Jamieson, 55, of Plano, Texas. Jamieson pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced to 48 months in federal prison and ordered to pay $63,693,178 in restitution.
• Robert William Moore, 48, a United Kingdom citizen, who resided in Poland and Dubai. Moore pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit bankruptcy fraud. He was sentenced to 84 months in federal prison.
• Jeffrey John Hemmer, 48, of Dallas, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced to 24 months in federal prison and ordered to pay $63,693,178 in restitution.
• David William Price, a U.K. citizen, is charged in the conspiracy but remains a fugitive.

According to evidence presented at trial, including voluminous bank/financial records from multiple countries and intercepted telephone communications, as well as documents filed in the case, the defendants ran a conspiracy to defraud two British telecommunications companies, British Telecom (BT) and MCI (now Verizon), of more than $60 million.
The conspirators committed the fraud by purchasing a London business, London Digital Limited (LDL), that had pre-existing contracts and favorable credit terms with BT and MCI. Over an 18-month period from late 2003 to June 2005, the conspirators used LDL to quickly buy increasing amounts of “air time” from the telecom companies that they would sell at a loss to other wholesale companies, and then, when they were doing more than $20 million per month in business, put their London company into bankruptcy and walked away with three months’ worth of revenues that should have been paid to the telecom companies.
The conspirators also created two shell companies, Nationwide Call Company (NCC) in Dallas and FOCOS Electronics in Marbella, Spain, to covertly move the proceeds of their fraud to Aston Rothbury, a private “bank” in London operated by a convicted money launderer. From London, the conspirators had their fraud proceeds directed to three bank accounts in Beirut, Lebanon, and from there the funds were disbursed to accounts in numerous countries, including France, Kenya, Ireland, the United Kingdom, Poland, the United States, and Dubai in the United Arab Emirates. As part of their plan to keep the fraud secret, the conspirators utilized fake passports, spoke about the fraud on prepaid “bat phones,” and referred to each other with predetermined code names.
In late 2005, the victim companies brought a federal civil action in Hammond, Indiana, in an attempt to uncover the truth of what was behind the suspicious bankruptcy of LDL. As part of the federal case, the victim companies took the deposition of Jeffrey Hemmer on four occasions between late 2005 and late 2008. Behind the scenes, Quinn and his co-conspirators waged a prolonged effort to obstruct this federal civil case in order to prevent the victims from exposing the criminal conspiracy and everyone involved in it. Starting with a meeting of the conspirators in a Paris hotel, there was a concerted effort to get Hemmer to lie under oath in the Indiana proceedings or “take a vacation”—the conspirators’ code for fleeing the United States—so that he could not give deposition testimony. On four occasions between July and December 2008, Signoretto dropped four packages containing thousands of dollars at the concierge desk and valet stand at a downtown Dallas hotel for pickup by Hemmer. Unbeknownst to the conspirators, however, Hemmer had begun cooperating with the FBI and Internal Revenue Service Criminal Investigation agents investigating the LDL case. Beginning with consensual recordings of Hemmer’s telephone calls, the investigating agents eventually obtained court-ordered wiretap interceptions of the telephones of Jamieson and Signoretto. These intercepted calls clearly implicated Quinn and his co-conspirators in the effort to obstruct the Indiana federal case, as well as the underlying LDL fraud.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Internal Revenue Service Criminal Investigation and the FBI investigated. Criminal Chief Assistant U.S. Attorney Chad Meacham and Assistant U.S. Attorneys Errin Martin and Stephen Fahey prosecuted.

Amarillo Man Faces Life in Federal Prison After Jury Convicts Him of Committing Armed Bank Robbery and Other Firearms Offenses

AMARILLO, TX—Following a five-day trial before U.S. District Judge Mary Lou Robinson, a federal jury has convicted Amarillo residents, Donald Joseph West, 49, and his nephew, David James West, 43, on all counts of a superseding indictment, returned by a federal grand jury earlier this year, charging felony offenses in connection with the November 5, 2012 armed robbery of FirstBank Southwest in Amarillo. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Donald West was convicted on one count of aggravated bank robbery, one count of being a felon in possession of a firearm, and one count of using a firearm during and in relation to a crime of violence (the bank robbery). An armed career criminal, Donald West faces a statutory sentence of not less than 22 years and up to life in federal prison and a $750,000 fine.
David West, who remains on bond, was convicted on one count of the unlawful sale and disposition of a firearm. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Sentencing for both defendants is set for June 4, 2013, before Judge Robinson.
The government presented evidence at trial that on Monday, November 5, 2012, a man wearing a mask entered the FirstBank Southwest branch located at 5701 Southwest 34th Street in Amarillo, pointed a gun at a teller, and demanded cash. The teller placed money in a bag and the man, later identified as Donald West, left the bank. He was arrested the next evening by officers with the Amarillo Police Department and special agents with the FBI and has been in custody since that time.
The government presented further evidence that during the robbery, Donald West used a semi-automatic pistol. When he was arrested, a firearm that was given to him by David West shortly before the robbery was recovered. Donald West is a convicted felon, having been convicted 1) in Randall County, Texas, of committing aggravated robbery with a deadly weapon in 1988; 2) in U.S. District Court for the Northern District of Texas with conspiracy to commit bank robbery and bank robbery in 1987; and 3) in Randall County for evading detention in 2011. The government presented further evidence that David West gave the 9mm caliber pistol to his uncle, well-knowing that he was a convicted felon.
The investigation was conducted by the FBI, the Amarillo Police Department, and the Potter and Randall County Sheriff’s Offices. Assistant U.S. Attorneys Jeff Haag, Justin Cunningham and Christy Drake are prosecuting.

FBI El Paso Hosts Public Safety Tabletop Exercise

In January 2013, the Investigative Assistance for Violent Crimes Act of 2012 was signed into law. It gives federal law enforcement agencies the authority to assist in violent acts and shootings in public places and in mass or attempted mass killings. Furthermore, Executive Order 3365-2013 assigned the Department of Justice, Department of Homeland Security, and Department of Education the responsibilities to lead law enforcement training and develop model emergency management plans (EMPs) for schools, institutions of higher learning, and houses of worship. As a result of the recent horrific and violent shooting incidents in Aurora, Colorado, and Newtown Connecticut, the White House developed a new training initiative, which called for the Director of the FBI to implement a nationwide “active shooter” training program to assist all law enforcement agencies across the country.
On Tuesday, March 26, 2013, the FBI El Paso Division hosted the first Public Safety Tabletop Exercise (TTX) developed under this initiative. The TTX was designed to increase the collaboration and coordination among the area’s local, tribal, federal, and state law enforcement partners in the planning and preparation for the unlikely active shooter incident. The event was attended by 26 local, state, tribal, and federal law enforcement agencies from West Texas, as well as the fire department and other emergency/public safety agencies.
“Although the United State’s Attorney General has asked the Director of the FBI to take a lead role in implementing the White House training initiative, this isn’t about the FBI but rather how all public safety agencies can work together, in a collaborative environment, supporting and leveraging each other’s assets and capabilities to more effectively respond to and resolve a critical incident such as an active shooter event. The goal is to work together as a team to save lives,” stated FBI Special Agent in Charge Mark Morgan, El Paso Division.

Jury Convicts Remaining Defendants for Area Armed Bank Robberies

HOUSTON—The two remaining defendants standing trial for their involvement in the armed robbery of several Houston-area banks have been convicted on all counts as charged, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen Morris. Early this afternoon, the federal jury convicted Larry Smith, 37, and Raymond Tierra Johnson, 32, each of one count of conspiracy as well as seven and two counts of bank robbery, respectively, after five days of trial and less than two hours of deliberations. Both were also convicted of using a firearm during and in furtherance of a bank robbery.
“Let these guilty verdicts send a strong message,” said Morris. “The old fashioned crime of bank robbery is one that doesn’t pay. The FBI will continue to work alongside our local law enforcement partners in the FBI Bank Robbery Task Force to ensure violent criminals are brought to justice.”
A total of 14 defendants were charged with their respective involvements in a series of armed bank robberies of Houston area banks including the robbery of the Pearland Chase branch bank on December 31, 2010. Jeremy Benton, 22, was charged by information and later pleaded guilty, while Smith, Johnson, and 11 others were charged in a superseding indictment returned July 6, 2011. Glenn Bonner, 41, pleaded guilty on the first day of trial last week. Co-defendants Gregory Wayne Ferguson, 20; Arlington Davis Wilkes, aka AD, 22; Carl Ray Turner, Jr., aka CT, 26; Edward Johnson, 28; John Berley Scott, aka Fresh, 31; Derrick Lashon Paley, aka Crybaby, 34; Michael Maurice Wilson, Jr., aka Blue/Mikey Poo, 26; Roderick Marshall Beagle, 40; Michael Dushon Duncan, aka Mikey, 21; and Kelvin Dewayne Thomas, aka Little Kevin, 22, each had previously entered guilty pleas.
Smith was convicted today of committing bank robbery of the Wells Fargo branches on 10978 Grant Road and 13150 Louetta on August 23, 2010 and November 2, 2010, respectively, Wells Fargo locations at 14001 Memorial and 12859 Kimberly Lane in Houston, both on October 7, 2010 the Comerica Bank on September 13, 2010, and the Citibank at 14104 NW Freeway. The jury found he used a firearm in the offenses on September 14 and November 2, 2010. Both defendants were convicted of robbing the Chase Bank at 24230 Northwest Freeway in Cypress and for using a firearm in the offense. Johnson was convicted of bank robbery for the December 31, 2010, robbery of the Chase Bank at 1915 North Main in Pearland and for using a firearms in the commission of that crime.
The conspiracy involved “casing” banks for robberies and the selection of banks that did not have security guards or bullet resistant bandit barriers. Evidence at trial indicated the conspirators used lookouts during robberies and used stolen or “hot” cars as getaway vehicles to commit the offenses. The conspirators recruited others to assist them to rob the banks in exchange for a share of the proceeds taken.
Evidence and testimony revealed most bank robberies were effected through the use of demand notes that Smith had written and through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands.
Testimony revealed some of the violence witnessed by those in the banks and the threats made to gain compliance. One witness described the event as a life changing experience.
For the conviction of conspiracy to commit bank robbery, both face a maximum punishment of five years’ imprisonment and/or a $250,000 fine. Each conviction of bank robbery also carries a maximum punishment of 20 years’ incarceration (or 25 years if firearms displayed). Discharging a firearm during and in furtherance of a bank robbery carries a mandatory punishment of 10 years on each conviction which must be served consecutive to any sentences imposed for the underlying bank robbery convictions.
The charges against these defendants are the result of a federal investigation conducted by the FBI with the substantial assistance and cooperation of the Houston Police Department, Harris County Sheriff’s Office, Harris County Precinct 4 Constable’s Office, Harris County District Attorney’s Office, Crimestoppers, Friendswood Police Department, Pearland Police Department, and the Brazoria County District Attorney’s Office. The United States Attorney wishes to recognizes each of these investigative agencies as well as the security departments of Wells Fargo and JP Morgan Chase for their outstanding efforts.
Assistant U.S. Attorneys Suzanne Elmilady and Kebharu Smith are prosecuting the case.

Armed Bank Robbery Lands Another in Federal Prison

HOUSTON—A second person charged in the armed robbery of two local banks has been ordered to prison for more than 16 years, United States Attorney Kenneth Magidson announced today. Barry Ogilvie, 37, of Houston, pleaded guilty March 28, 2011, to two counts of aiding and abetting aggravated bank robbery and one count of discharging a firearm during a crime of violence.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Ogilvie two 78-month sentences for the bank robbery charges to run concurrent. He was further ordered to serve 10 years for the firearm conviction, which must be served consecutively for a total sentence of 198 months. Ogilvie will be required to serve a term of three years of supervised release following completion of the prison term.
On September 9, 2010, Ogilvie and Andrea Steptore, 30, of Houston, both armed with firearms, robbed the Prosperity Bank located on the 2800 block of F.M. 1960 East in Houston. During the robbery, Ogilvie shot two rounds of ammunition into a wall. No one was injured, but behind the wall was a drive-thru teller stand. Zachary Ellis, 48, of Houston, had selected the bank, scouted it prior to the robbery, and shared in the proceeds.
Less than two weeks later, Ogilvie and Steptore attempted to rob the Vista Bank on the 14500 block of Northwest Freeway in Houston. They were both armed with semi-automatic pistols and wore masks. When they approached the bank, an off-duty police officer, who was working security at the bank, saw them and began firing at them. Steptore was able to flee in the getaway vehicle driven by a third individual, but Ogilvie was arrested. Odis Darrell Wheeler, 21, of Houston, stole a car which was used in the robbery and waited around the corner in a switch vehicle. Ellis had again selected the bank, told his co-conspirators he had scouted it prior to the robbery and planned to share in the proceeds.
Wheeler, Steptore, and Ellis have all also pleaded guilty to aiding and abetting aggravated bank robbery. Ellis was sentenced last month to 97 months in federal prison. Wheeler and Steptore are set for sentencing April 15, 2013. At that time, they face up to 25 years in prison and a possible $250,000 fine. Steptore, who also pleaded guilty to brandishing a firearm during a crime of violence, also faces a minimum seven-year term of imprisonment, which must be served consecutively to the other sentences imposed.
The case was investigated by FBI Houston Bank Robbery Task Force. Assistant United States Attorney Jennie Basile is prosecuting the case.

Eagle Pass Contractor Enters Guilty Plea in Connection with Maverick County Bribery, Kickback, and Bid-Rigging Scheme

In Del Rio, Texas, Eduardo De La Garza, owner of Rio Bravo Construction in Eagle Pass, faces up to 10 years in federal prison after pleading guilty this morning to paying a bribe to an agent of an organization receiving federal funds in connection with an alleged bribery, kickback, and bid-rigging scheme in Maverick County, announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States Magistrate Judge Victor Garcia, De La Garza admitted that in May 2011, he submitted a $19,800 bid to Maverick County to construct a concrete pad at the intersection of Winsor Avenue and Bianca Road in Precinct 4. DeLaGarza further admitted that he has never constructed the pad even though he received two checks from Maverick County—a $9,900 check to commence work and then $9,900 check for the completion of the concrete pad. Furthermore, DeLaGarza admitted that he made a cash payment to an employee working in the Maverick County Auditor’s Office for each check he received. According to court records, both checks were issued to De La Garza without undergoing the appropriate internal review process by Maverick County.
DeLaGarza remains on bond pending sentencing which has yet to be scheduled.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the government.
In 2010 and 2011, Maverick County received hundreds of thousands of federal dollars as part of Operation Stonegarden, a federal grant program that provides funding to state, local, and tribal law enforcement agencies to enhance their capabilities to jointly secure U.S. borders and territories.

Austin Man Sentenced to Prison for Ponzi Scheme That Defrauded 100 Investors of More Than $10 Million

In Austin yesterday morning, 71-year-old Robert Roland Langguth, of Austin, Texas, was sentenced to 48 months’ confinement in federal prison for conducting a Ponzi scheme whereby he solicited more than 100 investors into legitimate and fictitious construction projects and investments worth over $10 million. Langguth conducted his scheme from 2002 to 2009, and in many instances, the money invested with Langguth was diverted to support his lavish lifestyle. In addition, Langguth’s investors typically did not receive any monthly dividends from the advertised investment but were in actuality receiving payments from newly solicited investors, in keeping with a classic Ponzi scheme.
On November 20, 2012, Langguth pled guilty to an information that charged him with one count of wire fraud and one count of money laundering, all in violation of Title 18, United States Code, Sections 1943 and 1957. In addition to the prison term, United States District Judge Lee Yeakle ordered that Langguth pay restitution to the victim investors in the amount of $10,253,203. Furthermore, Judge Yeakle ordered Langguth be placed under supervised release for a period of three years after completing his prison term.
This investigation was conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the Texas State Securities Board. Assistant United States Attorney Sharon Pierce prosecuted this case on behalf of the government.

Tooele Couple Charged with Bank Robberies in Magna, Murray, and Tooele

SALT LAKE CITY—A federal grand jury returned an indictment Wednesday charging William Joseph Parker, age 27, and Michelle Joyce Parker, age 27, both of Tooele, with three counts of bank robbery in connection with robberies of Wells Fargo Banks in Magna, Murray, and Tooele.
The indictment alleges the pair robbed a Magna bank located at 8295 West 3500 South on January 14, 2013, and a Murray bank at 4920 South State Street on February 5, 2013. The third robbery occurred March 11, 2013, at a Tooele bank located at 204 North Main Street.
The Parkers were arrested following the Tooele robbery after an off-duty police officer noticed the car they were driving prior to the robbery and observed it fleeing the scene. The officer executed a traffic stop and took the Parkers into custody.
The case is being investigated by the FBI, the Unified Police Department, and Murray and Tooele Police Departments.
The potential maximum penalty for each count of bank robbery is 20 years in federal prison and a fine of $250,000. An initial appearance for the Parkers, who are in state custody, will be scheduled within the next few days.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.

Utah County Man Pleads Guilty to Fraud, Tax Charges in Connection with Kickback Scheme Involving Construction Invoices

SALT LAKE CITY—Darin W. Bare, age 47, of Eagle Mountain, Utah, pleaded guilty to mail fraud and filing a false tax return in federal court this week, admitting that he embezzled $800,854.63 from Clayton Homes, a company headquartered in Tennessee that specializes in building pre-manufactured and modular homes.
According to a felony information filed in the case, Bare managed the Salt Lake City sales office of a subsidiary of Clayton Homes and was responsible for hiring contractors and subcontractors to improve property lots for landscaping and home construction. The charging document alleged Bare devised and executed a scheme to obtain payment from Clayton Homes through the use of false invoices.
As a part of a plea agreement reached with federal prosecutors, Bare admitted that he conspired with a contractor, identified in court documents as D.J.H., to create and submit false invoices to Clayton Homes showing that work had been done on property lots sold by his office when, in fact, the work had not been done. D.J.H., a resident of Utah County, was the owner and operator of a general construction company known as H.B.
Bare admitted that he instructed D.J.H. on how much to charge Clayton Homes on the false invoices. Bare then entered the invoices into the Clayton Homes computer system. Relying on Bare’s representations on the invoices, Clayton Homes processed the false invoices, issued checks to D.J.H.’s business, and mailed the checks to Bare. Bare admitted he would then deliver the payments to D.J.H., who would provide him with a kickback. Bare said he deposited the checks into a checking account in another person’s name to avoid detection. Over time, Bare embezzled $800,854.63 through the fraud.
Bare also admitted that he did not report any of the money he embezzled from Clayton Homes on any of his tax returns. According to the plea agreement, Bare signed and filed a tax return for 2009 that failed to report an additional $482,639 in income for the tax year.
Bare, who waived indictment and entered his guilty pleas Wednesday, is scheduled to be sentenced May 30, 2013, at 2:30 p.m. in U.S. District Judge Clark Waddoups’ courtroom. He faces up to 20 years in prison for the mail fraud conviction and up to three years in prison for the tax conviction. He also agreed to pay restitution as a part of his plea agreement. The amount of restitution and the schedule of payments will be determined as a part of the sentencing proceeding.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS-Criminal Investigation and the FBI.

Waterbury Man Admits Making False Statements to Federal Agents Conducting Tax Fraud Investigation

David B. Fein, United States Attorney for the District of Connecticut, announced that John B. Maia, 73, of Waterbury, pleaded guilty today before Chief United States District Judge Alvin W. Thompson in Hartford to one count of making a false statement to federal law enforcement agents investigating his filing of false tax returns.
According to court documents and statements made in court, on April 14, 2010, Maia submitted to a voluntary interview with special agents of the Internal Revenue Service-Criminal Investigation who were conducting an investigation into whether Maia had overstated deductions for charitable contributions and listed fictitious business expenses on his federal tax returns from 2005 through 2008. During the interview, Maia falsely stated that the charitable contributions and business expenses were legitimate and that he had provided supporting documentation for the charitable contributions and business expenses to his tax preparer.
Chief Judge Thompson has scheduled sentencing for June 18, 2013, at which time Maia faces a maximum term of imprisonment of five years and a fine of up to $250,000.
This case is being investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Christopher Mattei and Eric Glover.

Oklahoma City Man Pleads Guilty to Making Threat to Commit Violence in Wyoming

OKLAHOMA CITY—Today, Glenn Allen Kirkham, 34, of Oklahoma City, Oklahoma, pled guilty to making a threat to commit violence in Casper, Wyoming, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On January 14, 2013, public officials in and around Casper, Wyoming, received numerous reports from various sources of a threatened attack in Casper using multiple types of weapons. The threat had been posted from Oklahoma City on 4chan.org, an Internet-based bulletin board service. The posting was quickly distributed throughout the through social media and caused significant concern in the community. The threat came not long after Casper had experienced a homicide/suicide at a local college. As a result of the threat, officials immediately took precautions that included placing 40 schools on lockdown, notifying hospitals and nursing homes, and placing police officers at potential locations of an attack.
At the plea hearing today, Kirkham admitted that he made the threat. A sentencing hearing is set for June 19, 2013, where Kirkham faces up to five years in prison and a $250,000 fine, plus mandatory restitution for the cost of emergency responders.
This case is the result of an investigation by the Federal Bureau of Investigation and the Casper Police Department in Wyoming. The case is being prosecuted by Assistant U.S. Attorneys Mark A. Yancey and Scott E. Williams.

FBI and Local Law Enforcement Seek Public’s Help in Identifying the Button Down Bandit

The FBI and the Pleasanton and Walnut Creek Police Departments are seeking the public’s help in identifying a serial bank robber dubbed the “Button Down Bandit.”
The Button Down Bandit is believed to be responsible for two bank robberies this past month. His latest bank robbery was on March 12, 2013, in Pleasanton, California. The serial bank bandit presents a demand note and verbally demands money. The suspect wears a button-down, long-sleeved shirt.
The Button Down Bandit is believed to be connected to the following bank robberies:

• March 6, 2013—Chase Bank, 1510 Palos Verdes Mall, Walnut Creek, California
• March 12, 2013—Wells Fargo Bank, 4767 Hopyard Road, Pleasanton, California

Witnessed described the Button Down Bandit as follows:

• Sex: Male
• Age: 30 to 35
• Race: Black
• Height: 5’10” to 6’0” tall
• Build: Medium
• Clothing: A white, button-down, collared long-sleeved shirt; dark gray dress slacks; and black dress shoes.
• Remarks: The suspect was also described as having a scruffy beard and goatee and was wearing dark sunglasses.

March 12, 2013
March 6, 2013

The FBI can be reached 24 hours a day at 415-553-7400 in the San Francisco area. All calls are confidential.
Members of the media should call Public Affairs Specialist Julianne Sohn at 415-553-7450.

$5 Million Reward Offered for San Diego Fugitive on FBI’s Most Wanted Terrorists List

The U.S. Department of State’s Rewards for Justice program is offering rewards for information on two members of the Somalia-based terrorist organization  al Shabaab. The Department has authorized rewards of up to $5 million each for information leading to the arrest or conviction of Jehad Serwan Mostafa or Omar Shafik Hammami.
Jehad Mostafa is a U.S. citizen and former resident of San Diego, California. Mostafa departed for Somalia in 2005 and has served as a media expert and leader of foreign fighters for al Shabaab. He was indicted on October 9, 2009, in the Southern District of California, San Diego, California, on charges of conspiring to provide material support to terrorists, conspiring to provide material support to al Shabaab, and providing material support to al Shabaab. Mostafa is on the FBI’s Most Wanted Terrorists list. He has used birth years of 1981 and 1986 and has used the aliases Ahmed Gurey, Anwar al-Amriki, and Emir Anwar.
Omar Hammami is a U.S. citizen and former resident of Daphne, Alabama. In 2006, Hammami moved to Somalia, where he joined and received training from Islamist militants. Hammami has served as a propagandist for al Shabaab, helping to recruit English-speaking youth through his writings, rap songs, and video statements. He also has served as a military commander, leading foreign fighters under Jehad Serwan Mostafa. In September 2009, Hammami was indicted in the Southern District of Alabama on charges of providing support to terrorists, conspiring to provide material support to a State Department-designated foreign terrorist organization (al Shabaab), and providing material support to al Shabaab.
On July 29, 2011, the U.S. Department of the Treasury placed Hammami on the U.S. Government’s Specially Designated Nationals list pursuant to Executive Order 13536, which provides authority to block the property of and prohibit U.S. persons from engaging in transactions with individuals and entities whose actions threaten the peace, security, or stability of Somalia.
In November 2012, the FBI added him to its Most Wanted Terrorists list. Hammami was born on May 6, 1984, and has used the aliases Abu Mansour al-Amriki and Farouk. Both Mostafa and Hammami are currently believed to be in Somalia.
More information about these individuals is located on the Rewards for Justice website at www.rewardsforjustice.net. We encourage anyone with information on these individuals to contact the Rewards for Justice office via the website, e-mail (RFJ@state.gov), phone (1-800-877-3927), or mail (Rewards for Justice, Washington, D.C., 20520-0303, USA). All information will be kept strictly confidential.
The Rewards for Justice program is administered by the U.S. Department of State’s Bureau of Diplomatic Security. Since its inception in 1984, the program has paid in excess of $125 million to more than 80 people who provided actionable information that put terrorists behind bars or prevented acts of international terrorism worldwide.

Three Indicted for Criminal Copyright Infringement

SACRAMENTO, CA—A federal grand jury returned a three-count indictment today charging Otto Godinez-Sales, 21, of San Jose; Francisco Martinez-Cruz, 33, of Orland; and Soledad Garcia-Venegas, 31, of Orland, with criminal copyright infringement and conspiracy, United States Attorney Benjamin B. Wagner announced.
The indictment alleges that from July 2012 to February 2013, the defendants conspired to traffic in counterfeit goods and to engage in criminal copyright infringement. According to the indictment, Godinez-Sales maintained a warehouse in San Jose where he distributed CDs and DVDs containing counterfeit copies of movies and music. Martinez-Cruz and Garcia-Venegas were two of his customers. They would transport large quantities of the counterfeit CDs and DVDs from San Jose to Glenn County and Yuba County where they would sell them. The indictment also charges Martinez-Cruz and Garcia-Venegas with one count of criminal copyright infringement for selling counterfeit copyright goods and one count of trafficking in goods bearing counterfeit trademarks.
This case is the product of an extensive investigation by the Federal Bureau of Investigation and the Sacramento High Tech Crimes Task Force. Assistant United States Attorney Matthew Morris is prosecuting the case.
Godinez-Sales was arrested in San Jose on February 22, 2013, on an arrest warrant issued from the Eastern District of California. Martinez-Cruz and Garcia-Venegas were arrested on state charges on February 24, 2013, in Marysville and Orland, where they are being held.
The maximum statutory penalty for conspiracy or criminal copyright infringement is five years in prison and a $250,000 fine. The maximum penalty for trafficking in goods bearing counterfeit marks is 10 years in prison and a $2 million fine. Any sentence, if convicted, would 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 are only allegations, and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Bay Village Man Charged with Mail Fraud and Tax Evasion

A Bay Village man was charged via criminal information with mail fraud and tax evasion, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Frederick C. Bryant, age 45, is accused of embezzling $505,832 from a victim that he guaranteed a five percent rate of return.
Bryant converted the money for his own personal use. Bryant also failed to report the funds to the IRS, according to the information.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, his role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
An information is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Cordell Veterinarian Pleads Guilty to Making False Statements to Defraud Banks

OKLAHOMA CITY—Today, David L. Sturgeon, 63, from Cordell, Oklahoma, has pled guilty to making false statements to defraud the Bank of Cordell, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Sturgeon is a large animal veterinarian who operates the Washita Veterinarian Clinic and lives in Cordell, Oklahoma. Sturgeon also bought and sold cattle as a manager partner of 20/20 Cattle and Consulting LLC and S&D Cattle LLC. According to an information filed on February 21, 2013, from December 2007 through December 2008, Sturgeon secured several loans based on a revolving line of credit extended by Bank of Cordell. Under the loan agreements, loan advances were to be used by Sturgeon for the purchase of cattle which served as collateral for the loan funds advanced. Proceeds from the sale of the cattle were to be used by Sturgeon to pay off the loans owed to Bank of Cordell. During this same time, Sturgeon had two commodities trading accounts with R.J. O’Brien (RJO), a commodities firm located in Chicago, Illinois, that he used to make trades in agricultural commodities.
In 2008, RJO required Sturgeon to make certain deposits in his trading accounts to meet margin calls. During the plea hearing today, Surgeon admitted that on August 6, 2008, he represented to the Bank of Cordell that he needed a loan advance of $36,000 to purchase 70 head of cattle for the purpose of influencing the Bank of Cordell to advance him the loan. However, Sturgeon admitted that the loan was not used to purchase cattle and his statements were falsely made so he could fraudulently divert loan funds to make margin calls on the two RJO commodities accounts.
At sentencing, Sturgeon faces up to 30 years in prison, a fine of up to $1,000,000, and mandatory restitution. A sentencing date will be set by the court in approximately 90 days.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Ross N. Lillard, III and Robert J. Troester.

Robbery of Cherokee Strip Credit Union in Ponca City

OKLAHOMA CITY—James E. Finch, special agent in charge of the Oklahoma City Division of the Federal Bureau of Investigation, announced the robbery of the Cherokee Strip Credit Union located at 1508 E. Prospect Avenue, Ponca City, Oklahoma.
At approximately 10:46 this morning, a white male entered the credit union and presented a note to a teller demanding money be placed in a blue bank bag. The teller complied with the demand.
The subject was last observed running west on Prospect Avenue from the credit union. No weapon was observed and no one was injured in today’s robbery.
Surveillance photos (below) and witness descriptions depict the subject as follows:

• White male
• Late 40s to early 50s
• 5’8” tall
• 180 lbs
• Wearing blue jeans, a multi-colored plaid shirt, a dark-colored jacket, and dark shoes.

The robbery is being investigated by the FBI and the Ponca City Police Department.
Anyone with information regarding this robbery should contact the FBI at (405) 290-7770 (24-hour number). You may remain anonymous.

Former Tulsa Public Schools Athletic Director Pleads Guilty to Theft of School District Funds

TULSA, OK—Today, Stephanie Spring, 45, from Tulsa, Oklahoma, pled guilty to theft of funds from the Tulsa Public School district before United States District Judge John E. Dowdell at the Page Belcher Federal Courthouse in Tulsa, Oklahoma, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Spring is the former athletic director of the Tulsa Public Schools, a recipient of federal funds from the U.S. Department of Education. It is alleged that during 2011, while serving as athletic director, Spring rented certain school facilities and misappropriated rental proceeds by depositing those funds into her own personal account.
Today, Spring entered a guilty plea and agreed that she owes $92,218.72 in restitution to the Tulsa Public Schools.
At sentencing, Spring faces up to 10 years in federal prison, a fine of up to $250,000, and mandatory restitution. A sentencing date will be set by the court.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Vicki Zemp Behenna.

Pendleton Man Sentenced to 21 Months in Federal Prison for Vehicular Homicide

PORTLAND, OR—Today, Roberto Medellin, 54, of Pendleton, was sentenced 21 months in prison by U.S. District Judge Ancer L. Haggerty for vehicular homicide. On December 10, 2012, the defendant pled guilty to involuntary manslaughter. Judge Haggerty ordered the defendant to spend three years on supervised release after he is released from the Bureau of Prisons. As conditions of supervised release, the defendant must not possess or consume alcohol. Judge Haggerty ordered the defendant to surrender to the Bureau of Prisons on May 2, 2013.
“This case is another tragic reminder that drinking and driving kills,” stated U.S. Attorney Amanda Marshall. “Vehicular homicide is a serious crime with long lasting consequences for families and communities. My office will vigilantly prosecute these cases in Indian Country.”
According to the prosecutor’s statements in court, on May 14, 2012, on the Umatilla Indian Reservation, defendant Roberto Medellin was driving his jeep on a highway in which Misty Dawn Sheoships, a member of the White Mountain Apache Tribe, was a front seat passenger. Medellin’s vehicle went off the highway, crashed into a ditch, and Sheoships died as a result due to severe head and neck trauma. Witnesses called 911 to report the crash.
In a mirandized statement, Medellin said that he had been drinking earlier in the afternoon, prior to going out driving with Sheoships, and that he had fallen asleep at the wheel. He also said, in essence, that he knew he was too tired to continue driving and should have pulled over to rest. Medellin was taken to the hospital due to complaints of body stiffness and just under two hours following the crash, a hospital blood draw revealed that defendant’s blood alcohol content was still 0.096, which is in excess of the legal driving limit of 0.08.
The federal case was investigated by the Umatilla Tribal Police Department and the FBI’s office in Pendleton, Oregon. Assistant U.S. Attorney Craig Gabriel prosecuted the case.

Former Vice President at Prism Career Institute Sentenced to Two Years in Prison for Stealing More Than $400,000

CAMDEN, NJ—A former vice president of operations at Prism Career Institute, a private, post-secondary educational institution with campuses in Cherry Hill, New Jersey Egg Harbor Township, New Jersey, and Pennsylvania, was sentenced today to 24 months in prison for stealing more than $400,000 from her employer between 2008 and 2011, U.S. Attorney Paul J. Fishman announced.
Diane Bowler, 53, of Sewell, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to embezzling, stealing, and obtaining by fraud money belonging to Prism Career Institute, which receives federal funds from the U.S. Department of Education. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Diane Bowler was a regional vice president of operations at Prism, authorized to make purchases on behalf of Prism with her personal credit cards and then submit the receipts of these purchases to Prism for reimbursement. Bowler admitted that she stole more than $400,000 from Prism by submitting fraudulent reimbursement requests for purchases of supplies, furniture, equipment, and other items that were never received by Prism. She falsified invoices by cutting and pasting new dates and invoice numbers onto prior receipts for purchases and by fraudulently creating invoices for certain vendors with which Prism no longer did business. Bowler would forge the signature of the CEO of Prism on reimbursement checks and, in some instances, signed the checks herself before depositing the money into her personal bank account.
In addition to the prison term, Judge Bumb sentenced Bowler to three years of supervised release and ordered her to pay $551,596 in restitution.
U.S. Attorney Fishman credited special agents of the FBI’s Resident Agency in Cherry Hill, New Jersey, under the direction of Acting Special Agent in Charge John Brosnan; and special agents of the Department of Education-Office of the Inspector General, under the direction of Special Agent in Charge Brian Hickey, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the Special Prosecutions Division in Camden.

Driver of ‘Chubby Bandit’ Bank Robber Convicted

United States Attorney Laura E. Duffy announced that Vahid Edrisi was found guilty by a federal jury earlier today in San Diego of six counts of bank robbery and one count of robbing a pharmacy. The verdicts follow a two-day trial before United States District Judge Larry A. Burns.
The evidence presented at trial showed Edrisi accessing cellular towers in the vicinity of six of the seven robberies committed by Aaron Hyman, dubbed the “Chubby Bandit,” in October 2012. Edrisi himself was captured by video surveillance just prior to one of the robberies, and Edrisi’s black 2011 Chevrolet Camaro Convertible was captured on video surveillance at three of the seven robberies. Hyman entered guilty pleas to seven counts of robbery on January 24, 2013.
The evidence further showed that Edrisi twice fled law enforcement at high rates of speed to avoid capture. Edrisi abandoned the car following the second chase. Inside the car, officers found a hat worn during one of the seven Chubby Bandit robberies. Edrisiwas arrested when he went to the tow yard to attempt to retrieve his car.
The defendants were convicted of robbing:

• $369 from the U.S. Bank, 12265 Scripps Poway Parkway, Poway, California
• Two bottles of Oxycontin, CVS Pharmacy, 191 Woodland Parkway, San Marcos, CA $2,307
• Chase Bank, 7176 Avenida Encinitas, Carlsbad, California
• Attempted Chase Bank, 607 Lomas Santa Fe Dr., Solana Beach, California
• $309, Wells Fargo, 276 N. El Camino Real, Encinitas, California
• $1,590 from the U.S. Bank, 770 Carlsbad Village Dr., Carlsbad, California
• $830 from the Wells Fargo, 11986 Bernardo Plaza Dr., San Diego, California

Judge Burns set a sentencing hearing for Edrision June 10, 2013, at 9:30 a.m. Hyman is scheduled for sentencing on April 8, 2013, at 9:30 a.m.
Defendants in Case Number: 12cr5098-LAB
Aaron Alan Hyman
Vahid Edrisi
Summary of Charges
Title 18, United States Code, Section 2113(a)-bank robbery Title 18, United States Code, Section 1951(a)-bbstruction of interstate commerce by force (Hobbs Act)
Maximum penalties: 20 years for each count
Investigating AgenciesFederal Bureau of Investigation
Carlsbad Police Department
San Diego County Sheriff’s Department
San Diego Police Department

Mexican Mafia Affiliate Sentenced in RICO Conspiracy

United States Attorney Laura E. Duffy announced that Silvano Hernandez, Jr., a Mexican Mafia associate from San Diego, was sentenced today by United States District Judge Anthony J. Battaglia to serve 210 months (17.5 years) in custody after Hernandez pled guilty to conspiracy to participate in the affairs of a racketeering enterprise (RICO conspiracy), in violation of Title 18, United States Code, Section 1962. Hernandez was one of 36 individuals arrested last year as part of Operation Carnalismo, an investigation that targeted the Mexican Mafia’s organized criminal activity. Operation Carnalismo was one of three similar investigations charged at the same time that focused on Mexican Mafia crime, which resulted in well over 100 arrests of local gang members and associates in January 2012.
Court filings described the Mexican Mafia as a notorious, violent prison gang that controls and benefits from a large portion of the criminal activity committed by Southern California Hispanic street-gang members. The Mexican Mafia and its associates engage in a variety of crime in order to maintain their presence in the criminal world, including murder, assault, kidnapping, extortion. Drug trafficking is the Mexican Mafia’s largest source of revenue.
As part of his plea, Hernandez admitted to participating in the organized criminal activity of the Mexican Mafia. Specifically, he admitted to distributing, on average, 30-40 pounds of methamphetamine per month in San Diego. Hernandez stated that he distributed anywhere from 1/4-pound to multi-pound quantities of methamphetamine to a number of drug dealers who, in turn, sold the methamphetamine in smaller quantities. Assistant U.S. Attorney Peter J. Mazza, the lead prosecutor on the case, told Judge Battaglia at today’s sentencing hearing that the 30-40 pounds of methamphetamine Hernandez distributed onto the streets of San Diego every month roughly equated to well over 50,000 doses of methamphetamine per month. At the time of his arrest, investigators seized nearly $150,000 in cash from his residence and a 2011 Lincoln sedan valued at approximately $50,000.
United States Attorney Duffy praised the members of the Federal Bureau of Investigations Violent Crimes-Gang Group (AVCTF-GG), which led this investigation, for their continued, outstanding work in pursuit of Mexican Mafia crime. The VCTF-GG is a federal task force composed of investigators from the FBI; Bureau of Prisons; and the San Diego, Chula Vista, and National City Police Departments.
Defendant in Criminal Case No. 12CR290-AJB
Silvano Hernandez, Jr.
Age: 40
Progress of Cases Charged as Part of Operation Carnalismo
Summary: As of March 15, 2013, 30 of 36 defendants have been convicted, and 14 of those 30 have been sentenced.
12CR290-AJB Convictions
Salvadore Colabella—RICO conspiracy
Jose Luis Mercado—RICO conspiracy
Robert Mercado—Violent Crime in aid of racketeering (168 months in custody)
Maria de Jesus Claudia Ochoa—RICO conspiracy
Silvano Hernandez—RICO conspiracy
Jose Briseno-Contreras—RICO conspiracy (46 months in custody)

12CR291-AJB—Convictions
Ramon Agredano—Conspiracy to distribute methamphetamine (84 months in custody)
Ricardo Cornejo—Conspiracy to distribute methamphetamine (135 months in custody)
David York—Conspiracy to distribute methamphetamine
Guillermo Chaidez—Conspiracy to distribute methamphetamine (120 months in custody)
Adrian Dominguez—Conspiracy to distribute methamphetamine
Charles Smith—Conspiracy to distribute methamphetamine Anna Sheneman—Conspiracy to distribute methamphetamine (93 months in custody)
Esteban Rodriguez—Conspiracy to distribute methamphetamine (60 months in custody)
12CR292-AJB—Convictions
Juan Guerrero—Conspiracy to distribute methamphetamine (135 months in custody)
Jorge Moreno—Conspiracy to distribute methamphetamine Eduardo Moreno—Conspiracy to distribute methamphetamine (120 months in custody)
Allen Mundell—Conspiracy to distribute methamphetamine
Brett Youkel—Conspiracy to distribute methamphetamine (120 months in custody)
Lacy McElroy—Conspiracy to distribute methamphetamine (100 months in custody)
12CR293-AJB—Convictions
Alfredo Bazurto—Conspiracy to distribute methamphetamine
Charles Monroe—Conspiracy to distribute methamphetamine
Jose Pedro Covarrubias—Conspiracy to distribute methamphetamine (120 months in custody)
George Chavez—Conspiracy to distribute methamphetamine Jose Esparza—Conspiracy to distribute methamphetamine John Atkinson—Conspiracy to distribute methamphetamine (120 months in custody)
Annabel Vasquez—Conspiracy to distribute methamphetamine
Fantaja Deleal—Conspiracy to distribute methamphetamine (78 months in custody)
12CR294-MMA—Convicted
Carlos Lozano—Distribution of methamphetamine (57 months in custody)
Investigating Agencies
Federal Bureau of Investigation
Chula Vista Police Department
San Diego County Sheriff’s Department
National City Police Department
San Diego Police Department
San Diego County District Attorney’s Office
U.S. Bureau of Prisons
California Department of Corrections and Rehabilitation
San Diego County Probation Department
Immigration and Customs Enforcement’s Homeland Security Investigations
Internal Revenue Service-Criminal Investigations

FBI and San Diego Police Department Seek Public’s Assistance to Identify Man Who Tried to Rob U.S. Bank

The FBI and San Diego Police Department are seeking the public’s assistance to identify the unknown male who attempted to rob the U.S. Bank branch located at 640 East San Ysidro Boulevard in San Diego, California, on Monday, March 11, 2013.
On Monday, March 11, 2013, at approximately 10:00 a.m. an unknown male attempted to rob the U.S. Bank located at 640 East San Ysidro Boulevard in San Diego, California. At the time of the robbery, the robber approached the victim teller and made a demand for money. The teller walked away from the counter and did not return. The robber walked out of the bank without any money.
Witnesses describe the robber as follows:

• Sex: Male
• Race: Black
• Age: Early 30s
• Height: Approximately 5’0” tall
• Build: Skinny
• Eyes: Dark
• Clothing: Green camouflage hat with brim, hooded sweatshirt, and dark clothing

Bank surveillance photographs from U.S. Bank at 640 East San Ysidro Boulevard in San Diego, California, on Monday, March 11, 2013:

Anyone with information concerning this attempted robbery is asked to contact the FBI at (858) 565-1255 (san.diego@ic.fbi.gov) or Crime Stoppers at (888) 580-8477. You may remain anonymous by calling the FBI or Crime Stoppers.

Former California Public Employee System CEO and Former Placement Agent Indicted for Conspiracy and Fraud

SAN FRANCISCO—A federal grand jury in San Francisco indicted Alfred J. Villalobos, of Reno, Nevada, and Federico R. Buenrostro, Jr., aka Fred Buenrostro, of Sacramento, California, on charges of conspiracy to defraud the United States, engaging in a false scheme against the United States, and conspiracy to commit mail fraud and wire fraud, U.S. Attorney Melinda Haag announced. Mr. Buenrostro was also charged in the same indictment with making a false statement to the United States and obstruction of justice.
According to the indictment, Mr. Villalobos, 69 and Mr. Buenrostro, 64, conspired to create and transmit fraudulent documents in connection with a $3 billion investment by the California Public Employee Retirement System (CalPERS) into funds managed by Apollo Global Management, a private equity firm based in New York City.
ARVCO Capital Research LLC, a financial services firm founded and managed by Mr. Villalobos, allegedly acted as a placement agent in helping Apollo to secure these investments by CalPERS. In each instance, Apollo required ARVCO to obtain an investor disclosure letter from CalPERS prior to paying ARVCO any fees for its efforts in securing CalPERS’ investments into Apollo-managed funds, citing, among other reasons, Apollo’s obligations under the securities laws.
After CalPERS’ legal and investment offices declined to sign a certain investor disclosure letter documenting ARVCO’s legal relationship with Apollo, Mr. Villalobos and Mr. Buenrostro allegedly conspired to create a series of fraudulent investor disclosure letters that were transmitted to Apollo. Apollo paid ARVCO a total of approximately $14 million dollars in fees after receiving the fraudulent letters.
ARVCO transmitted the last fraudulent investor disclosure letter in June 2008, a few weeks before Mr. Buenrostro retired from CalPERS. On July 1, 2008, Mr. Villalobos hired Mr. Buenrostro to work for ARVCO. When civil and later criminal investigations were opened into the operations of ARVCO and its role as a placement agent in connection with CalPERS’ investments in Apollo-managed funds, both defendants made false statements to and concealed information from the SEC, the USPIS, and the FBI about the authenticity of the investor disclosure letters in order to defeat and obstruct the lawful functions of those agencies.
Mr. Villalobos and Mr. Buenrostro made their initial appearance in federal court in San Francisco on March 18, 2013, and are currently out on bond. Mr. Buenrostro’s next scheduled appearance is Monday, March 25, 2013, at 9:30 a.m. for identification of counsel and review of the terms of his bond. Mr. Villalobos’ next scheduled appearance is April 9, 2013, at 9:30 a.m. for review of the terms of his bond. Both defendants are scheduled to appear before in district court on May 8, 2013, at 2:00 p.m. before Judge Breyer.
The maximum statutory penalty for conspiracy to commit mail fraud and wire fraud is 20 years in prison; $250,000 fine or twice the amount of gain or loss, whichever is greater; three years of supervised release; and a $100 special assessment. The maximum penalty for each count of conspiracy to defraud the United States, false scheme against the United States, false statement to the United States, and obstruction of justice is five years in prison; $250,000 fine or twice the amount of gain or loss, whichever is greater; three years of supervised release; and a $100 special assessment. Restitution may also be ordered as to each of the five counts. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines a the federal statute governing the imposition of a sentence.
Timothy J. Lucey is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Laurie Worthen and Maryam Beros. The prosecution is the result of a two-and-a half-year investigation by the U.S. Postal Inspection Service and FBI, with substantial assistance from the Los Angeles Regional Office of the Securities and Exchange Commission as well as the U.S. Secret Service.

Former Web Producer Indicted in California for Conspiring with Anonymous Members to Attack Internet News Site

WASHINGTON—A former web producer for a Tribune Company-owned television station in Sacramento, California, was charged today in an indictment for allegedly conspiring with members of the hacker group “Anonymous” to hack into and alter a Tribune Company website, the Justice Department announced.
Matthew Keys, 26, of Secaucus, New Jersey, was charged in the Eastern District of California with one count each of conspiracy to transmit information to damage a protected computer, transmitting information to damage a protected computer, and attempted transmission of information to damage a protected computer.
Keys was employed by Sacramento-based television station KTXL FOX 40 as its web producer but was terminated in late October 2010.
The three-count indictment alleges that in December 2010 Keys provided members of the hacker group Anonymous with log-in credentials for a computer server belonging to KTXL FOX 40’s corporate parent, the Tribune Company. According to the indictment, Keys identified himself on an Internet chat forum as a former Tribune Company employee and provided members of Anonymous with a login and password to the Tribune Company server. After providing log-in credentials, Keys allegedly encouraged the Anonymous members to disrupt the website. According to the indictment, at least one of the computer hackers used the credentials provided by Keys to log into the Tribune Company server, and ultimately that hacker made changes to the web version of a Los Angeles Times news feature.
The indictment further alleges that Keys had a conversation with the hacker who claimed credit for the defacement of the Los Angeles Times website. The hacker allegedly told Keys that Tribune Company system administrators had thwarted his efforts and locked him out. Keys allegedly attempted to regain access for that hacker, and when he learned that the hacker had made changes to a Los Angeles Times page, Keys responded, “nice.”
Each of the two substantive counts carry a maximum penalty of 10 years in prison, three years of supervised release, and a fine of $250,000.  The conspiracy count carries a maximum penalty of five years in prison, three years of supervised release, and a fine of $250,000.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Sacramento and Los Angeles Field Offices of the FBI. The case is being prosecuted by the Criminal Division’s Computer Crime and Intellectual Property Section and the U.S. Attorney’s Office for the Eastern District of California.

Three Defendants Charged in Mortgage Fraud Scheme

SACRAMENTO, CA—United States Attorney Benjamin B. Wagner announced today that a federal grand jury returned a 12-count indictment charging Surjit Singh, 66, of Dublin; his son, Rajeshwar Singh, 38, of Pleasanton; and Anita Sharma, 51, of Gilroy, with mail fraud, bank fraud, and false statements on a loan and credit application.
The indictment alleges that Surjit Singh recruited individuals with good credit to act as straw buyers for residential properties owned by his family members and associates. Rajeshwar Singh, a licensed real estate agent, assisted in the scheme by submitting loan applications for the straw buyers. The Singhs prepared and submitted applications to lenders that falsely stated the straw buyers’ income, employment, liabilities, and intent to occupy the homes as their primary residences. The straw buyers included Anita Sharma.
According to the indictment, the defendants were responsible for the origination of more than $2.1 million in residential mortgage loans. Four properties are charged in this indictment. They are in Elk Grove, Sacramento, Modesto, and Stockton. All of the properties were foreclosed on, resulting in a total loss of more than $1.2 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Lee S. Bickley is prosecuting the case.
If convicted, the defendants face a maximum penalty of 30 years in prison and a $1 million fine. 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 are only allegations, and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FBI Arrests Virginia Murder Suspect in Huntsville

BIRMINGHAM—Richard D. Schwein, Jr., Special Agent in Charge (SAC) of the Birmingham Division of the Federal Bureau of Investigation (FBI), announced today that Kelvin Kennedy Parker, II, age 23, was arrested at approximately 6:45 a.m. on March 14, 2013, without incident in connection with an unlawful flight to avoid prosecution (UFAP) murder charge issued in the Eastern District of Virginia. Parker was arrested at a residence in the 3600 block of Judd Avenue in Huntsville, Alabama, and was found hiding under the stairs of the home at the time of his arrest.
According to the criminal complaint and affidavit filed against Parker, he is from Roanoke Rapids, North Carolina, and fled to Virginia and is wanted on a warrant issued by the Sussex County District Court in connection with a charge of murder in the first-degree.
Parker will make his initial appearance before a United States Magistrate Judge and will be placed in the custody of United States Marshals office in Huntsville until his extradition to Virginia.
SAC Schwein expressed his sincere appreciation to the Huntsville Police Department for their assistance in this arrest.
The public is reminded that a criminal complaint is only a charge. It is the government’s responsibility to prove a defendant guilty beyond a reasonable doubt at trial.

Judge Orders Prison and $308,554 Restitution for Former Bank Officer

BIRMINGHAM—A federal judge today sentenced a former officer at a Birmingham bank to six months in prison, followed by six months home detention, plus three years of supervised release for a five-year fraud through which she stole almost $275,000 from her employer, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
U.S. District Judge R. David Proctor sentenced Allison McClellan, 40, of Odenville, on one count of computer fraud and ordered her to pay $308,554 in restitution to SouthPoint Bank where she worked as its loan operations manager. McClellan had agreed to pay that amount in restitution as part of her plea agreement with the government. She pleaded guilty to the computer fraud in November. The restitution reflects the $274,775 she stole from SouthPoint, plus the $33,779 the bank spent in investigative and legal fees related to the crime.
McClellan worked at SouthPoint from 2005 to 2012. She used her computer access as the bank’s loan operations manager to defraud the bank between 2007 and 2012.
According to her plea agreement, she used her computer access to fraudulently increase the home equity line of credit she and her husband obtained from the bank in February 2006. She increased the credit line 69 times between October 2007 and April 2012, raising it from $65,000 to $328,000. McClellan also fraudulently increased a personal line of credit she obtained from SouthPoint in 2005, raising it 11 times in 2009 and 2010 to reach a $15,000 credit line.
The FBI investigated the case, and it was prosecuted by Assistant U.S. Attorney Henry Cornelius.

Computer Printer Technician Sentenced for Defrauding Children’s of Alabama

BIRMINGHAM—A federal judge today sentenced a former computer printer service technician at Children’s of Alabama to 27 months in prison for defrauding the hospital of $426,986 by charging it for printer cartridges he sold to another company, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge L. Scott Coogler sentenced John David Nichols, 36, of Hueytown, on one count of wire fraud, ordering him to pay $526,943 in restitution and to serve three years of supervised release after completing the prison term. Nichols pleaded guilty to the fraud in October.
According to his plea agreement and other court documents, Nichols worked on site at Children’s of Alabama as a service technician for Tech-Optics Inc. from October 2009 through October 2011. Tech-Optics had a contract with the hospital that included providing preventive maintenance, repair, and toner cartridges for printers. Nichols acknowledges that from August 2010 to October 2011, he used Tech-Optics’ computer inventory system to order toner cartridges for Children’s. The hospital paid for the cartridges, but Nichols sold them to an Alabama company, Image Craft, which bought new and used toner cartridges.
Due to Nichols’ scheme, Children’s paid $426,986 to Tech-Optics for items Nichols ordered, and then sold to Image Craft. Children’s ceased payments in December 2011, leaving a balance to Tech-Optics of $140,956, according to court documents. The judge ordered Nichols to pay restitution in those amounts to the two victims.
Between August 2010 and March 2012, Nichols sold about 6,316 items to Image Craft, according to his plea agreement. Of those items, about 4,900 were printer cartridges Nichols charged to Children’s, and the remaining items included laptop computers, printers, printer parts, and fax machines he had stolen from the hospital. Nichols received $234,525 from Image Craft for the equipment, according to the plea agreement.
The FBI investigated the case, which Assistant U.S. Attorney Henry Cornelius prosecuted.

Former Web Producer Indicted in California for Conspiring with Anonymous Members to Attack Internet News Site

WASHINGTON—A former web producer for a Tribune Company-owned television station in Sacramento, California, was charged today in an indictment for allegedly conspiring with members of the hacker group “Anonymous” to hack into and alter a Tribune Company website, the Justice Department announced.
Matthew Keys, 26, of Secaucus, New Jersey, was charged in the Eastern District of California with one count each of conspiracy to transmit information to damage a protected computer, transmitting information to damage a protected computer, and attempted transmission of information to damage a protected computer.
Keys was employed by Sacramento-based television station KTXL FOX 40 as its web producer but was terminated in late October 2010.
The three-count indictment alleges that in December 2010 Keys provided members of the hacker group Anonymous with log-in credentials for a computer server belonging to KTXL FOX 40’s corporate parent, the Tribune Company. According to the indictment, Keys identified himself on an Internet chat forum as a former Tribune Company employee and provided members of Anonymous with a login and password to the Tribune Company server. After providing log-in credentials, Keys allegedly encouraged the Anonymous members to disrupt the website. According to the indictment, at least one of the computer hackers used the credentials provided by Keys to log into the Tribune Company server, and ultimately that hacker made changes to the web version of a Los Angeles Times news feature.
The indictment further alleges that Keys had a conversation with the hacker who claimed credit for the defacement of the Los Angeles Times website. The hacker allegedly told Keys that Tribune Company system administrators had thwarted his efforts and locked him out. Keys allegedly attempted to regain access for that hacker, and when he learned that the hacker had made changes to a Los Angeles Times page, Keys responded, “nice.”
Each of the two substantive counts carry a maximum penalty of 10 years in prison, three years of supervised release, and a fine of $250,000.  The conspiracy count carries a maximum penalty of five years in prison, three years of supervised release, and a fine of $250,000.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Sacramento and Los Angeles Field Offices of the FBI. The case is being prosecuted by the Criminal Division’s Computer Crime and Intellectual Property Section and the U.S. Attorney’s Office for the Eastern District of California.

Orange County Couple Sentenced to Prison in Federal Fraud Case for Bilking Seven Banks out of Nearly $5 Million

SANTA ANA, CA—A husband and wife from Newport Coast have been sentenced to federal prison for defrauding a consortium of seven banks, including Bank of America, in connection with a $130 million line of credit.
Thomas Chia Fu, 64, was sentenced yesterday to 21 months in federal prison.
Fu’s wife, Cheri L. Shyu (also known as Cheri Fu), 61, was sentenced on March 4 to three years in federal prison.
In addition to the prison terms, United States District Judge Cormac J. Carney ordered to Fus to pay $4.7 million in restitution.
The Fus owned Anaheim-based Galleria USA, Inc., which imported home decor items manufactured in China. The Fus obtained a $130 million revolving line of credit for Galleria from a consortium of seven banks. In connection with that revolving line of credit, the couple overstated by tens of millions of dollars the accounts receivables of the company—lies they told the banks in order to continue borrowing funds under the revolving line of credit, according to court documents. When they pleaded guilty last year, the Fus also admitted to falsifying in Galleria’s computer system the accounts receivable amounts by a factor of 10 or more times the actual amount purchased to support the exaggerated numbers and hide Galleria’s true financial status.
“Bank fraud is not a victimless crime, as it has detrimental effects on both creditors and consumers,” said United States Attorney André Birotte Jr. “The Fus plundered a consortium of banks, which deprived legitimate customers from having access to the those funds and caused the financial institutions to suffer millions of dollars in losses. The prison sentences issued to this couple demonstrate our resolve to hold fraudsters accountable for their crimes.”
The banks suffered losses of $4.7 million on the revolving line of credit from October 2008 to July 2009.
This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Bureau of Investigation, and the United States Secret Service.
“At a time when taxpayers were bailing out Bank of America and United Commercial Bank with TARP funds, Thomas and Cheri Fu defrauded those banks and others out of nearly $5 million,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “The Fus fraudulently obtained funds from the TARP banks and other banks using a second set of books that overstated accounts receivable. They lived comfortably off the money, buying property and putting their daughter through college, when many taxpayers who funded the bailout were tightening their belts. Illegally profiting from the TARP bailout is reprehensible and will be met with swift justice by SIGTARP and our law enforcement partners.”
SIGTARP investigates fraud, waste, and abuse in connection with the Troubled Asset Relief Program (TARP). To report suspected illicit activity involving TARP, call the SIGTARP Hotline at 1-877-SIG-2009 (1-877-744-2009).

Fort Smith Man Sentenced to 24 Months for Placing Harassing Telephone Calls to Tennessee Wildlife Resources Agency Officers

FORT SMITH, AR—Conner Eldridge, United States Attorney for the Western District of Arkansas, announced today that James Mitchell Hicks, age 33 of Fort Smith, Arkansas, was sentenced to 24 months in prison and one year of supervised release for placing harassing telephone calls to officers of the Tennessee Wildlife Resources Agency. Chief United States District Judge P. K. Holmes, III presided over the sentencing, which took place in federal court in Fort Smith.
According to court records, Hicks was involved in a boating accident on Tims Ford Lake near Lynchburg, Tennessee, on July 31, 2010. The accident was investigated by two Tennessee Wildlife Resources Agency officers, and Hicks was charged with boating under the influence. After the accident, Hicks began making telephone calls to the agents who investigated the accident, requesting paperwork pertaining to the accident. The officers directed Hicks to the boating and law enforcement division of their office and were advised by their supervisor not to answer any more of Hicks’s phone calls. Hicks continued to place calls to the officers and left numerous harassing messages over a six-month period. One officer received approximately 52 calls from Hicks.
Hicks was originally charged in an eight-count indictment on April 10, 2012. The United States filed a 13-count superseding indictment on October 11, 2012. On November 1, 2012, Hicks pleaded guilty to count one of the superseding indictment.
This case was investigated by the Federal Bureau of Investigation and the Tennessee Wildlife Resource Agency. Assistant United States Attorney Mark Webb prosecuted the case for the United States.

FBI Arrests Virginia Murder Suspect in Huntsville

BIRMINGHAM—Richard D. Schwein, Jr., Special Agent in Charge (SAC) of the Birmingham Division of the Federal Bureau of Investigation (FBI), announced today that Kelvin Kennedy Parker, II, age 23, was arrested at approximately 6:45 a.m. on March 14, 2013, without incident in connection with an unlawful flight to avoid prosecution (UFAP) murder charge issued in the Eastern District of Virginia. Parker was arrested at a residence in the 3600 block of Judd Avenue in Huntsville, Alabama, and was found hiding under the stairs of the home at the time of his arrest.
According to the criminal complaint and affidavit filed against Parker, he is from Roanoke Rapids, North Carolina, and fled to Virginia and is wanted on a warrant issued by the Sussex County District Court in connection with a charge of murder in the first-degree.
Parker will make his initial appearance before a United States Magistrate Judge and will be placed in the custody of United States Marshals office in Huntsville until his extradition to Virginia.
SAC Schwein expressed his sincere appreciation to the Huntsville Police Department for their assistance in this arrest.
The public is reminded that a criminal complaint is only a charge. It is the government’s responsibility to prove a defendant guilty beyond a reasonable doubt at trial.

Judge Orders Prison and $308,554 Restitution for Former Bank Officer

BIRMINGHAM—A federal judge today sentenced a former officer at a Birmingham bank to six months in prison, followed by six months home detention, plus three years of supervised release for a five-year fraud through which she stole almost $275,000 from her employer, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
U.S. District Judge R. David Proctor sentenced Allison McClellan, 40, of Odenville, on one count of computer fraud and ordered her to pay $308,554 in restitution to SouthPoint Bank where she worked as its loan operations manager. McClellan had agreed to pay that amount in restitution as part of her plea agreement with the government. She pleaded guilty to the computer fraud in November. The restitution reflects the $274,775 she stole from SouthPoint, plus the $33,779 the bank spent in investigative and legal fees related to the crime.
McClellan worked at SouthPoint from 2005 to 2012. She used her computer access as the bank’s loan operations manager to defraud the bank between 2007 and 2012.
According to her plea agreement, she used her computer access to fraudulently increase the home equity line of credit she and her husband obtained from the bank in February 2006. She increased the credit line 69 times between October 2007 and April 2012, raising it from $65,000 to $328,000. McClellan also fraudulently increased a personal line of credit she obtained from SouthPoint in 2005, raising it 11 times in 2009 and 2010 to reach a $15,000 credit line.
The FBI investigated the case, and it was prosecuted by Assistant U.S. Attorney Henry Corneliu

Veteran D.C. Defense Attorney Charles F. Daum Sentenced to Serve 63 Months in Prison for Obstruction of Justice

WASHINGTON—Veteran District of Columbia defense attorney Charles F. Daum was sentenced today to serve 63 months in prison on three counts of obstructing justice in a federal drug trafficking case, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Chief Cathy L. Lanier of the Washington, D.C. Metropolitan Police Department; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Daum, 66, of Arnold, Maryland, was sentenced before Senior U.S. District Judge Gladys Kessler in the District of Columbia. In addition to Daum’s prison sentence for obstruction of justice, he was sentenced to a concurrent term of 60 months in prison on one count of conspiracy to obstruct justice and two counts of subornation of perjury. Daum was also sentenced to serve one year of supervised release.
“Daum went to extraordinary lengths to purposefully subvert the legal process in his client’s case,” said Acting Assistant Attorney General Raman. “He fabricated evidence and knowingly presented perjured testimony, betraying his profession and our system of justice. Today’s significant prison sentence is appropriate punishment for his crimes.”
“Through a scheme of his own design, Mr. Daum purposefully concocted false evidence and submitted it to the court,” said Assistant Director in Charge Parlave. “Today’s sentence demonstrates our diligence in protecting our judicial system from those individuals who attempt to violate its integrity.”
The charges resulted from Daum’s representation of Delante White, who was indicted in March 2008 by the U.S. Attorney’s Office for the District of Columbia on federal drug trafficking charges following the execution of a search warrant on February 23, 2008, at the home of White’s grandmother. After a six-week bench trial, Judge Kessler found beyond a reasonable doubt that after entering his notice of appearance in the case, Daum devised a plan to obtain and produce false evidence designed to convince the jury that the drugs seized by the police on February 23, 2008, did not belong to White. Daum enlisted the help of co-conspirators Daaiyah and Iman Pasha, whom Daum had hired as investigators, and others to help carry out his scheme. Following Daum’s directions, the co-conspirators obtained duplicates of several items that were seized as evidence during the execution of the search warrant, including a digital scale, a razor blade, plates, an Adidas shoe box, and a pair of Gucci boots. Once those items were obtained, Daaiyah and Iman Pasha made arrangements to take staged photographs of White’s brother depicted with the items, while apparently “cutting” “rock cocaine” in order to make it appear as though the seized drugs actually belonged to the brother. Daum later submitted the staged photographs, as well as other fabricated items, as evidence during White’s criminal trial. Judge Kessler also found that Daum solicited and presented the perjured testimony of two witnesses, in order to further obstruct and impede the administration of justice.
Private investigators Daaiyah Pasha, 62, of Washington, D.C., and Iman Pasha, 33, of Springfield, Virginia, were also sentenced today by Judge Kessler. Daaiyah Pasha was sentenced to serve three months in prison and three years of supervised release. Iman Pasha was sentenced to serve three months’ probation.
The case was prosecuted by Trial Attorneys Darrin L. McCullough, Donnell Turner, and Tritia Yuen of the Criminal Division’s Narcotic and Dangerous Drug Section. The case was investigated by the Washington, D.C. Metropolitan Police Department; the FBI; and the U.S. Attorney’s Office for the District of Columbia.

District Man Found Guilty of Murder and Other Charges in 2011 Slaying in Northeast Washington

WASHINGTON—Terry Johnson, 23, of Washington, D.C., has been found guilty by a jury of second-degree murder while armed and related weapons charges for a slaying that took place in 2011 in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Johnson was found guilty on March 8, 2013, following a trial in the Superior Court of the District of Columbia. He is to be sentenced on May 8, 2013, by the Honorable Herbert B. Dixon, Jr. Johnson, who has previous felony convictions, faces enhanced penalties that could lead to a life prison sentence for these crimes.
According to the government’s evidence, the murder took place at about 11:45 a.m. on October 26, 2011, in the 5200 block of Clay Street NE. Johnson had an ongoing feud with the victim, Andre Wiggins, 19, in which the two men on multiple occasions ambushed and fired gunshots at one another. The feud stemmed from Mr. Wiggins’ then current romantic relationship with Johnson’s ex-girlfriend.
On October 26, 2011, Johnson was told that Mr. Wiggins followed one of Johnson’s children and the mother of that child (not the woman at the center of the feud) as they walked in the neighborhood. Johnson was infuriated upon hearing this and promised to “take care of it.” Johnson went to Mr. Wiggins’ neighborhood, positioned himself in an alley, and waited for his arrival. Upon seeing Mr. Wiggins, Johnson, who was armed and wearing a mask, ran him down, firing multiple times and leaving Mr. Wiggins dead in the street.
During the trial, the government presented cell tower records, text messages, and other evidence linking Johnson to the murder. Among other things, the defendant threatened a jailhouse witness while en route to court in the final days of trial.
In announcing the verdicts, U.S. Attorney Machen praised those who worked on the case, including detectives and officers from the Metropolitan Police Department’s Homicide Unit and Sixth Police District. He also expressed appreciation to the FBI special agent who worked on the case as well as those who handled the case for the U.S. Attorney’s Office, including Litigation Technology Specialists Leif Hickling and Paul Howell; Victim Witness Security Specialist Katina Adams; Victim Advocate Tamara Ince; Paralegal Specialist Kendra Johnson; and Investigator Durand Odom. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Reagan Taylor and Michelle Bradford, who prosecuted the case.