Justin Worley to Plead Guilty in Federal Court to Nine Counts of Bank Robbery

PROVIDENCE, RI—According to documents filed in U.S. District Court in Providence today, Justin L. Worley, 34, has agreed to plead guilty in federal court to robbing eight banks in Rhode Island and one in Massachusetts, announced United States Attorney Peter F. Neronha.
According to court documents, Worley will plead guilty to nine counts of bank robbery. Worley will admit to the court that on nine separate occasions he entered financial institutions, and, using implied or explicit threats, including the threat of death in at least four of the robberies, he robbed the banks of a total of $32,633.
According to the documents, Worley will admit to robbing eight financial institutions in Rhode Island between April 16, 2012, and September 18, 2012, and to robbing one in Seekonk, Massachusetts, on February 23, 2012.
Worley was arrested at a motel in Seekonk on September 19, 2012, by East Providence, Rhode Island and Seekonk, Massachusetts Police Departments.
The bank robberies were investigated by the Barrington, Cranston, East Providence, North Providence, Pawtucket, Seekonk, and Warwick Police Departments and the FBI.
The maximum statutory penalty for bank robbery is 20 years in federal prison; a fine of up to $250,000; and a term of supervised release of three years.
Worley has been detained in federal custody since November 15, 2012.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Paul F. Daly, Jr

Former Parking Lot Attendant Sentenced to 27 Months for Stealing Nearly $900,000 in Fees from Udvar-Hazy Center

ALEXANDRIA, VA—Freweyni Mebrahtu, 46, of Sterling, Virginia, was sentenced today to 27 months in prison, followed by three years of supervised release, for stealing nearly $900,000 in visitor parking fees when she was employed by Parking Management Inc. (PMI), the company contracted to manage parking services at the Smithsonian Institution’s Steven F. Udvar-Hazy Center in Chantilly, Virginia.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Scott S. Dahl, Inspector General for the Smithsonian Institution; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge T.S. Ellis, III.
Mebrahtu pled guilty on November 1, 2012, to theft of public money. At sentencing, she was ordered to pay $895,680 in restitution and to forfeit an equal amount in the form of a money judgment in favor of the United States.
Mebrahtu was a full-time employee of PMI, which managed the 2,000-vehicle parking lot at the Udvar-Hazy Center. Over the course of three years, Mebrahtu stole cash entrance fees paid by tens of thousands of museum visitors, taking upwards of $4,000 in a single day by failing to hand out parking ticket stubs to paying customers and by unplugging an electronic vehicle counter that had been installed to measure vehicle traffic. At the end of each shift, Mebrahtu would submit a daily work summary to PMI that repeatedly under-reported the true number of vehicles that had entered the parking lot through her lane. These falsified PMI reports were provided to the Smithsonian. The total loss due to her theft is calculated at $895,680. Based on the $15 entrance fee, it is estimated that Mebrahtu stole from 59,712 visitor vehicles over the course of her crime.
Instead of reporting the thefts, Mebrahtu shared advice with co-workers about how to steal money from the museum. A co-worker, Meseret Terefe, 37, of Silver Spring, Maryland, was sentenced on January 18, 2013, to 20 months in prison.
The investigation was initiated by the Smithsonian Office of the Inspector General and jointly investigated by the FBI’s Washington Field Office. Assistant United States Attorney Jasmine Yoon and Special Assistant United States Attorney James McDonald are prosecuting the case on behalf of the United States.
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.

Local Businessman Charged with Wire Fraud for Using Investors’ Funds for His Personal Use

ATLANTA—The co—founder of Geometrix has been charged in a federal criminal information with defrauding business investors of approximately $800,000. Kevin Patrick Loughery, 49, of Atlanta, Georgia, who co-founded Geometrix in 2007, was arraigned today before United States Magistrate Judge Alan J. Baverman on the federal charge of wire fraud and was released on bond.
“Instead of keeping his business investors’ funds secure in an escrow account, the defendant is charged with using hundreds of thousands of dollars to support his lavish lifestyle,” stated United States Attorney Sally Quillian Yates. “The charges against Loughery reflect our ongoing commitment to crack down on investment fraud.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “When the defendant diverted investor funds to his personal account, he left behind his multiple investors-turned-victims now suffering substantial financial losses while he pursued a life of affluence. The FBI remains well-suited and committed to investigating such cases of wire fraud that often significantly impact many victims.”
According to United States Attorney Yates, the charges, and other information presented in court: In 2008, Kevin Patrick Loughery began soliciting investments from his friends and business associates in Geometrix, a Georgia start-up company that he co-founded in 2007. Loughery assured investors both telephonically and via e-mail that their investment would remain in escrow until the completion of Geometrix’s issuance of stock and accompanying documentation.
In an e-mail to one such investor, Loughery assured the investor that the money would be kept in an escrow account, and Loughery instructed the investor to wire the money into such an account. However, the money never went to an escrow account because Loughery’s wiring instruction was not for an escrow account but rather was for Loughery’s own account for a separate business, KLM Investments, of which Loughery was the sole proprietor. The investor wired over $300,000 into the account. Loughery then sent the investor an e-mail stating that the investor would receive 400,000 shares of Geometrix for his investment. The investor never received those shares.
In total, Loughery solicited $780,000 in investments from various investors that were supposed to be kept in escrow but instead were spent by Loughery. Loughery subsequently declared bankruptcy.
This case was investigated by special agents of the Federal Bureau of Investigation.
Assistant United States Attorney Karlyn J. Hunter is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at USAGAN.Pressemails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

Dickinson County Woman Sentenced for Embezzling from Credit Union

TOPEKA, KS—A Dickinson County women has been sentenced to 36 months in federal prison for embezzling from a credit union where she worked, U.S. Attorney Barry Grissom said today. She also was ordered to pay $817,000 in restitution.
Pamela Emig, 48, Solomon, Kansas, pleaded guilty to one count of embezzlement. In her plea, she admitted that from 2005 to 2011, she embezzled $817,000 while she was working for Enterprise Credit at 201 Factory in Enterprise, Kansas.
Emig admitted she kited checks between accounts under her control at the credit union to cover up embezzlements and increasingly larger shortages. She would make a large deposit toward the end of the month and include the deposit in the general ledger, but the actual deposit would not be sent to the corporate checking account until the middle of the next month. At that time, another larger check would be drafted out of another account at the credit union.
Grissom commended the FBI, Assistant U.S. Attorney Richard Hathaway, and Assistant U.S. Attorney Christine Kenney for their work on the case.

Latin Kings’ Second-in-Command Sentenced to 40 Years in Prison for RICO Conspiracy and Related Gang Crimes

CHICAGO—The second highest-ranking leader nationwide of the Latin Kings street gang was sentenced to 40 years in federal prison after being convicted at trial in 2011 of racketeering conspiracy (RICO) and related charges involving narcotics trafficking and violence that plagued numerous neighborhoods on the city’s north, south, and west sides. The defendant, Vicente Garcia, Jr., 35, the “Supreme Regional Inca” of the Almighty Latin King Nation, who oversaw the day-to-day illegal activities of all factions of the gang with some 10,000 members in Illinois alone, has been in federal custody since late 2008 and must serve at least 85 percent of his sentence.
The sentence was imposed Friday by U.S. District Judge Charles Norgle, who also ordered five years of supervised release after Garcia’s prison term ends.
Garcia, also known as “DK” or “Disciple Killer,” together with Augustin Zambrano, the leader, or “Corona,” of the Latin Kings, and two additional defendants were found guilty in April 2011 of running a criminal enterprise to enrich themselves and others through drug trafficking and preserving and protecting their power, territory, and revenue through acts of murder, attempted murder, assault with a dangerous weapon, extortion, and other acts of violence.
“This sentence holds Garcia accountable for the barbaric enterprise known as the Latin Kings and his role in murder, attempted murder, shootings, beatings, drug trafficking, and other crimes,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
Zambrano, 52, was sentenced to 60 years in prison in January 2012. Two other co-defendants convicted at the same trial also received substantial prison terms. Jose Guzman, a former “Nation Enforcer” in the 26th Street, or Little Village, faction, was sentenced to 35 years in prison, and Alphonso Chavez, the “Inca,” or leader of the gang’s 31st and Drake faction, was sentenced to 30 years in prison. Another co-defendant, Fernando “Ace” King, who preceded Garcia as Supreme Regional Inca and pleaded guilty, was sentenced in October 2011 to 40 years in prison.
Trial evidence included audio and video recordings of three beatings inflicted upon gang members for violating the rules and testimony documenting three murders and 20 shootings in the Little Village area. In addition to RICO conspiracy, Garcia was convicted of assault with a dangerous weapon and using a firearm during a violent crime.
Garcia was among a total of 31 co-defendants who were indicted in September 2008 or charged in a superseding indictment in October 2009. Of those 31 defendants, 24 pleaded guilty, four were convicted at trial, and three remain fugitives. From its origin and base in the west side Little Village community, the Latin Kings spread throughout Chicago and Illinois and established branches in other states, where local leaders acted with some autonomy but adhered to the rules and hierarchy of the Chicago gang, according to the evidence in the five-week federal trial.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, together with Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation, and Larry Ford, Special Agent in Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Chicago Police Department, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) in Chicago, and the Cook County Sheriff’s Police also had significant roles in the investigation, which was conducted through the federal High Intensity Drug-Trafficking Area (HIDTA) Task Force and under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
In late 2006, ATF agents led an investigation that resulted in federal drug trafficking and firearms charges against 38 Latin Kings members and associates. In 2008, the FBI led an investigation that resulted in state and federal charges against 40 Latin Kings members and associates, including a dozen of the Zambrano co-defendants. In total, more than 80 Latin Kings members and associates have faced state or federal charges since 2006. The convictions result from a sustained, coordinated effort by federal law enforcement agencies, working together with the Chicago Police Department and other state and local partners, to dismantle the hierarchy of the Latin Kings and other highly organized, often violent Chicago street gangs.
Garcia and Zambrano were the highest-ranking Latin Kings to be convicted and sentenced since Gustavo “Gino” Colon, who also holds the title of “Corona,” was sentenced to life in prison in 2000.
The government was represented by Assistant U.S. Attorneys Andrew Porter, Nancy DePodesta, and Tinos Diamantatos.

Phoenix Man Pleads Guilty to Stalking a Woman in Maryland

BALTIMORE—David Charles Richards, age 49, of Phoenix, Arizona, pleaded guilty today to stalking a woman in Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Richards’ guilty plea, from December 2006 through November 2011, Richards used the Internet, telephone, e-mail, and the U.S. mail to stalk a woman in Maryland, including threatening to kill the woman. Richards and the woman had a prior romantic relationship, which the woman described as both troubled and violent.
According to Richards’ plea agreement, after not having any contact with the victim for almost 15 years, in June 2006, Richards contacted the victim’s sister telling her that he still loved the victim but wanted to hurt her. Beginning in July 2006, and during each subsequent year, the victim sought and was granted protective orders forbidding Richards to contact her. On December 11, 2006, the victim discovered that a website had been created in her name, which included a countdown clock to the expiration of the protective order the victim had taken out against Richards and other threatening material. In March 2008, Richards attempted to purchase a firearm in Arizona but failed to disclose that he was subject to a protective order. He was denied purchase of a firearm by ATF due to his prohibited person status. In December 2009, Richards mailed a threatening note, along with torn and shredded pieces of the protective orders that had been served upon him, to the victim’s home. Through January 2010, Richards left the victim at least eight voicemails totaling one hour and 40 minutes in length. Richards continued to post threats on websites directed at the victim, including as recently as November 2011. Richards’ long campaign of harassment and threats placed the victim in fear of death and serious harm.
Richards faces a maximum sentence of five years in prison for stalking. U.S. District Judge Ellen L. Hollander has scheduled sentencing for June 24, 2013, at 11:00 a.m. Richards remains detained.
United States Attorney Rod J. Rosenstein praised the FBI agents in Baltimore and Phoenix for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who is prosecuting the case.

Phoenix Man Pleads Guilty to Stalking a Woman in Maryland

BALTIMORE—David Charles Richards, age 49, of Phoenix, Arizona, pleaded guilty today to stalking a woman in Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Richards’ guilty plea, from December 2006 through November 2011, Richards used the Internet, telephone, e-mail, and the U.S. mail to stalk a woman in Maryland, including threatening to kill the woman. Richards and the woman had a prior romantic relationship, which the woman described as both troubled and violent.
According to Richards’ plea agreement, after not having any contact with the victim for almost 15 years, in June 2006, Richards contacted the victim’s sister telling her that he still loved the victim but wanted to hurt her. Beginning in July 2006, and during each subsequent year, the victim sought and was granted protective orders forbidding Richards to contact her. On December 11, 2006, the victim discovered that a website had been created in her name, which included a countdown clock to the expiration of the protective order the victim had taken out against Richards and other threatening material. In March 2008, Richards attempted to purchase a firearm in Arizona but failed to disclose that he was subject to a protective order. He was denied purchase of a firearm by ATF due to his prohibited person status. In December 2009, Richards mailed a threatening note, along with torn and shredded pieces of the protective orders that had been served upon him, to the victim’s home. Through January 2010, Richards left the victim at least eight voicemails totaling one hour and 40 minutes in length. Richards continued to post threats on websites directed at the victim, including as recently as November 2011. Richards’ long campaign of harassment and threats placed the victim in fear of death and serious harm.
Richards faces a maximum sentence of five years in prison for stalking. U.S. District Judge Ellen L. Hollander has scheduled sentencing for June 24, 2013, at 11:00 a.m. Richards remains detained.
United States Attorney Rod J. Rosenstein praised the FBI agents in Baltimore and Phoenix for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who is prosecuting the case.

Walker County Man Sentenced to Two Years in Prison for Disaster Fraud

BIRMINGHAM—A federal judge today sentenced a Walker County man to two years in prison for fraudulently claiming $30,200 in federal disaster relief funds following the April 2011 tornadoes across North Alabama, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein, Jr., and Department of Homeland Security, Office of the Inspector General Special Agent in Charge James E. Ward.
Donnie Lee Burleson, 38, must pay $30,200 in restitution to the Federal Emergency Management Agency and serve five years of supervised release after completing his prison term, according to the sentence imposed by U.S. District Judge Sharon Lovelace Blackburn.
Burleson pleaded guilty in June to one count of disaster benefit fraud for falsely representing to FEMA on May 3, 2011, that he owned a residence in Hackleburg that was destroyed by an April 27, 2011 tornado. Based on Burleson’s fraudulent claim, FEMA paid him $30,200 in disaster relief benefits. The federal funds were paid in connection with the presidential disaster declaration for Alabama that followed the deadly April tornadoes that raked the state, destroying communities in Tuscaloosa, Birmingham, Hackleburg, and elsewhere.
Burleson, through his false claim to FEMA, fraudulently diverted disaster benefits to himself that were meant for honest citizens genuinely affected by the storm, the government said in its Sentencing Memorandum. “He sought to parlay the community’s devastation and distress into a financial windfall for himself,” the memo said.
The FBI and DHS-OIG investigated the case, which was prosecuted by the U.S. Attorney’s Office for the Northern District of Alabama.

Two Suwanee Correctional Institute Inmates Indicted for Making Hoax Anthrax Threats

JACKSONVILLE—United States Attorney Robert E. O’Neill announces the return by a grand jury of two separate indictments charging Randy C. Johnson (22) and Johnell Ford (21), both inmates of the Florida Department of Corrections, with sending hoax anthrax letters to sitting judges. If convicted, they each face a maximum penalty of five years in federal prison. The federal prison sentences may run consecutive to sentences they are currently serving in state custody.
According to the indictment charging Johnson, in January 2012, Johnson allegedly sent an envelope containing a threatening letter and a substance purporting to be anthrax to a sitting United States Magistrate Judge in Tampa. According to the indictment charging Ford, in August 2012, Ford allegedly sent a threatening letter and a substance purporting to be anthrax to a sitting Florida circuit judge in Tampa. Both individuals were inmates of the Suwannee Correctional Institute at the time of making the hoax threats.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Federal Bureau of Investigation, the Florida Highway Patrol, and the Jacksonville Sheriff’s Office. They will be prosecuted by Assistant United States Attorney Mac D. Heavener, III.

San Luis Obispo Police Officer Arrested on Federal Bribery Charges

LOS ANGELES—A detective with the San Luis Obispo Police Department was arrested this morning after being charged in a bribery scheme in which he allegedly took cash and narcotics from two individuals. In return, the police officer allegedly provided these “cooperating witnesses” with narcotics for their own use, as well as fake drugs to sell to drug dealers.
Cory Pierce, 39, of Arroyo Grande, was taken into custody this morning without incident by agents with the Federal Bureau of Investigation. Pierce was charged with one count of bribery in a criminal complaint filed yesterday in United States District Court in Los Angeles.
According to the affidavit in support of the complaint, Pierce is a six-year veteran of the San Luis Obispo Police Department who was most recently assigned to a narcotics task force with the San Luis Obispo County Sheriff’s Office. The complaint describes how Pierce cultivated two sources—identified in the complaint only as “CW1” and “CW2”—who have since cooperated with the FBI’s investigation.
After CW2 was arrested for heroin possession in 2011, CW2 and his girlfriend, CW1, agreed to cooperate with Pierce. But soon after they agreed to work with the police officer, Pierce made unusual requests for the informants to bring him narcotics. As the requests continued, Pierce allegedly provided placebo pain pills and real narcotics to CW1 and CW2. Pierce exchanged those pills and drugs for cash and various narcotics brought to him by the CWs, including oxycodone, heroin, and drugs that treat opiate addition, according to the complaint, which goes on to state that Pierce on several occasions provided CW1 with methamphetamine that was still in police evidence bags. The complaint alleges that CW1 obtained prescriptions for pain pills from her doctor and from emergency rooms to give to Pierce and that Pierce would provide her with money to purchase the prescriptions.
The complaint alleges that Pierce used his position as a police officer to influence CW2’s probation officer to perform little or no supervision of CW2 and informed CW2 that he could “work off” his heroin possession charge by cooperating with Pierce. The complaint goes on to allege that Pierce informed the CWs about ongoing police investigations, including where best to purchase narcotics and which drug houses to stay away from, so that they would not be caught purchasing drugs.
Pierce allegedly had the CWs set up a meeting with a drug dealer, and, following the meeting, Pierce pulled over the dealer’s vehicle over at gunpoint, seized morphine pills, and let the dealer go without making an arrest.
When the CWs advised Pierce that the drug dealers to whom they had sold the placebo pills realized they had received a deceptive product and wanted revenge, Pierce asked for their identities and indicated he would “take care of it.”
Last month, CW2 began cooperating with a federal investigation and recorded multiple conversations with Pierce. During those recorded conversations, Pierce allegedly instructed CW2 to sell placebo pills to a drug dealer for $11,000, money that was to be split between Pierce and CW2. On multiple occasions, Pierce asked CW2 for Suboxone, which is used treat opiate addictions, indicating that he was personally using the drug, according to the complaint affidavit.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Pierce will have an initial appearance before a United States Magistrate Judge later this afternoon in United States District Court in Los Angeles.
If convicted of the bribery charge alleged in the criminal complaint, Pierce would face a statutory maximum penalty of 10 years in federal prison.
This ongoing investigation was conducted by the FBI with the assistance of the San Luis Obispo Police Department and the San Luis Obispo Sheriff’s Department.

Identity Thieves Sentenced for Taking Over Bank Accounts

ATLANTA—A total of five defendants were sentenced today and last Thursday for using fake driver’s licenses to withdraw almost $1.5 million from victims’ bank accounts. The defendants were convicted of conspiracy, bank fraud, and aggravated identity theft after pleading guilty.
United States Attorney Sally Quillian Yates said, “The defendants tormented dozens of innocent victims who went to the bank only to discover that their accounts had been drained and identities stolen. The sentences imposed in this case appropriately reflect the severe damage done by identity thieves.”
“This case illustrates the negative impact that bank fraud and aggravated identity theft have on the citizens of the United States. The Secret Service will continue to aggressively pursue, with our federal, state, and local law enforcement partners, anyone that violates the trust that the public has in our economic system,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “The defendants will now have plenty of time to contemplate the harm done by their aggressive criminal enterprise. The FBI will continue to work with its various law enforcement partners in protecting financial institutions and their account holders from the criminal activities of identity thieves.”
According to United States Attorney Yates, the charges, and other information presented in court: From February 2010 through August 2011, Gafar O. Kosoko Balogun ran an identity theft scheme in Atlanta that targeted various banks, including Bank of America, Wells Fargo, SunTrust, and BB&T. Balogun first obtained individuals’ financial account information, typically over the Internet from public websites. He went to credit reporting sites and guessed the answers to individuals’ security questions to gain access to their credit reports and went to other sites to collect business information and tax identification numbers. Balogun would then call the bank and impersonate the true account holder to find out the account balance of the victim.
Balogun provided the account information to Donish Adkins, Orlon Hall, Christian Okafor, and Wayne Cunningham, who in turn recruited “runners” to go into the banks and withdraw money from the victims’ accounts. Balogun supplied fake driver’s licenses to the runners, which they used to impersonate the account holders while in the banks. In addition to recruiting co-conspirators, Cunningham also entered banks and made withdrawals from victims’ accounts. After paying the runners about $500 per transaction, the defendants shared the remainder of the criminal proceeds. The investigation has linked over $2.7 million in actual and attempted withdrawals from over 60 accounts to the scheme. The defendants succeeded in getting over $1.4 million from these accounts.
United States District Judge Thomas W. Thrash, Jr. sentenced Balogun, Adkins, Hall, and Cunningham on Thursday, January 31, and sentenced Okafor today:

• Gafar O. Kosoko Balogun, 30, of Atlanta, Georgia, was sentenced to six years, six months in prison, to be followed by three years of supervised release, and ordered to pay $1,485,660.68 in restitution.
• Donish Adkins, 35, of Johns Creek, Georgia, was sentenced to five years, three months in prison, to be followed by three years of supervised release, and ordered to pay $527,293.31 in restitution.
• Orlon Hall, 32, of Alpharetta, Georgia, was sentenced to five years, 10 months in prison, to be followed by three years of supervised release, and ordered to pay $698,943.31 in restitution.
• Wayne Cunningham, 53, of College Park, Georgia, was sentenced to seven years, three months in prison, to be followed by three years of supervised release, and ordered to pay $46,860 in restitution.
• Christian Okafor, 36, of Duluth, Georgia, was sentenced to three years, 10 months in prison, to be followed by three years of supervised release, and ordered to pay $97,030.99 in restitution.

This case was investigated by special agents of the United States Secret Service and Federal Bureau of Investigation.
Assistant United States Attorney Stephen H. McClain and former Assistant United States Attorney Nick Oldham prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at USAGAN.Pressemails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

Maryland Man Convicted for Armed Robberies of Apple Delivery Drivers

ALEXANDRIA, VA—Khalil Kenyon Blackman, 31, of District Heights, Maryland, was convicted yesterday of conspiring to commit three armed robberies of truck drivers who were delivering Apple products to area stores.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Ken Cuccinelli, II, Attorney General of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Lt. Colonel James A. Morris, Acting Fairfax County Chief of Police, made the announcement after a bench trial before United States District Judge Leonie M. Brinkema.
Blackman was convicted of conspiracy to commit robbery, which carries a maximum penalty of 20 years, and brandishing a firearm, which carries a mandatory minimum of seven years and a maximum penalty of life imprisonment. Sentencing is scheduled for April 26, 2013.
According to court records and evidence at trial, Blackman and others conspired to carry out three armed robberies of delivery truck drivers hauling Apple products. On February 11, 2011, Blackman and his co-conspirators robbed a delivery truck driver in Prince George’s County, Maryland. Thereafter, Blackman took the majority of the products and sold them to another person and then distributed the proceeds among his conspirators. Blackman also conspired with others to carry out two other robberies—on June 15, 2011, in Fairfax County, Virginia, and on October 30, 2011 in Prince George’s County, Maryland—and sold the stolen products from these robberies to others for the benefit of the conspirators. The total loss to Apple was more than $130,000.
The investigation was conducted by FBI’s Washington Field Office and the Fairfax County Police Department. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Adam B. Schwartz are prosecuting the case on behalf of the United States.
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.

Oceanside Man Arrested in Connection with Carlsbad Bank Robbery Investigation

San Diego FBI Special Agent in Charge, Daphne Hearn, announces the arrest of Edward Jones Inzunza, age 30, of Oceanside, California. Inzunza was arrested as a result of the investigation into the robbery of the Comerica Bank at 2626 El Camino Real, in Carlsbad, California, that occurred on Friday, January 4, 2013.
Inzunza was arrested on Friday, February 1, 2013, near the intersection of Lewis and Thunder, in Vista, California, by San Diego County Sheriff’s deputies during a vehicle stop. The deputies were working in coordination with the FBI and Carlsbad Police Department.
According to the federal complaint filed with the U.S. District Court, Southern District of California, Inzunza is charged with one count of violating Title 18, United States Code, Section 2113(a), bank robbery. Inzunza is charged with robbing the Comerica Bank at 2626 El Camino Real in Carlsbad, California, on Friday, January 4, 2013.
According to the complaint, on Friday, January 4, 2013, at approximately 4:30 p.m., the Comerica Bank, 2626 El Camino Real in Carlsbad, California, was robbed by an unknown male, subsequently identified as Edward Jones Inzunza. At the time of the robbery, Inzunza allegedly approached the victim teller and ordered the teller to raise his hands and to give him all the money he had in his drawer. Inzunza kept one hand in his sweat jacket pocket making some bank employees believe he had a gun in his pocket. Inzunza grabbed the money and placed it inside of his sweat jacket front pocket. Following the robbery, Inzunza walked across the parking lot and was observed entering an early 2000’s white Toyota T-100 extended cab pickup truck,
On Monday, January 7, 2013, the FBI issued a news release to the media and the public concerning the robbery of the Comerica Bank. This news release included bank surveillance photographs of the bank robber.
On Monday, January 28, 20103, an anonymous person reported to San Diego County Crime Stoppers that he/she saw bank surveillance photographs on the news and believed the Comerica Bank robber was Inzunza. This information, along with additional information developed through follow-up investigation, led to federal bank robbery charges being filed against Inzunza.
Following his arrest on Friday, February 1, 2013, Inzunza was booked into the Bureau of Prisons (BOP), Metropolitan Correctional Center (MCC), San Diego, California. Inzunza is expected to have his initial appearance before a U.S. Magistrate Judge on or about Monday, February 4, 2013.
This robbery is being investigated by the Carlsbad Police Department, San Diego County Sheriff’s Department, and the FBI. This case is being prosecuted by the U.S. Attorney’s Office, Southern District of California, and San Diego, California.
An arrest itself is not evidence that the defendant committed crimes charged. The defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.

FBI, Technical Experts Now Four Weeks into Linden Excavation Effort

LINDEN, CA—Twenty-five days into excavation efforts on agricultural property in Linden, California, FBI personnel and technical experts have dug to a depth of approximately 65 feet below grade within the old well site. Thus far, no human remains have been discovered.
Progress has continued at a rate of approximately five to seven feet each day of operations. Excavation of the soft, sandy fill dirt within the well has proceeded relatively smoothly. All fill dirt is conveyed to the surface to be sifted, ensuring that no materials are overlooked. The hard, clay-laden soil of the native land surrounding the well has proved to be the most challenging. A safety area around the well must be excavated in tandem with well excavation to ensure that the teams have enough room to operate safely and respond to both possible evidence and emergencies.
“Despite the risks and challenges, the team involved in this effort remains focused on returning victims home to families,” said Herbert M. Brown, Special Agent in Charge of the Sacramento Division of the FBI. “The investment of time and resources in this extensive excavation effort was not made in haste or absence of thorough investigation and careful consideration of available information. We thank the public and the many families of the missing who have shown tremendous patience and support while we remain focused on the task at hand.”
This site is the second well site to be excavated along Flood Road. In January 2012, San Joaquin County Sheriff’s Office excavated a well on an adjacent parcel. These efforts resulted in the recovery of three females and one fetus, victims of convicted killer Wesley Shermantine and Loren Herzog.
The collaborative team of FBI personnel and technical experts began preparation at the well site Linden on January 7, 2013, after several months of investigative work and coordination. Hand excavation of the well contents began on January 17, 2013, after the site was cleared and safety devices were set into place.

FBI, Marshals Service Announce Reward in Search for Missing Indiana Inmate

Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation (FBI), and Darrel K. McPherson, U.S. Marshal for the Northern District of Illinois, have announced a reward offer in connection with the search for Steven L. Robbins, the individual serving time in Indiana for murder who was mistakenly released from custody earlier this week. The FBI and Marshals Service are offering a combined reward of up to $10,000 for information that leads to the apprehension of Robbins.
The FBI and the Marshals Service have joined the Chicago Police Department and the Cook County Sheriff’s Police in the ongoing manhunt for Robbins, who disappeared January 30 following a court appearance in Chicago on charges unrelated to those that resulted in his Indiana conviction.
The public is cautioned that Robbins should be considered armed and dangerous. Anyone with information about his whereabouts is asked to call Cook County’s tip line at 847-635-1188 or local law enforcement.

Real Estate Developer Sentenced to Three Years for Making False Statements

ANCHORAGE—U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for 12 counts of false statements to a credit union.

Lee E. Baker, Jr., 57, from Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to 36 months in prison.

According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, Baker made false statements to Denali Alaskan Federal Credit Union (DAFCU) while drawing down the proceeds of a $9.2 million construction loan obtained for a proposed 85 unit apartment project, “Bryn Mawr,” located on Northern Lights Boulevard in Anchorage. Baker, as president of Discovery Construction Inc., submitted 12 draw requests certifying each time that certain work had been completed on the Bryn Mawr project, when actually, very little work had been done and the total amount Baker verified as completed was false. The Bryn Mawr project was never completed. As a result of his false statements, approximately $4.3 million was disbursed to Baker by DAFCU before he defaulted on the loan.

Judge Beistline, after imposing sentence, stated, “Ultimately the success of the banking industry and the construction industry depends on integrity.” Judge Beistline went on to acknowledge that the construction industry in Alaska faces challenges, but insisted that, “when facing challenges, the highroad must be taken.” He further indicated that fundamental principles of honesty and integrity are necessary to deal with problems before others get hurt and that the community cannot tolerate this kind of deception. Giving Discovery Construction credit for work completed on the Byrn Mawr project, Baker was ordered to pay $3 million in restitution.

United States Attorney Karen Loeffler noted, “Financial crimes such as those committed by Baker create significant and lasting harms on the community as well as the businesses affected. The Alaska federal law enforcement community is dedicated to working together to investigate and prosecute these serious crimes.”

FBI Special Agent in Charge Mary Rook stated, “The FBI will continue to work with our law enforcement partners to address significant financial crimes which impact a wide range of individuals, businesses, and industries. As is frequently the case, the impact of this crime was more widespread than just those immediately identified as victims, as the losses sustained by Denali Alaskan Federal Credit Union were also felt by its members.”

Ms. Loeffler commends the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division for the investigation of this case.

Two Charged in Bribery Scheme Involving Orange County Company That Sold Components to Panasonic for Use in Personal Computers

SANTA ANA, CA—Federal prosecutors today filed criminal charges against the chief executive of an Irvine company who for years paid kickbacks to ensure contracts for his firm, as well as an official with Panasonic’s American subsidiary who accepted the bribes from the Californian supplier of electronic components.
The two men who were charged today with “honest services” wire fraud are

• William McMahon, 47, of Norco, California, the CEO and co-owner of Trustin Technology
• Sean Volin, 38, of Oakland, New Jersey, a manager with the Panasonic Corporation of North America in Secaucus, New Jersey

In addition to criminal informations filed in United States District Court, prosecutors filed plea agreements in which both men admit their criminal conduct and agree to cooperated with investigators in their ongoing probe.
According to the court documents, for the past decade Trustin sold random access memory modules and then hard drives to Panasonic for use in at least one line of laptop computers. Panasonic was Trustin’s largest and most important customer.
Approximately 10 years ago, Volin approached the then-CEO of Trustin to discuss a price reduction for hard drives Trustin was supplying to Panasonic. In response, the then-CEO proposed a kickback scheme in which Panasonic would continue to pay the same price for hard drives, but Trustin would give Volin half of the proposed price reduction for each unit sold. Volin “agreed with [the CEO’s] proposal, did not obtain a price reduction for Panasonic, and a stream of illicit payments between Trustin and [Volin] began,” according to Volin’s plea agreement.
McMahon became CEO of Trustin in 2005, and he learned of the kickback arrangement that had already brought more than $100,000 to Volin. The payments stopped under McMahon’s watch for a period of time, but the payments resumed as McMahon developed a relationship with Volin. Instead of paying a kickback for each hard drive sold to Panasonic, McMahon made regular payments in exchange for Volin “looking out for Trustin’s interests and [as] a reward for defendant’s prior assistance to Trustin,” according to Volin’s plea agreement.
From November 2005 through the end of 2011, McMahon oversaw payments of more than $555,000 that went to a company Volin had established to accept the illicit payments from Trustin. In total, Volin was paid more than $664,900 by Trustin. Volin and McMahon also admit in the court documents that the Panasonic employee received other benefits, including trips to the Kentucky Derby and Napa Valley.
“In exchange for this stream payments, and acting with the intent to defraud Panasonic of [Volin’s] duty of honest services, [Volin] continued to assist Trustin in obtaining additional business from Panasonic, including Panasonic’s designating Trustin a ‘master vendor,’” according to court documents, which say that as a result of the scheme, “Trustin was able to obtain tens of millions of dollars of business from Panasonic.”
The wire fraud charge alleged in the two cases filed today carries a statutory maximum penalty of 20 years in federal prison.
McMahon and Volin will be summoned to appear in federal court in Orange County in February.
The cases are the result of an ongoing investigation being conducted by U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation.
Panasonic Corporation of North America fully cooperated with the government’s investigation

Former President of SEIU Local Found Guilty of Stealing Tens of Thousands of Dollars from Union and Failing to Report Income

LOS ANGELES—Tyrone Ricky Freeman, the former president of Service Employees International Union (SEIU) Locals 6434 and 434-B, was convicted late this afternoon of federal charges of embezzling tens of thousands of dollars from the union that represents home healthcare workers.
Freeman, 43, who is currently residing in Pittsburgh, Pennsylvania, was found guilty of four counts of mail fraud, seven counts of embezzlement and/or theft of labor union assets, one count of making a false statement to a federally insured financial institution, and two counts of subscribing to a false tax return.
The evidence presented during a 10-day jury trial showed that Freeman pilfered money from SEIU Locals 6434 and 434-B by diverting reimbursement payments from a public-sector union that had close ties to the SEIU locals. Freeman collected $2,500 per month from Local 6434 and the California United Homecare Workers (CUHW), which was established in 2005 by SEIU and the American Federation of State, County, and Municipal Employees to represent public sector employees working in the homecare industry in California. From the beginning of 2007 through the summer of 2008, Freeman concealed from the Local 6434 Executive Board and the CUHW Executive Board that he was receiving payments of $2,500 per month in addition to the regular salary that he received from Local 6434.
Freeman also used a Local 434-B credit card to pay $8,105 in personal expenses he incurred during a 2006 trip to Honolulu, Hawaii, which included expenses related to Freeman’s wedding ceremony.
Freeman also stole money from Local 6434 by routing funds through another entity closely aligned with the union—the Long Term Care Housing Corporation (LTCHC), which was a not-for-profit corporation organized in 2004 for the purpose of developing affordable housing for members of Locals 6434 and Local 434-B. The indictment alleges that Freeman took nearly $17,000 from Local 6434 in June 2008 by requesting the Local 6434 Executive Board to make payments to LTCHC without disclosing to the Executive Board that Freeman would then divert those funds to himself.
The false statement charges relate to lies that Freeman told to Countrywide Bank when he told a bank representative that Local 6434 paid for his personal American Express credit card debt and the monthly lease payments for his Land Rover.
Freeman was also found guilty of subscribing to false tax returns in 2006 and 2007 when he failed to report approximately $63,000 in income he received during those tax years.
“This was a case about abuse and betrayal,” said United States Attorney André Birotte, Jr. “Freeman abused his position as leader of the SEIU, and he betrayed the hardworking people whose interests he was supposed to represent.”
Each count of mail fraud carries a statutory maximum sentence of 20 years in federal prison. Each count of making a false statement to a federal insured financial institution carries a statutory maximum sentence of 30 years in federal prison. Each count of embezzlement and/or theft of labor union assets carries a statutory maximum penalty of 10 years in prison. The charge of subscribing to a false tax return carries a statutory maximum penalty of three years in prison.
Freeman is scheduled to be sentenced by United States District Judge Audrey B. Collins on April 22.
The case against Freeman was investigated by the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Labor, Office of Labor Management Standards; the U.S. Department of Labor, Employee Benefits Security Administration; the Federal Bureau of Investigation; and IRS-Criminal Investigation.

Former Executive Convicted for Role in Price-Fixing Conspiracy Involving Coastal Freight Services Between the United States and Puerto Rico

WASHINGTON—Following a two-week trial, a federal jury in Puerto Rico today convicted a former executive of a Florida-based coastal water freight transportation company for his participation in a conspiracy to fix rates and surcharges for water transportation of freight between the continental United States and Puerto Rico, the Department of Justice announced.
Frank Peake, the former president of Sea Star Line LLC, was found guilty today in the U.S. District Court for the District of Puerto Rico of participating in a conspiracy to fix rates and surcharges for water transportation of freight between the continental United States and Puerto Rico from at least as early as late 2005 until at least April 2008.
“The coastal shipping price-fixing conspiracy affected the price of nearly every product that was shipped to and from Puerto Rico during the conspiracy,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “This successful prosecution shows that the division will hold accountable high-level executives who perpetuate these crimes.”
Sea Star pleaded guilty on December 20, 2011, and was sentenced by Judge Daniel R. Dominguez to pay a $14.2 million criminal fine for its role in the conspiracy from as early as May 2002 until at least April 2008. Sea Star transports a variety of cargo shipments, such as heavy equipment, perishable food items, medicines, and consumer goods, on scheduled ocean voyages between the continental United States and Puerto Rico.
According to evidence presented at trial, Sea Star, Peake and co-conspirators carried out the conspiracy by agreeing during meetings and communications to allocate customers of Puerto Rico freight services and to rig bids and fix the rates and surcharges to be charged to purchasers of water transportation of freight between the continental United States and Puerto Rico. The department said the conspirators also engaged in meetings for the purpose of monitoring and enforcing adherence to the agreed-upon rates and sold Puerto Rico freight services at collusive and noncompetitive rates.
Including today’s jury conviction, as a result of this ongoing investigation, three companies and six individuals have pleaded guilty or been convicted at trial. The five individuals and three companies that have been sentenced have been ordered to serve a total of more than 11 years in prison and to pay more than $46 million in criminal fines.
Peake was convicted of price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s conviction arose from an ongoing federal antitrust investigation into price-fixing, bid-rigging and other anticompetitive conduct in the coastal water freight transportation industry, which is being conducted by the Antitrust Division’s National Criminal Enforcement Section; the Baltimore Resident Agency of the Department of Defense’s Office of the Inspector General, Defense Criminal Investigative Service (DCIS); the Miami Field Office of the Department of Transportation’s Office of Inspector General; and the Jacksonville Field Office of the FBI. Anyone with information concerning anticompetitive conduct in the coastal water freight transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.htm, or contact DCIS’s Baltimore Resident Agency at 410-347-1620.

Stockton Woman Sentenced to Prison for Online Sales of More Than $1 Million in Stolen Merchandise

FRESNO, CA—Thuy Vi Thi Wagner, 34, of Stockton, was sentenced on Monday, January 28, 2013, by United States District Judge Anthony W. Ishii to four years and three months in federal prison for mail fraud and aiding and assisting in the filing of a false tax return, U.S. Attorney Benjamin B. Wagner announced today.
According to court documents, between 2002 and September 2010, Wagner personally shoplifted large amounts of women’s designer clothing from department stores. She then sold these stolen items at approximately one-third of the retail price to buyers in California and other states through an online auction website. Wagner did not disclose to unsuspecting buyers that the merchandise was stolen. Once buyers made payments to her Internet-based account, she mailed them the merchandise. Wagner obtained more than $400,000 from buyers of the stolen merchandise. The retail value of merchandise Wagner shoplifted from department stores in furtherance of the fraud scheme exceeded $1 million.
Wagner also aided and assisted in preparing and presenting a false tax return for tax year 2007 that did not disclose approximately $105,056 of net income from the sale of approximately 2,236 items of stolen clothing in 2007.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Henry Z. Carbajal, III prosecuted the case.