Connecticut Man Found Guilty of Setting Fire That Killed Three Individuals, Including 8-Year-Old Boy

NEW HAVEN, CT—A federal jury in New Haven has found Hector Natal, also known as “Boom” and “Boom Boom,” 27, of New Haven, guilty of committing the March 9, 2011 arson of a multi-family house in New Haven, announced U.S. Attorney for the District of Connecticut David B. Fein. The arson caused the deaths of three residents, 42-year-old Wanda Roberson, her 8-year-old son Quayshawn Roberson, and her 21-year-old niece Jaquetta Roberson. The jury also found Natal, together with his father, Hector Morales, 51, of New Haven, guilty of participating in a narcotics distribution business, which led to the arson, and tampering with witnesses in an effort to obstruct the grand jury investigation of the arson. Morales further aided Natal by altering evidence in order to obstruct the investigation. The trial of Natal and Morales began on March 25, 2013 and, this afternoon, the jury returned a verdict of guilty on all counts of an 11-count indictment. The announcement of today’s verdict was made by U.S. Attorney Fein; Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI; New Haven Police Chief Dean Esserman; and New Haven Fire Chief Michael Grant.
“Today, a unanimous jury found that Hector Natal set fire to a home where families and children lived, three of whom tragically perished, and that he was guilty as charged,” stated U.S. Attorney Fein. “The jury also unanimously found that Natal’s father, Hector Morales, assisted his son’s narcotics trafficking and then helped his son try to cover-up this terrible crime. Today, our thoughts are with the victims and their families. Justice has been served, and we thank our law enforcement partners, particularly the FBI, Connecticut State Police, New Haven Police Department, and New Haven Fire Department, who have worked tirelessly during the investigation and prosecution of this matter.”
“Today’s guilty verdict will hopefully provide some level of comfort to the Fair Haven community and especially to those who lost loved ones as a result of the 2011 arson on Wolcott Street,” stated FBI Special Agent in Charge Mertz. “Dedicated investigators and prosecutors have worked together diligently since day one to ensure justice for the victims of that horrific crime.”
“The New Haven Police Department is gratified for the strong working relationship with the United States Attorney’s Office in bringing justice to all the victims in this case,” stated Chief Esserman.
“I couldn’t be more proud of our firefighters’ outstanding efforts in responding so bravely to this deadly arson and our law enforcement partners who brought this case to justice,” stated Chief Grant.
According to the evidence presented during trial, Natal was a New Haven drug dealer who sold cocaine, crack cocaine, pills, and marijuana. Morales served as Natal’s driver, facilitating his sales of narcotics and collection of drug proceeds. Early on the morning of March 9, 2011, Natal set fire to the two-family house in retaliation for a customer’s failure to pay a drug debt. After the fire was set, Morales drove Natal away from the scene in his blue van. Morales thereafter painted his van black in an effort to obstruct the investigation. Natal and Morales then schemed with other family members to testify falsely before the grand jury in order to prevent the grand jury from developing evidence regarding Natal’s and Morales’ complicity in the arson.
The evidence at trial also showed that, months before the fatal fire, Natal attempted to set a fire in the same house.
Natal was found guilty of three counts of arson resulting in death. This charge carries a mandatory minimum term of seven years’ imprisonment and a maximum term of life imprisonment on each count. He also was found guilty of one count of attempted arson, which carries a mandatory minimum term of five years of imprisonment and a maximum term of 20 years.
Natal and Morales were both convicted of conspiring to distribute and to possess with intent to distribute narcotics, conspiring to tamper with witnesses, and witness tampering. Each of these charges carries a maximum term of imprisonment of 20 years.
Additionally, Morales was found guilty on three counts of being an accessory after the fact to the arson, which carries a maximum term of imprisonment of 15 years, and one count of destruction and concealment of evidence, which carries a maximum term of imprisonment of 20 years.
A sentencing date has not been scheduled.
Natal has been detained since his arrest on June 14, 2011, and Morales has been detained since his arrest on July 19, 2012.
This matter has been investigated by the FBI; the New Haven Police Department; the Connecticut State Police Major Crimes Unit; Office of the State Fire Marshal; the New Haven Fire Department-Office of Fire Marshal; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the U.S. Department of Housing and Urban Development’s Office of Inspector General. The case is being prosecuted by First Assistant U.S. Attorney Deirdre M. Daly and Assistant U.S. Attorney Michael J. Gustafson, with assistance and support from the New Haven State’s Attorney’s Office.

Anchorage Man Imprisoned for ‘Crash for Cash’ Insurance Scam

ANCHORAGE—U.S. Attorney Karen L. Loeffler announced today that an Anchorage resident who had been indicted for three separate instances of wire fraud in connection with an insurance scam was sentenced Tuesday in federal court in Anchorage.
Rustem Mukhametshin, 26, was sentenced by U.S. District Court Judge Timothy Burgess, to 12 months in prison, to be followed by three years of supervised release, and to make restitution payments totaling more than $70,000. Mukhametshin, who is a citizen of Russia, pled guilty in January 2013 and is scheduled to be deported from the United States at the conclusion of his prison sentence.
According to Assistant U.S. Attorney Bryan Schroder, who prosecuted the case, Mukhametshin was a principle figure in a unique and extensive scheme to defraud insurance companies for tens of thousands of dollars. Mukhametshin exploited a weakness in the practices of the insurance companies since they generally do not inspect vehicles when they issue an insurance policy. The companies assume that the vehicle being insured is of a reasonable condition, making its value consistent with other cars of the same make, model, production year, and mileage. Mukhametshin exploited that practice by buying damaged cars at rates well below the standard value and then staging accidents with the damaged cars he purchased. The difference between the low value of the damaged cars and the value of an undamaged standard vehicle of similar model, year, mileage, was then taken as profit. Mukhametshin staged four of these accidents and only stopped the criminal activity after the insurance company refused to pay.
Assistant U.S. Attorney Bryan Schroder further stated that Mukhametshin’s scheme was even more extensive because confederates of the defendant were staging similar fraudulent “accidents.” The loss amount directly attributable to the defendant’s actions was $70,656.70.
Ms. Loeffler commends the Federal Bureau of Investigation for the investigation on this case.

Fifty-Seven Charged with Operating Illegal Online Sports Gaming Business

WASHINGTON—Thirty-four individuals and 23 entities have been indicted and accused of operating an illegal sports bookmaking business that solicited more than $1 billion in illegal bets, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Oklahoma Sanford C. Coats.
According to the indictment, Bartice Alan King, aka “Luke” and “Cool,” 42, of Spring, Texas, conspired with others to operate Internet and telephone gambling services first from San Jose, Costa Rica and then from Panama City, which took wagers almost exclusively from gamblers in the United States seeking to place bets on sports. Known since 2003 as Legendz Sports, the enterprise allegedly used bookies located in the United States to illegally solicit and accept sports wagers as well as settle gambling debts.
The 34 defendants are alleged to have been employees, members, and associates of the ongoing Legendz Sports enterprise. The 23 corporate defendants are alleged to have been used by Legendz Sports to facilitate gambling operations, operate as payment processors, own websites and domain names used in the enterprise, launder gambling funds, and make payouts to gamblers.
The indictment alleges that Legendz Sports sought to maximize the number of gamblers who opened wagering accounts by offering both “post-up” betting, which requires a bettor to first set up and fund an account before placing bets and “credit” betting, which allow the bettor to place a wager without depositing money in advance through face-to-face meetings with bookies or agents.
The indictment alleges that Legendz Sports solicited millions of illegal bets totaling more than $1 billion.
“These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds,” said Acting Assistant Attorney General Raman. “Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates or where the defendants reside.”
“The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries,” said U.S. Attorney Sanford C. Coats. “I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise.”
“Individuals cannot skirt the laws of the United States by setting up illegal Internet gambling operations in a foreign country while living in the United States and enjoying all the benefits of U.S. citizens,” said Jim Finch, Special Agent in Charge of the FBI Oklahoma City Field Office. “The FBI, along with our law enforcement partners, will continue to be diligent in investigating such violations of federal law.”
“Combining the financial investigative expertise of the IRS with the skills and resources of the FBI makes a formidable team for combating major, greed-driven crimes,” said Andrea D. Whelan, Internal Revenue Service Special Agent in Charge. “This massive indictment is the result of our highly effective law enforcement partnership.”
If convicted, the defendants face up to 20 years in prison for racketeering, up to 20 years in prison for conspiring to commit money laundering, up to 10 years in prison for money laundering, and up to five years in prison for operating an illegal gambling business.
In addition, the indictment seeks a forfeiture money judgment of at least $1 billion traceable to numerous specific assets that include real estate, bank accounts, brokerage and investment accounts, certificates of deposit, individual retirement accounts, domain names, a Sabreliner aircraft, a gas lease, and vehicles.
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
This case is the result of an investigation by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Susan Dickerson Cox and William Lee Borden, Jr. from the Western District of Oklahoma and Trial Attorney John S. Han with the Department of Justice Criminal Division Organized Crime and Gang Section.
For further information, reference is made to the 95-page indictment, which can be found at www.justice.gov/usao/okw/news/2013/2013_04_10.html.

Illegal Sports Bookmaker Sentenced for Conspiring to Commit Sports Bribery

United States Attorney Laura E. Duffy announced that Paul Joseph Thweni was sentenced today by the Honorable Anthony J. Battaglia to serve 30 months in custody, followed by three years’ supervised release, for his role in a criminal conspiracy.
The indictment charged that Thweni and nine others enriched themselves by operating an illegal sports gambling business and by distributing marijuana. Using proceeds from those crimes, Thweni and his co-conspirators influenced the outcome of basketball games at the University of San Diego (USD) during the 2009-2010 season and then attempted to recruit players to do the same during the 2010-2011 season. Thweni pleaded guilty to the indictment on August 2, 2012.
According to court documents and other admissions, Thweni and his co-conspirators bribed co-defendant Brandon Johnson to influence the outcome of basketball games during the 2009-2010 season while Johnson was a member of USD’s basketball team. The co-conspirators then profited by placing bets at Las Vegas casinos on games Johnson influenced. Co-defendant Steve Goria, who was sentenced to 30 months’ imprisonment in October 2012, admitted that the conspiracy made more than $120,000 from the game-fixing scheme. Thweni previously admitted that during the 2010-2011 season, the co-conspirators attempted to recruit current college basketball players at USD and other schools to influence the outcome of basketball games in exchange for cash.
Judge Battaglia ordered the defendant to report on April 19, 2013, to begin serving his sentence.
Defendant in Criminal Case No. 11CR1345-AJB
Paul Joseph Thweni
Age: 28
Spring Valley, California
Summary of Charges
Count one: Title 18, United States Code, Section 371—conspiracy
Investigating Agency
Federal Bureau of Investigation
Convictions in Criminal Case Number: 11cr1345AJB
Steve Warda Goria
Richard Francis Garmo
Thaddeus James Brown
Brandon Johnson
Richard Thweni
David Gates
Jake Salter

Self-Proclaimed Camp Pendleton ‘Godfather’ Charged with Bribery

United States Attorney Laura E. Duffy announced that Natividad Lara Cervantes, aka Nate Cervantes, a U.S. Department of Defense employee—and the supervisor for construction and service contracts at Camp Pendleton—was arraigned today on bribery charges before Magistrate Judge Barbara L. Major in relation to assisting a contractor obtain a $4 million construction contract.
According to court records, Cervantes used his position at Camp Pendleton to extort bribes from businesses seeking to do business on the base, and referred to himself as the “Godfather at Camp Pendleton.” At least as early as September 2008, Cervantes allegedly used his position supervising construction and service contracts to extort bribes from businesses seeking to do business at Camp Pendleton. In return for these contracts, Cervantes received cash payments and remodeling work on a condominium.
As reflected in the complaint supporting his arrest, on Tuesday, March 26, 2013, a cooperating witness met with Cervantes and agreed to pay him a $40,000 bribe in exchange for assistance in obtaining a new $4 million contract at Camp Pendleton. The bribe was to be structured over a number of payments. The first payment was scheduled for Thursday, March 28, 2013, with the balance of the bribe to be paid after the contract was awarded.
On Thursday, March 28, 2013, the cooperating witness met with Cervantes at a local business on Miramar Road in San Diego, California, to make the first payment that was discussed earlier in the week. During this meeting, Cervantes discussed, among other things, the payment schedule and the source of funds for the bribe payments. At the end of the meeting, the witness handed Cervantes an envelope containing $10,000 cash. After Cervantes had received the cash, FBI agents approached and ordered Cervantes and the witness to put their hands in the air.
United States Attorney Duffy commented that today’s prosecution was one more example of her “zero tolerance” policy when it came to government corruption. “Given the large military presence in San Diego, it is imperative that this office ensure that the government contracting process is free from bribery and undue influence. There must be a level playing field free from corruption for all government contractors.”
Cervantes is scheduled to next appear in court on May 10, 2013 before Judge Anthony J. Battaglia. The charges in this case are not themselves evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
This investigation was conducted under the FBI’s public corruption investigative program. The public is encouraged to report possible public corruption criminal activity to the FBI by calling the FBI’s public corruption/border corruption hotline at (877) NO-BRIBE or (877) 662-7423.
Defendant - Case Number: 13cr1345AJB
Natividad Lara Cervantes
Age: 64
San Diego, CA
Summary of Charges
Title 18, United States Code, Section 201(b)(2)—Bribery of public official
Maximum penalties: 15 years’ imprisonment, $250,000 fine
Investigating Agencies

• Federal Bureau of Investigation
• Naval Criminal Investigative Service
• Internal Revenue Service, Criminal Investigation
• Department of Defense Criminal Investigative Service
• General Services Administration, Office of Inspector General
• Small Business Administration, Office of Inspector General

Former IRS Agent Sentenced to 24 Years in Federal Prison for Murder-for-Hire and Tax Charges

SAN DIEGO—Former Internal Revenue Service agent-turned-tax preparer Steven Martinez was sentenced today by U.S. District Court Judge William Q. Hayes to almost 24 years in prison for defrauding clients of more than $11 million and then plotting their murders to prevent them from testifying about the theft.
In addition to a 286-month sentence, the judge ordered Martinez to pay more than $14 million in restitution to the victims, the IRS, and the California Franchise Tax Board. Judge Hayes also entered a preliminary order of forfeiture as to certain real and personal property, including an $11 million money judgment. Following Martinez’s service of his sentence, Judge Hayes placed him on five years of supervised release.
In comments at today’s hearing, Assistant U.S. Attorney Joseph Orabona argued for a significant sentence in part because Martinez meticulously planned the murders by giving a would-be assassin—who was a cooperating witness for the FBI—detailed instructions and information about each of the four victims contained in “packets.” One of the exchanges between Martinez and the cooperating witness was captured on video.
“These victims were surveilled. They were watched. Their habits were documented. It’s disturbing,” Orabona said. “This was a cool and calculating individual. He knew how the victims lived. He’s explaining it to the hitman on the video.”
Before imposing a sentence, Judge Hayes noted that the defendant did not make a heat-of-the moment decision to commit a crime. Rather, it was a long-term fraud spanning years and culminating with the carefully planned murder-for-hire plots. “Mr. Martinez in my view had some time to think about what he was doing,” said Judge Hayes. He called the defendant’s actions “cold blooded.”
U.S. Attorney Laura Duffy said she was pleased with the outcome of the prosecution. “This is a case of greed so extreme that what began as serious—but not violent—white-collar crimes almost escalated to the murders of four people. Fortunately, FBI intervention prevented the violence and today justice was served with a decades-long sentence. As tax day quickly approaches, this is a reminder that anyone who chooses to undermine the integrity of our tax system risks prosecution.”
FBI Special Agent in Charge Daphne Hearn commented, “Once the FBI became aware of Mr. Martinez’s murder-for-hire plot, FBI agents took immediate steps to disrupt this plot. In doing so, the FBI ensured that no harm would come to potential witnesses or others. I commend the efforts of the agents and prosecutors who worked tirelessly in this investigation.”
N. Dawn Mertz, Special Agent in Charge of IRS-Criminal Investigation’s Los Angeles Field Office, commented, “The activities of Steven Martinez are an example whereby tax crimes, malicious financial greed, and a blatant disregard for the law can turn into potential violent criminal activity. Today’s sentencing reinforces IRS-Criminal Investigation’s commitment to pursuing those committing tax and financial crimes and to partner with our law enforcement community to bring justice to those who behave as if they are above the law.”
Martinez pleaded guilty on August 10, 2012, to criminal charges including murder-for-hire, witness tampering involving attempted murder, solicitation of a crime of violence, mail fraud, filing false tax returns, Social Security fraud, aggravated identity theft, and money laundering. Martinez pleaded guilty to 12 counts in a superseding indictment.
As part of his guilty plea, Martinez admitted that in late February 2012, he solicited a third party to murder four witnesses with the intent to prevent their testimony in his pending criminal tax case.
The third party contacted the San Diego division of the FBI on February 28, 2012, to report the murder-for-hire plot by Martinez and agreed to cooperate with the FBI in the investigation. According to the complaint, a subsequent meeting between the FBI’s cooperating witness and Martinez was recorded and videotaped by the FBI.
In reference to two of the murder targets, Martinez told the would-be assassin “he could make him rich for the rest of his life, $100,000 cash, if he eliminated the lady in Rancho Santa Fe and the lady in La Jolla,” according to court records. The cooperating witness said Martinez “suggested that the former employee use two different pistols for the murders and that he acquire a silencer.”
Martinez admitted in court that he tried to prevent the former clients’ testimony by offering the FBI’s cooperating witness $100,000 to murder them. He admitted he provided the third party with four written packets of detailed information about the former clients, including photos of the soon-to-be murder victims, their homes, and personal information. Martinez admitted that once the murders took place, he would pay the perpetrator $40,000 in cash, followed by the remaining $60,000 in cash within 72 hours of the murders.
In addition, Martinez admitted that he filed false tax returns and defrauded his clients by stealing over $11 million in tax payments. Martinez admitted that he presented his clients with completed tax returns indicating that they owed a significant amount of tax. He requested that his clients write checks payable for the amount of taxes due and owing to an alleged client trust account (instead of directly to the IRS or the California Franchise Tax Board).
Martinez also convinced these same clients to write checks during the tax year for estimated tax payments to the same alleged client trust accounts. Rather than deposit these checks into a true trust account, Martinez admitted that he took the checks and deposited them into several nominee bank accounts. In an attempt to conceal his fraud, Martinez admitted that he filed a different set of false tax returns indicating that his clients owed little or no income tax.
Martinez admitted that he converted approximately $11 million in stolen taxpayer funds for his own personal benefit and used them to make home improvements, purchase real estate, purchase a beach home in Mexico, pay for the use of a private airplane, make investments of more than $2 million in other entities, and make payments of more than $2 million for his personal use credit cards and loans.
As part of his fraudulent tax scheme, Martinez admitted that he committed Social Security fraud and aggravated identity theft by using the Social Security numbers of his clients without authorization when he filed the false tax returns with the IRS. Martinez admitted he committed mail fraud by mailing the false tax returns to the IRS. Martinez also admitted that he laundered approximately $2 million through nominee bank accounts for his own business and personal use.
Finally, Martinez admitted that he knowingly and intentionally filed false personal income tax returns for tax years 2004, 2005, 2006, and 2007.
Defendant in Criminal Case No. 11CR1445WQH
Steven Martinez
Age: 51
Ramona, California
Charges to which Defendant Pled Guilty:
Count four: Title 18, United States Code, Section 1341-mail fraud
Maximum penalties: 20 years of imprisonment and a fine equal to twice the gross loss caused to persons by the offense
Count seven: Title 26, United States Code, Section 7206(2)-procuring false tax returns
Maximum penalties: three years of imprisonment and $250,000 fine
Counts 21: Title 42, United States Code, Section 408(a)(8)-Social Security Fraud
Maximum penalties: five years of imprisonment and $250,000 fine
Counts 33: Title 18, United States Code, Section 1028A-aggravated identity theft
Maximum penalties: two years of imprisonment, consecutive to any other sentence
Count 47: Title 26, United States Code, Section 7206(2)-making false tax returns
Maximum penalties: three years of imprisonment and $250,000 fine
Count 49: Title 18, United States Code, Section 1957-money laundering
Maximum penalties: 10 years of imprisonment and $250,000 fine
Counts 50 through 53: Title 18, United States Code, Section 1512(a)(1)(A)-witness tampering
Maximum penalties: 30 years of imprisonment and $250,000 fine per count
Count 54: Title 18, United States Code, Section 1958-use of a facility of interstate commerce in commission of murder-for-hire
Maximum penalties: 10 years of imprisonment and $250,000 fine
Count 55: Title 18, United States Code, Section 373-solicitation of a crime of violence
Maximum penalties: 15 years of imprisonment and $250,000 fine
Agencies
Internal Revenue Service-Criminal Investigation
Federal Bureau of Investigation

Former Army Soldier Indicted on Bribery and Related Charges for Facilitating Thefts of Fuel in Afghanistan

WASHINGTON—Stephanie Charboneau, aka Stephanie Shankel, 34, of Fountain, Colorado, formerly a specialist in the United States Army, has been indicted in the District of Colorado for her alleged role in assisting the thefts of fuel in Afghanistan and laundering the proceeds of crime, Acting Assistant Attorney General Mythili Raman of the Criminal Division announced.
According to the indictment returned on April 9, 2013, and now filed publicly, Charboneau was assigned to Forward Operating Base (FOB) Fenty, in eastern Afghanistan, as part of the 704th Brigade Support Battalion. Her duties included overseeing the movement of fuel by private Afghan trucking companies from FOB Fenty to nearby military bases. The indictment alleges that Charboneau conspired with Sergeant Christopher Weaver, her supervisor, and Jonathan Hightower, a civilian employee of FLUOR Inc., to facilitate the theft of fuel for money. Charboneau and her co-conspirators allegedly received money from a representative of an Afghan trucking company to enable that company to steal truckloads of fuel. The conspirators allegedly authorized the movement of truckloads of fuel from FOB Fenty—ostensibly to nearby bases—knowing and intending that when the fuel left FOB Fenty it would never reach the designated base and would instead be stolen. These events occurred from approximately February 2010 through approximately May of 2010.
In addition, the indictment charges that when Charboneau returned to the United States, she engaged in a series of transactions with the bribe proceeds to avoid the currency transaction reporting requirements. Charboneau allegedly purchased an automobile for $33,179 in cash through a $5,000 down payment, two $9,900 cashier’s checks she funded but were in the name of two acquaintances, and an $8,379 cashier’s check in her name.
Charboneau was charged with conspiracy, bribery, theft, money laundering and structuring. If convicted, she faces penalties of 20 years in prison for money laundering, 15 for bribery, 10 for theft of government property, and five for conspiracy and structuring. She also faces fines of $250,000 per count.
Weaver and Hightower have each pleaded guilty to a bribery conspiracy scheme and are awaiting sentencing.
This case was investigated by former Fraud Section Trial Attorney Mark Pletcher, who is currently an Assistant United States Attorney for the Southern District of California, and Special Trial Attorney Mark H. Dubester. The case was investigated by the Special Inspector General for Afghanistan Reconstruction, the Department of the Army, Criminal Investigations Division, the Defense Criminal Investigative Service, and the FBI Denver Field Office.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.