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.

Third Defendant in Real Estate Fraud Case Pleads Guilty

DENVER—Alois Craig Weingart, age 59, of Castle Rock, Colorado, pled guilty to one count of making a false statement to a bank, U.S. Attorney John Walsh, IRS-Criminal Investigation Special Agent in Charge Stephen Boyd, and FBI Denver Acting Special Agent in Charge Steven Olson announced. Weingart entered his guilty plea before Chief U.S. District Court Judge Marcia S. Krieger and is scheduled to be sentenced on July 8, 2013. In the same case, Waunita Weingart pled guilty to two counts of wire fraud on March 13, 2013, and is scheduled to be sentenced on June 17, 2013. John Gallegos pled guilty to one count of making a false statement to a bank and is scheduled to be sentenced on May 6, 2013.
According to the stipulated facts contained in Waunita Weingart’s plea agreement, beginning in 2000 and continuing through 2008, she devised a scheme to defraud lenders that funded residential mortgage loans. She was an experienced mortgage broker, settlement agent, and licensed title insurance producer. Alois Craig Weingart is her husband; John Gallegos is her son. As part of her scheme, she, John Gallegos, and Craig Weingart each repeatedly obtained mortgage loans for their properties in Castle Rock and Boulder, Colorado, pledging the same properties again and again as collateral to each successive lender without paying off the prior loans. Waunita Weingart used her mortgage brokerage, G-4 Holding, as well as two escrow/title companies she controlled, Colorado County and Community Title and Real Estate Title, to facilitate her fraud.
For each new loan, Waunita Weingart made it appear as though the lender would obtain a first priority security interest in the property, knowing that it would not. In preparing the loan applications and providing information to the lenders for the applications, she incorporated false representations as necessary to assure that the borrowers would qualify for the loans. Each application substantially overstated the borrower’s true income, falsely representing that he or she had high monthly earnings from employment at another company Waunita Weingart controlled. Each application also falsely represented that the borrower owned numerous properties that he or she did not in fact own. As a result of her scheme, lenders lost over 12 million dollars.
Alois Craig Weingart pled guilty to making a false statement to obtain loans for his Castle Rock property; John Gallegos pled guilty to making a false statement to obtain a loan for another property he owned in Seattle, Washington.
“The defendants in this case thought they could out-smart the financial system,” said U.S. Attorney John Walsh. “Crimes such as this ultimately hurt our economy as well as those who applies for a mortgage.”
“IRS-Criminal Investigation is committed to working diligently with our law enforcement partners to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice,” said Stephen Boyd, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office.
“Investigating mortgage fraud is a priority for the FBI as it hurts homeowners, businesses, and the economy,” said FBI Denver Acting Special Agent in Charge Steven Olson. “Working closely with the IRS-Criminal Investigations and the U.S. Attorney’s Office, we were able to see that the three defendants were charged and ultimately convicted for fraud.”
Waunita Weingart faces not more than 20 years’ imprisonment and up to a $250,000 fine per count for two counts of wire fraud. Craig Weingart and John Gallegos face not more than 30 years’ imprisonment and up to a $1,000,000 fine for making a false statement to a bank.
This case was investigated by special agents with IRS-Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Linda Kaufman and Martha Paluch.

FBI Seeks Public’s Help in Identifying Alleged Victims of Convicted Killer

The FBI is seeking the public’s assistance in identifying alleged victims of convicted killer Curtis Dean Anderson, who died while serving his prison term on December 9, 2007.
Anderson was convicted and sentenced to over 300 years in prison for the 1999 kidnapping and murder of 7-year-old Xiana Fairchild in Vallejo, California, and other crimes. He was captured after one of his kidnap victims, then 9-year-old Midsi Sanchez, was able to escape.
Anderson was interviewed by FBI agents in November 2007, and he confessed to murdering eight victims in the United States, which includes Fairchild and 7-year-old Amber Swartz-Garcia of Pinole, California, in 1988. Anderson also confessed to two murders in Mexico but did not provide any information on those victims.
The following is a list of the stateside victims’ descriptions by Anderson in chronological order:
Late 1984
Victim #1 was described as a female in her late teens/early 20s. Anderson allegedly met and killed her and disposed of her body near a local swimming hole in Marysville, California. She was a “runaway.”
Victim #2 was a young female hitchhiker in her late teens, whom Anderson claimed he picked up on a road near the northeast side of Clearlake a few days after the death of Victim #1.
Early 1985
Victim #3 was a female who was in her late teens. She was also residing in the Marysville area and was possibly a runaway from Oregon. Anderson claimed to have killed her in early 1985. Anderson allegedly disposed of Victims #2 and #3 near the Ballard’s Bar Dam close to Dobbins, California.
November 1986
Victim #4 was approximately 21 years old. She was a light-skinned black female whom Anderson met in a bar frequented by African-Americans located in the East Bay, off Interstate-80 on San Pablo Avenue. He claims this occurred about 10 days after he was paroled from San Quentin State Prison. Anderson allegedly killed the victim and disposed of her body in the Oakland hills.
June 1988
Victim #5 was Amber Swartz-Garcia. Anderson said Swartz-Garcia was standing on a street in Pinole, California, when he drove up to where she was standing, opened his car door, and physically forced her into his car. He eventually murdered her in Arizona and disposed of her body around Benson, Arizona, in the desert off of Interstate-10 sometime in mid-1988.
1988/1989
Victim #6 was allegedly a Navajo Indian woman who was approximately 23 to 24 years old. Anderson claimed he picked her up near 5th or 6th Street in Benicia, California, coming out of a bar in either 1988 or 1989. He said that he killed his victim in the desert somewhere near Benson, Arizona.
Early 1997
Victim #7 was in her early 20s. She was a black and Hispanic female whom Anderson described as going by the name “Rosie.” Anderson allegedly met the victim at The Bears bar, which he described as being frequented by Hispanics. This bar was located under Highway 87 in San Jose, California, near a bowling alley.
Anderson claimed this victim had noticeable “junkie tracks” on her arms, and he killed her by strangulation. He allegedly disposed of her body less than five miles off the Ben Lomand turnoff near Santa Cruz, California, approximately 300 yards past a water retention pond behind a locked gate.
During this incident, Anderson stated he had been driving a black Toyota truck from his “Parts Company.” He claimed this occurred around February or March 1997.
December 1999
Victim #8 was Xiana Fairchild, who disappeared on December 9, 1999. Her skull was found in early 2001 in an unincorporated area of Los Gatos in Santa Clara County.
If the public has any information regarding the identity of the alleged victims, please call the FBI San Francisco tip line at 1-800-CALL-FBI (1-800-225-5324). All calls are confidential and tips can be left anonymously.
Photos of Curtis Dean Anderson:

Photo taken in 1983	Photo taken in 1999

Examples of vehicles Curtis Dean Anderson may have driven:

Example of a two-door 1977 Chevy sedan (Anderson allegedly drove a vehicle similar to the one seen above in the late 1980s. He received a ticket in 1989 and was driving a vehicle similar the one shown.)
Example of a 1997 black Toyota truck (Anderson allegedly drove a truck similar to the one see above in 1997.)

Members of the media should call Public Affairs Specialist Julianne Sohn at 415-553-7450.

Rochdale Securities Trader Admits Role in Fraudulent Scheme Involving Nearly $1 Billion Purchase of Apple Stock

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that David Miller, 40, of Rockville Centre, New York, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to conspiracy and fraud offenses related to his role in a fraudulent scheme to make large purchases of stock in Apple Inc. as an institutional sales trader for Rochdale Securities LLC of Stamford.
“This defendant participated in a fraudulent scheme in which he would either reap huge profits through the unauthorized purchase of approximately $1 billion of Apple stock or, if he faced huge losses, explain it away as simple human error,” stated U.S. Attorney Fein. “This scheme caused catastrophic losses for his former employer and was unraveled promptly by the FBI. The U.S. Attorney’s Office and our many partners on the Connecticut Securities, Commodities, and Investor Fraud Task Force are committed to protecting investors and the integrity of American capital markets. This investigation is ongoing.”
“Risk is inherent in the investment world, but that risk should never be borne from the actions of investment professionals who choose to serve their own financial agendas rather than those of their clients,” stated FBI Special Agent in Charge Mertz. “As this guilty plea demonstrates, the FBI and its partners on the Connecticut Securities, Commodities, and Investor Fraud Task Force will act swiftly to investigate and bring to justice those who violate securities laws.”
According to court documents and statements made in court, Miller, while working as an institutional sales trader at Rochdale Securities LLC (“Rochdale”) in Stamford, conspired with another individual to execute a trade to buy 1,625,000 shares of stock in Apple Inc. (“Apple”) on behalf of a Rochdale customer whose account Miller handled. As part of the scheme, Miller and his co-conspirator had agreed that the co-conspirator would submit an order for Apple stock on October 25, 2012, the day Apple was scheduled to announce its earnings for the quarter and would write the order in such a way that Miller could later claim he misinterpreted it. Miller would then execute a trade for 1,000 times the number of shares written in the order. If the trade proved profitable, Miller and his co-conspirator would share in the profits. If the trade proved unprofitable, Miller would claim human error, leaving Rochdale holding the losing position.
At approximately 9:31 a.m. on October 25, 2012, Miller’s co-conspirator submitted an order for Apple that read: “b 125 ok (per 1/2 hr).” Miller then began executing orders to buy 125,000 shares of Apple stock, purportedly on behalf of the Rochdale customer. Over the course of the day, Miller entered multiple, separate orders in Rochdale’s order management system in the amount of 125,000 shares. After Apple announced its earnings later that day, the stock price began dropping, and it became clear that the trade would not be profitable. When confronted, Miller falsely claimed that he had made a mistake in ordering many multiples of what was written in a client’s order.
As a result of this scheme, Rochdale was left holding approximately 1,623,375 shares of Apple. It promptly traded out of the position but suffered a loss $5,292,202.50.
While he was executing the scheme at Rochdale, Miller also defrauded another broker-dealer into taking on a significant short position in Apple stock. Through a series of misrepresentations made over the course of several weeks, Miller convinced the broker-dealer to sell 500,000 shares of Apple stock, falsely claiming that he was trading for the account of a company, which he had no relationship with and for which he was not authorized to trade. Miller engaged in this part of the scheme to hedge against the large purchase of Apple stock he was executing at Rochdale. As a result of the scheme, Miller placed the broker-dealer at risk of sustaining substantial losses. In the end, the broker was able to trade out of the position at a profit.
Miller pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud and one count of wire fraud. He is scheduled to be sentenced by United States District Judge Robert N. Chatigny on July 8, 2013, at which time Miller faces a maximum term of imprisonment of 25 years.
Miller has been released on a $300,000 bond since his arrest on December 4, 2012.
This matter is being investigated by the Federal Bureau of Investigation.
U.S. Attorney Fein acknowledged the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) for their substantial assistance and cooperation during the investigation.
The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities, and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The task force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section, and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department; and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll-free, 855-236-9740, or by sending an e-mail to ctsecuritiesfraud@ic.fbi.gov.
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.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

Two Participants in Illegal Campaign Contribution Scheme Plead Guilty

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that two individuals pleaded guilty today in New Haven federal court to conspiracy charges stemming from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives. Joshua Nassi, 34, of Fairfield, and Benjamin Hogan, 33, of Southington, each pleaded guilty before United States District Judge Janet Bond Arterton to one count of conspiracy to make false statements to the Federal Election Commission and to impede the FEC’s enforcement of federal campaign finance laws.
“With today’s guilty pleas, six individuals have now acknowledged their involvement in a scheme to disguise the source of contributions to a federal campaign, contributions that were given to influence legislation pending before the Connecticut General Assembly,” stated U.S. Attorney Fein. “The Department of Justice is committed to prosecuting those who corrupt our system of government, our campaign finance laws, and the electoral process.”
“Today’s guilty pleas serve as a reminder that there are consequences for those who undermine the integrity of the legislative process by engaging in a concealed pay-to-play system,” stated FBI Special Agent in Charge Mertz. “The public interest was not being served. The only interests being served were those of the defendants who put their own interests above all. This investigation demonstrates the FBI’s commitment to the investigation of corruption at all levels of government.”
According to court documents and statements made in court, in August 2011, the state of Connecticut applied for a court order enjoining Roll Your Own (RYO) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, Hogan, Paul Rogers, Harry Raymond “Ray” Soucy, David Moffa, and others engaged in a scheme to direct conduit campaign contributions into the campaign of a candidate for the U.S. House of Representatives. The candidate was also a member of the Connecticut General Assembly. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and Rogers, Hogan, and other conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
At the time, Nassi was the campaign manager for the campaign of the candidate for the U.S. House of Representatives, and Hogan was an employee of Smoke House Tobacco, an RYO smoke shop with two locations in Waterbury that was co-owned by Rogers. Soucy had a pre-existing relationship with Nassi and the member of the General Assembly who was running for Congress.
In November and December 2011, Hogan, Rogers, Soucy, Moffa, and others made four $2,500 conduit contributions to the campaign. Hogan was aware of the purpose of the contributions and that the contributions were being made in the names of others.
On approximately January 31, 2012, the campaign committee submitted to the Federal Election Commission (FEC) a report of the campaign committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.
On April 3, 2012, Soucy contacted Nassi and told him that RYO owners wanted to provide additional contributions to the campaign. That same day, the Connecticut General Assembly’s Joint Committee on Finance, Revenue, and Bonding voted in favor of Senate Bill 357, legislation that would have deemed RYO smoke shop owners to be tobacco manufacturers under Connecticut law, a designation that would have subjected RYO smoke shop owners to a substantial licensing fee and tax increase. Later that day, Soucy contacted Nassi again to state his displeasure with the vote.
Approximately one week later, Soucy, Rogers, and an FBI special agent working in an undercover capacity delivered four $2,500 checks in the names of conduit contributors to Nassi. On April 23, 2012, Nassi advised Soucy that one of the checks had bounced, and Soucy indicated that the contributor had been given cash to deposit. Nassi stated that the campaign needed the check by midnight the following day, and Soucy delivered a replacement check by that deadline. On May 2, 2012, the campaign submitted a fundraising report to the FEC stating that the four contributions given in April were from the conduit contributors when, in fact, they were not.
Over the next two weeks, Nassi continued to advise Soucy on the status of the RYO legislation, and Soucy told Nassi that he would be delivering $10,000 if the legislation died. On May 9, 2012, the legislative session ended and the legislation had not been called for a vote by either chamber of the General Assembly.
On May 14, 2012, Soucy, Rogers, and Hogan met at Smoke House Tobacco where Soucy provided Rogers with $10,000 in cash to be used to reimburse additional conduit contributors. Prior to the meeting, Hogan had approached Waterbury business owner Daniel Monteiro and an employee of Monteiro’s and asked them to serve as conduit contributors. Monteiro subsequently wrote a $2,500 check to the campaign, and his employee obtained a bank check in the amount of $2,500. Both were assured that they would be reimbursed. These two checks, and another $2,500 bank check drawn on Hogan’s own account but not in his name, were given to Soucy at the meeting. Also, at Nassi’s request, Rogers gave Soucy a fourth $2,500 check from a conduit contributor that was payable to a political party. Soucy then delivered the four checks to Nassi at a political event.
On May 16, 2012, after Soucy informed the campaign that one of the contributions had been made in the name of an RYO shop owner and should not be deposited, Soucy met Nassi and provided him with a replacement $2,500 check in the name of someone who was not affiliated with any RYO shops.
Hogan and Nassi are scheduled to be sentenced on July 9 and July 16, 2013, respectively. Both face a maximum term of imprisonment of five years and a fine of up to $250,000.
Rogers, Soucy, Moffa, and Monteiro have also pleaded guilty to charges related to this scheme and await sentencing.
As to the two other individuals who have been charged as a result of this investigation, U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.

Federal Grand Jury Returns Indictment Charging Conspiracy, Murder-for-Hire, Causing Death Through the Use of a Firearm, and Conspiracy to Use Firearms

Nemessis Bates, a/k/a “Nemesis Bates,” a/k/a “Nemo,” 34 years of age, and Aaron Smith, a/k/a “Beadie, a/k/a “Beedie,” 27 years of age, both of the New Orleans area, were charged in a four-count indictment by a federal grand Jury on Thursday, April 4, 2013. The indictment was unsealed today as Bates was taken into custody by federal agents, and Smith is already incarcerated in Orleans Parish Prison.
The indictment charges Bates, Smith, and others known and unknown to the grand jury with the November 21, 2010 murder of Christopher Smith.
Count one charges Bates with solicitation to commit a crime of violence, in violation of 18 U.S.C. § 373. If convicted, Bates shall be imprisoned not more than one-half the maximum term of imprisonment or fined not more than one-half of the maximum fine prescribed for the punishment of the crime solicited or both; or, if the crime solicited is punishable by life imprisonment or death, shall be imprisoned for not more than 20 years.
Count two charges Bates and Smith with the use of interstate commerce facilities in the commission of murder-for-hire, in violation of 18 U.S.C. § 1958(a). If convicted, Bates and Smith shall be punished by death or life imprisonment or shall be fined not more than $250,000 or both.
Count three charges Bates and Smith with causing the death of Christopher Smith through the use and carrying of a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(j)(1). If convicted, Bates and Smith shall be punished by death or by imprisonment for any term of years or for life.
Count four charges Bates and Smith with conspiracy to possess firearms during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(o). If convicted, Bates and Smith shall be imprisoned for not more than 20 years, fined under Title 18, or both.
U.S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This indictment is the culmination of a federal grand jury investigation that was conducted with the assistance of the Federal Bureau of Investigation (FBI), the Jefferson Parish Sheriff’s Office, and the United States Attorney’s Office for the Eastern District of Louisiana. This case is being prosecuted by Assistant United States Attorneys Greg Kennedy and Liz Privitera.

Former Marine Admits Running Elaborate Fraud Scheme to Get Financial Help to Play on PGA Tour

DALLAS—Michael Duye Campbell, 30, of Houston, appeared in federal court in Dallas today and pleaded guilty before U.S. District Judge Jorge A. Solis to an information charging one count of mail fraud, stemming from a scheme he ran from 2010 to 2012 to obtain financial assistance so that he could play professional golf. Campbell, a Houston resident, faces a statutory maximum penalty of 20 years in federal prison, a $250,000 fine, and restitution. He will remain on bond, pending sentencing, which has been set for June 19, 2013, before Judge Solis. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Campbell served in the U.S. Marine Corps from 2000 to 2004; he never deployed overseas and was never injured, severely or otherwise, in combat. Nonetheless, he began representing himself as a U.S. Marine combat veteran who had suffered a traumatic brain injury (TBI) while deployed to Iraq in support of Operation Iraqi Freedom.
As part of his elaborate scheme, Campbell falsely told others that while on patrol in Fallujah, Iraq, his unit was attacked when an improvised explosive device (IED), or bomb, detonated. He told others that members of his unit died in the explosion and that he awoke from his serious injuries months later at Walter Reed Army Hospital. He claimed that he could not speak and that when he did regain his speech, he stuttered. He also claimed that he suffered short-term memory loss from his TBI.
Campbell told numerous individuals that his doctor suggested that he take up golf to help with his rehabilitation for his combat injuries. Campbell also created a website and obtained a promotional video recording to further his scheme—all to obtain financial help to play in the PGA.
Campbell was convincing in his story. He met famous people who supported charity golf tournaments for wounded warriors and convinced them to write stories on his behalf and provide him access to expensive golf schools and golf courses. All of this provided Campbell with opportunities to continue his scheme, defraud others, and afford him opportunities to search out endorsement contracts for golf apparel and equipment.
In fact, it was during this process that Campbell learned of the Troops First Foundation and Operation Proper Exit. These charities provide opportunities for severely injured service members to return to the locations where they sustained their injuries and, instead of being medically evacuated, provide them the opportunity to walk to the aircraft and climb the ramp. Campbell participated in Operation Proper Exit VIII, co-sponsored by the USO, in December 2010. He was flown from DFW to Dubai and then provided military transportation for the remainder of the trip. Even though Campbell was neither a combat veteran nor a wounded warrior, he made the trip, which cost thousands of dollars.
Campbell deceived other charities, including Operation Homefront and Counter Valor, by making continued material false statements in furtherance of his scheme to defraud. He obtained many things of value from them including automobile payments, automobile insurance payments, utilities, room and board, transportation, living expenses, and golf tournament entry fees. Likewise, Campbell deceived Vola LLC (an athletic apparel and footwear company located in Richardson, Texas) and Golf Technology Xtreme Inc. (GTX) (a manufacturer of golf clubs), by obtaining and attempting to obtain golf clothing, equipment, money, and other things of value from them.
Campbell admits that the victims of his fraud suffered at least $40,000 in actual losses.
The case is being investigated by the FBI and prosecuted by Criminal Chief Assistant U.S. Attorney Chad Meacham.

Judge Sentences Career Offender to 50 Years in Prison

PITTSBURGH—A resident of Homestead, Pennsylvania has been sentenced in federal court to 50 years in prison on his conviction of violating various federal laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Gary L. Lancaster imposed the sentence on Jay Mathis, 46, formerly of 1938 Remington Drive, Pittsburgh, Pennsylvania.
According to information presented to the court, Mathis was convicted at two separate trials on one count of attempted bank robbery; one count of attempted armed bank robbery; two counts of possession of a firearm and ammunition by a convicted felon; two counts of using, carrying, and discharging a firearm in relation to a crime of violence; and one count of Hobbs Act Robbery.
Mathis was suspected of carrying out a six-month crime spree that began with the robbery on January 8, 2009, of the National City Bank on Walnut Street in the Shadyside area of Pittsburgh and ended with the robbery of the Courtyard Marriot at the Waterfront in Homestead, which occurred on June 19, 2009.
During the robbery of the National City Bank, Mathis walked towards an off-duty police officer working as a security guard within the bank and pulled out a black and silver gun. As the officer drew his weapon, Mathis retreated out of the bank and headed towards Myrtle Way. The officer chased Mathis, telling him to stop. Mathis fired three shots in the officer’s direction, and the officer returned fire twice. The officer then attempted to take cover as Mathis, still running, fired several more rounds. Mathis got into a small silver vehicle and drove off.
During the robbery of the Courtyard Marriot, Mathis pointed a small black revolver at the desk clerk and demanded money. The clerk placed the cash drawer on the counter, and Mathis took approximately $221. After leaving the hotel, Mathis led police officers on a high-speed chase and fired two rounds of ammunition at the police vehicle behind him, the first one hitting the police car’s windshield and causing the officer to duck down and swerve off the road onto an embankment.
Throughout the duration of the six-month crime spree, Mathis was suspected of committing seven other robberies at various banks, a Subway restaurant, and a McDonald’s restaurant.
Additionally, during the six-month time frame and while committing these additional crimes, Mathis was on federal supervised release, following a 10-year prison sentence from a previous conviction for bank robbery.
Due to Mathis’ extensive criminal history, which began as a juvenile, he is considered a career offender and an armed career criminal.
Assistant United States Attorney Barbara K. Swartz prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the city of Pittsburgh Police, and the Allegheny County Police for the investigation leading to the successful prosecution of Mathis.

Anchorage Residents Charged with Wire Fraud, Theft of Honest Services, Money Laundering, and False Tax Returns

ANCHORAGE—U.S. Attorney Karen L. Loeffler announced today that Anchorage resident Kenneth Browning, 60, was charged with wire fraud, theft of honest services, money laundering, and false tax returns. The same indictment also charges Anchorage resident Jerald Briske, 74, with 22 counts of wire fraud. The offenses charged occurred from May 2008 through April 2010.
According to the indictment, Browning was employed as a Federal Property Allocation Officer with the state of Alaska, Department of Administration, Division of General Services, Property Management Office. In this position, Browning was responsible for allocating surplus federal property to qualified state recipients. Briske was a corporate officer for Coast Line Enterprises Inc., a used equipment selling, salvage, and mining business run by Briske and located in Anchorage, Alaska.
The indictment alleges a scheme between Browning and Briske whereby Browning would illegally divert surplus federal property intended for qualified state agencies or non-profits to Briske, knowing that Briske was not qualified to receive the property. Briske, in coordination with Browning, would then sell the fraudulently obtained surplus federal property to other businesspeople in Alaska and elsewhere, and both Briske and Browning would share the illegally obtained proceeds derived from this scheme.
The indictment alleges that Browning and Briske conducted 22 separate transactions as part of the scheme to defraud. As a result of the scheme, Browning received approximately $140,150 in illegally obtained payments from Briske. It is alleged that Briske obtained approximately $220,870 worth of property to which neither he nor Coast Line Enterprises Inc. were entitled.
Browning is also charged with 22 counts of theft of honest services fraud for defrauding the state of Alaska. He is also charged with one count of money laundering by using proceeds of the scheme to purchase a 2004 Ford Mustang convertible. Browning is also charged with four counts of filing false tax returns for failing to report income from the scheme on his tax returns.
The maximum penalty for both wire fraud and theft of honest services is 30 years’ imprisonment with a $250,000 fine. The maximum penalty for money laundering is 10 years’ imprisonment with a $250,000 fine. Filing false tax returns carries a three-year term of imprisonment and a fine of $100,000. An arraignment date has been set for March 27, 2013.
Ms. Loeffler commends the Internal Revenue Service and the Federal Bureau of Investigation for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Three Philippine Nationals Convicted in Los Angeles of Importing Military-Grade Weapons

WASHINGTON—Three Philippine nationals were convicted today in Los Angeles of illegally importing military grade weapons into the United States after being caught in a sting operation that was conducted in the Philippines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Bill Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office.
Sergio Syjuco, 26; Cesar Ubaldo, 27; and Arjyl Revereza, 26, each of the Philippines, were convicted after a four-week trial by a federal jury in U.S. District Court in the Central District of California of conspiring to illegally import the weapons into the United States and aiding and abetting the importation of those weapons. The defendants were charged in an indictment filed on January 12, 2012.
According to the evidence presented at trial, the defendants conspired to sell high-powered military and assault weapons to a buyer interested in bringing weapons into the United States to arm drug dealers in Mexican drug cartels and Mexican Mafia gang members. In November 2010, Ubaldo met with a prospective weapons buyer, who was actually an undercover FBI agent, and offered to introduce the agent to suppliers of high-powered firearms. Ubaldo subsequently introduced the undercover agent to Syjuco, who supplied the weapons, and Revereza, who was a police officer in the Philippines Bureau of Customs who facilitated the movement of the illegal weapons through Philippines customs and eventually into the United States. The weapons supplied included a rocket propelled grenade launcher, a mortar launcher, an M203 single-shot grenade launcher, and 12 Bushmaster machine guns, as well as explosives including mortars and grenades. The trial evidence demonstrated that the defendants also illegally imported into the United States the highest level military body armor.
The weapons, which were tracked and safeguarded by the FBI during their shipment, landed in Long Beach, California, on June 7, 2011, where they were seized by the FBI.
At sentencing, which is scheduled for June 10, 2013, each defendant faces a maximum potential penalty of five years in prison and a $250,000 fine for conspiracy to import weapons into the United States, as well as 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons, excluding the 12 fully automatic Bushmaster firearms. In addition, defendants Syjuco and Revereza face a maximum potential penalty of 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons in this case, and five years in prison and a $250,000 fine for causing the importation of the 12 fully automatic Bushmaster firearms in this case.
The investigation was conducted by agents and investigators of the FBI, the U.S. Secret Service, and the Philippine National Bureau of Investigation. Deputy Chief Kim Dammers and Trial Attorney Margaret Vierbuchen of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.

Investment Manager Sentenced to Federal Prison for Fraudulent Trade Correction Orders That Cost Customers More Than $900,000

LOS ANGELES—A San Fernando Valley-based investment advisor was sentenced this afternoon to two years in federal prison for his role in an investment scheme in which he stole profits from trades executed on his clients’ behalf, depriving them of more than $900,000.
Philip D. Horn, 51, of Tarzana, was sentenced today by United States District Judge Gary A. Feess. During today’s hearing, Judge Feess noted that Horn had already paid more than $1 million in restitution.
Horn, a former managing director at the Westwood Village branch office of Wells Fargo Advisors and formerly a licensed securities broker, pleaded guilty in September 2012 to two counts of wire fraud. Horn specifically admitted that he engaged in a scheme in which he obtained more than $730,000 through a series of trades that were initially executed in the accounts of clients that he managed and, if the trades proved to be profitable, were fraudulently “corrected” to remove the trades from the clients’ accounts and “re-billed” to Horn’s own accounts. Further review of Horn’s activities by forensic accountants retained by Wells Fargo Advisors to investigate the full extent of Horn’s activities showed other types of fraudulent “correction” orders, including transferring unprofitable trades in his own account to the accounts of WFA customers. Horn executed the fraudulent orders between April 2009 and October 2011, when he was terminated by Wells Fargo Advisors.
Wells Fargo Advisors undertook a forensic analysis of all accounts impacted by Horn’s scheme and, according to court filings, has repaid money improperly taken from customer accounts.
Horn was ordered to begin serving his prison sentence on April 12.
The case was investigated by the Federal Bureau of Investigation.

Tucson Businessman Sentenced to 151 Months for Unlawful Possession and Use of a Chemical Weapon

TUCSON—On March 1, 2013, Todd Russell Fries, aka Todd Burns, age 49, of Tucson, Arizona, was sentenced by U.S. District Judge Cindy K. Jorgenson to 151 months in the Bureau of Prisons. Fries was found guilty by a federal jury on October 5, 2012, of unlawful possession and use of a chemical weapon and providing false information to the FBI.
Evidence presented at trial showed that the victims hired Fries, the owner of Burns Power Washing, to perform work on the driveway of their northwest Tucson home. Although Fries’ employees performed the work, the victims were not happy with its quality. The victims ultimately stopped payment on the final installment, which was a check in the amount of $200 made payable to Fries.
Following cancellation of the check, the victims were the subject of what was originally thought to be a hate crime. On the morning of November 1, 2008, the victims woke up to find that motor oil, paint, grease, feces, dead animals, and foam packing peanuts had been strewn on the driveway leading up to the front door of their home. The home and driveway had been painted with graffiti, which included swastikas and slurs. The garage door was sealed shut with an adhesive.
As a result of the first attack, the victims moved to a gated community near the Omni National Golf Course. On the morning of August 2, 2009, the Pima County Sheriff’s Department received several emergency calls that reported a strong chemical smell near the Omni National Golf Course. The Sheriff’s Department and the Northwest Fire Department responded to the victims’ home and observed a strong chlorine smell, as well as a huge white cloud containing chlorine that enveloped the neighborhood. After evacuating the neighborhood, deputies found buckets of burning, gas-emitting, debris in front of the home, as well as on the back patio of the home. Deputies also found a thick, viscous, slimy material, which appeared to be a combination of paint, motor oil, and foam peanuts, spread on the front driveway, the sidewalk, and the walkway leading to the front door of the home. In addition, deputies found dead animal and woodpecker carcasses strewn in the front of the home. Gang graffiti was spray painted on the front of the home. The front door, windows, and garage door were all sealed shut with a foam expanding seal.
The FBI investigation was able to link the items found at the scenes of both attacks to Fries.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Pima County Sheriff’s Department, the Marana Police Department, the Tucson Police Department, and the Northwest Fire Department. The prosecution is being handled by Beverly K. Anderson and David A. Pimsner, Assistant U.S. Attorneys, District of Arizona, Tucson and Phoenix.

Three Individuals on Trial Plead Guilty, Admit Roles in Investment Fraud Schemes

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that three individuals who had been on trial in Hartford federal court have pleaded guilty to various offenses stemming from two separate investment schemes.
On February 25, Robert Rivernider, 47, of Wellington, Florida, pleaded guilty to two counts of conspiracy and 16 counts of wire fraud; and his sister, Loretta Seneca, 50, of Boynton Beach, Florida, pleaded guilty to one count of conspiracy and one count of wire fraud. On March 1, Robert Ponte, 59, of Stonington, Connecticut, pleaded guilty to two counts of conspiracy, 14 counts of wire fraud, and two counts of tax evasion. The trial before United States District Judge Robert N. Chatigny began on February 7.
“As the overwhelming evidence in this trial revealed, Rivernider and Ponte recruited individuals to invest their money by making false promises of guaranteed, high returns,” stated U.S. Attorney Fein. “Their investment program was nothing more than a Ponzi scheme, which left several investors in financial ruin. With the assistance of Ms. Seneca, these defendants also engaged in a real estate investment scheme that defrauded more individuals, as well as lending institutions. The U.S. Attorney’s Office is committed to working with the FBI, IRS-CI, and our other law enforcement partners to root out financial schemes to protect the investing public.”
“The FBI conducted an extensive investigation into the various conspiracies orchestrated by the three defendants, conspiracies designed with no goal other than to enrich themselves at the expense of other individuals and banks alike,” stated FBI Special Agent in Charge Mertz. “Cases like this are only successful with the teamwork of our federal partners. The IRS was instrumental to this investigation, as was the United States Attorney’s Office, which was exceptional in presenting a case at trial that resulted in three guilty pleas before even concluding its case.”
According to court documents and the evidence disclosed during the trial, between approximately June 2005 and April 2008, Rivernider and Ponte conspired to defraud several victim investors by misrepresenting that the investors’ money would be invested in legitimate, high-return investments. As part of the conspiracy, Rivernider and Ponte used the Internet and other means to market a debt payment program typically called “No More Bills” through The Hudson Group, an entity that Ponte established. With the “No More Bills” program, Rivernider and Ponte sought victim investors to invest money with them, funds that the victim investors typically would raise through home equity lines of credit, or would borrow from 401K plans.
Rivernider and Ponte materially misrepresented that investors would receive a substantial investment return, typically a monthly repayment on the invested money of approximately seven to 10 percent of their initial investment; that the returns would continue for a period substantially longer than needed to recoup the initial investment and result in a return substantially greater than the initial investment; that the victim investors’ existing debts and home equity lines of credit, if taken out to fund the investment, would be repaid in full from investment returns, and that the victim investors’ money were being invested offshore in legitimate high-return investments, including investments in foreign currency exchanges, hedge funds, or other high-yield ventures. Instead of investing the funds as promised, Rivernider and Ponte used the funds to pay their and their extended families’ living expenses, as well as the preexisting debts of other investors.
Through this first scheme, investors lost at least $3 million.
In a second scheme, between approximately November 2006 and December 2007, Rivernider, Ponte, and Seneca engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited. As part of the scheme, Rivernider, Ponte, and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders. Rivernider and Ponte typically represented to borrowers that these properties would be passive investments and that Ponte and Rivernider would be responsible for the details of the purchase, rental, maintenance, and payment of the mortgages on the properties. The co-conspirators made false representations to the victim borrowers that Rivernider and Ponte would arrange for the purchase of the properties by the borrowers at markedly discounted values. In fact, Rivernider and Ponte frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price. Rivernider, Ponte and others also falsely represented that the investment properties would return to the victim borrowers sufficient money to cover the carrying costs, as well as reduce the borrowers’ other debt burden.
Rivernider, Ponte, Seneca and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders. Seneca, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by Rivernider to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.
This scheme involved at least 100 properties, and the investigation has revealed that the victim lending institutions have suffered nearly $20 million in losses.
When they are sentenced, Rivernider and Ponte face a maximum term of imprisonment of 20 years for conspiring on the first investment fraud scheme; and Rivernider, Ponte, and Seneca face a maximum term of imprisonment of 30 years for conspiring on the real estate investment scheme. The wire fraud charges also carry maximum terms of imprisonment of 20 or 30 years. In addition, the tax evasion counts against Ponte carry a maximum term of imprisonment of five years on each count.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys John H. Durham and Christopher W. Schmeisser.
The Connecticut Securities, Commodities, and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The task force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department; and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll-free, 855-236-9740, or by sending an e-mail to ctsecuritiesfraud@ic.fbi.gov.
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.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

Iranian Citizen and U.S. Citizen Residing in Louisville Sentenced in Plot to Export Aircraft and Aircraft Parts to Iran

LOUISVILLE, KY—David J. Hale, U.S. Attorney for the Western District of Kentucky; Lisa Monaco, Assistant Attorney General for National Security; and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, Louisville Division, announced the sentencings today of two men to charges related to unlawful export of aircraft and aircraft parts from the United States to Iran. One of the defendants, Hamid Asefi, age 67, is a citizen and resident of the Republic of Iran. The other, Behzad Karimian, also known as “Tony” Karimian, age 52, is a United States citizen living in Louisville, Kentucky, who holds a valid Iranian passport and is employed as a Mesaba Airlines Pilot. Asefi was sentenced to 23 months in prison, and Karimian was sentenced to 46 months in prison by Chief Judge Joseph H. McKinley, Jr. in United States District Court. The defendants pleaded guilty in Louisville before Magistrate Judge James D. Moyer on December 3, 2012. The two-count indictment was returned by a federal grand jury meeting in Louisville on August 2, 2012, and unsealed prior to their change of pleas hearings.
Hamid Asefi and Behzad Karimian were both charged with conspiracy to violate and violation of the International Emergency Economic Powers Act for exporting, selling, or causing the export or sale of aircraft and aircraft parts without first having obtained the required license from the U.S. Department of Treasury. Asefi made his initial appearance in U.S. District Court in Louisville, Kentucky, on June 1, 2012. Karimian was arrested and made his initial appearance in U.S. District Court in Louisville, Kentucky, on June 6, 2012.
Asefi is the principal officer of Aster Corp Ltd., an Iranian company with offices in both Iran and the United Kingdom. The indictment charges that, beginning as early as August 2007 and continuing through April 2011, Asefi used the United Kingdom office of Aster to serve as a transshipment point to facilitate shipment of goods from the United States to Iran; Asefi used Aster to facilitate the shipment of goods from the United States to Iran through third party countries; Asefi sent requests on behalf of Iranian entities to Karimian for purchases of aircraft and aircraft parts located in the United States or owned by United States persons; and Karimian knowingly and willfully made inquiries, placed orders, and attempted to facilitate the purchase of aircraft and aircraft parts located in the United States and owned by United States persons on behalf of defendant Asefi and persons in Iran.
Asefi and Karimian pleaded guilty to count one of the indictment and admitted in court that they acted with knowledge and intent to violate the Iran embargo when on September 27, 2007, Asefi and Karimian sent e-mails to establish a “profitable business collaboration” for the purpose of procuring aircraft and aircraft components for end-users in Iran. They further admitted that on or about October 1, 2009, Asefi sent an e-mail to Karimian which outlined the terms of delivery and payment on future transactions with Iran Air and stated “...remember that, only U.S. Embargo has brought this chance and benefit to us, to get involved in these deals....”
Further, defendants Asefi and Karimian pleaded guilty to count two of the indictment and admitted that beginning in September 2009 and continuing through April 2010, they violated the embargo against Iran by exporting and causing the export of services related to the sale of a G.E. Aircraft Engine Model CF6-50C2, as well as attempting the procurement of helicopters manufactured by Bell Helicopter, from the United States to Iran, without first having obtained the required authorizations from the U.S. Department of Treasury. All of the aircraft and aircraft parts involved in this case were intended for civilian use.
“The investigation and prosecution of national security cases is the top priority of the Department of Justice and my Office,” stated David J. Hale, the U.S. Attorney for the Western District of Kentucky. “We view the circumvention of Iranian export control laws as a very serious matter. The FBI should be commended for its excellent work in disrupting this international scheme and bringing these men to justice.”
The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the president declares a national emergency with respect to a national security threat. On March 15, 1995, the president issued an executive order declaring the actions and policies of the government of Iran constituted a national emergency. On May 6, 1995, the president issued an executive order imposing the Iran Trade Embargo. On June 23, 2011, the U.S. Department of the Treasury imposed sanctions on Iran Air after designating it as a proliferator of weapons of mass destruction for providing material support and services to Iran’s Islamic Revolutionary Guard Corps.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun of the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney Casey Arrowood of the Counterespionage Section of the Justice Department’s National Security Division. The case was investigated by the Federal Bureau of Investigation, Louisville Division.

Liberty Man Charged with Attempted Bank Robbery After Shooting, High-Speed Chase

KANSAS CITY, MO—Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Missouri man was charged in federal court today with attempted bank robbery after being shot by an employee at a Trimble, Missouri bank and leading law enforcement officers on a high-speed chase.
Michael Stephen Oliva, 34, of Liberty, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Missouri. Oliva, who has not yet had a court appearance, remains hospitalized and in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, Oliva entered First Security Bank at 202 U.S. Hwy. 169 in Trimble at about 1:25 p.m. Friday, March 1, 2013. Oliva allegedly pulled on a black mask, pointed what appeared to be a handgun (but was later found to be a realistic plastic replica) at a bank employee, and ordered her to give him the money in her teller drawer. The employee instead dropped to the floor behind the teller stations and began crawling toward another bank employee, shouting for help. As she was crawling, the affidavit says, she saw Oliva lean over the teller station and point his handgun at her. She grabbed a plastic trash can and tossed it over the teller counter toward Oliva; however, Oliva had moved around the end of the teller stations and was directly behind her.
The second bank employee, who was in an office, heard the shouts for help. He saw Oliva pointing a handgun at the first bank employee, the affidavit says, and retrieved a Smith & Wesson .357 revolver. He fired two rounds at Oliva. The first shot struck Oliva in the jaw, according to the affidavit, and he turned and started toward the bank’s front doors. No money was taken during the attempted robbery.
After Oliva left the bank, the affidavit says, the first employee got up from the floor and saw him staggering behind a nearby building. She then saw a silver car drive very fast on Hwy. 169 past the bank, and she called 9-1-1. Oliva had left a sizable trail of blood for about 150-200 feet that led to a handicapped parking space in the nearby building’s parking lot.
According to the affidavit, Trimble Police officers located Oliva’s Dodge Stratus and began pursuing him at speeds approaching 100 miles per hour. Officers deployed spike strips and the vehicle stopped. When officers approached the car, Oliva got out of the vehicle and asked, “You guys going to let me die?” Officers noted that Oliva appeared to have suffered a gunshot wound to the jaw or chin, and there was a large amount of blood on Oliva and in his vehicle.
Oliva was placed under arrest and transported to an emergency room for medical treatment.
Dickinson cautioned that the charge contained in this complaint is simply an accusation and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Trimble, Missouri Police Department; the Clinton County, Missouri Sheriff’s Department; and the FBI.

Quincy Man Sentenced for Running Illegal Gambling Business in Boston’s Chinatown, Using Violence to Collect Debts

BOSTON—As part of an ongoing investigation into extortion and illegal gaming in Boston’s Chinatown, a Quincy man was sentenced today for running an illegal gambling business. The investigation included a court-authorized wiretap on the defendant’s phone and a series of consensual video recordings made inside gambling dens.
Minh Cam Luong, a/k/a “Ming Jai,” 48, was sentenced by U.S. District Chief Judge Patti Saris to 84 months in prison to be followed by three years of supervised release, forfeiture pursuant to the agreed forfeiture orders, and a special assessment in the amount of $1,100. Luong pleaded guilty in September 2012 to an 11-count-indictment charging him with running an illegal gambling business and using threats of violence, and actual violence, to collect debts from gamblers and others who borrowed money. Judge Saris imposed the sentence today at the end of a three-day evidentiary sentencing hearing. The sentence represented an upward departure from the Guideline range as Judge Saris had calculated it. She based her upward departure on Luong’s “appalling” threats of violence and use of actual violence to terrify his numerous extortion victims over about a two-year period.
“The people of Boston’s Chinatown deserve to live in peace and without violence in their community,” said United States Attorney Carmen M. Ortiz. “We are hopeful that this lengthy sentence will offer some relief to the community. Prosecuting organizations who prey on others will continue to be a priority for my office.”
Luong admitted that he managed the illegal gambling business and that numerous people were victims of his extortionate collections scheme. Luong’s business ran a series of three illegal gambling dens on Edinboro Street, Harrison Avenue, and Beach Street in Chinatown from early July 2009 through June 2011. The gambling dens offered high-stakes gambling on Chinese table games. The most lucrative game was “pai gau,” in which the gamblers play against each other, not against the “house.” The house collects a five percent commission on every winning hand, and the winnings on each hand could range from hundreds to tens of thousands of dollars.
Luong and his company lent large amounts of money to gamblers and others. When debtors did not pay, Luong and his associates threatened to come after them and beat them up. Others, including the operators of other Chinatown gambling dens, were beaten up in order to maintain Luong’s “face” and his ability to collect debts from frightened debtors.
During one of the intercepted conversations, Luong told a criminal associate that he had opened his illegal gambling business in Boston rather than in New York, because Boston was “like the countryside” but “quite wealthy,” and “these country folks don’t know anything.” Luong said that his Beach Street gambling den had made $100,000 during a three-day period around Chinese New Year 2011, and that normally, the gambling den generated $60,000 or $70,000 per week in profits.
In several other intercepted conversations and voicemail messages, Luong threatened debtors with dire consequences if they did not pay up. Luong told one debtor that the debtor’s whole family would “go to hell” if he did not pay. Luong told the debtor about someone else whom Luong had beaten up the previous night and warned the debtor that the same could happen to him. Luong told another debtor that she should not think that her being a woman would prevent Luong from beating her up if she did not pay.
“Boston is one of a dozen cities nationwide that the FBI has identified as having a prevalence of Asian criminal enterprises. By identifying the threat posed by these enterprises, the FBI and our law enforcement partners can be persistent, methodical, and unyielding in investigating their activity,” said Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Division. “The residents of Boston’s Chinatown and others affected by Mr. Luong’s crimes should know that we are continuing to pursue those whose criminal activity disrupts the community’s economic and social vibrancy.”
“The defendant in this case gambled and lost. Illegal gambling is not a victimless crime. Those who participate in these criminal enterprises have no problem using threats and violence to collect outstanding debts,” said Boston Police Commissioner Edward F. Davis. “Today’s sentence sends a powerful message: this type of activity will not be condoned.”
“In addition to breaking the law by conducting unauthorized games of chance and usurious lending, gambling houses breed, and attract violence,” said Colonel Timothy P. Alben, superintendent of the Massachusetts State Police. “The people who run the games use intimidation and violence to collect debts, and the games themselves are targets for criminals, often armed, who are looking to do a rip for a quick score. Operations like the one Minh Cam Luong ran cannot be tolerated.”
Quincy Police Chief Paul Keenan said, “The Quincy Police are pleased with the outcome of the Minh Cam Luong case. The outcome was the result of a long and difficult investigation working in collaboration with a number of law enforcement organizations, the FBI, the IRS, Boston Police, Medford Police, Massachusetts Department of Corrections, State Police, and the U.S. Attorney’s Office.”
“The Massachusetts Department of Correction is committed to working with other criminal justice agencies in a joint effort to ensure public safety,” said Luis S. Spencer, Commissioner of the Massachusetts Department of Correction.
Luong was initially charged along with nine others in 2011. The indictment was superseded in August 2012, charging two additional individuals. To date, all 10 of the defendants charged in the initial indictment and one of the defendants added by the superseding indictment have pleaded guilty to illegal gambling business or extortionate collections conspiracy charges. Last week, Pau Hin, also of Quincy, whom the government described in court as Luong’s partner and primary enforcer and debt collector, pleaded guilty to illegal gambling business and extortionate collections charges and also pleaded guilty to participating with Luong in a conspiracy to make extortionate high-interest loans to gamblers and others in Chinatown and at Foxwoods casino. Pau’s sentencing is scheduled for June 5, 2013.
United States Attorney Ortiz; SAC DesLauriers; William P. Offord, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation in Boston; Boston Police Commissioner Davis; Colonel Alben; Quincy Police Chief Keenan; Medford Police Chief Leo A. Sacco, Jr.; and Commissioner Spencer made the announcement. The cases are being prosecuted by Assistant U.S. Attorneys Richard L. Hoffman and Timothy E. Moran of the Organized Crime Strike Force Unit.