DENVER – Raul Mendoza, age 51, of Denver, Colorado was sentenced on November 20, 2015 by U.S. District Court Judge R. Brooke Jackson to serve 48 months in federal prison, followed by three years of supervised release, the United States Attorney John Walsh announced, along with Special Agents in Charge of the IRS Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).  Judge Jackson also ordered the forfeiture of 19 vehicles and currency in the amount of $5,277.16.

According to the indictment and plea agreement, beginning in February 2008 and continuing through May 2012, Raul Mendoza (Mendoza) and Isidro Noe Mendoza-Ortiz (Mendoza-Ortiz), conspired with each other and others to structure currency (the depositing of cash in amounts just under $10,000) by depositing transactions with the intent to evade the reporting requirements as required by law.  Daily cash receipts from the business Chopeque Auto Sales, which is owned by Mendoza and located at 6011 Quebec Street, in Commerce City, were received at the business and structured into separate accounts at various banks to avoid the $10,000 reporting requirements.  From February 26, 2008 through May 29, 2012, they structured over 700 deposits totaling $4,543,714.

As part of the conspiracy, on March 8, 2012, Mendoza and Julia Castillo-Caraveo (Castillo-Caraveo), knowingly caused Chopeque Auto Sales, a non-financial trade or business, to fail to file a Federal IRS From 8300, a report required by law for all currency transactions over $10,000 received by a business.  Particularly, they sold a 2008 Chevrolet Silverado 1500 in exchange for $20,900 that was represented by undercover law enforcement officers to be the proceeds of a specified unlawful activity (drug distribution) and that they did so in order to conceal the nature of the specified unlawful activity and to avoid IRS Form 8300 reporting requirements.

Mendoza, along with his co-conspirators, conspired to conceal the nature and source of the specified unlawful activity and attempted to launder drug proceeds.  Particularly, Chopeque Auto Sales sold automobiles to known drug dealers, prepared false documents relating to the sale of vehicles to known drug dealers, structured currency deposits to conceal the source, and falsely claimed to law enforcement authorities to be a valid lien holder of a seized vehicle in order to assist a known drug dealer in seeking the return of the vehicle. 

“Money is the fuel that drives and motivates drug dealers, and for that reason, laundering drug money is a serious federal offense,” said U.S. Attorney John Walsh.  “During the investigation of a drug trafficking organization, it was determined that this car dealer was laundering proceeds to hide illegal conduct.  Thanks to banking laws, it was one key way law enforcement was able to identify the dealership’s involvement in the unlawful activity.”

“This is a great example of law enforcement agencies working together as we each brought our expertise to the table. As with this case, IRS CI Special Agents fill a unique role in the war on drugs; because of our financial background and expertise, we are able to follow the money trail and focus on money laundering activities and the seizure of assets derived from the drug proceeds,” said Steven A. Osborne, Acting Special Agent in Charge of IRS Criminal Investigation, Denver Field Office.

“Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) is committed to working with its federal, state and local partners to investigate crimes and bring those to justice who attempt to conceal and launder money to fund illegal activities, in this case a drug trafficking operation,” said David A. Thompson, special agent in charge of HSI Denver. “Dismantling drug trafficking operations is a critical aspect of our investigations and a vital step in combatting crime as a whole and making our communities safer.”

“Individuals who assist in or facilitate the illegal activities of drug traffickers will also be held accountable for their actions,” stated Barbra Roach, Special Agent in Charge of the Drug Enforcement Administration’s Denver Field Division.  “DEA will target all levels of these criminal enterprises.”

This case was investigated by agents with IRS-Criminal Investigation, the Drug Enforcement Administration and Homeland Security Investigations with assistance from the Denver Police Department, Commerce City Police Department, Thornton Police Department, and the Colorado Department of Revenue – Auto Industry Division. 

This case was prosecuted by Assistant U.S. Attorneys Celeste Rangel and Stephanie Podolak.  The asset forfeiture was handled by Assistant U.S. Attorney Tonya Andrews.

DALLAS — Brian J. Polito of Allen, Texas, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 84 months in federal prison and ordered to pay $8,768,351 in restitution following his guilty plea in May 2015 to an information charging one count of mail fraud stemming from his operation of an oil and gas investment fraud scheme.  U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.

Polito must surrender to the Bureau of Prisons on January 6, 2016.

Polito was the sole owner/operator of GC Resources, LLC, an oil and gas investment firm that was located on Preston Road in Dallas.  Beginning in December 2011, Polito defrauded investors by selling interests in oil and gas projects in which GC Resources had no ownership or interest. 

As part of the scheme, Polito researched “Company A” on the Texas Railroad Commission’s website and determined that Company A’s wells were producing.  Polito then identified Company A’s drilling permits for wells that were going to be drilled in the future.  Through GC Resources, Polito began soliciting investments into Company A’s projects even though GC Resources had no control or interest in the wells.

To convince investors to invest with GC Resources, Polito told investors that GC Resources owned the oil and gas drilling leases, when, in fact, it did not have any ownership or interest in the lease.  Polito also misrepresented that GC Resources had an interest in Company A’s wells, when in reality, GC Resources had zero interest in Company A’s wells.  Polito informed actual and potential investors that GC Resources had a contract with Company A, which was false.  Polito even supplied investors with a document purporting to be a contract between Company A and GC Resources, but that document was fraudulent, as Polito had created it using Photoshop to forge signatures of Company A employees.

Polito paid investors of Company A projects with other fraudulently obtained funds in the manner of a Ponzi scheme.

Polito solicited investments by making cold calls to potential investors and sending prospective investors a packet of materials that included the forged Company Agreement and other documents.  Polito deposited investors’ money in a GC Resources bank account to which he had sole control.  Over the course of the scheme, Polito raised multiple millions from victim investors, all of which was used to fund a lavish lifestyle.

When investors asked to see the well site, Polito, or a salesperson working for him, would take investors to the actual well site, which was under the control of Company A, in an effort to further deceive investors and prolong his scheme.  Polito even obtained production records from the Railroad Commission’s website for Company A wells and provided that information to investors, even though neither Polito or GC Resources had any interest whatsoever in Company A’s wells.

According to evidence introduced at sentencing, Polito spent a significant portion of the investors’ money on luxury automobiles.  At one time, Polito had the following vehicles:  (1) a 2014 50th Anniversary Aventador Lamborghini Coupe; (2) a 2014 50th Anniversary Lamborghini Gallardo; (3) a 2014 Gallardo Squadra Lamborghini Corse; (4) a 2014 Porsche Panamera S E-Hybrid; (5) a 2014 Porsche 911 Turbo S; (6) a 2014 Porsche Cayenne Turbo S; (7) a 2014 Jeep Grand Cherokee SRT8; (8) a 2014 Mercedes-Benz SLS AMG Black Series; (9) a 2014 Nissan GR-R; (10) a 2014 McLaren 12C Spider; and (12) a 2014 Ferrari F12.

The government has engaged in significant efforts to secure assets for potential restitution to victims.  Among other things, the government has recovered $664,000 from the liquidation of the net equity in the following vehicles:  a 2014 Roll Royce Wraith, a 2015 McLaren 650S Coupe, a 2014 Lamborghini, a Aventador Anniversary Coupe, a 2015 BMW M4 Coupe, a 2014 Mercedes E63 Wagon, a 2014 Ferrari 458 Speciale, a 2014 Jeep Cherokee SRT8, and one bank account subject to the entry of restitution and/or forfeiture orders.  In addition, as detailed in the Bill of Particulars filed with the Court, the government seized and will forfeit 64 luxury watches from various manufacturers, including Zenith, Tag Heuer, Rolex, Hyt, Hublot Geneve, Lumirror Panerai, Breitling, among others.  The government also coordinated the sale of Polito’s residence in Allen, Texas, recovering an additional $656,923.89 in net proceeds.

The Securities and Exchange Commission (SEC) filed suit against Polito and GC Resources, LLC in April 2015 for defrauding investors through the sale of interests in oil and gas wells the company never owned.  A partial judgment has been issued in that case that permanently enjoins him from further violations of the securities laws and permanently bars him from participating in the purchase, offer, or sale of any oil-and-gas related securities offering.

The FBI investigated the case.  Assistant U.S. Attorneys J. Nicholas Bunch and Melissa A. Childs prosecuted.

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CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a former West Virginia State Trooper was sentenced today in federal court in Charleston, West Virginia, to two years and six months in federal prison for distribution of oxymorphone. Christopher Lee Saunders, 43, of Beckley, previously pleaded guilty in June 2015 to the federal drug charge.

Saunders admitted that on January 22, 2015, he sold oxymorphone to a confidential informant working with law enforcement. The drug deal took place at the Walmart parking lot located off Robert C. Byrd Drive in MacArthur.

This case was investigated by the West Virginia State Police, and was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.

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BOISE – Ronald Eugene Bohm, 50, from California, pleaded guilty today in United States District Court to possession of methamphetamine with intent to distribute and possession of a machinegun, U.S. Attorney Wendy J. Olson announced.  Bohm was indicted by a federal grand jury on August 11, 2015. 

According to the plea agreement, on July 26, 2015, Meridian Police Officers searched Bohm’s residence in Meridian, Idaho.  In the master bedroom closet, officers found approximately 63 grams of methamphetamine and $1,122.  Officers also located a digital scale in the master bedroom.  Police officers found numerous firearms and firearm components in the residence including a drop in auto sear, which is a combination of parts designed to convert a semiautomatic firearm into a fully automatic machine gun.  Other firearms located in the residence include two AR-15 semiautomatic rifles, five AR-15 receivers, a .22 caliber rifle with a shortened barrel, and a 7.62X54 millimeter rifle with a shortened barrel.  The government is seeking forfeiture of the firearms and firearm components.   

The charge of possession of methamphetamine with intent to distribute is punishable by a minimum term of imprisonment of five years and up to forty years, a maximum fine of $5 million, and a minimum term of four years supervised release.  Bohm’s possession of an unregistered machinegun is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.  Bohm is scheduled to be sentenced on February 11, 2016, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.  The co-defendant, Constance Bohm, is scheduled for trial on January 25, 2016.

This case was investigated by the Meridian Police Department and the Treasure Valley Metro Violent Crime Task Force.  The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. 

The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes.  The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.  For more information, visit treasurevalleypartners.org. 

BOISE – Alexander Christian Gruber, 20, of Boise, Idaho, was sentenced today to 36 months in prison for possession and distribution of methamphetamine, and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.  Chief U.S. District Judge B. Lynn Winmill also ordered Gruber to serve three years of supervised release.  Gruber pleaded guilty on September 15, 2015.

According to court proceedings, Gruber was arrested in Boise, Idaho, on January 20, 2015.  Boise police officers arrested Gruber after he sold Dilaudid pills and a sawed-off shotgun to an undercover agent.  Earlier in January 2015, Gruber offered to sell cocaine to a confidential informant, but it turned out to be methamphetamine.  At the time Gruber possessed and sold the short-barrel shotgun, he was a prohibited as a convicted felon from possessing any firearm.  The weapon made from the shotgun was not registered as required.  Gruber admitted he possessed the methamphetamine with intent to distribute it.  He also admitted that he sold the firearm, and possessed other firearms.

“These penalties handed down by the federal court for possession of meth with intent to distribute it and possession of a firearm by a convicted felon are appropriate despite the young age of the defendant,” said Olson.  “While special consideration is given by the courts to young defendants like Gruber, the penalties are appropriate because of society’s concerns about persons who traffic in harmful drugs and use firearms.”  

The case was investigated by the Boise Police Department and the Bureau of Alcohol, Tobacco and Firearms.

BOISE – Alejandro Vela, 33 of Buhl, Idaho, was sentenced today to 188 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced.  Chief U.S. District Judge B. Lynn Winmill also ordered Vela to serve four years of supervised release following his release from prison.  Vela pleaded guilty on August 6, 2015.         

According to the plea agreement, Alejandro Vela sold methamphetamine to an informant on July 31, 2014.  His wife and codefendant, Esmirna Vela, was present during the transaction.  On September 3, 2015, Alejandro Vela agreed to distribute additional methamphetamine to the informant; however, Esmirna Vela showed up instead and sold an ounce of methamphetamine to the informant.  Esmirna Vela pleaded guilty and was sentenced on November 20, 2015, by U.S. District Court Judge Dee V. Benson to 13 months in prison for the offense.  She was sentenced to three years of supervised release following her term of imprisonment, but she will likely be deported.

The case was investigated by the Treasure Valley Metro Violent Crimes Task Force.  The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. 

The case was prosecuted by the Special Assistant U.S. Attorney hired by the Canyon County Prosecutor’s Office, the Treasure Valley Partnership and the State of Idaho to address gang crimes.  The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.  For more information, visit treasurevalleypartners.org. 

SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Breneth L. Chase, 44, of Stockton, today to four years and 10 months in prison for bank fraud, aggravated I.D. theft, and possession of counterfeit I.D. documents, United States Attorney Benjamin B. Wagner announced.

According to court documents, Chase and others obtained U.S. mail and postal keys stolen during burglaries of post offices in Sutter County and Sacramento County. She used the stolen mail to manufacture checks and identification documents to cash phony checks, apply for lines of credit, and make purchases at local department stores. According to court documents, Chase possessed over five different manufactured identifications including U.S. Military identifications and badges. Chase admitted that she possessed personal and financial information for numerous Sutter and Sacramento County residents.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail, postal property and complex financial crimes committed against the public and the Post Office.”

This case was the product of an investigation of the United States Postal Inspection Service, Sutter County Sheriff's Office, Stockton Police Department, and Sutter Creek Police Department, with the assistance from the Sacramento County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez prosecuted the case.

DENVER – Candice L. White, age 43, of Centennial, Colorado, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 3 months in prison, followed by 5 years supervised release with a condition of 200 hours of community service, for the crime of embezzlement by a bank officer or employee, U.S. Attorney’s Office announced with the Special Inspector General for Troubled Asset Relief Program (SIGTARP).  White was also ordered to pay restitution totaling $92,780.27 to Front Range Bank.  On August 12, 2015, White pled guilty to two counts of embezzlement by a bank officer.  White was first indicted by a federal grand jury in Denver on March 24, 2015.

According to the stipulated facts contained in the plea agreement, from at least July 2009 through March 2011, White, a Senior Vice President of Front Range Bank, knowingly and intentionally embezzled $92,930.27 from client accounts at the Bank.  The plea agreement calls for White to pay restitution in this amount back to the Bank, which has already reimbursed its clients for their losses.  The defendant accomplished her embezzlement by requesting cashier’s checks and withdrawing cash from escrow accounts and other accounts that were not closely monitored by the victim account holders.  She would then use the embezzled money for her own personal use. 

White was familiar with the victim accounts because she was the bank representative assigned to the accounts. To carry out her embezzlement, the defendant approached a teller at the bank with a type of withdrawal slip and falsely informed the teller that she needed the cashier’s check or cash for the client or to pay a bill on the client’s behalf.  Due to her status as a Senior Vice President at the Bank, the tellers trusted that White was telling the truth and had the required supporting documentation for the transactions.

“As this case demonstrates, the Department of Justice and the U.S. Attorney’s Office takes seriously holding bank officials accountable for violations of federal law,” said U.S. Attorney John Walsh.  “The defendant admitted to embezzlement, and will not only experience prison, but will also do substantial community service and pay significant restitution.” 

"White took advantage of unsuspecting bank customers who trusted her to keep their money safe. Instead, she deceived everyone by embezzling their money for her own personal use," said FBI Denver Special Agent in Charge Thomas Ravenelle. "The FBI will continue to work with our law enforcement partners to protect people's bank accounts from embezzlers and other fraudulent schemes."

“While she was a senior vice president at a TARP bank, Candice White embezzled from the bank, a crime for which she will now serve time in prison,” said Christy Goldsmith Romero, Special Inspector General for TARP (SIGTARP). “Ripping off a TARP bank is akin to ripping off taxpayers who funded the bailout.  White embezzled from bank customers, abused the trust of the American taxpayer, and used her position of authority to deceive her co-workers.  The TARP bailout was not created to bailout bank executives.  SIGTARP will work tirelessly to bring justice to all those committing crime inside TARP banks.”

Because Front Range Bank received TARP funds, the Special Inspector General (SIGTARP) assisted the FBI in the investigation. 

White was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.

BOSTON – A Tennessee businessman pleaded guilty today in U.S. District Court in Boston to defrauding investors in connection with the fraudulent sale of millions of dollars of stock in a medical technology company.

Shane Gunn, 40, of Medina, Tenn., pleaded guilty to one count of wire fraud.  U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 2, 2016.

From 2010 to 2013, Gunn, an information technology expert, sold stock in CareXGen, whose principal asset was a patent for a system, he claimed to have designed, that would facilitate the electronic exchange of health information.  To lure investors, Gunn repeatedly misrepresented CareXGen’s profitability and how investors’ money would be used.  He also represented to investors that CareXGen had large contracts lined up worth millions of dollars.  In fact, CareXGen did not have any major contracts and Gunn spent over $1 million of victim investors’ money on himself, his wife and his former girlfriend.

The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.  Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Stephen Heymann of Ortiz’s Economic Crimes Unit.

BOSTON – George Englehart, 51, was sentenced today by U.S. District Court Judge F. Dennis Saylor to 151 months in prison and five years of supervised release.  In September 2015, Englehart pleaded guilty to armed bank robbery and possession of child pornography.

In April 2014, Englehart, who was dressed in dark clothes with a scarf hiding his face, entered a Bank of America in Mansfield, Mass.  He approached a teller, brandished what appeared to be a black semi-automatic handgun, and demanded that the teller give him money.  The teller complied with and gave Englehart $878.  Englehart fled and was located and arrested a short time later in possession of $878 and what appeared to be a black semi-automatic handgun.  The weapon was later determined to be a BB gun.  During Englehart’s booking, his cell phone was found to contain numerous images of children engaged in sexually explicit conduct.

United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Mansfield Police Chief Ronald A. Sellon, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.

DEFENDANT                                  Criminal Case No. 14CR3658-JM

Melissa Ann Vega                   Age: 44           San Diego, CA           

SUMMARY OF CHARGES THAT DEFENDANT VEGA PLEADED GUILTY TO:

Count 1 – Title 18, United States Code, Section 286 B Conspiracy to File False Claims

Maximum penalties: 10 years in prison, $250,000 fine, 3 years of supervised release.

Count 2 – Title 26, United States Code, Section 7201 – Tax Evasion

Maximum penalties: 5 years in prison, $250,000 fine, 1 year of supervised release.

Count 3 – Title 18, United States Code, Section 1028A – Aggravated Identity Theft

Maximum penalties: 2 years in prison to be served consecutive to any other term of imprisonment, $250,000 fine, 3 years of supervised release

OTHER CO-CONSPIRATORS AND CHARGES:

Tammie Cowles                      Age: 41           San Diego, CA            Criminal Case No. 15CR1591-JM

  Pleaded Guilty to:          Title 18, United States Code, Section 286 – Conspiracy to File False Claims

Stephen Elliott                        Age: 28           San Diego, CA            Criminal Case No. 15CR1003-JM

  Pleaded Guilty to:          Title 18, United States Code, Section 286 – Conspiracy to File False Claims

Justin Vega                             Age: 26           San Diego, CA            Criminal Case No. 15CR2198-JM

  Pleaded Guilty to:          Title 18, United States Code, Section 286 – Conspiracy to File False Claims

Deanna Dave                          Age: 49           San Diego, CA            Criminal Case No. 15CR2715-JM

  Pleaded Guilty to:          Title 18, United States Code, Section 1623 – False Declaration before Grand Jury

Jamie Lang                              Age: 27           San Diego, CA            Criminal Case No. 14CR3658-JM

  Pleaded Guilty to:          Title 26, United States Code, Section 5861(d) – Possession of Saw-Off Shotgun

INVESTIGATING AGENCIES

Internal Revenue Service-Criminal Investigation

United States Secret Service

Bureau of Alcohol, Tobacco, and Firearms

Superseding Grand Jury Indictment Adds New Fraud and Money Laundering Charges against Fugitive Hedge Fund Manager, Beverly Hills Broker, and 2 Homm Employees

LOS ANGELES– A former Beverly Hills stockbroker has been indicted – along with fugitive hedge fund manager Florian Homm and two others – in an alleged stock manipulation scheme designed to pump up the reported profits of the Homm-managed hedge funds in a fraud that caused investors to lose approximately $200 million.

A federal grand jury yesterday afternoon returned a superseding indictment that charges three others who alleged participated in a scheme orchestrated by Homm. The new defendants are: Todd Ficeto, 49, of Marion, Ohio, who formerly resided in Malibu; Colin Heatherington, 41, of Port Alberni, British Columbia, Canada; and Craig Heatherington, 38, of Queensland, Australia.

Ficeto today surrendered to federal authorities and is scheduled to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.

Florian Wilhelm Jürgen Homm, 53, was first indicted in March 2013 on charges of securities fraud and wire fraud after he was arrested in Italy (see: http://go.usa.gov/cBCcV). The superseding indictment returned yesterday adds the three new defendants and charges Homm in new counts with investment adviser fraud, money laundering and unlawful monetary transactions.

Homm was the founder and chief investment officer of Absolute Capital Management Holdings (ACMH), a Cayman Islands-based investment advisor that operated from Palma de Majorca in Spain and managed eight hedge funds (the Absolute Funds). Ficeto was the president of a Beverly Hills-based broker-dealer, Hunter World Markets, that he co-owned with Homm. Colin Heatherington was a stock trader at ACMH. 

The superseding indictment charges Homm, Ficeto and Colin Heatherington in a conspiracy to commit securities fraud and eight counts of securities fraud. The indictment charges that, between September 2004 and September 2007, Homm directed the Absolute Funds to buy billions of shares of thinly traded, United States-based “penny stocks” through Hunter World Markets. Ficeto allegedly arranged the stock purchases and caused millions of shares of the same penny stocks to be given to Homm, Hunter World Markets, and CIC Global Capital, which was co-owned by the Heatheringtons

After the hedge funds invested hundreds of millions of dollars in the illiquid penny stocks, Homm and Colin Heatherington caused the hedge funds to trade the stocks among themselves in “cross-trades” made with the assistance of Ficeto at Hunter World Markets, according to the indictment. The cross-trades served to increase the trading prices of the previously illiquid stocks and, in turn, to boost the net asset values and apparent performance of the Absolute Funds, in a practice called “portfolio pumping.” This apparent performance improvement at the hedge funds generated additional fees for Homm and Absolute Capital. It also boosted Absolute Capital’s stock price on the London Stock Exchange, Alternative Investment Market, from which Homm profited by selling shares.

According to the indictment, while manipulating the trading of the penny stocks to falsely and artificially increase the profitability of the Absolute Funds, Homm, Colin Heatherington (through CIC Global Capital), and Ficeto also sold their own personal holdings of the same U.S. penny stocks to the Absolute Funds at the inflated prices, which the indictment alleges was simply embezzling money from the funds.

The indictment further charges two money laundering conspiracies. In the first scheme, Homm, Ficeto and other unnamed conspirators allegedly worked together in an elaborate conspiracy to launder Homm’s illicit proceeds throughout the world.

In the second scheme, Ficeto allegedly conspired with the Heatheringtons to launder the proceeds received from CIC Global Capital through Canada and Switzerland.

The indictment also charges various unlawful monetary transactions associated with the money laundering conspiracies.

The indictment further alleges that Ficeto engaged in unlawful monetary transactions by sending nearly $10 million of illicit proceeds to an account the Cook Islands, and then lied to the Securities and Exchange Commission about the Cook Islands account. Ficeto additionally is charged with Investment Adviser Fraud in connection with a hedge fund called the Hunter Fund, in which the Absolute Funds invested and also was used to conceal investments by the Absolute Funds in the penny stocks and to manipulate the stock market.

The indictment alleges that as the scheme unraveled, Homm dumped tens of millions of dollars of his own shares in Absolute Capital and resigned from the firm in the middle of the night on September 18, 2007.

In March 2013, Homm was taken into custody in Italy after being arrested at the Uffizi Gallery in Florence. Homm was arrested pursuant to a provisional arrest warrant sought by federal prosecutors in Los Angeles after they filed a criminal complaint containing charges related to the alleged fraud scheme.  The United States sought Homm’s extradition to the United States and he was ordered extradited by the Italian Ministry of Justice, but Homm ultimately was released and is believed to have fled to Germany, where he remains a fugitive.

Colin Heatherington is believed to be in Canada, and Craig Heatherington is believed to be in Australia.

The indictment also contains a forfeiture allegation that would cause the defendants, if convicted of any of the securities or money laundering counts in the indictment, to forfeit to the United States “any and all property, real and personal, which constitutes or is derived from proceeds traceable to” any of those crimes.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.

Each charge of conspiracy to commit securities fraud and securities fraud carry a statutory maximum penalty of 25 years in federal prison. The money laundering charges each carry a maximum penalty of 10 years in federal prison. Each charge of investment adviser fraud, obstruction of justice, and false statements carry a maximum statutory penalty of five years in federal prison.

The case against Homm is the product of an ongoing investigation by the Federal Bureau of Investigation. The United States Securities and Exchange Commission and Financial and Regulatory Authority provided assistance to the FBI’s investigation.

The United States Attorney’s Office wishes to thank the Swiss Office of the Prosecutor General of the Confederation for its support and assistance.

U.S. Attorney Kenneth A. Polite announced that PERRY WILSON, a/k/a “Yummy,” age 24, and TYRONE BURTON, a/k/a “Man Man,” age 21, both of New Orleans, were sentenced today after having previously pled guilty to federal firearm and drug violations.  

U.S. District Judge Susie Morgan sentenced WILSON and BURTON to 108 months of imprisonment and 60 months of imprisonment, respectively.  Additionally, both defendants will serve four years of supervised release following imprisonment.

WILSON and BURTON were two of twelve defendants charged with conspiring to distribute cocaine base in the St. Roch neighborhood.  In addition, all twelve defendants were charged with conspiring to possess firearms in furtherance of their drug trafficking crimes.  Three defendants were also charged with conspiring to violate the Racketeer Influenced Corrupt Organization Act, as well as substantive acts of violence.

To date, nine defendants charged in this case have pled guilty to various charges.  Co-defendant ANDREALIE LEWIS was previously sentenced to 48 months of incarceration; ERVIN SPOONER was previously sentenced to 108 months of incarceration; TRE CLEMENTS was previously sentenced to 96 months; ROMALIS PARKER was previously sentenced to 70 months; TYONE BURTON was previously sentenced to 121 months of incarceration; and NYSON JONES was previously sentenced to 87 months of incarceration.  MORRIS SUMMERS, age 25, will be sentenced on December 16, 2015. Three defendants were convicted following trial and pending sentencing as well: DELOYD JONES, a/k/a “Puggy,” age 23; BYRON JONES, a/k/a/ “Big Baby,” age 25; and SIDNEY PATTERSON, a/k/a “Duda Man,” age 24.

According to court documents and evidence presented at trial, the defendants were members and associates of the “Ride or Die” gang, which they also referred to as “R.O.D.”  The Ride or Die gang was initially formed in or about 2007 and continued to exist through in or about 2013.  During the course of the federal investigation into the gang, agents learned that the defendants used a house, located at 1632 Mandeville Street, among other locations, as a base of operations to package, sell, and store narcotics, as well as store firearms.

U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter.  As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the

MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.  Assistant United States Attorneys Nolan D. Paige, Marquest Meeks and Special Assistant United States Attorney Brian Ebarb were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that NAPTALI ESCOBAR-ARTURO, age 37, from Honduras, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.

According to the Indictment, ESCOBAR-ARTURO was found by Border Patrol agents in the Eastern District of Louisiana after records showed he had been previously deported from the United States to Honduras on October 13, 2009, September 30, 2010, and June 9, 2014.

If convicted, ESCOBAR-ARTURO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.

U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of Border Patrol agents in investigating this matter.  Assistant U.S. Attorney Gregory M. Kennedy is in charge of the prosecution.

OAKLAND – Christian Palomino was sentenced today to five years of probation, including 6 months of community confinement at a halfway house, for aiming a laser at a California Highway Patrol (CHP) Helicopter, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.

In pleading guilty, Palomino, 19, of Oakland, admitted that on June 7, 2014, he knowingly aimed the beam of a laser pointer at a CHP Helicopter.  The lasing incident was captured by Palomino in a “selfie” video on his phone.  In the videos, Palomino can be heard yelling at the helicopter pilot, “Look at this laser!”  In addition, a woman can be heard in the background admonishing Palomino, “Don’t do that! You know you could blind . . . You[’re] going to go to jail if you do that. Don’t do that!”

At the time of the lasing incident, the CHP helicopter was assisting the Oakland Police Department in its efforts to locate a domestic violence suspect.  Palomino was indicted by a federal grand jury on August 28, 2014, for aiming a laser pointer at an aircraft, in violation of 18 U.S.C. § 39A. 

The sentence was handed down late yesterday by the Honorable Phyllis J. Hamilton, U.S. District Judge.  Judge Hamilton also imposed conditions of probation requiring Palomino to refrain from possessing a laser pointer and to perform 200 hours of community service, including educating people about the consequences of aiming laser pointers at aircrafts.  Palomino was ordered to self-surrender to the halfway house on January 4, 2016.

Assistant U.S. Attorney Brian C. Lewis prosecuted this case with the assistance of Janice Pagsanjan and Melissa Dorton.  This prosecution is the result of an investigation by the FBI and the CHP.

SACRAMENTO, Calif. — Today, United States District Judge Troy L. Nunley sentenced DuWayne LeDoux, 55, of Kodiak, Alaska, to seven years in prison for possession with intent to distribute methamphetamine and conspiracy to structure cash deposits, United States Attorney Benjamin B. Wagner announced.

According to court documents, LeDoux enlisted Sacramento resident Jennifer MacDougal, 45, to obtain and ship methamphetamine and crack cocaine to LeDoux at various addresses in Kodiak and under various names, so that LeDoux could sell the drugs. LeDoux paid for the drugs by depositing cash into a Wells Fargo account held by MacDougal in amounts designed to avoid bank reporting requirements.

Kodiak, Alaska is on Kodiak Island off the southern coast of Alaska. The island has a total of approximately 14,000 residents, with approximately 6,000 of them in Kodiak.

Co-defendant MacDougal pleaded guilty in November 2012, and was sentenced to five years in prison.

This case is the product of an investigation by the Drug Enforcement Administration and the Internal Revenue Service’s Financial Crimes Task Force. Assistant United States Attorneys Jason Hitt and Jean M. Hobler are prosecuting the case.

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner is pleased to be in attendance at a summit today hosted by the White House and the Department of Justice in Washington, D.C. called “A Cycle of Incarceration: Prison, Debt and Bail Practices.” This event was designed to bring public attention to the disproportionate impact that high fines and fees in the criminal justice system have on the poor. The White House Council of Economic Advisers also released an issue brief exploring the economic inefficiency of fines, fees and bail in particular situations as well as the disproportionate impact such sanctions can have on the poor.

U.S. Attorney Wagner stated, “The inability of many poor people to pay high fines, fees and bail for minor infractions can have disastrous consequences both for them and for society. For individuals, it can result in the loss of a driver's license, the loss of a job, increasing debt, incarceration and a criminal record. For society, it can lead to costly incarceration of many indigent persons for minor offenses. This conference is focused on identifying and reforming the complex web of practices within the criminal justice system that can trap the poor in a cycle of noncompliance and punishment, in order to create a fairer and more efficient justice system.”

Today’s event follows an event the Justice Department hosted on Wednesday that addressed the effect and fairness of fees and fines. The department convened judges, academics and practitioners to develop a research and policy agenda that will inform jurisdictions in their efforts to reform court practices.

Participants in the conference heard from judges, court administrators, academics, experts and others about the impact of excessive fines and fees in minor cases, and various efforts to reform justice systems, including in California. Three citizens described years of entanglement with the justice systems of Alabama, Michigan and Missouri, including suspended drivers licenses, lost jobs, incarceration and homelessness, all originating from unpaid fines for minor infractions.

Additional information about this issue can be found at http://go.usa.gov/cBahC.

SACRAMENTO, Calif. — Patricia Jane Albright, 64, of Nevada City, was sentenced by United States District Judge Troy L. Nunley to five years and five months in prison for conspiring to manufacture marijuana, manufacturing marijuana, and structuring currency transactions to evade federal reporting requirements, United States Attorney Benjamin B. Wagner announced.

On July 21, 2015, Albright pleaded guilty to the charges. Albright’s son and co‑conspirator, Jordan Wirtz, 29, previously pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime, for possessing a loaded Northern England 12 gauge shotgun and ammunition in his residence at the grow site. On February 26, 2015, Judge Nunley sentenced him to five years in prison.

According to court documents, between 2008 and September 2010, Albright and others manufactured marijuana on two properties she owned near Nevada City and Georgetown. Marijuana from Albright’s operation was regularly shipped out of state under fake names and addresses. At the time of her arrest on September 28, 2010, investigators found marijuana plants, cash, processed marijuana, and two firearms.

When Albright purchased the property near Georgetown in 2008 for growing marijuana, she structured 21 cash transactions at six different financial institutions over three days so she could avoid federal reporting requirements related to cash deposits.

This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation; the U.S. Drug Enforcement Administration; the California Department of Justice; the Grass Valley Police Department, and the sheriff’s offices of Nevada County, Placer County, and El Dorado County. Assistant United States Attorneys Michael M. Beckwith and Justin Lee prosecuted the case.

During the course of the investigation which involved the execution of 16 search warrants in three different counties, law enforcement seized over 4,100 marijuana plants, over 200 pounds of processed marijuana, and numerous firearms. A number of the defendants were armed at the time of their arrest, and several of the defendants had prior felony convictions for narcotics offenses. One defendant was arrested in a marijuana grow with a firearm while on pretrial release from an earlier arrest. He was facing charges for manufacturing marijuana in Southern California in 2009. Documents and items found at a number of the search locations show hundreds of thousands of dollars in financial transactions, and the interstate shipment of cash and narcotics.

FRESNO, Calif. — After a three–day trial, a federal jury found Lloyd George Kenney, 65, of San Jose, guilty today of armed bank robbery, using a firearm during a crime of violence, and of being felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

According to evidence presented at trial, on the morning of May 25, 2012, Kenney robbed the Tri Counties Bank located inside the Raley’s grocery store at Roselle and Floyd Avenues, in Modesto. Kenney was armed with a semi-automatic handgun and was heavily disguised, wearing a hockey helmet, facemask, long black coat and gloves. After taking $2,872 from tellers at gunpoint, he fled on a bicycle into a neighborhood and rode to where he had parked a van earlier.

Within minutes of being alerted to the robbery, a Modesto police officer saw Kenney, who was still wearing the helmet, enter his van and begin to drive away. Officer Parsons pulled the van over and Kenney was taken into custody. During a search of the van, officers found cash the taken from the Tri Counties Bank, Kenney’s bike, a hockey helmet, a mask, a loaded Glock handgun and a loaded Browning handgun. While searching Kenney, officers found a police scanner set to channels used by the Modesto Police Department.

Court records reflect that Kenney had federal felony convictions in 1984 and 1985, as well as a felony conviction in San Mateo Superior Court in 1974.

This case is the product of an investigation by the Modesto Police Department and the Federal Bureau of Investigation. Assistant United States Attorneys Michael Frye and Mia Giacomazzi are prosecuting the case.

Kenney is scheduled to be sentenced by United States District Judge Anthony W. Ishii on March 14, 2016. Kenney faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

HONOLULU –U.S. Attorney Florence T. Nakakuni announced today that the District of Hawaii collected over $7.8 million in criminal and civil actions in Fiscal Year 2015. Of this amount, approximately $7.7 million was collected in criminal actions. Additionally, her office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2.3 million in civil actions pursued jointly with these offices.

Attorney General Loretta E. Lynch previously announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.

"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said Attorney General Lynch. "The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work."

In January 2015, for example, the District of Hawaii recovered $1 million from Matson Terminals, Inc. as a result of convictions on two criminal charges relating to the unauthorized discharge of approximately 233,000 gallons of molasses into Honolulu Harbor in September 2013. The $1 million consisted of a $400,000 fine and $600,000 in restitution, the latter divided equally between the Waikiki Aquarium to support Coral Programs and Invasive Algae Clean-ups and Sustainable Coastlines Hawaii to inspire local communities to care for coastlines through beach clean-ups.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.