Western District of Oklahoma
Press releases recorded for this federal judicial district.
Oilman’s Fraud Leads to Six Years in PrisonRead the Press Release
OKLAHOMA CITY – KEVIN WIECK, of Cromwell, Oklahoma, has been sentenced to six years in prison for wire fraud and money laundering, announced First Assistant U.S. Attorney Robert J. Troester.
On July 3, 2018, a federal grand jury returned a fifteen-count superseding indictment against Wieck, who owned and operated Wieck Oil Company, LLC. According to the indictment, Wieck’s fraudulent scheme involved two types of oil wells: three "vertical" wells and a "horizontal" well. Wieck sold working interests in the vertical wells that supposedly guaranteed investors percentages of oil revenue. He allegedly kept the majority of the money for himself rather than paying investors. Wieck sold and attempted to sell percentages of his supposed ownership interest in the horizontal well, when he in fact never actually owned—and therefore had no right to sell—any portion of that well. The five money laundering counts involved transfers of criminal proceeds in amounts larger than $10,000 between bank accounts. According to the indictment, Wieck fled to Mexico around late August 2014. He has been in the custody of the U.S. Marshals Service since April 11, 2018.
Trial began on September 11, 2018. Eight investors from Tulsa, Edmond, Michigan, Illinois, and elsewhere testified about Wieck’s false promises and misrepresentations in connection with the vertical wells. These investors had invested cash, co-signed loans with Wieck, or provided in-kind services such as drilling, road work, and construction on the wells at reduced rates. Two investors testified that Wieck solicited investments in the horizontal well. A local energy company executive who later assumed control of the three vertical wells confirmed that Wieck had a right to participate in the horizontal well but had never paid to exercise that right. He further explained that Wieck filed oil and gas assignments late and failed to secure division orders to pay investors directly. Instead, he exercised a "quick pay" option, which funneled all revenue into his own bank accounts.
An FBI forensic accountant confirmed during trial that Wieck received more than $1.17 million in revenue and—even after production and operating costs—pocketed at least $600,000, in addition to the value of investors’ in-kind contributions. Wieck’s ex-wife corroborated that she and Wieck splurged on hotel stays, vacations, and large purchases when investments came in.
After three days of testimony, a jury deliberated for approximately two hours before returning guilty verdicts on all counts on September 14.
On May 6, 2019, Chief U.S. District Judge Joe Heaton sentenced Wieck to 72 months in prison, or six years, to be followed by three years of supervised release. The court also ordered him to pay $358,256.92 in restitution to eight individual investors throughout the United States, as well as $1,500 in special assessments.
This case is the result of an investigation by the FBI Oklahoma City Division. Assistant U.S. Attorneys Julia E. Barry and William E. Farrior prosecuted the case.
Reference is made to court filings for further information.
Chickasha Bank Robber ArrestedRead the Press Release
OKLAHOMA CITY – DWAYNE EDWARD RASMUSSEN, 65, has been charged with robbing the Community Bank of Oklahoma in Chickasha, announced First Assistant U.S. Attorney Robert J. Troester.
According to an affidavit in support of a criminal complaint, a man entered the Chickasha branch of Community Bank of Oklahoma at approximately 9:15 a.m. on April 30, 2019, and told a bank employee: "Give me all your 50’s and 100’s." After the employee complied, he allegedly said: "That’s not enough. Give me all your money." He is alleged to have taken virtually all the money from the three tellers’ drawers, for a total reported loss of $10,474. The affidavit states that while he did this, he brandished what appeared to be a pistol with a green grip. When he entered the bank, the affidavit explains, he placed a large sponge at the base of the inside door of the "mantrap" at the bank’s entrance so the door would not close.
Based on video surveillance from the bank and a church across the street, eyewitness accounts, and interviews of his acquaintances, FBI agents determined Rasmussen was the primary suspect. He was arrested on May 6 in downtown Oklahoma City.
Rasmussen made his initial appearance during the afternoon of May 6 before U.S. Magistrate Judge Gary M. Purcell. A preliminary and detention hearing will take place before Judge Purcell on May 9.
If found guilty of bank robbery, Rasmussen faces a maximum potential penalty of twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution.
This case is a result of an investigation by the FBI Oklahoma City Division and the Chickasha Police Department. Assistant U.S. Attorneys Wilson McGarry and Mary E. Walters are prosecuting the case.
The public is reminded that this charge is merely an allegation and that Rasmussen is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Man Pleads Guilty to Defrauding His EmployerRead the Press Release
OKLAHOMA CITY – JIMMY WAYNE SMITH, 37, of Oklahoma City, has pleaded guilty to using interstate wire communications to defraud his employer of hundreds of thousands of dollars, announced First Assistant U.S. Attorney Robert J. Troester.
According to federal charges filed on April 12, 2019, Smith was employed from 2012 until June 2017 as an operations coordinator at ACTS, a Chickasha company that provides cooling tower rental services. He allegedly created an entity called Axial Electric, purportedly based in California, and induced vendors that supplied equipment and parts to ACTS to purchase equipment from Axial and to invoice ACTS. Smith is alleged to have induced ACTS to pay the vendors, who in turn paid Axial Electric, which directly benefited Smith. According to the charges, Axial Electric was supposed to send the equipment directly to ACTS, but ACTS never received the equipment.
On April 29, Smith appeared before Chief U.S. District Judge Joe Heaton and pleaded guilty to a single count of wire fraud. In a plea agreement, he acknowledged that, based on current information, he will owe $228,192.32 in restitution to Aggreko Cooling Tower Services. The plea agreement provides that the total loss amount does not exceed $495,601.83, which would include losses suffered by the vendors.
Sentencing will take place in approximately 90 days and will take into account the full scope of Smith's fraud. He faces up to twenty years in prison and a fine of up to $250,000, as well as supervised release of up to three years and mandatory restitution.
These charges are the result of an investigation by the FBI Oklahoma City Division. The case is being prosecuted by Assistant U.S. Attorney William E. Farrior.
Reference is made to court filings for further information.
April 27 Is Prescription Drug Take Back DayRead the Press Release
OKLAHOMA CITY – The Drug Enforcement Administration will be accepting unwanted prescription drugs on Saturday, April 27, from 10:00 to 2:00 at locations throughout the United States. In western Oklahoma, citizens may drop off prescription drugs anonymously at these locations:
- Oklahoma County Sheriff’s Office, Midwest City Substation (8029 S.E. 29th Street)
- Moore Police Department, Sam’s Club (1705 South Broadway Avenue)
- Concho Agency
- Shawnee Police Department, The Clinic Pharmacy (3210 J.D. Kethley Road)
- Shawnee Police Department, Shawnee Senior Center (401 North Bell Avenue)
- Anadarko Agency (201 East Parker McKenzie Drive)
- Custer County Sheriff’s Office, Walmart Supercenter (1349 East Eagle Road, Weatherford)
- Comanche Nation Police Department (8527 Northwest Madische Road, Lawton)
- Pawnee Agency (123 White Eagle Drive, Ponca City)
To find collection sites nationwide, the public can go to www.DEATakeBack.com or call 800-882-9539.
With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft, and abuse by family members and visitors, including children and teens. In continuation of this effort, DEA and its national, tribal, and community partners will hold the 17th National Prescription Drug Take Back Day across the country on Saturday, April 27, from 10:00 a.m. to 2:00 p.m. local time.
Now in its ninth year, DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of expired, unused, and unwanted prescription medications through its Take Back Day events. This weekend, approximately 6,000 collection sites will be manned by nearly 5,000 partner law enforcement agencies. The service is free and anonymous. DEA cannot accept liquids, needles, or sharps.
"Addiction causes a tremendous amount of pain and suffering, not just for those addicted to drugs, but also for their families and friends," said Acting DEA Administrator Uttam Dhillon. "Helping people keep their loved ones safe by disposing of unwanted, unused, and expired prescription medications is just one of many ways that DEA is working to break the cycle of addiction and overdose deaths plaguing this country."
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
National Take Back Day has received enthusiastic public support since its inception in 2010. Last October, the public turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its local and tribal partners.
This release mentions private businesses merely to inform the public of take back locations; it is not intended as an endorsement of any particular business.
Nurse Practitioner Pays $60,000 to Settle Civil Penalty Claims Under the Controlled Substances ActRead the Press Release
Oklahoma City – Johnny T. Ng, CNP, of Oklahoma City, has agreed to pay $60,000 to settle civil penalty claims stemming from allegations he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced First Assistant U.S. Attorney Robert J. Troester.
Ng practices medicine primarily at the Careng Clinic in Oklahoma City. The United States alleges that his DEA Certificate of Registration expired on October 31, 2018, and he did not obtain a new certificate until November 5, 2018. More specifically, the United States alleges that, on November 1 and 2, 2018, Ng issued prescriptions for Schedule III and Schedule IV controlled substances without a valid DEA Certificate of Registration.
To resolve these allegations, Ng agreed to pay $60,000 to the United States.
In reaching this settlement, Ng did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Agency, Office of Diversion Investigation. Assistant U.S. Attorneys Amanda R. Johnson and Ronald R. Gallegos prosecuted the case.
Carjacking Conviction Results in Forty Years in PrisonRead the Press Release
OKLAHOMA CITY – RUFUS LOU NELSON, JR., 35, has been sentenced to forty years in prison for carjacking and other crimes, announced First Assistant U.S. Attorney Robert J. Troester.
In September 2018, a federal jury heard evidence that on July 5, 2016, Nelson forced a woman at gunpoint to drive from Edmond to the south side of Oklahoma City. While she was driving on Interstate 240 between May Avenue and Pennsylvania Avenue, Nelson shot her in the head. She survived but is now permanently blind. After she got out of the car and onto the median, two Good Samaritans stopped to provide medical assistance and called 911. Oklahoma Highway Patrol officers found Nelson approximately one hour later skulking under the overpass at I-240 and Pennsylvania Avenue.
The jury convicted Nelson of being a felon in possession of ammunition, carjacking, kidnapping, and using and discharging a firearm during a crime of violence.
Today, U.S. District Judge Robin J. Cauthron sentenced Nelson to 480 months—the equivalent of forty years—in the custody of the Bureau of Prisons.
Nelson has been in the custody of the U.S. Marshals Service since his arrest in July 2016.
This case is the result of an investigation by the Oklahoma City Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Oklahoma Highway Patrol, with assistance from the Oklahoma County District Attorney’s Office and the Oklahoma State Bureau of Investigation. Prosecuted by Assistant U.S. Attorneys Mark R. Stoneman and Brandon Hale, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to court filings for further information.
Lawton Woman Pleads Guilty to Fraud Involving More Than $7 MillionRead the Press Release
OKLAHOMA CITY – Lori Christine Woodson, 62, of Lawton, pleaded guilty today to one count of bank fraud and one count of wire fraud, announced First Assistant U.S. Attorney Robert J. Troester.
According to an information filed on January 28, 2019, Woodson induced Fort Sill National Bank to loan her and another person $1,013,902 by making false representations to the bank. In particular, Woodson overstated the value of her interest in assets, including a condominium in Snowmass, Colorado, and a closely held real estate company. She additionally understated her liabilities to other banks by approximately $3 million. Also, according to the information, Woodson defrauded two acquaintances by misappropriating purported investments in Snowmass condominiums. The information seeks more than $7.5 million in criminal forfeiture.
At a guilty plea hearing today, Woodson admitted committing bank fraud and defrauding two acquaintances. At sentencing, she faces up to 30 years in prison, as well as a maximum $1,000,000 fine and a term of supervised release of up to five years for bank fraud. She also faces up to 20 years in prison, a maximum $250,000 fine, and a term of supervised release of up to three years for wire fraud. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Department of Treasury’s Office of Inspector General and the FBI Oklahoma City Division, with the assistance of the Comanche County District Attorney’s Office and the Oklahoma State Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Farrior.
Reference is made to court records for further information.
Woman Charged with Felony Murder of Child at Kickapoo CasinoRead the Press Release
OKLAHOMA CITY – ALANNA JEAN ORR, 50, of Oklahoma City, has been charged with felony murder of a child in Indian Country, announced First Assistant U.S. Attorney Robert J. Troester.
According to an affidavit in support of a search warrant signed in Oklahoma County District Court, Orr was caring for her five-year-old grandson on June 21, 2018, when she went to the Kickapoo Casino in Harrah. The affidavit explains that, according to surveillance video, Orr arrived at the casino at 1:23 p.m. and left at 7:28 p.m. It is alleged that during this time, her grandson remained in the car. The high temperature in Harrah that day was allegedly ninety degrees.
Approximately fifteen minutes after she left the casino, according to the affidavit, Orr called 911 and reported her grandson had choked and was not breathing. The affidavit states Harrah police officers met Orr at the Harrah Police Department and attempted to resuscitate the child but found that rigor mortis had already begun.
On April 17, 2019, a federal grand jury returned an indictment that charges Orr with second degree felony murder by child neglect in Indian Country. In particular, it alleges Orr, an Indian, caused the death of a child by willfully failing to provide adequate shelter and supervision while she was responsible for the child’s health, safety, and welfare. Orr was arrested earlier today and appeared for arraignment this afternoon before U.S. Magistrate Judge Suzanne Mitchell.
If found guilty, Orr faces a maximum potential penalty of life in prison and a fine of $250,000.
This case is a result of an investigation by the Harrah Police Department, the Kickapoo Tribal Police Department, the Oklahoma District 23 Drug Task Force, and the FBI Oklahoma City Division. Assistant U.S. Attorneys Mark R. Stoneman and Mary E. Walters are prosecuting the case.
The public is reminded that this charge is merely an allegation and that Orr is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Trial Ends in Conviction of Enid Man on Methamphetamine and Firearm ChargesRead the Press Release
OKLAHOMA CITY – JERRY JAMES KENDALL RITCHIE, 32, of Enid, has been convicted after a two-day jury trial of possessing methamphetamine with intent to distribute and two counts of illegal possession of a firearm, announced First Assistant U.S. Attorney Robert J. Troester.
An indictment filed on November 13, 2018, charged Ritchie with possession of 13.9 grams of methamphetamine with intent to distribute, possession of a firearm after a felony conviction, and possession of a firearm in furtherance of drug trafficking. Beginning on April 9, 2019, a jury heard evidence that Enid Police Department officers stopped a Buick SUV driven by Ritchie on October 19, 2018, at approximately 7:06 p.m. for a traffic violation. When officers apprehended Ritchie after he fled on foot, he refused to place his hands in the air and was pulled to the ground and handcuffed while yelling and cursing. Officers ultimately discovered a loaded semi-automatic pistol in the SUV, along with bags with a white substance that tested positive for methamphetamine and two digital scales. Ritchie is alleged to be a member of the Universal Aryan Brotherhood.
Jurors returned unanimous guilty verdicts on all three counts earlier today.
U.S. District Judge Scott L. Palk will sentence Ritchie in approximately 90 days. For the conviction on the drug count, Ritchie could be imprisoned up to twenty years, be fined up to $1,000,000, and be subject to three years of supervised release. He could be imprisoned for ten years and face up to three years of supervised release for being a felon in possession of a firearm. Additionally, possession of a firearm in furtherance of drug trafficking carries a mandatory term of five years of imprisonment beyond any other sentence and three years of supervised release. If, however, the court determines Ritchie qualifies as an armed career criminal, he would be subject to a mandatory prison term of fifteen years and a maximum of life.
The charges against Ritchie are the result of an investigation by the Enid Police Department, the U.S. Department of Homeland Security—Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the District Attorney’s Office for Garfield County. Prosecuted by Assistant U.S. Attorneys Nicholas J. Patterson and Wilson D. McGarry, this case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to public filings for further information.
Justice Department Awards over $1.1 Million to Ponca Tribe for Domestic Violence Victim ServicesRead the Press Release
OKLAHOMA CITY – The Office for Victims of Crime, part of the Department of Justice’s Office of Justice Programs, has awarded the Ponca Tribe of Indians of Oklahoma $1,105,966 to expand services to victims of domestic violence, sexual assault, dating violence, and stalking, announced First Assistant U.S. Attorney Robert J. Troester. Funding will support training, equipment for Sexual Assault Nurse Examiner exams, two contracted SANE nurses, a contract for legal aid services, and emergency assistance for victims.
This grant to the Ponca Tribe is part of more than $9.4 million in grants announced by the Department of Justice today to support crime victims in Native American communities in eight states: Alaska, California, Maine, Michigan, New Mexico, New York, Oklahoma, and Washington. The group of 16 awards is the fourth in a series of grants being made by the Office for Victims of Crime to American Indian and Alaska Native communities. The Department of Justice has now awarded more than $26 million of nearly $100 million to support tribal victim service programs.
The awards—46 in total so far—will fund critical crime victim services, such as counseling, transitional housing, emergency services, and transportation. They are supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments. The fund includes zero tax dollars.
"American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities," said Principal Deputy Assistant Attorney General Matt M. Dummermuth of the Office of Justice Programs ("OJP"). "These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence."
According to OJP’s Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crime at rates far greater than the general population.
"The U.S. Attorney’s Office is proud to assist state, local, and tribal officials in reducing domestic violence in Oklahoma," said Mr. Troester. "These federal funds for the Ponca Tribe further our goal of making Oklahomans safe from domestic abusers."
Nearly 170 tribes are expected to receive funding this spring to help their communities support crime victims over the next three years. In addition to the Ponca Tribe, the following tribes are receiving grant awards today for victim services:
- The Aleutian Pribilof Islands Association, Inc. (Alaska)
- The Iipay Nation of Santa Ysabel (California)
- The Nooksack Indian Tribe (Washington)
- The Nottawaseppi Huron Band of the Potawatomi (Michigan)
- The Orutsararmiut Native Council (Alaska)
- The Peoria Tribe of Indians of Oklahoma (Oklahoma)
- The Pleasant Point Passamaquoddy Tribe (Maine)
- The Port Gamble S’Klallam Tribe (Washington)
- The Pueblo of Isleta (New Mexico)
- The Pueblo of Nambe (New Mexico)
- The Pueblo of Pojoaque (New Mexico)
- The Sitka Tribe of Alaska (Alaska)
- The St. Regis Mohawk Tribe (New York)
- Sault Ste. Marie Tribe of Chippewa Indians (Michigan)
- The Southcentral Foundation (Alaska)
"American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said Office for Victims of Crime Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence."
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants, and resources to improve the nation’s capacity to prevent and reduce crime, assist victims, and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
Alva Man Arrested for Interstate Murder PlotRead the Press Release
OKLAHOMA CITY – VERNON WAYNE BROCK, 69, of Alva, has been charged by complaint with hiring someone to commit murder, announced First Assistant U.S. Attorney Robert J. Troester.
According to an affidavit in support of an arrest warrant filed in federal court today, Brock hired a Kansas resident to commit a murder in Oklahoma City. The individual from Kansas is alleged to have contacted the FBI and cooperated in the investigation.
The affidavit states that Brock and the individual from Kansas are partners in Oklahoma vape shops and that Brock was upset with a former vape shop employee who refused to continue a sexual relationship with him. Brock allegedly wanted the individual from Kansas to arrange the murder of the former employee’s boyfriend in Oklahoma City in exchange for $5,000.
According to the affidavit, Brock identified the boyfriend by sending a picture to the individual from Kansas and confirming "that’s the guy we want dead." The affidavit includes several alleged quotes by Brock from recorded conversations between Brock and the individual from Kansas, including:
- "Are they going to thump her around a little bit? And do him? Cause that’s what I wanted."
- "I’d rather do him, thump her and I mean thump her hard. And tell her if she says one word to the cops about anything there will be someone come back to get her . . . ."
- "The main thing is for them to throw the scent off of everything. . . . What they want to say to him is, . . . you didn’t pay us for our drugs or something like that, and you owe us a million dollars, then pop, before he has anything to say either way."
FBI agents arrested Brock on the afternoon of April 3, with the assistance of the Woods County Sheriff’s Office, after Brock delivered a $5,000 check to the individual from Kansas at a café in Harper, Kansas. Brock appeared this afternoon for an initial appearance before United States Magistrate Judge Shon T. Erwin.
If found guilty of murder-for-hire, Brock faces a potential penalty of ten years in prison, a fine of $250,000, and three years of supervised release.
This case is a result of an investigation by the FBI–Oklahoma City Field Office. Prosecuted by Assistant U.S. Attorney Ashley Altshuler, the case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
The public is reminded that these charges are merely allegations and that Brock is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
911 Call Leads to Indictment on Explosive and Gun ChargesRead the Press Release
OKLAHOMA CITY – PHILIP JAMES HEATH, 51, of Lawton, has been charged in a two-count indictment with being a felon in possession of both explosives and firearms, announced First Assistant U.S. Attorney Robert J. Troester.
On February 4, 2019, Heath was charged by complaint with possession of firearms after a felony conviction. According to an affidavit executed by a special agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, on the morning of January 30, 2019, officers of the Lawton Police Department responded to a 911 call regarding a domestic disturbance at an apartment. The woman who made the call allegedly told the dispatcher Heath had pointed a gun at her and threatened her. The complaint explains that after the responding officers detained Heath, they saw the buttstock of a rifle in plain view, sticking out from between a mattress and box springs. They are alleged ultimately to have discovered three pistols and two rifles. Because of items discovered in the apartment, numerous FBI personnel responded immediately to assess and mitigate any threat and to ensure public safety.
After several weeks in Comanche County custody on state charges, Heath was transferred to federal custody in early March. On March 11, U.S. Magistrate Judge Gary Purcell ordered him held in the custody of the U.S. Marshals Service pending trial.
Today a federal grand jury returned a two-count indictment that alleges not only illegal possession of firearms, but also illegal possession of explosives, which under the relevant criminal statute includes detonating cord. The indictment seeks forfeiture of five firearms, 1,404 rounds of various kinds of ammunition, and two lengths of detonating cord.
If found guilty of either count, Heath faces a potential penalty of ten years in prison, a fine of $250,000, and three years of supervised release.
This case is a result of an investigation by the Lawton Police Department, the Oklahoma Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the FBI. Prosecuted by Assistant U.S. Attorneys Brandon Hale and Travis D. Smith, the case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime.
The public is reminded that these charges are merely allegations and that Heath is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
"Joe Exotic" Convicted of Murder-For-Hire and Violating Both the Lacey Act and Endangered Species ActRead the Press Release
OKLAHOMA CITY – A federal jury has found JOSEPH MALDONADO-PASSAGE, also known as Joseph Allen Maldonado, Joseph Allen Schreibvogel, and "Joe Exotic," 56, formerly of Wynnewood, Oklahoma, guilty on two counts of hiring someone to murder a woman in Florida, eight counts of violating the Lacey Act for falsifying wildlife records, and nine counts of violating the Endangered Species Act, announced First Assistant U.S. Attorney Robert J. Troester.
"The self-described Tiger King was not above the law," said Mr. Troester. "Rather, the jury only needed a few hours of deliberation before finding him guilty of engaging in a murder-for-hire plot to kill a rival and violating federal laws intended to protect wildlife when he killed multiple tigers, sold tiger cubs, and falsified wildlife records. We are thankful for the jury’s careful attention, deliberation, and verdict in this case."
"We would like to thank the U.S Attorney’s Office for prosecuting this case and holding individuals accountable for these crimes," said Phillip Land, Special Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement for the Southwest Region. "We appreciate our state and federal law enforcement partners working together in this investigation."
On September 5, 2018, a federal grand jury returned an indictment that accused Maldonado-Passage of hiring an unnamed person in November 2017 to murder "Jane Doe" in Florida and also hiring a person who turned out to be an undercover FBI agent to commit that murder. A superseding indictment handed down on November 7, 2018, further alleged Maldonado-Passage falsified forms involving the sale of wildlife in interstate commerce, killed five tigers in October 2017 to make room for cage space for other big cats, and sold and offered to sell tiger cubs in interstate commerce. Because tigers are an endangered species, these alleged killings and sales violated the Endangered Species Act.
During a trial that began on March 25, a jury heard evidence that Maldonado-Passage gave Allen Glover $3,000 to travel from Oklahoma to South Carolina and then to Florida to murder Carole Baskin, with a promise to pay thousands more after the deed. Baskin, a critic of Maldonado-Passage’s animal park, owns a tiger refuge in Florida and had secured a million-dollar judgment against Maldonado-Passage’s park.
The evidence further showed that beginning in July 2016, Maldonado-Passage repeatedly sought someone to murder Baskin in exchange for money, which led to his meeting with an undercover FBI agent on December 8, 2017. The jury heard a recording of his meeting with the agent to discuss details of the planned murder.
In addition to the murder-for-hire counts, the trial included evidence of violations of the Lacey Act, which makes it a crime to falsify records of wildlife transactions in interstate commerce. According to these counts, Maldonado-Passage designated on delivery forms and Certificates of Veterinary Inspection that tigers, lions, and a baby lemur were being donated to the recipient or transported for exhibition only, when he knew they were being sold in interstate commerce.
Finally, the jury heard evidence that Maldonado-Passage personally shot and killed five tigers in October 2017, without a veterinarian present and in violation of the Endangered Species Act.
After only a few hours of deliberation, the jury returned guilty verdicts on both murder-for-hire counts, eight Lacey Act counts, and nine Endangered Species Act counts.
At sentencing, Maldonado-Passage could be imprisoned on each murder-for-hire count up to ten years. He would also be subject to up to three years of supervised release and a fine of up to $250,000 per count. Each Lacey Act violation could carry a prison term of five years, a fine of $250,000, and three years of supervised release. Each Endangered Species Act count could result in one year in prison, a fine of $100,000, and one year of supervised release.
Maldonado-Passage will remain in the custody of the U.S. Marshals Service pending sentencing, which will take place in approximately ninety days.
This case is the result of an investigation by the U.S. Fish and Wildlife Service Office of Law Enforcement, the Federal Bureau of Investigation, and the Oklahoma Department of Wildlife Conservation, with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Amanda Green and Charles W. Brown are prosecuting the case.
Reference is made to court filings for further information.
Indictment Unsealed Charging Mangum Pharmacist with over $1 Million in Health Care FraudRead the Press Release
OKLAHOMA CITY – A federal indictment has been unsealed charging JEFFREY SCOTT TERRY, 37, of Mangum, Oklahoma, with forty counts of using his pharmacy to defraud Medicare and Medicaid, announced First Assistant U.S. Attorney Robert J. Troester and Oklahoma Attorney General Mike Hunter.
"Protecting the health care system from fraud is critical to the stability and viability of the Medicare and Medicaid programs," said Mr. Troester. "We are proud to have an active partnership with Attorney General Mike Hunter and his office where we work collaboratively together to fight health care fraud."
"The ability to combine state and federal resources is one of our best assets when fighting fraud and corruption," Attorney General Hunter said. "I appreciate Mr. Troester and his team for continuing to collaborate with us in cracking down on healthcare fraud in the state and for helping us hold perpetrators accountable for these types of crimes. We must do everything we can to protect the Medicaid system, which serves Oklahomans in need."
According to an indictment filed on March 5 and unsealed on March 29, Terry was a licensed pharmacist who began operating Bratton Drug at 109 S. Oklahoma in Mangum in August 2015. Both the Oklahoma Health Care Authority—which administers Medicaid under the name SoonerCare—and Medicare reimbursed Bratton Drug for prescriptions and pharmaceutical products it dispensed.
The indictment alleges that from August 2015 to September 2018, Terry submitted false claims to SoonerCare and Medicare Part D for drugs that had not actually been prescribed or ever dispensed to patients. These false claims are alleged to have caused Terry to receive $338,481.81 from SoonerCare and $753,334.13 through the Medicare Part D program, for a total of $1,091,815.94 in fraudulent proceeds.
Terry appeared for his arraignment on March 29 before United States Magistrate Judge Bernard M. Jones. He was released pending trial, which is scheduled to start on May 14, 2019.
If convicted, Terry faces up to ten years in prison on each count, in addition to a fine of up to $250,000. He would also be subject to up to three years of supervised release after imprisonment and would be required to pay restitution to Oklahoma and the federal government for losses sustained by SoonerCare and Medicare. Finally, the indictment seeks forfeiture of proceeds of these crimes, including real property at 321 S. Robinson in Mangum, a tract of land in Greer County, and a 2016 Dodge Challenger.
To maximize recovery of fraud proceeds, the United States also moved for and obtained a temporary restraining order that prevents Terry from transferring assets and spending money out of as many as eight financial accounts he controls. According to court filings unsealed today, Terry commingled fraud proceeds in personal and business accounts and has been rapidly selling, transferring, dissipating, and concealing assets since the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit executed a search warrant in October 2018. Part of that concealment allegedly involves transferring Bratton Drug’s inventory and business to Granite Drug in Granite, Oklahoma, which he also controls.
These charges are the result of an investigation by the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services—Office of Inspector General, including its Office of Audit Services. Assistant Oklahoma Attorney General Lory Dewey, who also serves as a Special Assistant U.S. Attorney, and Assistant U.S. Attorney Amanda Green are prosecuting the case. Assistant U.S. Attorneys Amanda Johnson and Ron Gallegos of the U.S. Attorney’s Office’s Civil Division are handling the request for a temporary restraining order.
The public is reminded that these charges are merely allegations and that Terry is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Edmond Man Pleads Guilty to Embezzling over $750,000 and Tax FraudRead the Press Release
OKLAHOMA CITY – ODIS AUBREY KING, 74, of Edmond, has pleaded guilty to embezzling over $750,000 from his employer and filing a false federal income tax return, announced Robert J. Troester of the U.S. Attorney’s Office.
According to federal charges filed on February 15, 2019, King worked as an accountant from 2002 until August 2017 for a company in Oklahoma City that sold pipe handling tools for drilling rigs. He was responsible for preparing checks drawn on the company’s bank account and recording those payments in the company’s check register. From July 2009 to July 2017, King forged the owner’s signature on over 200 company checks without the company’s permission or knowledge. He made the checks payable to himself and disguised the payments in the check register as legitimate business expenses. In total, King deposited approximately $755,000 into his personal bank account using forged company checks. He also did not report the embezzled funds as income on his federal income tax returns.
On March 28, King pleaded guilty to a single count of making and possessing a forged check written in October 2015, as well as a single count of filing a materially false federal income tax return covering calendar year 2014.
Sentencing will take into account the full scope of King’s embezzlement and tax fraud. He faces a sentence of up to ten years in prison and a fine of up to $250,000 on the embezzlement count. He also faces a sentence of up to three years in prison and a fine of up to $100,000 for filing a false federal income tax return. Sentencing will take place in approximately 90 days.
These charges are the result of an investigation by the FBI and the Internal Revenue Service–Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Jessica L. Perry.
Reference is made to court filings for further information.
Metro Man Sentenced to 84 Months in Federal Prison for Robbery of Midwest City BusinessRead the Press Release
OKLAHOMA CITY – MARKEZ LOUISE THOMPSON, 21, of Oklahoma City, has been sentenced to 84 months in federal prison for robbery affecting interstate commerce, announced Robert J. Troester of the U.S. Attorney’s Office.
On May 18, 2017, a grand jury indicted Thompson on two counts: robbery affecting interstate commerce and the use of a firearm during the commission of that offense. On July 31, 2017, he pleaded guilty to the robbery count. According to court filings, Thompson and an accomplice robbed an Ace Cash Express in Midwest City on the morning of April 19, 2017. They confronted an employee with firearms and stole approximately $31,000 from the safe. When police pursued Thompson on foot, he took shelter along the exterior of a local daycare. He surrendered after a two-hour standoff with police. Officers found $32,411 in his backpack, along with a MoneyGram card stolen from Ace Cash Express.
A year before the Midwest City robbery, Thompson was indicted for a similar crime in the Western District of Texas. On January 10, 2018, that case was transferred to the Western District of Oklahoma, where Thompson pleaded guilty.
On March 26, 2019, U.S. District Judge Robin J. Cauthron sentenced Thompson to 84 months in federal prison based on both criminal cases. After release from prison, Thompson will serve three years of supervised release. He was also ordered to pay $24,000 in restitution.
This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Midwest City Police Department. Prosecuted by Assistant U.S. Attorney Ashley Altshuler, the case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime.
Reference is made to public filings for further information.
Three Indicted for Conspiracy to Distribute More Than 28 Gallons of Liquid MethamphetamineRead the Press Release
OKLAHOMA CITY – A federal grand jury has indicted EDUARDO VILLA-ALVAREZ, 22, JOSE MANUEL SOTO-OCHOA, 22, and KRISTNADEVY MENDOZA-ZAMBRANO, 22, with conspiring to distribute methamphetamine, announced First Assistant U.S. Attorney Robert J. Troester.
On March 19, 2019, a federal grand jury returned a four-count indictment against Villa-Alvarez, Soto-Ochoa, and Mendoza-Zambrano. Count One charges all three defendants with conspiracy to possess with intent to distribute and to distribute methamphetamine from November 2018 through March 7, 2019. Count Two charges Villa-Alvarez and Soto-Ochoa with possession of methamphetamine with intent to distribute on March 7, 2019, in Oklahoma City. Count Three charges Mendoza-Zambrano with possession with intent to distribute on March 7, 2019, in Garvin County, Oklahoma. Count Four charges Villa-Alvarez with possession of a firearm in furtherance of a drug-trafficking crime related to the charge in Count Two.
If convicted on Counts One, Two, or Three, each defendant could be imprisoned for life and fined up to $10,000,000. A conviction on any of these counts would also result in a mandatory minimum sentence of ten years in prison. If convicted on Count Four, Villa-Alvarez could be imprisoned for life and fined up to $250,000. A conviction on Count Four would also result in a mandatory minimum sentence of five years in prison, to be served consecutively to any other term of imprisonment imposed in this case.
This indictment follows a criminal complaint filed in federal court on March 8, 2019. According to an affidavit filed in federal court in support of that complaint, law enforcement stopped a maroon Ford Escape with Oklahoma plates on March 7 south of Oklahoma City, between Purcell and Pauls Valley. The vehicle had been the subject of a judicially-approved tracking device and was traveling from the area of Mesquite, Texas. Defendant Mendoza-Zambrano is alleged to have been driving the vehicle. According to the complaint, a search yielded approximately 77 liters (20 gallons) of liquid methamphetamine.
That same day, agents and officers with the DEA’s North Texas High Intensity Drug Trafficking Area program ("HIDTA") executed a search warrant at a residence in south Oklahoma City. According to the complaint, Villa-Alvarez and Soto-Ochoa were the only occupants of the residence. Law enforcement is alleged to have observed Soto-Ochoa placing in the back of a black Ford Escape a box with baggies containing a white substance. They also are alleged to have observed Villa-Alvarez and Soto-Ochoa using a broom and dust pan to sweep up a white substance. According to the complaint, when investigators approached Villa-Alvarez, he attempted to flee and tossed a firearm near the back yard. Investigators seized from the residence and the vehicle more than 25 kilograms (approximately 55 pounds) of a white crystal substance that tested positive for methamphetamine and more than 30 liters (approximately eight gallons) of suspected liquid methamphetamine. The complaint states investigators believe Mendoza-Zambrano was working with Villa-Alvarez and Soto-Ochoa.
These charges are the result of an investigation by the Drug Enforcement Administration, including the North Texas HIDTA, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma Highway Patrol, the El Reno Police Department, and the District 21 Drug Task Force. Assistant U.S. Attorney Matt Anderson is prosecuting the case.
The public is reminded that these charges are merely allegations and that each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Oklahoma City Man Pleads Guilty for False Representation to the Department of Labor to Employ Mexican WorkersRead the Press Release
OKLAHOMA CITY – FELIPE GUTIERREZ, 48, of Oklahoma City, pleaded guilty yesterday to making a false statement and representation to the Department of Labor ("DOL") to employ Mexican workers, announced First Assistant United States Attorney Robert J. Troester.
According to an Information filed February 12, 2019, Mr. Gutierrez, who owns and operates Felipe’s Lawn Care—a local lawn care company in Oklahoma City—falsely represented to the DOL that he had not sought or received any payment from his employees in connection with obtaining certification for their employment from the DOL.
At his guilty plea hearing yesterday, Mr. Gutierrez admitted that he submitted an H-2B Application for Temporary Employment Certification to the DOL in order to obtain permission to hire workers from Mexico. Though the Application required Mr. Gutierrez to certify that he had not sought or received any payment of any kind from these prospective workers, Mr. Gutierrez had, in fact, demanded and received payment from some of them. According to a Plea Agreement filed in the case, Mr. Gutierrez received a total of between $40,0000 and $95,000 from these workers.
At a sentencing hearing set for June 20, 2019, Mr. Gutierrez faces up to five years in prison, as well as a maximum $250,000 fine, along with a term of supervised release of up to three years. He also must pay restitution to the victims of his conduct in an amount to be determined by the court at sentencing.
This case is the result of an investigation by the FBI and is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Reference is made to court records for further information.
Metro Man Sentenced to Thirteen Years in Federal Prison After Shooting at Midwest City Police Executing a Search WarrantRead the Press Release
OKLAHOMA CITY – ANTHONY DEWAYNE HILL, 52, of Midwest City, Oklahoma, was sentenced yesterday to serve thirteen years (156 months) in federal prison for being a felon in possession of a firearm and for discharging a firearm during a drug trafficking crime, announced First Assistant United States Attorney Robert J. Troester.
According to a complaint filed on June 1, 2018, officers with Midwest City Police Department served a "no-knock" search warrant on Hill’s residence, on May 24, 2018, for evidence related to possession and distribution of controlled substances. During execution of the warrant, when officers broke out a bedroom window to enter the home, Hill retrieved a 9mm Ruger pistol from between the mattresses. According to the complaint, Hill pointed the gun toward the window and fired a round. The bullet passed near two Midwest City Police Officers, but did not strike or injure them. According to the complaint, Midwest City officers found cocaine and electronic scales in the bedroom closet, and Hill admitted to the officers that he had sold narcotics for approximately two years. Hill was arrested on June 1st for being a felon in possession of a firearm, and he has remained in federal custody since his arrest.
On June 20, 2018, a federal grand jury returned a three-count indictment charging Hill with (1) possession with intent to distribute cocaine base, (2) being a felon in possession of a firearm, and (3) using, carrying, and discharging a firearm during and in relation to a drug trafficking crime. According to the indictment, on May 24, 2018, Hill possessed with intent to distribute approximately 20.5 grams of a mixture or substance containing cocaine base. The indictment further alleges that on May 24, 2018, Hill was a felon in possession of a firearm and that he discharged a firearm during the drug trafficking crime involving the 20.5 grams of cocaine base.
On October 2, 2018, Hill pleaded guilty to being a felon in possession of a firearm, and to discharging a firearm during a drug trafficking crime. As part of a plea agreement, the United States agreed to dismiss the drug-distribution charge at sentencing.
Yesterday, Judge David L. Russell sentenced Hill to thirteen years in federal prison for the offenses. At sentencing, Judge Russell noted that it was Hill’s fourth conviction for being a felon in possession of a firearm. After serving his prison sentence, Hill will serve three years of federal supervised release.
This case is the result of an investigation by the Midwest City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant U.S. Attorney Nicholas J. Patterson, and is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
Reference is made to court filings for further information.
Oklahoma City Home Builder Sentenced to Prison and Ordered to Pay $941,475.60Read the Press Release
OKLAHOMA CITY – GREGORY L. COBBS, 60, of Oklahoma City, has been sentenced to 24 months in federal prison for committing wire fraud, announced Robert J. Troester of the U.S. Attorney’s Office. He has also been ordered to pay $941,475.60 in restitution to ten victims.
On August 20, 2018, Cobbs pleaded guilty to a one-count information that charged wire fraud. According to the information, Cobbs was a custom home builder doing business in Oklahoma as GL Cobbs and Company, LLC. The information explains that Cobbs promised an Oklahoma couple living in The Netherlands that he would assist them in purchasing a lot and custom home in 2014. He is alleged to have caused the couple to sign a purchase agreement and wire him $100,000 but then to have used $95,000 of that money for purposes other than delivering the promised home. He also allegedly induced the couple to send him more money, for a total of over $200,000. According to the information, shortly before the couple was to receive their home in 2016, they learned that Cobbs had not purchased the lot as promised and had paid only $15,000 toward the construction cost.
Today U.S. District Judge David L. Russell sentenced Cobbs to 24 months in prison. After release from prison, Cobbs will serve three years on supervised release.
Judge Russell considered not only the victims described in the information, but similarly-situated victims whom Cobbs defrauded. The court concluded Cobbs’s fraudulent scheme caused losses of over $940,000 to ten separate victims. At sentencing, two victims not referenced in the information described the manner in which Cobbs defrauded them and the effect of his crimes.
This case is the result of an investigation by the FBI Oklahoma City Division and the Yukon Police Department. It was prosecuted by Assistant U.S. Attorneys Kerry A. Kelly and William E. Farrior.
Reference is made to public filings for further information.
Man Pleads Guilty to Fatal Stabbing in Indian CountryRead the Press Release
OKLAHOMA CITY – SAGE ATHEAKEE GOMEZ, 23, a member of the Ponca Tribe of Oklahoma, has pleaded guilty to involuntary manslaughter, announced Robert J. Troester of the U.S. Attorney’s Office.
According to court documents, on September 15, 2018, Gomez stabbed B.L.W., a member of the Tonkawa Tribe, at a rural residence on Indian land near Ponca City. The victim died of his wounds on October 2.
Gomez was charged by complaint on September 21 and made his initial appearance in federal court in Oklahoma City on September 25. He has remained in federal custody since that time.
On October 16, 2018, a federal grand jury charged Gomez with three federal crimes: voluntary manslaughter "upon sudden quarrel and heat of passion" in Indian Country, Assault with a Dangerous Weapon in Indian Country, and Assault Resulting in Serious Bodily Injury in Indian Country.
On March 8, 2019, Gomez pleaded guilty to a superseding information that charged him with involuntary manslaughter. In particular, the new charge alleged that when he stabbed the victim during an altercation, Gomez committed a reckless act "without due caution and circumspection, which might produce death."
The maximum penalty that could be imposed as a result of this guilty plea is eight years in prison and a fine of $250,000. Gomez could also face up to three years of supervised release and will be required to pay restitution to the victim’s estate. Sentencing will take place in approximately ninety days.
This case is result of an investigation by the Bureau of Indian Affairs. It is being prosecuted by Assistant U.S. Attorneys Arvo Q. Mikkanen and Matthew Anderson.
Reference is made to public filings for further information.
Former Logan County Deputy Sheriff Pleads Guilty to Overtime FraudRead the Press Release
OKLAHOMA CITY – Former Logan County Deputy Sheriff DOYLE ALLEN BAKER, 31, of Weatherford, Texas, has pleaded guilty to theft from a federal transportation grant, announced Robert J. Troester of the U.S. Attorney’s Office.
On November 7, 2018, a federal grand jury indicted Baker for stealing more than $5,000 from federal grant funds administered by the Oklahoma Highway Safety Office ("OHSO"), part of the Oklahoma Department of Transportation. The National Highway Traffic Safety Administration, part of the U.S. Department of Transportation, provided these funds to OHSO, which passed them on to the Logan County Sheriff’s Office.
According to the indictment, as a Deputy Sheriff, Baker knew these federal funds could be used only to pay for employees working outside regular duty hours. From July to September of 2016, he allegedly submitted fraudulent timesheets that represented he worked overtime hours he did not in fact work. The indictment states he hid the fraudulent nature of more than $5,000 in overtime hours by submitting fake citations and warnings.
On March 7, 2019, Baker pleaded guilty to the indictment before U.S. District Judge Stephen P. Friot.
The maximum penalty that could be imposed as a result of this guilty plea is ten years in prison and a fine of $250,000. Baker could also face up to three years of supervised release and will be required to pay restitution. Sentencing will take place in approximately ninety days.
This case is result of an investigation by the U.S. Department of Transportation—Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Rozia McKinney-Foster.
Reference is made to public filings for further information.
Three Charged in Conspiracy to Distribute More Than 28 Gallons of Liquid MethamphetamineRead the Press Release
OKLAHOMA CITY – EDUARDO VILLA-ALVAREZ, 22, JOSE MANUEL SOTO-OCHOA, 22, and KRISTNADEVY MENDOZA-ZAMBRANO, 22, have been charged with conspiring to distribute 28 gallons of liquid methamphetamine and 55 pounds of crystal methamphetamine, announced Robert J. Troester of the U.S. Attorney’s Office.
According to a March 8, 2019, affidavit filed in federal court in support of a criminal complaint, law enforcement stopped a maroon Ford Escape with Oklahoma plates on March 7 south of Oklahoma City, between Purcell and Pauls Valley. The vehicle had been the subject of a judicially-approved tracking device and was traveling from the area of Mesquite, Texas. Defendant Mendoza-Zambrano is alleged to have been driving the vehicle. According to the complaint, a search yielded approximately 77 liters (20 gallons) of liquid methamphetamine.
That same day, agents and officers with the DEA’s North Texas High Intensity Drug Trafficking Area program ("HIDTA") executed a search warrant at a residence in south Oklahoma City. According to the complaint, Villa-Alvarez and Soto-Ochoa were the only occupants of the residence. Law enforcement is alleged to have observed Soto-Ochoa placing in the back of a black Ford Escape a box with baggies containing a white substance. They also are alleged to have observed Villa-Alvarez and Soto-Ochoa using a broom and dust pan to sweep up a white substance. According to the complaint, when investigators approached Villa-Alvarez, he attempted to flee and tossed a firearm near the back yard. Investigators seized from the residence and the vehicle more than 25 kilograms (approximately 55 pounds) of a white crystal substance that tested positive for methamphetamine and more than 30 liters (approximately eight gallons) of suspected liquid methamphetamine. The complaint states investigators believe Mendoza-Zambrano was working with Villa-Alvarez and Soto-Ochoa.
The complaint charges each defendant with conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, as well as possession with intent to distribute more than 500 grams of methamphetamine. If convicted of either of these crimes, each defendant could be imprisoned for life and fined up to $10,000,000. A conviction on either count would also result in a mandatory minimum sentence of ten years in prison.
These charges are the result of an investigation by the Drug Enforcement Administration, including the North Texas HIDTA, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma Highway Patrol, the El Reno Police Department, and the District 21 Drug Task Force. Assistant U.S. Attorney Matt Anderson is prosecuting the case.
The public is reminded that these charges are merely allegations and that each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Fraudulent "Credit Profile Number" Results in Two Years in PrisonRead the Press Release
OKLAHOMA CITY – DEMARR FANNELL GREER, 39, of Edmond, Oklahoma, has been sentenced to 24 months in prison for fraudulent use of a Social Security Number, announced Robert J. Troester of the U.S. Attorney’s Office.
On April 17, 2018, a federal grand jury charged Greer with using interstate wire communications to defraud credit card issuers, automobile dealers, and other lenders between February and August 2016. According to the indictment, Greer obtained the Social Security Number of a person born in 2004 and used it as a "credit profile number"—also known as "credit privacy number" or a "credit protection number"—to establish what appeared to be good credit with consumer reporting agencies, such as TransUnion and Experian. After establishing good credit, he allegedly used the number to apply for a Discover Card and for a lease on a 2016 Dodge crew cab pickup. The indictment alleges he made little to no payments on his obligations and thus caused losses to businesses that had extended credit to him.
Greer pleaded guilty on October 20, 2018.
On March 7, 2019, U.S. District Judge David L. Russell sentenced Greer to 24 months in prison, to be followed by three years of supervised release. The sentence includes $22,734.08 in restitution: $16,528.95 to Motors Insurance Corporation, $5,000.00 to David Stanley Dodge, and $1,205.13 to Discovery Financial Services.
This case is the result of an investigation by the Social Security Administration—Office of Inspector General, the FBI, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Timothy W. Ogilvie prosecuted the case.
Reference is made to public filings for further information.
Department of Justice Highlights Western District of Oklahoma for Its Focus on Firearms Offenses Involving Domestic ViolenceRead the Press Release
OKLAHOMA CITY – In remarks today in Washington, DC, Katharine Sullivan, the Acting Director of the Justice Department’s Office of Violence Against Women, singled out the U.S. Attorney’s Office for the Western District of Oklahoma for its success in prosecuting firearms cases involving domestic violence. The office’s initiative, "Operation 922," is the local implementation of Project Safe Neighborhoods, a Department-wide program to prevent and prosecute violent crime. For the full text of Acting Director Sullivan’s remarks at the FBI’s celebration of National Women’s History Month, see: https://www.justice.gov/ovw/blog/womens-history-month-reflections-individuals-who-influence-us-and-doj-accomplishments.
As part of Operation 922, federal prosecutors in the Western District of Oklahoma focus on enforcing federal laws to keep firearms out of the hands of those Congress has precluded from possessing firearms. Operation 922 specifically focuses on domestic violence abusers who are subject to a victim protection order or restraining order, or who have been previously convicted in any court of a misdemeanor crime of domestic violence. Section 922 of Title 18 of the United States Code prohibits those specific offenders from possessing firearms or ammunition. The U.S. Attorney’s Office also targets domestic violence offenders through Section 922’s prohibition on possessing a firearm after any felony conviction. In addition, the office prosecutes violent crime cases in Indian Country, including domestic abuse acts involving strangulation and cases in which a firearm or other weapon is used.
"You cannot have safe neighborhoods without first having safe homes," said Bob Troester, First Assistant U.S. Attorney. "This effort to protect victims of domestic violence relies upon our committed partnership with District Attorney David Prater and his office, the Oklahoma City Police Department and Chief Bill Citty, and Palomar, Oklahoma City’s Family Justice Center. It is also the result of the dedicated work of the women and men of the U.S. Attorney’s Office to protect victims from domestic abusers."
Locally, since Operation 922 was initiated last year, over 50 domestic-violence-related cases have been charged by Western District prosecutors. These cases include all prosecutions for illegal possession of firearms related to domestic violence. Nationally, according to Justice Department data, the number of defendants charged in the specific category of possessing a firearm after a misdemeanor conviction (18 U.S.C. § 922(g)(9)) has grown by nearly 80%, from 110 in Fiscal Year ("FY") 2016 to 197 in FY2018. In the same period, convictions increased more than 160% from 55 in FY2016 to 148 in FY2018.
For further information about Operation 922, please contact the U.S. Attorney’s Office at (405) 553-8999.
Arkansas Man Must Pay $25,000 After Conviction for Interstate Transportation of Stolen PropertyRead the Press Release
OKLAHOMA CITY – BRANDON BYRGE, 29, of Texarkana, Arkansas, has been sentenced to two years of probation and ordered to pay $25,000 for interstate transportation of stolen property, announced Robert J. Troester of the U.S. Attorney’s Office.
On June 5, 2018, a federal grand jury charged Byrge with transporting two drill bits from Oklahoma to Arkansas when he knew they had been stolen, converted, and taken by fraud. According to the indictment, the two bits were worth approximately $39,000.
Byrge pleaded guilty on August 6, 2018.
On February 26, 2019, U.S. District Judge Scott L. Palk sentenced Byrge to two years of probation and ordered him to pay $20,000 in restitution and a fine of $5,000. On March 5, the court amended its judgment by ordering that of the $20,000 in restitution, $18,000 go to Smith International, Inc., of Sugar Land, Texas, and $2,000 go to Bayless Sales & Services of Weatherford, Oklahoma. These amounts reflect the costs to the companies of temporarily not having access to the drill bits, which ultimately were recovered.
This case is the result of an investigation by the FBI Major Theft Task Force, which consists of the FBI, the Oklahoma State Bureau of Investigation, and the Oklahoma Department of Agriculture. Assistant U.S. Attorney Edward J. Kumiega prosecuted the case.
Reference is made to public filings for further information.
Federal Jury Convicts Man Who Attempted to Bomb Downtown Oklahoma City BankRead the Press Release
OKLAHOMA CITY — A federal jury has convicted Jerry Drake Varnell, 24, of Sayre, Oklahoma, for attempting to use a weapon of mass destruction at BancFirst in downtown Oklahoma City, announced Robert J. Troester of the U.S. Attorney’s Office.
Jurors began hearing testimony on February 12 and entertained closing arguments this morning. After a half-day of deliberation, they returned unanimous verdicts of guilty on one count of attempting to use an explosive device to damage a building in interstate commerce and one count of attempting to use a weapon of mass destruction against property used in interstate commerce.
The FBI arrested Varnell at approximately 1:00 a.m. on August 12, 2017, after he attempted to detonate what he believed to be an explosives-laden van he had parked in an alley next to BancFirst, at 101 North Broadway. The arrest was the culmination of a long-term domestic terrorism investigation involving an undercover operation, during which Varnell had been monitored closely for months as the alleged bomb plot developed. The explosives were inert, and the public was not in danger. FBI had received information that Varnell initially wanted to blow up the Federal Reserve Building in Washington, D.C., with a device similar to the 1995 Oklahoma City bombing because he was upset with the government.
On October 17, 2017, a federal grand jury charged Varnell with attempting to use an explosive device to damage and destroy BancFirst’s corporate offices. After a psychological evaluation, the court entered an order on November 21, 2017, that found him competent to stand trial. The grand jury returned a superseding indictment on April 17, 2018, that added one count of attempting to use a weapon of mass destruction.
At trial, the jury heard testimony from an informant who made recordings of his conversations with Varnell. It also heard from the undercover FBI agent who helped Varnell build what he thought was a bomb, an FBI bomb technician, and others. It listened to numerous recordings in which Varnell planned the attack and reviewed numerous written electronic communications that corroborated his intent. Furthermore, it heard the testimony of a defense expert concerning Varnell’s mental health. Through its verdicts, the jury concluded any mental health problems did not prevent Varnell from forming the intent required for conviction. It also determined the FBI did not entrap him.
Varnell will remain in custody until his sentencing, which will take place in approximately ninety days. He faces a maximum sentence of life for attempting to use a weapon of mass destruction and a maximum sentence of twenty years for attempting to use an explosive device. The explosive-device count carries a statutory mandatory minimum sentence of five years. He could also be fined $250,000 on each count and subject to supervised release for the rest of his life.
This investigation was conducted by the FBI Joint Terrorism Task Force, including members from the Oklahoma City FBI; Homeland Security Investigations, part of the U.S. Department of Homeland Security; the Oklahoma City Police Department; the Edmond Police Department; the Oklahoma Highway Patrol; the Oklahoma Bureau of Narcotics and Dangerous Drugs; and the Oklahoma State Bureau of Investigation. The FBI worked in conjunction with BancFirst during the investigation. Oklahoma District Attorney Angela Marsee, of District 2, also provided assistance. The case is being prosecuted by Assistant U.S. Attorneys Matt Dillon and Mark R. Stoneman, with assistance from the Justice Department’s Counterterrorism Section.
Reference is made to court records for further information.
U.S. Attorney’s Office Collects over $10,000,000 in Fiscal Year 2018Read the Press Release
OKLAHOMA CITY – The Western District of Oklahoma collected $10,624,311 in the fiscal year ending Sept. 30, 2018, announced Robert J. Troester of the U.S. Attorney’s Office.
The office secured $7,994,284.09 through collection efforts in criminal and civil cases. Of this amount, $3,062,214.10 was collected in criminal actions and $4,932,069.99 was collected in civil actions. The office also deposited $2,630,027 into the Asset Forfeiture Fund as a result of criminal, civil, and administrative forfeiture proceedings. Total collections, including forfeiture, exceeded the cost of operating the office by more than two million dollars.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in Fiscal Year 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for U.S. Attorneys’ Offices across the nation.
"In addition to keeping communities safe, the U.S. Attorney’s Office prioritizes recovering money for victims of crime and for taxpayers," said Mr. Troester. "I am proud that my team uses the tools Congress has provided to seek to achieve financial justice in criminal and civil litigation involving the United States."
"The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work," said James A. Crowell, IV, Director of the Executive Office for U.S. Attorneys.
Among criminal cases, the U.S. Attorney’s Office collected $100,000 from Christopher Bateman Slater, a Guymon physician who pleaded guilty to distributing the opiate codeine without a medical purpose. The court imposed a $100,000 fine on Dr. Slater, in addition to an eight-month prison term. Among civil cases, the office collected $670,000 from Southwest Orthopaedic Specialists, PLLC, and physicians who owned that company. In July 2018, Southwest Orthopaedic Specialists settled allegations that it submitted false claims to Medicare, Medicaid, and Tricare, which are health-care programs funded in whole or in part by the federal government.
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 United States 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 collected to federal and state victim compensation and victim assistance programs.
In the Department of Justice as a whole, 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, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
U.S. Marshals Arrest Kay County Murder Suspect Who Fled to MexicoRead the Press Release
Please see the following press release from the U.S. Marshals Service concerning the arrest of a Kay County, Oklahoma, murder suspect who fled to Mexico.
NEWS RELEASE
FOR IMMEDIATE RELEASE
Feb 7, 2019
USMS 19-08
Contact:
Supervisory Deputy Cal Stephens (405) 231-3765
Western District of Oklahoma
USMS Office of Public Affairs (703) 740-1699
US MARSHALS 15 MOST WANTED MURDER SUSPECT WANTED FOR
STABBING EX-WIFE, FORMER COP 41 TIMES IN FRONT OF CHILDREN ARRESTED
Tip generated from John Walsh’s television show leads to fugitive’s capture
WASHINGTON – The manhunt for 15 Most Wanted fugitive Luis Octavio Frias ended last night. A tip generated from the television show “In Pursuit with John Walsh” led authorities to Jalisco, Mexico, where Frias was located and arrested at approximately 7:30 p.m. EST Wednesday, Feb. 6.
Frias, 34, allegedly stabbed his ex-wife, Janett Reyna, 41 times in front of her young children in August 2013. Reyna, a former police officer with the Blackwell (Oklahoma) Police Department, had filed a protection order against Frias just two days prior to her death. The Kay County (Oklahoma) Sheriff’s Office issued a warrant for his arrest and sought the assistance of the U.S. Marshals to find him.
“The arrest of Luis Octavio Frias allows a wounded community to start healing and stands as a testament to the crucial role the public plays in helping us locate and arrest dangerous fugitives,” said U.S. Marshals Service Acting Deputy Director David Anderson. “We especially thank John Walsh and his team for their commitment to law enforcement and for featuring Frias on his show.”
The fugitive investigation for Frias gained momentum when an anonymous tipster contacted the U.S. Marshals after watching the fugitive’s profile on the television show. The information provided allowed investigators to develop substantial information about his possible whereabouts in Mexico. The U.S. Marshals’ Mexico Foreign Field Office worked closely with Mexican authorities, who were able to narrow the location to a suburb of the city of Guadalajara in Jalisco.
“Countless hours of collaborative investigative work and sheer determination have finally brought Frias to justice,” said U.S. Marshal Johnny Lee Kuhlman of the Western District of Oklahoma. “With the help of our federal, state, local and international partners, Frias’ arrest sends a strong, clear message to anyone attempting to flee the country to avoid prosecution that justice has no boundaries.”
When Frias arrived back on U.S. soil Thursday, U.S. Marshals used the same handcuffs issued to Reyna by the Blackwell Police Department to take the fugitive into custody.
“In so many ways, those handcuffs represented poetic justice not only for the victim, but for her children, her brothers and sisters in blue, and her community,” said Kuhlman.
Frias is currently in U.S. Marshals custody in Dallas awaiting extradition back to Oklahoma.
Former Teemco President Sentenced to Prison for Tax FraudRead the Press Release
OKLAHOMA CITY – GREGORY DAMIEN LORSON, of Panama City Beach, Florida, was sentenced today to five years in prison for not paying federal payroll taxes withheld from wages of TEEMCO, LLC, employees, announced Robert J. Troester of the U.S. Attorney’s Office.
On April 3, 2018, Lorson was charged in a one-count Information with willful failure to collect and pay federal payroll taxes to the IRS. According to the Information, Lorson was President and Chief Executive Officer of TEEMCO, LLC, from 2010 until the business closed in mid-2015. TEEMCO was an environmental sales and consulting company in Oklahoma City. From 2010 to 2015, TEEMCO deducted and withheld federal income taxes, Social Security taxes, and Medicare taxes (commonly called "payroll taxes") from wages of TEEMCO employees. Under federal law, an employer must deduct and withhold payroll taxes from employees’ wages, and then pay those withheld taxes to the IRS at the end of each quarter. According to the Information, instead of forwarding the withheld payroll taxes to the IRS, Lorson used that money to fund TEEMCO’s extensive advertising campaign and to pay other creditors and expenses.
Lorson pleaded guilty on June 15, 2018. He admitted that TEEMCO withheld federal payroll taxes from employees’ wages and that he knew TEEMCO had a duty to pay those withheld taxes to the IRS. Lorson admitted that he directed TEEMCO employees not to forward the withheld payroll taxes to the IRS. He also admitted that he failed to file with the IRS quarterly federal tax returns for TEEMCO from 2010 to 2015. As part of his plea agreement, he agreed to pay $3,003,220.47 in restitution to the IRS for withheld payroll taxes and other federal taxes that TEEMCO never paid to the IRS for company employees. Lorson also agreed to pay an additional $542,162.53 in restitution to the Oklahoma Tax Commission for TEEMCO employees’ state taxes that were withheld but never paid to state tax authorities.
Today Chief U.S. District Judge Joe Heaton sentenced Lorson to five years in federal prison, followed by three years of supervised release. The court chose a sentence above the advisory sentencing guideline range and at the statutory maximum based on the circumstances of the offense and other factors. Lorson will also be required to pay restitution in the amount of $3,545,383.00.
This case was the result of an investigation conducted by IRS–Criminal Investigations and was prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Reference is made to public filings for further information.
Federal Jury Convicts in Multi-Million-Dollar Oil and Gas FraudRead the Press Release
OKLAHOMA CITY – A jury has convicted JUSTIN LANE FOUST, 42, of Sulphur, Oklahoma, of wire fraud, money laundering, and aggravated identity theft in connection with fraud against Chesapeake Energy, announced Robert J. Troester of the U.S. Attorney’s Office.
According to an 11-count indictment filed on January 16, 2018, Foust was employed by Chesapeake Operating, Inc., a wholly owned subsidiary of Chesapeake Energy Corporation, from April 2002 until September 2011. In July 2011, Foust formed Platinum Express, LLC, which became an approved vendor for Chesapeake Operating in October of that year. The indictment alleged that from October 2011 until July 2014, Chesapeake Operating contracted with Platinum Express primarily to transport waste water to disposal facilities in western Oklahoma.
Trial began on January 28, 2019. Over the course of six trial days, the evidence showed Foust defrauded Chesapeake Operating by causing Platinum Express to submit false invoices for services it did not perform. In particular, he created fraudulent work tickets for steam cleaning, dirt berm work, plating tanks, hauling rock, repairing fence, supplying sand separators, and other services. He generated many fraudulent invoices for amounts just under $5,000, which he knew from his prior work with Chesapeake Operating required a lower level of approval for processing and payment. The trial evidence established he forged the signature and employee identification number of certain Chesapeake Operating employees to ensure Chesapeake Operating’s accounting department would process the invoices. He further caused these work tickets and invoices to be submitted through interstate wire communications to Oildex, the Denver, Colorado, company that processed the claims on behalf of Chesapeake Operating.
Alleging eight counts of wire fraud, the indictment stated Foust was responsible for over 1,100 fraudulent invoices, which generated over $4.3 million in Chesapeake Operating payments to which Platinum Express was not entitled. Foust was also charged with two counts of aggravated identity theft based on his alleged use of the names and employee identification numbers of other people without their consent. Finally, he was charged with one count of laundering money by transferring $43,857.09 to pay for Platinum Express payroll, after at least $10,000 of that transfer had been derived from wire fraud.
Today the jury returned guilty verdicts on six counts of wire fraud, one count of aggravated identity theft, and one count of money laundering. It was unable to reach a unanimous verdict on the two remaining counts of wire fraud and the other count of aggravated identity theft.
Sentencing will take place in approximately ninety days. Foust could be imprisoned for a maximum of twenty years on each of the wire-fraud convictions, to be followed by three years of supervised release. Aggravated identity theft carries a mandatory minimum sentence of two years in prison, in addition to any other sentence of imprisonment. The money-laundering conviction could result in a sentence of ten years in prison, followed by three years of supervised release. Foust could also be fined up to $250,000 on each count and would be subject to mandatory restitution and to a forfeiture money judgment in the amount of the proceeds of the fraud, which the indictment alleges to be $4,345,619.00.
This case is the result of an investigation by the Oklahoma Economic and Identity Crimes Task Force, which is composed of the United States Secret Service, the FBI, IRS–Criminal Investigations, Homeland Security Investigations, the U.S. Postal Inspection Service, the Oklahoma Highway Patrol, the Oklahoma City Police Department, the Edmond Police Department, the Moore Police Department, and the Norman Police Department. The case agents hail from FBI and IRS–Criminal Investigations. Assistant U.S. Attorneys Jessica L. Perry, Amanda Green, and Tom Snyder are prosecuting the case.
Reference is made to court filings for further information.
Former Oklahoma State Senator Ordered to Pay over $125,000 to Child VictimRead the Press Release
OKLAHOMA CITY – RALPH ALLEN LEE SHORTEY has been ordered to pay $125,850.00 to the victim he was convicted of obtaining for commercial sex, announced Robert J. Troester of the U.S. Attorney’s Office.
Shortey pleaded guilty on November 30, 2017, to one count of child sex trafficking. In particular, he admitted he solicited a minor identified as "John Doe" to engage in a commercial sex act on March 8 and 9, 2017. Shortey was serving as an Oklahoma State Senator at the time of the offense. He resigned in March 2017, shortly after his conduct led the Cleveland County District Attorney to charge him with state crimes.
A federal grand jury returned a four-count indictment against Shortey on September 5, 2017. That indictment included three counts relating to child pornography: emailing videos of a prepubescent girl and young boys in October 2013 and producing child pornography by persuading John Doe to send him a sexually explicit image. As a result of a plea agreement, the United States dismissed these counts.
On September 17, 2018, U.S. District Judge Timothy D. DeGiusti sentenced Shortey to prison for 180 months, or fifteen years, in addition to ten years of supervised release.
On January 31, 2019, the court conducted an evidentiary hearing to determine how much Shortey must pay his victim. Dr. Robyn Cowperthwaite of the University of Oklahoma testified for the United States regarding her assessment of the victim and her recommended course of treatment. Based on this testimony, Judge DeGiusti ordered Shortey to pay his victim $125,850.00, the cost of the recommended treatment.
This restitution award flows from the Department of Justice’s efforts to combat human trafficking, including a focus on securing resources and restitution for victims. In 2018, the Executive Office for U.S. Attorneys ("EOUSA"), the Civil Rights Division’s Human Trafficking Prosecution Unit, and the Child Exploitation and Obscenity Section published a quick reference guide entitled “Restitution for Human Trafficking Victims,” which assists federal prosecutors in obtaining restitution for human trafficking victims. EOUSA also developed a "Toolkit" that provides information on practices, procedures, models, and forms employed in various U.S. Attorney’s Offices that are helpful in obtaining restitution for victims.
This case was the result of an investigation by the FBI and the Moore Police Department, with assistance from the Cleveland County District Attorney’s Office and the Oklahoma State Bureau of Investigation. Assistant U.S. Attorneys K. McKenzie Anderson and Brandon Hale prosecuted the case.
Reference is made to court filings for further information.
Caddo County Man Who Shot Woman in Indian Country Sentenced to Nine Years in PrisonRead the Press Release
OKLAHOMA CITY – MARTIN ROCHA, 56, a resident of Caddo County, has been sentenced to nine years in prison for being a felon in possession of a firearm, announced Robert J. Troester of the U.S. Attorney’s Office. The sentence took into account Rocha’s having used the firearm to shoot a woman in Indian Country.
According to an affidavit in support of a criminal complaint filed in federal court on May 19, 2018, officers with the Binger Police Department and the Caddo County Sheriff’s Office requested assistance from the Bureau of Indian Affairs Law Enforcement after a 911 call reported Rocha’s shooting of a woman with a Winchester 30-30 rifle. According to the affidavit, Rocha was estranged from his wife and was not allowed to live with her. The investigation determined that Rocha drove up to the residence, got out of his car, and fired a single shot that caused life-threatening injuries to the victim, a neighbor. The woman survived but suffered permanent injuries. Rocha has been in custody since May 18, 2018, the day of the shooting.
On June 20, 2018, a federal grand jury returned a five-count indictment against Rocha. He was charged with assault with intent to commit murder, assault with a dangerous weapon, assault resulting in serious bodily injury, being a felon in possession of a firearm, and using a firearm during a crime of violence. The assault charges were federal crimes because the indictment alleges the victim is an Indian and the shooting took place in Indian Country. More specifically, the affidavit identified the victim as an Indian and also stated that Rocha is not an Indian.
On September 6, 2018, Rocha pleaded guilty to being a felon in possession of a firearm, which carries a maximum punishment of ten years in prison. In a plea agreement, he acknowledged he used the firearm to commit another crime. He also stipulated to advisory sentencing guideline calculations that took the circumstances of the incident and the victim’s injuries into account.
Chief U.S. District Judge Joe Heaton sentenced Rocha yesterday to 108 months, or nine years, in federal prison. He will be on supervised release for three years after his prison term. The court ordered him to pay $67,747.71 in restitution for medical expenses and announced that further restitution proceedings will take place on April 29, 2019.
These charges are the result of an investigation by the Bureau of Indian Affairs, with assistance from the Binger Police Department and the Caddo County Sheriff’s Office. Prosecuted by Assistant U.S. Attorney Arvo Mikkanen, the case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
Reference is made to public filings for further information.
Oklahoma City Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
OKLAHOMA CITY – RICHARD SPILLANE, 30, of Oklahoma City, was sentenced today to 30 years in prison for producing child pornography, announced Robert J. Troester of the U.S. Attorney’s Office.
According to a complaint filed on July 16, 2018, law enforcement officers determined that an internet user with an email address linked to Mr. Spillane was engaging in conversations and sharing photographs depicting children engaged in sexually explicit conduct on a network often used to receive and distribute child pornography. Mr. Spillane was arrested on July 17, 2018, and has remained in federal custody since his arrest.
On August 7, 2018, a federal grand jury returned a six-count indictment charging Mr. Spillane with two counts of producing child pornography and four counts of knowingly receiving child pornography. According to the indictment, between October 15, 2017, and July 17, 2018, Mr. Spillane photographed two minors, "John Doe #1" and "John Doe #2," engaging in sexually explicit conduct. The indictment also alleged he received images via the internet on four specific days in June and July of 2018 that showed children engaging in sexually explicit conduct.
On October 31, 2018, Mr. Spillane pleaded guilty to Count 1 of the indictment and admitted he produced photographs of "John Doe #1" engaging in sexually explicit conduct and distributed them via the internet.
At a hearing this morning, U.S. District Judge Robin J. Cauthron sentenced Mr. Spillane to 30 years in prison—the maximum permitted by law. The judge underscored the seriousness of the offense and the need to deter others from engaging in similar conduct. The sentence includes five years of supervised release following Mr. Spillane’s imprisonment. On April 30, the court will determine the amount of restitution Mr. Spillane will be required to pay to his victims.
This case is the result of an investigation by the FBI and was prosecuted by Assistant U.S. Attorney Julia E. Barry. It is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court records for further information.
Firearm Possession While Under Victim Protective Order Leads to Three Years in PrisonRead the Press Release
OKLAHOMA CITY – JEREMY SHAWN PARKE, 46, of Moore, Oklahoma, was sentenced today to three years in prison for possession of a firearm while under a victim protective order, announced Robert J. Troester of the U.S. Attorney’s Office.
According to court records, on the afternoon of May 5, 2018, the Moore Police Department received a report of shots fired in a residential neighborhood. Officers contacted a resident who said she heard loud bangs from a nearby home. Police went to Parke’s home, where they had responded to previous incidents, and discovered a Ruger Model AR 556 rifle and numerous spent shell casings on Parke’s back patio and in the yard. There were apparent bullet holes in his backyard fence. Officers eventually discovered a shotgun and additional rounds of ammunition inside Parke’s home.
On May 6, 2018, a resident in an adjacent neighborhood reported to the Moore Police Department that she discovered a bullet near her infant son’s crib. An officer responded to her home, where she explained that on the afternoon of May 5, she heard a loud noise. When she checked on her sleeping baby, she noticed his crib railing was broken. The next day, while cleaning behind the crib, the mother noticed a bullet hole that aligned with the piece of broken crib railing. On the floor, she discovered the bullet. Law enforcement determined that it was the same caliber that could be fired from the AR 556 rifle they had seized from Parke the day before.
Parke’s possession of firearms and ammunition was illegal because he was subject to a Cleveland County protective order that prohibited him from harassing, stalking, or threatening a former intimate partner. It also advised him that he was prohibited from possessing firearms and ammunition. According to records obtained from a local gun dealership, Parke purchased the AR 556 on March 21, 2018. When he completed the paperwork required to purchase the rifle, Parke checked "No" in answer to the question: "Are you subject to a court order restraining you from harassing, stalking, or threatening your . . . intimate partner?"
Parke was charged by criminal complaint on May 21, 2018, and arrested shortly thereafter. On June 28, 2018, he pleaded guilty to possession of a firearm by a prohibited person. Today U.S. District Timothy D. DeGiusti sentenced Parke to three years’ imprisonment and three years of supervised release. The court also ordered him to pay $1,885 in restitution for damage the bullet caused.
This case is the result of an investigation by the Moore Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prosecuted by Assistant U.S. Attorneys Brandon Hale and Jacquelyn Hutzell, it is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
Reference is made to court filings for further information.
Assistant U.S. Attorney K. McKenzie Anderson Receives Human Trafficking AwardRead the Press Release
OKLAHOMA CITY – The Oklahoma Human Trafficking Task Force has named Assistant U.S. Attorney K. McKenzie Anderson as the recipient of its Award for Outstanding Contribution to the Fight Against Human Trafficking in Oklahoma, announced Robert J. Troester of the U.S. Attorney’s Office. AUSA Anderson received the award on January 24, 2019, at the task force’s candlelight vigil at the Oklahoma Bar Center as part of Human Trafficking Awareness Month.
Ms. Anderson became an Assistant U.S. Attorney in 2014, after private practice with major law firms in New York City and Oklahoma City. Her portfolio includes a number of cases against those involved in child sex trafficking. She has also handled a variety of other criminal cases, including complex white collar matters and gun prosecutions. A graduate of the University of Chicago School of Law, she serves as the office’s Human Trafficking Coordinator and has taught courses at the Department of Justice’s National Advocacy Center on human trafficking prosecutions.
For more on federal efforts to prevent and prosecute human trafficking, visit https://www.justice.gov/humantrafficking.
Man Subject to Victim Protective Orders Charged with Federal Gun CrimesRead the Press Release
OKLAHOMA CITY – CHAD WAYNE KASPEREIT, 34, of Oklahoma City, has been charged with one count of lying on a federal form to purchase firearms, as well as two counts of possessing a firearm while subject to a victim protective order, announced Robert J. Troester of the U.S. Attorney’s Office. An indictment returned by a federal grand jury on December 4, 2018, was unsealed today after Kaspereit’s arrest.
According to Count 1 of the indictment, Kaspereit made a materially false statement on Bureau of Alcohol, Tobacco, Firearms & Explosives Form 4473 when he falsely represented that he was not subject to a victim protective order. He allegedly knew when he completed the form that he was subject to such an order in Stephens County, Oklahoma. He is alleged to have made the false statement on December 7, 2017, at Academy Store 246 in Yukon, Oklahoma, before he purchased a Taurus Judge .45 caliber revolver and a Taurus PT 738 .380 pistol. Form 4473, entitled Firearms Transaction Record, is required of individuals purchasing firearms from federally licensed firearms dealers.
Counts 2 and 3 charge Kaspereit with the felony of possessing a firearm while subject to a victim protective order. Count 2 alleges he possessed the Taurus Judge .45 caliber revolver and the Taurus PT 738 .380 pistol between December 7, 2017, and February 26, 2018, when he was subject to the Stephens County protective order. Count 3 alleges he possessed the Taurus PT 738 .380 caliber pistol on October 16, 2018, when he was subject to a separate victim protective order in Cleveland County, Oklahoma.
If convicted, Kaspereit faces on each count up to ten years in prison, in addition to a fine of up to $250,000. He would also be subject to up to three years of supervised release after imprisonment.
These charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from the Cleveland County District Attorney’s Office. Prosecuted by Assistant U.S. Attorney K. McKenzie Anderson, this case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
The public is reminded that these charges are merely allegations and that Kaspereit is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
"Operation 922" Results in Four Federal Indictments Related to Domestic ViolenceRead the Press Release
OKLAHOMA CITY — In the first two weeks of December, federal grand juries returned four separate and unrelated indictments in cases involving domestic violence, announced Robert J. Troester of the U.S. Attorney’s Office. These prosecutions involving domestic violence are part of Project Safe Neighborhoods (PSN), the Department of Justice’s national violent crime reduction initiative aimed at making our communities safer and more secure. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and re-entry programs for lasting reductions in crime.
"Operation 922" is the local implementation of the national PSN initiative in the Western District of Oklahoma. As part of "Operation 922," federal prosecutors focus on enforcing federal laws to keep firearms out of the hands of those Congress has precluded from possessing firearms. "Operation 922" specifically focuses on domestic violence abusers who are subject to a victim protection order or restraining order (VPO), or who have been previously convicted in any court of a misdemeanor crime of domestic violence. Section 922 of Title 18 of the United States Code prohibits those specific offenders from possessing firearms or ammunition. In addition, the U.S. Attorney’s Office prosecutes cases in Indian Country, including domestic abuse acts involving strangulation, as well as cases in which a firearm or other weapon is used.
"We cannot have safe neighborhoods without first having safe homes," said Mr. Troester. "We are bringing the power of federal prosecution to help protect women and children who are the subject of repeated abuse and violence, particularly when that violence escalates to a place where firearms or weapons are involved. We are proud to partner with and assist state, local, and tribal law enforcement and prosecutors, who are already working tirelessly to combat the epidemic of domestic violence in Oklahoma."
Since "Operation 922" began in March of this year, the U.S. Attorney’s Office has brought charges in 35 cases involving domestic violence. In the first two weeks of December, federal grand juries returned the following four indictments in separate and unrelated cases involving domestic violence:
- AUSTIN ISRAEL SANDERS, 23, of Weatherford, Oklahoma, was indicted on December 4, 2018, for illegally possessing a 9mm, semi-automatic pistol on July 20, 2018, while being subject to a victim protection order issued out of Custer County, Oklahoma, that restrained him from harassing, stalking, or threatening an intimate partner. If convicted, Sanders faces up to ten years in federal prison, up to a $250,000 fine, and three years of supervised release upon release from prison.
- RONALD BENTON, 46, of Temple, Oklahoma, was charged on December 12, 2018, with the illegal possession of a 9mm caliber pistol on June 15, 2018, in Cotton County, Oklahoma, after having been previously convicted of battery on a household member in 2007 in New Mexico. If convicted, Benton faces up to ten years in federal prison, up to a $250,000 fine, and three years of supervised release upon release from prison.
- SHANE MICHAEL GLISSON, 38, of Tuttle, Oklahoma, was indicted on December 12, 2018, for illegally possessing multiple shotguns, a rifle, and ammunition on October 26, 2018, in Cleveland County, Oklahoma, while he was subject to a Cleveland County victim protection order that restrained him from harassing, stalking, or threatening an intimate partner. If convicted, Sanders faces up to ten years in federal prison, up to a $250,000 fine, and three years of supervised release upon release from prison.
- JAMES DEAN LAMAR LAFOUNTAIN, 24, of Seiling, Oklahoma, was indicted on December 12, 2018, on two counts: assaulting his spouse with a dangerous weapon (a knife), and assaulting his spouse by attempting to strangle and suffocate her on November 25, 2018, in Indian Country. If convicted, Lafountain faces on each count up to ten years in federal prison, up to a $250,000 fine, and three years of supervised release upon release from prison.
Please note that an indictment is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
These cases are the result of investigations conducted by the Weatherford Police Department, the Moore Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Bureau of Indian Affairs – Office of Justice Services, and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Wilson McGarry is prosecuting the cases against Sanders and Benton. Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting the case against Glisson. Assistant U.S. Attorney Jessica Cárdenas is prosecuting the case against Lafountain.
Former Bank President Sentenced to Prison and Ordered to Pay $137 MillionRead the Press Release
OKLAHOMA CITY – JOHN ARNOLD SHELLEY, 68, of Oklahoma City, has been sentenced to four years in federal prison for making a false statement to the Federal Deposit Insurance Corporation, announced Robert J. Troester of the U.S. Attorney’s Office. He has also been ordered to pay over $137 million in restitution.
Shelley was the President, Chief Executive Officer, Chairman of the Board, and a loan officer at The Bank of Union ("BOU") in El Reno, Oklahoma, from the late 1990s until his resignation on November 30, 2013. In January 2014, state banking regulators closed BOU because of the bank’s loan losses, and the FDIC was appointed as receiver.
On December 13, 2016, a federal grand jury returned a 23-count indictment against Shelley in connection with the failure of the Bank of Union. The counts included bank fraud, money laundering, making false statements to a bank, misapplication of bank funds, false bank entries, wire fraud, and making false statements to the FDIC. According to the indictment, Shelley defrauded BOU in several ways: (1) by issuing loans with insufficient collateral and falsifying financial statements for several high-dollar bank borrowers; (2) by originating nominee loans to circumvent the bank’s legal lending limit; (3) by concealing the bank’s true financial condition from the Board of Directors; (4) by soliciting a fraudulent investment; and (5) by falsely representing the bank’s true status to the FDIC.
According to the indictment, Shelley conspired with certain BOU borrowers from approximately 2009 through November 2013 to defraud BOU by issuing them millions of dollars in BOU loan proceeds secured by collateral that they did not have. Although these borrowers had already accumulated significant debt that they could not repay, Shelley continued to issue them new loans and capitalized accrued interest. At monthly BOU Board meetings, he failed to disclose the true status of these delinquent loan accounts; instead, he advised the Board that the borrowers were continuing to pay down their loans. Shelley also allegedly issued new loans to these borrowers in order to keep them off of BOU’s monthly overdraft reports.
Further, the indictment charged that Shelley executed a scheme to defraud a partial owner and investor in BOU in 2012. According to the indictment, Shelley persuaded the investor to wire $40 million by falsely representing that BOU was growing rapidly and performing well. The indictment alleged that, although Shelley knew that the bank was on the brink of failure and needed an immediate capital infusion to ensure its solvency, he advised the partial owner that his money would not be at risk.
Finally, Shelley was charged with falsely representing the bank’s loan status to the FDIC. Between September 2012 and September 2013, Shelley continued to renew certain unpaid borrower loans by capitalizing unpaid interest. Pursuant to an October 2013 FDIC safety and soundness examination, he allegedly falsely represented that he had not renewed or extended any loans without full collection of the interest due between September 2012 and September 2013.
On September 18, 2017, Shelley pleaded guilty to making a false statement to the FDIC on July 30, 2013, when he falsely represented in writing that the bank had total equity capital of $36,290,000, when he knew the bank’s equity capital was significantly less. This offense carries a penalty of up to 30 years in prison and a fine of up to $1,000,000.
On December 14, 2018, after two days of testimony about Shelley’s conduct, U.S. District Judge Timothy D. DeGiusti sentenced Shelley to four years in prison. He found that Shelley’s crime involved more than $85 million in losses for purposes of federal sentencing law. He imposed a sentence well below the advisory imprisonment range applicable under the U.S. Sentencing Guidelines because of Shelley’s health, personal history, and other factors. After release from prison, Shelley will serve two years on supervised release.
The sentence requires Shelley to pay $137,384,291 in restitution. The partial owner who wired money for the bank’s benefit in late 2012 is due $40 million of the restitution amount. Shelley owes the remaining $97,384,291 to the FDIC, which lost money when it assumed the bank’s liabilities in January 2014.
This case is the result of an investigation by the Federal Deposit Insurance Corporation–Office of Inspector General and the Federal Bureau of Investigation’s Oklahoma City Division. It was prosecuted by Assistant U.S. Attorneys Julia E. Barry, William E. Farrior, and Scott E. Williams.
Reference is made to public filings for further information.
Saudi Citizen Admits to Visa Fraud and Concealing Attendance at Al Qaeda Training CampRead the Press Release
OKLAHOMA CITY — Naif Abdulaziz M. Alfallaj, 35, a citizen of Saudi Arabia and a former resident of Weatherford, Oklahoma, has pleaded guilty to visa fraud and making a false statement to the FBI by, among other things, concealing his application to and attendance at an al Qaeda training camp in Afghanistan in late 2000.
Assistant Attorney General for National Security John C. Demers, First Assistant U.S. Attorney Robert J. Troester of the Western District of Oklahoma, and Special Agent in Charge Kathryn Peterson of the FBI’s Oklahoma City Division made the announcement.
"Protecting our national security is the highest priority of the Department of Justice," said Mr. Troester. "I commend the outstanding efforts of the FBI’s Joint Terrorism Task Force for its collaborative and focused work in this investigation."
"This investigation highlights the ongoing, coordinated efforts of the FBI and the Joint Terrorism Task Force to protect and defend the American people against any potential acts of terror," said Kathryn Peterson, Special Agent in Charge of the FBI’s Oklahoma City Division.
On Feb. 5, 2018, Alfallaj was taken into custody by the FBI without incident, based on a criminal complaint signed in the Western District of Oklahoma. According to the complaint, the FBI found 15 of Alfallaj’s fingerprints on an application to an al Qaeda training camp, known as al Farooq, which was one of al Qaeda’s key training sites in Afghanistan. The document was recovered by the U.S. military from an al Qaeda safe house in Afghanistan. The document is also alleged to include an emergency contact number associated with Alfallaj’s father in Saudi Arabia. Alfallaj is alleged to have first entered the U.S. in late 2011 on a nonimmigrant visa based on his wife’s status as a foreign student. According to the complaint, he answered several questions on his visa application falsely, including whether he had ever supported terrorists or terrorist organizations. Alfallaj has been detained in federal custody since his arrest on Feb. 5.
On Feb. 6, a grand jury returned a three-count indictment against Alfallaj. The indictment charged two counts of visa fraud. Count One alleged that from March 2012 to the present, Alfallaj possessed a visa obtained by fraud. Count Two alleged he used that visa in October 2016 to apply for lessons at a private flight school in Oklahoma. The third count charged him with making a false statement to the FBI involving an offense of international terrorism, when he denied ever having associated with anyone from a foreign terrorist group.
At today’s hearing, Alfallaj pleaded guilty to one count of visa fraud and one count of making a false statement to the FBI relating to international terrorism. In particular, he admitted he possessed a nonimmigrant visa from March 2012 to early 2018 that he obtained by fraud. He also admitted he falsely told agents during the December 2017 interview that he had never visited Afghanistan or participated in religious, tactical, or military training outside Saudi Arabia, and otherwise affirmed falsely that all of the answers on his nonimmigrant visa application were true and correct.
Alfallaj faces up to ten years in prison on the visa-fraud offense. He faces up to eight years in prison for making a false statement involving international terrorism. He could also be fined up to $250,000 on each count. As part of his plea agreement, Alfallaj consented to the entry of a stipulated judicial order of removal from the United States at the end of his prison term. The Court will set a sentencing date in approximately 90 days. The maximum sentence is prescribed by Congress and is provided here for informational purposes. Any sentencing of the defendant will be determined by the court, based on the advisory Sentencing Guidelines and other statutory factors.
This case is the result of an investigation by the FBI Joint Terrorism Task Force, which includes members from the U.S. Department of Homeland Security, the U.S. Secret Service, the Transportation Security Administration, the Oklahoma Highway Patrol, the University of Oklahoma Police Department, the Oklahoma City Police Department, and the Edmond Police Department. Assistant U.S. Attorney Matt Dillon of the Western District of Oklahoma and Trial Attorney David C. Smith of the National Security Division’s Counterterrorism Section are prosecuting the case.
Saudi Citizen Admits to Visa Fraud and Concealing Attendance at Al Qaeda Training CampRead the Press Release
Naif Abdulaziz M. Alfallaj, 35, a citizen of Saudi Arabia and a former resident of Weatherford, Oklahoma, has pleaded guilty to visa fraud and making a false statement to the FBI by, among other things, concealing his application to and attendance at an al Qaeda training camp in Afghanistan in late 2000.
Assistant Attorney General for National Security John C. Demers, First Assistant U.S. Attorney Robert J. Troester of the Western District of Oklahoma, and Special Agent in Charge Kathryn Peterson of the FBI’s Oklahoma City Division made the announcement.
On Feb. 5, Alfallaj was taken into custody by the FBI without incident, based on a criminal complaint signed in the Western District of Oklahoma. According to the complaint, the FBI found 15 of Alfallaj’s fingerprints on an application to an al Qaeda training camp, known as al Farooq, which was one of al Qaeda’s key training sites in Afghanistan. The document was recovered by the U.S. military from an al Qaeda safe house in Afghanistan. The document is also alleged to include an emergency contact number associated with Alfallaj’s father in Saudi Arabia. Alfallaj is alleged to have first entered the U.S. in late 2011 on a nonimmigrant visa based on his wife’s status as a foreign student. According to the complaint, he answered several questions on his visa application falsely, including whether he had ever supported terrorists or terrorist organizations. Alfallaj has been detained in federal custody since his arrest on Feb. 5.
On Feb. 6, a grand jury returned a three-count indictment against Alfallaj. The indictment charged two counts of visa fraud. Count One alleged that from March 2012 to the present, Alfallaj possessed a visa obtained by fraud. Count Two alleged he used that visa in October 2016 to apply for lessons at a private flight school in Oklahoma. The third count charged him with making a false statement to the FBI involving an offense of international terrorism, when he denied ever having associated with anyone from a foreign terrorist group.
At today’s hearing, Alfallaj pleaded guilty to one count of visa fraud and one count of making a false statement to the FBI relating to international terrorism. In particular, he admitted he possessed a nonimmigrant visa from March 2012 to early 2018 that he obtained by fraud. He also admitted he falsely told agents during the December 2017 interview that he had never visited Afghanistan or participated in religious, tactical, or military training outside Saudi Arabia, and otherwise affirmed falsely that all of the answers on his nonimmigrant visa application were true and correct.
Alfallaj faces up to ten years in prison on the visa-fraud offense. He faces up to eight years in prison for making a false statement involving international terrorism. He could also be fined up to $250,000 on each count. As part of his plea agreement, Alfallaj consented to the entry of a stipulated judicial order of removal from the United States at the end of his prison term. The Court will set a sentencing date in approximately 90 days. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is the result of an investigation by the FBI Joint Terrorism Task Force, which includes members from the U.S. Department of Homeland Security, the U.S. Secret Service, the Transportation Security Administration, the Oklahoma Highway Patrol, the University of Oklahoma Police Department, the Oklahoma City Police Department, and the Edmond Police Department.
Assistant U.S. Attorney Matt Dillon of the Western District of Oklahoma and Trial Attorney David C. Smith of the National Security Division’s Counterterrorism Section are prosecuting the case.
California Telescope Enthusiast Sentenced to Prison for Cyber AttackRead the Press Release
OKLAHOMA CITY – DAVID CHESLEY GOODYEAR, 44, of El Segundo, California, has been sentenced to 26 months in prison for directing distributed-denial-of-service (DDoS) cyber attacks against two websites owned by Oklahoma telescope retailer Astronomics in August 2016, announced Robert J. Troester of the U.S. Attorney’s Office.
In August 2017, a federal grand jury charged Goodyear with attacking the websites of Astronomics, a family-owned telescope retailer in Norman, Oklahoma. He instigated a DDoS cyber attack, in which the perpetrator floods the victim’s computer with useless information from botnets—large clusters of connected devices infected with malware and controlled remotely—and prevents access by legitimate users.
On February 15, 2018, after two days of trial, a jury returned a guilty verdict. The evidence showed that Astronomics operated the world’s largest free astronomy forum on the internet, called Cloudy Nights, and that Goodyear had been a registered user on the site under a variety of aliases. Each of Goodyear’s usernames and his primary IP address had been banned for violating the terms of service of Cloudy Nights, including sending threats to other users, administrators, and moderators.
The jury heard that Goodyear attempted to access Cloudy Nights as "JamesSober" on August 13, 2016, but his access to the online community was denied because his "JamesSober" account had been banned on August 9, 2016. Goodyear then posted messages on Cloudy Nights under a new alias, "HawaiiAPUser," including pornography and profanity directed at Astronomics and the volunteer administrators and moderators of Cloudy Nights. In the posts, he threatened that he would "talk with [his] contacts and just DOS this site as well as A55tronomics." Evidence further showed that DDoS attacks against Astronomics and Cloudy Nights began that night and continued intermittently until the end of August 2016, when law enforcement interviewed Goodyear, who admitted he was responsible for the attacks.
On December 3, 2018, Chief U.S. District Judge Joe Heaton sentenced Goodyear to 26 months in the federal Bureau of Prisons, followed by three years of supervised release. He was ordered to pay $27,352.51 in restitution to Astronomics, which represents lost profits and mitigation costs. The court also fined him $2,500.00. Judge Heaton explained the punishment by pointing out Goodyear’s clear intent to harm Astronomics and the importance of deterring sophisticated cybercrimes, which are difficult to trace and therefore particularly important to punish and thereby send the appropriate message to others.
This sentence is the result of an investigation by the FBI, with support from the United States Secret Service Electronic Crimes Task Force in Los Angeles, which includes personnel from the Los Angeles Police Department. The case was prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and William E. Farrior.
Reference is made to public filings for further information.
Behavioral Health Counselor Sentenced to Prison for Defrauding MedicaidRead the Press Release
OKLAHOMA CITY – SAMUEL OKERE, 61, of Oklahoma City, has been sentenced to a year in prison for Medicaid fraud, announced Robert J. Troester of the United States Attorney’s Office and Mike Hunter, Oklahoma Attorney General.
Okere was a licensed professional counselor and owner of New Life Counseling Services. On November 15, 2017, a federal grand jury charged him with 224 counts of defrauding the Oklahoma Health Care Authority through false claims for behavioral health counseling. In particular, the indictment alleged that Okere billed for counseling sessions for multiple individuals, primarily children, at times when he could not have been counseling them. For example, some of the times and dates billed were when clients were at school. Others were when Okere was engaged in activities inconsistent with counseling, such as speaking on the phone with representatives of the Oklahoma Health Care Authority.
Okere pleaded guilty to health care fraud on April 3, 2018.
Today U.S. District Judge Stephen P. Friot sentenced Okere to a year and a day in federal prison, to be followed by three years of supervised release. Pursuant to his plea agreement, he has paid $141,545.16 in restitution to Medicaid. A portion of the restitution will go to SoonerCare and a portion to the Centers for Medicare and Medicaid Services. Judge Friot also ordered Okere to pay a fine of $10,000.
This case was the result of an investigation by the Oklahoma Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Amanda Maxfield Green and Assistant Oklahoma Attorney General Lory Dewey, who is also a Special Assistant U.S. Attorney, are prosecuting the case. Reference is made to court filings for further information.
Man Subject to Victim Protection Order to Serve Two Years in Prison for Unlawful Possession of FirearmRead the Press Release
OKLAHOMA CITY – IVAN MACHADO-SALDIVAR, 34, of Oklahoma City, has been sentenced to 24 months in federal prison for possessing a firearm while subject to a victim protection order, announced Robert J. Troester of the U.S. Attorney’s Office.
According to an affidavit in support of a complaint filed on April 4, 2018, Del City police officers responded to a domestic dispute on March 22, 2018. The victim alleged Machado-Saldivar, her "boyfriend/common law husband," had kicked in her front door and assaulted her with a firearm. According to the affidavit, she later explained he had told her he would hurt both of them if she called the police. Near the victim’s residence, officers arrested Machado-Saldivar in a silver Lexus. A pat-down revealed he was wearing an empty plastic firearm holster on his right hip. An inventory search of the car yielded a 9mm pistol and fifteen rounds of ammunition.
The affidavit explains that officers determined Machado-Saldivar was subject to an Oklahoma County victim protection order entered on January 29, 2018. Although he had no felony convictions, the victim protection order made his possession of a firearm a felony under federal law.
Machado-Saldivar has been in the custody of the U.S. Marshals Service since April. On May 15, 2018, a federal grand jury indicted him for being in unlawful possession of a firearm while subject to a victim protection order. He pleaded guilty on July 2, 2018.
At his sentencing hearing yesterday, United States District Judge Charles Goodwin sentenced Machado-Saldivar to 24 months in prison, the top of the advisory range under the U.S. Sentencing Guidelines. The court also ordered him to serve one year of supervised release after imprisonment.
This sentence is the result of an investigation by the Del City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prosecuted by Assistant U.S. Attorney Jessica Cárdenas, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to public filings for further information.
Four Alleged Members of Universal Aryan Brotherhood Charged with Federal CrimesRead the Press Release
OKLAHOMA CITY – JACE LEE McKITTRICK, 29, of Enid; ROSS TYSON PILKINGTON, 39, of Lawton; and JERRY JAMES KENDALL RITCHIE, 32, of Enid, have been charged with possessing methamphetamine with intent to distribute, while MICHAEL QUINTON SMITH, II, 48, of Oklahoma City, and McKittrick have been charged with possessing a firearm after a felony conviction, announced Robert J. Troester of the U.S. Attorney’s Office. A federal grand jury returned indictments yesterday that charge each defendant separately, based on different events in different places and at different times. All four are alleged to be members of the Universal Aryan Brotherhood.
According to an affidavit in support of a criminal complaint filed on November 1, 2018, the Garfield County Sheriff’s Office attempted to stop a red GMC driven by McKittrick for a traffic violation at about 12:30 a.m. on October 10. McKittrick allegedly failed to stop and instead drove through a residential area at speeds of up to 70 miles per hour. The affidavit explains that McKittrick then turned around and rammed the pursuing police car. Continuing to attempt to evade the police, he is alleged to have eventually run into a tree and fled on foot. The pursuing officer was able to arrest him through the use of a taser, according to the complaint. McKittrick’s vehicle allegedly contained numerous one-gram-style baggies, 26.1 grams of a white crystalline substance that tested positive for methamphetamine, a marijuana cigar, and other items.
In addition to charging possession of methamphetamine with intent to distribute on October 10, the indictment charges McKittrick with three crimes on September 23, 2018: possession of methamphetamine and Oxycodone with intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of drug trafficking. If convicted of possessing methamphetamine or Oxycodone with intent to distribute, he could be imprisoned for twenty years and face not less than three years of supervised release. A conviction for being a felon in possession of a firearm would carry a maximum penalty of ten years, plus three years of supervised release. And a conviction for possessing a firearm in furtherance of drug trafficking would lead to mandatory imprisonment of five years in addition to any other penalty, plus up to five years of supervised release.
According to an affidavit in support of a criminal complaint filed on October 31, 2018, a detective with the Lawton Police Department stopped Pilkington for a traffic violation on June 12, 2018, at approximately 10:13 a.m. The affidavit alleges the detective felt a crunchy substance in Pilkington’s pocket while conducting a pat-down for weapons. According to the affidavit, the substance was in a clear plastic bag and appeared to be methamphetamine. Further search of the vehicle allegedly yielded 331 grams of methamphetamine, digital scales, and clear plastic baggies. If convicted of possessing methamphetamine with intent to distribute, Pilkington would face imprisonment between five and forty years and not less than four years of supervised release. Court records show that at the time of arrest, Pilkington was on supervised release following a conviction for being a felon in possession of a firearm.
According to an affidavit in support of a criminal complaint filed on November 1, 2018, Enid Police Department officers stopped a Buick SUV driven by Ritchie on October 19, 2018, at approximately 7:06 p.m. for a traffic violation. According to the affidavit, when officers apprehended Ritchie after he fled on foot, he refused to place his hands in the air and was pulled to the ground and handcuffed while yelling and cursing. It is alleged that officers ultimately discovered a loaded semi-automatic pistol in the SUV, along with bags with a white substance that tested positive for methamphetamine and two digital scales.
An indictment now charges Ritchie with possession of 3.9 grams of methamphetamine with intent to distribute, illegal possession of a firearm after a felony conviction, and possession of a firearm in furtherance of drug trafficking. If convicted on the drug count, he could be imprisoned up to twenty years, be fined up to $1,000,000, and be subject to three years of supervised release. If convicted of being a felon in possession of a firearm, he could be imprisoned for ten years and face up to three years of supervised release. The count charging possession of a firearm in furtherance of drug trafficking would carry a mandatory term of five years of imprisonment beyond any other sentence and three years of supervised release. If, however, the court were to determine he qualifies as an armed career criminal, he would be subject to a mandatory prison term of fifteen years and a maximum of life.
According to an affidavit in support of a criminal complaint filed on November 9, 2018, Oklahoma City Police Department officers found Smith on August 7, 2018, just after 3:00 a.m., asleep in a Toyota Tundra that was straddling lanes at the intersection of S.W. 59th Street and Blackwelder Avenue. The affidavit explains that after waking Smith up, an officer determined he had been driving under revocation, had five felony warrants out of Oklahoma County, and was a convicted felon. That officer allegedly saw a firearm later identified as a Bushmaster Firearms International, Model XM15-E2S, .223 caliber/5.56 rifle in plain view on the back floorboard. According to the affidavit, the gun had a loaded thirty-round magazine and had been stolen in Midwest City. If convicted of being a felon in possession of a firearm, Smith could be imprisoned for ten years and face up to three years of supervised release.
The charges against McKittrick and Ritchie are the results of investigations by the Enid Police Department, the Garfield County Sheriff’s Office, the U.S. Department of Homeland Security—Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the District Attorney’s Office for Garfield County. The charge against Pilkington is the result of an investigation by the Lawton Police Department and the FBI, with assistance from the District Attorney’s Office for Comanche County. The charge against Smith is the result of an investigation by the Oklahoma City Police Department and the U.S. Department of Homeland Security—Homeland Security Investigations, with assistance from the District Attorney’s Office for Oklahoma County. Prosecuted by Assistant U.S. Attorneys Nicholas Patterson and Mark R. Stoneman, these four cases are part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
The public is reminded that these charges are merely allegations and that each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Charter Aircraft Company and Its Owner Plead Guilty to Failing to Report Leases to FAARead the Press Release
OKLAHOMA CITY – JAMES PAUL JOHNSON, 66, of Oklahoma City, and Interstate Helicopters, Inc., pleaded guilty today to failing intentionally to report to the Federal Aviation Administration five leases of fixed-wing aircraft from 2014 to 2016, announced Robert J. Troester of the U.S. Attorney’s Office.
According to a misdemeanor information filed on November 2, 2018, Johnson owned and operated Interstate Helicopters, an Oklahoma corporation. Johnson and Interstate Helicopters induced five individuals to lease Cessna Citation aircraft and operated those aircraft for the lessees. No one, however, provided the leases for those flights to the FAA, as required by federal law. The information alleges Johnson and Interstate Helicopters intentionally failed to report leases to the FAA for flights on May 20, 2014; September 25, 2015; January 31, 2016; July 19, 2016; and July 20, 2016. Each of these failures is a federal misdemeanor.
At a plea hearing this afternoon before U.S. Magistrate Judge Gary M. Purcell, Johnson admitted the allegations in the information on his own behalf and on behalf of Interstate Helicopters. Their plea agreements provide that Johnson will pay a fine of $5,000 and Interstate Helicopters will pay a fine of $45,000.
This case is the result of an investigation by the Department of Transportation—Office of Inspector General and is being prosecuted by Assistant U.S. Attorneys William E. Farrior and Charles W. Brown.
Reference is made to court records for further information.
More Than Four Pounds of Fentanyl Lead to Prison for Two MenRead the Press Release
OKLAHOMA CITY – JOSE AVIGAIL GRIJALVA, 26, of Tucson, Arizona, and RAYMEND LEE SCOTT, JR., 39, of Roswell, Georgia, have been sentenced to ten and seven years respectively for trafficking in fentanyl and cocaine, announced Robert J. Troester of the U.S. Attorney’s Office.
According to court documents, the Oklahoma Highway Patrol stopped Grijalva and Scott for a traffic violation on Interstate 40 in western Oklahoma on April 10, 2017. A drug dog alerted to the back bumper. Troopers found 4.5 pounds of fentanyl and more than seven pounds of cocaine in the spare tire.
The next day, the District Attorney for Caddo County charged Grijalva and Scott with aggravated drug trafficking. A federal grand jury indicted the pair on May 18, 2017, on one count of conspiracy and one count of possessing cocaine with intent to distribute. After testing revealed the presence of fentanyl, the grand jury returned a two-count superseding indictment on June 20, 2017.
Fentanyl is a powerful synthetic opioid typically prescribed in amounts less than a milligram. The National Institute on Drug Abuse reported in August 2018 that synthetic opioids other than methadone—a category dominated by fentanyl—were responsible for more than 29,000 of approximately 72,000 overdose deaths in the United States in 2017. According to the Drug Enforcement Administration, 4.5 pounds of fentanyl, if pure, could kill as many as one million people.
Grijalva pleaded guilty to possession of controlled substances with intent to distribute on November 21, 2017. On February 27, 2018, Scott pleaded guilty to a superseding information that charged him with conspiring to traffic fentanyl and cocaine.
On September 6, 2018, Chief U.S. District Judge Joe Heaton sentenced Grijalva to 120 months in prison, to be followed by five years of supervised release. Today Judge Heaton sentenced Scott to seven years in prison and three years of supervised release. Both have been in state or federal custody since their arrest in April 2017.
This case is the result of an investigation by the Drug Enforcement Administration and the Oklahoma Highway Patrol, with assistance from the District Attorney for Caddo, Grady, Jefferson, and Stephens Counties. It was prosecuted by Assistant U.S. Attorneys David McCrary and Jacquelyn M. Hutzell.
Reference is made to court filings for further information.
Grand Jury Adds Wildlife Charges to Murder-For-Hire Allegations Against "Joe Exotic"Read the Press Release
OKLAHOMA CITY – JOSEPH MALDONADO-PASSAGE, also known as Joseph Allen Maldonado, Joseph Allen Schreibvogel, and "Joe Exotic," 55, formerly of Wynnewood, Oklahoma, has been charged in a 21-count superseding indictment that includes the two previously charged murder-for-hire counts and also alleges nineteen wildlife crimes, including the alleged killing of five tigers and the illegal sale of tiger cubs, in violation of the Endangered Species Act and Lacey Act, announced Robert J. Troester of the U.S. Attorney’s Office for the Western District of Oklahoma.
On September 5, 2018, a federal grand jury returned an indictment that accuses Maldonado-Passage of hiring an unnamed person in November 2017 to murder "Jane Doe" in Florida. According to the indictment, Maldonado-Passage gave the unnamed person $3,000 to travel from Oklahoma to South Carolina and then to Florida to carry out the murder. He allegedly agreed to pay thousands more after the deed. The indictment alleges Maldonado-Passage caused the person to travel to Dallas to get fake identification for use in the plot. According to the indictment, the person traveled from Oklahoma to South Carolina on November 26, 2017.
In a second count, the September 5 indictment alleges that beginning in July 2016, Maldonado-Passage repeatedly asked a different unnamed person to find someone to murder Jane Doe in exchange for money. The second person put Maldonado-Passage in contact with an undercover FBI agent. Maldonado-Passage met with the undercover agent on December 8, 2017, to discuss details of murdering Jane Doe.
The U.S. Marshals Service arrested Maldonado-Passage in Gulf Breeze, Florida, on September 7, 2018. He has been ordered detained in the Marshals’ custody pending trial.
According to the superseding indictment handed down today, Maldonado-Passage shot and killed five tigers in October 2017 to make room for cage space for other big cats. Because tigers are an endangered species, these alleged killings violated the Endangered Species Act. He is also charged with violating the Endangered Species Act by selling and offering to sell tiger cubs in interstate commerce. These crimes are alleged to have taken place from November 16, 2016, to March 6, 2018.
The remaining wildlife counts allege violations of the Lacey Act, which makes it a crime to falsify records of wildlife transactions in interstate commerce. According to these counts, Maldonado-Passage designated on delivery forms and Certificates of Veterinary Inspection that tigers, lions, and a baby lemur were being donated to the recipient or transported for exhibition only, when he knew that they were being sold in interstate commerce. One count alleges that Maldonado-Passage sold in interstate commerce a two-week-old lion cub.
If Maldonado-Passage is found guilty of murder-for-hire, he could be imprisoned on each count up to ten years. He would also be subject to up to three years of supervised release and a fine of up to $250,000 per count. If convicted of a violation of the Endangered Species Act, he could be sentenced on each count to one year in prison, a fine of $100,000, and one year of supervised release. Each Lacey Act violation could carry a prison term of five years, a fine of $250,000, and three years of supervised release.
"The investigation of murder-for-hire and wildlife allegations has required close coordination among law enforcement," said Mr. Troester. "We will work hard to protect people as well as wildlife and deter these sorts of crimes."
"The U.S. Fish and Wildlife Service is committed to combating illegal wildlife trafficking and protecting our wildlife resources for the benefit of future generations," said Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service Edward Grace. "We thank our partners at the FBI, U.S. Marshals Service, Oklahoma Department of Wildlife Conservation, and the Department of Justice for their help in this case. Together we will continue to investigate and prosecute those who engage in unlawful wildlife trafficking for monetary gain."
Oklahoma City FBI Special Agent-in-Charge Kathryn Peterson said: "The FBI appreciates our law enforcement partners and the combined efforts which thwarted this murder-for-hire plot and uncovered these serious wildlife crimes."
This case is the result of an investigation by the U.S. Fish and Wildlife Service Office of Law Enforcement, the FBI, and the Oklahoma Department of Wildlife Conservation, with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Amanda Green and Charles W. Brown are prosecuting the case.
The public is reminded that these charges are merely allegations and that Maldonado-Passage is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Assistant U.S. Attorney Brandon Hale Receives Professionalism AwardRead the Press Release
OKLAHOMA CITY – Assistant U.S. Attorney Brandon Hale has been named the prosecutorial Professional Advocate of the Year by the Criminal Law Section of the Oklahoma Bar Association, announced Robert J. Troester of the U.S. Attorney’s Office. Mr. Hale received the award today at the Section’s luncheon at the Oklahoma Bar Association’s Annual Meeting in Tulsa. Each year, the Criminal Law Section recognizes a prosecutor and a defense attorney who exhibit superior advocacy skills before the court and consistently show professionalism, courtesy, and respect to opposing counsel in the spirit of the adversarial system.
Since Mr. Hale became an Assistant U.S. Attorney in 2008, his practice has focused on Project Safe Childhood, a long-standing Department initiative to prosecute child pornography and other child exploitation offenses. A graduate of the University of Oklahoma College of Law, he serves as the Professional Responsibility Officer for the U.S. Attorney’s Office’s Criminal Division. In addition to his role at the Department of Justice, he serves as an officer in the Navy JAG Corps.
Steroid Distribution Results in Four ConvictionsRead the Press Release
OKLAHOMA CITY – Four defendants have entered guilty pleas to charges stemming from a steroid-distribution ring, announced Robert J. Troester of the U.S. Attorney’s Office. Between October 3 and November 2, CHRISTOPHER THOMAS CAPLINGER, 55, of Edmond, Oklahoma; DONALD RAY VINCENT, JR., 54, of Edmond; DEBORAH ANN CRAWFORD, 47, of Oklahoma City; and MICHAEL BRANDON SCHOTT, 35, of Newport News, Virginia, have been found guilty of a steroid offense or conspiring to launder the proceeds of that offense, announced Robert J. Troester of the U.S. Attorney’s Office. Caplinger and Vincent have pleaded guilty to both manufacturing steroids and money laundering.
On March 20, 2018, a federal grand jury returned a 23-count indictment against all four defendants. In addition to allegations of illegally conspiring to distribute steroids, a Schedule III controlled substance, the indictment charged distribution of steroids to an undercover officer, manufacturing of steroids, maintaining a drug-involved premises, a conspiracy to commit money laundering, and international money laundering. According to the indictment, Capinger, Vincent, and Crawford concealed the proceeds of their illegal activity by depositing money into bank accounts in the names of third parties and storing bulk cash at residences, including approximately $280,000 buried in Caplinger’s back yard. The indictment alleged that from April 2015 until November 2017, Caplinger rented space at 8201 North Classen Boulevard in Oklahoma City for the purpose of manufacturing and distributing steroids. It also alleged that Caplinger and Crawford transferred funds to China to conceal their crimes.
On November 1, U.S. District Judge Scott L. Palk accepted Caplinger’s pleas of guilty to manufacturing anabolic steroids and conspiring to launder the proceeds. Caplinger has agreed that his conduct involved at least 60,000 doses of anabolic steroids. He has also agreed to the forfeiture of $287,743 in currency and a $740,000 money judgment. At sentencing, he faces up to ten years in prison for manufacturing steroids and up to twenty years for conspiring to commit money laundering. He could also be fined up to $500,000 on each count and could be on supervised release for the rest of his life.
The remaining three defendants have also pleaded guilty. On October 3, Vincent admitted in open court that he manufactured anabolic steroids and conspired to commit money laundering. He has agreed to forfeit $99,473 in currency. Crawford entered a guilty plea to the money-laundering conspiracy on October 24. And Schott pleaded guilty on November 2 to conspiring to distribute anabolic steroids. Like Caplinger, each of these defendants faces up to ten years in prison for a steroid offense and up to twenty years in prison for a money-laundering offense. Each also faces a fine of up to $500,000 on each count of conviction, in addition to supervised release. Sentencings will take place in approximately ninety days.
These convictions are the result of an investigation by the Drug Enforcement Agency, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Internal Revenue Service—Criminal Investigations, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Michael Eaton, Kerry Blackburn, and David McCrary are prosecuting the case.
Reference is made to public filings for further information.