Western District of Oklahoma
Press releases recorded for this federal judicial district.
Attorney General Sessions and U.S. Attorney Troester Recognize Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
OKLAHOMA CITY—Attorney General Sessions and Acting U.S. Attorney Robert J. Troester recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week. They also commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 13, to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country and recognizes their hard work, dedication, and commitment to keeping our communities safe.
Two events in Oklahoma City will honor police service. On Friday, May 18, at 10:00 am, the names of six law enforcement officers will be added to the Oklahoma Law Enforcement Officer’s Memorial during the fiftieth annual service at the Oklahoma Department of Public Safety Headquarters, 3600 N. Martin Luther King Avenue. The six officers are Perkins Police Officer Henry L. Cotton, Department of Corrections Corporal Stephen R. Jenkins, Craig County Deputy Sheriff Sean F. Cookson, Tecumseh Police Officer Justin M. Terney, Logan County Deputy Sheriff David J. Wade, and Oklahoma Highway Patrol Lieutenant D. Heath Meyer. Officer Cotton passed away in 1986 after an altercation during an arrest. The other five officers lost their lives in the line of duty during 2017.
Later that day, at 2:00 pm, the Oklahoma City Police Department will conduct its annual service to honor fallen officers. That event will take place at Department headquarters, 700 Colcord Drive.
"One officer death is too many," Attorney General Sessions said. "While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks."
"All of us rely on law enforcement officers to keep us safe in the face of threats, many violent in nature," said Acting U.S. Attorney Troester. "The sacrifices of fallen officers and their families deserve the utmost appreciation of all citizens, not just the law enforcement community. We are committed to support our dedicated federal, state, local, and tribal law enforcement partners to ensure their safety while reducing violent crime in Oklahoma."
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017—a 21 percent decrease from 2016, when 118 law enforcement officers were killed in line-of-duty incidents.
In 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts—a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of the FBI’s Law Enforcement Officers Killed and Assaulted report, released this week, at www.fbi.gov.
The names of all 93 fallen officers nationwide in 2017 will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 pm EDT on May 13. To register for this free online event, visit www.lawmemorial.org/webcast. In addition to the six officers named above, two other Oklahoma law enforcement officers will be among more than 300 names added to the National Memorial: Logan County Deputy Sheriff Edward J. Wright, who died in 2016, and Sac & Fox Nation Police Officer Nathan B. Graves, who died in 2017.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018. For more information about other National Police Week events, please visit www.policeweek.org.
Alleged Robber of IBC Bank in Shawnee in Custody in MississippiRead the Press Release
OKLAHOMA CITY – ADAM J. STEELE, 26, has been charged with the robbery of an IBC Bank in Shawnee, Oklahoma, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to a complaint filed in federal court in Oklahoma City on May 1, 2018, a man robbed a branch of IBC Bank on North Harrison Avenue in Shawnee on April 14, 2018, by presenting a note that read: "give me $10,000, you won’t get shot if you give it to me, don’t be stupid." The man allegedly left the bank with $2,909 in cash. According to the complaint, he was carrying a canvas bag and wearing a dark-colored ball cap, dark sunglasses, and a bright orange sweatshirt.
The complaint alleges the robber was Steele and that he was arrested in Hernando, Mississippi, on April 27 for driving a stolen 2005 Chevrolet Tahoe registered in Oklahoma. Investigators searched the vehicle and found clothing matching the description of the suspect during the robbery, as well as a canvas bag.
Steele is currently in Mississippi state custody. He is expected to be returned to Oklahoma in the coming weeks to make his appearance in federal court.
This case is the result of an investigation by the FBI, with assistance from the Shawnee Police Department and the Hugo Police Department. Assistant U.S. Attorney Arvo Mikkanen is prosecuting the case.
The public is reminded that this complaint is merely an allegation and that Steele is innocent unless proven guilty beyond a reasonable doubt.
Reference is made to public filings for further information.
Former Camargo Bank President Sentenced to PrisonRead the Press Release
OKLAHOMA CITY – Former First State Bank of Camargo President STEPHEN GREGORY WARD, 53, of Edmond, Oklahoma, has been sentenced to eighteen months in prison for conspiring to misapply bank funds, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to charges filed in September 2017, banking regulators closed First State Bank of Camargo in 2011, one hundred years after it opened. The bank was critically undercapitalized because Ward allowed bank insiders to pay personal and business checks when their accounts had insufficient funds. Between 2006 and 2011, the practice of using deposits of other customers to cover insiders’ overdrafts led certain bank employees to manipulate bank ledgers and records, which caused a significant under-reporting of overdrafts to the Federal Deposit Insurance Corporation. The charges identify numerous instances in which Ward personally took advantage of the bank’s illegal treatment of overdrafts.
On September 29, 2017, Ward pleaded guilty to conspiracy. Yesterday, Chief U.S. District Judge Joe Heaton sentenced him to eighteen months in prison, to be followed by three years of supervised release. He must also pay $95,149.38 Judge Heaton also sentenced yesterday NICKI S. DAY and MARJORIE H. COLE, both of Camargo. These two women worked at the bank and pleaded guilty to conspiring with Ward. Cole also pleaded guilty to failing to report income from the conspiracy on her 2008 federal income tax return. Each will serve one year and one day in federal prison, followed by three years of supervised release. Day was ordered to pay $140,768.05 to the FDIC; Cole was ordered to pay $733,473.64 to the FDIC and $89,996 to the Internal Revenue Service.
This case is the result of an investigation by the Federal Deposit Insurance Corporation’s Office of Inspector General, the FBI, and the Internal Revenue Service—Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Kerry A. Kelly.
Reference is made to public filings for further information.
Edmond Man and Three Others Charged in Conspiracy to Distribute SteroidsRead the Press Release
OKLAHOMA CITY – CHRISTOPHER THOMAS CAPLINGER, 55, of Edmond, Oklahoma, and three others have been charged with conspiring to distribute anabolic steroids, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
On March 20, 2018, a federal grand jury returned a 23-count indictment against Caplinger, DONALD RAY VINCENT, JR., 54, of Edmond; DEBORAH ANN CRAWFORD, 47, of Oklahoma City; and MICHAEL BRANDON SCHOTT, 34, of Newport News, Virginia. In addition to allegations of illegally conspiring to distribute steroids, a Schedule III controlled substance, the indictment charges 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 alleges 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 alleges that Caplinger and Crawford transferred funds to China to conceal their crimes.
The indictment seeks forfeiture of a total of $790,000 in proceeds, including Caplinger’s residential property in Edmond and more than $372,000 in cash.
Caplinger and Vincent were arraigned today in federal court in Oklahoma City.
If convicted, each defendant faces up to ten years in prison for conspiracy, followed by up to a lifetime on supervised release. Caplinger faces additional ten-year prison terms for six counts relating to the distribution and manufacture of steroids and an additional twenty years for maintaining a drug-involved premises. Caplinger, Vincent, and Crawford also face up to twenty years in prison on various money-laundering counts. All but one of the twenty-three counts carries a fine of up to $500,000.
These charges 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. Attorney Kerry Blackburn is prosecuting the case.
Reference is made to public filings for further information.
Crescent Man Sentenced to 33 Months in Prison for Cyberstalking Public School TeacherRead the Press Release
OKLAHOMA CITY – TROY ALLEN MARTIN, 46, of Crescent, has been sentenced to 33 months in federal prison for cyberstalking, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On October 3, 2017, a federal grand jury indicted Martin on two counts of cyberstalking. He pleaded guilty to one of those counts on November 28, 2017, before United States District Judge Stephen P. Friot.
According to court records, Martin met an Oklahoma public school teacher (who did not live in Crescent) through a dating website. After a brief romantic relationship, he acquired nude photographs of her, which he used to extort money from her. His texts included: "So how much is it worth not to send [the] pictures?" The teacher responded: "Please don’t do this to me." Martin wrote: "No u hurt me so now I want something for it." The teacher asked Martin what he wanted, and he texted back: "Money." At first, he demanded $100,000; he ultimately extorted $50,000 from her. Martin threatened to send the nude pictures to the teacher’s school and family. He also threatened to post them on YouTube and Facebook and to send them to her realtor and to otherwise thwart the sale of her home.
In addition to threatening to disseminate nude pictures of the teacher, Martin repeatedly harassed her through constant phone calls and text messages, sometimes using spoofed phone numbers. He threatened repeatedly to call her family members during the night on an untraceable number. He also threatened physical harm to her family through text messages, such as: "I will hire someone if u know what I mean[.] I have money."
In a statement to the court, the teacher stated that her life began to be consumed by trying to placate Martin so he would not disseminate her nude photos and ruin her career and reputation. She said she felt like his puppet and was "petrified."
On April 24, 2018, Judge Friot sentenced Martin to 33 months’ imprisonment. At the sentencing hearing, the court took into consideration Martin’s having engaged in similar conduct with other women. In adjudging his sentence, Judge Friot stated society must know that this type of criminal behavior can result in imprisonment.
In addition to the 33-month sentence, Judge Friot ordered Martin to pay $50,000 in restitution to the victim, to pay a $5,000 fine, and to serve three years of supervised release after his prison term.
This case is the result of an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Brandon Hale prosecuted the case.
Reference is made to public filings for further information.
New Charge Filed Against Man Who Attempted to Bomb Downtown Oklahoma City BankRead the Press Release
OKLAHOMA CITY — A federal grand jury has returned a superseding indictment against 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, Acting United States Attorney for the Western District of Oklahoma.
The FBI arrested Varnell at approximately 1:00 am on August 12, 2017, after he allegedly 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. Varnell has been in federal custody since his arrest.
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. If convicted of that charge, he would face a maximum sentence of 20 years in prison and a mandatory minimum sentence of five years’ imprisonment. He would also be subject to supervised release for up to life.
Today’s superseding indictment adds a second charge: attempting to use a weapon of mass destruction, in particular an explosive or incendiary bomb, against property used in interstate commerce. If convicted of this new charge, he would face a maximum sentence of life in prison.
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.
The public is reminded that these charges are merely allegations and that Varnell is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to court records for further information.
Justice Department Honors Oklahoma City Chief of Police for Service to Victims of CrimeRead the Press Release
WASHINGTON – Today, the Department of Justice recognized Oklahoma City Chief of Police Captain William Citty with the Allied Professional Award. The honor is awarded to individuals outside the victim assistance profession for their service to victims and contributions to the field of victim services. He was honored during the annual National Crime Victims’ Service Awards ceremony in Washington, D.C.
"Chief Citty has served and protected the people of Oklahoma City for more than 40 years, and has been a champion for victims of crime," Attorney General Sessions said. "He has consistently gone above and beyond the call of duty in serving them, including by helping to open Palomar, Oklahoma City’s Family Justice Center. I applaud his dedication to victims and I am grateful for his tireless service on their behalf."
"Oklahoma City is fortunate to have a Police Chief so focused on helping victims of crime," said Acting U.S. Attorney Robert J. Troester. "My office is honored to work with him and his Department in reducing violence in Oklahoma City and serving those most affected by crime."Citty became Oklahoma City’s 48th Chief of Police in 2003. Citty championed the creation of Family Justice Center, which has changed the framework of Oklahoma City’s response to crime victims by providing wraparound services to victims of domestic violence and other crime. Previously, Oklahoma City victims were sent from location to location for services, often hindering their ability to heal from traumatic experiences.
"Mr. Citty’s compassion and leadership has significantly improved the way victims of crime are treated in Oklahoma City," said Director Darlene Hutchinson of the Office for Victims of Crime. "The Department of Justice is proud to honor him for his remarkable contributions to his community and for his commitment to justice for all victims of crime."
During today’s ceremony, the Justice Department recognized a dozen individuals and organizations for their outstanding efforts on behalf of victims of crime. Awardees were selected from public nominations in ten categories.
Each year in April, the Department of Justice observes National Crime Victims’ Rights Week by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorney’s Offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 8-14, with the theme Expand the Circle: Reach All Victims.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/.Justice Department Announces Nationwide Initiative to Combat Sexual Harassment in HousingRead the Press Release
WASHINGTON — Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
"Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. "It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home."
"All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment," said Secretary Ben Carson. "No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination."
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in Washington, D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Pubic Service Announcement
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Oklahoma City Man Sentenced to Almost 20 Years in Federal Prison as Armed Career CriminalRead the Press Release
OKLAHOMA CITY – JAMES CORNELIUS CHRISTIAN, 40, of Oklahoma City, was sentenced to 235 months in federal prison for being a felon in possession of a firearm, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On October 11, 2017, a jury found Christian guilty of possessing a Ruger, model LCP, .380 caliber pistol after he had previously been convicted of a felony. He was acquitted on a second count of being a felon in possession of a firearm.
At a sentencing hearing today, United States District Judge David L. Russell took into consideration Christian’s multiple prior serious drug offenses, which qualified Christian as an armed career criminal under federal law. As an armed career criminal, he was subject to a mandatory minimum sentence of 15 years, or 180 months.
In addition to the 235-month sentence, Judge Russell ordered Christian to serve three years of supervised release after his release from prison.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by Assistant U.S. Attorneys Jacquelyn M. Hutzell and David Petermann. It is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, Attorney General Jeff Sessions 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.
Hammon Man Charged with Murder in Indian CountryRead the Press Release
OKLAHOMA CITY – A federal grand jury has charged TOMMY DEAN BULLCOMING, 54, of Hammon, Oklahoma, with first-degree murder in Indian Country, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
A five-count indictment unsealed today charges Bullcoming with five crimes he allegedly committed on September 6, 2017: first-degree premeditated murder, first-degree felony murder, carjacking resulting in death, kidnapping resulting in death, and arson. The indictment states he "used force, violence, and intimidation to intentionally take a Lexus RX300" from an Indian and that this resulted in her death. It further alleges he killed the victim "by stabbing and cutting her with a sharp object" and acted "in an especially heinous, cruel, and depraved manner in that the offense involved torture and serious physical abuse." The arson count alleges he maliciously set fire to the victim’s dwelling in Hammon.
If convicted of carjacking resulting in death, Bullcoming could face the death penalty. The Attorney General of the United States will decide whether to seek the death penalty based on the recommendation of the U.S. Attorney and after carefully considering the defendant’s background and the circumstances of the crime. If convicted of first-degree murder, felony murder, or kidnapping resulting in death, Bullcoming would face mandatory life in prison. The death penalty is not available for these offenses because federal jurisdiction is based on allegations they took place in Indian Country, and the relevant tribe has not opted in to the death penalty for those subject to its jurisdiction. The maximum punishment for arson would be 25 years in prison.
The public is reminded these charges are merely accusations and that Bullcoming is presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
This case is the result of an investigation by the FBI, the Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Mark R. Stoneman and Arvo Q. Mikkanen are prosecuting the case.
Reference is made to court filings for further information.
Oklahoma City Behavioral Health Counselor Pleads Guilty to Defrauding MedicaidRead the Press Release
OKLAHOMA CITY – SAMUEL OKERE, 61, of Oklahoma City, has pleaded guilty to Medicaid fraud, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma, and Mike Hunter, Oklahoma Attorney General.
Okere is 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.
On April 3, 2018, Okere pleaded guilty to health care fraud. At sentencing, he faces a maximum of ten years in federal prison, to be followed by three years of supervised release. He could also be fined up to $250,000 and will be required to pay restitution to Medicaid in the amount of $141,545.16. A portion of the restitution will go to SoonerCare and a portion to the Centers for Medicare and Medicaid Services. Sentencing will take place in approximately 90 days.
"Our partnership with the Attorney General’s Office is strong and effective in combatting health care fraud in Oklahoma," said Acting U.S. Attorney Troester.
"I appreciate U.S. Attorney Troester and his office for their assistance in helping us reach this successful outcome," Attorney General Hunter said. "Health care fraud harms defenseless citizens who rely on essential services and taxpayers, who fund these programs. I am glad we could work together on this case to hold Okere accountable for his actions."
This case is 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.
Guymon Doctor Sentenced to Prison for Dispensing Opiates Without a Medical PurposeRead the Press Release
OKLAHOMA CITY – DR. CHRISTOPHER BATEMAN SLATER, 57, of Guymon, Oklahoma, has been sentenced to eight months in federal prison for distributing codeine without a medical purpose, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
On May 26, 2017, Slater, a doctor of osteopathy, was charged with knowingly distributing and dispensing promethazine with codeine, a Schedule V controlled substance, outside the usual course of professional medical practice and without legitimate purpose. Codeine is an opiate used to treat pain and carries a high risk of addiction. According to the charges, the crime took place on April 18, 2012, in Texas County, Oklahoma. Slater pleaded guilty on June 15, 217.
On April 2, 2018, U.S. Magistrate Judge Shon T. Erwin sentenced Slater to 8 months in federal prison and a fine of $100,000, to be paid within 30 days. Slater must report to the Bureau of Prisons by April 11.
This case is the result of an investigation by Drug Enforcement Administration and the Oklahoma Bureau of Narcotics and Dangerous Drugs. It was prosecuted by Assistant U.S. Attorney Kerry Blackburn.
El Reno Man Sentenced to 30 Months in Prison for Possessing Child PornographyRead the Press Release
OKLAHOMA CITY – MATTHEW EDWARD HARMS, 39, of El Reno, Oklahoma, has been sentenced to 30 months in prison for possessing child pornography, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On February 2, 2016, Harms was indicted on one count of receipt of child pornography and one count of possession of child pornography. According to the charges, he used the Internet to receive child pornography and also possessed pornography involving a minor under the age of twelve engaging in sexually explicit conduct.
On February 22, 2017, Harms pleaded guilty to possessing child pornography. In particular, he admitted he had downloaded child pornography from the Internet onto one or more personal computing devices seized at his home by the FBI. He reserved his right to withdraw his guilty plea pending the result of a case before the U.S. Court of Appeals for the Tenth Circuit, United States v. Workman. That case involved the same multi-state FBI undercover operation that had ensnared Harms. On July 21, 2017, the Tenth Circuit ruled in favor of the United States in Workman.
On April 2, 2018, U.S. District Judge Vicki Miles-LaGrange sentenced Harms to 30 months in prison, to be followed by five years of supervised release. As part of the sentence, he must pay $3,000 in restitution to one of the victims identified in the child pornography he possessed. He was also ordered to forfeit the electronic devices involved in the offense.
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 the indictment and other public filings for further information.
Mustang Woman Sentenced to More Than Three Years in Prison for Fraud and Tax CrimesRead the Press Release
OKLAHOMA CITY – VANESSA L. POLLARD, of Mustang, Oklahoma, has been sentenced to 37 months in prison for wire fraud and signing a false federal income tax return in connection with a $1.3 million embezzlement, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On August 8, 2017, Pollard was charged by information with one count of wire fraud and one count of signing a false federal income tax return. According to the charges, Pollard worked for an insurance agency in Yukon, Oklahoma, as a bookkeeper from April 1999 until early August 2016. As part of her job, she reviewed monthly bank statements, made entries in an internal accounting system, and reconciled those records with a business checking account at Yukon National Bank. She was accused of writing unauthorized checks and making unauthorized interstate wire transfers from the business checking account to pay her personal credit card accounts. The information also alleged that she altered bank statements to conceal these payments from the agency’s management.
On August 30, 2017, Pollard pleaded guilty to transmitting $3,178 through interstate wires in January 2014 with the intent to defraud her employer, the insurance agency. She also pleaded guilty to signing a false tax return. In particular, she admitted that on May 13, 2013, she signed a personal federal tax return for the 2012 calendar year that she knew was false because it reported only $50,736 in total income when she knew her 2012 income was substantially higher.
Today U.S. District Judge Vicki Miles-LaGrange sentenced Pollard to 37 months in prison, to be followed by three years of supervised release. As part of the sentence, she must pay restitution of $1,239,822.95 to her former employer, $25,000 to Travelers Casualty Insurance, and $127,287 to the Internal Revenue Service. In a plea agreement, she agreed to forfeit property purchased with funds traceable to her embezzlement, including her house in Mustang, two trucks, a sports car, three motorcycles, a boat, two jet skis, and a retirement account.
This case is the result of an investigation by the Internal Revenue Service–Criminal Investigations and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Mark R. Stoneman.
Reference is made to the information and other public filings for further information.
Bank Fraud and Identity Theft Lead to 51-Month Prison SentenceRead the Press Release
OKLAHOMA CITY – Sean Michael Seney, 40, has been sentenced to 51 months in federal prison for bank fraud and identity theft, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to a ten-count indictment filed on May 18, 2017, Seney and others presented to banks fraudulent checks that had been altered using information taken from stolen mail. He was charged with four counts of presenting forged checks to various banks, one count of stealing the identity of an individual, one count of theft from the U.S. Mail, three counts of bank fraud, and one count of aggravated identity theft. This alleged criminal conduct took place in February 2015. Seney has been in the custody of the U.S. Marshals Service since June 19, 2017.
On August 3, 2017, Seney pleaded guilty to one count of bank fraud and one count of aggravated identity theft.
On March 12, 2018, Chief U.S. District Judge Joe Heaton sentenced Seney to a total of 51 months in the Federal Bureau of Prisons, to be followed by five years of supervised release. In particular, the court imposed a sentence of 27 months for bank fraud and a separate, consecutive sentence of 24 months for aggravated identity theft. Under federal law, a conviction for aggravated identity theft triggers a mandatory two-year prison term, to be served in addition to sentences for other crimes. The court further ordered that Seney’s federal prison time will be in addition to undischarged state prison terms in four separate cases prosecuted in Oklahoma County and Tulsa County. Seney was also ordered to pay $7,708.99 in restitution.
This case is the result of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Rozia McKinney-Foster prosecuted the case.
Reference is made to public filings for further information
Florida Man Sentenced to Four Years in Prison for Laundering Proceeds of Bank FraudRead the Press Release
OKLAHOMA CITY – Lyle Livesay, of Delray Beach, Florida, has been sentenced to 48 months in federal prison for laundering the proceeds of fraud against banks in Oklahoma and elsewhere, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to an indictment filed on May 2, 2017, Livesay owned and operated Beta Capital Group, LLC, of Boca Raton, Florida. In the fall of 2015, a resident of Yukon, Oklahoma, signed a consulting agreement with Beta Capital to obtain funding from various financial institutions. Under this agreement, Beta Capital would help the Yukon resident obtain bank loans in exchange for 30% of the loan proceeds, which the resident and another conspirator planned to use as financing to open a used car business.
The indictment alleged that to secure these loans, Livesay, working with others, submitted false loan applications in October 2015 to Pentagon Federal Credit Union, Navy Federal Credit Union, Allegiance Credit Union, MidFirst Bank, Oklahoma Employees Credit Union, Alliant Credit Union, and USAA Federal Savings Bank, all of which were federally insured. In particular, he misrepresented the purpose of the loans by claiming the Yukon resident would use the money to purchase cars from True Cars Express, a purported luxury car dealership associated with Livesay in Weston, Florida. To support these fraudulent applications, Livesay created and provided his conspirators with fake pay stubs that inflated the Yukon resident’s income, as well as purchase agreements from True Cars Express and certificates of titles for the vehicles that would supposedly be purchased with loan proceeds. Livesay and others also failed to disclose the existence of previous and pending loans on the applications they submitted. Livesay was involved in applying for more than half a million dollars in fraudulent loans. The indictment charged him with two counts of laundering portions of the loan proceeds through an account at TD Bank in the name of True Cars Express.
According to the indictment, when Livesay learned in early 2016 that the FBI was investigating, he told the Yukon resident to lie about the nature of the loans and not to disclose information requested in a federal subpoena.
Livesay was arrested in Florida in June 2017 and has been detained in the custody of the U.S. Marshals Service since then. On August 2, 2017, he pleaded guilty to laundering the proceeds of bank fraud. In particular, he admitted that on October 30, 2015, he transferred $87,000 from his True Cars Express account to an account in the name of Beta Capital, after that money had been obtained from Navy Federal Credit Union through fraud.
On March 7, 2018, U.S. District Judge Timothy D. DeGiusti sentenced Livesay to 48 months in prison, to be followed by three years of supervised release. The court also ordered him to pay a total of $415,000 in restitution to Pentagon Federal Credit Union, USAA Federal Savings Bank, Navy Federal Credit Union, Allegiance Credit Union, and MidFirst Bank. The court found that Livesay’s criminal conduct involved $555,000 in bank-fraud proceeds and that Livesay employed sophisticated means in fabricating loan documentation and moving funds between bank accounts he controlled.
This case is the result of an investigation by the FBI. Assistant U.S. Attorney Julia E. Barry prosecuted the case.
Reference is made to public filings for further information.
Five Who Purchased and Sold Children for Sex in Oklahoma City Ordered to Serve Combined 38 Years in Prison and Pay over $635,000 in Restitution to VictimsRead the Press Release
OKLAHOMA CITY – Five defendants convicted of child sex trafficking were ordered to serve a combined 38 years in federal prison and pay over $635,000 in restitution to victims, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to court records, in October 2014, Maurice M. Johnson engaged in sex trafficking of two girls (aged 14 and 15) and an adult female. As soon as the 14-year-old girl was recruited, Johnson instructed her to start calling phone numbers from the escort section of the Yellow Pages to find Tonya Gay Gum, whom he knew as "Carmen." At the time, Gum operated at least twenty phone numbers listed in the escort section of the Oklahoma City Yellow Pages. The 14-year-old victim made contact with Gum and sent her photographs of herself and the adult female. After that, Gum began arranging commercial sex transactions between her established customer base (or new customers who called her phone lines) and the females under Johnson’s control. Johnson drove the girls to hotels, residences, and commercial spaces, where the customers paid in cash for sex. After each commercial sex transaction, Gum met the girls at different locations in the Oklahoma City metropolitan area to receive the proceeds, which Gum and Johnson split. They did not give any money to the victims they trafficked.
A federal grand jury indicted Johnson on December 3, 2014. He pleaded guilty to child sex trafficking on January 30, 2015, before U.S. District Judge Robin J. Cauthron. In August 2017, he was sentenced to 240 months in prison and five years of supervised release.
Gum and three customers who purchased sex with the children were indicted by a federal grand jury on June 16, 2015. On November 19, 2015, Gum pleaded guilty to conspiracy to commit child sex trafficking, also before Judge Cauthron. In August 2017, she was sentenced to 48 months in federal prison and three years of supervised release.
The three customers—William M. Baker, Trung N. Duong, and Curtis A. Anthony—purchased sex with the children in October 2014. Before their convictions, their cases went before the Tenth Circuit Court of Appeals, which held in February 2017 that they could be convicted of child sex trafficking even if they did not know or recklessly disregard a child victim’s age, so long as they had a "reasonable opportunity to view" the child victim.
On May 9, 2017, Duong pleaded guilty to conspiracy to commit child sex trafficking. On November 2, 2017, Baker also pleaded guilty to conspiracy to commit child sex trafficking. In August 2017, Judge Cauthron sentenced each of them to 24 months in federal prison, followed by five years of supervised release.
Anthony went to trial and was convicted by a federal jury on June 19, 2017, of both conspiracy to commit child sex trafficking and child sex trafficking. He was sentenced in October 2017 to 120 months in federal prison, to be followed by five years of supervised release.
All of these defendants will be required to register as sex offenders for 25 years after released from custody.
At the time of the sentencings, the court deferred a determination of restitution. Today Judge Cauthron amended the judgments and ordered all five defendants to pay $635,247 in restitution to victims, with each defendant jointly and severally liable for the full amount immediately. "Although the innocence of these children cannot be restored, we are pleased that the Court is holding the defendants responsible for paying for the future care and treatment caused by their crimes," said Acting U.S. Attorney Troester.
This case is the result of an investigation by United States Department of Homeland Security and the Oklahoma Bureau of Narcotics and Dangerous Drugs. Assistant U.S. Attorneys McKenzie Anderson and David Petermann prosecuted the case.
Edmond Woman Sentenced to 37 Months in Prison for Embezzling over $450,000 and Filing a False Tax ReturnRead the Press Release
OKLAHOMA CITY – Kay Ann Locke, of Edmond, Oklahoma, has been sentenced to 37 months in federal prison for stealing nearly half a million dollars from her employer and filing a false federal tax return, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to charges filed on June 14, 2017, Locke worked as a bookkeeper at Delta Promotions Team Corporation in Oklahoma City from 2005 until April 2016. In 2011, she was instructed to close a company credit card. She kept the credit card open, however, and used it and another company credit card for personal purchases and cash advances totaling approximately $454,824.69. She then committed wire fraud by using company funds to pay these credit card bills.
Locke was also charged with filing a false 2015 personal federal income tax return. That return reported less than $30,000 of total income. She knew when she signed the return that her income was substantially higher based on the money she had embezzled from her employer.
Locke pleaded guilty to both charges on July 27, 2017.
Today U.S. District Judge David L. Russell sentenced Locke to 37 months in prison, to be followed by three years of supervised release. The court also ordered her to pay $552,667.64 in restitution, which will be paid first to her former employer and then to the IRS.
This case is the result of an investigation by the Oklahoma City Economic and Identity Crimes Task Force, which includes 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. Assistant U.S. Attorney Chris M. Stephens prosecuted the case.
California Man Convicted of Directing Cyber-Attack Against Oklahoma BusinessRead the Press Release
Oklahoma City – DAVID CHESLEY GOODYEAR, 44, of El Segundo, California, was convicted today by a federal jury on one count of directing distributed-denial-of-service (DDoS) cyber-attacks against two websites owned by Oklahoma telescope retailer Astronomics in August 2016, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
In distributed-denial-of-service (DDoS) cyber-attacks, the perpetrator floods the victim computer with useless information from botnets (large clusters of connected devices infected with malware and controlled remotely) and prevents legitimate users from accessing the victim computer.
In August 2017, a federal grand jury charged Goodyear by indictment with attacking the websites of Astronomics, a family-owned telescope retailer located in Norman, Oklahoma.
Today, after hearing two days of trial, a jury returned a guilty verdict against Goodyear. Evidence at trial 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.
Evidence at trial showed 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 commenced that night and continued intermittently until the end of August 2016, when Goodyear was interviewed by law enforcement and admitted he was responsible for the attacks.
The jury deliberated for about an hour and a half before returning the guilty verdict. At sentencing, Goodyear faces up to ten years in federal prison, three years of supervised release, a $250,000.00 fine, and payment of restitution to the victim. His sentencing will be set by the court at a future date.
This conviction is the result of an investigation led by the Federal Bureau of Investigation, 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 McKenzie Anderson and William Farrior.
Ponca City Woman Pleads Guilty to Possessing RicinRead the Press Release
Oklahoma City, Oklahoma – DANIELLE DANA LAYMAN, 37, of Ponca City, Oklahoma, has pleaded guilty to possessing the toxin ricin, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to a complaint filed on July 1, 2017, Layman used craigslist to locate someone interested in a "10 day gig overseas." On May 9, 2017, she met in Ponca City with a person who responded to the craigslist post. According to the affidavit, Layman gave that person written instructions on traveling to Tel Aviv, Israel, and using ricin to poison a specific taxi driver in exchange for $4,000 plus expenses. The affidavit states that Layman also gave the person a baggie that she claimed contained the ricin to be used in the murder. Ricin is an extremely hazardous substance derived from castor beans.
On June 30, 2017, the FBI executed a search warrant at Layman’s residence in Ponca City and found castor beans in the kitchen. The complaint alleges agents also found a mortar and pestle with residue that could be remnants of ground castor beans, along with instructions on how to make ricin. Layman was arrested later that day.
On August 1, 2017, a grand jury indicted Layman on one count of using interstate communications with the intent to hire someone to commit murder. On October 3, a grand jury returned a superseding indictment that added one count of possessing ricin without the required registration.
Today Layman pleaded guilty to possessing ricin illegally. The government has agreed to dismiss the murder-for-hire count at sentencing.
As a result of today’s guilty plea, Layman faces a maximum sentence of five years in prison, three years of supervised release, and a fine of $250,000.
This case is the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Ashley L. Altshuler and David P. Petermann.
Reference is made to court records for further information.
Saudi Citizen Charged in Oklahoma with Concealing Attendance at Al Qaeda Training CampRead the Press Release
Oklahoma City, Oklahoma — Naif Abdulaziz M. Alfallaj, 34, a citizen of Saudi Arabia and a current resident of Weatherford, Oklahoma, has been arrested for 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.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, Acting 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.
Based on a criminal complaint signed in the Western District of Oklahoma and unsealed today, Alfallaj was taken into custody by the FBI without incident on Monday, February 5. A grand jury returned a three-count indictment against him today. He was arraigned this afternoon before U.S. Magistrate Judge Bernard M. Jones and is currently in the custody of the U.S. Marshals Service.
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.
The indictment returned today charges two counts of visa fraud. Count One alleges that from March 2012 to the present, Alfallaj possessed a visa obtained by fraud. Count Two alleges he used that visa in October 2016 to apply for lessons at a private flight school in Oklahoma. The third count in the indictment charges Alfallaj with making a false statement to the FBI during a terrorism investigation when he was interviewed and denied ever having associated with anyone from a foreign terrorist group.
"Protecting our national security is the highest priority of the Department of Justice," said Acting U.S. Attorney Troester. "I commend the outstanding efforts of the FBI’s Joint Terrorism Task Force for its collaborative and focused work in this investigation."
"This is an isolated incident from one individual based on historical data," said FBI Special Agent in Charge Kathryn Peterson. "Our investigation to date has not uncovered any indication that the potential threat extends beyond this particular individual. The FBI and our JTTF partners will always work to ensure the safety and security of residents throughout our state."
If convicted of visa fraud, Alfallaj faces up to ten years in prison on each count. He also faces up to eight years in prison for making a false statement involving international terrorism. Deportation proceedings are expected to commence at the conclusion of these criminal proceedings. Reference is made to the criminal complaint and the indictment for further information.
The public is reminded these charges are merely accusations and that Alfallaj is presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
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 United States 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. Attorneys Matt Dillon and Scott E. Williams of the Western District of Oklahoma and Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section are prosecuting the case.
Saudi Citizen Charged in Oklahoma with Concealing Attendance at Al Qaeda Training CampRead the Press Release
Naif Abdulaziz M. Alfallaj, 34, a citizen of Saudi Arabia and a current resident of Weatherford, Oklahoma, has been arrested for visa fraud, and making false statements to the FBI by, among other things, concealing his application to and attendance at an al Qaeda training camp in Afghanistan in late 2000.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, Acting 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.
Based on a criminal complaint signed in the Western District of Oklahoma and unsealed today, Alfallaj was taken into custody by the FBI without incident on February 5. A grand jury returned a three-count indictment against him today. He was arraigned this afternoon before U.S. Magistrate Judge Bernard M. Jones and is currently in the custody of the U.S. Marshals Service.
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.The indictment returned today charges two counts of visa fraud. Count One alleges that from March 2012 to the present, Alfallaj possessed a visa obtained by fraud. Count Two alleges he used that visa in October 2016 to apply for lessons at a private flight school in Oklahoma. The third count in the indictment charges Alfallaj with making a false statement to the FBI during a terrorism investigation when he was interviewed and denied ever having associated with anyone from a foreign terrorist group.
If convicted of visa fraud, Alfallaj faces up to ten years in prison on each count. He also faces up to eight years in prison for making a false statement involving international terrorism. Deportation proceedings are expected to commence at the conclusion of these criminal proceedings. Reference is made to the criminal complaint and the indictment for further information. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
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. Attorneys Matt Dillon and Scott E. Williams of the Western District of Oklahoma and Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section are prosecuting the case.
Oklahoma City Man Sentenced to 172 Months for Involvement in Heroin and Methamphetamine ConspiraciesRead the Press Release
Oklahoma City, Oklahoma – VICTOR QUIROS, a/k/a Jay Lozano, 26, a resident of Oklahoma City, has been sentenced to a prison term of 172 months, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
Quiros has been in federal custody since August 24, 2017, on federal drug charges. While executing a search warrant at his residence, law enforcement located heroin, currency, drug paraphernalia, and a Bushmaster Carbon 15 semi-automatic rifle with light, laser, and scope.
On August 23, 2017, Quiros pleaded guilty to a Superseding Information charging that on June 6, 2016, he distributed five or more grams of methamphetamine, also known as "ice." On August 24, he also pleaded guilty to Count 1 of an Indictment that charged him with conspiring to possess with intent to distribute 100 or more grams of a substance containing heroin from October 2016 to June 2017.
On February 1, 2018, Chief U.S. District Judge Joe Heaton sentenced Quiros to 172 months in prison, to be followed by four years of supervised release. The court also ordered Quiros to forfeit his semi-automatic rifle and $6,111 in currency.
Evidence at sentencing revealed that Quiros had two runners who delivered heroin on his behalf, as well as several heroin customers who purchased heroin for personal use and further distribution. The Court found that Quiros was a leader of a criminal activity that involved five or more participants. The evidence also showed that Quiros maintained a premises for the purpose of manufacturing or distributing heroin.
This case is the result of an investigation by the Federal Bureau of Investigation and the Oklahoma City Police Department. Assistant U.S. Attorneys Nicholas J. Patterson, Virginia L. Hines, and Kerry Blackburn prosecuted the case.
Oil and Gas Repairman Pleads Guilty to over $400,000 in Fraudulent InvoicesRead the Press Release
Oklahoma City, Oklahoma – LUIS ENRIQUE DAMAZO, also known as Luis Enrique Cassinelli, 54, of Oklahoma City, Oklahoma, has pleaded guilty to defrauding a Texas company of more than $400,000 through fraudulent invoices, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to charges filed on December 29, 2017, Damazo was employed as a repair technician by Dexter Field Services LP, a company headquartered in Austin, Texas. Dexter Field Services provided leak detection, environmental monitoring, and consulting services to industrial clients in the energy sector. Damazo’s job was to repair toxic vapor analyzers used to detect leaks at oil and gas refineries, which involved ordering replacement parts. From November 2009 through October 2015, he is alleged to have secretly operated a business known as BC Environmental. According to the charges, he used that business to prepare fictitious order forms and invoices showing purchases purportedly made on behalf of Dexter Field Services for equipment, replacement parts, and tools. He is charged with having received more than $400,000 from Dexter Field Services as a result of these fraudulent documents. He allegedly caused these checks to be deposited in a BC Environmental bank account and used the money for his personal benefit.
Today Damazo admitted these allegations and entered a guilty plea to mail fraud before U.S. District Judge Stephen P. Friot. As a result, he could be imprisoned for a maximum of twenty years, to be followed by three years of supervised release. He could also be fined up to $250,000 and will be subject to mandatory restitution. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Jessica L. Perry and William E. Farrior are prosecuting the case.
Reference is made to court filings for further information.
Dallas Woman Sentenced to 14 Months in Prison for Disaster FraudRead the Press Release
Oklahoma City, Oklahoma – DOROTHY D. BARNEY, 58, of Dallas, Texas, has been sentenced to 14 months in federal prison for fraud in connection with federal disaster relief, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On May 20, 2013, a tornado caused significant damage in Moore, Oklahoma. According to an indictment filed on December 6, 2016, Barney applied for disaster aid from the Federal Emergency Management Agency ("FEMA") relating to the tornado in early June 2013. Rather than using her own name, she used the name, date of birth, and Social Security number of a person with the initials C.W. The application claimed damage to an apartment at 854 S.W. 10th Street in Moore. There was no apartment at that address, however. Furthermore, C.W. had not given Barney permission to submit an application for disaster aid and did not live in Moore.
On August 11, 2017, Barney pleaded guilty and admitted she had used a materially false document to request disaster aid from FEMA.
Today U.S. District Judge Stephen P. Friot sentenced Barney to 14 months in prison, to be followed by five years of supervised release. She was also ordered to pay $14,974.83 in restitution to FEMA.
This case is the result of an investigation by the Department of Homeland Security–Office of Inspector General and the United States Secret Service. Assistant U.S. Attorney Amanda Maxfield Green prosecuted the case.
Reference is made to court filings for further information.
Three Former Tellers at Elk City Bank Sentenced to Prison for $427,000 EmbezzlementRead the Press Release
Oklahoma City, Oklahoma – BREANNA LASHEA VINSON, 26, of Elk City, Oklahoma; SHANQUAIE STEVENSON, 27, of Weatherford, Oklahoma; and KAYLA RENE JACKSON, 27, of Elk City were sentenced yesterday to federal prison for conspiracy to embezzle funds from a federally insured bank, in connection with a $427,632.90 embezzlement from Great Plains National Bank ("GPNB") in Elk City, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On August 17, 2017, Vinson, Stevenson, and Jackson pleaded guilty to separate one-count Informations charging them with conspiracy to embezzle funds from mid-2014 to 2016 at GPNB in Elk City. Vinson, Stevenson, and Jackson were GPNB tellers who had access to the bank’s cash vault. At their plea hearings, the defendants admitted that they routinely stole cash from GPNB’s vault or teller drawers, and they created false vault balancing sheets to conceal the missing cash. In October 2016, GPNB officials discovered that the vault and a teller drawer were missing $427,632.90. Jackson stopped working at GPNB in April 2016; Vinson and Stevenson were still employees of the bank when the cash shortage was discovered.
Yesterday, United States District Judge Vicki Miles-LaGrange sentenced Vinson and Stevenson each to 18 months in federal prison, followed by two years of supervised release. Judge Miles-LaGrange sentenced Jackson to one year and one day in federal prison, followed by two years of supervised release. In addition, the defendants were ordered to pay restitution to GPNB and an insurance company. Vinson was ordered to pay $317,432.90 in restitution, and Stevenson was ordered to pay $247,432.90 in restitution. Jackson was ordered to pay $157,432.90 in restitution. Judge Miles-LaGrange ordered $147,432.90 of each defendant’s restitution amount to be joint and several with the other defendants.
This case was the result of an investigation by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation—Office of Inspector General. Assistant U.S. Attorney Chris M. Stephens prosecuted the case.
Federal Prison Inmate Found Guilty of Possessing Two Metal ShanksRead the Press Release
Oklahoma City, Oklahoma – DALE GOLDEN, 43, a former inmate of the Federal Correctional Institution in El Reno, Oklahoma, has been found guilty by a federal jury of possessing contraband in prison, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to charges filed on September 20, 2017, Golden possessed prohibited objects while incarcerated at the El Reno prison. In particular, he possessed two metal shanks, objects that were intended to be used as weapons. Evidence at trial indicated a prison official discovered Golden sharpening the shanks in a prison metal detail shop. According to the evidence, the shanks had fallen on the floor near Golden and were hot from the metal-working process.
Today a jury found Golden guilty after listening to one day of testimony and deliberating for approximately three-and-a-half hours.
Sentencing will take place in approximately ninety days. As a result of this conviction, Golden could face five years in prison, three years of supervised release at the end of his prison term, and a $250,000 fine.
This case is the result of an investigation by the Federal Bureau of Investigation and the Federal Bureau of Prisons’ Special Investigative Services—FCI El Reno. Assistant U.S. Attorneys Nicholas J. Patterson and Ashley Altshuler prosecuted the case.
Yukon Woman Sentenced to 36 Months in Prison for Stealing over $450,000 from Union’s Welfare FundRead the Press Release
Oklahoma City, Oklahoma – SUSAN MICHELLE TYSON, 51, of Yukon, Oklahoma, has been sentenced to 36 months in federal prison for stealing $467,352.43 from the Oklahoma Operating Engineers Welfare Plan, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to charges filed on June 12, 2017, Tyson worked as a bookkeeper in Oklahoma City for Zenith American Solutions, Inc., a company that managed assets owned by the Oklahoma Operating Engineers Welfare Plan. This Plan provided health and welfare benefits to participants whose employers contributed money under collective bargaining agreements with Local Union 627 of the International Union of Operating Engineers. Between July 2014 and January 2017, Tyson used her position to make 33 transfers, totaling $467,352.43, from the Plan’s bank account to her personal bank accounts. She also submitted duplicate invoices from Plan vendors SavRX and CVS CareMark to hide her fraud.
Tyson pleaded guilty to these charges on June 26, 2017.
Today Chief U.S. District Judge Joe Heaton sentenced Tyson to 36 months in prison, to be followed by three years of supervised release. Tyson was also order to pay full restitution. At today’s hearing, the court noted that Tyson’s fraud against the Plan was similar to a prior embezzlement case against her, which resulted in a 2000 conviction in Oklahoma City federal court. The court also considered the fact that Tyson stole from a third employer, which came to light during the 2000 investigation. Furthermore, the court noted that her dishonest behavior when interacting with the U.S. Probation Office in this case, which resulted in her incarceration pending sentencing, demonstrated her lack of respect for the law.
This case is the result of an investigation by the Oklahoma City Economic and Identity Crimes Task Force, which includes the United States Secret Service, the Federal Bureau of Investigation, IRS–Criminal Investigations, Homeland Security Investigations, U.S. Postal Inspection Service, Oklahoma Highway Patrol, the Oklahoma City Police Department, the Edmond Police Department, the Moore Police Department, and the Norman Police Department. Assistant U.S. Attorneys Brandon Hale and William E. Farrior prosecuted the case.
Sulphur Man Charged with over $4 Million in Fraudulent Oil and Gas InvoicesRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has charged JUSTIN LANE FOUST, 41, of Sulphur, Oklahoma, with defrauding Chesapeake Energy of more than $4 million through fraudulent invoices, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma.
According to an 11-count indictment unsealed this afternoon, 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 alleges that Chesapeake Operating contracted with Platinum Express primarily to transport waste water to disposal facilities in western Oklahoma.
Foust is charged with defrauding Chesapeake Operating by causing Platinum Express to submit false invoices for services it did not perform. In particular, the indictment alleges he created fraudulent work tickets for steam cleaning, dirt berm work, plating trucks, hauling rock, repairing fence, supplying sand separators, and other services. He allegedly 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. According to the indictment, he either forged or electronically copied and pasted the signature and employee identification number of certain Chesapeake Operating employees to ensure that 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.
The indictment alleges Foust submitted over 1,100 fraudulent invoices, which generated over $4.3 million in Chesapeake Operating payments to which Platinum Express was not entitled.
In addition to eight counts of wire fraud, Foust is charged with two counts of aggravated identity theft and 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 fraud.
If convicted, Foust could be imprisoned for a maximum of twenty years on each of the eight wire-fraud counts, to be followed by three years of supervised release. Each of the two counts of aggravated identity theft would carry a mandatory minimum sentence of two years in prison, followed by a year of supervised release. The money-laundering count could lead to a sentence of ten years in prison, followed by three years of supervised release. He could also be fined up to $250,000 on each count and would be subject to mandatory restitution.
The public is reminded these charges are merely accusations and that Foust is presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
This case is the result of an investigation by the Oklahoma City Economic and Identity Crimes Task Force, which is composed of the United State Secret Service, the Federal Bureau of Investigation, IRS–Criminal Investigations, Homeland Security Investigations, U.S. Postal Inspection Service, Oklahoma Highway Patrol, the Oklahoma City Police Department, the Edmond Police Department, the Moore Police Department, and the Norman Police Department. Assistant U.S. Attorney Jessica L. Perry is prosecuting the case.
Reference is made to court filings for further information.
Mark Yancey Steps Down as United States AttorneyRead the Press Release
Oklahoma City, Oklahoma – Mark A. Yancey has accepted a Department of Justice position at the National Advocacy Center in Columbia, South Carolina, and has therefore announced his resignation as United States Attorney for the Western District of Oklahoma. First Assistant U.S. Attorney Robert J. Troester will become Acting U.S. Attorney at midnight on Saturday, January 20.
U.S. Attorney Yancey joined the office in 1991, after having served as a Special Agent with the FBI. He has prosecuted many cases and served in many roles, including as First Assistant U.S. Attorney and Criminal Chief under U.S. Attorney Sanford C. Coats from January 2010 until January 2016. He became Acting U.S. Attorney upon Mr. Coats’s resignation and was later appointed U.S. Attorney by the Attorney General and then by the district judges of the Western District of Oklahoma. During his tenure as U.S. Attorney, he has served on three sub-committees of the Attorney General’s Advisory Counsel—those concerning national security, civil rights, and Native American issues.
On January 22, Mr. Yancey will take up the position of Assistant Director at the National Advocacy Center, where he will coordinate training for federal prosecutors in national security and other criminal cases.
Upon Mr. Yancey’s resignation, First Assistant U.S. Attorney Troester will become Acting U.S. Attorney by operation of law under the Vacancies Reform Act of 1998. Like U.S. Attorney Yancey, First Assistant Troester has served the Department of Justice for many years. He became an Assistant U.S. Attorney in September 1995, after several years in private practice in Oklahoma City. As an Assistant United States Attorney, Troester has held various supervisory positions, including Civil Chief, Executive Assistant U.S. Attorney, First Assistant U.S. Attorney, and Acting U.S. Attorney on two prior occasions. Troester has also served on detail assignments within the Department of Justice in Washington D.C. as a Deputy Director in the Executive Office for United States Attorneys and, since April 2017, he has served as an Associate Deputy Attorney General and Senior Counsel to Deputy Attorney General Rod Rosenstein.
"I would like to thank Mr. Yancey for his two years of service in the challenging position of U.S. Attorney," said Mr. Troester. "He has demonstrated steady leadership for the talented prosecutors and civil litigators who are working to protect fellow citizens from crime and to further the interests of the United States. The task of continuing that leadership humbles me, but I look forward to working with federal, state, and tribal authorities for the common good, particularly on this Administration’s efforts to reduce violent crime."
Edmond Sports Marketing Agent Sentenced to 15 Months for Tax Fraud Through Non-ProfitRead the Press Release
Oklahoma City, Oklahoma – WILLIAM G. HORN, of Edmond, Oklahoma, was sentenced today to fifteen months in federal prison for making false statements on federal tax returns for The Tommie Harris Foundation, a non-profit corporation, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to charges filed on September 6, 2017, Horn was a sports marketing agent who operated charitable organizations associated with NFL and NBA athletes. He registered one of these, The Tommie Harris Foundation, with the Oklahoma Secretary of State in late 2006 and used his home as the Foundation’s principal office. Horn sought and received tax-exempt status from the IRS under Section 501(c)(3) of the Internal Revenue Code. He personally solicited donations for the Foundation, which held an annual celebrity golf event to raise money for those in need. He also managed the Foundation’s finances and filed its Forms 990, which are federal tax returns for tax-exempt organizations. According to the charges, Horn signed and filed Forms 990 for the Foundation for tax years 2007 through 2012. During those years, the Foundation was alleged to have reported total donations received of $1,840,495.00 and total distributions to other organizations of $705,699.00. The majority of the difference of $1,134,796.00 was reported as "functional expenses."
Horn was charged with making false statements on Forms 990 for the 2011 and 2012 tax years. He reported falsely on both returns that he received no compensation from the Foundation. According to the charges, he actually diverted approximately $136,620.06 to personal bank accounts in 2011 and made approximately $39,205.42 in purchases for personal use on a Foundation credit card. In 2012, according to the charges, he diverted approximately $129,451.04 to himself and made approximately $41,126.37 in purchases for personal use on a Foundation credit card. He also allegedly made false statements on these returns about having distributed tens of thousands of dollars to other charities—Straight From the Heart Foundation, Mercy Church West Coast, and Opportunity Knox—when in fact he controlled those charities and spent the money on himself.
Horn pleaded guilty to these charges on September 20, 2017.
Today U.S. District Judge David L. Russell sentenced Horn to fifteen months in prison, to be followed by three years of supervised release. At today’s hearing, the court considered that Horn’s concealment of funds from the IRS included sending money to and receiving money from a church in California. The court also heard that he used Tommie Harris Foundation credit cards to fund expenses that benefitted himself and his family, including luxury car payments, restaurants, vacations, living expenses, air travel, and a home in California. Horn will be required to pay restitution to The Boys & Girls Clubs of America in the amount of $697,842.69, which accounts for his diversion of funds from the Foundation’s charitable giving.
This case is the result of an investigation by IRS-Criminal Investigations and the FBI. Assistant U.S. Attorney Charles W. Brown prosecuted the case.
Lawton Man Sentenced to More Than 32 Years for Violent CrimesRead the Press Release
Oklahoma City, Oklahoma – On January 5, 2018, JACKIE DUNCAN, 30, of Lawton, Oklahoma, was sentenced to 386 months in federal prison for his role in a robbery conspiracy, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
A superseding indictment alleged that Duncan agreed with other members of the 107 Hoover Crips gang in Lawton, Oklahoma, to commit armed robbery. It also charged him with various gun and drug offenses. Among other things, the superseding indictment alleged that Duncan was involved in displaying a pistol after breaking into an apartment, where another member of the gang beat a resident in the head with a metal pipe.
A federal jury found Duncan guilty of one count of conspiracy to interfere with commerce by robbery, one count of being a felon in possession of a firearm, two counts of interference with commerce by robbery, and two counts of brandishing a firearm in furtherance of a crime of violence. The jury found him not guilty of one count of possession of a controlled substance with intent to distribute and one count of possessing and brandishing a firearm in furtherance of a drug trafficking crime.
On January 5, 2018, United States District Court Judge Vicki Miles-LaGrange sentenced Duncan to 386 months in federal prison, to be followed by five years of supervised release.
This case is the result of an investigation by the Lawton Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Comanche County District Attorney’s Office. Assistant U.S. Attorneys Edward J. Kumiega, Kerry Blackburn, and Mark Stoneman prosecuted the case.
Former Oklahoma Beef Council Employee Sentenced to 57 Months for $2.68 Million Embezzlement and Signing a False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – MELISSA DAY MORTON, of Edmond, Oklahoma, was sentenced today to 57 months in federal prison for bank fraud and signing a false federal income tax return, in connection with a $2.68 million embezzlement from the Oklahoma Beef Council, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On May 24, 2017, Morton pleaded guilty to an Information charging her with one count of bank fraud and one count of filing a false federal income tax return. From October 1995 until late July 2016, Morton worked as the Accounting and Compliance Manager at the Oklahoma Beef Council in Oklahoma City. As part of her job, Morton prepared checks, paid invoices, and generated financial statements for audits. Morton pleaded guilty to preparing an unauthorized company check, in the amount of $5,652.25, made payable to herself in February 2016. At the plea hearing, Morton admitted she forged the signature of the Beef Council’s executive director on the check and later presented that check for payment against the Beef Council’s bank account at a local bank. She further admitted she embezzled funds from her former employer from around 2009 through 2016 and stipulated that the total loss to the Beef Council was $2,681,400.73.
At the plea hearing in May 2017, Morton also pleaded guilty to signing a false tax return. She admitted that on October 12, 2015, she signed a personal federal tax return for the 2014 calendar year that she knew was false because it reported only $183,545 in total income. At the plea hearing, Morton admitted she omitted on the 2014 return more than $388,000 of embezzled income for that year from the Beef Council.
Today, United States District Judge Vicki Miles-LaGrange sentenced Morton to 57 months in federal prison, followed by five years of supervised release. In addition, Morton was ordered to pay restitution of $2,317,526.32 to the Beef Council and $110,000 to an insurance company that provided coverage to the Beef Council. Judge Miles-LaGrange also ordered Morton to pay $617,044 in restitution to the Internal Revenue Service for taxes owed from not reporting the embezzlement income on her federal tax returns for calendar years 2010 through 2015. Before sentencing, Morton had made restitution payments totaling $253,874.41 to the Beef Council. Morton must report to the Federal Bureau of Prisons on February 5, 2018.
This case was the result of an investigation by the United States Secret Service, the Internal Revenue Service—Criminal Investigations, and the United States Department of Agriculture—Office of Inspector General. Assistant U.S. Attorney Chris M. Stephens prosecuted the case.
Owners of Oklahoma City Diabetic Supply Company Charged with Medicaid FraudRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has charged EUNJA VASQUEZ, 55, and LAWRENCE VASQUEZ, 61, of Edmond, Oklahoma, with Medicaid fraud, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma, and Mike Hunter, Oklahoma Attorney General.
According to the 115-count indictment, the Vasquezes used their own Oklahoma City company, Mercy Diabetic Supply, Inc., to defraud the Oklahoma Health Care Authority. Mercy Diabetic Supply is not affiliated with Mercy Health System. The indictment alleges that the Vasquezes submitted Medicaid claims for insulin pump supplies in the names of 29 Medicaid beneficiaries who did not, in fact, use insulin pumps in the treatment of their diabetes and whose physicians had not prescribed the use of insulin pumps for them. According to the indictment, some had not been diagnosed with diabetes. It is further alleged that Eunja Vasquez falsified medical forms and forged physician signatures as part of the scheme.
Attorney General Hunter’s Medicaid Fraud Control Unit investigated the case and brought the charges to the U.S. Attorney for the Western District of Oklahoma. The Attorney General said his office is dedicated to working with federal prosecutors to pursue individuals and companies committing fraud in the state.
"I commend the attorneys and investigators in the Medicaid Fraud Control Unit, who worked tirelessly on this case," Attorney General Hunter said. "Our office remains committed to fighting fraud, waste, and abuse of the state’s Medicaid program that helps vulnerable Oklahomans. I appreciate U.S. Attorney Mark Yancey and his team for taking this case."
U.S. Attorney Yancey said his office will continue its partnership with state agencies and state law enforcement to prevent fraud and corruption.
If convicted, the Vasquezes could each be imprisoned for a maximum of ten years on each count, to be followed by three years of supervised release. They could also be fined up to $250,000 on each count and would be subject to mandatory restitution.
The public is reminded these charges are merely accusations and that the Vasquezes are presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
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.
Oklahoma City Man Charged with Seven Armed RobberiesRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has charged DEVON BOWMAN, 22, of Oklahoma City, with a series of armed robberies of Oklahoma City businesses in April and May of 2017, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to a 16-count indictment filed today, Bowman, also known as Marcus Hunter, used a gun to rob four convenience stores, two Family Dollar Stores, and a Fast Cash Pawn store over the course of six weeks. At the convenience stores and the Family Dollar Stores, he is alleged to have demanded and received cash and cigarettes. During all but one of these robberies, he allegedly discharged a firearm. At Fast Cash Pawn, he allegedly discharged a firearm and then demanded and received firearms and jewelry. Because of Fast Cash Pawn’s federal firearms license, a separate count charges Bowman with theft of 23 firearms from the inventory of a federal firearms licensee. He is also charged with possessing a firearm after having been convicted of a felony.
Each of the seven robbery counts carries a maximum sentence of 20 years in prison and three years of supervised release. Each of the six counts of discharging a firearm during a crime of violence carries a sentence of ten years to life in prison and five years of supervised release; a second conviction under this statute, however, carries a minimum sentence of 25 years in prison. Bowman would be subject to a sentence of seven years to life for the one count of brandishing a firearm during a crime of violence. The allegations that he stole firearms from a licensed dealer and that he possessed a firearm after a felony conviction carry maximum sentences of ten years in prison and three years of supervised release. If convicted on all counts, Bowman would be subject to a mandatory minimum sentence of 157 years in prison. He could also be fined up to $250,000 on each count.
The public is reminded these charges are merely accusations and that Bowman is presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys David McCrary and Jacquelyn M. Hutzell are prosecuting the case. Reference is made to court filings for further information.
Former Director of OSU’s Multispectral Laboratories Charged with Multi-Million-Dollar FraudRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has charged DANIEL WEBSTER "WEB" KEOGH, 47, and DANIELLE KEOGH, 36, both of Edmond, Oklahoma, with fraud crimes against First Pryority Bank, the U.S. Department of Agriculture, Commuter Air Technology, Inc., and Oklahoma State University’s Multispectral Laboratories, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to the 23-count indictment, Web Keogh was Chief Executive Officer of both EMB Energy, Inc., and Triton Scientific, LLC. The first ten counts of the indictment concern a $3.2 million loan to Triton from First Pryority Bank, which has offices in Tulsa and Pryor, Oklahoma. The indictment explains that in the fall of 2010, Web Keogh signed an agreement between EMB Energy and Lawrence Livermore National Security, LLC ("Livermore") concerning the development of new battery technology for electric utilities. Under the agreement, EMB Energy agreed to invest approximately $22 million in a collaborative project with Livermore. If Livermore and EMB Energy succeeded in building a small electromechanical battery prototype and scaling it to larger sizes, EMB Energy could own and commercialize a utility-sized battery.
To pursue this opportunity, Web Keogh, along with his wife Danielle Keogh, who was EMB Energy’s Senior Vice President of Finance, sought a $3.2 million loan to Triton from First Pryority Bank, secured by a battery to be purchased for $4 million. Several of the Keoghs’ statements to the bank, however, are alleged to have been false. In 2010, Web Keogh is alleged to have supported the loan application by claiming Triton would use the money to "purchase and install a significant piece of capital equipment for electrical storage." He also allegedly stated the loan would be for "equipment purchase only" and would support a project at Triton’s facility in Chilocco, Oklahoma. He later allegedly told the bank falsely that Triton had acquired the battery and substantially completed development of the battery. According to the indictment, Triton was engaging only in research and development—no battery prototype had been built, and no battery existed to serve as collateral. Furthermore, the indictment states battery research was to take place in California rather than at Chilocco. According to the indictment, identifying Chilocco as the location of the project qualified Triton for a loan guarantee by the U.S. Department of Agriculture’s Rural Development Administration, which supports the development of infrastructure in rural and economically depressed areas.
The indictment alleges Web and Danielle Keogh both made false statements in early 2011 when they gave the bank false invoices from EMB Energy to Triton to support the loan proceeds. In particular, these invoices made allegedly false references to a 2.0 MWh battery system, component parts, the shipment of items to Ponca City, Oklahoma, a purchase agreement between Triton and EMB Energy, and the battery’s contract value. The indictment states that EMB Energy, Triton, and Livermore never built a working electromechanical battery and that when Triton defaulted on the loan in December 2012, it owed more than $3 million to First Pryority and the U.S. Department of Agriculture. Web Keogh is charged by himself with making a false statement in a matter within the jurisdiction of the U.S. Department of Agriculture when he stated in loan closing documents that funds would be used to purchase machinery and equipment, rather than research and development.
Count 11 concerns a $2 million line of credit Triton had secured at First Pryority. The indictment alleges that Danielle Keogh made a false statement to First Pryority in May 2012, when she sought to renew this credit line. According to the indictment, she provided a financial statement and tax return that listed the battery as a fixed asset worth $4,172,979.64, when she knew Triton did not own a $4 million working battery and the battery concept was still in a pre-prototype stage of assembly.
Counts 12 through 23 concern the Keoghs’ dealings with Oklahoma State University—University Multispectral Laboratories, LLC (“OSU-UML”), a non-profit research center wholly owned by OSU that served the Department of Defense and other entities. In 2008, Triton became OSU-UML’s managing entity. Web Keogh served as OSU-UML’s Laboratory Director until he resigned in November 2012. Danielle Keogh is alleged to have represented herself as OSU-UML’s Director of Finance. The indictment explains that from 2010 to late 2012, OSU-UML served as prime contractor for projects by the United States Special Operations Command ("SOCOM"), including work by Commuter Air Technology, Inc. ("CAT") in war zones. The federal government paid OSU-UML for CAT’s work, and, according to the indictment, OSU-UML was supposed to forward the bulk of these funds to CAT.
According to the indictment, Web Keogh failed to use a substantial portion of the government’s payments to satisfy CAT’s subcontractor invoices. In particular, he allegedly transferred $1.675 million of OSU-UML funds in September 2012 to bank accounts in New York and Ohio based on instructions from an attorney at a Washington, D.C., law firm. The attorney allegedly promised these deposits would generate millions of dollars of "donations" for OSU-UML. The indictment states neither the Executive Director nor the Board of OSU-UML approved these transfers and that OSU-UML never recovered the funds. According to the indictment, Web and Danielle Keogh also directed OSU-UML staff to use money that should have gone to CAT for payments unrelated to SOCOM’s work, including hundreds of thousands of dollars related to EMB Energy’s battery project and more than $100,000 to support Danielle Keogh’s boutique dress shop, Liberté, in Oklahoma City.
If convicted of the bank-fraud conspiracy or making a false statement to a bank, the defendants could be imprisoned for a maximum of thirty years on each count, to be followed by up to five years of supervised release. Web Keogh could be sentenced to up to five years in prison and three years of supervised release for making a false statement in a matter within the jurisdiction of the U.S. Department of Agriculture. If convicted of the wire-fraud conspiracy relating to OSU-UML, the Keoghs could be imprisoned for a maximum of twenty years, to be followed by up to three years of supervised release. Web Keogh is charged with eight counts of wire fraud relating to OSU-UML; Danielle Keogh is also charged in three of these counts. Each count of wire fraud would carry the same penalty as the wire-fraud conspiracy. Web Keogh is also charged separately with three counts of embezzling from OSU-UML as an organization receiving federal funds, which would carry a maximum penalty of ten years in prison and three years of supervised release. Both defendants could be fined up to $1,000,000 on each of the banking crimes and up to $250,000 on each of the remaining counts. If convicted, they would also be required to pay restitution to victims.
The public is reminded these charges are merely accusations and that Web and Danielle Keogh are presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
This case is the result of an investigation by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the U.S. Department of Agriculture—Office of Inspector General. Assistant U.S. Attorneys Chris M. Stephens and K. McKenzie Anderson are prosecuting the case. Reference is made to court filings for further information.
Oklahoma City Man Pleads Guilty to Attempting to Entice a 14-Year-OldRead the Press Release
Oklahoma City, Oklahoma – HARRY DEAN WHEELER, JR., 67, of Oklahoma City, pleaded guilty today to attempting to entice a minor to have sex, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to an affidavit in support of a criminal complaint, an undercover agent with the Oklahoma Bureau of Narcotics and Dangerous Drugs posted an advertisement on Craigslist on September 19, 2017, in which he claimed to be a boy looking for a "daddy" who would be "willing to teach me about sex." The affidavit explains that through the Craigslist email reply function, Wheeler used explicit sexual language to indicate he wanted to meet the boy for a sexual encounter. He also included three nude photos of himself. According to the affidavit, the undercover agent responded: "Wow, your [sic] hot and sound really cool. Just to get it out of the way, I’m 14, but I’m very mature for my age, that’s why I don’t mind older guys." The affidavit states Wheeler then replied by email: "We must keep it a secret as what we will be doing is not legal." Wheeler allegedly arranged to meet the person he thought was a 14-year-old boy in the parking lot of a business at 5501 North May Avenue in Oklahoma City, with the intention of driving him to his own residence. When Wheeler arrived at the parking lot and identified himself to the undercover agent as "daddy," federal agents arrested him.
The U.S. Attorney’s Office filed a criminal complaint against Wheeler on September 21, 2017. On November 8, 2017, a federal grand jury indicted him on one count of using a facility and means of interstate commerce to attempt to persuade, induce, and entice an individual he believed to be under the age of 18 to engage in sexual activity. This afternoon, Wheeler pleaded guilty to that offense before U.S. District Judge Timothy D. DeGiusti.
At sentencing, Wheeler faces a mandatory minimum sentence of ten years in prison. He could receive a maximum sentence of life in prison. He will serve at least 5 years and up to life on supervised release after incarceration and could be fined up to $250,000. He may also be required to pay a $5,000 special assessment. The court ordered Wheeler to remain in the custody of the U.S. Marshals Service until sentencing, which will take place in approximately 90 days.
This case is the result of an investigation by Homeland Security Investigations, part of the U.S. Department of Homeland Security, and the Oklahoma Bureau of Narcotics and Dangerous Drugs. Assistant U.S. Attorney Brandon Hale is prosecuting the case. Reference is made to court filings for further information.
Former State Senator Pleads Guilty to Child Sex TraffickingRead the Press Release
Oklahoma City, Oklahoma – RALPH ALLAN LEE SHORTEY, 35, of Oklahoma City, pleaded guilty today to child sex trafficking, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On September 5, 2017, a federal grand jury returned a four-count indictment against Shortey, who was an Oklahoma State Senator at the time of the alleged offenses. Counts 1 and 2 charged him with using a facility of interstate commerce on October 10 and 15, 2013, to transport child pornography. In particular, these child pornography counts alleged Shortey used his smartphone to send a video involving a prepubescent girl and videos involving young boys from his AOL email address to a Hotmail address and a Yahoo! address. Count 3 alleged Shortey produced child pornography by persuading a minor identified as John Doe to send him at least one image of Doe’s penis. This count alleged Shortey began communicating with Doe in February 2016 on Kik, a social media application, and that the production of child pornography took place between February 14, 2016, and March 8, 2017.
Count 4 charged Shortey with child sex trafficking for soliciting a minor to engage in a commercial sex act on March 8 and 9, 2017. According to the indictment, Doe advised Shortey via Kik on March 8 that he needed money for spring break. Shortey is alleged to have replied: "I don’t really have any legitimate things I need help with right now. Would you be interested in 'sexual' stuff?" The indictment stated that after Doe responded "yes," the Kik conversation included explicit references to sex acts. The indictment further alleged that just after midnight on March 9, Shortey drove Doe to a Super 8 Motel in Moore, Oklahoma, where Shortey rented a room with his credit card. Based on information provided by Doe’s father, officers of the Moore Police Department knocked on the motel room door at approximately 1:00 a.m. and allegedly discovered Doe with Shortey, whose backpack contained an open box of condoms.
This afternoon Shortey pleaded guilty to Count 4, the child-sex-trafficking count. In particular, he admitted to U.S. District Judge Timothy D. DeGiusti that he solicited Doe, who was a minor, to engage in a commercial sex act in and affecting interstate commerce, after having had a reasonable opportunity to observe Doe. The United States has agreed to dismiss the remaining three counts at the time of sentencing. At the conclusion of the hearing, the court ordered that Shortey be detained in the custody of the U.S. Marshals Service until sentencing, which will take place in approximately 90 days.
Shortey faces a mandatory minimum sentence of ten years in prison. He could receive a maximum sentence of life in prison. He will serve a term of supervised release after incarceration of at least 5 years and up to life and could be fined up to $250,000. He will also be required to pay restitution and a $5,000 special assessment.
This case is the result of an investigation by the Federal Bureau of Investigation 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 are prosecuting the case. Reference is made to court filings for further information.
Sisters Who Defrauded Postal Service Sentenced to Five and Four Years in Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – BIRDIE JO HOAKS, 47, and BECKY JO HOAKS, 47, both of Choctaw, Oklahoma, were sentenced today to 60 and 48 months respectively in federal prison for conspiring to steal U.S. postage stamps, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On May 18, 2017, the defendants, who are identical twins, were indicted on one count of conspiracy and one count each of theft of government property. The Indictment alleged that from June 2016 through February 2017, they opened personal checking accounts at various banks, using small cash deposits ranging from $5 to $200. Working together, they wrote dozens of bogus checks—i.e., checks backed by insufficient funds and checks written on closed accounts—at United States post offices and contract postal units throughout the Western District of Oklahoma to obtain thousands of U.S. postage stamps.
Both defendants pleaded guilty to conspiracy on June 27, 2017. Each agreed to pay $61,993.38 in restitution, mostly to the U.S. Postal Service.
Today U.S. District Judge David L. Russell sentenced Birdie Jo Hoaks to 60 months in prison, the statutory maximum. He sentenced Becky Jo Hoaks to 48 months in prison. Both women will serve three years of supervised release after their prison terms.
The sisters have extensive criminal histories of fraud spanning more than two decades and in jurisdictions from New York to California. In May 2007, for example, they were featured in a Chicago Tribune article entitled "The Incredible True-Life (mis)Adventures of the Hoaks Sisters: Deception, Confusion, Theft, Betrayal, Foot Surgery." And in July 2012, Birdie Jo Hoaks was the subject of a Dateline NBC investigative report. These are their first federal criminal convictions.
This case is the result of an investigation conducted by United States Postal Inspection Service. Assistant U.S. Attorney Amanda Maxfield Green prosecuted the case.
Federal Correctional Officer Pleads Guilty to Bribery and Wire-Fraud ConspiracyRead the Press Release
Oklahoma City, Oklahoma – CHARLES DANIEL LYNN, 34, of El Reno, Oklahoma, pleaded guilty today to accepting a bribe as a federal correctional officer and conspiring to commit wire fraud, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to an indictment filed on August 16, 2017, Lynn served as a correctional officer at Great Plains Correctional Facility in Hinton, Oklahoma, during the latter half of 2016. Operated by GEO Group, Great Plains is a low-security institution that contracts with the Bureau of Prisons to house approximately 1,871 federal inmates. Federal regulations prohibit certain contraband items in correctional institutions, including cell phones and electronic music players.
The indictment charges Lynn with conspiracy to commit honest-services wire fraud and also with accepting a bribe as a federal official. The indictment also charges ARMANDO TABARES, 30, of Misson, Texas, and JOSE TOMAS CASTILLO-GARZA, 39, an inmate at Great Plains, with conspiracy and bribery. In particular, the grand jury alleges that Lynn agreed to receive contraband items from Tabares, to smuggle these items into Great Plains, and to deliver them to Castillo-Garza, who is Tabares’s brother-in-law. The contraband items included cell phones, electronic music players, and other items. The indictment also alleges that Lynn escorted Castillo-Garza to various parts of Great Plains to distribute the contraband to other inmates. In exchange for Lynn’s services, Tabares and others paid Lynn through interstate wire transfers via Walmart Money Gram. The alleged conspiracy deprived the government of Lynn’s honest services as a prison employee.
Today Lynn pleaded guilty before Judge David L. Russell to one count of accepting a bribe and one count of conspiring to commit wire fraud. At sentencing, Lynn could be sentenced to up to fifteen years in prison and a fine of $250,000 for bribery. For the conspiracy, Lynn could be sentenced to up to twenty years in prison and a fine of $250,000. After any prison term, he could be required to serve up to three years on supervised release. Sentencing will take place in approximately 90 days.
Castillo-Garza pleaded guilty to conspiracy on November 7, 2017. He faces up to twenty years in prison, a $250,000 fine, and supervised release of three years. His sentencing will also take place in approximately 90 days.
Tabares is charged with conspiracy and with paying a bribe to a federal official. His trial is scheduled in January 2018.
This case is the result of an investigation by the FBI and the Department of Justice’s Office of Inspector General. Assistant U.S. Attorney K. McKenzie Anderson is prosecuting the case. Reference is made to court records for further information.
Oklahoma City Behavioral Health Counselor Charged with Medicaid FraudRead the Press Release
Oklahoma City, Oklahoma – On November 15, 2017, a federal grand jury charged SAMUEL OKERE, 61, of Oklahoma City, with Medicaid fraud, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma, and Mike Hunter, Oklahoma Attorney General. The indictment was unsealed today at Okere’s arraignment.
According to the 224-count indictment, Okere defrauded the Oklahoma Health Care Authority through false claims for behavioral health counseling while he was a licensed professional counselor and owner of New Life Counseling Services. In particular, the indictment alleges 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 or in the hospital. 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.
If convicted, Okere could be imprisoned for a maximum of ten years on each count, to be followed by three years of supervised release. He could also be fined up to $250,000 on each count and would be subject to mandatory restitution.
Attorney General Hunter stated that he appreciates U.S. Attorney Yancey for assisting his office on this case. U.S. Attorney Yancey said his office will continue its partnership with state agencies and state law enforcement to prevent fraud and corruption.
The public is reminded these charges are merely accusations and that Okere is presumed innocent unless proven guilty beyond a reasonable doubt.
This case is 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.
Department of Justice Awards over $500,000 to Four Oklahoma Cities to Hire Community Policing OfficersRead the Press Release
The Department of Justice has awarded more than $500,000 to four Oklahoma cities to enhance law enforcement, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma, and Brian J. Kuester, U.S. Attorney for the Eastern District of Oklahoma.
The recipients are:
Dewar Police Department: $69,208
Lindsay Police Department: $99,428
City of Sallisaw: $95,569
Shawnee Police Department: $250,000
These funds will enable Dewar, Lindsay, and Sallisaw to hire one additional police officer each. Shawnee will be able to hire two additional officers. Dewar and Sallisaw are in the Eastern District of Oklahoma, while Lindsay and Shawnee are in the Western District of Oklahoma.
These grants are part of more than $98 million awarded to 179 law enforcement agencies across the United States through the Department of Justice’s Office of Community Oriented Policing Services, also known as "COPS." These funds will support hiring 802 additional full-time law enforcement officers.
The Department of Justice’s national press release on these COPS grants is available at https://www.justice.gov/opa/pr/attorney-general-sessions-announces-98-million-hire-community-policing-officers.
Canadian County Jailer Pleads Guilty to Violating Civil Rights of Pretrial DetaineeRead the Press Release
Oklahoma City, Oklahoma – JASON BARBER, 41, of Bethany, Oklahoma, pleaded guilty today to depriving a pretrial detainee of his civil rights by using unreasonable force, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to charges filed on October 31, 2017, Barber was a ranking Lieutenant and employed as a Correctional Officer during 2014 at the Canadian County Jail in El Reno, Oklahoma. On December 23, 2014, L.T. was an individual held at the jail after an arrest but before conviction of a crime. The charges allege that Barber willfully deprived L.T. of his constitutional right to due process of law when he struck L.T. while participating in a disciplinary hearing concerning L.T. Because Barber was acting under color of law, his unreasonable use of force violated federal criminal law. In the absence of bodily injury, the offense is a misdemeanor, punishable by up to one year in prison.
Today Barber pleaded guilty before U.S. Magistrate Judge Shon T. Erwin. Barber and the government have agreed he should receive a sentence of probation. He could also be fined up to $100,000. He will be sentenced in approximately 90 days.
This case is the result of an investigation by the FBI and the Investigations Division of the Canadian County Sheriff’s Office. Assistant U.S. Attorney Julia E. Barry is prosecuting the case. Reference is made to court records for further information.
Two Oklahoma City Metro Men Plead Guilty to Interstate-Theft CrimesRead the Press Release
Oklahoma City, Oklahoma – DENNIS LEE, 44, of Nichols Hills, pled guilty today to possession of stolen property that crossed a state boundary and to being a felon in possession of a firearm, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. U.S. Attorney Yancey also announced that KENNETH DALE SMITH, 53, of Oklahoma City, has pled guilty to misprision of a felony in connection with interstate theft.
According to Count 1 of a five-count indictment filed on June 20, 2017, Lee and Smith were members of a conspiracy that stole motor vehicles and other items from Texas, Kansas, Missouri, and Nebraska. Conspirators transported the stolen property to the Oklahoma City area, where they "fenced" it for profit. The indictment alleges that some of the property was stored at Richardson Homes, LLC, on South Portland Avenue in Oklahoma City. Counts 2 through 4 charge Lee with possession of particular stolen vehicles during the summer of 2016. Smith is also charged in Count 4 with possessing a stolen vehicle. According to the indictment, the stolen property was worth a total of approximately $325,000.
Lee is charged in Count 5 with being a felon in possession of a firearm. It also alleges that Lee had been convicted of a crime punishable by one year or more in prison, which made it a federal felony for him to possess a firearm.
Today Lee pled guilty to one of the possession-of-stolen-property counts and to the firearms count. At sentencing, he could receive on each count up to 10 years in prison, 3 years of supervised release, and a $250,000 fine. He will forfeit 16 firearms that were in his possession on November 10, 2016, in McClain County. The remaining charges against Lee will be dismissed at sentencing.
Smith pled guilty today to misprision of a felony, charged in a separate filing on November 2, 2017. He admitted in court that in June 2016, he concealed the offense of possessing stolen property that had crossed a state boundary when he instructed someone by text message not to disclose the circumstances under which he had acquired stolen property. This offense carries a maximum punishment of 3 years in prison and a fine of up to $250,000. The United States has agreed to dismiss other charges against Smith at sentencing. Both defendants will be sentenced in approximately 90 days.
Four others have already pled guilty in this investigation. On March 8, 2017, Amanda Czermak pled guilty to the interstate-theft conspiracy. On August 21, 2017, Auston Slater pled guilty to the same conspiracy, and Dakota Epperly and Dakotah Henderson pled guilty to possessing stolen property that had crossed a state boundary. All four of these defendants are awaiting sentencing.
This case is the result of an investigation by the FBI Major Theft Task Force, the Oklahoma Department of Agriculture, Food & Forestry Investigative Service ("ODAFF"), and the Oklahoma City Police Department. The Major Theft Task Force consists of the FBI, ODAFF, the Oklahoma State Bureau of Investigation, and the Garvin County Sheriff’s Office. Assistant U.S. Attorneys Edward J. Kumiega, Mark R. Stoneman, and Ashley L. Altshuler are prosecuting the case. Reference is made to court records for further information.
Oklahoma City Man Pleads Guilty to Millions of Dollars of Gift-Card FraudRead the Press Release
Oklahoma City, Oklahoma – LEONARD RAY FOSTER, of Oklahoma City, has pled guilty to fraud and money laundering in connection with a scheme to defraud retailers of millions of dollars through gift cards, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to charges filed earlier this week, Foster owned and operated Acquisitions Unlimited, LLC, also known as A-to-Z Giftcards. This business bought unused or partially used retail gift cards, also known as store value cards, for a fraction of the cards’ face value. With Foster’s personal involvement, the business then sold the value on the cards to Giftcard Zen, an online retail gift card exchange based in Phoenix, Arizona.
According to the charges, from May 2015 to March 2017, individuals affiliated with Foster or his business shoplifted large quantities of high-dollar items from retail stores, including Walmart, Lowe’s, Target, and Home Depot. They then returned these stolen items, without a receipt, to the retailer for a store value card in the amount of the returned merchandise. Each day, Foster purchased multiple cards from these individuals for a small fraction of the cards’ face values. He knew the cards had been obtained through fraud. Indeed, Foster sometimes directed the shoplifters himself. Through A-to-Z Giftcards, he then sold the face value on the cards to Giftcard Zen, in violation of terms of service that prohibited selling store value cards obtained through fraud.
Foster is charged in two separate counts. First, he is charged with wire fraud in connection with a particular wire during the scheme: a $59,035.38 transfer on December 9, 2015, from Giftcard Zen’s out-of-state bank to an account of Acquisitions Unlimited at Bank of America in Oklahoma. Second, he is charged with money laundering, based on a December 10, 2015, withdrawal from Bank of America in the amount of $18,000. The charges also include forfeiture allegations that seek a 1969 Ford Mustang, currency seized from accounts at First Fidelity Bank, and proceeds of the offenses generally.
Today Foster pled guilty to both wire fraud and money laundering. In a plea agreement, he has acknowledged that the losses associated with his scheme are between $3.5 million and $9.5 million. At sentencing, he could receive up to 20 years in prison and 3 years of supervised release on Count 1. On Count 2, he could receive up to 10 years in prison, followed by 3 years of supervised release. He will also be subject to mandatory restitution in an amount to be determined by the court and fines of up to $250,000 per count.
This case is the result of an investigation by the Internal Revenue Service–Criminal Investigations, the United States Postal Inspection Service, and the Oklahoma City Police Department. It is being prosecuted by Assistant U.S. Attorneys Julia E. Barry, Ashley L. Altshuler, and Wilson McGarry. Reference is made to court records for further information.
Man Who Paid for Sex with Child Sentenced to Ten Years in Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – CURTIS A. ANTHONY, 51, of Ardmore, Oklahoma, was sentenced today to 120 months in federal prison for child sex trafficking, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On June 16, 2015, a federal grand jury indicted Anthony and four other defendants for conspiring to engage in child sex trafficking. One of these defendants, Tonya Gay Gum, operated at least twenty phone numbers listed in the escort section of the Oklahoma City Yellow Pages. On October 24, 2014, at a commercial property he owned in Edmond, Oklahoma, Anthony met with 14- and 15-year-old girls who were being trafficked by Gum, along with pimps Maurice Johnson and Hiram Mitchell. After paying both girls to take off their clothes, Anthony paid to have sex with one of the girls.
On June 19, 2017, at the conclusion of a four-day trial, a jury convicted Anthony of conspiracy and child sex trafficking for his role as a customer of underage escorts. The judge instructed the jury that it could convict if Anthony had a reasonable opportunity to observe a minor victim, even if he did not know or recklessly disregard that victim’s age. The jury heard evidence that Anthony saw the girls in their underwear, touched both of them, and drove one of them to an ATM to get cash for the commercial sex transaction.
Today U.S. District Judge Robin J. Cauthron sentenced Anthony to 120 months in prison, to be followed by five years of supervised release. The United States anticipates he will also be required to pay restitution to victims; the court will conduct a hearing to determine the amount of restitution within 90 days.
The cases against three of Anthony’s four co-defendants have already been resolved. On November 19, 2015, Gum pled guilty to conspiracy to commit child sex trafficking. She was sentenced to four years in prison and three years of supervised release. Trung N. Duong, another customer of Gum, pled guilty to conspiracy to commit child sex trafficking on May 9, 2017, and was sentenced to two years in prison on August 29, 2017. Russell D. Ehrens, another customer, was acquitted on December 9, 2015, under jury instructions that required knowledge or reckless disregard of the victim’s age. In a government appeal in the cases against Duong, Anthony, and William M. Baker, the Tenth Circuit Court of Appeals held on February 14, 2017, that “reasonable opportunity to observe” the victim is sufficient to support a conviction under the federal statute prohibiting child sex trafficking. Baker’s case remains pending.
Johnson and Mitchell were also prosecuted. Johnson is currently serving 240 months in federal custody, and Mitchell is serving 120 months.
This case is the result of an investigation conducted by United States Department of Homeland Security and the Oklahoma Bureau of Narcotics and Dangerous Drugs. Assistant U.S. Attorneys McKenzie Anderson and David Petermann prosecuted the case.
DEA Prepares for Prescription Drug Take-Back DayRead the Press Release
Oklahoma City, Oklahoma – This Saturday, October 28, from 10:00 a.m. to 2:00 p.m., the Drug Enforcement Administration and its local law enforcement, community, and tribal partners will give the public its fourteenth opportunity in seven years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
This DEA initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: four out of five new heroin users started with painkillers.
DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods of disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards. Last April, the public turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills.
"Disposing of leftover painkillers or other addictive medicines in the house is one of the best ways to prevent a member of your family from becoming a victim of the opioid epidemic," said DEA Acting Administrator Robert W. Patterson. "More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the largest rate of overdose deaths this country has ever seen."
To locate collection sites nationwide, visit https://takebackday.dea.gov/#collection-locator, or call 1-800-882-9539. In the Oklahoma City area, collection sites include the Oklahoma County Sheriff’s offices, at 201 North Shartel in Oklahoma City and at 8029 S.E. 29th Street in Midwest City. In Lawton, collection sites include the Comanche Nation Police Department, at 8527 N.W. Madische Road. The service is free and anonymous, no questions asked. DEA cannot accept liquids, needles, or sharps. The Oklahoma Bureau of Narcotics and Dangerous Drugs operates a similar, year-round prescription drug disposal program throughout the state.
Two Sentenced to 11 and 7 Years in Federal Prison for $4.6 Million Internet Romance FraudRead the Press Release
Oklahoma City, Oklahoma – KEN EJIMOFOR EZEAH, 35, and AKUNNA BAIYINA EJIOFOR, 33, have been sentenced to 11 and 7 years in federal prison respectively for their roles in a fraudulent romance scheme involving victims throughout the United States, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma.
On February 16, 2016, a grand jury indicted Ezeah and Ejiofor for conspiracy and wire fraud. According to the indictment, the scheme involved using false profiles to open accounts on online dating web sites and then courting victims by pretending to be successful financial advisors or affiliated with charitable causes. Over time, through supposedly romantic relationships, the defendants caused victims to share personal information about their finances and then encouraged victims to wire them money on the pretext of managing their investments. The conspirators actually kept the money for personal use. The two wire fraud counts concerned wire transfers from a victim in Oklahoma City that totaled more than $1 million. On June 22, 2016, a grand jury returned a superseding indictment that added one count of aggravated identity theft and 16 counts of wire fraud relating to additional victims.
Both Ezeah and Ejiofor were arrested in Houston, Texas, on January 27, 2016. Ezeah has been in federal custody since that time. He pled guilty to conspiracy on February 1, 2017. Ejiofor, who was released on bond after her arrest, exercised her right to a jury trial and was convicted on all counts on March 30, 2017. She has been in federal custody since her conviction.
Today United States District Court Judge Timothy D. DeGiusti sentenced Ezeah to 11 years in prison and three years of supervised release. Ezeah was also ordered to pay $4,678,302.79 in restitution to ten individual victims. At a separate sentencing on September 28, 2017, Ejiofor received 7 years in prison and three years of supervised release. She owes the same restitution to the same ten victims, jointly and severally with Ezeah. Reference is made to public filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Timothy W. Ogilvie.
Attorney General Jeff Sessions Announces Reinvigoration of Project Safe Neighborhoods and Other Actions to Reduce Violent CrimeRead the Press Release
Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce violent crime in the United States. Foremost of those actions is the reinvigoration of "Project Safe Neighborhoods," a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. According to the FBI, violent crime rates, including homicides, have risen the past two years. "As a former Project Safe Neighborhoods and Violent Crime Coordinator, I am pleased by the Attorney General’s commitment to reducing violent crime, an endeavor all Oklahomans can embrace," said Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
In a statement on the program, the Attorney General said, in part:
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"We cannot be complacent or hope that [a rising violent crime rate] is just an anomaly: we have a duty to take action."
"Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.
"Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.
"Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer."
Additional information and the Attorney General’s full remarks are available at: https://www.justice.gov/opa/pr/attorney-general-sessions-announces-reinvigoration-project-safe-neighborhoods-and-other.
Department of Justice Awards over $18 Million to Oklahoma TribesRead the Press Release
The Department of Justice has awarded more than $18 million in grants to Oklahoma tribal governments to enhance public health and safety, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma; R. Trent Shores, U.S. Attorney for the Northern District of Oklahoma; and Brian J. Kuester, U.S. Attorney for the Eastern District of Oklahoma.
These grants are part of more than $100 million in grants to 125 American Indian tribes, Alaska Native villages, tribal consortia, and tribal designees, announced today by Associate Attorney General Rachel Brand. Many of these awards were made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
CTAS grants are designed to enhance law enforcement practices, expand victim services, and sustain crime prevention and intervention efforts. Awards cover nine areas: public safety and community policing, justice systems planning, alcohol and substance abuse, corrections and correctional alternatives, children’s justice act partnerships, services for victims of crime, violence against women, juvenile justice, and tribal youth programs.
"Reducing violent gang and gun crimes in Indian Country is crucial to protecting citizens who live in and around tribal communities. The justice community must also look to help those with mental health and substance abuse issues to re-enter society as productive citizens. These Federal grant allocations will help to further those goals," said U.S. Attorney Shores of the Northern District of Oklahoma. U.S. Attorney Kuester of the Eastern District of Oklahoma said, "I am pleased and excited about DOJ’s awards to the tribal governments in Oklahoma. These grants will fund programs that will assist victims of crimes, reduce crime against women, and enhance the resources available for tribal governments to combat violent crime, increase public awareness, and provide prevention programs for youth. The U.S. Attorney’s Office looks forward to assisting in any way possible as these programs are implemented." U.S. Attorney Yancey of the Western District of Oklahoma said, "I join my fellow United States Attorneys in welcoming the federal law enforcement assistance to our Oklahoma tribes. I look forward to working with all tribes in the Western District to reduce crime and aid victims."
The Oklahoma CTAS recipients are:
Cherokee Nation (total: $3,087,900)
Public Safety and Community Policing: $565,241
Comprehensive Tribal Justice Systems Strategic Planning: $74,995
Justice Systems and Alcohol and Substance Abuse: $749,993
Violence Against Women Tribal Governments Program: $898,100
Comprehensive Tribal Victim Assistance Program: $449,925
Tribal Youth Program: $349,64Choctaw Nation of Oklahoma (total: $1,994,588)
Violence Against Women Tribal Governments Program: $897,851
Comprehensive Tribal Victim Assistance Program: $449,999
Juvenile Healing to Wellness Courts: $350,000
Tribal Youth Program: $296,738Citizen Potawatomi Nation (total: $1,098,106)
Justice Systems and Alcohol and Substance Abuse: $749,593
Tribal Youth Program: $348,513Comanche Nation (total: $749,348)
Justice Systems and Alcohol and Substance Abuse: $749,348
Delaware Tribe of Indians (total: $424,845)
Violence Against Women Tribal Governments Program: $424,845
Muscogee Creek Nation (total: $803,912)
Violence Against Women Tribal Governments Program: $803,912
Pawnee Nation (total: $700,000)
Violence Against Women Tribal Governments Program: $700,000
Ponca Tribe of Oklahoma (total: $1,800,000)
Corrections and Correctional Alternatives: $1,000,000
Comprehensive Tribal Victim Assistance Program: $450,000
Tribal Youth Program: $350,000Quapaw Tribe of Oklahoma (total: $4,590,422)
Public Safety and Community Policing: $232,929
Justice Systems and Alcohol and Substance Abuse: $446,714
Corrections and Correctional Alternatives: $3,910,779Seminole Nation of Oklahoma (total: $900,000)
Violence Against Women Tribal Governments Program: $900,000
Seneca Cayuga Nation (total: $825,000)
Violence Against Women Tribal Governments Program: $825,000
Wyandotte Nation (total: $200,189)
Public Safety and Community Policing: $200,189
In addition to CTAS grants, the Department awarded $889,975 to four Oklahoma tribes under the Adam Walsh Act Implementation grant program, part of the Office of Justice Program’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. These grant awards enable states, the District of Columbia, territories, and tribal jurisdictions to develop and enhance programs that implement the requirements of the federal Sex Offender Registration and Notification Act. Funding supports staff, information-sharing technology, infrastructure development, law enforcement training, and stakeholder collaboration.
The Oklahoma recipients of Adam Walsh Act Implementation grants are:
Caddo Nation: $200,000
Cheyenne and Arapaho Tribes: $400,000
Seneca Cayuga Nation: $198,181
United Keetoowah Band of Cherokee Indians: $91,794Finally, through the Office of Justice Programs, the University of Oklahoma Health Sciences Center will receive $1.5 million under the Office of Juvenile Justice and Delinquency Prevention’s Fiscal Year 2017 Tribal Youth Program Training and Technical Assistance grant. This program provides culturally-sensitive, trauma-informed and developmentally-appropriate training, support, resources, information, and related technical assistance to help tribes meet the needs of their youth.
The Department of Justice’s national press releases on these and related grants are available at https://www.justice.gov/opa/pr/justice-department-awards-more-130-million-improve-public-safety-address-violence-against.