District of Vermont
Press releases recorded for this federal judicial district.
Derrell Lee of Atlanta Sentenced to 32 Months for Aggravated Identity Theft and Bank Fraud Involving TD Bank Branches in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Derrell Lee, 25, of Atlanta, Georgia, was sentenced today for his role in a scheme to defraud TD Bank through the cashing or attempted cashing of fraudulent checks in Vermont using the stolen personal information and bank account information of other TD Bank customers. Sitting in Brattleboro, Senior U.S. District Judge J. Garvan Murtha sentenced Lee to 32 months in prison followed by two years of supervised release.
According to court records, in August 2015, law enforcement determined that Kirsta Dixon, a teller at an Atlantic City, New Jersey TD Bank branch, had provided account information for approximately 34 customers to Laurel Wells in exchange for compensation. Subsequent to the misappropriation of the customer account information, Derrell Lee cashed or attempted to cash approximately $33,000 in fraudulent checks in New York State and Vermont. On each occasion, Lee used the names and account information associated with the compromised information from Dixon.
Between August 8 and August 13, 2015, Lee entered eight different TD Bank branches, wearing a distinctive purple suit and passing himself off as someone else in an attempt to cash checks for thousands of dollars. On August 8, 2015, Lee successfully cashed a $4700 check in Fishkill, New York; on the same date he tried unsuccessfully to cash a $4500 check in South Hills, New York. On August 12, 2015, Lee cashed a $4700 check in Montpelier, Vermont; he cashed a $4800 check in Woodstock, Vermont; attempted to cash a $4800 check in Waterbury, Vermont; and attempted to cash another $4700 check in Barre, Vermont. On August 13, 2015, Lee cashed a check under another name in Richmond, Vermont for $4800. Law enforcement arrested Lee later that day after he attempted to cash a $4800 check at the TD Bank in Williston, Vermont. At the time of his arrest, Lee had a check made out to one of the compromised accountholders in New Jersey, a withdrawal slip, a New Jersey driver’s license containing Lee’s photo and the accountholder’s identifying information, and a Capital One credit card in the accountholder’s name. The license and credit card were both determined to be fraudulent. Fingerprint analysis determined that both Lee and Wells had contact with the withdrawal slip.
Several Vermont State’s Attorney’s Offices initially charged Lee for his offenses at each of the banks. Lee posted bond in his state cases in August 2015, but was arrested in January 2016 on a warrant for failure to appear for court proceedings.
On January 29, 2016, Lee was charged federally with bank fraud and aggravated identity theft. On June 22, 2016, he pled guilty to both crimes, the latter requiring a mandatory two-year prison term consecutive to his sentence on the bank fraud charge. Criminal cases are pending against Kirsta Dixon and Laurel Wells in the Superior Court of New Jersey.
This matter was investigated by the U.S. Secret Service, with the assistance of the Williston, Richmond, Waterbury, Montpelier, Barre, Woodstock, and Atlantic City, New Jersey Police Departments. The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. Mr. Lee was represented by David L. McColgin of the Federal Defender’s Office in Burlington, Vermont.
Gregory Harriman Sentenced to 30 Months for Embezzling Funds from Employer in Bennington, VT; Brother-in-law Sentenced for Obstruction of JusticeRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Gregory Harriman, 52, formerly of Bennington, Vermont, was sentenced on December 19, 2016 to thirty months of imprisonment to be followed by three years of supervised release for his role in defrauding and embezzling funds from NSK Steering Systems America, one of the largest employers in Bennington, where Harriman previously served as the plant manager. In addition, District Judge William K. Sessions, III ordered Harriman to pay $386,850 in restitution.
In a related case, on December 12, 2016, Judge Sessions sentenced Stephen Savage, the brother-in-law of Harriman, to serve a term of probation for 12 months and pay a fine of $15,000 for obstructing justice in connection with Harriman’s fraud.
Gregory Harriman’s Fraud at NSK
The government’s investigation in this case revealed that from 2007 through 2011, Harriman orchestrated and implemented a scheme to obtain money from NSK by means of false and fraudulent pretenses, representations, and promises, whereby Harriman caused NSK to pay invoices that were false and Harriman had significant sums of the money paid on those invoices redirected to benefit himself.
As part of the scheme, Harriman set up Frontier Automation with James Waters and directed NSK work to Frontier Automation starting in 2007 and continuing through 2011. Harriman concealed from NSK his control of, and interest in, Frontier Automation. Harriman assisted Waters in preparing false quotes and invoices sent from Frontier Automation to NSK, Harriman took multiple steps to assist Waters in concealing this fraud, and Harriman later manufactured documents to try concealing the fraud.
At NSK, Harriman approved or directed others at NSK to approve the false invoices for payment, despite knowing that Frontier Automation had not performed the work listed on the invoices. During the course of the scheme, NSK paid Frontier Automation hundreds of thousands of dollars on false invoices, which Waters largely redirected to Harriman. Waters was also charged and has pleaded guilty to participating in this scheme to defraud NSK. His sentencing is scheduled for January 17, 2017.
In a separate transaction, Harriman also convinced the owner of Red C Parts, an engineering company out of New York, to provide NSK an invoice for work that Red C Parts did not perform. Harriman controlled the deal on behalf of NSK and approved the invoice for payment. Harriman also had substantial portions of the funds paid by NSK for this invoice redirected to benefit himself.
Harriman left NSK in 2011 and NSK soon discovered questionable transactions, which led to the government’s investigation and subsequent prosecution.
Stephen Savage’s Obstruction of Justice
In addition to Harriman’s scheme to embezzle funds from NSK through fraudulent transactions with Frontier Automation and Red C Parts, the government also investigated certain questionable transactions between NSK and Freedom Engineering, a company run by Stephen Savage, the brother-in-law of Harriman. Starting in 2008, Harriman also began directing some NSK business to Freedom Engineering.
In response to grand jury subpoenas seeking information from Stephen Savage about these transactions, Savage produced certain business records in 2014 that the government’s investigation later established were false and fraudulent. When questioned by government agents about these questionable transactions, Savage also made multiple false statements to law enforcement about Harriman and related issues.
Savage was subsequently charged with obstruction of justice based on his production of false documents in response to grand jury subpoenas and his knowing misstatements designed to mislead law enforcement in its ongoing investigation into Harriman.
Savage pled guilty to obstruction of justice, and on December 12, 2016, Judge Sessions sentenced Savage to serve a term of probation for 12 months and pay a fine of $15,000.
The cases against Harriman and Savage were prosecuted by Assistant United States Attorneys Paul Van de Graaf and Kunal Pasricha. The Federal Bureau of Investigation was the lead federal agency investigating these crimes. Harriman was represented by attorney Thomas Sherrer and Savage was represented by attorney Ian Carleton.
Vermont U.S. Attorney’s Office Collects $1,751,875.78 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Burlington, VT- U.S. Attorney Eric Miller announced today that the United States Attorney’s Office for the District of Vermont collected $1,751,875.78 in criminal and civil actions in Fiscal Year 2016. Of this amount, $923,113.71 was collected in criminal actions and $828,762.07 was collected in civil actions.
Additionally, Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $161,470.55 in cases pursued jointly with these offices. Of this amount, $16,903.05 was collected in criminal actions and $144,567.50 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
U.S. Attorney Eric Miller added, “As we pursue justice on behalf of Vermonters, our office will continue to seek monetary remedies that impose appropriate punishment on wrongdoers, compensate victims, and protect publicly funded programs from fraud and abuse.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Vermont, working with partner agencies and divisions, collected $1,379,093 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Mentally Defective South Burlington Man Charged with Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on December 15, 2016, at the intersection of Shelburne Road and Prospect Parkway, federal and local law enforcement authorities arrested a twenty-year-old South Burlington man, Randy McEntee, for the unlawful possession of a 9 mm pistol and related ammunition. McEntee, who has been diagnosed with significant mental health and developmental issues, has been under the legal guardianship of his mother, also of South Burlington, since May 2014, and is therefore prohibited by federal law from possessing any firearms or ammunition.
Later on December 15, the defendant appeared in District Court in Burlington before Magistrate Judge John M. Conroy and entered a plea of not guilty to the federal complaint charging him with the unlawful possession of a firearm and ammunition by a mentally defective person. On December 19, following a hearing, Magistrate Judge Conroy ordered the defendant detained.
According to the criminal complaint, law enforcement became aware of McEntee after a series of threats and online activity was reported. Thereafter, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives commenced an investigation that includes the preservation of several Facebook posts and photographs wherein McEntee documented his enjoyment of handguns and shooting.
On December 15, agents from ATF observed McEntee ride his bicycle from his home on Farrell Street to Shelburne Road. With the assistance of members of the South Burlington Police Department, law enforcement detained McEntee, and ultimately recovered a loaded Hi-Point pistol, 9 millimeter Luger, from inside McEntee’s pants pocket.
Immediately following the defendant’s arrest, federal ATF agents executed a search warrant on the defendant’s home that he shares with his mother and legal custodian. Inside the home, fifty rounds of 9 mm ammunition were recovered from what is believed to be his mother’s bedroom, one loose 9 mm round was recovered from what is believed to be McEntee’s bedroom, and thirty-two rounds of 9 mm ammunition and a Hi-Point firearm box were recovered from a drawer in what is believed to be McEntee’s bedroom.
If convicted, McEntee faces up to ten years of imprisonment. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the complaint are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
The United States is represented in this matter by Assistant U.S. Attorney Abigail Averbach. Randy McEntee is represented by the Office of the Federal Public Defender. The case is currently under investigation by federal ATF agents.
Vermont Man Sentenced to 36 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on December 16, 2016, Robert Robidoux, 33, of Richmond, Vermont, was sentenced to 36 months in federal prison after his guilty plea to charges that he conspired to distribute heroin. Chief U.S. District Court Judge Christina Reiss also ordered that Robidoux serve three years of supervised release after his prison term.
According to court records, between June and August of 2015, Robidoux conspired to distribute heroin in Vermont. At the time, he was on parole for a previous felony conviction in Vermont for the possession of heroin.
For his crime, Robidoux faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended Robidoux receive a prison term of between 33 and 46 months. In determining that a 36-month term was appropriate, Judge Reiss considered the severity of the offense, the harm heroin is causing to the community in Vermont, and Robidoux’s lengthy criminal record.
United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force and the Burlington Police Department in this case. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Robidoux is represented by Lisa Shelkrot from the law firm Langrock Sperry & Wool.
Vermont Physician Pays $76,000 to the United States to Resolve Allegations of False Claims Act ViolationsRead the Press Release
The United States Attorney’s Office for the District of Vermont announced today that physician Lynn E. Madsen, M.D., of Townshend, Vermont, has paid $76,000 to the United States to resolve allegations that she violated the federal False Claims Act, 31 U.S.C. § 3729, by knowingly presenting, or causing to be presented, false claims for payment to Medicare and Medicaid. The money will be divided between the federal Medicare, federal Medicaid, and Vermont Medicaid programs to which Dr. Madsen submitted the alleged false claims.
The United States contends that, from on or about November 1, 2013, to November 30, 2015, Dr. Madsen knowingly presented, or caused to be presented, hundreds of false claims for payment to the Medicare and Medicaid programs for trigger point injections (a pain management procedure) that were not reasonable and medically necessary and which did not comply with applicable Medicare and Medicaid laws, regulations, and program limitations. More specifically, the United States contends that the trigger point injections performed by Dr. Madsen consisted solely of saline or saline-based anthroposophic injectates that were devoid of any approved therapeutic agent and not considered reasonable and medically necessary under applicable Medicare and Medicaid laws, regulations, and program limitations.
The settlement announced today resolves the foregoing allegations without the need for litigation. Pursuant to the terms of the settlement agreement, the agreement and payment are neither an admission of liability by Dr. Madsen, nor a concession by the United States that its claims were not well founded.
This matter was investigated by the United States Attorney’s Office for the District of Vermont and the Office of the Inspector General of the Department of Health and Human Services, with assistance from the Medicaid Fraud and Residential Abuse Unit of the Vermont Attorney General’s Office. Assistant United States Attorney Ben Weathers-Lowin handled the matter on behalf of the United States. Dr. Madsen was represented by Ian P. Carleton of the law firm Sheehey, Furlong & Behm, P.C.
Montreal Resident Charged with Alien SmugglingRead the Press Release
The United States Attorney for the District of Vermont and the Swanton Sector, United States Border Patrol announce that Daniel Larmand, 52, a Montreal resident, appeared today in United States District Court in Burlington on a charge of alien smuggling. U.S. Magistrate Judge John M. Conroy released Larmand on conditions pending the next court hearing.
According to the criminal complaint that was filed in court today, Border Patrol agents, with assistance from the Royal Canadian Mounted Police, witnessed a green, older model sport utility-type vehicle approach the United States border late in the afternoon on December 2. The vehicle stopped just north of the border and discharged a passenger, who then illegally walked across the border into the United States. Agents from the Champlain and Swanton Border Patrol Stations were dispatched to the area, in Alburgh, and within minutes located the illegal entrant, who turned out to be a Greek national.
Shortly after the alien was apprehended, the defendant Daniel Larmand appeared at the Alburgh Port-of-Entry seeking admission to the United States. Larmand was driving an older model green Chevy Blazer. He said that he was going to Rouses Point to look at a boat. After inspection, Larmand was permitted to enter the U.S.
Instead of going to Rouses Point, however, Larmand drove to the location where Border Patrol agents were still detaining the illegal alien. Agents questioned Larmand about his reasons for being in the area. During this encounter, the alien saw Larmand and identified him as the person who helped smuggle him into the United States. The Greek national reported that other persons had previously paid Larmand $1000 to smuggle him into this country.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Larmand faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Larmand is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.Portuguese National Sentenced for Reentering United StatesRead the Press Release
The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Paulo Abelha, 49, a citizen of Portugal, pleaded guilty today in United States District Court in Burlington to an indictment which charges him with reentering the United States after having been twice deported. Chief U.S. District Judge Christina Reiss sentenced Abelha to time served. Abelha has been held without bail since his arrest last August. Custody of Abelha will be transferred from the U.S. Marshal’s Service to the Department of Homeland Security for removal proceedings.
According to court records, Abelha is a citizen of Portugal who moved to the United States in 1971 with his parents. In 1994, after he was convicted of violent felonies and served a prison sentence in Massachusetts, Abelha was deported to Portugal. In July 2016, federal officials learned that Abelha had at some point come back to the United States illegally and was living in Fall River. He was taken into custody and again deported to Portugal on August 16.
Three days later, on the evening of August 19, Canadian law enforcement officers notified Border Patrol agents in Vermont that a man had been dropped off at a place just north of the border and had then walked into the United States near Alburgh. Border Patrol agents went to the area and soon found Abelha, who was carrying a backpack. Documents in Abelha's possession showed that he had flown into Montreal from Portugal earlier that day. Abelha did not enter the United States through a port-of-entry and is ineligible to return to the United States.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Abelha is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Michael DePalma of New Hampshire Sentenced to 72 Months for Conspiracy to Distribute Bath Salts Obtained from ChinaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael DePalma, 57, of Plainfield, New Hampshire was sentenced for his role in a conspiracy to distribute alpha-pyrrolidinopentiophenone (“a-PVP”), a synthetic drug commonly referred to as “bath salts.” DePalma was convicted of conspiring with Louis Turcio, 52, of Springfield, Vermont, Andrew Darling, 52, of North Walpole, New Hampshire, Michael Kline, 44, of Chester, Vermont, and Christine Spaulding, 37, of Bellows Falls, Vermont, to distribute a-PVP from March 2014 through June 2015. Chief United States District Judge Christina Reiss sentenced DePalma to 72 months’ imprisonment and three years of supervised release. Judge Reiss previously sentenced Turcio to 72 months’ imprisonment and three years of supervised release; Darling to 53 months’ imprisonment and three years of supervised release; Kline to 36 months’ imprisonment and three years of supervised release; and Spaulding to 24 months’ imprisonment and three years of supervised release. In a related a-PVP conspiracy, Chief Judge Reiss sentenced Jesse Emerson of Springfield to 55 months’ imprisonment and five years of supervised release, and Eugenia Emerson of Bellows Falls, Vermont to 49 months’ imprisonment and three years of supervised release.
According to court records, in 2011 DePalma located an on-line source for bath salts in China. Over the course of the conspiracy, DePalma and his co-conspirators imported kilogram quantities of a-PVP from China for distribution in Springfield, Vermont and neighboring areas. Among the evidence establishing the bath salts conspiracy, during the execution of a search warrant at Turcio’s Springfield residence in March 2015, law enforcement recovered $2,000 in currency, drug paraphernalia, and several handguns, two of which had serial numbers removed. Law enforcement also encountered Kline in a room with a pistol on the dresser. On April 14, 2015, law enforcement intercepted a package of a-PVP en route from China to Vermont, and conducted a controlled delivery of the package at the Springfield, Vermont Post Office. Turcio arrived at the post office to retrieve the package and was intercepted by federal agents. Also on April 14, 2015, Darling was arrested after the Springfield Police Department conducted a stop as Darling was driving DePalma’s car. At that time, law enforcement seized a quantity of bath salts and a 9mm pistol between the driver’s seat and the console. DePalma admitted to law enforcement that he possessed a 9mm handgun that he had received in trade for bath salts.
United States Attorney Eric Miller commended the collaborative efforts of the agencies involved in this investigation, which included the Federal Bureau of Investigation, the Vermont Drug Task Force, the Springfield, Vermont Police Department, the U.S. Postal Inspection Service, the New Hampshire Drug Task Force, Homeland Security Investigations, the Plainfield, New Hampshire Police Department.
The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. DePalma was represented by Jordana Levine, Esq., Darling was represented by Lisa B. Shelkrot, Esq., Turcio was represented by Frank J. Twarog, Esq., Kline was represented by Mark D. Oettinger, Esq., and Christine Spaulding was represented by Jason Sawyer, Esq.
United States Attorney’s Office for the District of Vermont Announces Hiring of New Attorney to Focus on Civil RightsRead the Press Release
United States Attorney Eric Miller announced today that Julia Torti has joined the United States Attorney’s Office for the District of Vermont as an Assistant United States Attorney in the Office’s Civil Division. Ms. Torti, who grew up in Vermont and is returning after starting her career at a civil rights law firm in New York, is one of thirty-four new Assistant United States Attorneys joining U.S. Attorney’s Offices across the country and focusing on enforcement of the nation’s federal civil rights laws. The Department of Justice created these new positions to increase and improve the United States Attorney’s Offices’ ability to apply dedicated resources to civil rights enforcement in all corners of the country. With the support of Vermont’s civil rights advocates and elected officials, the United States Attorney’s Office for the District of Vermont was awarded one of the thirty-four new positions through a competitive application process.
Since 2010, the United States Attorney’s Office for the District of Vermont has developed a civil rights program through community outreach, education, and case work. It has investigated and resolved numerous civil rights cases involving disability discrimination. The Chief of the Civil Division of the United States Attorney’s Office, Nikolas Kerest, noted, “The addition of a new Assistant United States Attorney concentrating in this area will significantly increase the Office’s ability to reach and to protect the civil rights of Vermonters.”
“Aggressive protection of the civil rights of the residents of Vermont is a top priority for the Department of Justice,” said U.S. Attorney Miller. “The Department and this U.S. Attorney’s Office are committed to a level playing field for all Vermont residents, promoting equal opportunity for Vermonters, and educating the public about their rights and responsibilities under federal civil rights laws. Being selected to receive one of the thirty-four new civil rights AUSA positions and having Assistant United States Attorney Torti join us are great steps toward achieving those goals.”
“Now, more than ever, it is crucial that we have the resources in Vermont and in other states to investigate and prosecute civil rights violations. I commend U.S. Attorney Eric Miller and his team for their hard work in securing this position for Vermont, and I was gratified to be in a position to support their efforts,” said Senator Patrick Leahy, D-Vt., the ranking member of the Senate Judiciary Committee. “As Vermont’s population becomes more diverse, we will continue to work to assure that no one faces discrimination based on the color of their skin, their identified gender or sexual orientation, their disability or their religious beliefs. I am proud that our small state is committed to upholding these basic human rights because all Vermonters deserve to be treated with dignity and fairness.”
Also joining the United States Attorney’s Office for the District of Vermont and working towards the protection of the civil rights of Vermonters will be a contract Civil Rights Intake and Outreach Coordinator. This contractor will be collaborating with Assistant United States Attorney Torti and local community members, advocacy groups and other federal and state agencies to promote education and protection of Vermonters’ civil rights.
Curtiss Reed, Jr., the Executive Director of the Vermont Partnership for Fairness and Diversity, added, "Vermont Partnership for Fairness & Diversity applauds the staff additions to the office of the United States Attorney for the District of Vermont at a time when many Vermonters feel vulnerable to acts of discrimination, denial of services, and hate crimes. We look forward to working with Ms. Torti and her colleagues to defend and strengthen civil rights for all Vermonters.”
Federal civil rights laws, among other things, prohibit discrimination and harassment on the basis of race, national origin, gender, religion and disability; prohibit hate crimes; prohibit police misconduct; protect the constitutional rights of institutionalized persons; protect the employment rights of service members; and prohibit discrimination in housing and mortgage lending. For more information on the Department of Justice’s civil rights effort, please visit www.justice.gov/crt.
CEO of Berlin, New Hampshire Business Sentenced in Multi-Million Dollar Bank Fraud Case and Outside Accountant Pays Civil PenaltyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Arnold Hanson, 66, of Nashua, New Hampshire, was sentenced by Chief Judge Christina Reiss yesterday based on his conviction for conspiracy to make false statements to a financial institution. Chief Judge Reiss sentenced Hanson to six months of home confinement and six months of curfew as part of a three-year term of supervised release. The court also sentenced Hanson to pay $300,000 in restitution by January 1, 2017.
As part of the sentencing, Hanson admitted to submitting or causing to be submitted inflated figures for assets of Isaacson Structural Steel, Inc., including inventory, to Passumpsic Savings Bank, and other banks participating in loans totaling over $12 million, including a $2 million loan guaranteed by the Small Business Administration in late 2010. Hanson was part owner and Chief Executive Officer of ISSI, which before its bankruptcy was one of the largest businesses in the North Country. ISSI fabricated steel used in commercial construction. It entered into construction contracts to provide not only the steel for commercial buildings but also to provide subcontractor services, principally the erection of the steel. ISSI purchased steel and fabricated the various pieces of steel needed for each contract at its Berlin, Hampshire location and then shipped the steel to building sites. Several weeks ago, ISSI’s CFO Steven Griffin was sentenced to two years of home confinement based on his guilty plea to submitting false financial statements.
According to court records, between August 2007 and April 2011, ISSI officers regularly submitted false and inflated figures to the banks regarding the value of ISSI’s assets. ISSI submitted these false statements about assets in borrowing base certificates and financial statements. ISSI regularly inflated its assets by a million dollars or more. For example, in August 2007, ISSI officers discussed, and then submitted to the bank, inflated figures for the amount of money owed to ISSI for work done in connection with 303 Third St., a construction project in Boston. In early 2011, officers participated in the submission of an ISSI’s draft financial statement for the financial year 2010, which contained significant overstatements about ISSI’s inventory. That financial statement had an inventory representation of approximately $12 million dollars. In fact, the value of the inventory was less than $2 million. Inventory was thus inflated by over $10 million. In April 2011, the banks learned about issues with ISSI’s inventory figures. By June 2011, ISSI was in bankruptcy, and its assets were later liquidated. In the end, the banks lost millions of dollars as a result of the fraud. At the sentencing hearing, the government represented its view that Griffin was more culpable than Hanson. Indeed, at times, Griffin lied to Hanson when he asked about financial information.
At the sentencing hearing, Hanson asked the Court to sentence him below the advisory sentencing guideline range of 46 to 57 months in jail. The government also moved for a below guidelines sentence in light of Hanson’s substantial cooperation in the investigation and prosecution of Griffin. Chief Judge Reiss agreed that in light of a variety of factors a jail sentence should not be imposed. The Court imposed a limit on Hanson’s freedom by imposing a lengthy period of home confinement and curfew.
This week, David Driscoll, ISSI’s outside accountant, agreed to settle a related, civil bank fraud case. The government filed a civil complaint alleging that Driscoll participated in the filing of false financial information on behalf of ISSI. Driscoll had responsibility for the yearly audit of ISSI’s assets, and according to the complaint knowingly prepared audit information that he knew contained inflated assets. At the time, Driscoll also served as a member of the Passumpsic Savings Bank board of directors. Driscoll agreed to pay a total of $100,000 in penalties associated with his conduct as an outside accountant. The government gave Driscoll credit for other penalties and costs that Driscoll has paid in connection with his conduct, including a civil penalty paid to the Federal Deposit Insurance Corporation, which regulates financial institutions. Driscoll has paid the federal government an additional $37,000 to settle the pending civil case. As part of the settlement, Driscoll did not admit liability in connection with the allegations in the complaint, which has been dismissed in light of the settlement.
The United States is represented in this matter by Assistant U.S. Attorneys Paul Van de Graaf and Timothy Doherty. Hanson is represented by George Ostler, Esq. Driscoll is represented by Craig Nolan, Esq. The investigation was conducted by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Deposit Insurance Corp., and the Office of Inspector for the Small Business Administration.
Suspended Attorney William O’Brien Pleads Guilty to Wire FraudRead the Press Release
The United States Attorney for the District of Vermont announced that William O’Brien, 60, an attorney who lives in Winooski, pleaded guilty today in United States District Court in Burlington to a charge of wire fraud. Chief U.S. District Judge Christina Reiss released O’Brien on conditions pending sentencing, which has been set for May 31, 2017 in Brattleboro.
On October 13, the United States filed a criminal information charging O’Brien with one count of wire fraud, the charge which he admitted today. The information charges O’Brien with defrauding two former law clients. In one case, O’Brien became the trustee of a trust established by the clients. As trustee, O’Brien was to use trust funds to make charitable contributions in the memory of the clients. Between 2008 and 2013, O’Brien did make a number of contributions of trust funds in the total amount of $97,500, but also improperly diverted about $270,000 in trust funds to his law firm account. In another case, O’Brien received in his capacity as attorney more than $247,000 in client funds, which were also meant to be used for charitable purposes. Although O’Brien did make one contribution of $15,000, he again used the remaining funds for his own benefit.
In early 2016, O’Brien did repay about $472,000 to these two clients, but those payments were made only after O’Brien became aware he was under investigation by counsel for the Vermont bar. The Vermont Supreme Court suspended O’Brien’s law license in January.
O’Brien faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Burlington Police Department, the U.S. Postal Inspection Service and the Vermont Judiciary’s Office of Disciplinary Counsel.
O’Brien is represented by Scott McGee of Norwich. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Orwell Man Charged with Armed Robbery of Fair Haven Maplefields Store in September 2015Read the Press Release
The Office of the United States Attorney for the District of Vermont stated that Matthew Hinton, 26, of Orwell, has been charged with an armed robbery of the Maplefields convenience store in Fair Haven, which occurred in the early morning hours of September 30, 2015.
The federal grand jury, sitting in Rutland, returned a four-count superseding indictment against Hinton. Hinton was previously charged with felon-in-possession of a firearm and possession of a stolen firearm, each of which carry a maximum prison sentence of ten years. Hinton pled not guilty to those charges. He is currently being detained by the Vermont Department of Corrections on separate unrelated state charges.
The two new federal charges are a Hobbs Act federal robbery charge, which carries a maximum sentence of twenty years. The second new charge is that of brandishing a firearm during a crime of violence, which carries a mandatory minimum consecutive sentence of seven years and a maximum sentence of life imprisonment. He is scheduled to be arraigned on these new charges on November 21, 2016 before Magistrate-Judge John Conroy in Burlington, Vermont.
The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fair Haven Police Department, and the Vermont State Police. The United States is represented by Assistant U.S. Attorney Joe Perella and Mr. Hinton is represented by David McColgin of the Federal Public Defenders Office.
Brooklyn, New York Man Sentenced to Twelve Years in Jail for Sex Trafficking and Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that Diheim Young, age 32, of Brooklyn, New York was sentenced by Judge William K. Sessions, III, in federal court to twelve years in prison after pleading guilty to a conspiracy to distribute heroin and crack cocaine in Rutland, Vermont as well as a conspiracy to engage in sex trafficking women between Vermont and New York. Young pleaded guilty to sex trafficking five women between 2012 and 2015. Four of the women were Vermont residents at the time they were trafficked. Judge Sessions also sentenced Young to five years of supervised release after his prison sentence.
According to the public record, Young worked with a series of women who assisted him in the drug trade. These women sold drugs for him, transported him to meet drug customers in and around Rutland and transported him to New York City to pick up drugs from his source of supply. When the women were sufficiently addicted to be dependent upon him, Young turned their addictions against them as a means of controlling them. Young convinced some of the women to travel to New York City with him under false pretenses and, once there, forced them to prostitute themselves either by posting advertisements on a website called Backpage or by forcing them to walk what is known as “the track.” If the women refused to engage in prostitution, Young withheld drugs from those who were addicted knowing that they would get sick from withdrawal. Young would also hit the women or threaten to hit them if they refused to do as Young said or attempted to escape.
With some of the Vermont women, Young also confiscated their cell phones and identification documents as a means of isolating and controlling them once they were in New York. One of Young’s siblings made his apartment in Brooklyn, New York, available for use as part of the sex trafficking scheme. This residence was used as a location to photograph the women for the purpose of creating Backpage advertisements, which he used to advertise some of the women to potential sex buyers. Young also held the women at the Brooklyn apartment where he assaulted them physically and sexually if they refused to engage in commercial sex acts or tried to leave him. Young took the proceeds earned by the women for engaging in forced prostitution and threatened them that if they stopped providing him with these prostitution proceeds, he would harm them further.
The United States Attorney commends the investigative efforts of the Federal Bureau of Investigation, the Southern Vermont Drug Task Force, and the Rutland Police Department, who worked together in this investigation. This case represents the success of interagency work as part of the Department of Justice’s and the State of Vermont’s joint efforts combatting human trafficking.
The United States was represented in this case by Assistant U.S. Attorney Paul Van de Graaf. The defendant is represented by Assistant Federal Public Defender David McColgin.
Daniel Burgess Pleads Not Guilty to Fraud ChargeRead the Press Release
The United States Attorney for the District of Vermont announced that Daniel Burgess, 50, of Stowe, pleaded not guilty on October 31, 2016 in United States District Court in Burlington to a charge of wire fraud. U.S. Magistrate Judge John M. Conroy released Burgess on conditions pending trial, which has not been scheduled.
On October 27, a federal grand jury in Burlington returned a one-count wire fraud charge indictment against Burgess. According to the indictment, Burgess engaged in the business of buying and selling securities through a company he owned named Tucker Financial Services. The indictment alleges that in July 2011, Burgess entered into a contract with a woman from Nevada in which Burgess agreed to try to sell 520,000 shares of a penny stock the woman owned. Under the terms of the agreement, the woman would receive 80% of the gross proceeds of any stock sales and Burgess would be entitled to the remaining 20%.
The indictment charges that between August and October 2011, Burgess sold all 520,0000 shares of the penny stock for a total of about $619,000. The woman’s 80% share of the sale proceeds was about $495,000. Burgess paid her about $246,000, but fraudulently converted the remaining money for his own use.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Burgess faces up to 20 years of imprisonment and a fine of up to $500,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Federal Bureau of Investigation and the Vermont Department of Financial Regulation.
Burgess is represented by Jasdeep Pannu. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Innovative Public-Private Agreement Will Convert Drug Properties to Renovated Housing Stock in Rutland, VTRead the Press Release
The United States Attorney’s Office announced today that the government and its public and private partners have completed an agreement to convert forfeited Rutland drug houses to safe, renovated housing. The government had previously filed suit to forfeit the drug houses, located at 114, 116 and 117 Park Avenue in Rutland, because those properties were used to distribute crack and heroin. The settlement of that lawsuit, announced today, was made possible by an innovative partnership among the federal government, the City of Rutland, Neighbor Works of Western Vermont (“NWWVT”), and other private parties. The settlement agreement will result in the conversion of the blighted properties to high-quality, renovated, owner-occupied single-family residences, duplexes or condominium residential units that will benefit the residents of Rutland.
The United States’ forfeiture lawsuit was brought pursuant to 21 U.S.C. § 881(a)(7), which, under certain circumstances, allows for forfeiture of property used to commit or facilitate the commission of felony drug offenses. The federal forfeiture law also requires owners of such rental properties to take reasonable and safe steps to discourage or prevent drug dealing on the property, such as contacting law enforcement and seeking to evict the tenants involved. In its lawsuit, the government alleged the owners of the Park Avenue properties had failed to take such reasonable steps.
The settlement was made possible by the cooperation of multiple governmental, non-profit, and for-profit parties, including: (1) the United States, which is the plaintiff in the lawsuit; (2) Ericob Vermont Realty Corp, the former owner of the property; (3) the City of Rutland, which was owed property taxes and other fees on the properties; (4) the mortgagee for the property; and (5) NWWVT, which will renovate and resell the properties.
Under the terms of the settlement, the owners of the properties agreed to forfeit them to the United States. After forfeiture to the United States, the United States Marshals Service (“USMS”) agreed to transfer the properties to the City of Rutland. The City of Rutland, in turn, agreed to cancel all of its outstanding taxes, fines, and fees and transfer the properties to NWWVT. NWWVT agreed to rehabilitate the properties and sell them for owner-occupied housing. Under the terms of the City of Rutland’s deed to NWWVT, the three properties may only be used for owner-occupied, single family residences, duplexes, or condominium residential units. Finally, NWWVT agreed to pay $82,500 (minus the USMS’ costs) to the mortgage holder on the properties in return for the mortgage holder discharging its mortgage liens. The USMS agreed to cap its costs at $5,000 and, in fact, kept its costs to approximately $750.
Describing the settlement agreement, United States Attorney Eric Miller said, "This innovative agreement is a 'Win-Win-Win.' Law enforcement has stopped the pervasive drug dealing that once plagued these properties; Rutland has taken yet another step toward reclaiming a beautiful neighborhood; and the non-profit housing community has increased the stock of safe and refreshed housing available to the community it serves."
NWWVT Executive Director Ludy Biddle stated “NeighborWorks is thrilled to have a part in turning these beautiful historic houses into family homes so more children can carve pumpkins and watch movies outdoors together and ride bikes along the creek as part of living in this wonderful neighborhood.”
The forfeited properties are located in the northwest neighborhood of the City of Rutland, where a 2014 housing study found that only about 32% of the residences were owner-occupied. The settlement ensures that these three residential properties will be transformed from ownership by an absentee landlord into owner-occupied, single family residence, duplexes, or condominium residential units, thereby reducing the risk that the properties will again provide shelter for drug dealers. U.S. Attorney Eric Miller noted that this forfeiture case, and the related criminal prosecutions, represent a concerted effort by the federal, state, and local governments to improve the quality of life in this neighborhood and to make it safer for families. U.S. Attorney Miller also praised NWWVT for investing in the renovation and resale of the properties and the U.S. Marshals for their contributions to the resolution of this matter.
The original complaint and the accompanying affidavit show that there were multiple heroin and crack cocaine dealers living in and using the apartments in the Park Avenue buildings starting at least in 2011 and 2012 and continuing into 2015. The documents also show that law enforcement searched several of the apartments in 2013. Law enforcement made six controlled drug purchases from dealers in the apartments and arrested several persons who had been living there. Many former tenants have been convicted and sentenced to significant time in federal prison. They include, among others: Eric Dixon, now serving 87 months in federal prison; Ernest Murray, now serving 60 months in federal prison; Andrew Harris, now serving 60 months in federal prison; Terrance Chenault, now serving 87 months in federal prison; and Joshua Minix, now serving 87 months in federal prison.
The United States Attorney’s Office’s efforts to combat drug trafficking in Rutland have been made possible by the enforcement work of the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rutland Police Department.
The United States is represented in this matter by Assistant U.S. Attorneys James Gelber and Joseph Perella. The former owners of the property are represented by Matthew Shagam, Esq., of Burlington. NWWVT is represented by Gary Kupferer, Esq., and the City of Rutland is represented by City Attorney Charles Romeo.
Federal Grand Jury Adds Conspiracy Charge in Guatemala-To-Vermont Heroin Distribution CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that last week the Grand Jury in Rutland returned a Second Superseding Indictment adding a charge of conspiracy against Marco Antonio Lam Peralta and Diego Walther Anibal Mejia Paredes. The Second Superseding Indictment re-alleged the two previous counts from the First Superseding Indictment, which charged Lam Peralta and Mejia Paredes with possession with intent to distribute more than a kilogram of heroin, and Lam Peralta with harboring an illegal alien. The new conspiracy count alleges that Lam Peralta and Mejia Paredes conspired from July to October 2015 to distribute more than a kilogram of heroin.
If convicted on either heroin-related count, the defendants would face a minimum sentence of 10 years in prison, and a maximum sentence of life in prison. The Second Superseding Indictment is an accusation only; the defendants are presumed innocent until and unless proven guilty.
Court records show that this case arose from an October 2015 shipment from Guatemala destined for the address of a Mexican restaurant in Manchester Center, Vermont. Customs officials determined the shipment contained a large quantity of heroin (more than 40 kilograms, or 88 pounds) hidden in Guatemalan nutritional supplement packaging. Agents from the Department of Homeland Security, working with the Drug Enforcement Administration and the Vermont State Police, arranged for a controlled delivery of this package to the restaurant, where Mejia Paredes was waiting to take delivery.
Court filings indicate that while Mejia Paredes waited for the shipment to be delivered, he was in telephone contact with Lam Peralta, and that while Mejia Paredes waited at the restaurant Lam Peralta contacted the shipping company twice. Additional investigation identified seven previous shipments, similar in size, weight, and customs declarations to the heroin-containing intercepted package, that were sent to addresses associated with Lam Peralta in the Manchester area from Guatemala in the three months preceding the October 2015 arrest. Upon his arrest Mejia Paredes possessed a cell phone which appears to contain messages between him and Lam Peralta discussing one of the earlier shipments, as well as to where the intercepted-package should be addressed.
No trial date has been set. Both Mejia Paredes and Lam Peralta have been ordered detained in the custody of the United States Marshal pending trial. Last week Lam Peralta filed motions with the United States District Court for the District of Vermont, seeking to sever his case from Mejia Paredes’ and the suppression of his post-arrest statements to law enforcement. He also filed a motion asking the Court to reconsider its previous decision that he be detained.
AUSA Michael Drescher is handling the prosecution. Lam Peralta is represented by Ernest M. Allen, III, of Burlington, and Mejia Paredes is represented by Steven Barth, of Burlington.
Press Conference on Forfeiture of Drug Properties in RutlandRead the Press Release
The United States Attorney’s Office will hold a press conference in Rutland on Monday, October 31, 2016 at 11:00 a.m. to discuss the completion of an agreement to forfeit three Rutland residences on Park Avenue and convert them to owner-occupied housing. These properties were forfeited based on significant narcotic drug distribution activity occurring at these addresses. Under the terms of the agreement, the properties have been transferred to NeighborWorks of Western Vermont. NeighborWorks of Western Vermont will renovate them and sell them on the condition that the purchaser maintain them as owner-occupied single-family residences, duplexes or condominium residential units. A separate press release will be issued at the time of the press conference explaining the agreement and its significance in more detail.
Present at the press conference will be representatives from participating federal, state and local law enforcement agencies, the City of Rutland, NeighborWorks of Western Vermont, and Project Vision. Those attending include: United States Attorney Eric Miller, Mayor Christopher Louras, United States Marshal David Demag, Rutland City Police Department Chief, Brian Kilcullen, Lieutenant Paul Favreau, Vermont State Police (Narcotics Investigation Unit), Ludy Biddle, Executive Director, NeighborWorks of Western Vermont, and Joe Kraus, Chairman of Project Vision.
Please contact Laura Harvey at the United States Attorney’s Office, telephone 802-951-6725, if you have any questions.
Matthew Martin Pleads Guilty to Multiple Bank Robberies and Other Violent Crimes Across Vermont and New HampshireRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Matthew T. Martin, 32, from the Springfield area of Vermont, appeared today in federal court in Burlington to plead guilty to a series of violent robberies he committed in 2015 across Vermont and New Hampshire. Martin, who is being detained, appeared before Judge William K. Sessions III to plead guilty to a Superseding Information charging him with eight robberies:
• Count 1: robbery of the People’s United Bank in Brattleboro, Vermont, on December 14, 2015;
• Count 2: robbery of the Heritage Family Credit Union in Ludlow, Vermont, on December 21, 2015;
• Count 3: robbery of the Windsor County South Credit Union in Springfield, Vermont, on January 28, 2015;
• Count 4: robbery of a gas station in Ludlow, Vermont, on February 7, 2015;
• Count 5: robbery of the Citizens Bank in Springfield, Vermont, on February 17, 2015;
• Count 6: robbery of the Greater Falls Pharmacy in Bellows Falls, Vermont, on November 11, 2015;
• Count 7: robbery of the Mascoma Savings Bank in Charlestown, New Hampshire, on December 1, 2015; and
• Count 8: robbery of the TD Bank North in Loudon, New Hampshire, on December 4, 2015.Under the terms of the proposed plea agreement filed with the Court—acceptance of which was deferred until sentencing proceedings on February 1, 2017 in Brattleboro—Martin will be sentenced to 180 months (15 years) imprisonment if the Court accepts the agreement. Under federal law, parole has been eliminated for federal defendants.
As charged in the Superseding Information, on December 14, 2015, Martin committed an armed robbery of a branch of the People’s United Bank in Brattleboro, Vermont. In committing this crime, Martin assaulted others by using a BB gun that resembled a firearm and by using a device that purported to be a bomb. When robbing this bank, like in some of his other robberies, Martin disguised himself as a woman, making it harder for law enforcement to identify him.
A week later, on December 21, 2015, Martin committed an armed robbery, this time of a branch of the Heritage Family Credit Union in Ludlow, Vermont. Again, Martin assaulted others by using a dangerous weapon, specifically, a BB gun that resembled a firearm.
Shortly thereafter, in late December 2015, Martin surrendered to law enforcement after the U.S. Marshals Service publicly named him a “Fugitive of the Week” based on outstanding arrest warrants and his ongoing crime spree. The December 2015 armed robberies committed by Martin were the latest in a string of violent crimes committed by Martin in 2015.
On January 28, 2015, Martin robbed a branch of the Windsor County South Credit Union in Springfield Vermont. During the commission of this robbery, Martin indicated to the teller that he had a gun, although he did not display a firearm.
On February 7, 2015, Martin robbed a Shell gas station in Ludlow, Vermont. During the commission of this robbery, Martin pointed a firearm at the gas station clerk.
On February 17, 2015, Martin robbed a branch of the Citizens Bank in Springfield, Vermont. During the commission of this robbery, Martin again indicated that he had a gun, although he did not display a firearm.
On November 11, 2015, Martin robbed the Greater Falls Pharmacy in Bellows Falls, Vermont. Again, Martin indicated that he had a gun, although he did not display one.
On December 1, 2015, Martin took his crime spree into New Hampshire, committing an armed robbery of a branch of the Mascoma Savings Bank in Charlestown, New Hampshire. During this robbery, Martin assaulted others by displaying a BB gun that resembled a firearm.
On December 4, 2015, Martin committed an armed robbery at a branch of the TD Bank North in Loudon, New Hampshire. Again, Martin assaulted others by displaying a BB gun that resembled a firearm.
The collaborative team that investigated the crimes committed by Martin included federal, state, and local law enforcement agents, including agents from the Federal Bureau of Investigation; the U.S. Marshals Service; the Vermont State Police; the New Hampshire State Police; and the police departments of Brattleboro, Springfield, Ludlow, and Bellows Falls.
In addition to the agents that investigated Martin’s crimes, United States Attorney Eric Miller also thanked law enforcement partners at the U.S. Attorney’s Office in New Hampshire; the Windsor County State’s Attorney’s Office; the Windham County State’s Attorney’s Office; the County Attorney’s Office in Sullivan County, New Hampshire; and the County Attorney’s Office in Merrimack County, New Hampshire, for their cooperation in helping reach a resolution that will result in Martin pleading guilty to each of these crimes and spending significant time in federal prison for his violent crimes across multiple jurisdictions.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Martin is represented by attorney Jordana Levine.
Four Quebec Men Charged in Fraud Scheme Involving Burlington Area ATMsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that four Quebec men were arrested on October 24, 2016 in connection with an investigation into their involvement in a fraud scheme in which the men received cash advances on access devices using compromised account information. Mathieu Baaklini, 21, of Laval, Quebec; Safwan Bensalma, 21, of Laval, Quebec; Brandon Lo, 24, of Laval, Quebec; and Nicolau Manfredi, 21, of Montreal were charged by Criminal Complaint with conspiracy to use access devices fraudulently resulting in the receipt of more than $1,000 in cash. The men appeared before U.S. Magistrate Judge John M. Conroy in Burlington on October 25, 2016 for an initial appearance. If convicted, the men face a maximum possible penalty of five years in prison and fines of up to $250,000.
According to court records, at various times between March and October 2016, the four men traveled from Quebec to Burlington, Vermont, where they used NBT Bank ATM machines in Burlington and Essex to obtain cash advances on cards using stolen account information from Canadian accountholders. ATM transaction records and bank surveillance video shows that on May 24, 2016, approximately $8,800 in cash advances were withdrawn using suspected fraudulent credit cards. Records further show that on May 25, 2016, one of the charged conspirators made $11,000 in wire transfers from Chittenden and Franklin Counties, Vermont to locations in Quebec. ATM transaction records and bank surveillance video further shows that between August 22-25, 2016, NBT Bank incurred approximately $54,000 in suspected fraud activity in the form of 500 suspected cash advances on Canadian and European credit and debit cards.
On October 21, 2016, federal agents executed a search warrant on a storage unit in Williston, Vermont, where they recovered approximately $33,000 in cash, a laptop computer, a card-reading device, and approximately 378 gift cards with markings indicating that they contained bank account information on them.
The men were arrested by Department of Homeland Security Agents at the Highgate Springs, Vermont Port of Entry as they attempted to enter the United States.
The Criminal Complaint is an accusation only and the defendants are presumed innocent until and unless proven guilty. In the event of a conviction, their sentences will be advised by the federal Sentencing Guidelines.
Homeland Security Investigations and U.S. Customs and Border Protection are conducting the investigation into this matter. Assistant U.S. Attorney Kevin J. Doyle is handling the prosecution. Baaklini is represented by Maryanne Kampmann, Esq. Bensalma is represented by Craig S. Nolan, Esq. Lo is represented by Chandler W. Matson, Esq. Manfredi is represented by Douglas G. Kallen, Esq.
James Bristol Pleads Not Guilty to Attempted Bank RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that James Bristol, 44, of Burlington, pleaded not guilty yesterday in United States District Court in Burlington to a charge of attempted bank robbery. U.S. Magistrate Judge John M. Conroy ordered that Bristol be detained pending trial, which has not been scheduled.
According to court records, on June 3, 2016, a man entered the College Street branch of Citizens Bank in Burlington and presented the teller with a note which stated that he had a gun and wanted large denomination bills. The teller told the robber she did not have large bills, only $20s, whereupon the robber took back the note and left the bank without taking any money. Less than an hour later, Burlington Police officers detained Bristol several blocks from the scene of the robbery. They later found that the demand note was in Bristol’s pocket. Bristol was originally charged in state court with attempted assault and robbery, but that charge was dismissed after a federal grand jury indicted Bristol for attempted bank robbery last week.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Bristol faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Allen is represented by the office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Statement by United States Attorney Relating to November 2016 ElectionsRead the Press Release
United States Attorney Eric S. Miller announced today that Assistant United States Attorney (AUSA) William B. Darrow will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Darrow has been appointed to serve as the District Election Officer (DEO) for the District of Vermont, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Miller said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Miller stated that AUSA/DEO Darrow will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 802-951-6725.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 802-863-6316.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Miller said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
New Charges Filed in Northfield Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a grand jury sitting in Burlington has returned a five count Superseding Indictment against five people relating to the arson that occurred in Northfield on December 14, 2015. According to the Superseding Indictment, Howard Hoisington, 32, of Berlin and Jonathan Zampieri, 34, of Montpelier, have been charged with arson with death resulting for the fire that killed Brittany Burt. Howard Hoisington, Jonathan Zampieri, Tammy Wilder, 45, of Berlin, and Kimberly Hoisington, 57, of Berlin, have been charged with conspiracy to commit robbery. Richard Hoisington, 69, of Berlin and Kimberly Hoisington have been charged with conspiracy to distribute crack cocaine. Richard Hoisington and Kimberly Hoisington have been charged maintaining a crack house. Richard Hoisington has been charged with distribution of crack cocaine. The government has determined that it may seek a maximum penalty of life in prison on the arson charge. The remaining charges each carry a maximum possible penalty of 20 years in prison.
Richard and Kimberly Hoisington were arraigned today in federal court and both pleaded not guilty to the charges. Richard and Kimberly were detained pending full detention hearings. The arraignments for Howard Hoisington, Jonathan Zampieri and Tammy Wilder are scheduled for November 10, 2016.
According to court documents, on December 14, 2015, Howard Hoisington, Jonathan Zampieri, Tammy Wilder, Kevin Atwood, Howard’s mother, Kimberly Hoisington, and Tammy’s daughter, Amanda Wilder, traveled to 258 Union Street in Northfield, the residence of Brittany Burt. Howard Hoisington, Zampieri and Atwood went inside Burt’s apartment, doused Burt and her boyfriend, Efren Serrano, with gasoline and lit them on fire. Burt died in the fire and Serrano was seriously injured. Court documents reveal that the group went to Northfield to rob Serrano of his money and drugs, and that gasoline was used as a fear tactic.
Three days after the fire, on December 17, 2015, Howard Hoisington, Jonathan Zampieri and Tammy Wilder were charged with conspiracy to commit robbery. Howard Hoisington, Jonathan Zampieri and Tammy Wilder were detained in December 2015 and are still in custody. Kevin Atwood was later charged with lying to law enforcement. Kevin Atwood is now deceased.
In the course of the investigation into the arson, investigators determined that Richard Hoisington (Howard’s father) and Kimberly Hoisington had conspired to distribute cocaine base throughout 2013 and 2014. During this same period, Richard and Kimberly also maintained a crack house by permitting crack cocaine dealers from the New York City area to stay and deal drugs out of their residence. In August 2016, the Vermont Drug Task Force developed a confidential informant who ultimately purchased crack cocaine from Richard Hoisington at the Hoisington residence in Berlin.
The charges against the defendants are merely accusations and the defendants are presumed innocent until proven guilty.
This case was jointly investigated by the Vermont State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Vermont State Police Lieutenant Colonel Matthew Birmingham stated: “Today’s charges are the result of tireless work by investigators over the past 10 months and would not be possible without the collaborative efforts of those involved, specifically detectives from the Vermont State Police Major Crime Unit, Bureau of Criminal Investigation, arson investigators, federal agents from the ATF, and the Vermont Drug Task Force. I am extremely appreciative of everyone’s willingness to work together towards a common goal and to help provide closure for victims and their families.”
Mickey D. Leadingham, ATF Special Agent in Charge, Boston Field Division stated: “These new charges filed are very serious in nature and something ATF does not take lightly. The ATF Vermont Field Office, Vermont State Police, Vermont Drug Task Force and the U.S. Attorney's Office, have worked vigorously at this investigation, leading to these new charges and I commend the efforts by all the agencies involved.”
The United States is represented in this case by Assistant United States Attorney Wendy G. Fuller. Howard Hoisington is represented by Assistant Public Defender Steven Barth. Jonathan Zampieri is represented by Robert Katims. Tammy Wilder is represented by Ian Carleton. Kimberly Hoisington is represented by Peter Langrock. Richard Hoisington is represented by Mary Kehoe.
DEA and Partners Hold Prescription Drug Take Back Day SaturdayRead the Press Release
Thousands of communities participate in this weekend’s event
Boston, MA – This weekend DEA will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday October 22 between 10 a.m. and 2 p.m. the public can dispose of their expired, unused, and unwanted prescription medications at one of 566 collection sites throughout New England, operated by 505 local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department.
America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers. 6.4 million Americans age 12 and over—2.4 percent of the population—abuse prescription drugs, according to the 2015 National Survey on Drug Use and Health released last month, more than abuse cocaine, heroin, hallucinogens, and methamphetamine combined. Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The majority of prescription drug abusers report that they obtain their drugs from friends and family, including from the home medicine cabinet.
“The diversion of prescription pain killers contribute to the widespread abuse of opiates, is the gateway to heroin addiction, and is devastating our communities,” said DEA Special Agent in Charge Michael J. Ferguson. "Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse."
Vermont’s United States Attorney, Eric Miller, added, “The misuse and abuse of prescription opioids touched off Vermont’s current heroin epidemic and continues to contribute to overdose deaths and injuries. Vermonters can play an important role in protecting public health and safety by cleaning out their medicine cabinets and safely disposing of prescription drugs they no longer need.”
Last April, during its 11th Take Back Day, the DEA New England Field Division (NEFD) participated in the Drug Take-Back Day and over the course of four hours 86,900 pounds of expired, unused, and unwanted prescription drugs were collected at 551 collection sites throughout New England. The following was the breakdown of collected weights for the six New England states:
Connecticut 8,815.50 lbs.
Massachusetts 25,028 lbs.
Maine 31,960 lbs.
New Hampshire 12,560 lbs.
Rhode Island 3,460 lbs.
Vermont 5,094.60 lbs.
Total for NEFD 86,918.1 lbs.The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they enter their zip code. Or they can call 800-882-9529. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.
Jury Convicts New York Man for Selling Oxycodone in Vermont over A Six-Year PeriodRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on October 13, 2016, a Burlington jury convicted Michael J. Foreste, aka “Beast,” of Valley Stream, New York of 10 charges related to his oxycodone trafficking in Vermont over a six-year period. Specifically, the jury convicted Foreste, age 36, of (1) conspiring to distribute oxycodone in Vermont from about 2008 through June 2014; (2) seven counts charging distribution of oxycodone; and (3) two counts charging money laundering. The jury returned a not guilty verdict relating to an additional count charging oxycodone distribution. The verdict was returned following a trial spanning two weeks. Senior United States District Judge William K. Sessions III presided over the trial.
The Fourth Superseding Indictment charged Foreste with working with others to sell oxycodone from 2008 through June 2014, including Andre Clarke, Carol Clarke and Dannis Hackney. During that period, Andre Clarke served as a New York City police officer. Earlier this year, Clarke pled guilty to his role in the conspiracy and resigned from the NYPD. His sentencing is scheduled for November 7. In September 2016, Hackney pled guilty to several charges relating to his involvement in the oxycodone scheme. He is also awaiting sentencing. Carol Clarke is under federal indictment for conspiring to distribute oxycodone and awaiting trial.
According to prosecutors, Carol Clarke, who lived in Brooklyn, received a monthly prescription for hundreds of oxycodone to treat her sickle cell disease. She diverted the pills to her brother, Andre Clarke, of Long Island, who supplied them to Foreste. In the early part of the conspiracy, Foreste brought the pills to Vermont himself and sold them with the help of certain local addicts. In April 2012, however, Vermont State Police stopped Foreste in a vehicle on Interstate 91 North and seized 659 oxycodone pills from his person. Based on this event, Foreste sustained a federal conviction in 2013 for possession with intent to distribute oxycodone. He remained on pretrial release throughout that earlier case. After April 2012, Foreste began working with Hackney, of Chittenden County, who sold Foreste’s pills to Burlington area addicts. Foreste eventually began mailing the pills to Hackney via the U.S. Mail Express Mail system. The Clarkes, Foreste, and Hackney transferred drug proceeds using various bank accounts, resulting in Foreste’s two convictions for money laundering. The evidence presented at trial demonstrated that Foreste’s drug distribution in Vermont yielded him illicit profits in excess of $500,000 over the course of the conspiracy. Foreste and Hackney have been in custody since their arrests in June 2014.
Foreste’s sentencing is expected to occur in approximately four months, but is not yet scheduled. He faces a maximum term of imprisonment of twenty years on each count.
The conviction of Foreste was the culmination of a multi-agency investigation and prosecution that began in mid-2014. The collaborative effort was spearheaded by Homeland Security Investigations, with assistance from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Vermont State Police, the Burlington Police Department, and the NYPD. Foreste is represented by Mark Kaplan, of Burlington, and Natasha Sen, of Brandon. The case was prosecuted by Assistant United States Attorneys Christina E. Nolan and Kevin J. Doyle.
CFO of Berlin, New Hampshire Business Sentenced in Multi-Million Dollar Bank Fraud CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Steven D. Griffin, 59, of Berlin, New Hampshire, was sentenced by Chief Judge Christina Reiss yesterday based on his conviction for making a false statement to a financial institution. Chief Judge Reiss sentenced Griffin to 24 months of home confinement as part of a five-year term of supervised release. The court also sentenced Griffin to pay $500,000 in restitution.
As part of the sentencing, Griffin admitted to submitting or causing to be submitted inflated figures for assets of Isaacson Structural Steel, Inc., including inventory, to Passumpsic Savings Bank, and other banks participating in loans totaling over $12 million, including a $2 million loan guaranteed by the Small Business Administration in late 2010. Griffin was part owner and Vice President and CFO of ISSI, which before its bankruptcy was one of the largest businesses in the North Country. ISSI fabricated steel used in commercial construction. It entered into construction contracts to provide not only the steel for commercial buildings but also to provide subcontractor services, principally the erection of the steel. ISSI purchased steel and fabricated the various pieces of steel needed for each contract at its Berlin, New Hampshire location and then shipped the steel to building sites. Early last year, ISSI’s CEO Arnold Hanson pleaded guilty to conspiring to submit false financial statements. Sentencing for Hanson is scheduled for November 23, 2016.
According to court records, between August 2007 and April 2011, ISSI officers regularly submitted false and inflated figures to the banks regarding the value of ISSI’s assets. ISSI submitted these false statements about assets in borrowing base certificates and financial statements. ISSI regularly inflated its assets by a million dollars or more. For example, in August 2007, ISSI officers discussed, and then submitted to the bank, inflated figures for the amount of money owed to ISSI for work done in connection with 303 Third St., a construction project in Boston. In early 2011, officers participated in the submission of ISSI’s draft financial statement for the financial year 2010, which contained significant overstatements about ISSI’s inventory. That financial statement had an inventory representation of approximately $12 million dollars. In fact, the value of the inventory was less than $2 million. Inventory was thus inflated by over $10 million. In April 2011, the banks learned about issues with ISSI’s inventory figures. By June 2011, ISSI was in bankruptcy, and its assets were later liquidated. In the end, the banks lost millions of dollars as a result of the fraud.
At the sentencing hearing, Griffin asked the Court to sentence him below the advisory sentencing guideline range of 51 to 63 months in jail in light of his community service and severe physical illnesses. Chief Judge Reiss agreed that in light of a variety of factors, including Griffin’s health, a jail sentence should not be imposed. The Court imposed a limit on Griffin’s freedom by imposing a lengthy period of home confinement.
The United States is represented in this matter by Assistant U.S. Attorneys Paul Van de Graaf and Timothy Doherty. Hanson is represented by George Ostler, Esq. The investigation, which is ongoing, is being conducted by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Deposit Insurance Corp., and the Office of Inspector for the Small Business Administration.
Burlington Man Sentenced to 30 Months Imprisonment for Failing to Update His Residence on the Sex Offender RegistryRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Eric Weaver, 35, of Burlington, was sentenced to thirty months’ imprisonment by United States District Judge J. Garvan Murtha sitting in Brattleboro, Vermont. The term of imprisonment will be followed by a five-year period of supervised release by the U.S. Probation Office. Weaver previously pled guilty to failing to update his residence on the sex offender registry under the federal Sex Offender Registration and Notification Act.
Weaver was required to update his residence on the Sex Offender Registry based on his prior conviction for rape in Philadelphia, Pennsylvania in 1998, which occurred when he was 16 years old. According to court records Weaver moved to Vermont in the early summer of 2014 from Philadelphia and failed to update his residence on either the Vermont or Pennsylvania sex offender registries.
According to court records, after Weaver moved to Vermont he also started selling heroin in the Burlington area. In late November 2014, the State’s Attorney’s Office for Chittenden County charged Weaver with Aggravated Domestic Assault with a Deadly Weapon relating to a November 17, 2014 assault on his girlfriend at their 80 Pearl Street, Burlington apartment. Weaver pled guilty to that offense and received a 16-30-month state sentence. Weaver’s state sentence will be completed in May 2017. Judge Murtha ordered that the 30-month federal sentence be served concurrently to the remaining portion of the state sentence, beginning on October 3, 2016.
This case was investigated by the United States Marshals Service with assistance by the Burlington Police Department. The United States is represented by Assistant U.S. Attorney Joe Perella. Weaver is represented by Michael Desautels, Esq. of the Federal Public Defender’s Office.
Hyde Street Shooting Investigation Leads to Arrest of New York Man on Gun and Drug CrimesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Quincy Alexander, 28, of Brooklyn, New York, was charged today in a two-count complaint filed in federal court with being a felon in possession of a firearm and with possession with intent to distribute cocaine base. Alexander is scheduled to appeared before U.S. Magistrate Judge John M. Conroy at 4:00 p.m. today.
According to the affidavit in support of the criminal complaint, Burlington Police came into contact with Alexander during their investigation of the September 28, 2016, shooting at 31 Hyde Street in Burlington, Vermont. Officers approached Alexander on September 29, 2016, as he was sitting in a vehicle matching the description of the vehicle involved in the shooting. After a trained narcotics dog alerted to the presence of narcotics, law enforcement, working with the Office of the Chittenden County State’s Attorney, obtained a search warrant for the vehicle from the Chittenden County Superior Court. The resulting search located two firearms, a 9 mm pistol and a .38 caliber revolver, and approximately 80 grams of crack cocaine packed for further distribution. During the investigation of the 31 Hyde Street shooting, police recovered 9 mm bullets within residences that had entered the premises through the exterior of the building.
Records checks indicated Alexander had two prior felony convictions for Grand Larceny from New York, prohibiting him from possessing a firearm.
Shortly after his arrest, Alexander complained of chest pains and was taken by Burlington Police to the Emergency Department at UVM Medical Center for treatment. Although he remained handcuffed while in the Emergency Department, Alexander attempted to escape, fleeing his examination room. He was re-apprehended by Burlington Police officers before he could leave the facility.
The complaint filed today is an accusation only and the defendant is presumed innocent until and unless proven guilty. If convicted, Alexander could face up to ten years in prison for his possession of a firearm as a felon, and up to twenty years for his possession with intent to distribute crack cocaine.
“The combination of drugs and guns is a lethal one that has no place in the Burlington community,” United States Attorney Eric Miller said. He commended the Burlington Police Department and the Chittenden County State’s Attorney’s Office for their quick work in apprehending Alexander, and thanked the U.S. Drug Enforcement Administration and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives for their support of the investigation.
"We will not tolerate gun violence in Burlington and our response to it will always be relentless," said Brandon del Pozo, the Burlington Chief of Police. "I'd like to thank our officers for their fast and thorough search for the suspect's vehicle and the safe and careful work they did once it was located. We're grateful to the US Attorney's office and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance. We're fortunate to have this team protecting our city."
Mickey D. Leadingham, Special Agent in Charge, ATF Boston Field Division, stated,
"ATF has a strong presence in Burlington, Vermont, and works closely on combatting gun violence with the Burlington Police Department and the U.S. Attorney’s Office. ATF will continue to build on these relationships in its efforts to curb gun violence, along with the illegal possession of firearms."AUSA Michael P. Drescher represents the United States. The Office of the Federal Public Defender represents Alexander.
Sally Kirby Imprisoned for Hunger Free Vermont EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Sally Kirby, 61, of Essex Junction, was sentenced today in United States District Court in Burlington to 15 months of imprisonment following her guilty plea to a federal forgery charge. U.S. District Judge William K. Sessions III also ordered that Kirby serve three years of supervised release following completion of her prison term and pay restitution of more than $178,000. The court directed Kirby to surrender to the Bureau of Prisons on October 25 to begin serving her sentence.
Last April, the United States Attorney's Office filed a one-count information charging Kirby with forging checks of her employer, Hunger Free Vermont. Kirby pled guilty to that charge in May. According to the information, Hunger Free Vermont is a non-profit educational and advocacy organization which provides nutrition education and access to nutrition programs to Vermont's children, families and communities. In 2004, Sally Kirby was hired as the Director of Finance for HFV. Her duties included handling payroll, accounts payable, financial statements and grant allocations.
According to the information, between June 2009 and September 2015, Kirby embezzled about $165,000 from the organization. She did that primarily by issuing HFV checks to herself without authorization, then forging the signature of HFV's executive director on the checks. She deposited many of the checks into a personal credit union account she maintained. Kirby attempted to conceal her embezzlement by altering some entries in HFV's accounting system to make it appear as though checks she issued to herself had been made payable to vendors. The embezzlement was discovered last October and Kirby was promptly fired.
This case was investigated by the Federal Bureau of Investigation.
Kirby is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Douglas Allen Pleads Not Guilty to Merchants Bank RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that Douglas Allen, 58, of Burlington, pleaded not guilty today in United States District Court in Burlington to a charge of bank robbery. U.S. Magistrate Judge John M. Conroy ordered that Allen be detained pending trial, which has not been scheduled.
According to court records, on May 21, 2016, a man wearing a hat and sunglasses entered the College Street branch of Merchants Bank in Burlington and presented the teller with a note which asked for $6000. The teller gave the robber approximately $1780. Burlington Police officers arrested Allen five days later, on May 26, after receiving several tips from persons who were able to identify Allen from bank surveillance pictures. Allen was originally charged in state court with grand larceny, but that charge was dismissed after a federal grand jury indicted Allen for robbery last week.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Allen faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Allen is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Sex Offender Sentenced to 10-Year Prison TermRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on August 29, 2016, Michael E. Fisher was sentenced to 10 years in federal prison by Chief United States District Court Judge Christina Reiss.
In February and March, 2015, Fisher contacted several Burlington area middle school girls, aged 12-14, through Facebook. The girls reported the contacts to their parents and to the Burlington Police Department. Fisher was a registered sex offender at the time, based upon a prior Vermont felony conviction. In response, Vermont’s Internet Crimes Against Children Task Force (“ICAC”) initiated an investigation. ICAC official and South Burlington Police Sergeant Andrew Chaulk made undercover contact with Fisher on Facebook, posing as a 13-year-old middle school student. Over the course of three days, Fisher sent a multitude of Facebook messages to the purported student, pressing her to have sex with him. He urged her to meet him at Dorset Street Park in South Burlington at Noon on April 3, 3015, to have sex in a public restroom. Upon arrival at the park on April 3 at Noon, he was arrested by a U.S. Secret Service agent assisting in the investigation, and Sgt. Chaulk.
In March, 2016, Fisher was convicted after a jury trial in Burlington of attempting to persuade, induce, entice or coerce a minor to engage in illegal sex, using a facility of interstate commerce.
Under the U.S. Sentencing Guidelines, based upon the offense and his recidivism, Fisher’s imprisonment range was 151-188 months. The federal statute under which he was convicted provided for a mandatory minimum 10 years of imprisonment. At a sentencing hearing on August 29, Chief Judge Reiss imposed the 10-year term, to be followed by 10 years of supervised release.
Fisher has been in custody since his 2015 arrest. The United States Attorney thanked the Burlington Police Department, the South Burlington Police Department, ICAC, and the U.S. Secret Service for their work on the case. Fisher was represented by Federal Public Defender Michael Desautels. The United States was represented by Assistant U.S. Attorneys William Darrow and Kunal Pasricha.
Man Admits Defrauding VA with False Claim That He Served in Viet NamRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that David Vincent Borry, age 58, pleaded guilty yesterday before U.S. District Court Judge J. Garvan Murtha in Brattleboro to knowingly defrauding a health care plan administered by the U.S. Department of Veterans Affairs.
A Grand Jury Indictment filed on February 11, 2016, alleged that Borry obtained medical services from the Veterans Administration Medical Center in White River Junction, Vermont, by falsely claiming to be a veteran of the United States Army. In Court yesterday before Judge Murtha, Borry admitted claiming to be an Army veteran who served in the Vietnam War in order to obtain veterans benefits. Judge Murtha ordered a presentence investigation and scheduled sentencing for January 17, 2017. Borry is at liberty subject to pretrial release conditions.
The case was investigated by the Veterans Administration Office of the Inspector General, Criminal Investigation Division, and the Veterans Administration police in White River Junction. Borry is represented by Federal Public Defender Michael Desautels. The United States is represented by Assistant U.S. Attorney William Darrow.
Brett Ferrell of New York Indicted in Vermont for Interstate Travel with Intent to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Brett Ferrell, age 31, from New York, has been arrested and indicted for traveling in interstate commerce with the intent to engage in illicit sexual conduct with a minor. Ferrell made his initial appearance in federal court in Burlington on August 30, 2016 and he was arraigned on September 12, 2016. Magistrate Judge John M. Conroy ordered Ferrell detained pending trial.
According to court papers, in mid-August 2016, Ferrell made multiple postings on Craigslist seeking to meet girls under the age of 18 for the purpose of sex. Law enforcement officers responded to one of the Craigslist postings using an undercover persona of a 13-year-old girl. In multiple communications with someone he believed was a 13-year-old girl from Vermont, Ferrell expressed an interest in meeting to have sex. Ferrell, who lived in New York, indicated that he would travel to Vermont for such a meeting, and went as far as to make plans to meet at a particular hotel at a particular time for sex with this supposed 13-year-old. On August 29, 2016, Ferrell traveled from New York to Vermont for this illicit encounter, at which point he was arrested by law enforcement officers at the designated meeting place.
The charges against Ferrell are merely accusations and Ferrell is presumed innocent until proven guilty. If convicted, Ferrell faces a maximum penalty of 30 years in prison, although his actual sentence will be advised by the federal sentencing guidelines.
The collaborative team investigating the case against Ferrell includes law enforcement agents from Homeland Security Investigations in Vermont and New York, agents from Custom and Border Patrol, and agents from the Internet Crimes Against Children Task Force.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Ferrell is represented by Assistant Federal Defender Elizabeth K. Quinn.
Ferrell’s prosecution is part of Project Safe Childhood, a nationwide Department of Justice initiative designed to protect children from online exploitation and abuse. In Vermont, federal prosecutors are teaming up with federal, state, and local law enforcement agents to identify, investigate, and prosecute those individuals who prey upon children and those that distribute, receive, or manufacture child pornography. For more information on Project Safe Childhood, including resources on internet safety education, please visit www.usdoj.gov/psc.
Vermont Woman Sentenced to 25 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on September 8, 2016, Rebecca Lawrence, 32, of Winooski, Vermont, was sentenced to 25 months in federal prison after her guilty plea to charges that she distributed heroin. U.S. District Court Judge Geoffrey W. Crawford also ordered that Lawrence serve three years of supervised release after her prison term.
According to court records, in 2014, Lawrence was convicted in the Southern District of New York on charges that she conspired to distribute controlled substances. For this offense, she was sentenced to a term of time served followed by five years of supervised release. In March of 2015, responsibility for Lawrence’s supervision was transferred to the District of Vermont.
In November and December of 2015, while Lawrence was still serving her term of federal supervised release, the Vermont State Police Drug Task Force used a confidential informant to conduct a series of controlled purchases of heroin from her. She was arrested on December 18, 2015 and charged with distributing heroin in violation of the Controlled Substances Act. Lawrence pled guilty to this offense on May 6, 2016.
For her crime, Lawrence faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Lawrence receive a prison term of between 21 and 25 months. The Guidelines also recommended that Lawrence receive an additional prison term for violating her federal conditions of release. Judge Crawford decided that Lawrence should serve 15 months for her drug offense followed by an additional 10 months for violating her federal conditions of release, resulting in a total sentence of 25 months in prison. In determining the appropriate sentence, Judge Crawford considered the gravity of the offense and Lawrence’s criminal record, among other factors.
United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force and the Burlington Police Department. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Lawrence is represented by Michael Shklar from Newport, New Hampshire.
Burlington Man with History of Violating Abuse Prevention Orders Sentenced to 25 Months Imprisonment for Federal Firearms ViolationRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Mark Caron, 53, of Burlington, was sentenced to twenty-five months imprisonment by United States District Judge Geoffrey Crawford. The term of imprisonment will be followed by a three-year period of supervised release by the U.S. Probation Office. Caron had previously pled guilty to possessing a firearm after having been convicted of a felony offense, in this case six prior felony offenses. The Indictment charged that three of the defendant’s six prior felony offenses were violations of state abuse prevention orders.
According to court records, on September 7, 2015, Caron stole a handgun from his son in Burlington and then traveled to the Swanton, Vermont residence of a friend of Caron’s ex-girl-friends. Once there, Caron accused the friend of having contact with Caron’s ex-girlfriend. The Government alleged that Caron then threatened to shoot this man while Caron was brandishing a firearm. The Government also alleged that Caron had previously threatened his girlfriend, stating he was going to “bash her head in.”
Caron had previously been sentenced in Superior Court in Franklin County to a 58-day sentence on a plea of guilty to a state charge of Aggravated Assault with a Deadly Weapon relating to the September 7, 2015 assault. In choosing to prosecute the case federally, United States Attorney Eric Miller stated, “Domestic abuse and the illegal possession of firearms are a potentially deadly combination. When convicted felons – particularly those with a proven history of domestic abuse – illegally possess and use guns to threaten others, we will continue to pursue federal charges and enhanced federal penalties to protect Vermont’s communities.”
The United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives have been working closely with the Vermont Attorney General’s Office to better coordinate the combined state and federal response to the particularly dangerous combination of illegal firearm possession and domestic violence.
Vermont’s Attorney General, Bill Sorrell, lauded the state and federal cooperation that led to Mr. Caron’s federal conviction, “It's important that state and federal authorities work together to address domestic violence given the relatively high proportion of homicides in our state that are domestic-violence related. It's also important that we work together to enforce orders of protection, and to ensure those prohibited persons who violate state and federal law by continuing to possess firearms experience serious consequences for their behavior given the documented risk of lethality this poses for domestic violence victims.”
Mickey D. Leadingham, Special Agent in Charge of the ATF’s Boston Field Division, added, "Domestic violence with the threat or use of a firearm is something we take very seriously. We will continue to partner with the U.S. Attorney’s Office and the Vermont Attorney General’s Office to arrest and prosecute the individuals who commit these acts while being prohibited from possessing firearms under federal law."
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Swanton Police Department. The United States is represented by Joe Perella and Caron is represented by Steven Barth, Esq. of the Federal Public Defender’s Office.
Neiman Groce Imprisoned for Retirement Plan EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Neiman Groce, 31, of Poultney, was sentenced today in United States District Court in Burlington to 18 months of imprisonment following his guilty plea to a charge of wire fraud. Chief U.S. District Judge Christina Reiss also ordered that Groce serve three years of supervised release following completion of his prison term and pay restitution of nearly $75,000. The court directed Groce to surrender to the Bureau of Prisons on October 25 to begin serving his sentence.
On December 2, 2015, a federal grand jury in Rutland returned a three-count indictment charging Groce with embezzlement, wire fraud and forgery. According to the indictment, between approximately 2008 and late 2012, Groce was employed by Rutland Plywood Corporation. In 2012, Groce was promoted to Human Resources Director and assumed responsibility for administering the company's section 401(k) employee retirement plan. According to the indictment, between June and November 2012, Groce tried to embezzle approximately $88,000 from the retirement accounts of five former Rutland Plywood employees. Groce accomplished the embezzlement by forging employees' signatures on benefit plan withdrawal forms and faxing the forms to the company which managed the retirement plan. The forged forms contained directions that the money withdrawn from the employees' accounts be electronically transferred to one of two bank accounts that Groce controlled. During that time, more than $75,000 in retirement plan funds was actually transferred into Groce's accounts.
The indictment charged Groce with stealing an additional $3,000 from Rutland Plywood by forging and altering a series of company checks to third parties to make them payable to himself, then cashing those checks.
Groce pled guilty to the wire fraud charge last May.
This case was investigated by the Federal Bureau of Investigation and the Vermont State Police.
Groce is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Portuguese National Pleads Not Guilty to Reentering United StatesRead the Press Release
The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Paulo Abelha, 49, a citizen of Portugal, pleaded not guilty today in United States District Court in Burlington to an indictment which charges him with reentering the United States after having been twice deported. U.S. Magistrate Judge John M. Conroy ordered that Abelha be held without bail pending trial, which has not been scheduled. Abelha has been detained since his arrest on August 20.
According to court records, Abelha is a citizen of Portugal who moved to the United States in 1971 with his parents. In 1994, after he was convicted of violent felonies and served a prison sentence in Massachusetts, Abelha was deported to Portugal. In July 2016, federal officials learned that Abelha had at some point come back to the United States illegally and was living in Fall River. He was taken into custody and again deported to Portugal on August 16.
Three days later, on the evening of August 19, Canadian law enforcement officers notified Border Patrol agents in Vermont that a man had been dropped off at a place just north of the border and had then walked into the United States near Alburgh. Border Patrol agents went to the area and soon found Abelha, who was carrying a backpack. Documents in Abelha's possession showed that he had flown into Montreal from Portugal earlier that day. Abelha did not enter the United States through a port-of-entry and is ineligible to return to the United States.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Abelha faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Abelha is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.Dennis Crawford Pleads Not Guilty to Wire FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Dennis Crawford, 47, of Newport, pled not guilty last Friday in U.S. District Court in Burlington to a charge of wire fraud. U.S. Magistrate Judge John M. Conroy released Crawford on conditions pending trial, which has not been scheduled.
On July 25, 2016, a federal grand jury returned a one-count indictment charging Crawford with wire fraud. According to the indictment and other court records, in April 2015, Crawford was appointed power-of-attorney for his elderly step-father. Under the terms of the power-of-attorney, Crawford was permitted to make financial decisions on his step-father's behalf. After acquiring the power-of-attorney, Crawford placed his name on bank accounts his step-father held. According to court records, between June and August 2015, Crawford transferred approximately $200,000 from his step-father's bank accounts to accounts controlled only by Crawford. Crawford allegedly used much of this money to buy several vehicles for himself and family members, as well as furniture and other household items. In August 2015, the Vermont State Police learned Crawford may have been abusing his step-father and started an investigation. Crawford's power-of-attorney was revoked, and in November 2015, Crawford was charged in state court with financial exploitation of a vulnerable adult. The state charge was dismissed when the federal grand jury returned its indictment.
If convicted, Crawford faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.
Crawford is represented by the Office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Nine-Time Felon Sentenced to over 6 Years in Prison for Illegal ReentryRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jose Ygnacio Sosa-Ramirez, 55, a citizen of the Dominican Republic, was sentenced yesterday for illegally reentering the United States after having been previously removed, and violating the terms of his supervised release on a prior federal conviction. Chief District Judge Christina Reiss sentenced Sosa-Ramirez to a 50-month term of incarceration for having illegally reentered the United States, and a consecutive 24-month term of incarceration for violating the terms of his supervised release, resulting in a total sentence of 74 months.
According to Court records, in June of 2014, Sosa-Ramirez was convicted of conspiracy to distribute more than a kilogram of heroin in the United States District Court for the Southern District of New York, sentenced to time served (approximately 23 months), and a 2-year term of supervised release. He was subsequently deported from the United States on October 8, 2014. On October 19, 2015, Sosa-Ramirez entered the United States at the Highgate Port of Entry in Highgate Springs, Vermont, as a passenger aboard a Greyhound Bus. Sosa-Ramirez presented the Customs and Border Protection Officer an official United States passport in the name of Walter Kahigas. The Customs and Border Protection Officer referred Sosa-Ramirez to secondary inspection, after discovering a database alert associated with that identity. Sosa-Ramirez subsequently admitted the Walter Kahigas passport was obtained through fraudulent statements. Investigation of Sosa-Ramirez’s criminal history revealed he had nine prior felony convictions, including convictions for gun trafficking, document fraud, possession with intent to distribute heroin, and conspiracy to distribute heroin.
United States Attorney Eric S. Miller commended the efforts of United States Customs and Border Protection, in the arrest and prosecution of Sosa-Ramirez.
Sosa-Ramirez was represented by Bradley Stetler, Esq. The United States was represented by Assistant U.S. Attorney Jonathan A. Ophardt.
Ieshia Jones of Winooski Sentenced for Heroin DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Ieshia Jones, 27, of Winooski was sentenced today to time served, followed by a three-year term of supervised release. Chief Judge Christina Reiss further ordered that Jones be subject to a curfew with location monitoring for a term of six months.
According to court records, law enforcement conducted four controlled purchases totaling 117 bags of heroin from Jones in April and May 2014 in St. Albans, Winooski, and Burlington. During an attempted controlled buy of heroin from Jones on May 13, 2014 in South Burlington, Jones took the informant’s money and fled the area in her car without providing the heroin. Law enforcement located and arrested Jones shortly thereafter in Essex. Upon arrest, Jones admitted that she had distributed heroin to the informant and others in the past.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of United States Border Patrol, the Federal Bureau of Investigation, and the Winooski Police Department. Assistant U.S. Attorney Kevin J. Doyle handled the prosecution of this case. Jones was represented by Steven L. Barth of the Federal Defender’s Office.
Xanax Smuggler Sentenced to One Year ImprisonmentRead the Press Release
The Office of the United States Attorney for the District of Vermont announced Cedrick Bourgault-Morin, 22, of Quebec, Canada was sentenced yesterday for smuggling 281,307 pills of Aprazolam (commonly known as Xanax) into the United States. Chief United States District Judge Christina Reiss sentenced Bourgault-Morin to 12 months and 1 day of imprisonment, to be followed by one year of supervised release.
According to court records, at approximately 1:00 am on January 13, 2016, three United States Border Patrol agents responded to the area of the international border near the village of North Troy, Vermont. Agents observed Bourgault-Morin wearing white camouflage clothing, and walking on the tracks. Bourgault-Morin was pulling a plastic sled behind him, loaded with a large object wrapped in white camouflage. As Bourgault-Morin began to conceal the sled and its contents with snow, all three agents approached him, apprehended him, and seized the sled. The agents discovered a large duffle bag on the sled. A search of Bourgault-Morin’s person revealed he did not possess a wallet or any identification documents, no cellular telephone, or other common items. Other than his clothing, the only item on the defendant’s person was a silver folding lock-blade knife.
Upon further inspection at the Newport Station, the agents discovered the duffle to contain 300 vacuum-sealed plastic bags, containing a total of 281,307 pills. All of the pills were 2mg oblong bars that were scored and divisible into four .5mg segments. Each pill bore markings consistent with those used to identify Xanax, which is a brand name for Aprazolam. Aprazolam is a benzodiazepine class of psychoactive drug typically prescribed as an anti-anxiety medication, and a Schedule IV drug. The 300 bags of pills weighed approximately 182.82 pounds, and had a value of approximately $1.6 million.
This matter was investigated by the United States Border Patrol, with assistance from the Drug Enforcement Administration. The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
The United States was represented by Assistant U.S. Attorney Jonathan A. Ophardt. Bourgault-Morin was represented by Assistant Federal Public Defender David L. McColgin.Christopher Loomis of Colchester Indicted for Possession of Child PornographyRead the Press Release
The United States Attorney’s Office for the District of Vermont announced that Christopher Loomis, age 26, of Colchester, Vermont, was indicted on August 11, 2016 by a federal grand jury for possession of child pornography involving minors under the age of 12. Loomis is scheduled to be arraigned on August 25, 2016 in federal court in Burlington.
According to court documents, federal agents began investigating Loomis based on leads generated in a multi-year investigation into individuals who signed up to a website operating in a foreign country that has been used to store and exchange child pornography. Agents subsequently seized a computer and multiple hard drives from Loomis, which revealed that Loomis was in possession of a significant number of child pornography files, including files depicting minors under the age of 12 engaging in sexually explicit conduct.
The charges against Loomis are merely accusations and he is presumed innocent until and unless he is proven guilty. If convicted, Loomis faces a statutory maximum penalty of up to 20 years in prison and up to lifetime supervised release, although the sentence will be advised by the federal sentencing guidelines and determined by the Court.
This prosecution is part of Project Safe Childhood, a nationwide Department of Justice initiative designed to protect children from online exploitation and abuse. In Vermont, federal prosecutors are teaming up with federal, state, and local law enforcement agents to identify, investigate, and prosecute those individuals who prey upon children and those that distribute, receive, or manufacture child pornography. For more information on Project Safe Childhood, including resources on internet safety education, please visit www.usdoj.gov/psc.
The collaborative team investigating this case includes law enforcement agents from Homeland Security Investigations, the Vermont Attorney General’s Office, and the Internet Crimes Against Children Task Force.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Loomis is represented by Federal Public Defender Michael L. Desautels.
Vermont Man Charged with Distributing HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont today announced federal criminal charges against Michael Prescott, 52, of Chittenden County, Vermont. Prescott is charged with distributing heroin on March 2 and March 7, 2016.
Prescott was arrested by law enforcement on July 18, 2016, appeared before Chief U.S. District Judge Christina Reiss in Burlington the same day, and entered a not guilty plea to the charges. At a detention hearing on July 19, 2016, Judge Reiss ordered Prescott detained pending his criminal trial. Judge Reiss denied the defendant’s motion to reconsider the detention order on August 9, 2016. If he is convicted, Prescott’s sentence will be advised by the federal sentencing guidelines. The pending charges against the defendant are merely accusations, and he is presumed innocent until and unless he is proven guilty.
United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
This case is being investigated by the Drug Enforcement Administration. The United States is represented by Assistant United States Attorney Timothy C. Doherty, Jr. Prescott is represented by Federal Public Defender Michael Desautels.
Medical Device Company and Executives Plea to an Information Relating to Misbranded Medical DevicesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that two Vermont men pled guilty on June 30, 2016 in U.S. District Court in Rutland to information charging them with Class A Misdemeanors relating to the introduction of misbranded medical devices into interstate commerce. AADCO Medical, Inc., a medical device supply company operating out of Randolph, has additionally pled guilty to the same charge.
According to the information and plea agreements filed with the Court, from May 2011 through August 2012, AADCO Medical, Robert Marchione, and Anthony Skidmore allegedly introduced and caused the introduction and delivery of six medical lamps as surgical lamps without having complied with the Food and Drug Administration’s requirements that notice be submitted to the FDA prior to the introduction of such devices into interstate commerce. The misbranded lamps were sold to medical providers in New York, N.Y., Buffalo, N.Y., and Chapel Hill, N.C.
AADCO was ordered to pay a total of $53,070, which included restitution to the victims of $47,945.00, a criminal fine of $5,000.00, and an assessment of $125.00. Mr. Marchione and Mr. Skidmore were each fined $5,000.00.
“The FDA’s regulatory requirements for medical devices are designed to ensure the health and safety of patients,” said Jeffery J. Ebersole, Special Agent in Charge, FDA Office of Criminal Investigations’ New York Field Office. “The FDA will continue to aggressively pursue those who place patient’s health at risk for their own profit by compromising the integrity of the legitimate supply chain.” United States Attorney Eric S. Miller commended the investigative efforts of the FDA and Homeland Security.
The matter was investigated by Special Agent Matthew Carbone of the FDA’s Office of Criminal Investigations, and by a Special Agent from Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Owen C.J. Foster and FDA Associate Chief Counsel Scott Kaplan. AADCO Medical was represented by Kevin Henry, Mr. Marchione was represented by George Ostler, and Mr. Skidmore was represented by Paul Volk.
New York City Man Sentenced to 33 Months in Federal Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 2, 2016, David Johnson, 24, of New York City was sentenced to 33 months in federal prison after his guilty plea to charges that he possessed with intent to distribute heroin. U.S. District Court Judge J. Garvan Murtha also ordered that Johnson serve three years of supervised release after his prison term.
According to court records, in the Spring of 2015, the Drug Enforcement Agency (DEA) in Vermont was investigating the distribution of heroin trafficked to Vermont from the New York City area. On June 5, 2015, DEA received information that a load of heroin was being transported to Vermont via automobile. Working with DEA, the South Burlington Police Department ultimately stopped a vehicle in which Johnson was a passenger. Law enforcement officers seized approximately $4,000 in cash from Johnson’s backpack and approximately 4,000 bags of heroin from the vehicle.
For his crime, Johnson faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Johnson serve between 46 and 57 months. The United States asked Judge Murtha to impose a sentence within that range. Johnson requested a sentence of less than 15 months.
In determining that a 33-month overall sentence was appropriate, Judge Murtha considered Johnson’s relatively minimal criminal history, among other factors.
United States Attorney Eric Miller commended the efforts of DEA, the South Burlington Police Department and the other law enforcement agencies involved in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Johnson is represented by Mark Kaplan from the Burlington law firm of Kaplan and Kaplan.
Connecticut Man Sentenced to 89 Months in Federal Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 2, 2016, Nathan Minervini, 37, of East Haven, Connecticut, was sentenced to 89 months in federal prison after his guilty plea to charges that he conspired to distribute heroin. Chief U.S. District Court Judge Christina Reiss also ordered that Minervini serve five years of supervised release after his prison term.
According to court records, between late 2014 and his arrest in Connecticut on May 7, 2015, Minervini transported significant quantities of heroin from Connecticut to Vermont for re-distribution. In 2009, Minervini pled guilty in the U.S. District Court for the District of Connecticut to charges that he conspired to distribute cocaine. For that offense, Minervini was sentenced to 40 months in federal prison followed by five years of supervised release. Minervini was serving that term of supervised release in Connecticut while he was trafficking heroin to Vermont 2014 and 2015.
While engaged in the Vermont heroin distribution conspiracy, Minervini used a co-conspirator to purchase three handguns at a Vermont gun store. Minervini traded heroin and cash for these firearms and brought them to Connecticut.
After a lengthy investigation by the Burlington Police Department (BPD) narcotics unit and the Drug Enforcement Administration, on May 6, 2016, law enforcement obtained a federal criminal complaint charging that Minervini distributed heroin. When federal agents attempted to arrest Minervini in a residential neighborhood in West Haven, Connecticut on May 7, 2015, he attempted to escape. Minervini repeatedly crashed his car into law enforcement vehicles and fled down a residential street, striking several vehicles in the process. Ultimately, Minervini hit a school bus carrying kindergarten children and his vehicle was disabled. None of the children were injured although a number were brought to the hospital as a precautionary measure. Following the crash, Minervini ran from his car and led agents on a foot chase through the neighborhood. While doing so, Minervini dropped a semi-automatic handgun that had been previously purchased for him in Vermont. The handgun was loaded and had a round in its chamber. Agents were finally able to stop Minervini as he attempted to scale a chain link fence. From Minervini’s person, agents recovered heroin and approximately $4,415 in cash.
Minervini was the last of five defendants to be sentenced in this conspiracy prosecution. On March 21, 2016 Judge Reiss sentenced Stephen Boles, 23, of Williston, Vermont to time served followed by three years of supervised release. According to court records, Boles was a Vermont dealer who sold Minervini’s heroin to Vermont customers and supplied Minervini with handguns.
On April 1, 2016, Judge Reiss sentenced Corey Rispoli, 23, of West Haven, Connecticut to 24 months in federal prison followed by four years of supervised release. According to court records, Rispoli trafficked heroin and cash on Minervini’s behalf during the conspiracy.
On April 11, 2016, Judge Reiss sentenced Brandon Morel, 25, of Colchester, Vermont to time served followed by two years of supervised release. According to court records, Morel was a Vermont dealer who sold Minervini’s heroin to Vermont customers.
On April 14, 2016, Judge Reiss sentenced Samuel Wormer, 27, of Essex, Vermont, to 12 months and one day in federal prison followed by three years of supervised release. According to court records, Wormer was a Vermont dealer who sold Minervini’s heroin to Vermont customers and supplied Minervini with handguns. Wormer had purchased the handgun Minervini was carrying when he was arrested in Connecticut.
For the heroin conspiracy, Minervini faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Minervini serve between 84 and 105 months. The Guidelines also recommended that Minervini serve between 15 and 21 months for violating his conditions of supervised release in Connecticut and that this sentence run consecutively to the prison term imposed for the heroin conspiracy. The United States asked Judge Reiss to impose an overall sentence of 105 months for both the heroin conspiracy and the violation of supervised release. Minervini requested a 65-month sentence.
In determining that an 89-month overall sentence was appropriate, Judge Reiss considered the gravity of Minervini’s offense, the harm heroin has caused to the Vermont community, Minervini’s serious criminal record, and the fact that Minervini armed himself with Vermont handguns while selling heroin.
United States Attorney Eric Miller commended the efforts of DEA, the BPD narcotics unit, and the U.S. Marshals. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
According to United States Attorney Miller, this prosecution is an excellent example of teamwork between DEA and the Burlington Police Department who worked together to identify and then dismantle a significant pipeline of heroin into the Chittenden County community. Miller stated that “such coordination between federal and local law enforcement is essential to reducing the flow of heroin into Vermont.” United States Attorney Miller also highlighted that this prosecution demonstrates the United States Attorney’s Office’s commitment to holding out-of-state heroin traffickers and their Vermont co-conspirators accountable for their crimes.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Minervini is represented by Burlington defense attorney Karen Shingler. Samuel Wormer is represented by Maryanne Kampmann from the Burlington law firm Stetler, Allen & Kampmann. Stephen Boles is represented by Mark Kaplan from the Burlington law firm Kaplan and Kaplan. Brandon Morel is represented by David Watts from the Burlington law firm Blodgett, Watts, Volk & Sussman. Corey Rispoli is represented by Christopher Davis from the Vermont law firm Langrock Sperry & Wool.
Lamar Carter, of Brattleboro, Sentenced to 60 Months’ Imprisonment for Heroin and Crack Cocaine TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on July 26, 2016, Lamar Carter, a.k.a. “Bando” and “Boogie,” age 25, of Brattleboro, Vermont, was sentenced to 60 months in prison, having pled guilty to the charge of conspiring to distribute heroin and crack cocaine. United States District Judge Geoffrey W. Crawford, sitting in Rutland, also sentenced Carter to 3 years of supervised release.
Court records show that Carter was arrested for the drug trafficking conspiracy in September 2015 in Brattleboro. For about a year and half prior to his arrest, Carter worked with coconspirators from Brattleboro, Northeast Vermont, and New Jersey selling heroin and crack cocaine in the areas of Lyndon and St. Johnsbury. He was ultimately charged as part of an eight-defendant Indictment. Court records also indicate that Carter possessed guns and used violence in furtherance of the conspiracy. The U.S. Attorney’s Office stated that Carter’s codefendant, Miguel Zayas, 29, of New Jersey, also pled guilty to the heroin and crack cocaine conspiracy, receiving a sentence of 8 years’ imprisonment from Judge Crawford on June 29, 2016. Zayas was the leader of the conspiracy.
Yesterday, Carter’s mother, Jacobina Carter, age 41, also of Brattleboro, was sentenced in Burlington by The Honorable William K. Sessions III, Senior United States District Judge, following her guilty plea to heroin trafficking. Judge Sessions gave Jacobina Carter a 42-month term of imprisonment. Court records further show that Carter began selling narcotics in Vermont in 2006. She started trafficking heroin in 2011 and continued to do so until her arrest in September 2015.
For his crime, Lamar Carter faced a maximum penalty of 20 years in prison. In sentencing Carter, Judge Crawford noted the seriousness of the offense, describing heroin as Vermont’s greatest public health crisis. On the other hand, he observed that Carter had an extremely traumatic childhood and answered to the conspiracy leader, Zayas, during the offense conduct.
The investigation was a collaborative effort of the Vermont State Police Drug Task Force; the Brattleboro, Vermont Police Department; the St. Johnsbury, Vermont Police Department; Homeland Security Investigations; and the Federal Bureau of Investigation.
Assistant United States Attorney Christina Nolan prosecuted the case. Carter is represented by Paul Volk, Esq., of Burlington, Vermont.
Newark Man Sentenced to 16 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on July 25, 2016, Jabbar Hutchins, 21, of Newark, New Jersey, was sentenced to 16 months in federal prison after his guilty plea to charges that he distributed heroin. Chief U.S. District Court Judge Christina Reiss also ordered that Hutchins serve three years of supervised release after his prison term.
According to court records, Hutchins transported significant quantities of heroin from New Jersey to Vermont for re-distribution. On October 14, 2015, after an investigation lasting several months, the Vermont State Police Drug Task Force used a confidential informant to purchase approximately 1500 bags of heroin from Hutchins. Following the drug deal, law enforcement agents arrested Hutchins.
For his crime, Hutchins faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Hutchins receive a prison term between 18 and 24 months. In determining the appropriate sentence, Judge Reiss considered the gravity of Hutchins’ offense, the harm heroin has caused to the Vermont community and Hutchins’ lack of a criminal record.
United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force and the Burlington Police Department for their coordinated work in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Hutchins is represented by Assistant Federal Public Defender Elizabeth Quinn.
Jacobina Carter, of Brattleboro, Sentenced to 42 Months’ Imprisonment for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on July 25, 2016, Jacobina Carter, a.k.a. “Peaches,” 41, of Brattleboro, Vermont, was sentenced to 42 months in prison, having pled guilty to the charge of distribution of heroin. Senior United States District Judge William K. Sessions III, sitting in Burlington, also sentenced Carter to 3 years of supervised release.
Court records show that Carter was arrested in September 2015 in Brattleboro after selling heroin on several occasions to individuals cooperating with law enforcement. She pled guilty on December 21, 2015. Carter was initially released on conditions, including orders that she refrain from using drugs or committing new criminal offenses. In June 2016, however, Judge Sessions incarcerated Carter for positive drug tests and her involvement in assisting an individual selling heroin and crack cocaine in Keene, New Hampshire.
Court records further show that Carter began selling narcotics in Vermont in 2006. She started trafficking heroin in 2011 and continued to do so until her arrest in September 2015. Carter’s son, Lamar Carter, age 25, also of Brattleboro, has pled guilty in a separate case to participation in a large-scale, St. Johnsbury-based heroin trafficking conspiracy. He is set to be sentenced tomorrow in Rutland by The Honorable Geoffrey W. Crawford.
For her crime, Jacobina Carter faced a maximum penalty of 20 years in prison. In sentencing Carter, Judge Sessions noted her violations of Court conditions – including her participation in new drug trafficking activity while on release – as well as the long-term nature of her drug dealing. On the other hand, he observed that Carter was a street-level dealer who did not operate as part of a larger network or exercise control over others.
The investigation was a collaborative effort of the Vermont State Police Drug Task Force; the Brattleboro, Vermont Police Department; Homeland Security Investigations; and the Federal Bureau of Investigation
Assistant United States Attorney Christina Nolan prosecuted the case. Carter is represented by Mark Oettinger, Esq., of Burlington, Vermont.
Two People Arrested Based on Facilitating Drug Distribution in Burlington, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont today announced federal criminal charges against Peggy Marcelino, 55, and William St. George, 57, both from Burlington. Marcelino is charged with conspiring with Arden Cadle, from New York City, to distribute heroin, cocaine, and crack and to engage in money laundering. St. George is charged with making his apartment on Elmwood Avenue in Burlington available for drug trafficking by Cadle. Cadle was arrested on March 17, 2016. Cadle has been charged with conspiracy, distribution of heroin and crack, possession with intent to distribute heroin and crack, as well as being a felon in possession of a firearm.
Cadle pleaded not guilty to those charges on July 1, 2016. Marcelino and St. George pleaded not guilty today. All three defendants face a maximum sentence of twenty years in jail on the most serious charges. Cadle has been released pending trial. Marcelino and St. George have been detained pending a further hearing next week. The sentences for each of the defendants will be advised by the federal sentencing guidelines. The pending charges against these defendants are merely accusations, and they are presumed innocent until and unless they are proven guilty.
This case was investigated by the Drug Enforcement Administration. The United States is represented in these cases by Assistant United States Attorney Timothy Doherty. Cadle is represented by Assistant Federal Defender Steven Barth.