District of Vermont
Press releases recorded for this federal judicial district.
CFO of Berlin, New Hampshire Business Pleads Guilty 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, pleaded guilty before Chief Judge Christina Reiss yesterday to a charge of making a false statement to a financial institution. The charge alleged that in or about March 2011, Griffin submitted or caused to be submitted inflated figures for assets of Isaacson Structural Steel, Inc. (“ISSI”), including inventory, to Passumpsic Savings Bank, and other banks that provided ISSI loans totaling over $12 million, including a $2 million loan guaranteed by the Small Business Administration. Based on the plea agreement, Griffin faces up to three years in prison. Griffin agreed to a restitution order for $500,000.
Griffin was part owner,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. Sentencings for Hanson and Griffin are scheduled for May 2016.
Griffin’s indictment and Hanson’s conspiracy charge allege that 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 one 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 ISSI’s inventory at that time 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. The lending banks lost millions of dollars as a result of the fraud. As part of the plea agreement, Griffin admitted that he knowingly submitted false information to the lending banks in 2010 and 2011. At the sentencing hearing, the government anticipates offering evidence showing that Griffin’s criminal activity began as early as 2007.
The United States is represented in this matter by Assistant U.S. Attorneys Paul Van de Graaf and Timothy Doherty. Griffin is represented by Paul Volk, Esq. and Douglas Miller, 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.
Paul Hebert Pleads Guilty to Social Security and Medicaid FraudRead the Press Release
Paul Hebert, 50, of Gloucester, Massachusetts, formerly of Barre, Vermont, pleaded guilty today to charges of Social Security fraud and Medicaid fraud.
At today’s hearing, Hebert admitted that he made multiple false statements concerning his ability to work when he testified under oath at a Social Security Administration hearing on October 28, 2010; he failed to disclose changes in his income after the hearing as required by law; and he wrongfully continued to receive Social Security Income benefits until April 4, 2013. Hebert also admitted that, after obtaining Medicaid benefits on February 24, 2009, he failed to report changes in his income and employment status, as required by law, and wrongfully received Medicaid benefits until approximately November 2012.
At sentencing, Hebert faces up to five years imprisonment, and a fine of up to $250,000 on each count. The actual sentence will be determined through reference to federal sentencing guidelines and applicable statutes. According to the plea agreement, defendant Hebert has agreed to pay restitution totaling $53,660.57 prior to his sentencing hearing, and both the United States and defendant Hebert are jointly recommending that Hebert be sentenced to four years of probation. Such a recommendation is not binding on the Court at sentencing.
United States Attorney Eric S. Miller commended the efforts of the SSA Office of Inspector General, Boston Field Division; HHS Office of the Inspector General, Boston Regional Office; and the National Oceanic Atmospheric Administration, Office of Law Enforcement, in the investigation and prosecution of Hebert.
Hebert is represented by Paul S. Volk, Esq. The prosecutor is Assistant U.S. Attorney Jonathan Ophardt.
Professional Cattle Thief Sentenced to 38 Months in PrisonRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jason Amidon, 28, of Coudersport, Pennsylvania, was sentenced yesterday in United States District Court in Brattleboro, following his guilty plea to one count of Wire Fraud. The charges stemmed from his scheme to defraud two Vermont and eleven other cattle ranchers of approximately $2.1 million by offering to purchase real cattle with counterfeit checks, and by offering to sell cattle that did not in fact exist and pocketing the proceeds. U.S. District Court Judge J. Garvan Murtha sentenced Amidon to 38 months in prison, three years of post-release supervision, and $144,450 in restitution.
The case began after Amidon successfully uttered a counterfeit check for $100,000 to a Lyndonville, Vermont farmer, in exchange for the purchase of 55 Belted Galloway female cattle and their calves, a heritage pedigree breed of cattle. Instead of delivering them to their new home at a co-operative farm in Minnesota as he represented, Amidon, with help from his father, delivered the cows to auction in Greencastle, Pennsylvania, where they were to be sold for beef. The balance of the agreed-upon purchase price was never delivered to the Vermont farmer.
Subsequently, law enforcement agents uncovered a series of frauds related to cattle. From in or about the summer of 2013 to January 2015, Amidon managed to defraud a number of cattle ranchers around the country. Specifically, by use of the internet and stock photography of cattle that were not his, Amidon swindled a cattle rancher in Arkansas into paying Amidon a $55,000 down payment for cattle that did not exist, as well as a cattle rancher in New Mexico into paying a $30,026 down payment for cattle that also did not exist. Those frauds resulted in two separate misdemeanor convictions in Pennsylvania.
Also, at the time of his January 2015 arrest, Amidon faced a third set of charges in Pennsylvania after convincing an Iowa farmer to wire him $135,000 as a down payment for cattle that did not exist. Amidon falsely represented himself to be a cattle broker for an owner who was dying of cancer and who needed to sell his entire herd at a discount; these charges ultimately became part of the federal indictment against him.
Additionally, in or about December 2014, Amidon made a series of arrangements with three other Iowa cattle ranchers to purchase legitimate cattle from them with counterfeit checks, for a total of $556,100; these deals ultimately fell through. At the same time, Amidon attempted to convince ranchers from Nebraska, South Dakota, and Missouri that he desired to purchase their cattle but needed to complete the deal quickly, as Amidon falsely represented that those cattle were required to board a barge leaving for Turkey. Amidon hoped that the urgency and speed of the transaction would deflect attention from the illegitimate funds that would have garnered him $1,201,600 had he been successful in his efforts.
In fashioning its 38 month sentence, the Court stated that it took into its consideration the facts of the case as well as the defendant’s background and personal history.
This case was investigated by the Vermont State Police in cooperation with the Federal Bureau of Investigation. Pennsylvania State Police were also instrumental in the investigation and arrest in Coudersport, Pennsylvania. The United States Attorney expresses his gratitude for their cooperation and impressive investigation.
Amidon was represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
David Eisenhart Pleads Not Guilty to Embezzlement and False Statement ChargesRead the Press Release
The United States Attorney for the District of Vermont announced that David Eisenhart, 43, of Barre, pleaded not guilty today in United States District Court in Burlington to federal fraud charges. United States Magistrate Judge John M. Conroy released Eisenhart on conditions pending trial, which has not been scheduled.
On December 16, 2015, a federal grand jury in Rutland returned a three-count indictment charging Eisenhart with wire fraud and making false statements in loan applications. According to the indictment, between 2011 and March 31, 2015, Eisenhart was employed as the business manager of Wilkins Harley-Davidson, a motorcycle dealership in Barre. Eisenhart handled all paperwork relating to motorcycle sales. He prepared bills of sale, and collected cash, check and credit card deposits from customers buying bikes. According to the indictment, starting in about 2013 and continuing up through March 2015, Eisenhart embezzled more than $15,500 in cash deposits made by Wilkins customers. He then attempted to conceal the thefts by not reporting or underreporting the amount of the deposit in Wilkins' accounting system, and falsifying the dealership copy of the bill of sale to understate the amount of the deposit.
The indictment further alleges that Eisenhart made false statements to the New England Federal Credit Union in connection with his purchases of an SUV and a motorcycle. According to the indictment, in October 2013, Eisenhart bought a used Cadillac Escalade for $47,095. Two months later, he refinanced the purchase through NEFCU and obtained a loan for almost $59,000. He obtained this loan by submitting to NEFCU a falsified invoice which purported to show the purchase price of the Escalade had been $58,777 rather than $47,095. In May 2015, although NEFCU had a lien on the vehicle, Eisenhart sold the Escalade for $26,000 and pocketed all of the proceeds. According to the indictment, Eisenhart obtained a clean replacement title for the Escalade under false pretenses, by submitting to Vermont Department of Motor Vehicles a forged document purportedly showing NEFCU had released its lien on the SUV.
Finally, the indictment accuses Eisenhart of fraudulently inducing NEFCU to loan him nearly $12,000 to refinance the purchase of a used BMW motorcycle. Eisenhart had bought the bike for $8000 in July 2014. The next month, he obtained a loan for almost $12,000 from NEFCU. In connection with this refinancing, Eisenhart allegedly submitted to NEFCU a falsified bill of sale which asserted the purchase price was $11,983.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Eisenhart faces up to 30 years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Barre Police Department and the Vermont Department of Motor Vehicles.Eisenhart is represented by Mark Kaplan. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Camouflaged Canadian Charged with Smuggling 182 Pounds of Prescription Drugs Across Northern BorderRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a Cedrick Bourgault-Morin, 21, of Quebec, Canada has been charged by a criminal complaint with possessing with intent to distribute 182 pounds of Aprazolam, commonly known as Xanax, a schedule IV controlled substance.
According to the affidavit filed with the complaint, at approximately 1:00 am on January 13, 2016, the Swanton Sector Communications Center of U.S. Customs and Border Protection received notification of activity on the railroad tracks which lead from the international border into the village of North Troy. This area is known to be used by smuggling organizations to smuggle contraband into the United States. Three United States Border Patrol agents responded to the area. One agent tracked footprints in the snow from the border, while two others positioned themselves south of the suspected smuggler. The southern agents observed Bourgault-Morin wearing white camouflage clothing, and walking on the tracks. Bourgault-Morin was pulling a 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 contents of the sled. The agents discovered a large duffle bag on the sled. Upon further inspection at the Newport Station, the agents discovered the duffle to contain approximately 300 vacuum-sealed plastic bags containing pills. The pills bear 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. The 300 bags of pills weighed approximately 182 pounds, and have a value of approximately $1.6 million.
If convicted, Bourgault-Morin faces a maximum of five years of imprisonment and a $250,000 fine. 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 charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
“This is a great example of some of the training and unique skills our agents use to perform their border security mission,” said U.S. Border Patrol Agent-in-Charge Fernando Beltran. “I commend these agents for their continued vigilance in tracking criminals, and for seizing harmful drugs before they get into our communities.”
United States Attorney Eric S. Miller commended the investigative efforts of the United States Border Patrol.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Bourgault-Morin is represented by the Office of the Federal Public Defender for the District of Vermont.Sean McKinnon Sentenced to 96 Months for Theft of Twelve Handguns from R&L Archery in BarreRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Sean McKinnon, 29, of Montpelier, was sentenced today for stealing 12 handguns from R&L Archery on March 15, 2015. United States District Judge William K. Sessions III sentenced McKinnon to 96 months in prison, to be followed by three years of supervised release. Judge Sessions also ordered McKinnon to pay restitution in the amount of $3,790 to R&L Archery and its insurance carrier for costs associated with the burglary.
According to court records, in the pre-dawn hours of March 15, 2015, McKinnon stole a Jeep from a Montpelier car dealership and drove to Barre, where he used a pry bar to forcibly enter R&L Archery, a federally-licensed firearms dealer. Once inside, he broke into a display case and stole twelve .22 caliber handguns. From there, McKinnon drove to Hartford, Connecticut where he traded the handguns to a drug dealer for heroin and cocaine, returning to Vermont within hours of the burglary. Two days later, federal and local law enforcement executed a search warrant at McKinnon’s Montpelier apartment, where they recovered a 20-gauge shotgun, approximately 45 bags of heroin, drug paraphernalia, several pry bars, and ammunition. During an interview with law enforcement on that day, McKinnon admitted to the R&L Archery burglary, and stated that he had traded the firearms for guns in Hartford. He further admitted that he had traded guns for drugs on previous occasions with the Connecticut drug dealer. McKinnon stated that among the previous trades was an SKS assault rifle, a .380 caliber handgun with a laser, and several other pistols.
The Hartford, Connecticut Police Department recovered one of the stolen handguns during an August 2015 car stop. The other eleven handguns have not been recovered.
Daniel Kumor, ATF Special Agent in Charge, Boston Field Division, noted the effect gun store burglaries has on communities. “The theft of firearms from a federal firearms licensee is a serious threat to public safety and this sentence today sends the message that it will not be tolerated. Firearms trafficking continues to be a top priority for ATF and our law enforcement partners, and we are committed to identifying and disrupting the sources of illegal firearms.” As U.S. Attorney Miller noted, “this case involved a convicted felon burglarizing a gun store and trafficking over a dozen firearms from Vermont to Connecticut, where they were traded for heroin and cocaine. Working with our state and local law enforcement partners, we will continue to aggressively prosecute those who illegally place guns in the hands of drug dealers.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Barre City, Barre Town, Montpelier, and Hartford, Connecticut Police Departments. The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. McKinnon was represented by Elizabeth K. Quinn of the Federal Defender’s Office.
Drug Dealer Sentenced to 60 Months for Illegal Firearm PurchaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Collin Blount, 28, of Brooklyn, New York, was sentenced today in United States District Court in Burlington following his guilty plea to Possession of a Firearm in Furtherance of Drug Trafficking. U.S. District Court Judge William K. Sessions III sentenced Blount to 60 months in prison followed by five years of post-release supervision, on the parties’ joint recommendation.
According to court records, the defendant was charged with three counts of the Distribution of Cocaine Base in the Rutland area of Vermont, between May 7, 2014 and May 19, 2014. The defendant was also charged with the firearms count stemming from his illegal purchase of a firearm from an undercover special agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, on July 2, 2014.
In exchange for what Blount believed was a .40 caliber Glock model 22, Blount presented the undercover agent with approximately 2.4 grams of cocaine base. When law enforcement agents moved in on Blount in a corner of a parking lot in order to effect his arrest, Blount backed up his vehicle towards the law enforcement vehicles and then accelerated forward, driving into and then onto the curb and median, at a high rate of speed. In his attempt to evade arrest, Blount struck a law enforcement vehicle and a pickup truck, and then drove into the woods, where his vehicle struck trees in the treeline. Blount then fled on foot and was discovered hiding in the brush by a K9 and a search team.
The United States Attorney, Eric S. Miller, specifically thanks the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as the Vermont State Police Drug Task Force, for their hard work and cooperation in the investigation of this case.
Blount was represented by Mark Kaplan, Esq. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
Northfield Vermont Man Charged with Unlawfully Possessing and Transferring ExplosivesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Mark McCloud, 45, of Northfield, Vermont has been charged in United States District Court with: (1) unlawfully possessing explosive devices; and, (2) unlawfully transferring an explosive device, in violation of federal law.
According to a Criminal Complaint and Affidavit filed today, the United States alleges that on December 9, 2015 McCloud lit an explosive device he was holding in his hand outside his residence in Northfield. The device exploded and McCloud lost his left hand and multiple bystanders were injured. The United States alleges the explosive device was made of copper tubing and explosive powder. According to the complaint affidavit, in executing a search warrant at McCloud’s residence, law enforcement officers found several feet of fusing materials consisting of fusing material commonly known as “quick match” or “instantaneous fuse.”
The United States also alleges that earlier that day McCloud gave one of these explosive devices to a neighbor and therefore, unlawfully transferred the explosive device. The Vermont State Police removed this device from the neighbor’s residence and it is currently being stored in an explosive bunker pending further analysis.
The District Court issued a summons for McCloud to appear for an initial appearance on December 21, 2015. If convicted, McCloud faces a maximum possible penalty of ten years in prison for each charge and fines of up to $250,000. If convicted, McCloud’s actual sentence will be advised by the Federal Sentencing Guidelines.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Vermont State Police, and the Northfield Police Department. The United States is represented by Assistant U.S. Attorney Joseph Perella.
Two Montreal Men Sentenced for Possession of Counterfeit Access Devices at the Highgate Springs Port of EntryRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Boris Alfonsa Caro-Silva, 25, and Idriss Bedhiaf, 26, both of Montreal, Canada, were sentenced today in Burlington for possession of at least fifteen counterfeit access devices when they attempted to enter the United States at the port of entry in Highgate Springs, Vermont in December 2014. U.S. District Judge Geoffrey W. Crawford sentenced both men to time-served and a fine. Caro-Silva and Bedhiaf each paid a fine in the amount of $2,000 prior to the sentencing hearing.
According to court records, on December 13, 2014, U.S. Customs and Border Protection officers encountered Caro-Silva and Bedhiaf as they attempted to enter the United States at the Highgate Springs port of entry. After referring the men to secondary inspection, officers discovered forty-five prepaid MasterCard and Tim Horton’s gift cards between the two men. The cards contained numbers written in black marker across the back. Caro-Silva acknowledged that the cards contained other individuals’ credit card information, and that he intended to withdraw whatever cash he could from ATMs and return a portion of the proceeds to another individual who had given him the cards in the Montreal area. Bedhiaf maintained that he had found the cards on the sidewalk near his home and was traveling to New York City to go shopping. Utilizing a credit card reader, law enforcement determined that the information contained on the cards’ magnetic strips did not correspond to the numbers printed on the face of the cards. Caro-Silva and Bedhiaf were arrested and charged with possession of counterfeit access devices.
This matter was investigated by Homeland Security Investigations and Customs and Border Protection. The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. Caro-Silva was represented by Elizabeth K. Quinn of the Federal Defender’s Office, and Bedhiaf was represented by Michael J. Straub.
Neiman Groce Pleads Not Guilty to Retirement Plan EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Neiman Groce, 30, of Poultney, pleaded not guilty today in United States District Court in Burlington to federal fraud and forgery charges. U.S. Magistrate Judge John M. Conroy released Groce on conditions pending trial, which has not been scheduled.
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 embezzled approximately $88,000 from the retirement accounts of five former Rutland Plywood employees. Groce allegedly 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 charges Groce with stealing an additional $3000 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.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Groce 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 Federal Bureau of Investigation and the Vermont State Police.
Groce is represented by the office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Michigan Man Sentenced to 12.5 Years in Prison for Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Damein Hampton, 38, of Ypsilanti, Michigan, appeared Friday for sentencing in United States District Court in Burlington. United States District Court Judge William K. Sessions III sentenced him to 151 months of incarceration following his guilty plea to Conspiracy to Distribute Cocaine and 280 Grams or More of Cocaine Base.
According to court documents and a series of witnesses at the two-day sentencing hearing, the defendant, aka “Tree,” was accused of being the organizer and manager of a drug conspiracy in Vermont beginning in 2009 and continuing up to his arrest in January 2014. During that time, the defendant trafficked cocaine and cocaine base into Vermont from New York, Michigan, and Arizona, and distributed cocaine, cocaine base, and heroin throughout the Burlington and Newport areas of Vermont. The government accused the defendant of trafficking approximately 2500 grams of crack cocaine, 2050 grams of powder cocaine, and 125 grams of heroin. The defendant estimated that he trafficked approximately 1325 grams of crack cocaine, 1325 grams of powder cocaine, and no heroin.
At sentencing, the government called four witnesses to illustrate the defendant’s drug trafficking activities and his history and characteristics. The witnesses testified that they housed him, stashed his drugs for him, distributed his drugs on his behalf, deposited drug proceeds into his bank account, and trafficked his drugs into Vermont from New York and Michigan. One of the government’s witnesses testified about specific threats of physical violence that he made to her. Government witnesses also testified that the defendant was responsible for a June 7, 2012 shooting on Farrell Street in South Burlington, was the intended victim of a shooting in downtown Burlington on May 5, 2013, and carried a firearm in the center console of his car as a result of a falling out with an associate.
Also at sentencing, the defendant presented competing evidence of the relevant facts. Through the testimony of two defense witnesses and the defendant himself, the defendant admitted to years of serial drug trafficking despite six prior felony convictions for carrying a concealed weapon, robbery, narcotics sale, narcotics possession, and assault, as well as seven misdemeanor convictions. He denied that he was responsible for the Farrell Street shooting and that he used violence or threats of violence to further his trafficking activity.Additionally, the government urged the Court to consider that the defendant absconded from Michigan and remained a fugitive for a period of months while he continued to sell drugs in Schenectedy, New York. This followed on the heels of learning that the U.S. Drug Enforcement Administration was investigating him, had arrested his co-conspirators in transit from Michigan to Vermont with 163.6 grams of his crack cocaine and 52.5 grams of his powder cocaine, and was interested in the defendant’s cooperation.
In fashioning its 12.5 year sentence, the Court stated that it took into account the defendant’s criminal history, the facts of the case as he found them, and the defendant’s background and personal history.
Damein Hampton was represented by Attorney Mark Kaplan. The prosecutors were Assistant U.S. Attorneys Abigail Averbach and William Darrow. The United States Attorney expresses his gratitude to the U.S. Drug Enforcement Administration, the Burlington Police Department, the Milton Police Department, and the South Burlington Police Department for their excellent investigative work and assistance with this case.
Vermont Dairy Farm Agrees to Permanent Injunction Barring Unlawful Administration of Veterinary DrugsRead the Press Release
Farm and Three Individual Defendants Agree to Settle Allegations That Adulterated Food and Drugs Were Introduced Into Interstate Commerce in Violation of the Federal Food, Drug, and Cosmetics Act
The Department of Justice has filed a complaint in the United States District Court for the District of Vermont seeking a permanent injunction against the Correia Farm Limited Partnership d/b/a Wynsum Holsteins, a dairy farm located in West Addison, Vermont, and its co-owners, Anthony and Barbara Correia, and their son and limited partner Stephen Correia, to address alleged violations of the Federal Food, Drug, and Cosmetics Act (“FDCA”).
According to the complaint, which was filed by the United States Attorney’s Office for the District of Vermont and the Department of Justice’s Consumer Protection Branch on behalf of the United States Food and Drug Administration (“FDA”), the farm and individual defendants violated the FDCA by unlawfully administering new animal drugs for uses not approved by the FDA and unlawfully selling livestock for slaughter and human consumption despite the presence of excessive and unsafe drug residues in the animals’ edible tissues. The complaint states that previous inspections of the farm by the FDA and lab tests performed by the United States Department of Agriculture found recurring FDCA violations of the same nature, which the defendants failed to correct despite FDA warnings.
The defendants have agreed to settle the litigation and be bound by a consent decree of permanent injunction that subjects them to heightened FDA oversight and requires them to, among other things, implement a number of new record-keeping and operational protocols designed to ensure consumer safety. The proposed decree was filed with the district court and is awaiting judicial approval.
“When farms fail to implement and maintain appropriate controls for the administration of antibiotics and other drugs to food-producing animals, they jeopardize public health,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to try to make sure that consumers are getting safe food.”
“Vermonters want to know what is in the food they eat, and they deserve food that is free from harmful drugs. The United States Attorney’s Office will continue to vigorously protect those rights and to hold unscrupulous food producers accountable,” said United States Attorney Eric S. Miller. “I commend the Correias for their willingness to enter into a consent decree that will require them to do their part to protect the safety of our food supply.”
This matter was handled by Trial Attorney Megan Englehart of the Department of Justice’s Consumer Protection Branch and Assistant United States Attorney Ben Weathers-Lowin of the United States Attorney’s Office for the District of Vermont, with assistance from Yen Hoang of the FDA’s Office of the Chief Counsel. The defendants were represented by Amy Menard of Neuse, Duprey & Putnam, P.C.
*A complaint sets forth allegations that the government would need to prove in the event that the case were to proceed to trial.
Two Men Charged with Fentanyl OverdoseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a federal grand jury returned an indictment charging Gary Delima, 26, and Sharif Cargo, 26, both of Brooklyn, New York, with Conspiracy to Distribute a Controlled Substance, Resulting in Death. An additional co-conspirator, Tyson Williams, 31, of Brooklyn and Vermont, was charged with conspiring with Delima, Cargo, and others to distribute at least 28 grams of cocaine base.
Delima, Cargo, and others had been federally indicted on March 18, 2015, on charges related to a conspiracy to distribute heroin and cocaine base in Vermont. A grand jury returned another indictment against them on November 17, 2015, accusing them of sex trafficking by force and coercion of two females, and sex trafficking of a third victim, a minor. Today, a federal grand jury in Burlington returned a Fourth Superseding Indictment, adding new charges related to the July 6, 2014 fentanyl overdose death of a person referred to as G.B. in the indictment. Specifically, the conspiracy was enlarged to include conspiracy to distribute fentanyl, and Delima and Cargo are accused of conspiring with each other and others to distribute the fentanyl that killed victim G.B.
If convicted, Cargo and Delima face a mandatory minimum of 20 years of imprisonment, and up to a maximum of life imprisonment for Conspiracy to Distribute a Controlled Substance, Resulting in Death. Cargo and Delima also face a mandatory minimum of 15 years of imprisonment, and up to a maximum of life imprisonment, for Sex Trafficking by Force and Coercion. Delima faces a mandatory minimum of 10 years of imprisonment, and up to life imprisonment, for the Sex Trafficking of a Child. 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 indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty.
United States Attorney Eric S. Miller commended the investigative efforts of the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the South Burlington Police Department; and the Burlington Police Department.
The United States is represented in this matter by Assistant U.S. Attorneys Abigail Averbach and Jonathan Ophardt. Sharif Cargo is represented by Thomas J. Sherrer, Esq. Gary Delima is represented by Brooks G. McArthur, Esq. and David J. Williams, Esq. Tyson Williams is represented by Devin McLaughlin, Esq.Vermont U.S. Attorney’s Office Collects $1,295,116.75 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
Burlington - U.S. Attorney Eric S. Miller announced today that the District of Vermont collected $1,295,116.75 in criminal and civil actions in Fiscal Year 2015. Of this amount, $787,749.50 was collected in criminal actions and $507,367.25 was collected in civil actions.
Additionally, the District of Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $620,882.19 in cases pursued jointly with these offices. Of this amount, $14,319.69 was collected in criminal actions and $606,562.50 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
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 $1,129,535.00 in asset forfeiture actions in FY 2015. 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.
Man Pleads Guilty to Facilitating Computer Hacking of Vermont CompanyRead the Press Release
Nima Golestaneh, 30, an Iranian national, pleaded guilty to charges of wire fraud and unauthorized access to computers related to his involvement in the October 2012 hacking of a Vermont-based engineering consulting and software company.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eric S. Miller of the District of Vermont and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division.
According to the plea agreement, Golestaneh conspired with others to hack the network and computers at Arrow Tech Associates Inc. (Arrow Tech) in order to steal valuable company software and business information. Golestaneh’s role in the conspiracy was to acquire servers in other countries for his co-conspirators to use remotely in order to launch computer intrusions into victim companies, including Arrow Tech, thereby masking their true location and identity.
As part of the conspiracy, in October 2012, a co-conspirator used servers in third-party countries, which were provided by Golestaneh, during a successful unauthorized cyber intrusion into Arrow Tech’s computer network. As part of this intrusion, the co-conspirator stole the company’s sophisticated software product and other proprietary information.
In November 2013, Golestaneh was arrested in Turkey in connection with the indictment. He was extradited to the United States on Feb. 12, 2015 pursuant to a Mutual Legal Assistance Treaty.
“This case proves the power of close cooperation among victims, law enforcement and the international community,” said Assistant Attorney General Carlin. “With continued partnerships like these, cyber crimes will not go unanswered. At the National Security Division, we will continue to follow the facts and evidence wherever they lead to ensure there are no safe havens for hackers.”
“This case illustrates that no part of the United States is immune from cyber intrusions,” said U.S. Attorney Miller. “Further, as the department has shown time and again, cyber criminals are not immune from the law because they hack from faraway countries that they perceive as offering a safe haven. Working with our colleagues at FBI and other law enforcement agencies, we can and will identify them and we will make every effort to arrest and prosecute them.”
“Those who have committed or are committing similar computer intrusions are on notice,” said Special Agent in Charge Vale. “We can identify them and we will pursue their arrest no matter where they reside or how long it takes.”
The case was investigated by the FBI’s Albany Division’s Cyber Squad. The case is being prosecuted by First Assistant U.S. Attorney Eugenia Cowles of the District of Vermont and Deputy Chief Sean M. Newell of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance in this matter.
Golestaneh Plea Agreement
Man Pleads Guilty to Facilitating Computer Hacking of Vermont CompanyRead the Press Release
Nima Golestaneh, 30, an Iranian national, pleaded guilty to charges of wire fraud and unauthorized access to computers related to his involvement in the October 2012 hacking of a Vermont-based engineering consulting and software company.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eric S. Miller of the District of Vermont and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division.
According to the plea agreement, Golestaneh conspired with others to hack the network and computers at Arrow Tech Associates Inc. (Arrow Tech) in order to steal valuable company software and business information. Golestaneh’s role in the conspiracy was to acquire servers in other countries for his co-conspirators to use remotely in order to launch computer intrusions into victim companies, including Arrow Tech, thereby masking their true location and identity.
As part of the conspiracy, in October 2012, a co-conspirator used servers in third-party countries, which were provided by Golestaneh, during a successful unauthorized cyber intrusion into Arrow Tech’s computer network. As part of this intrusion, the co-conspirator stole the company’s sophisticated software product and other proprietary information.
In November 2013, Golestaneh was arrested in Turkey in connection with the indictment. He was extradited to the United States on Feb. 12, 2015 pursuant to a Mutual Legal Assistance Treaty.
“This case proves the power of close cooperation among victims, law enforcement and the international community,” said Assistant Attorney General Carlin. “With continued partnerships like these, cyber crimes will not go unanswered. At the National Security Division, we will continue to follow the facts and evidence wherever they lead to ensure there are no safe havens for hackers.”
“This case illustrates that no part of the United States is immune from cyber intrusions,” said U.S. Attorney Miller. “Further, as the department has shown time and again, cyber criminals are not immune from the law because they hack from faraway countries that they perceive as offering a safe haven. Working with our colleagues at FBI and other law enforcement agencies, we can and will identify them and we will make every effort to arrest and prosecute them.”
“Those who have committed or are committing similar computer intrusions are on notice,” said Special Agent in Charge Vale. “We can identify them and we will pursue their arrest no matter where they reside or how long it takes.”
The case was investigated by the FBI’s Albany Division’s Cyber Squad. The case is being prosecuted by First Assistant U.S. Attorney Eugenia Cowles of the District of Vermont and Deputy Chief Sean M. Newell of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance in this matter.
# # #
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE CALL DOJ’S OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Burlington Man Pleads Guilty to Pharmacy Robbery; Admits Two Other RobberiesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Bryan McMahon, 30, of Burlington, pleaded guilty today in United States District Court in Burlington to a charge of Interference with Commerce by Robbery. Chief District Judge Christina Reiss ordered McMahon detained pending his sentencing, which is set for March 14, 2016.
On June 5, 2015, a federal grand jury charged McMahon with robbing the Rite Aid Pharmacy on North Avenue in Burlington, Vermont on April 27, 2015. Pursuant to a written plea agreement, McMahon pleaded guilty to that charge today. According to the plea agreement, McMahon entered the Rite Aid Pharmacy while wearing an orange vest, surgical mask, and rubber gloves. McMahon approached the pharmacy counter, and obtained bottles of Methadone by making threats of force. A short time after he exited the pharmacy, McMahon was apprehended in Ethan Allen Park.
As part of the plea agreement, McMahon admitted to robbing the Lakeside Pharmacy on Pearl Street in Burlington, Vermont on December 18, 2014. For this robbery, McMahon was dressed in ski goggles, a surgical mask, gloves, and a Santa Claus hat when he obtained Oxycontin and Methadone by making threats of force. Also as part of his plea agreement, McMahon admitted to again robbing the Lakeside Pharmacy on Pearl Street on April 3, 2015. For this robbery, McMahon was dressed in aviator-style sunglasses, a surgical mask, and rubber gloves when he obtained Methadone by making threats of force.
McMahon faces up to 20 years of imprisonment and a fine of up to $250,000. His actual sentence will be determined with reference to federal sentencing guidelines.
United States Attorney Eric S. Miller commended the investigative efforts of the Burlington Police Department and the Drug Enforcement Administration.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. McMahon is represented by Assistant Federal Defender Steven L. Barth, Esq
United States Attorney Charges Two Men with Sex TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a federal grand jury returned an indictment charging Gary Delima, 26, and Sharif Cargo, 26, both of Brooklyn, New York, with Sex Trafficking by Force and Coercion, Coercion and Enticement to Engage in Prostitution, and Transportation for Prostitution. Delima was also charged with the Sex Trafficking of a Child.
Delima, Cargo, and others had been federally indicted on March 18, 2015, on charges related to the distribution of heroin and cocaine base in Vermont. Today, a federal grand jury in Burlington returned a Third Superseding Indictment, adding the new charges related to human trafficking. Specifically, Delima and Cargo are accused of recruiting, enticing, and maintaining two individuals referred to in the indictment as “Victim 1” and “Victim 2,” and using force, threats of force, fraud, and coercion to cause them to engage in commercial sex acts between September 2012 and September 2013. Delima and Cargo are further accused of inducing and enticing “Victim 1” to travel from Vermont to New York in February 2013 to engage in prostitution, and transporting “Victim 1” from Vermont to New York in February 2013 to engage in prostitution. Delima is also charged with transporting an individual referred to as “Victim 3,” a minor, to engage in prostitution in January 2015.
According to an affidavit in support of a search warrant application submitted on November 16, 2015, law enforcement responded to a South Burlington motel in July 2013, and encountered Sharif Cargo, Gary Delima, and two women. Inside the motel room, law enforcement discovered Cargo, Delima, and the women, as well as evidence of prostitution and narcotics activity. Law enforcement also discovered that at least one of the women had been advertised earlier that day on the website “Backpage.com” as an escort available in the South Burlington area. Additional records from Backpage.com revealed that Sharif Cargo’s email address was used to post similar advertisements on the website between August 2012 and August 2013.
According to the same affidavit, law enforcement again responded to a South Burlington motel in February 2015 and encountered two females who admitted to being engaged in prostitution. One of the females was a minor. The females identified Gary Delima as the man who transported them from New York to Vermont for the purposes of having the females engage in prostitution.
If convicted, Cargo and Delima face a mandatory minimum of 15 years of imprisonment, and up to a maximum of life imprisonment for Sex Trafficking by Force and Coercion. Delima faces a mandatory minimum of 10 years of imprisonment, and up to life imprisonment, for the Sex Trafficking of a Child. 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 indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty.
United States Attorney Eric S. Miller commended the investigative efforts of the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the South Burlington Police Department; and the Burlington Police Department.
Miller also stated, “Earlier this month, my office released a public service announcement intended to raise awareness surrounding the dangerous intersection of drug and sex trafficking in Vermont and to put victims and potential victims in touch with the services they need. Today, we have filed charges against two men alleged to have trafficked both drugs and young women. We will win the fight against human trafficking through this targeted combination of education, treatment, and vigorous law enforcement.”
The United States is represented in this matter by Assistant U.S. Attorneys Abigail Averbach and Jonathan Ophardt. Sharif Cargo is represented by Thomas J. Sherrer, Esq. Gary Delima is represented by Brooks G. McArthur, Esq. and David J. Williams, Esq.
Three Arrested on Charges of Conspiracy to Distribute HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Wilson Santiago, 35, of Hartford, CT, Jose Pagan, 37, of Hartford, CT, and Samantha Partlow, 29, of Barre, VT, made initial appearances today in the United States District Court in Burlington, following their arrests for conspiracy to distribute heroin. U.S. Magistrate Judge John M. Conroy temporarily detained all three people. Their detention hearings are set for next week.
According to court documents, in the spring of 2015, the ATF began an investigation into Samantha Partlow. ATF had received information that Partlow was selling heroin and crack cocaine from her apartment at 100 Summer Street in Barre and that her drug suppliers were people from the Hartford, CT area. In October and November 2015, the ATF used a confidential informant to conduct three controlled buys of heroin from Partlow at Partlow’s apartment on Summer Street. On November 17, 2015, ATF executed a search warrant at Partlow’s residence. As the ATF approached the residence, a person from inside the apartment, later identified as Wilson Santiago, threw a package of crack out one of the windows of Partlow’s apartment. Inside the residence, ATF found heroin, along with a scale and other paraphernalia used to package drugs. Santiago and Pagan (who was also inside the house during the search) were identified as two of the men from Hartford, CT, who were supplying Partlow with heroin and crack.
The United States Attorney, Eric S. Miller, emphasized that the charge against Santiago, Pagan and Partlow is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face up to twenty years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Santiago is represented by Craig Nolan, Esq. Pagan is represented by the Federal Public Defenders Office. Partlow is represented by Richard Bothfeld, Esq. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
Peter Foy Sentenced for Bankruptcy FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Peter Foy, 62, of Alburg, was sentenced today in United States District Court in Burlington to one year of probation following his guilty plea to a charge that he concealed assets in his bankruptcy case. U.S. District Judge William K. Sessions III also ordered that Foy pay a fine of $3000.
On June 22, 2015, Foy pleaded guilty to a one-count information charging him with bankruptcy fraud. According to the charging document, in November 2014, Foy filed a chapter 7 bankruptcy petition in the United States Bankruptcy Court for the District of Vermont. The petition sought to discharge all of Foy's unsecured debts. In his petition and accompanying schedules, which Foy swore were complete and accurate, Foy was required to disclose all his assets and liabilities, including any real estate he owned. Foy did disclose the home he owned in Vermont, but not a second house he owned in Quebec, Canada. Foy had acquired sole title to that five-bedroom lakefront property in 2007. Before filing for bankruptcy, Foy had listed the Quebec house for sale at a price of nearly $340,000 (Canadian). Foy also failed to disclose to the Bankruptcy Court that the Canadian property had reportedly generated rental income of $22,500 in 2013 and $20,300 in 2014. A subsequent appraisal of the property showed that it had a fair market value of only about $204,000 and was encumbered by a mortgage of about $175,000.
This case was investigated by the Federal Bureau of Investigation. Foy is represented by Norman Blais. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Canadian Corporation Sentenced to 80K Fine After Importation of Contaminated Cattle FeedRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Yves Bolduc, President of the Quebec cattle feed brokerage and manufacturing company, Meunerie Sawyerville, Inc., appeared Monday in United States District Court in Rutland on behalf of the Canadian corporation. United States District Court Judge Geoffrey Crawford sentenced the defendant corporation to one year of probation and two fines of $70,000 and $10,000 on the two felony counts of conviction. The corporation had previously pled guilty to one count of making a false statement to the United States government, and one count of fraudulently causing the cattle feed drug monensin to be introduced into interstate commerce at a level of concentration significantly higher than that allowed by the U.S. Food and Drug Administration. According to court documents, on or about Sept. 12, 2012, Meunerie Sawyerville sent a driver into the United States with a truckload of cattle feed medicated with the regulated drug monensin at a concentration above that allowed by the FDA and 200% more than what was marked on the label. The feed was sampled at the border, and the driver was ordered to warehouse the feed pending further testing from the FDA. Contrary to orders from U.S. officials, Bolduc instructed the driver to deliver the feed to the Vermont farmer as planned, without informing the farmer that the feed had been sampled and ordered held by the FDA. The driver did deliver the medicated feed to the customer, and the Vermont cows consumed the contaminated feed. Bolduc thereafter engineered a plan that a sham shipment of similar-looking cattle feed cross the border under false Customs documentation to be stored on an unrelated piece of land in Vermont until requested for redelivery by Customs and Border Protection. Upon Customs’ request, Bolduc ordered that the sham shipment be presented for redelivery, accompanied by fictitious documentation that represented the sham shipment of feed to be the tainted feed, which was in fact already consumed by Vermont cows. United States Attorney Eric Miller emphasized the importance of enforcing the FDA’s rules on medicated feed, stating, “Vermonters care deeply about the quality and content of the milk our farmers produce and our families drink. My office will continue to work closely with the FDA to make sure that feed suppliers comply with laws that protect consumers from tainted products.” Meunerie Sawyerville was represented by Attorney Bud Allen. The prosecutor was Assistant U.S. Attorney Abigail Averbach. The United States Attorney would like to express his gratitude to the U.S. Food and Drug Administration’s Office of Criminal Investigations, Veterinary Drug Specialists, and Office of the Chief Counsel, for their excellent investigative work and assistance with this case.Two Brooklyn New York Narcotics Dealers Sentenced for Distributing Heroin and Crack Cocaine in RutlandRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Alvin Kinard (a.k.a. “Baby”), 25, and Stephen Morrison (a.k.a. “MJ”), 25, both from Brooklyn, New York, were sentenced by Chief Judge Christina Reiss in U.S. District Court in Burlington. Judge Reiss sentenced Kinard to 48 months imprisonment and sentenced Morrison to 46 months imprisonment. She also sentenced both to three years of supervised release, which will follow their prison sentences. Kinard and Morrison had previously pled guilty to conspiracy to distribute heroin and crack cocaine in the Rutland area.
According to court papers, on September 9, 2013, defendants Kinard and Morrison obtained heroin and crack cocaine in Brooklyn, New York, and began traveling by car from Brooklyn north to Rutland, Vermont with two women from Vermont, one of whom was driving. At Kinard’s and Morrison’s direction, the two Vermont women were carrying over 100 grams of crack cocaine and about 40 grams of heroin, in total. Early that morning, the New York State Police stopped the car for a motor vehicle violation near Albany and seized the drugs. Kinard and Morrison were later charged in Vermont with a longer term drug conspiracy that included many other trips from Brooklyn to Rutland, Vermont.
At the sentencing hearings, Judge Reiss stated that a “common theme” of this conspiracy was “using young women” for “body packing” and having young women addicts “take most of the risk” as “human mules.” Judge Reiss also described the adverse impact of heroin on various Vermont communities.
This case was investigated by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration. The United States is represented by Assistant U.S. Attorney Joseph Perella. Kinard is represented by Mary Kehoe, Esq. of Burlington and Morrison is represented by Michael Shklar, Esq. of Newport, New Hampshire.
Ronald Rup, Jr. Pleads Guilty to Equipment Theft from Agri-MarkRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ronald Rup Jr., 53, of Fairfax, pleaded guilty today in United States District Court in Burlington to a charge of wire fraud. Chief District Judge Christina Reiss released Rup on conditions pending sentencing, which is set for May 10, 2016.
Last month, the United States Attorney filed a criminal information charging Rup with wire fraud, and Rup pleaded guilty to that charge today. According to the information, Rup was employed by Agri-Mark as its manager of IT infrastructure. Several years ago, when Agri-Mark was constructing a new headquarters in Waitsfield, Rup was the employee responsible for purchasing the IT network equipment for the facility. As part of his criminal scheme, Rup caused Agri-Mark to purchase more than 100 pieces of switching equipment than were needed to serve the new building. The switches were expensive – many costing $8500 or more. Between about April 2012 and March 2012, Rup stole the extra switches from Agri-Mark's inventory and sold them over the Internet to a Texas company which specializes in buying and selling new and used IT networking equipment. Rup sold the switches for about one-third of their cost to Agri-Mark. The Texas company paid for the switches by depositing funds into Rup's PayPal account. Altogether, Rup realized more than $475,000 from the sales. He used the money, to buy vehicles, snowmobiles, motorcycles and jewelry, and to pay for improvements to his home, among other things.
Rup faces up to 20 years of imprisonment and a fine of up to twice Agri-Mark's loss. His actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Federal Bureau of Investigation.
Rup is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.
New Yorker Wen Ping Chen Pleads Not Guilty to Credit Card ScamRead the Press Release
The United States Attorney for the District of Vermont announced that Wen Ping Chen, 47, of Brooklyn, New York, pleaded not guilty today in United States District Court in Burlington to charges of credit card fraud. U.S. Magistrate Judge John M. Conroy released Chen on conditions pending trial, which has not been scheduled.
On October 15, 2015, a federal grand jury in Burlington returned a three-count indictment charging Chen with conspiring to commit access device fraud, possessing 15 or more counterfeit access devices, and using counterfeit access devices. The charges stem from an incident in August 2014 which resulted in the arrests in South Burlington of alleged co-conspirators Shao Qing Chen (no relation) and Kewang Lin.
According to the indictment, between about 2013 and August 22, 2014, Wen Ping Chen conspired with Shao Chen, Kewang Lin and others to commit credit card fraud. As part of the conspiracy, the defendants would travel from New York to other states and use counterfeit credit cards to make purchases, primarily of gift cards. The merchandise acquired through the fraudulent purchases would then be resold on a black market. According to the indictment, Wen Ping Chen, Shao Chen and Lin drove from New York to Vermont in August 2014. Shao Chen and Lin spent two days in Vermont making purchases with counterfeit credit cards provided to them by Wen Ping Chen. On August 22, 2014, Shao Chen and Lin were arrested and have since been charged in federal court with access device fraud. Wen Ping Chen was also arrested but was then released. More than 80 counterfeit credit cards were recovered, as well as thousands of dollars worth of gift cards.
Shao Chen has pleaded guilty and is awaiting sentencing. Charges against Lin are still pending.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Wen Ping Chen 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.
This case was investigated by the South Burlington Police Department; the United States Secret Service, and the Bureau of Immigration and Customs Enforcement.
Chen is represented by Paul Brenner. The prosecutor is Assistant U.S. Attorney Gregory Waples.
U.S. Attorney’s Office Launches “U Can Stop Traffick” Campaign Against Sex and Drug TraffickingRead the Press Release
United States Attorney Eric S. Miller, along with representatives from Vermont’s 2-1-1 network, Give Way to Freedom, the United Way, the Vermont Department of Child and Family Services, the Center for Crime Victim Services, the Vermont Attorney General’s Office, the Vermont Network Against Domestic and Sexual Violence, the Vermont Human Trafficking Task Force, elected leaders, and other non-profit and law enforcement entities today announced the launch of a new campaign raising awareness about sex and drug trafficking activities in the state.
The campaign will kick off with the release of the “U Can Stop Traffick” public service announcement, which will begin airing on Vermont television stations today and can be viewed on the campaign’s website, www.UCanStopTraffick.org. The website also includes the powerful stories of women who have been trafficked, recorded in their own words and voices, along with resource lists for individuals in need of help.
As Miller explained at a press conference at Burlington’s Contois Auditorium, heroin traffickers in Vermont do not work alone. They rely on local networks of people to support their illegal and destructive business model. These networks assist drug dealers by providing housing, contacts, and vehicles, and by transporting drugs. In some cases, Vermonters are also used by drug dealers for sex trafficking that profits their illicit drug organizations.
“We in law enforcement are working closely with our non-profit partners and elected leaders to undermine the foundations of drug dealing and help victims escape traffickers,” U.S. Attorney Miller said. “This public service announcement will raise awareness of the dangerous intersection of drug and sex trafficking in Vermont and connect affected individuals with the help and resources they need.”
U.S. Senator Patrick Leahy, D-VT, who led successful efforts to reauthorize the Violence Against Women Act and the Trafficking Victims Protection Act and recently brought funding to Vermont to combat heroin trafficking, lauded the work of the U.S. Attorney’s Office and its partners. Leahy said: “Once again Vermont is leading the way to find thoughtful, effective solutions to problems that erode our communities. Drug trafficking and human trafficking are terrible crimes. They destroy lives, devastate families and weaken communities. To fight back effectively, we must coordinate our efforts, and I am proud to see the collaboration among such dedicated partners.”
Burlington Mayor Miro Weinberger said: “Today’s fight against the opiate crisis in our community requires an all hands on deck response and engaging all aspects of the problem. The Burlington Police Department is redoubling its efforts to stop the rising trafficking of heroin in our community and to stand up for the many victims of this terrible trade. I am grateful for the important partnership with the U.S. Attorney’s Office, the Governor’s Office, the State’s Attorney’s Office, medical providers, and community support services in this fight against drug and sex trafficking in Vermont.”
The U Can Stop Traffick public service announcement was conceived by the United States Attorney’s Office, which engaged its law enforcement, non-profit, and social service providers to help create the campaign. The video and website were produced by Moving Pictures Division and the design work was done by RetroMotion Creative of Williston, Vermont and can be viewed at www.UCanStopTraffick.org.
Kenneth Holland Sentenced to 60 Months for Possession with Intent to Distribute Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kenneth Holland, 49, of Barre, Vermont was sentenced today to a 60-month term of imprisonment. Chief Judge Christina Reiss also ordered that Holland be subject to a four-year term of supervised release upon completion of his prison term. According to court documents, law enforcement encountered Holland on December 26, 2014 as he drove a car at an excess speed in Barre. Holland falsely identified himself to the police. After he permitted a search of the vehicle, law enforcement recovered 53 grams of crack cocaine, a .22 caliber pistol hidden in a candy box, ammunition, a drug ledger, drug paraphernalia, and over $2600 in cash. When law enforcement attempted to arrest him, Holland attempted to run from the scene, causing injury to one of the officers. He was apprehended seconds later. Holland was charged federally with possession of a firearm as a convicted felon and possession with intent to distribute cocaine base. He has remained in custody since his December 2014 arrest. This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Barre Town and Barre City Police Departments. The United States was represented by Assistant U.S. Attorney Kevin J. Doyle. Holland was represented by Elizabeth Quinn, Esq. of the Federal Defender’s Office.Hermitage Inn and Ski Club Owner Agrees to Pay over $72,000 in Fines and Restitution to the Forest Service Concerning Damages to Deerfield Ridge Snowmobile Trail in WilmingtonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that James Barnes, of Wilmington,Vermont has agreed to pay $25,000 in civil fines and over $47,700 in restitution to fund repairs to the Deerfield Ridge Trail, a snowmobile trail that is partly on the Green Mountain National Forest (“GMNF”). The Deerfield Ridge Trail traverses part of the GMNF on the ridgeline below Haystack Mountain. This settlement concerns a Forest Service investigation into unauthorized trail work in November 2012 on a portion of the Deerfield Ridge Trail located in Wilmington,Vermont, including the unauthorized use of an excavator. According to court records, the excavator used to conduct this unauthorized trail work belonged to the Hermitage Inn Real Estate Holding Company LLC (hereinafter the “Hermitage”). James Barnes is the principle shareholder of the Hermitage. The GMNF alleged that James Barnes, on behalf of the Hermitage, directed other individuals to use this excavator to conduct the unauthorized trail work, which included excavation and some tree cutting. This work adversely impacted about three miles of the Deerfield Ridge Trail on GMNF lands. The excavator was also used on other parts of the Deerfield Ridge Trail that are located on private lands. The Government alleges that the trail work was not authorized by the GMNF. In addition, the excavation and trail work on the GMNF was not done to professional standards and did not include sufficient soil stabilization, such as water bars, seeding, and other standard erosion control measures. The GMNF estimates that it will cost $45,049.11 to fully repair the damage from this unauthorized excavation and trail work on the Deerfield Ridge Trail (additional work will be completed upon payment of the restitution). These expenses included: emergency mitigation costs, restoration costs, and labor. The Green Mountain Club performed part of this work and incurred $2,711.73 in expenses (which is the portion not covered by the Forest Service cost sharing agreement). Barnes agreed to pay this restitution in full. In agreeing to settle this matter, Barnes also agreed to pay the maximum penalty of $5,000 for each of five different violations of the United States Code of Federal Regulations alleged by the Forest Service, for a total fine of $25,000. The violations allege the following: (1) constructing or maintaining trail without authorization; (2) damaging a Forest Service trail; (3) unlawful operation of a motor vehicle on trails; (4) cutting or damaging timber; and, (5) damaging federal property. A copy of the settlement agreement was filed in United States District Court. This matter was investigated by the Law Enforcement and Investigations Division of the United States Forest Service. The United States Forest Service is represented in this matter by Assistant U.S. Attorney Joseph Perella. The Hermitage and James Barnes are represented by David Silver in Bennington, Vermont.Richard Borden Sentenced to 18 Months After Conviction for Failure to Register as A Sex OffenderRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Richard Borden, 37, was sentenced today in U.S. District Court in Burlington after his conviction for traveling across state lines and failing to register or update his registration as a sex offender. U.S. District Judge William K. Sessions III sentenced Borden to an 18-month term of imprisonment to be followed by a 5-year period of supervised release.
Borden was convicted of sexual assault in 2000 in Bennington County, a crime for which he received a sentence of 4-20 years’ imprisonment. Borden served 14 years in custody in that case. Approximately three weeks after his release from state custody in summer 2014, Borden was arrested for failure to comply with Vermont’s sex offender registry law. In November 2014, Borden was charged federally with a violation of the Sex Offender Registration and Notification Act (SORNA), after it was learned that Borden had been residing for several weeks in Hoosick Falls, New York, without notifying Vermont or New York authorities as required by law. Under federal law, an individual required to register under SORNA generally must register or update his registration as a sex offender whenever he travels interstate.
This matter was investigated by the United States Marshals Service, with the assistance of the Bennington Police Department, the Vermont State Police, the Vermont Department of Corrections, and the Hoosick Falls, New York Police Department. The United States was represented by Assistant U.S. Attorney Kevin J. Doyle. Borden was represented by Elizabeth Quinn, Esq. and Steven Barth, Esq. of the Federal Defender’s Office.
Two Rutland Residents Charged FederallyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Young Lim (a.k.a. “Johnny”), 34, and Andi Majka, 27, both of Rutland, were charged with felony distribution of crack cocaine in the Rutland area. The allegations in the indictment concern alleged conduct from May and August of 2014. Both Young and Majka entered not guilty pleas at their arraignment. Magistrate Judge John Conroy granted the Government’s motion to detain them, without bail, and ordered that both be held in the custody of the U.S. Marshals pending trial. The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If convicted, Lim and Majka face a maximum possible term of imprisonment of twenty years. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. This case was investigated by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Rutland Police Department. The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella. Young Lim is represented by David McColgin, Esq. of the Federal Public Defenders Office in Burlington. Andi Majka is represented by David Watts, Esq. of Burlington.Floridian Man Sentenced to Jail for 18 Months for Possession of Crack CocaineRead the Press Release
Eric S. Miller, United States Attorney for the District of Vermont, stated that Tyrone Dixon, 35, of St. Augustine, Florida, was sentenced Tuesday in United States District Court in Rutland by U.S. District Court Judge Geoffrey W. Crawford, to 18 months in prison followed by three years of post-release supervision, for possession with intent to distribute approximately 50 grams of crack cocaine.
According to court records, in the early morning of January 5, a Customs and Border Protection Officer stationed at the Derby Line Port of Entry noticed a vehicle making an illegal U-turn in between the ports of entry for the United States and Canada. The car had traveled north towards Canada but turned back before attempting entry into Canada. Customs and Border Protection Officers worked with Special Agents from Homeland Security Investigations to inspect the vehicle and conduct interviews with driver Tyrone Dixon and passenger Emily Lasell of Vermont. From the vehicle, a Customs and Border Protection Officer recovered a hollowed-out loaf of bread concealing approximately 50 grams of crack cocaine, some of which was already packaged for distribution, re-wrapped inside a plastic bread bag, and concealed inside a bag of otherwise innocuous groceries. A Customs and Border Protections Officer also recovered five syringes that appeared to have been used and approximately twenty-five used or torn white packages consistent with the packaging commonly seen in the heroin trade. From inside the passenger’s bra, a Customs and Border Protection Officer recovered two small packages commonly known as “tickets” of heroin.
On January 15, 2015, Dixon was indicted by a federal grand jury on a one-count indictment charging him with Possession with Intent to Distribute a Controlled Substance. Dixon pleaded guilty to the sole count in the indictment on June 2, 2015, pursuant to a plea agreement.
The case was jointly investigated by Homeland Security Investigations and Customs and Border Protection. The United States Attorney commends those agencies for their work and cooperation. Dixon was represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
Michael DePalma, Louis Turcio, and Andrew Darling Indicted in Bath Salts ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael DePalma, 56, of Plainfield, New Hampshire, Louis Turcio, 51, of Springfield, Vermont, and Andrew Darling, 52, of North Walpole, New Hampshire, appeared today in United States District Court in Burlington following their arrests on a charge of conspiracy to distribute alpha-pyrrolidinopentiophenone, or a-PVP, commonly known as “flakka” or “bath salts.” In addition to the conspiracy charge, the September 24, 2015 indictment charged Turcio with possession with intent to distribute a-PVP on April 14, 2015, and possession of a firearm as a convicted felon. U.S. Magistrate Judge John M. Conroy ordered that Michael DePalma’s arraignment and detention hearing will occur on October 2, 2015. Judge Conroy also ordered that Darling and Turcio’s detention hearing will take place on October 6, 2015. All three defendants were ordered detained pending their detention hearings. If convicted of the drug conspiracy offense, DePalma, Turcio, and Darling face a maximum possible penalty of 20 years in prison and fines of up to $1,000,000. If convicted of the firearms charge, Turcio faces a maximum possible penalty of 10 years in prison.
According to court records, as part of a long-term investigation into bath salts distribution in the Springfield, Vermont area, law enforcement gathered evidence indicating that DePalma, Turcio, and Darling participated in a months-long enterprise involving the importation of bath salts for distribution in Springfield and neighboring areas. The alleged conspiracy involved the on-line ordering of substantial amounts of bath salts from a supplier in China, wiring of thousands of dollars overseas to purchase the product, and arranging for delivery of the bath salts to locations in Vermont and New Hampshire.
On April 14, 2015, law enforcement seized from Turcio approximately one kilogram of a-PVP in Springfield, Vermont. During the execution of a March 9, 2015 search warrant at Turcio’s residence, law enforcement recovered several handguns.
The United States Attorney’s Office emphasizes that the charges against DePalma, Darling, and Turcio are only accusations and they are presumed innocent unless and until they are proven guilty. Any sentences imposed in this case will be advised by the U.S. Sentencing Guidelines. U.S. Attorney Eric Miller commended the efforts of the agencies involved in this investigation, which include 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, and the Plainfield, New Hampshire Police Department.
The prosecution is being handled by Assistant U.S. Attorney Kevin J. Doyle. DePalma is represented by Jordana Levine, Esq., Darling is represented by Lisa B. Shelkrot, Esq., and Turcio is represented by Frank J. Twarog, Esq.
Thomas Keith of Bennington Sentenced to 41 Months on Heroin and Cocaine ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Thomas Keith, 42, of Bennington, Vermont, was sentenced on September 24, 2015 in United States District Court in Rutland to 41 months in prison and three years of supervised release. Keith also forfeited $1,084 in connection with his drug distribution activities. This sentence followed Keith’s conviction on one count of conspiracy to possess with intent to distribute heroin and cocaine, and one count of possession with intent to distribute heroin. U.S. District Judge Geoffrey W. Crawford also ordered Keith to pay a $200 special assessment. In March 2011, law enforcement intercepted a package addressed to Keith that contained approximately 367 grams of cocaine and 80 grams of heroin. Subsequently, as part of a Vermont Drug Task Force investigation, law enforcement conducted three controlled purchases of heroin from Keith in April and May 2014. Law enforcement executed a search warrant at Keith’s Bennington residence on May 16, 2014, finding 75 bags of heroin, drug paraphernalia, and $1,084 in cash. This matter was investigated by the Vermont Drug Task Force, with the assistance of the U.S. Drug Enforcement Administration, Homeland Security Investigations, the Bennington Police Department, the Bennington County Sheriff’s Department, the Vermont Department of Liquor Control, and the Vermont Department of Motor Vehicles. Assistant U.S. Attorney Kevin J. Doyle handled the prosecution in this matter. Keith was represented by Assistant Federal Defender Elizabeth K. Quinn.Man Pleads Guilty to Significant Heroin and Cocaine Conspiracy Involving Mexican Drug CartelRead the Press Release
The United States Attorney's Office for the District of Vermont stated today that David Baez Garcia, age 49, a citizen of the Dominican Republic, has pleaded guilty in front of Chief Judge Christina Reiss in the U.S. District Court in Burlington to a conspiracy to distribute five kilograms or more of cocaine, 100 grams or more of heroin and oxycodone from in or about Summer 2009 through in or about June 2010.
According to documents filed with the Court and testimony from a jury trial that took place starting on September 9, 2015, Baez Garcia, who also used the names Josue Ortiz and Jose Altagracia Ramirez Beltre, came to Rutland, Vermont in 2008. With the assistance of Alexis Jimenez and Florencio Reyes, who he met in New Hampshire, Baez Garcia brought hundreds of grams of heroin and multiple kilograms of cocaine into Vermont during the time frame of the conspiracy. Rauddys Barias Tejeda, of Providence, Rhode Island, supplied the heroin, which in total reached kilogram levels, as well as some of the cocaine. In 2009, Baez Garcia also received multi-kilogram shipments of cocaine from two brothers-in-law, Canciano Marquez Mayorga and Candelario Tovar Garcia, who, in turn, were receiving the cocaine from a Mexican drug cartel. After obtaining the cocaine from across the United States-Mexican border in Arizona, Marquez Mayorga and Tovar Garcia, then residing in Manchester, New Hampshire, had it shipped across the country in tractor trailers for redistribution in Vermont and New Hampshire, among other locations. The Vermont group received the final shipment of 10 kilograms of cocaine, worth in excess of $300,000, in late 2009. It traveled across country via tractor trailer to Pawtucket, Rhode Island. Thereafter, it was stored in Worcester, Massachusetts en route to Vermont. Law enforcement seized three kilograms of this shipment during a traffic stop in Massachusetts on December 15, 2009 when it was being transported to Vermont.
As the United States Attorney’s Office stated in its filings, none of these men had any connection to Vermont prior to engaging in drug trafficking here. “Collectively, these men preyed upon addicted individuals in the Rutland area, as well as in other places, for their own profit.”
Baez Garcia pleaded guilty to the charged conspiracy five days into the jury trial. Thereafter, the jury trial was discontinued. According to the plea agreement filed with the Court, Baez Garcia has agreed to serve between fifteen and eighteen years in jail for his crime.
As a result of the broader investigation, the United States Attorney’s Office has convicted seventeen defendants associated with this drug conspiracy, including Baez Garcia. This includes Alexis Jimenez, age 48, of Nashua, New Hampshire, Florencio Reyes, age 46, of Worcester, Massachusetts, Canciano Marquez Mayorga, age 29, Candelario Tovar Garcia, age 43, and Rauddys Barias Tejeda, age 43.
The United States also has convicted Justine Durfee, Jessica Lever, Thomas Morrissey, Peter Stout, Samantha Thuman, and Danielle Jankowski, of Rutland, Vermont. These individuals were involved in supporting the drug conspiracy by delivering drugs, providing housing, registering vehicles, or doing other tasks related to the conspiracy for Baez Garcia. In addition, the United States has convicted Edgar Corona and Ramiro Reyes of Worcester, Massachusetts, and Roberto Melendez and Elijah Kleinhans, of Lebanon, New Hampshire for their roles in delivering drugs or otherwise assisting the drug conspiracy. Letitia Carstensen, of Milton, Vermont, also was convicted of drug charges related to her involvement into drug distribution with her then-boyfriend, Alexis Jimenez.
This case was investigated by the Drug Enforcement Administration with assistance from the Southern Vermont Drug Task Force, the Vermont State Police, and the Burlington Police Department. United States Attorney Eric Miller commends the exemplary work of the federal, state and local law enforcement agencies investigating this matter.
The United States was represented in this matter by Assistant U.S. Attorney Heather Ross. Assistant United States Attorney Timothy C. Doherty, Jr., also represented the United States at the trial against David Baez Garcia. Baez Garcia is represented by David Williams, Esq. and Brooks McArthur, Esq. of Burlington.
Vermont Gas Stations and Convenience Stores Take Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that in celebration of the 25th anniversary of the Americans with Disabilities Act (ADA) and in recognition of the work yet to be done to fully realize the goals of the ADA, Vermont state agencies, the U.S. Attorney’s Office for the District of Vermont, non-profits and the business community are collaborating to educate gas station and convenience store owners about their responsibilities under the ADA and Vermont’s Public Accommodations Act. Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity.
In an effort spearheaded by the Vermont Human Rights Commission (VHRC), the U.S. Attorney’s Office for the District of Vermont, the Department of Motor Vehicles, the Agency of Agriculture, the Agency of Natural Resources and Department of Aging and Independent Living joined forces with Disability Rights Vermont, Champlain Oil, the Vermont Retail & Grocers Association, the Vermont Petroleum Association and the American Petroleum Institute to distribute information through a variety of means to all of Vermont’s gas stations and convenience stores.
The goal of the campaign is to raise awareness about the specific requirements that gas stations have towards individuals with mobility impairments. Over 30,000 Vermonters have been issued a registration plate or parking card indicating some degree of mobility impairment.
In order to comply with the ADA and Vermont law, entities that sell gasoline must, among other things:
• pump gas for the individual with a plate or parking card, provided more than one staff person is on duty at the time;
• charge that individual the same self-service price available to patrons who pump their own gas;
• prominently display the international symbol of accessibility and provide a means for individuals with disabilities to communicate the need for assistance either through a call button on the fuel dispenser, signage with a telephone number to call and/or signage indicating that individuals with disabilities may honk their horn for assistance. Signage must comply with ADA font size requirements;While some gas stations do have proper signage and a means to request assistance with pumping fuel, many do not. For David Sagi, the Title II ADA Program & Service Coordinator for the State of Vermont, and a wheelchair user, the lack of compliance has real consequences. “I travel a lot with my job,” he said. “I’ve had to memorize where the remaining full service stations are because I can’t count on being able to get gasoline at a self-serve station.”
The Vermont Retail & Grocers Association (VRGA) and the Vermont Petroleum Association, which represent the industry, were on board from the beginning of the project. “This is really about equal rights and ensuring that all Vermonters have access to an essential service,” said Jim Harrison, executive director of the VRGA. “This is not a matter of hostility or indifference. Gas stations simply need information about their responsibilities.” In order to assist gas stations in complying, the VRGA/VPA have printed up decals that can be placed on gas station pumps and paid for a mailing to all gas stations with a Frequently Asked Questions flyer and information about how to obtain the decals.
“Our goal is to gain compliance through education,” said VHRC Executive Director Karen Richards. “Enforcement actions are time-consuming and less effective. If, however, after this push to educate providers, we find gas stations that are not in compliance, we may have to resort to enforcement. I’m hopeful that won’t be necessary and that gas stations will see this as an opportunity to be welcoming to a broader range of customers and visitors to the state.”
“This is an important civil rights issue in a rural state like Vermont – making sure that individuals with disabilities are able to access the services provided by gas stations and convenience stores. This collaborative effort seeks to educate businesses, encourage compliance, and improve accessibility all at the same time,” said Assistant United States Attorney Nikolas P. Kerest, who with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States.
The Vermont Human Rights Commission can be contacted at 800-416-2010 or at [email protected]. For further information on the ADA and its requirements see www.ada.gov.
Carmen Dozier Imprisoned for Inn Embezzlement and Bank FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Carmen Dozier, 39, of Rutland, was sentenced today in United States District Court in Rutland to 15 months of imprisonment following her guilty plea to wire fraud. U.S. District Judge Geoffrey Crawford also ordered that Dozier serve three years of supervised release following completion of her prison term and pay restitution of more than $81,000. The court directed that Dozier surrender to the Bureau of Prisons on a to-be-determined date after November 1.
Last February, a federal grand jury in Rutland returned a two-count indictment charging Dozier with wire fraud and bank fraud. According to the indictment, in May 2013 Dozier was hired as the front desk manager at the Brandon Inn in Brandon, Vermont. Dozier prepared payroll records which were sent to the Inn's payroll processing company. She also took and confirmed reservations and paid vendors for goods and services for the Inn. Beginning in July 2013 and continuing until mid-May 2014, Dozier embezzled about $75,000 from the Inn. She did this by falsifying the Inn's payroll records to inflate the regular and overtime hours she ostensibly worked, causing the Inn's payroll processor to issue her paychecks or electronic direct deposits in amounts that exceeded her earned income. Dozier also caused fraudulent electronic transfers of Inn funds to her personal bank account at Lake Sunapee Bank. In addition, Dozier fraudulently used credit cards issued to the Inn's owners to make personal purchases, and fraudulently opened and used a BillMeLater PayPal service account.
Dozier also defrauded Lake Sunapee Bank by depositing, and attempting to deposit, about $20,000 worth of checks which were made payable to Dozier and which were purportedly signed by family members. In fact, the checks were written against out-of-state accounts which either were closed or did not contain sufficient funds. Dozier attempted to withdraw the apparent proceeds of the checks from Lake Sunapee Bank before the checks were dishonored. Lake Sunapee Bank suffered a loss of more than $3800.
This case was investigated by the Brandon Police Department and the Federal Bureau of Investigation.
Dozier is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
12 People Charged with Heroin Trafficking After Statewide Multi-Jurisdictional InvestigationsRead the Press Release
The Office of the United States Attorney for the District of Vermont and Vermont's federal, state, and local law enforcement officials today announced federal criminal charges against 12 individuals accused of trafficking heroin in Vermont. The charges resulted from three long-term investigations characterized by a high level of cooperation among federal, state, and local agencies. In total, the three investigations seized the equivalent of 20,000 bags of heroin with a street value of approximately $200,000.
United States Attorney Eric Miller praised the agencies that assisted in the investigations and arrests, which included the Drug Enforcement Administration (DEA), the Vermont State Police Drug Task Force, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol Tobacco and Firearms (ATF), Homeland Security Investigations (HSI), Customs and Border Protection (Plattsburgh Air Branch), the Burlington Police Department, the Rutland Police Department, and St. Johnsbury Police Department. Miller pointed to the recent criminal charges as examples of the cross-jurisdictional cooperation necessary to combat heroin trafficking in Vermont, saying, "We will continue to achieve these meaningful results only by sharing information, expertise, and personnel across federal, state and local agencies."
All of the charges announced today will be prosecuted by the United States Attorney’s Office’s Heroin Trafficking Team. First organized in January 2015, the Heroin Trafficking Team is an effort by the United States Attorney's Office to focus federal prosecutorial resources in a manner best designed to disrupt the flow of heroin into and within Vermont. The Team consists of four prosecutors, each of whom is assigned to one of the four quadrants of the State for purposes of initial charging decisions and information gathering. They conduct weekly conference calls with the officers and agents performing the on-the-ground police work in those quadrants. Together, the prosecutors, officers, and agents prioritize targets and discuss strategic and legal issues surrounding each investigation. The Team members also meet regularly to share information about their quadrants.
The United States Attorney’s Office has charged 87 defendants with heroin-related federal crimes in the first eight months 2015, compared to 56 defendants during that same period last year, an increase of nearly 60%. Those increases are directly attributable to the combined work of law enforcement officers and prosecutors.
State, federal, and local officials have made clear their commitment to continuing their high level of coordination in response to Vermont’s heroin crisis. “DEA is committed to investigating and dismantling Drug Trafficking Organizations (DTO), like those operating in Vermont,” said Special Agent in Charge Michael J. Ferguson. “DEA will aggressively pursue trafficking organizations or individuals who are coming from out of state to distribute illegal drugs -- in this case heroin and cocaine -- to areas of Vermont in order to profit and destroy people’s lives, and wreak havoc in our communities. This investigation would not have been a success without the continued commitment of our state and local law enforcement partners.”
Vermont Governor Peter Shumlin added, "I want to thank the United States Attorney’s Office and all of the state, federal, and local law enforcement officers who worked together to bring these individuals to justice. Their coordinated efforts to keep this poison out of Vermont are a key part in our battle against addiction. We're all in this one together - prosecutors, judges, law enforcement, health care providers, policy makers, and others. Everyone has a part to play as we work to find new and better ways to confront a problem affecting every state in America."
A brief summary of each investigation and the resulting allegations is provided below. Documents related to each investigation are attached to the electronic copy of this press release posted on the website of the United States Attorney’s Office.
The Allegations Regarding Miguel Zayas, Lamar Carter, and Others
On September 10, 2015, a federal grand jury returned a fourteen-count indictment charging eight people with a large-scale heroin and crack cocaine trafficking conspiracy based in Caledonia County. Miguel Zayas, Lamar Carter, Karen Schumann, Derek Dawson, Ryan Farnham, Thomas Newman, Taylor May, and one other not yet arrested, are charged with conspiring to distribute heroin and crack cocaine in Vermont from early 2014 through August of this year. In filings with the court, the government has alleged the following with respect to the defendants: The drug ring – which trafficked mainly in heroin – was supplied by Zayas, 30, of New Jersey City, New Jersey and, his partner, Lamar Carter, age 24, who is from Brattleboro and also has ties to New Jersey. The remaining six defendants named in the indictment are Vermonters who reside in Caledonia County and served as the local infrastructure for the Zayas-Carter heroin business. These local facilitators are Schumann, age 37, of St. Johnsbury; Dawson, age 25, of St. Johnsbury; Farnham, age 24, of St. Johnsbury; Newman, age 35, of Barnet; and May, age 19, of Lyndon, along with one other defendant who is still at large. Earlier this year, two other Vermont facilitators of the Zayas-Carter heroin business, Sue-Ann Christie, age 46, of St. Johnsbury, and Jacob Isham, age 28, of Lyndon were charged in separate indictments with distribution of heroin. Also yesterday, Lamar Carter’s mother, Jacobina Carter, 39, of Brattleboro was arrested for an unrelated heroin distribution she allegedly committed in Brattleboro earlier this year.
The Zayas-Carter investigation was a long-term multiagency effort spearheaded by the Vermont State Police Drug Task Force. Other agencies involved in the investigation include the FBI, HSI, and the St. Johnsbury Police Department. The Drug Task Force and FBI took the lead in conducting controlled buys and interviewing witnesses. The FBI and HSI played an instrumental role in obtaining federal search warrants for the targets’ cell phone coordinates and electronic devices, as well as for residences of local facilitator defendants in St. Johnsbury and Barnet, Vermont. The St. Johnsbury police department played a key role in assisting with execution of a search warrant at the St. Johnsbury residence of Karen Schumann, who is charged not only with the heroin conspiracy, but with making her residence available for drug use and distribution.
The United States Attorney’s Office emphasizes that the charges against the defendants are only accusations and the defendants are presumed innocent unless and until they are proven guilty.
The Allegations Regarding Michael Villanueava (aka “Unc”)
In January of this year Tyrone Dixon was found by the Department of Homeland Security in Vermont with approximately 80 grams of crack cocaine hidden inside a loaf of bread. In June, he pleaded guilty and admitted in Court to having that drug while working with a man known to Dixon as “Unc.”
In February of this year, the Vermont State police stopped a Vermont-registered jeep on the interstate and discovered approximately 600 bags of heroin in the center console. The vehicle was registered to Sarah Ellwood. Building on some of the intelligence developed from these two cases by the Vermont Drug Task Force and other agencies, in July of this year the DEA obtained warrants to search a hotel room registered in the name of Sarah Ellwood, in Williston, as well as the Ellwood residence in Saint Albans.
In connection with these operations, DEA found approximately 216 grams of heroin, and approximately 250 grams of crack cocaine, a handgun, and a significant amount of cash. The grand jury subsequently indicted John and Angela Hoffman and Dorsey Hunt with conspiracy to distribute crack cocaine and heroin. As alleged in court filings, the Hoffmans and Hunt admitted to working with and at the direction of “Unc” in connection with their drug distribution activities.
Earlier this month, following up on another tip, DEA obtained a warrant to search a hotel room in South Burlington. In connection with this operation in which Burlington and South Burlington Police participated, DEA found approximately 223 grams of heroin and 280 grams of crack cocaine, resulting in charges against three additional persons: Michael Villanueva (whose nickname is “Unc”), Sarah Ellwood, and Felicia Livingston.
The United States Attorney’s Office emphasizes that the charges against Villanueva, Ellwood, Livingston, Hunt, and Hoffman are only accusations and the defendants are presumed innocent unless and until they are proven guilty.
The Allegations Regarding Troy Barnes
Troy Barnes of Rutland was arrested on August 20, as law enforcement executed a warrant obtained by the Vermont Drug Task Force authorizing the search of Barnes’ Rutland residence. Police found approximately 200 grams of heroin – nearly half a pound -- at Barnes’ residence. They also found a loaded handgun in the same kitchen pantry where Barnes allegedly kept part of his stash. This operation was conducted by the Vermont Drug Task Force working closely with the DEA, the FBI, ATF, the Rutland Police Department and other agencies. On August 26, the grand jury in Rutland returned an indictment charging Barnes with possessing more than 100 grams of heroin with the intent to distribute it.
The United States Attorney’s Office emphasizes that the charges against Barnes are only accusations and he is presumed innocent unless and until he is proven guilty.
Burlington Man Sentenced for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Malcolm Lewis, 38, of Burlington, Vermont, was sentenced on September 3, 2015, in United States District Court in Burlington, Vermont, to serve 106 months incarceration and a 10 year period of supervised release following his conviction on one count of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2). Chief U.S. District Judge Christina Reiss also ordered Lewis to pay a $100 special assessment.
According to court records and proceedings, on May 1, 2014, a law enforcement officer was conducting undercover operations on the Ares file-sharing network. The officer observed that a computer using a particular Internet Protocol (IP) address was offering to share videos and still images of child pornography. The officer downloaded three video files from the user of the IP address. These video files depicted small children engaged in sexual activity with adult men, including sadistic and masochistic conduct. Law enforcement traced the IP address to a Burlington address, and obtained a warrant to search the location. Lewis lived at that location and during an interview with law enforcement, he admitted that he downloaded and collected videos and still images he knew to depict child pornography. During a forensic examination of Lewis’ computer, it was discovered that Lewis had more than 2,300 images and 100 videos depicting child pornography. Lewis personally produced approximately 21 of the videos depicting child pornography.
"Few things are more disturbing, heartbreaking, or upsetting to hear than that a child has been harmed by someone who is close to the family," said Matthew Etre, special agent in charge of Homeland Security Investigations (HIS) Boston. "HSI is committed to bringing these predators to justice, and protecting those who shouldn't have to protect themselves."
United States Attorney Eric S. Miller commended HSI’s efforts in the investigation and prosecution of Lewis. The prosecution of Lewis was handled by Assistant U.S. Attorney Barbara A. Masterson. Lewis was represented by David L. McColgin.
U.S. Attorney Miller noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Canadian Man Sentenced to 37 Months in Federal Prison for Marijuana Smuggling ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 17, 2015, Matthew Farkas, 42, of Montreal, Canada, was sentenced to 37 months in federal prison after his guilty plea to charges that he conspired to distribute marijuana and transport the proceeds from that conspiracy across international borders. U.S. District Court Judge William K. Sessions III also ordered that Farkas serve three years of supervised release following his prison term. Farkas also forfeited $35,000 in drug proceeds to the United States at the sentencing hearing.
According to court records, Farkas was involved in a marijuana conspiracy that lasted from 2007 through November of 2012. From Canada, Farkas arranged that bulk quantities of marijuana be smuggled into the United States from Canada at locations in Vermont and Northern New York. The marijuana was then sold in the United States and the cash proceeds from the sales were smuggled from the United States to Canada.
Farkas was arrested in Australia by Australian authorities in 2014 at the request of the United States. He was subsequently extradited back to Vermont to face federal charges. Farkas had moved to Australia in 2011 with his family.
For his crimes, Farkas faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Farkas receive a prison term between 168 and 210 months. In a written plea agreement, the government and defense counsel agreed that the Court should sentence Farkas to a sentence of between 24 and 72 months. In determining that a 37-month sentence was appropriate in this case, Judge Sessions considered, among other factors, Farkas’ decision to remove himself from the conspiracy and obtain legitimate employment in Australia and the fact that Farkas has two young children to support.
United States Attorney Miller commended the efforts of the Drug Enforcement Administration and the Bureau of Alcohol Tobacco and Firearms for their investigation into this matter. The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Farkas is represented by Burlington defense attorney Mark Kaplan.
Two Canadians Appear in Court on Alien Smuggling ChargeRead the Press Release
The United States Attorney for the District of Vermont announced that Junior Alcantara-Ramirez, 29, of Quebec City, and Ginna Reyes-Santos, 31, of Montreal, appeared today in United States District Court in Burlington following their arrest on a charge of alien smuggling. U.S. Magistrate Judge John M. Conroy ordered that both defendants be detained pending further proceedings.
According to the criminal complaint filed today, Border Patrol agents encountered the defendants near Highgate, Vermont at about 3 a.m. on August 12. The defendants were in a car parked by the side of the road with its lights off. In the back seat of the car, agents identified two Indian nationals who had no permission to be in the United States. Records checks showed that the car the defendants were driving had entered the United States from Canada lawfully about one hour earlier. At the time of entry, Alcantara-Ramirez and Reyes-Santos were the only occupants of the car.
According to the complaint, during a subsequent interview with Border Patrol agents, one of the aliens admitted that an unidentified Canadian female had driven the two aliens from Montreal to the border area, let them out and directed them to walk across the border into Vermont. The aliens were given directions where to rendezvous with another driver on the U.S. side of the border. The second driver would transport the aliens to New York City in exchange for a total of $4000.
The smuggled aliens are currently in custody and are being held as material witnesses.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face 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.
Alcantara-Ramirez is represented by Assistant Federal Public Defender Liz Quinn. Reyes-Santos is represented by Katina Francis Ready. The prosecutor is Assistant U.S. Attorney Gregory Waples.
New Jersey Man Faces Heroin ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 12, 2015, Jonathan Nisbett, age 23, of Newark, New Jersey, was charged via federal criminal complaint with possessing with intent to distribute heroin. Nisbett made his initial appearance in federal court on August 12, 2015 before U.S. Magistrate Judge John M. Conroy. At that hearing, Judge Conroy scheduled a detention hearing for Monday, August 17, 2015. At the detention hearing, the Court will decide whether Nisbett will be detained pending trial or released to the supervision of the U.S. Probation Office. The U.S. Attorney’s Office has filed a motion asking the Court to detain Nisbett.
According to court records, the Vermont State Police Drug Task Force conducted a lengthy investigation into potential heroin distribution by Nisbett. On the evening of August 11, 2015, Vermont State Police officers arrested Nisbett at the Amtrak train station in Essex Junction, Vermont after Nisbett arrived in a train from New York City. In Nisbett’s bag, officers found approximately 2,250 bags of heroin. Colonel Matthew Birmingham of the Vermont State Police praised the work of the Drug Task Force, noting that Nisbett’s arrest was the culmination of many months of work by the local, state, and federal agents and officers assigned to the Task Force.
If convicted on the current charge, Nisbett would face a statutory maximum term of 20 years in prison. His actual sentence would be determined with reference to the federal sentencing guidelines. United States Attorney Eric Miller emphasized that the charge in the criminal complaint is only an accusation and Nisbett is presumed innocent unless and until he is proven guilty.
United States Attorney Miller added, “This case is a perfect example of federal, state, and local law enforcement agencies working hand-in-hand to combat heroin distribution in Vermont.” Miller commended the efforts of the agencies involved in investigating heroin crimes, which include the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the Federal Bureau of Investigation, Homeland Security Investigations, the Vermont State Police Drug Task Force, and the Burlington Police Department.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Nisbett is represented by David McColgin of the Federal Public Defender’s Office.
Newport Man Jailed for 16 Months on Weapons ConvictionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Derick Niles, age 37, was sentenced yesterday in United States District Court in Burlington to 16 months in prison, followed by three years of Supervised Release, on his conviction for being a drug user in possession of a firearm.
Niles’s federal conviction arose from his September 25, 2013, confrontation with various law enforcement agencies from the roof of his Newport, Vermont, garage, armed with a rifle. Niles also had ordered his teenage son into the woods with another loaded rifle to maintain a second firing position. The stand-off lasted about five hours. Niles pleaded guilty to the federal firearms charge, and admitted being a drug user, early this year.
At the August 11, 2015, sentencing hearing before U.S. District Court Chief Judge Christina Reiss, the Court rejected Mr. Niles’ argument that his actions could be partially excused by his drug use at the time of the confrontation, adding that the volatile situation could have led to someone being shot. Niles has multiple prior misdemeanor convictions for various crimes during 1995-2014.
Niles has been in the custody of the U.S. Marshal’s Service since June of 2015. The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, and the Newport Police Department. Niles was represented by Assistant Federal Defender Steven Barth. The United States was represented by Assistant U.S. Attorney William Darrow.
Paul Hebert Pleads Not Guilty to Social Security and Medicaid FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Paul Hebert, 50, of Gloucester, Massachusetts, formerly of Barre, Vermont, pleaded not guilty today in United States District Court in Burlington to charges related to Social Security fraud and Medicaid fraud. U.S. Magistrate Judge John M. Conroy released Hebert on conditions pending trial, which has not been scheduled.
On July 23, 2015, a federal grand jury in Burlington returned a four-count indictment charging Hebert with making a false statement of material fact in a matter before the Social Security Administration; concealing and failing to disclose information material to the Social Security Administration’s determination of continued eligibility for benefits; concealing material facts in connection with a matter involving a health care benefit program; and making false statements on an application to receive Vermont Medicaid benefits. According to the indictment, Hebert falsely claimed to be disabled, living alone, with no income, no vehicle, and no assets, when, in fact, he was working as a tuna fisherman and appearing on television, lived with a woman and his child, owned a vehicle, and, at one point, owned a housing unit. The indictment alleges Hebert fraudulently obtained at least $34,500 of Social Security Income Program benefits and $9,500 of Medicaid benefits.
The United States Attorney emphasized that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Hebert faces up to five years imprisonment, and a fine of up to $250,000 on each count of the indictment. The actual sentence would be determined with reference to federal sentencing guidelines.
“The Social Security Administration’s Office of the Inspector General is committed to pursuing those who defraud Social Security’s vital programs and abuse the public trust,” said Scott Antolik, the Special Agent-in Charge of the SSA Office of Inspector General, Boston Field Division. “Supplemental Security Income is a critical safety net for our most vulnerable citizens, and we will continue to work to uphold its integrity through our collaborative efforts with State and Federal agencies.”
“Misrepresenting your income and life circumstances in order to receive Medicaid benefits, as alleged in this case, is illegal and a waste of funds designed to provide health care services for low income and disabled individuals,” said Special Agent in Charge Phillip M. Coyne, Department of Health and Human Services Office of Inspector General, Boston Regional Office. “Our agency will continue to work with our law enforcement partners to protect this program from fraud, waste and abuse.”
United States Attorney Eric S. Miller commended the efforts of the SSA Office of Inspector General, Boston Field Division; HHS Office of the Inspector General, Boston Regional Office; and the National Oceanic Atmospheric Administration, Office of Law Enforcement, in the investigation and prosecution of Hebert. Miller added, “Our office will continue to prioritize the prosecution of fraud cases, particularly when the alleged fraud involves taxpayer dollars intended to serve Vermonters who are most in need.”
Hebert was represented at the hearing by Timothy Fair, Esq. of Blodgett, Watts, Volk & Sussman, P.C. The prosecutor is Assistant U.S. Attorney Jonathan Ophardt.
James Moorcroft Imprisoned for Stolen Truck/Tractor CaperRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that James Moorcroft, 50, of Brookfield, Vermont, was sentenced today in United States District Court in Burlington to six months of imprisonment following his guilty plea to charges that he possessed eight trucks and tractors which had crossed state lines after being stolen. U.S. District Judge William K. Sessions III ordered that Moorcroft serve three years of supervised release following completion of his prison term. As a condition of supervised release, the court required Moorcroft to serve an additional six months of home confinement when he gets out of jail. The court ordered Moorcroft to pay restitution of more than $122,000. Moorcroft was directed to surrender to the Bureau of Prisons on September 8 to begin serving his sentence.
On August 13, 2014, a federal grand jury in Rutland returned a seven count indictment accusing Moorcroft of possessing six trucks and two farm tractors which had been transported across state lines after being stolen. According to the indictment, between 2000 and 2012, Moorcroft orchestrated the thefts of eight trucks and tractors from locations in Vermont, New York, Massachusetts and Maine. Moorcroft then transported the stolen equipment to a farm he lives on in Brookfield, where he used the vehicles. Moorcroft stripped the vehicle identification numbers off the stolen equipment, affixed replacement VINs and registered the vehicles in Vermont. The pieces of equipment were worth about $193,000 when stolen.
In February 2014, police in Connecticut examined one of the stolen vehicles at the home of a relative of Moorcroft's and discovered that the public VIN did not match a confidential VIN hidden within the vehicle. At that point, authorities theorize, Moorcroft panicked and decided to dispose of the stolen equipment he had on his farm. In February and March 2014, authorities recovered all eight stolen trucks and tractors after they had been abandoned or moved to locations in Vermont, Connecticut, New York, Massachusetts and New Hampshire.
This case was investigated by the Vermont Department of Motor Vehicles.
Moorcroft is represented by Natasha Sen. The prosecutor is Assistant U.S. Attorney Gregory Waples.
St. Johnsbury Woman Sentenced for Social Security FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Bobbie Jo Austin, 35, of St. Johnsbury, Vermont, was sentenced on July 27, 2015, in United States District Court in Burlington, Vermont, to serve a two-year period of probation following her conviction on one count of converting Supplemental Security Income Benefits from the intended beneficiary, in violation of 42 U.S.C. § 1383a(a)(4). Judge William K. Sessions III also ordered Austin to pay $1,500 in restitution and a $100 special assessment.
According to court records and proceedings, in approximately 2008, BOBBIE JO AUSTIN applied to be the Representative Payee for Supplemental Security Income benefits for her child, who had been determined to be disabled. In agreeing to be the Representative Payee, BOBBIE JO AUSTIN agreed, among other things, to use the funds for the benefit of her minor child, and to notify the Social Security Administration (SSA) if her minor child stopped living with her. The benefit payments started in June 2009. In May 2010, BOBBIE JO AUSTIN declared under penalty of perjury when she completed a Representative Payee Report that her minor child lived with her and of the $9,052.00 she had received for the child's care and support, she spent $4,800.00 on the child and $4,252.00 on living expenses and bills related to the child. In April 2011, BOBBIE JO AUSTIN declared under penalty of perjury when she completed a Representative Payee Report that her minor child lived with her and of the $8,712.00 she had received for the child's care and support, she spent the entire amount on the child. BOBBIE JO AUSTIN did not notify the SSA that the minor child was removed from her custody by the Vermont Department of Children and Families on May 29, 2009, and was ultimately adopted by another family on March 9, 2011.
“Making false statements to Social Security to fraudulently misuse Supplemental Security Income—a government payment intended to assist those truly in need—is an intolerable offense,” said Scott Antolik, Special Agent-in-Charge, SSA Office of Inspector General, Boston Field Division. “We will continue to partner with the U.S. Attorney’s Office in Vermont to pursue all forms of fraud against Social Security and its beneficiaries, especially instances of representative payee fraud that affect our most vulnerable citizens.”
United States Attorney Eric S. Miller commended the efforts of the SSA Office of Inspector General, Boston Field Division, in the investigation and prosecution of Austin. The prosecution of Austin was handled by Assistant U.S. Attorney Barbara A. Masterson. Austin was represented by Assistant Federal Public Defender Elizabeth K. Quinn.
Patricia Merz and Christopher McGuigan Sentenced for Embezzling from Mother's Bennington EstateRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Patricia Merz, 58, of Niskayuna, New York, and her brother, Christopher McGuigan, 53, of Rutland, have been sentenced in United States District Court in Burlington following their convictions on federal fraud and conspiracy charges. Today, Chief U.S. District Judge Christina Reiss sentenced Merz to time served, to be followed by three years of supervised release. As a condition of supervised release, Merz must spend the next six months in home confinement. This past January, Judge Reiss sentenced McGuigan to time served, followed by three years of supervised release. The court ordered Merz to pay restitution totaling about $52,000 and McGuigan to pay about $40,000. .
In 2014, a federal grand jury in Rutland returned a superseding indictment charging the defendants with conspiracy, wire fraud, interstate transportation of stolen money and forgery. According to the indictment, the defendants' mother, Annelise McGuigan, died in Bennington in 2009. She left no will. In late 2009, the Bennington probate court appointed Merz and McGuigan as co-administrators of their mother's estate. As administrators, they had a legal duty to prepare an inventory of estate assets, pay the estate's debts and render an accounting to the court.
According to the indictment, Annelise McGuigan owned a house in Rupert at the time of her death. With the court's permission, Merz and McGuigan sold the house in 2010. The sale netted the estate about $180,000. Although Merz and McGuigan had received claims against the estate totaling more than $88,000 -- debts incurred for funeral expenses, property maintenance, credit card expenses and nursing home and medical care -- Merz and McGuigan never paid any of those obligations. Instead, they used virtually all of the estate funds to benefit themselves, spending the entire $180,000 within about one year. Merz withdrew about $50,000 from the estate account by forging McGuigan's signatures on numerous banking withdrawal slips.
In October 2014, following a three-day trial, a federal jury convicted Merz on all four counts. McGuigan, who cooperated with the investigation, pled guilty to conspiracy.
This case was investigated by the Federal Bureau of Investigation.
Merz is represented by Federal Public Defender Michael Desautels. McGuigan is represented by Robert Behrens. The prosecutors are Assistant U.S. Attorneys Gregory Waples and Nikolas Kerest.
Craig Smith Imprsioned for Illegal Firearms PossessionRead the Press Release
The United States Attorney for the District of Vermont announced that Craig Smith, 25, of Wells River, was sentenced today in United States District Court in Rutland to 18 months of imprisonment following his guilty plea to a charge that he unlawfully possessed a firearm as a convicted felon. U. S. District Judge Geoffrey Crawford also ordered that Smith serve a three-year term of supervised release upon completion of his prison term. Smith has been incarcerated since his arrest last December.
On December 11, 2014, a federal grand jury returned a two-count indictment charging Smith with being a felon-in-possession of a firearm and being a drug user in possession of a firearm. According to court records, on December 1, 2014, Smith sold a .22 caliber revolver for $150 to a confidential informant working with the Vermont State Police. Smith is prohibited from possessing any firearms because he was convicted in 2014 of accessory after the fact to assault and robbery. At the time of the gun sale, Smith was also a heroin addict. Smith pled guilty to the felon-in-possession charge in March.
Smith is represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor is Assistant U.S. Attorney Gregory Waples.
New Yorker Marcus Delille Pleads Not Guilty to Possessing Counterfeit Credit Cards and Driver's LicensesRead the Press Release
The United States Attorney for the District of Vermont announced that Marcus Delille, 26, of Brooklyn, New York, pleaded not guilty today in United States District Court in Burlington to possessing counterfeit credit cards and identification documents. U.S. Magistrate Judge John M. Conroy released Delille on conditions pending trial, which has not been scheduled.
On June 17, 2015, a federal grand jury in Rutland returned a two-count indictment charging Delille with fraudulently possessing 15 or more counterfeit access devices and unlawfully possessing five or more false identification documents. According to court records, Delille was stopped for speeding by a Vermont State trooper on April 23, 2015 just north of Brattleboro. During the course of the traffic stop, the trooper discovered that Delille had in the rental car he was driving and on his person about forty counterfeit credit cards that had not been issued to him, as well as counterfeit driver's licenses which appeared to have been issued by California, Texas, Pennsylvania and Illinois. Delille was originally charged in state court with identity theft but those charges were dismissed after the federal indictment was returned.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Delille 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.
Delille is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Vermont Man Sentenced to 87 Months for Failing to Register as Sex Offender and Violating Supervised Release ConditionsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Gregory Dean Gotchie, age 36, of Caledonia County, Vermont, was sentenced yesterday in U.S. District Court in Brattleboro to 87 months in jail, for failing to register as a sex offender, and for violating federal conditions of supervised release.
In 2011 Gotchie was sentenced by U.S. District Court Judge J. Garvan Murtha in Brattleboro for failing to register as a sex offender. The court imposed a sentence of 51 months in jail, with 10 years of supervised release, after finding that he sexually assaulted a woman while in non-registration status. Gotchie was required to register as a sex offender based upon his 2006 statutory rape conviction in the State of Maine.
After serving his 51 month sentence, in 2014 Gotchie absconded from supervised release and relocated to upstate New Hampshire. At sentencing yesterday in Brattleboro, Judge Murtha sentenced Gotchie to another 63 months in prison for the failure to register offense (aggravated based on the finding that he sexually assaulted a woman), along with a consecutive 24-month term for violating the 2011 supervised release conditions.
Gotchie has been in the custody of the U.S. Marshal’s service since his July, 2014, arrest in New Hampshire. The case was investigated by the U.S. Marshal’s Service and the New Hampshire State Police. Gotchie was represented by Federal Public Defender Micheal Desautels. The United States was represented by Assistant U.S. Attorney William Darrow.
NYPD Officer Andre Clarke Arrested for Conspiracy to Distribute Oxycodone in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Andre Clarke, age 36, of the Bronx, New York, was arrested today in Queens for conspiring to distribute Oxycodone in Vermont from 2011 through June 2014. Clarke, who has been employed as a New York City police officer since 2002, will have his initial appearance tomorrow in federal court in Brooklyn. At this hearing, he is expected to be given a date to report to Vermont federal court for arraignment. At the arraignment in Vermont, he will enter a plea to the charge. On July 7, 2015, a federal grand jury sitting in Burlington handed down a multi-count Indictment, which charges Clarke, Michael Foreste, and Dannis Hackney with the Vermont Oxycodone conspiracy. Foreste and Hackney are charged with additional drug trafficking and money laundering offenses.
According to prosecutors, Clarke, who lived in the Bronx and Long Island during the events in question, supplied oxycodone to Michael Foreste, of Valley Stream, New York. Foreste, in turn, supplied the pills to Dannis Hackney, of Burlington, Vermont, who sold them to Burlington area addicts. Foreste personally brought Hackney pills, and sometimes sent them via U.S. Mail. Clarke, Foreste, and Hackney transferred drug proceeds using various bank accounts. Foreste and Hackney are also each charged with two counts of money laundering based on this banking activity. Foreste and Hackney have been in custody since their arrests in June 2014 and are awaiting trial.
The Indictment charging Clarke with drug trafficking is an accusation only; he is presumed innocent unless and until proven guilty. If convicted on the oxycodone conspiracy charge, each defendant faces up to 20 years in prison. The money laundering counts carry also carry a maximum penalty of 20 years' imprisonment. The actual sentence, in the event of conviction, will be determined by the Court with reference to the advisory Federal Sentencing Guidelines and other statutory sentencing factors.
The investigation spanned more than a year and was a collaborative effort of Homeland Security Investigations; the Federal Bureau of Investigation; the Drug Enforcement Administration; and the New York City Police Internal Affairs Bureau.
Assistant United States Attorney Christina E. Nolan is handling the prosecution.
Canadian Corporation Pleads Guilty to Importation of Contaminated Cattle FeedRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Yves Bolduc, President of the Quebec cattle feed brokerage and manufacturing company, Meunerie Sawyerville, Inc., appeared today in United States District Court in Rutland to enter a plea of guilty on behalf of the Canadian corporation. The defendant corporation pled guilty to one felony count of making a false statement to Customs and Border Protection officials, and one felony count of fraudulently causing the cattle feed drug monensin to be introduced into interstate commerce at a level of concentration significantly higher than that allowed by the Food and Drug Administration.
According to court documents, on or about Sept. 12, 2012, Meunerie Sawyerville sent a driver into the United States with a truckload of cattle feed medicated with the regulated drug monensin at a concentration above that allowed by the FDA and 200% above the amount on the feed label. The feed was sampled at the border, and the driver was ordered to warehouse the feed pending further testing from the FDA. Contrary to orders from U.S. officials, Bolduc instructed the driver to deliver the feed to the Vermont farmer as planned, without informing the farmer that the feed had been sampled and ordered held by the FDA. The driver did deliver the medicated feed to the customer, and the Vermont cows consumed the contaminated feed.
Bolduc thereafter engineered a plan that a sham shipment of similar-looking cattle feed cross the border under false Customs documentation to be stored on an unrelated piece of land in Vermont until requested for redelivery by Customs and Border Protection. Upon Customs’ request, Bolduc ordered that the sham shipment be presented for redelivery, accompanied by the fictitious documentation, offering up the sham shipment feed to the U.S. government as the held tainted feed that was in fact already consumed by Vermont cows.
According to court documents, the parties have agreed that the appropriate sentence is a fine of $80,000, and a term of probation of one year. The actual sentence will be determined with reference to federal sentencing guidelines.
Meunerie Sawyerville is represented by Attorney Bud Allen. The prosecutor is Assistant U.S. Attorney Abigail Averbach.