District of Vermont
Press releases recorded for this federal judicial district.
New York Man Imprisoned 39 Months for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that today Charles Hercules, 23, of New York, was sentenced by Chief United States District Judge Christina Reiss to thirty-nine months imprisonment on his guilty plea to a charge of conspiracy to distribute 100 grams or more of heroin. Chief Judge Reiss also ordered that Hercules serve three years on supervised release after his incarceration ends.
According to court documents, Hercules, along with Joshua Rose, 21, and Devon Cruz, 29, both of New York, trafficked approximately one kilogram of heroin from New York to Rutland from early 2012 to February 2013. The three New York men sold the heroin in Rutland primarily through several heroin-addicted local residents, including Alan H. Willis, II, 42, of Tinmouth, and Evan Murphy, 23, of Rutland. During a joint investigation by the Vermont Drug Task Force (VDTF), the Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI), investigators used confidential informants to make controlled buys of the heroin from Willis and Murphy in the Rutland area.
On July 24, 2013, a grand jury returned an indictment charging Hercules, Rose, Cruz, Willis, Murphy, and Jean Marie Phillips, 47, of Rutland, with conspiracy to distribute 100 grams or more of heroin. All of the defendants have entered guilty pleas to the conspiracy charge, except Phillips, who pled guilty to aiding and abetting Rose=s possession with intent to distribute heroin. On April 28, 2014, Willis was sentenced to 37 months imprisonment. On May 9, 2014, Phillips was sentenced to 13 months imprisonment. On August 26, 2014, Murphy was sentenced to 60 months imprisonment. Rose and Cruz are scheduled for sentencing this fall.
United States Attorney Tristram J. Coffin commended the joint investigation by the VDTF, DEA and FBI, and thanked the Vermont Attorney General=s Office for its cooperation. Burlington attorney David Williams represented Hercules. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.
John Acosta-bermudez Imprisoned for Reentry After DeportationRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John Acosta-Bermudez, 52, a Colombian citizen who has landed immigrant status in Canada, was sentenced yesterday in United States District Court in Burlington to 13 months of imprisonment following his guilty plea to a charge that he reentered the United States after having been deported. Mr. Acosta-Bermudez has been detained without bail since his arrest last March.
According to court papers, immigration officials at the Route 5 Port-of-Entry in Derby Line observed a black vehicle enter the United States in mid-morning on March 29, 2014. The car did not stop at the Port for inspection, but instead headed south on Interstate 91. A Border Patrol agent followed and stopped the car on the highway. Acosta-Bermudez was driving and an undocumented alien was the passenger. Acosta-Bermudez has twice been deported from the United States following a New York robbery conviction and a federal passport fraud conviction. As a deportee, Acosta-Bermudez cannot return to the United States without the advance permission of the Attorney General.
Acosta-Bermudez is represented by Mark Kaplan. The prosecutor is Assistant U.S. Attorney Gregory Waples.
James Moorcroft Pleads Not Guilty in Stolen Truck/tractor CaperRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that James Moorcroft, 49, of Brookfield, Vermont, pleaded not guilty yesterday in United States District Court in Burlington to charges that he possessed a number of vehicles and tractors which had crossed state lines after being stolen. U.S. Magistrate Judge John M. Conroy released Moorcroft on conditions pending trial, which has not been scheduled.
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. The indictment charges that Moorcroft then transported the stolen equipment to a farm he lives on in Brookfield, where he used the vehicles. Moorcroft allegedly stripped the vehicle identification numbers off the stolen equipment, affixed replacement VINs and registered the vehicles in Vermont.
In February 2014, police in Connecticut examined one of the stolen vehicles at the home 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.
Rutland Man Imprisoned 5 Years for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that today Evan Murphy, 23, of Rutland, was sentenced by Chief United States District Judge Christina Reiss to five years imprisonment on his guilty plea to a charge of conspiracy to distribute 100 grams or more of heroin. Chief Judge Reiss also ordered that Murphy serve four years on supervised release after his incarceration ends.
According to court documents, from January to November 2012 Murphy trafficked between 400 and 700 grams of heroin in the Rutland area. In July 2012, Murphy began selling heroin supplied by Joshua Rose, 21, Devon Cruz, 29, and Charles Hercules, 23, all of New York. During August, September and October 2012, the Vermont Drug Task Force (VDTF) used a confidential informant to make three controlled buys of heroin from Murphy in Rutland. In November 2012, Murphy was incarcerated for an unrelated state offense, ending his heroin sales.
On July 24, 2013, based on a joint investigation by the VDTF, the Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI), the grand jury returned an indictment charging Murphy, Rose, Cruz, Hercules, Alan H. Willis, II, 42, of Tinmouth, and Jean Marie Phillips, 47, of Rutland, with conspiracy to distribute 100 grams or more of heroin. All of the defendants have entered guilty pleas to the conspiracy charge, except Phillips, who pled guilty to aiding and abetting Rose=s possession with intent to distribute heroin. On April 28, 2014, Willis was sentenced to 37 months imprisonment. On May 9, 2014, Phillips was sentenced to 13 months imprisonment. Rose, Cruz, and Hercules are scheduled for sentencing over the next two months.
United States Attorney Tristram J. Coffin commended the joint investigation by the VDTF, DEA and FBI, and thanked the Vermont Attorney General's Office for its cooperation. Burlington attorney Doug Kallen represented Murphy. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.
Rutland Man Agrees to Plead Guilty to Heroin ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Nicholas Louras, 28, of Rutland, Vermont, has been charged in federal court with conspiring to distribute heroin in Vermont from November 2013 to March 2014. Louras appeared today before Magistrate Judge John Conroy in United States District Court for his arraignment and was released on conditions, including that he participate in a drug rehabilitation program as directed by the Probation Office.
The parties also filed today a plea agreement in which Louras agreed to waive indictment and plead guilty to the felony drug conspiracy, which carries a maximum possible term of imprisonment of twenty years. Under the terms of the plea agreement the Court will decide his sentence after a presentence investigation. A change of plea hearing will likely be scheduled in the near future.
The United States is represented by Assistant U.S. Attorney Joseph Perella and the defendant is represented by Natasha Sen, Esq. This matter was investigated jointly by the Vermont State Police Drug Task Force, the FBI, the DEA, and the New York State Police.Woodstock, Vermont Business Zaya’s Jewelers Located at 12 Central Street Takes 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 Zaya’s Jewelers and the owners of 12 Central Street, Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). 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. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of 12 Central Street, Woodstock, Vermont.
An onsite survey of Zaya’s Jewelers performed by United States Department of Justice architects revealed ADA compliance issues related to the shop’s entrance and interior. Zaya’s Jewelers and the owners of 12 Central Street have remedied ADA compliance issues related to the shop’s entrance.
Zaya’s Jewelers and the owners of 12 Central Street recognized the obligation to address the issues identified in the onsite survey. The owner of Zaya’s Jewelers and the owners of 12 Central Street are to be commended for their cooperation with the Office of the United States Attorney for the District of Vermont.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, 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 and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.Jayne Concialdi Pleads Guilty to White River Junction EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jayne Concialdi, 51, a former resident of Quechee who now lives in Connecticut, pleaded guilty today in United States District Court in Burlington to a charge of wire fraud. U.S. District Judge William K. Sessions III released Concialdi on conditions pending sentencing, which is set for December 1.
On June 19, 2014, the United States filed a one-count information charging Concialdi with wire fraud. Today, Concialdi pled guilty to the information. According to the information, Concialdi was employed as an administrative assistant to the treasurer of New England Research, Inc., a company in White River which specializes in the measurement and interpretation of rock properties for the energy industry. Concialdi had bookkeeping responsibilities. Between 2011 and early 2014, Concialdi misappropriated about $125,000 from her employer, primarily by using company funds to pay her personal credit card obligations. The defendant also misused company credit cards to make purchases for her own benefit. NERI uncovered the embezzlement this past February.
Concialdi faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Hartford Police Department and the Federal Bureau of Investigation.
Concialdi is represented by Jordana Levine. The prosecutor is Assistant U.S. Attorney Gregory WaplesJamie Gene Thompson Imprisoned for Access Device FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jamie Gene Thompson, 47, a California native who most recently lived in Vermont, was sentenced on July 15, 2014 in United States District Court in Brattleboro to 30 months of imprisonment upon his guilty plea to a charge of access device fraud. U.S. District Judge J. Garvan Murtha also ordered that Thompson serve a three-year term of supervised release following completion of his prison sentence and pay restitution in the amount of $65,143.47. Thompson has been incarcerated since his arrest in California in March 2013.
On February 27, 2013, a federal grand jury in Rutland returned a one-count indictment charging Thompson with access device fraud. Thompson pled guilty to the charge last October. According to court records, in about 2010, Thompson became a live-in care provider for an elderly couple in Charlotte. Thompson's duties involved providing medical and physical assistance and transportation. He also handled some of the couple's finances. Between September and October 2012 Thompson defrauded the couple by using one of their credit cards to make about 80 unauthorized purchases of goods and services which totaled approximately $9,000. He also made about $46,000 in unauthorized withdrawals from an investment account the couple had at Wells Fargo. The Wells Fargo funds were used to pay down balances on personal credit cards which had been issued to Thompson.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.
Thompson is represented by Assistant Federal Public Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Michelle Rutledge Imprisoned Following Guilty Plea to Two Central Vermont EmbezzlementsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Michelle Rutledge, 47, of Berlin, was sentenced yesterday in United States District Court in Brattleboro to 24 months of imprisonment following her guilty plea to a charge of wire fraud. District Judge J. Garvan Murtha also ordered that Rutledge serve a three-year term of supervised release following completion of her prison sentence and pay restitution in the amount of $128,730.46. The court directed Rutledge to surrender to the Bureau of Prisons on August 19 to begin serving her sentence.
According to the information to which she pled guilty, for more than a dozen years Rutledge served as the office manager and bookkeeper for the Cold Hollow Cider Mill in Waterbury. For about three years, she also served as the treasurer for the Harwood Youth Hockey Association. Between June 2007 and June 2013, Rutledge embezzled not less than $75,000 from the cider mill by using company credit cards without authorization and causing electronic transfers of cider mill funds to pay personal bills and expenses. She also stole at least $53,000 from the Harwood Hockey Association by using credit cards without authorization and by paying personal bills with checks drawn against the Hockey Association checking account.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.
Rutledge is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.Woodstock, Vermont Business Woodstock Pharmacy Takes 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 the owners of Woodstock Pharmacy located at 19 Central Street, Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). 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. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of Woodstock Pharmacy.
An onsite survey of Woodstock Pharmacy performed by United States Department of Justice architects revealed ADA compliance issues related to the shop’s entrances and interior spaces. Woodstock Pharmacy will remedy ADA compliance issues related to the shop’s entrances and interior by October 1, 2014.
Woodstock Pharmacy’s owner recognized the obligation to address the issues identified in the onsite survey. Gary Smith, owner of Woodstock Pharmacy, is to be commended for his cooperation with the Office of the United States Attorney for the District of Vermont.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, 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 and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Akeem Bethea-harris of Philadelphia Sentenced to Five Years for Possession with Intent to Distribute Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on June 16, 2014, Akeem Bethea-Harris, 26, of Philadelphia, Pennsylvania, was sentenced to five years in federal prison after his guilty plea to a charge that he possessed crack cocaine with intent to distribute it. Chief United States District Judge Christina Reiss, sitting in Rutland, also ordered that Bethea-Harris serve four years of supervised release following his prison term.
According to court records, Bethea-Harris’s criminal history includes a felony for possession of a firearm without a license, three felony drug convictions, and several probation violations. On May 2, 2013, investigators with the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation observed Bethea-Harris get off a Greyhound bus at the Burlington International Airport. Bethea-Harris was wearing unusually heavy clothing for a very warm day. Agents encountered Bethea-Harris in Colchester as he got out of a taxicab. Agents subsequently recovered approximately 60 grams of crack cocaine secreted on Bethea-Harris’s person.
This case was investigated by the DEA and the FBI, with the assistance of the Burlington and Colchester Police Departments. This case was prosecuted by Assistant United States Attorney Kevin J. Doyle. Bethea-Harris is represented by Federal Defender Michael L. Desautels.
Jody Farnham Imprisoned for Embezzlement from UvmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jody Farnham, 55, of Burlington, was sentenced today in United States District Court in Rutland to 13 months of imprisonment following her guilty plea to a charge of federal program embezzlement. Chief Judge Christina Reiss ordered that Farnham serve a three-year term of supervised release upon completion of her prison term and pay restitution in the amount of $200,000. The court directed that Farnham report to the Bureau of Prisons on July 29 to begin serving her sentence.
According to the information to which Farnham pled guilty last January, Farnham had been employed for a number of years by the University of Vermont, College of Agriculture and Life Sciences. Farnham was an office support specialist for the Vermont Institute for Artisan Cheese, which provided educational, research and technical consulting services to artisan cheese makers. VIAC offered courses and workshops in cheesemaking and enrollees paid tuition to UVM to attend the programs. According to the information, Farnham began embezzling money from UVM in about 2006 and, before the thefts were discovered in late 2012, she stole not less than $200,000. Farnham embezzled much of the money by altering checks given to her by VIAC enrollees. She changed the checks, which were made out to VIAC, to make her a co-payee. She then deposited the forged checks into her personal bank account. Farnham also stole some cash tuition payments, and misused UVM credit cards to make personal purchases. During the time period of the embezzlement, UVM received substantial amounts of federal funding.
This case was investigated by the University of Vermont Police Department and the Federal Bureau of Investigation.
Farnham is represented by Robert Hemley. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Rutland Man Sentenced to Five Years Imprisonment for Federal Conviction for Heroin and Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court, sentenced Ernest Murray, 51, of Rutland to five years imprisonment for conspiring to distribute heroin and crack cocaine in the Rutland area. In addition, Judge Reiss sentenced Murray to four years supervised release, to be served after he completed his five-year jail sentence. She also recommended to the Bureau of Prisons that Murray participate in the 500-hour substance abuse program for federal inmates.
Murray was charged with conspiring to distribute heroin and cocaine base in the Rutland area in 2012-13. The offense involved over 100 grams of heroin and over 28 grams of crack cocaine, either of which qualify for a five-year mandatory minimum jail sentence if proven by the Government. Murray pled guilty to this quantity level and was thus sentenced to the five year mandatory minimum. According to court records, Murray was initially charged in State court but continued to distribute drugs after he was released on state bail in July 2013. According to court records Murray used the knick name, “Rah.”Judge Reiss stated that the adverse impact of heroin in Rutland and other Vermont communities is a “tragedy” and Murray’s sentence sends a message to the community that drug distribution “will not be tolerated.” The Government stated in its sentencing memorandum that: “Heroin is wreaking havoc in Rutland and many other Vermont communities” and “a strong message from the Court needs to be continually sent to narcotic dealers that spreading their poison in the community will result in a lengthy jail sentence.” Murray acknowledged that he was getting too old to spend time in jail and stated that he was “tired of getting in trouble,” that he was “sick of being in jail,” and that he wanted to get his “life straightened out.”
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by David Williams, Esq. This case was jointly investigated by the Vermont Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation.Diane Schmaler Pleads Guilty to Dorset Field Club EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Diane Schmaler, 61, of Cossayuna, NY, pleaded guilty on May 15, 2014, in United States District Court in Burlington to a charge of interstate transportation of stolen money. U.S. Magistrate Judge John M. Conroy released Schmaler on conditions pending sentencing, which is set for September 2.
According to the charging information and other court records, Schmaler had been employed for many years by the Dorset Field Club of Dorset, VT as a bookkeeper and manager of finance and administration. Schmaler paid the club's bills, handled payroll and maintained the general ledger.
Beginning no later than 2007 and continuing until June 2013, Schmaler embezzled tens of thousands of dollars from the club. She did this primarily by issuing checks to herself without authorization. She also inflated payroll checks which the club issued to her. Schmaler attempted to conceal the embezzlement by falsifying entries in the club's general ledger. Schmaler quit her employment with the club in September 2013. At that time, an audit of the club's books was about to start. The audit uncovered the embezzlement.
The exact amount of the loss is still being determined. Schmaler has already repaid $60,000 to the club.
Schmaler faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Federal Bureau of Investigation.
Schmaler is represented by Robert O'Neill. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Brooklyn Man, Known as “thuggin,” Sentenced to 58 Months in Jail for Conspiring to Distribute Heroin and Cocaine BaseRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont stated that Andrew Hollins, 27, of Brooklyn, New York, was sentenced on May 19, 2014 by United States District Court Judge J. Garvan Murtha to 58 months in jail for conspiring to distribute cocaine base (crack cocaine) and heroin in Burlington, Vermont. Hollins was also sentenced to a 3-year period of supervised release after he is released from prison.
According to Court records, Hollins was arrested on June 10, 2013 at the Quality Inn at 84 South Park Drive in Colchester, Vermont after law enforcement entered Room 135 pursuant to a state court search warrant. While the officers were trying to open the hotel room door, Hollins, known on the street as “Thuggin” was trying to hold the door closed so that his associate could flush money and drugs down the toilet. His attempt to hold the door closed was unsuccessful and officers pulled $8,000 in cash, 31.8 grams of heroin and 54.3 grams of crack cocaine from the toilet.
Hollins was indicted by a federal grand jury on June 20, 2013. He was ordered to be detained in jail pending trial. On January 27, 2014, Hollins pled guilty to conspiring to distribute cocaine base and heroin. He has been detained in prison since his arrest.
This case was investigated by the Burlington Police Department. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Hollins was represented by Steven Barth of the Office of the Federal Public Defender.
Brattleboro Man Sentenced for Possessionof Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Ralph Schnyer, 46, of 213 Birge Street, Brattleboro, Vermont was sentenced on May 19, 2014 by U.S. District Court Judge William K. Sessions III, to 12 months and one day in prison for possession of child pornography. Schnyer was also sentenced to five years of supervised release after the completion of his prison term.
According to Court records, on August 13, 2013, Ralph Schnyer was in possession of thousands of images and videos containing child pornography. He was apprehended when Special Agents with Homeland Security Investigations (“HSI”) learned that someone at the Birge Street residence was distributing child pornography using Ares, a type of file-sharing software. Pursuant to a federal search warrant, law enforcement searched the residence at 213 Birge Street on August 13, 2013 and discovered child pornography on Ralph Schnyer’s computer.
Schnyer was arrested on August 13, 2013. On August 14, 2013, he appeared before United States Magistrate Judge John M. Conroy who released Schnyer pending trial. He was indicted by a federal grand jury on August 29, 2013 for possession of child pornography. Schnyer pled guilty to that offense on January 21, 2014 and was released pending sentencing.
This case was investigated by the Department of Homeland Security Investigations. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. Schnyer was represented by Attorney Thomas Sherrer.
Rutland Man Sentenced to 46 Months in Federal Prison for Firearms OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont, stated that on May 19, 2014, Thomas J. Rougier, Jr., 23, of Rutland, Vermont, was sentenced to 46 months in prison for possessing stolen firearms. United States District Judge J. Garvan Murtha, sitting in Brattleboro, Vermont also ordered Rougier to serve two years of supervised release following his prison sentence.
According to court records, in September of 2013, Rougier stole approximately seven handguns from a residence in Weybridge, Vermont. Shortly thereafter, Rougier traded a number of the stolen handguns to drug dealers in the Rutland area for heroin and cocaine. Law enforcement was able to recover three of the stolen handguns.
Rougier was arrested on September 6, 2013 and a federal grand jury in the District of Vermont returned an indictment against him on September 19, 2013. Rougier pled guilty to possessing stolen firearms on January 27, 2014. He has been in custody since his arrest.
The statutory maximum for Rougier’s offense is ten years in prison. Pursuant to the advisory U.S. Sentencing Guidelines, Rougier faced between 57 and 71 months in prison. Because of the gravity of Rougier’s offense and his significant criminal record, which includes multiple instances of violent or threatening conduct, the United States asked Judge Murtha to impose a term of 70 months. In sentencing Rougier to a term of imprisonment 11 months below the low end of the Guidelines range, Judge Murtha noted, among other factors, Rougier’s difficult childhood.
United States Attorney Tristram J. Coffin commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Rutland City Police Department, and the Vermont State Police for their hard work and coordinated efforts on this investigation. The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr.
Rougier is represented by Assistant Federal Public Defender Steven Barth.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.New York Man Sentenced to 15 Months Imprisonment for Purchasing Atv in Enosburg with Counterfeit MoneyRead the Press Release
The Office of the United States Attorney for the District of Vermont that Judge William K. Sessions III, in Burlington, Vermont, today sentenced Francis Hamblin, 31, of, Fort Ann, New York to fifteen months in prison and two years of supervised release. Hamblin previously plead guilty to possessing counterfeit currency.
According to court records, on October 19, 2013, Hamblin, in response to an advertisement on Craig’s List, purchased a Yamaha ATV vehicle from a man in Enosburg with $3,500 in counterfeit U.S. currency. The seller of the ATV later became suspicious of the currency and contacted the Franklin County Sheriff’s Office who confirmed the currency was counterfeit. Investigation by the Franklin County Sheriff’s Office led to Hamblin’s arrest. Hamblin also purchased two other ATVs with counterfeit currency, one in Albany, Vermont and the other in Plattsburgh, New York. Two of the three ATVs were recovered and returned to the original owners. The third was not and Hamblin was ordered to pay $2,080 to the seller in Plattsburgh, New York. Court records show that Hamblin also passed a $20 counterfeit bill at Burger King in South Burlington, Vermont.
This case was investigated jointly by the United States Secret Service and the Franklin County Sheriff’s Office. The United States is represented by Assistant U.S. Attorney Joseph Perella. The defendant is represented by David McColgin, Esq. of the Federal Public Defender’s Office in Burlington.Woodstock, Vermont Restaurant the Prince and the Pauper Takes 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 the owners of The Prince and the Pauper restaurant and the building in which it is located at 24 Elm Street Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). 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. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of The Prince and the Pauper.
An onsite survey of The Prince and the Pauper performed by United States Department of Justice architects revealed ADA compliance issues related to the restaurant’s entrance, route from the entrance to the bar and dining areas, the bar and dining areas, and the toilet rooms. The Prince and the Pauper will remedy the agreed upon ADA compliance issues by May 31, 2014.
The Prince and the Pauper’s owners and the owner of the building in which the restaurant is located recognized their obligation to address the issues identified in the onsite survey. Vincent Talento, Christopher Balcer, and Don Bourdon are to be commended for their cooperation with the Office of the United States Attorney.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, 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 and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Eric Pack of Burlington Sentenced to 60 Months for Distribution of Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Eric Pack, 54, of Burlington, Vermont was sentenced on May 13, 2014 for distribution of crack cocaine. Judge J. Garvan Murtha, sitting in Brattleboro, sentenced Pack to 60 months in prison, to be followed by three years of supervised release.
According to court records, the Burlington Police Department conducted controlled purchases of crack cocaine from Pack in February and March 2013. At the time Pack was selling crack cocaine, he was on probation with the State of Vermont for possession of stolen property. Pack was arrested in June 2013 and plead guilty on January 23, 2014 to a two-count information charging him with distribution of crack cocaine.
This matter was investigated by the Burlington Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Border Patrol, with the assistance of the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorney Kevin J. Doyle. Pack is represented by Elizabeth D. Mann, Esq.
Brattleboro Man Sentenced to Jail for 5 Years for Possession of Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that David Schnyer, 77, of 213 Birge Street, Brattleboro, Vermont was sentenced today by U.S. District Court Judge William K. Sessions III, to 60 months in prison for possession of child pornography. Schnyer was also sentenced to five years of supervised release after the completion of his prison term.
According to Court records, on August 13, 2013, David Schnyer was in possession of over 41,000 images and videos containing child pornography. He was apprehended when Special Agents with Homeland Security Investigations (“HSI”) learned that that someone at the Birge Street residence was distributing child pornography using Ares, a type of file-sharing software. Pursuant to a federal search warrant, law enforcement searched the residence at 213 Birge Street on August 13, 2013 and discovered child pornography on David Schnyer’s computer.
Schnyer was arrested on August 13, 2013 and, on August 14, 2013, he appeared before United States Magistrate Judge John M. Conroy who released Schnyer pending trial. He was indicted by a federal grand jury on August 29, 2013 for possession of child pornography. Schnyer pled guilty to that offense on February 5, 2014 and was released pending sentencing.
This case was investigated by the Department of Homeland Security Investigations. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Schnyer was represented by Steven Barth of the Office of the Federal Public Defender.
Philadelphia Man Sentenced to 38 Months in Federal Prison for Gun and Drug Crimes in BarreRead the Press Release
The Office of the United States Attorney for the District of Vermont, stated that on May 2, 2014, Gregory Johnson, 30, of Philadelphia, Pennsylvania, was sentenced to 38 months in prison for his participation in cocaine base distribution and the possession of firearm. Chief United States District Judge Christina Reiss, sitting in Burlington, also ordered Johnson to serve a term of three years of supervised release following his prison sentence.
According to court records, in late 2010 and early 2011, Johnson and his Barre associates, including Terry Bahner, Bahner’s wife, Bethany Pastuszak, and Bahner’s stepfather, Lestly Westcott, trafficked cocaine base from Philadelphia to Barre, Vermont where they resold it to local customers. Johnson admitted to possessing a handgun during the conspiracy.
A federal grand jury in the District of Vermont returned an indictment against Johnson on September 6, 2012. Johnson was arrested in Philadelphia on December 19, 2012 on an unrelated outstanding warrant from Pennsylvania. Once his Pennsylvania case was resolved, Johnson was transferred to the District of Vermont and appeared for arraignment in federal court in Burlington on August 7, 2013. On January 13, 2014, Johnson pled guilty to conspiring to distribute cocaine base.Pursuant to the advisory U.S. Sentencing Guidelines, Johnson faced between 46 and 57 months in prison. In determining the appropriate sentence, Judge Reiss considered, among other factors, the gravity of Johnson’s conduct and its negative impact on the community. Judge Reiss also considered Johnson’s lack of a significant criminal record.
Johnson is the sixth defendant to be sentenced in a series of related Barre cases. On January 5, 2012, Judge Reiss sentenced Bethany Pastuszak to four months of imprisonment and four months of home confinement, followed by a one-year term of supervised release, for making a false statement in connection with her purchase of a handgun.
On July 25, 2012, Judge Reiss sentenced James Beatrice, of Barre, to 33 months in federal prison, followed by a three-year term of supervised release, for illegally possessing a firearm as a convicted felon.
On August 8, 2012, Judge Reiss sentenced Ronald Newton, from Philadelphia, to 160 months in federal prison for his role in a cocaine distribution conspiracy and his possession of a handgun in furtherance of that conspiracy. Newton was also ordered to serve 10 years of supervised release following his prison term.
On September 19, 2012, Judge Reiss sentenced Lestly Westcott to serve 30 months in federal prison, followed by a three-year term of supervised release, for possessing a firearm as a convicted felon and distributing controlled substances.
On October 22, 2012, Judge Reiss sentenced Terry Bahner to serve 85 months in prison, followed by a three-year term of supervised release, for conspiring to distribute cocaine and illegally transferring a firearm.
United States Attorney Tristram J. Coffin commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Barre City Police Department, the Montpelier Police Department, the Vermont State Police, the U.S. Marshals, and the U.S. Border Patrol for their hard work and coordinated efforts on this investigation. The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr.
Johnson is represented by Assistant Federal Public Defender Steven Barth. Newton is represented by Natasha Sen. Bahner is represented by Elizabeth Mann. Westcott is represented by Karen Shingler and Pastuszak is represented by Robert Sussman. James Beatrice is represented by David Williams.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.Keith Miller of Lyndonville, Vermont Sentenced to 21 Months for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Keith Miller, 44, of Lyndonville, Vermont was sentenced on May 5, 2014 for possession of child pornography. Judge William K. Sessions III sentenced Miller to 21 months in prison, to be followed by five years of supervised release. Miller’s supervised release conditions will include special sex offender conditions, including a requirement that he register as a sex offender upon his release from prison. Judge Sessions ordered Miller to surrender to serve his sentence on June 10, 2014.
According to court documents, as part of an on-line investigation into users’ acquisition of child pornography by computer, federal agents determined that a computer at Miller’s residence had downloaded child pornography. Agents executed a federal search warrant at Miller’s residence on February 19, 2013. Miller admitted that he had used his computer to download child pornography. Subsequent forensic analysis of the computers seized from Miller determined that Miller had downloaded a substantial number of images of child pornography.
This matter was investigated by Homeland Security Investigations and the Vermont State Police, with the assistance of the Lyndonville Police Department. The case was prosecuted by Assistant U.S. Attorney Kevin J. Doyle. Miller is represented by David L. McColgin of the Federal Defender’s Office.
St. Albans Man Sentenced for Selling Heroin and Oxycodone PillsRead the Press Release
Tristram J. Coffin, the United States Attorney for the District of Vermont, stated that Kermit
Flanders,44, of St. Albans, Vermont, was sentenced on May 5, 2014 by U.S. District Court Judge William K. Sessions, III, to 12 months plus 1 day in prison for conspiring to distribute heroin and oxycodone. The Court also sentenced Flanders to 3 years of supervised release after the completion of his prison term.According to Court records, during December of 2013 through February of 2014, Flanders sold both heroin and oxycodone 30 mg. pills to an individual cooperating with the police on 5 separate occasions. The sales of controlled substances by Flanders all occurred in St. Albans.
Flanders was indicted by a federal grand jury on September 12, 2013. He was arrested on September 17, 2013 and appeared that day in federal court. He pled guilty on February 24, 2014 and has been detained in prison since his arrest.
This case was investigated by the Vermont State Northwest Drug Task Force. The U.S. Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant U.S. Attorney, Nancy J. Creswell. Flanders was represented by Richard C. Bothfeld, Bothfeld and Volk, P.C.
John Quinn Imprisoned for Internet Sales of Tools Stolen from Ge AviationRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John Quinn, 55, of Rutland, was sentenced today in United States District Court in Burlington to five months of imprisonment following his guilty plea to a charge of mail fraud. U.S. District Judge William K. Sessions III also ordered Quinn to serve two years of supervised release. As a condition of supervised release, the court directed that Quinn serve an additional 5-month period of home confinement upon his release from prison. The court ordered Quinn to pay $200,000 in restitution and perform 100 hours of community service. The court permitted Quinn to report to the Bureau of Prisons on June 10 to begin serving his sentence. Immediately after sentencing, Quinn paid $108,000 into the court registry toward his restitution obligation.
According to the information to which he pled guilty, Quinn had been employed for a number of years as a subcontractor for GE Aviation in Rutland. The GE facility manufactures components for jet engines on military and commercial aircraft. Quinn served as an account manager and was involved in the ordering, stocking and delivering of tools and other materials. According to the information, Quinn began stealing tools from GE Aviation's inventory no later than 2009 and resold the stolen tools over the Internet. Most of the stolen hardware consisted of high-speed carbide drill bits. Purchasers paid for the stolen tools by depositing funds into Quinn's personal PayPal account. According to PayPal records, between 2009 and July 2013, Quinn realized more than $108,000 from sales of carbide drill bits. The cost to GE of the stolen tools was at least $200,000.
GE Aviation came to suspect that Quinn might be stealing company property last spring and conducted a sting operation where security personnel made three undercover purchases from Quinn. Quinn typically used the U.S. mails to send the stolen tools to the purchasers.
This case was investigated by the Rutland office of the Federal Bureau of Investigation.
Quinn is represented by Barry Griffith. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Florida Fraudster Gets Five YearsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Craig Lee Workman, age 42, a Florida man, was sentenced to five years in federal prison today by the Honorable J. Garvan Murtha in U.S. District Court in Brattleboro, Vermont.
Workman pleaded guilty to a fraudulent tax refund scheme that he operated in Florida and Vermont during 2010-12. Having obtained identification information for over 120 persons, Workman filed fraudulent income tax returns in their names, claiming nearly a million dollars in tax refunds. On each of the returns, he listed bank routing and account numbers for bank accounts that he controlled in Florida and Vermont, and requested direct deposit of the claimed refunds. The IRS intercepted the bulk of the fake filings, but 23 got through, resulting in over $179,000 being deposited by the U.S. Treasury into Workman’s bank accounts.
Workman has a lengthy criminal history going back 20 years, mostly in Florida. Judge Murtha rejected his pleas for leniency today at his sentencing hearing in Brattleboro, and imposed a sentence of five years, to be followed by a supervised release term of three years. Judge Murtha also ordered Workman to repay the money after his release.
Workman has been in the custody of the U.S. Marshals Service since his arrest in Florida in May, 2013. The case was investigated by the Internal Revenue Service’s Criminal Investigation Division. Workman was represented by Federal Public Defender David McColgin. The United States was represented by Assistant U.S. Attorney William Darrow.
Tinmouth Man Imprisoned 37 Months for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that yesterday Alan H. Willis, II, of Tinmouth, was sentenced by Chief United States District Judge Christina Reiss to 37 months imprisonment on his guilty plea to a charge of conspiracy to distribute 100 grams or more of heroin. Chief Judge Reiss also ordered that Willis serve two years on supervised release after his incarceration ends. Willis has been detained since his arraignment.
According to court documents, Willis trafficked between 700 and 1000 grams of heroin in the Rutland area from summer 2012 to February 2013. In late January 2013, the Vermont Drug Task Force (VDTF) used a confidential informant to make two controlled purchases of heroin from Willis, the first at his home and the second in the parking lot of Rutland's Diamond Run Mall. On February 4, 2013, the VDTF and several other agencies executed a search warrant at Willis's residence, seizing 1500 bags of heroin and $4800 in cash.
Originally charged in Rutland Superior Court by the Vermont Attorney General=s Office, Willis was first indicted by a federal grand jury on April 24, 2013, leading to dismissal of the state charges. On July 24, 2013, based on a joint investigation by the VDTF, the Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI), the grand jury returned a superseding indictment expanding the temporal scope of the conspiracy and charging Joshua Rose, 21, Devon Cruz, 29, Charles Hercules, 23, all of New York, Evan Murphy, 23, and Jean Marie Phillips, 47, both of Rutland, along with Willis, as conspirators. On January 24, 2014, Phillips entered a guilty plea to a charge of aiding and abetting Rose's possession with intent to distribute heroin. She is scheduled for sentencing on May 9, 2014. Today, Murphy entered a guilty plea to the conspiracy charge in the superseding indictment. Murphy is scheduled for sentencing on August 26, 2014. Rose, Cruz, and Hercules are awaiting trial.
United States Attorney Coffin commended the joint investigation by the VDTF, DEA and FBI, and thanked the Vermont Attorney General's Office for its cooperation. Rutland attorney Elizabeth Mann represented Willis. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.
Springfield Man Sentenced for Child Exploitation OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Daniel Gay, 42, of Burlington, Vermont, was sentenced on April 28, 2014, in United States District Court in Burlington, Vermont, to serve eighteen (18) months imprisonment following his guilty plea to one count of possession of child pornography. United States District Judge William K. Sessions III also ordered the defendant to serve a five-year term of supervised release and to pay a $100 special assessment.
According to court records, law enforcement was conducting undercover operations on a file-sharing network, and discovered a computer later identified as belonging to Gay was offering to share image files depicting child pornography. Law enforcement seized Gay’s computer and other digital media pursuant to a search warrant on June 28, 2013, and discovered thousands of images and videos depicting child pornography.
United States Attorney Coffin commended the work of the Vermont Attorney General’s Office and the Vermont Internet Crimes Against Children Task Force. Gay was represented by Steven L. Barth of the Federal Public Defender’s Office. The case was prosecuted by Assistant United States Attorney Barbara A. Masterson.
United States Attorney Coffin 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 and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Holyoke, Massachusetts Woman Indicted for Heroin TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury has returned a two-count Indictment charging Seanna Krasin, 22, of Holyoke, Massachusetts, with two counts of heroin distribution. On April 25, 2014, United States Magistrate Judge John M. Conroy entered pleas of not guilty on Krasin's behalf at an arraignment. Krasin is released on conditions previously imposed by Judge Conroy.
According to court documents, the Vermont Drug Task Force (VDTF) used a confidential informant to make controlled purchases of heroin from Krasin in Springfield. Krasin sold the informant 250 bags of heroin on April 7, 2014 and 800 bags of heroin on April 10, 2014. Evidence acquired during the investigation revealed that Krasin sold between 6000 and 8000 bags of heroin to two Vermont customers between November 2013 and her arrest on April 10.
United States Attorney Tristram J. Coffin emphasized that the charges are merely accusations and that defendant is presumed innocent unless and until proven guilty. If convicted, defendant faces a maximum possible term of imprisonment of twenty years, however any actual sentence in the event of conviction will be determined pursuant to the advisory federal sentencing guidelines and the federal statutory sentencing factors.
United States Attorney Coffin commended the investigation by the VDTF and stated, "This office will continue to work with federal, state and local law enforcement agencies to investigate and prosecute those who feed and profit from the opiate addiction of Vermonters." The Office of the Federal Defender represents Krasin. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.
Two Arrested in Richford on Gun and Drug ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that two men were arrested on Tuesday on gun and drug charges. Larry Garrow, 26, of Richford, Vermont, was arrested and charged with stealing firearms from a federally licensed firearms dealer in Hardwick, Vermont. Albert Torres-Morales, 29, of Richford, was arrested and charged with distribution of cocaine on January 2, 2014, and possessing with the intent to distribute heroin on April 22, 2014. Garrow and Morales appeared in federal court on April 23, 2014, for initial appearances. Both men were ordered temporarily detained pending detention hearings on April 25, 2014. If convicted, Garrow faces a maximum possible penalty of ten years in prison. Morales faces a possible penalty of 20 years in prison.
According to court documents, on or about April 19, 2014, the Rite Way Sports Shop in Hardwick, Vermont was burglarized and 32 firearms were stolen. Larry Garrow, assisted by a female, broke into the Rite Way and stole the firearms. Information later revealed that Garrow kept some of those guns and gave the remaining guns to a person known as "Junior" in exchange for money and drugs. Junior has been identified as Albert Torres-Morales. Law enforcement arrested Garrow on April 22, 2014 based on a tip and other information provided to the police. Morales was arrested on that same date for drug charges stemming from an ongoing drug investigation.
On April 23, 2014, one of Garrow's family members turned in eleven of the stolen guns to the police. The remaining guns have not been located and law enforcement is seeking any information relating to the location of these stolen firearms. If you have any information about these crimes, please call your local police department or the Crimestoppers Tip Line at 864-6666 or Toll Free at 1-800-427-8477.
The U.S. Attorney emphasized that the charges against Garrow and Morales are only accusations and that the defendants are presumed innocent until and unless proven guilty.This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, the Hardwick Police Department, the FBI, and the U.S. Border Patrol.
Assistant U.S. Attorneys Kevin Doyle and Wendy L. Fuller are handling the prosecution of these cases. Garrow is represented by Jordana M. Levine, Esq. Morales is represented by Federal Public Defender Michael Desautels, Esq.Brian Wyer Pleads Not Guilty to Identity TheftRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Brian Wyer, 39, a native of Ohio, pleaded not guilty today in United States District Court in Burlington to charges of identity theft. U.S. Magistrate Judge John M. Conroy ordered that Wyer be detained pending trial, which has not been scheduled.
Court records show that on June 26, 2013, a federal grand jury in Rutland returned a two-count indictment charging Wyer with identity theft. According to the indictment, in June 2012, Wyer came to Vermont and fraudulently obtained two non-driver's identification cards in the names of real persons who actually lived in Ohio and Kansas. Wyer allegedly then went to Massachusetts, opened bank accounts in the names of the individuals whose identities he had assumed, and defrauded a bank there of about $75,000. Since last summer, the United States Marshal's Service had been actively hunting for Wyer throughout the United States. Marshals eventually captured Wyer in Chicago last month.
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, Wyer faces up to 15 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Vermont Department of Motor Vehicles.
Wyer is represented by Paul Volk. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Derby Credit Union Manager Sentenced Three Years for FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Debra Kinney, 59, of Derby Vermont was sentenced to three years imprisonment yesterday, followed by five years of supervised release. Kinney also was required to pay full restitution, and a forfeiture judgment of $250,000 was entered against her.
Debra Kinney was the manager of the Border Lodge Credit Union in Derby, Vermont. In November 2012, the Federal Bureau of Investigation, along with state and federal bank regulators, searched the credit union and seized the documents and operations of the financial institution based on evidence of widespread fraud and misappropriation of accountholders’ funds. After an ensuing investigation, the manager of the credit union, Kinney, was indicted for misappropriation of credit union funds. Federal credit union regulators permanently shut down and liquidated the assets of the credit union.
Debra Kinney pled guilty to the federal fraud charges in January, 2014. At the sentencing hearing yesterday before Judge William K. Sessions III in Burlington and in court papers, the United States asserted that Kinney had defrauded Border Lodge Credit Union accountholders of over $633,000. Kinney’s acts of embezzlement occurred over a period of years. According to court papers, Kinney would frequently write checks to herself or for her benefit or for that of family members drawn from credit union accountholders without authorization. A subsequent financial investigation determined she removed hundreds of thousands of dollars from multiple accountholders. All told, the investigation revealed improprieties with 33 different accounts.
All of the losses of individual accountholders were insured by the National Credit Union Administration which insures credit union accounts up to $250,000. As part of the liquidation of the credit union, the National Credit Union Administration paid accountholders for losses they suffered. To date, Kinney has not paid any restitution.The case was investigated by the Federal Bureau of Investigation with significant assistance from the National Credit Union Administration and the Vermont Department of Financial Regulation.
Williston Man Pays $100,000 to Settle Spa Forfeiture ClaimRead the Press Release
The Office of the United States Attorney for the District of Vermont announces that it has reached a settlement in the civil forfeiture matter involving the previous home of the Harmony Spa at 5649 Williston Road, in Williston, Vermont. In a complaint filed on June 28, 2013, the United States alleged that the Williston property owned by Thomas Booska, age 68, of Burlington, Vermont, was forfeitable to the government because it was used to house individuals who were induced or encouraged to come to Vermont from out of state for purposes of engaging in prostitution or other commercial sex acts. While admitting that he is the owner of the Williston property and that Harmony Spa had been located at the Williston property, Booska generally denied the allegations of the complaint.
The complaint alleged that in May 2011, Booska was advised by law enforcement that it had received reports of commercial sex acts taking place at the Harmony Spa located at the Williston property. At that time, Booska was further advised that if such activity continued, the property would be subject to forfeiture by the United States Attorney’s Office. The complaint further alleged that despite this warning, in the Fall of 2012 and thereafter, Booska was providing housing and transportation to Asian females, who he knew had traveled from out of state to Vermont with the intent of engaging in sexual acts for pay as part of their services at Harmony Spa. According to information filed with the complaint, several sources of information reported that they had been offered sexual services at the Harmony Spa, including a service referred to as a “happy ending.” The complaint alleged that the property was subject to forfeiture because its use in facilitating the activities of the Harmony Spa was a violation of the Mann Act, which governs crimes related to travel in interstate commerce for the purpose of prostitution or other commercial sex activity.The forfeiture action was initially stayed by the parties pending the outcome of a related criminal case against Booska in Vermont Superior Court. On April 9, 2014, the Honorable William K. Sessions III, United States District Judge, lifted the stay and approved a settlement agreement between Booska and the United States. Pursuant to the terms of the settlement agreement, Booska agreed to forfeit to the United States $100,000 in place of the Williston property no later than ninety days from the entry of the Court’s Order. Failure to pay within that time frame will result in forfeiture of the Williston property to the government. The settlement agreement also contemplates the sale of the property to individuals who have previously run a hair and nail salon in Colchester, Vermont.
The United States was represented in this matter by Assistant United States Attorney Heather E. Ross. Thomas Booska was represented by Kurt Hughes, Esq. of the Burlington law firm Murdoch, Hughes, and Twarog. The matter was investigated by the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations, and the Williston Police Department.Deborah Williamson Pleads Not Guilty to Embezzling from Grocery EmployerRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Deborah Williamson, 36, a former resident of Wheelock who now lives in Florida, pleaded not guilty yesterday in United States District Court in Burlington to a charge that she embezzled about $70,000 from her ex-employer. U.S. Magistrate Judge John M. Conroy released Williamson on conditions pending trial, which has not been scheduled.
On March 20, 2014, a federal grand jury in Burlington returned a one-count indictment accusing Williamson of mail fraud. According to the indictment, Williamson was employed as the manager of White Market, a grocery store in Lyndonville. Her duties included regularly cashing checks drawn against the company's local bank account to obtain one dollar bills and coins for the cashier's cash registers. The indictment alleges that between 2010 and 2012, Williamson stole nearly $70,000 in cash from the store's safe. She allegedly tried to cover up these thefts by not recording, or underreporting, the amount of cash and coins received from the bank in the store's computerized accounting system.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until she is proven guilty.
If convicted, Williamson 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 Lyndonville Police Department and the Federal Bureau of Investigation.
Williamson is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.Burlington Man Sentenced for Child Exploitation OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Kevin Gallagher, 32, of Burlington, Vermont, was sentenced on April 7, 2014, in United States District Court in Burlington, Vermont, to serve six months imprisonment following his guilty plea to one count of possession of child pornography. United States District Judge William K. Sessions III also ordered the defendant to serve six months of home incarceration as part of a five-year term of supervised release, and to pay a $100 special assessment.
According to court records, law enforcement was conducting undercover operations on a file-sharing network, and discovered a computer later identified as belonging to Gallagher was offering to share image files depicting child pornography. Law enforcement seized Gallagher’s computer pursuant to a search warrant on February 1, 2013, and discovered nearly 400 images and videos depicting child pornography on it.
United States Attorney Coffin commended the work of the Vermont Attorney General’s Office, the Vermont Internet Crimes Against Children Task Force, and Homeland Security Investigations, Department of Homeland Security. Gallagher was represented by John Pacht of Hoff Curtis. The case was prosecuted by Assistant United States Attorney Barbara A. Masterson.
United States Attorney Coffin 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 and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Colchester Man, Derek Thomas, Sentenced to Fifteen Years in Prison for Producing Child Pornography Using A Real Vermont ChildRead the Press Release
Tristram J. Coffin, the United States Attorney for the District of Vermont, stated that Derek Thomas, 46, of 77 Granite Creek Road, Colchester, Vermont, was sentenced on March 31, 2014 by Chief U.S. District Court Judge Christina Reiss to 15 years in prison for producing child pornography with a real Vermont child. The Court also sentenced Thomas to 8 years of supervised release after he completes his prison term.
According to Court records, in December of 2011, a South Burlington Police Department (“SBPD”) detective assigned to the Vermont Internet Crimes Against Children Task Force (“ICAC”) discovered that an individual using Internet Protocol (“IP”) address 71.192.148.4 was offering to share child pornography on the Internet using peer-to-peer file sharing software. After the location of the IP address was traced to 77 Granite Creek Road in Colchester, Vermont, Special Agents from Homeland Security Investigations (“HSI”) obtained a search warrant for that residence. During the search, two computer forensic examiners assigned to the search team conducted an on-site forensic preview of Derek Thomas’s laptop computer and, on that device, located hundreds of images and videos of child pornography. Thomas was arrested that day, March 2, 2012.
Subsequently, a forensic examiner with the Vermont ICAC discovered thousands of images and videos of child pornography on Thomas’s iPod, iPhone, laptop computer and computer hard drive. The forensic examination of these devices also revealed that Thomas, posing as a teenage boy, had coerced a twelve-year old victim to take sexually explicit videos using a cell phone and to send them to Thomas. Thomas offered the victim gifts in exchange for the videos. He also threatened the victim when the victim failed to comply. The forensic examination of these devices also revealed that Thomas had placed a hidden video camera in the victim’s bathroom. Unwittingly, he videoed himself while he was setting up the camera. The video was located on Thomas’s computer where it had been downloaded by Thomas.
As mentioned above, Thomas was arrested on March 2, 2012. A federal grand jury initially indicted Thomas on March 8, 2013 for possession of child pornography. After the ICAC forensic examiner confirmed that Thomas was producing child pornography, a federal grand jury handed down a superseding indictment on October 25, 2012 which charged two counts of production of child pornography and one count of possessing child pornography. Thomas pled guilty to producing child pornography on December 16, 2013. He has been detained in jail throughout all phases of this prosecution.
Bruce Foucart, Special Agent In Charge of HSI Boston, states, “Sadly, no community is immune to this scourge. HSI remains dedicated to being a leader in the pursuit of these criminals wherever they reside. We will continue to work with our federal, state, and local law enforcement partners, such as the Vermont ICAC, in order to maximize our collective efforts, and to target these individuals.”This case was ably investigated by the SBPD, the Vermont ICAC, and HSI. The United States Attorney, Tristram J. Coffin, commends those agencies for their work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. Thomas was represented by Attorney Elizabeth Mann.
Windsor, Vermont Man Sentenced to 20 Months in Prison for Possession of Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Gerard Mascola, 26, of Windsor, Vermont, was sentenced on April 1, 2014, by Chief U.S. District Court Judge Christina Reiss, to 20 months in prison for possession of child pornography. He was also sentenced to serve 5 years of supervised release at the conclusion of his prison term.
According to Court records, Mascola was detected sharing child pornography over the Internet by special agents from the Office of Homeland Security Investigations (“HSI”). HSI special agents were able to identify and locate Mascola using his internet protocol address.
Mascola was indicted by a federal grand jury on July 18, 2013. On December 16, 2013, Mascola pled guilty to possession of child pornography. He was released on his own recognizance pending his sentencing.
This case was investigated by Homeland Security Investigations. The United States Attorney, Tristram J. Coffin, commends that agency for its work. He was prosecuted by Assistant U. S. Attorney, Nancy J. Creswell. Mascola was represented by Douglas G. Kallen of Bergeron, Paradis & Fitzpatrick, LLP.Former Vermont Woman, Now Living in the Bronx, Sentenced to 35 Months in Jail for Distributing HeroinRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Chelle Soutiere, 38, was sentenced on April 3, 2014 by Chief U.S. District Court Judge Christina Reiss, to 35 months in prison for conspiring to distribute heroin in Vermont. Additionally, Soutiere was sentenced to three years of supervised release to be served at the conclusion of her prison term.
According to Courts records, Soutiere traveled from the Bronx on the MegaBus to the Burlington, Vermont area to sell heroin, oxycodone pills, and suboxone tablets. Between September of 2012 and March of 2013, she traveled to Vermont carrying controlled substances on a number of occasions. She sold controlled substances in Franklin and Chittenden counties, including St. Albans and Burlington, Vermont. This is her second federal drug conviction in Vermont.
Soutiere was arrested by the Southern Vermont Drug Task Force on March 28, 2013. On June 6, 2013, a federal grand jury charged her with conspiracy to distribute heroin as well as other charges. On December 19, 2013, Soutiere pled guilty to Count 1 of the federal Indictment, conspiracy to distribute heroin. She has been detained in prison or, alternatively, been in drug treatment since her arrest.
This case was investigated by the Northwest Drug Task Force. The United States Attorney, Tristram J. Coffin, commends that task force for its work. The case was prosecuted by Assistant U. S. Attorney, Nancy J. Creswell. Soutiere was represented by the Vermont Federal Public Defender, Michael Desautels.
John Acosta-bermudez Charged with Reentry After DeportationRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John Acosta-Bermudez, a Columbian citizen who has landed immigrant status in Canada, appeared today in United States District Court in Burlington on a charge that he reentered the United States after having been deported. U.S. Magistrate Judge John M. Conroy ordered that the defendant be detained pending his next hearing.
According to the criminal complaint, immigration officials at the Route 5 Port-of-Entry in Derby Line observed a black vehicle enter the United States in mid-morning on March 29, 2014. The car did not stop at the Port for inspection, but instead headed south on Interstate 91. A Border Patrol agent followed and stopped the car on the highway. Acosta-Bermudez was driving and an undocumented alien was the passenger. Acosta-Bermudez has twice been deported from the United States following a New York robbery conviction and a federal passport fraud conviction. As a deportee, Acosta-Bermudez cannot return to the United States without the advance permission of the Attorney General.
The United States Attorney emphasizes that the charge against Acosta-Bermudez is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, the defendant 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.
Acosta-Bermudez is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Jeremy Smith Pleads Not Guilty to Failing to Register as Sex OffenderRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jeremy Smith, 36, who until recently had lived in Troy, New York, pleaded not guilty today in United States District Court in Burlington to a charge that travelled in interstate commerce without updating his registration under the Sex Offender Registration and Notification Act. U.S. Magistrate Judge John M. Conroy ordered that Smith be detained pending trial, which has not been scheduled.
On February 12, 2014, a federal grand jury in Rutland returned an indictment charging Smith with violating the federal Sex Offender Registration and Notification Act. Smith was arrested by U.S. Marshals in South Carolina on February 21 and has been in custody since then. According to the indictment and court records, Smith was convicted in Bennington, Vermont in 1999 of sexual assault on a minor. That conviction requires him to register as a sex offender with officials of any state where he resides or to which he moves. In early 2011, after being released from prison in Vermont, Smith moved to New York. However, he did not register as a sex offender with New York officials. Under federal law, when a sex offender moves from one state to another, he has three days to update his registration.
The United States Attorney emphasizes that the charge against Smith is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Smith 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 U.S. Marshals Service.
Smith is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Brooklyn Man Sentenced to 59 Months in Prison for Conspiring to Distribute Crack Cocaine and Heroin in Rutland, VermontRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Eshone Williams, 33, of Brooklyn, New York, was sentenced yesterday by Chief U.S. District Court Judge Christina Reiss, to 59 months in prison for conspiring to distribute crack cocaine and heroin in February and March of 2013 in Rutland, Vermont. The Court also sentenced Williams to three years of supervised release after he completes his prison term.
According to Court records, in February of 2013, the Vermont State Police learned that several males were selling crack cocaine in Rutland from an apartment on Park Street. After a confidential informant purchased drugs from a person living in the apartment, law enforcement obtained a state court search warrant. During the search, Eshone Williams fled from the apartment on foot but was apprehended. When Williams was searched, law enforcement found 15 grams of crack cocaine, 62 bags of heroin, and $5,670 in his pants pockets. Back at the apartment, investigators located 300 bags of heroin and approximately 75 grams of crack cocaine in a coat belonging to Williams. A total of $13,676 in U.S. currency was seized from Williams’ person and from the apartment.
Williams was arrested on March 1, 2013 by Vermont State Police for state prosecution. Due to the serious nature of the offence, however, his case was later adopted by the Office of the United States Attorney, Tristram J. Coffin. On July 17, 2013, a federal grand jury indicted Williams for federal drug crimes. Williams pled guilty on December 9, 2013 to conspiracy to distribute cocaine base (crack cocaine) and heroin between approximately February, 2013 and March 1, 2013. Williams has been detained in prison since his arrest.
This case was investigated by the Vermont State Police. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Williams was represented by David McColgin, Assistant Federal Public Defender.Pamela Smith Pleads Guilty to Woodstock Inn EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Pamela Smith, 57, of Barnard, pleaded guilty on March 12, 2014, in United States District Court in Burlington to a charge of wire fraud. U.S. District Judge William K. Sessions III released Smith on conditions pending sentencing, which has been set for July 8 in Brattleboro.
On February 18, 2014, the United States Attorney filed a one-count information charging Smith with wire fraud. According to the information, between approximately 2007 and early 2013, Smith was employed by the Shire Riverview Motel in Woodstock, Vermont. Smith worked part-time as a clerk and also performed bookkeeping services for the inn. Beginning no later than 2009 and continuing until early 2013, Smith embezzled approximately $200,000 from Shire Riverview. She did this by writing unauthorized checks to herself from the inn's checking account, then depositing the checks into her personal bank account; by stealing cash payments made by motel guests; and by using Shire Riverview funds to pay her personal expenses, including credit card, gasoline, fuel oil and telephone and Internet service bills. According to the information, Smith used about $40,000 in stolen funds to pay for improvements to a house in Barnard.
As part of her plea, Smith agreed to forfeit to the United States about $40,000 in improvements to the Barnard house, and to pay a forfeiture money judgment in the full amount of the loss.
Smith faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Woodstock Police Department and the Federal Bureau of Investigation.
Smith is represented by George Ostler. The prosecutor is Assistant U.S. Attorney Gregory Waples.Philadelphia Man Sentenced to Jail for Conspiring to Distribute Heroin in Burlington, VermontRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Aaron Gray, 21, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge William K. Sessions III to one year and one day in prison for conspiring to distribute heroin in Burlington, Vermont.
According to court records, Gray began to sell heroin in Burlington during the fall of 2012 and continued until he was arrested in early January, 2013 by the Burlington Police Department. Gray obtained his heroin from a source in Philadelphia and he utilized a courier to transport the drugs to Vermont. The courier traveled to Vermont either by Amtrak or on the MegaBus.
Gray was indicted by a federal grand jury on March 21, 2013 and appeared for an arraignment in federal court on May 28, 2013. He pled guilty on October 23, 2013 to a one count Indictment charging him with conspiracy to distribute heroin.
This case was investigated by the Burlington Police Department. The United States Attorney, Tristram J. Coffin, commends the Burlington Police Department for its work. The case was prosecuted by Assistant U.S. Attorney Nancy J. Creswell. Gray was represented by the Federal Public Defender, Michael Desautels.
Swanton Man Pleads Guilty to Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Timothy Keevan, 49, of Swanton, Vermont, pleaded guilty on February 14, 2014, before Chief Judge Christina Reiss in the United States District Court in Burlington, Vermont, to one count of accessing images of child pornography with the intent to view them, in violation of 18 U.S.C. § 2252(a)(4)(B). After accepting Keevan’s guilty plea, Judge Reiss granted the government’s motion and ordered him remanded pending sentencing, which is presently scheduled for June 4, 2014.
According to court records and proceedings, Keevan, an operations support technician with U.S. Citizen and Immigration Service who works in the shipping and receiving warehouse in St. Albans, Vermont, used a work-issued computer to access websites that displayed images of child pornography. Keevan’s activities were discovered because his computer, like all government issued computers, was continually monitored for non-work related or other inappropriate activity. The computer was confiscated and the images of child pornography were discovered on it.
Keevan faces a statutory maximum term of imprisonment of ten (10) years imprisonment, a mandatory minimum term of five (5) years, and up to a lifetime term, of supervised release, and a fine of up to $250,000. Keevan will be required to pay a special assessment of $100. The actual sentence will be determined by the court with reference to the advisory federal sentencing guidelines.
United States Attorney Coffin commended the efforts of the Department of Homeland Security Office of Inspector General, under the direction of Special Agent in Charge Gregory K. Null for the Northeast Region, the Vermont State Police, the United States Secret Service, and the Office of Immigration and Customs Enforcement, in the prosecution of Keevan.
The prosecution of Keevan is being handled by Assistant U.S. Attorney Barbara A. Masterson. Keevan is represented by Federal Defender Michael L. Desautels.
U.S. Attorney Coffin 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.
Massachusetts Man Sentenced for Child Exploitation OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Michael Dupont, 37, of Westfield, Massachusetts, was sentenced on February 24, 2014, in United States District Court in Burlington, Vermont, to serve 36-months imprisonment following his guilty plea to one count of possession of child pornography. United States District Judge William K. Sessions III also ordered the defendant to serve a five-year term of supervised release and to pay a $100 special assessment.
According to court records and proceedings, Dupont used the Internet to access chat rooms where he would meet whom he believed to be teenage girls. Dupont and the girls would communicate in the chat rooms and by private messaging. The chats became sexual in nature and involved the girls sending to Dupont naked pictures of themselves. Images of one girl were found on Dupont’s computer.
United States Attorney Coffin commended the work of the Homeland Security Investigations, Department of Homeland Security, and the Vermont Internet Crimes Against Children Task Force. Mr. Dupont was represented by Assistant Federal Defender Steven L. Barth. The case was prosecuted by Assistant United States Attorney Barbara A. Masterson.
United States Attorney Coffin 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 and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Randy Rivera Sentenced to 12 Years Imprisonment for Conspiracy to Distribute Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Randy Ray Rivera, 35, of Springfield, Massachusetts was sentenced to 144 months in prison, having pled guilty to the charge of conspiracy to distribute 280 grams or more of cocaine base. United States District Judge William K. Sessions III, sitting in Burlington, also sentenced Rivera to 5 years of supervised release.
Court records show that Rivera, who goes by the alias "Melvin,: sold large quantities of crack cocaine to Vermonters from about late 2009 through his arrest in early 2013. Rivera sold the crack in Springfield to three different individuals from the Burlington area, who then transported it to Vermont and redistributed it here to dozens of customers. Rivera=s drug runners made regular trips to Springfield to purchase crack, sometimes picking up narcotics from him multiple times per week. The amounts they transported ranged from about 3-25 ounces per trip. Law enforcement arrested Rivera in Springfield on January 4, 2013, on his way to sell 20 ounces of crack cocaine for $22,500 to a customer who had begun working as a confidential informant. Court records also show that Rivera carried a loaded semiautomatic handgun during the conspiracy period. Rivera came to sentencing with a series of prior narcotics trafficking convictions from Massachusetts, as well a prior felony firearms offense.
For his crime, Rivera faced a maximum penalty of life in prison. In sentencing Rivera, Judge Sessions noted the seriousness of the of the offense and the large quantities of crack cocaine it involved.
The investigation was a collaborative effort of the Vermont State Police, the Drug Enforcement Administration in Vermont and Massachusetts, and the Bureau of Alcohol, Tobacco, and Firearms.
Assistant United States Attorney Christina Nolan prosecuted the case. Rivera is represented by Steve Barth of the Federal Public Defender=s Office in Burlington.
Barre Man Indicted for Convenience Store RobberyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Lee Jay Manning, 28, of Barre, Vermont, was charged in a three-count indictment with robbing a Cumberland Farms convenience store in Barre on February 12, 2014, in violation of 18 U.S.C. § 1951, possessing a firearm in furtherance of that robbery, in violation of 18 U.S.C. § 924(c), and possessing that firearm as a convicted felon, in violation of 18 U.S.C. § 922(g).
According to court records, Manning robbed the Cumberland Farms convenience store in Barre on the evening of February 12, 2014 with a semi-automatic handgun. He was apprehended by law enforcement, in possession of the handgun, shortly after the robbery. In 2004, Manning was convicted in Vermont of burglary, which is a felony offense. Federal law prohibits convicted felons from possessing firearms.
Following his arrest on February 12, 2014, Manning appeared in federal court on February 13, 2014 to answer to a preliminary complaint. Magistrate Judge John M. Conroy ordered Manning detained at that time. The federal grand jury returned the three-count indictment on February 20, 2014. The court has yet to schedule Manning’s arraignment.
If convicted of the robbery charge, Manning faces a statutory maximum term of imprisonment of 20 years. A conviction for possession of a firearm as a convicted felon carries a statutory maximum of 10 years in prison. If convicted of carrying the firearm in furtherance of the robbery, Manning faces a maximum of life imprisonment and mandatory minimum term of five years in prison. Federal law requires that Manning serve such a sentence consecutively to any other sentence he receives.
The actual sentence in the event of conviction would be determined by the court with reference to the advisory federal sentencing guidelines. United States Attorney Tristram J. Coffin stated that the indictment is an accusation only and that Manning is presumed to be innocent unless and until proven guilty.
United States Attorney Coffin commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Barre City Police Department, the Barre Town Police Department, the Berlin Police Department, and the Vermont State Police for their investigation into this matter.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Manning is represented by the Federal Public Defender’s Office.
Support Program Available for the Families of Those Who Have Died Due to Opiate OverdosesRead the Press Release
The Office of the United States Attorney for the District of Vermont announces an innovative, free, statewide support program for the families of those who have died due to opiate overdoses.
This innovative, free, statewide support program will consist of three components: a three-hour educational presentation that focuses on the complicated and prolonged grief experienced by families impacted by these sudden, unexpected deaths; individual family follow-up for those participating families who would like additional support; and the development of an informal, statewide support network among these families.
U.S. Attorney Tris Coffin described the motivation behind this initiative. “We have had way too many families suffer the death of loved ones from drug overdoses. The pain from this is something they experience every day. I hope this group provides some small measure of help to grieving survivors and creates a network of mutual support for those who have suffered these devastating losses.”
This free service is available to any family member who is interested in participating in this specialized program.
For information or to refer families, please contact Aimee Stearns at the U.S. Attorney’s Office at [email protected] or at (802) 651-8261.
Former President of Bennington School Sentenced to 18 Months in Federal Prison for Tax and Health Care Fraud ConvictionsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on February 5, 2014, Matthew Merritt, Jr., 82, of West Stockbridge, Massachusetts was sentenced to 18 months in federal prison after his guilty plea to charges that he engaged in a scheme to defraud a health care program and commit tax fraud. United States District Judge William K. Sessions III, sitting in Burlington, also ordered that Merritt, Jr. serve one year of supervised release following his prison term.
Merritt, Jr. is the founder and former President of Bennington School, Inc. (BSI). According to court records, the Office of the United States Attorney for the District of Vermont and the Office of the Vermont Attorney General previously entered into a global resolution of criminal and civil investigative matters concerning alleged tax and health care fraud by former officers of Bennington School, Inc. (BSI). Pursuant to that resolution agreement, Merritt, Jr., along with his son, Defendant Matthew Merritt III, BSI’s Plant Manager, and his son-in-law, Defendant Ray Crowley, who served as CFO of BSI, plead guilty to one charge each of federal tax fraud, which is a felony. In addition, Matthew Merritt, Jr., pled guilty to a federal felony charge of engaging in a scheme to defraud a health care program. To resolve potential civil health care fraud liability, the three Merritt family members have paid a total of $3,000,000.00 to the United States and the State of Vermont. Defendant Jeff LaBonte, the Executive Director of BSI also pled guilty to a federal tax fraud charge and paid $1,300,000.00 to resolve his potential civil health care fraud liability. Of the total $4.3M recovery, the State of Vermont has received $2,113,708.00 and the United States has received $2,186,292.00.
Until 2013, BSI, a for-profit, closely-held corporation, operated a residential program in Bennington, Vermont that offered therapeutic and educational services for socially and emotionally challenged boys and girls. Over the course of the last two decades, the State of Vermont placed many students at BSI, and was responsible for their tuition and other expenses. The funding for these placements came from the Vermont Medicaid program (approximately 60% federal funding and 40% state funding) and from several Vermont state agencies, including the Department of Education, the Department of Mental Health, and the Department of Children and Families. This funding was based on a per diem rate for each student, determined on an annual basis by the Division of Rate Setting (DRS), within the Vermont Agency of Human Services. The annual rate set by DRS was determined upon a review of BSI’s application materials, including various accounting reports and budgets. In particular, the formula for the rate calculated by DRS for Medicaid and Education payments to BSI was based upon the school’s reported allowable expenses. The higher the allowed expenses, the higher the per diem rate for each student.
BSI President, Matthew Merritt, Jr. and Executive Director Jeff LaBonte, with the assistance of CFO Ray Crowley and Plant Manager Matthew Merritt III, implemented a system of compensating certain employees of BSI by providing personal benefits, such as cars, gasoline, oil for personal residences, payments of personal expenses on credit card accounts, salaries for family members who did not work at BSI, and reimbursements for various personal expenses. These forms of compensation were never reported on the individual’s tax returns. In addition, these unallowable expenses were embedded in the books and records of BSI, which were used to create the reports, budgets and other financial documents that BSI presented to DRS as accurate and allowable for rate setting.
The Government=s investigation arose in 2011 following a request by BSI for a rate change due to reduced enrollment. In processing that request, DRS auditors took a close look at some of the financial information submitted and determined an audit should be performed. The audit, completed in 2012, resulted in a recalculation of the rate BSI received during the years 2003-2012. DRS calculated the total amount of overpayment by the State during those years to be over $3.6 Million. Under the False Claims Act, 31 U.S.C. § 3729, and potential state law remedies, should the Government prevail at a trial, the defendants would be liable for treble damages as well as mandatory penalties up to $11,000 per claim. The defendants dispute DRS’s calculation, and the parties have settled to avoid further investigation and litigation.
For his federal health care fraud conviction, Matthew Merritt, Jr. faced a maximum term of imprisonment of ten years under 18 U.S.C. § 1347. For his federal tax fraud conviction, he faced a maximum prison term of three years under 26 U.S.C. § 7206. Pursuant to a written plea agreement, the parties agreed that Matthew Merritt Jr.’s total term of imprisonment should not exceed 24 months. At sentencing, Merritt, Jr. asked that Judge Sessions impose no prison sentence, while the United States argued that Merritt, Jr. should serve the full 24 months in prison. In determining the 18-month sentence, Judge Sessions noted, among other factors, the gravity of Merritt, Jr.’s crimes, the fact that he engaged in the fraudulent conduct over the course of many years, and the harm Merritt, Jr.’s crimes cause the community.
For their federal tax fraud convictions, Matthew Merritt III and Raymond Crowley each faced a maximum prison term of three years under 26 U.S.C. § 7206. Pursuant to a written plea agreement, the parties agreed that Matthew Merritt III and Raymond Crowley’s prison terms should not exceed 18 months. In a sentencing hearing held on December 23, 2013, Judge Sessions sentenced Crowley to one year of probation, which includes six months of home confinement, and 200 hours of community service.
The same day, Judge Sessions sentenced Merritt III to one year of probation, which includes six months of home confinement and 200 hours of community service. Judge Sessions also ordered Merritt III to pay an additional $30,000 fine.
For his federal tax fraud conviction, Jeffrey Labonte faced a maximum prison term of three years under 26 U.S.C. § 7206. Pursuant to a written plea agreement, the government agreed to make the nature and extent of Jeffrey Labonte’s cooperation known to the federal court and, as a result of his cooperation, request that the court sentence Jeffrey Labonte to a term of imprisonment below that recommended by the advisory sentencing guidelines. In a November 18, 2013 sentencing hearing, Judge Sessions sentenced Labonte to a one-year term of probation, which includes four months of home confinement and 100 hours of community service. Judge Sessions also ordered Labonte to pay an additional $30,000 fine.
The school continues to operate as a fully-licensed residential treatment program. However, as of January 1, 2013, management and ownership of the programs at Bennington School were transferred to Vermont Permanency Initiative Inc., which is part of the Becket Family of Services. Matthew Merritt, Jr., has resigned as President and Trustee of BSI, and Jeff LaBonte, Matthew Merritt III and Raymond Crowley have left the school’s employ.This matter was investigated by the United States Attorney=s Office, the Medicaid Fraud and Abuse Unit of the Vermont Attorney General’s Office, the Internal Revenue Service, the Federal Bureau of Investigation, and the Office of Inspector General, U.S. Department of Health and Human Services. United States Attorney Coffin commends the investigative agencies for their hard work on this criminal and civil investigation.
On the criminal matters, the United States is represented by First Assistant U.S. Attorney Paul Van de Graaf and Assistant United States Attorney Timothy C. Doherty, Jr. The civil investigation was handled by Civil Chief, Carol L. Shea and Assistant United States Attorney, Nikolas Kerest. The State of Vermont was represented by Assistant Attorney General Edward Baker.
Matthew Merritt, Jr. is represented by David V. Kirby of O’Connor and Kirby in Burlington, Vermont. Jeffrey LaBonte is represented by John Pucci of Buckley Richardson in Springfield, Massachusetts. Matthew Merritt III is represented by Richard Berne in Portland, Maine. Raymond Crowley is represented by Maryanne E. Kampmann of Stetler, Allen & Kampmann in Burlington, Vermont.
Award Winning Documentary on Heroin Abuse Available for Free DownloadRead the Press Release
The United States Attorney’s Office for the District of Vermont announced today that the award-winning documentary, “The Opiate Effect”, has been made available for viewing and free download. This powerful film features the story of Will Gates, a University of Vermont student who tragically overdosed on heroin and the impact that experience has had on his family. It also seeks to educate young people and their parents about the dangers of opiate prescription drug and heroin use by drawing on the experiences of Will’s father, Skip Gates, and a number of heroin addicts in recovery. The film is aimed at preventing people from getting involved with opiate drugs and is geared especially toward high school and college age students and their parents.
The film was produced by the U.S. Attorney’s Office for the District of Vermont. It was filmed and directed by Derek Hallquist of Green River Pictures and has won several awards including two Telly awards. It was nominated for a New England Emmy.
The video is available for viewing or download at the following link:
https://vimeo.com/41741770