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Thursday 19 December 2019
Cash Rewards for Tips Leading to the Arrest of Six Most Wanted FugitivesRead the Press Release
MACON, Ga. – Authorities in Middle Georgia are actively searching for six Most Wanted fugitives, individuals named as the most dangerous wanted persons by Macon Regional Crimestoppers during the 2019 calendar year, announced Charles “Charlie” E. Peeler, the U.S. Attorney for the Middle District of Georgia. In February, the U.S. Attorney’s Office made a public commitment with Macon Regional Crimestoppers to release a quarterly list throughout 2019 of the Most Wanted violent offenders. Macon Regional Crimestoppers, a community-run organization dedicated to increasing the safety of citizens, has provided rewards up to $1,000 for tips leading to the arrest of the Most Wanted fugitives. To date, 39 of 45 fugitives have been arrested. Law enforcement is searching for six remaining wanted persons. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. They are:
- Larry M. Bryant, 25, Bibb County, wanted for criminal street gang participation, probation violation;
- Abel Salas De’Leon, 32, Baldwin County, wanted for child molestation and aggravated child molestation;
- Tia Hill, 34, Houston County, wanted for aggravated assault against a peace officer;
- Diego A. Martinez, 41, Bibb County, wanted for child molestation;
- Martin Martinez, 43, Houston County, wanted for aggravated assault with a deadly weapon and cruelty to children;
- Moses A. Rodriquez, 34, Houston County, wanted for aggravated assault and battery.
“The success of Macon Regional Crimestoppers’ Most Wanted effort demonstrates that law enforcement and law abiding citizens in Middle Georgia are teaming up to make our communities safer,” said U.S. Attorney Charlie Peeler. “39 Most Wanted violent offenders have been successfully apprehended in 2019, with only six fugitives still on the run. With the public’s help, authorities will capture them. I want to thank Crimestoppers, our law enforcement partners and the public for their commitment to our collective mission to curb violence, and permanently change our communities for the better.”
“Coming off 43 homicides in Macon-Bibb in 2018, our law enforcement community knew we had to develop an even stronger partnership in 2019 to reduce violence. We established the Top 15 Most Wanted to identify and capture the most violent offenders, and the results have been hugely successful. We will continue this partnership in 2020, and continue to work side-by-side with law enforcement to track down the most violent offenders and develop ways to decrease violent crime in the Macon region,” said Warren Selby, Jr., Chairman of Macon Regional Crimestoppers.
The six remaining Most Wanted defendants are charged with some of the most violent crimes, including child molestation, gang activity and aggravated assault. The defendants are wanted in counties associated with Macon Regional Crimestoppers. For a complete list, and more information about Crimestoppers, visit www.crimestop.us. Macon Regional Crimestoppers is a local non-profit serving Bibb, Baldwin, Houston, Jones, Twiggs, Crawford, Monroe, and Peach counties. The organization partners with law enforcement agencies and community groups to provide anonymous rewards for tips that lead to criminal arrests. Citizens can safely and anonymously report tips at 1-877-68CRIME.
The U.S. Attorney’s Office partnership with Macon Regional Crimestoppers is a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
- Larry M. Bryant, 25, Bibb County, wanted for criminal street gang participation, probation violation;
Carroll County Man Facing Federal Indictment for Allegedly Overcharging the U.S. Postal Service Under His Company’s Contract to Perform Maintenance and Repair Services at Postal Service FacilitiesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Joseph Liberto, age 45, of New Windsor, Maryland, on federal wire fraud and conspiracy charges in connection with his company’s contract to perform repairs at U.S. Postal Service (USPS) facilities. The indictment was returned on December 18, 2019.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General.
According to the 31-count indictment, between 2014 and 2018, Joseph Liberto, President of Sierra Construction LLC, in Frederick, Maryland, contracted with EMCOR-CSC to provide repair services to USPS facilities. EMCOR acted as the clearing house responsible for receiving service calls for needed maintenance and repair work on its customers’ facilities, including the USPS, and assigning such work to service providers, such as Liberto and Sierra. The indictment alleges that Liberto engaged in a scheme to defraud EMCOR and the USPS by fraudulently concealing Sierra’s use of subcontractors to carry out maintenance work it was assigned to perform, making false statements, and providing false documents to EMCOR, in order to overcharge the USPS. The indictment alleges that Sierra obtained approximately $2 million through these fraudulent overbillings.
If convicted, Liberto faces a maximum sentence of 20 years in federal prison for the conspiracy, and for each of the 30 counts of wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An initial appearance in U.S. District Court in Baltimore has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the Contract Fraud Investigation Division of the U.S. Postal Service Office of Inspector General for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
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CEO of Corporation Based in Shasta County Indicted for Retirement Fund Embezzlement and False StatementsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Maurice “Buddy” Shoe, 57, formerly of Palo Cedro, charging him with embezzlement from his employees’ retirement funds and false statements regarding those retirement funds, U.S. Attorney McGregor W. Scott announced.
According to court documents, Shoe was the founder and CEO of Joined Inc., a corporation formerly based in Shasta County that provided student recruiting and retention services to Christian colleges and universities throughout the United States. The company provided a 401(k) retirement benefit plan for its employees. From February through November 2015, Shoe embezzled approximately $122,832 from the employee retirement benefit fund, protected under the Employee Retirement Income Security Act of 1974 (ERISA), by withholding funds from employees’ paychecks for 401(k) contributions, but failing to forward those contributions to the 401(k) plan. Shoe also made false statements on a form required under ERISA as to whether there had been a failure to forward participant contributions during the 2015 plan year.
This case is the product of an investigation by the U.S. Department of Labor – Employee Benefits Security Administration, San Francisco Regional Office. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
If convicted, Shoe faces a maximum statutory penalty of five years in prison and a $250,000 fine as to each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
C.E.O. and Founder of Cash Flow Partners Charged with Multimillion-Dollar Bank Fraud and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was charged today for a multi-million dollar bank fraud and securities fraud scheme operated through his company, Cash Flow Partners LLC (Cash Flow), U.S. Attorney Craig Carpenito announced.
Edward Espinal, 44, of Wayne, New Jersey, was charged by complaint with one count of conspiracy to commit bank fraud and one count of securities fraud. He is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
The Bank Fraud Conspiracy
Espinal was the founder and chief executive officer (CEO) of Cash Flow, and controlled the company’s operations. From March 2016 through December 2019, Espinal led and directed a bank fraud conspiracy designed to obtain millions of dollars in loans from banks on the basis of false representations. To attract customers, Cash Flow released internet advertisements and held seminars offering to assist customers with low-paying salaries in obtaining loans. These advertisements included promotional videos featuring Espinal and a former telenovela actor. Customers contacted Cash Flow and were routed to the company’s sales department.
Employees in the sales department then encouraged customers to sign up for various loan programs that Cash Flow provided and to enter into contracts with Cash Flow. Under those contracts, employees would help customers obtain loans from banks. The Cash Flow contracts permitted customers to keep a portion of the loan proceeds and customers agreed to provide the remaining percentage of the proceeds to Cash Flow. Cash Flow agreed to pay off the loans on behalf of its customers.
Cash Flow then used false information and fraudulent document to obtain loans for its customers for which they otherwise would not have qualified, and posed as the customers in communications with the banks.
The Securities Fraud Scheme
From July 2016 through September 2019, Espinal obtained more than $5 million in investments from victim investors on the basis of false and fraudulent pretenses and representations.
Espinal solicited investments from prospective customers using a marketing campaign on Spanish language television channels and the internet, the “Cash Flow TV” YouTube page, and live presentations in Cash Flow’s offices and elsewhere. Espinal also solicited investments from individuals who obtained loans through Cash Flow’s bank fraud conspiracy, encouraging loan customers to invest loan proceeds in Cash Flow’s investment program. Once investors agreed to invest in Cash Flow, Espinal issued “promissory notes” to investors that guaranteed monthly investment returns between 1.25 percent and 4 percent. The promissory notes stated that Cash Flow would return investors’ principal either one year from the date of the promissory note, or 60 days after investors demanded payment. Espinal and other Cash Flow employees signed the promissory notes on behalf of Cash Flow.
Espinal made a number of misrepresentations to investors. He told investors that he would pool their funds with the funds of other investors in investments related to real estate, real estate companies, a gold mine in Ecuador, and construction projects in countries outside of the United States. In reality, Espinal used investor funds to pay returns to earlier investors, to pay for personal expenses for himself, his family, and another Cash Flow employee, to perpetuate the bank fraud scheme, and to market the bank fraud and investment scheme to future victims. Espinal falsely claimed that Cash Flow’s purported real estate fund, Cash Flow Capital, was “licensed” by the Securities and Exchange Commission. He guaranteed monthly returns on investment based on the purported proceeds from the sale of properties in Cash Flow’s investment portfolio. In reality, Espinal did not sell Cash Flow properties, so no profits were derived from the sale of Cash Flow properties.
Two other individuals, Raymundo Torres and Jennie Frias, have previously been charged for their roles in the Cash Flow bank fraud conspiracy. Torres has pleaded guilty.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The securities fraud counts carry a maximum penalty of 20 years in prison and a $5 million fine.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Espinal today based on the allegations underlying the securities fraud charge.
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the Economic Crimes Unit and J. Stephen Ferketic of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Telesforo Del Valle Esq., New York
Butte pastor sentenced to probation, ordered to pay $288,757 for stealing from churchRead the Press Release
MISSOULA—The pastor of the United Pentecostal Church in Butte was sentenced today to five years of probation and ordered to pay $288,757 for embezzling from the church organization over a four-year period, U.S. Attorney Kurt Alme said.
Kenneth Emmett Hogue, 66, of Butte, pleaded guilty in August to wire fraud.
Chief U.S. District Judge Dana L. Christensen presided.
The prosecution said in court documents filed in the case that Hogue began serving as pastor of the United Pentecostal Church in Butte in 1982. In April 2012, Hogue was elected secretary/treasurer of the Rocky Mountain District of the UPC. Hogue’s duties as secretary/treasurer included making church offering deposits at the bank, writing checks for church expenses, maintaining financial records and preparing annual financial statements in conjunction with the church’s annual conferences.
From June 2012 to July 2016, Hogue embezzled $288,757 from the church. He admitted the fraud to church personnel and during an FBI interview in March 2018. Hogue carried out the scheme by using a debit card that belonged to the District to withdraw cash from ATMs, by issuing an unauthorized check to himself from a District bank account and by opening a new bank account in the name of the District, without permission, and transferring money into that account. He later removed the transferred money using ATM transactions.
Assistant U. S. Attorney Tim Racicot prosecuted the case, which was investigated by the FBI.
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Bullhead Man Sentenced to 5 Years for ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a Bullhead, South Dakota, man was sentenced on December 16, 2019, by U.S. District Judge Charles B. Kornmann, as a result of a jury convicting him of involuntary manslaughter.
Daniel Brown, age 29, was sentenced to 60 months in federal prison, to be followed by 3 years of supervised release. He was ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, on or about September 8, 2018, in Bullhead, Daniel Brown unlawfully killed Dionne Brown Otter by operating a motor vehicle recklessly while under the influence of alcohol and a controlled substance. Brown had a blood alcohol content of .22 percent and methamphetamine in his system. While driving up an unmaintained steep hill that had a walking path, Brown lost control of his crew cab truck, causing it to roll down the hill. As a result of the roll, two people were ejected, including Dionne Brown Otter. The second individual also sustained serious injuries.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Office of Justice Services, and the South Dakota Highway Patrol. Assistant U.S. Attorney Jeremy Jehangiri prosecuted the case.
Brown was remanded to the custody of the U.S. Marshals Service.
Bullhead Man Charged with Vehicular BatteryRead the Press Release
United States Attorney Ron Parsons announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Vehicular Battery.
Frank Chapman, age 30, was indicted on December 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 13, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 25, 2019, in Dewey County, Chapman drove a motor vehicle while under the influence of alcohol and caused serious bodily injury to another individual.
The charge is merely an accusation and Chapman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Chapman was released on bond pending trial. A trial date has not been set.
Browning man sentenced for molesting childrenRead the Press Release
GREAT FALLS—A Browning man who admitted to sexually molesting two children on the Blackfeet Indian Reservation was sentenced today to 27 months in prison, a lifetime of supervised release and ordered to pay $442 restitution, U.S. Attorney Kurt Alme said.
Edward Dean Cassidy, 53, pleaded guilty in September to abusive sexual contact of a minor.
U.S. District Judge Brian M. Morris presided.
Court records filed by the prosecution said that from 2014 to 2016, Cassidy sexually molested two minor children, who were under the age of 12 years.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI.
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Broward County School Board Employee Charged with Bribery and ExtortionRead the Press Release
A former supervisor of the Broward County School Board Physical Plant Operations Division has been charged with bribery and extortion under color of official right.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
Richard Allen Ellis Jr., 49, of Hollywood, Florida, was charged in an 8-count indictment with bribery concerning programs receiving federal funds and extortion under color of official right (Case No. 19cr60369). Yesterday, he was arraigned on the charges before U.S. Magistrate Judge Alicia O. Valle in Fort Lauderdale.
The indictment alleges, between September 26, 2018, and December 17, 2018, Ellis, while working as a Broward County School Board employee in the Custodial/Grounds Department, accepted four cash payments from an individual who worked for a contractor who did work at various Broward County public schools. The indictment further states that these payments had been occurring as early as 2016. The payments were made to Ellis, to ensure a steady flow of work for the contractor and the individual, and timely payment of the contractor’s invoices. Ellis is alleged to have accepted bribe payments wrongfully induced by his official position.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the FBI for its investigative efforts. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Bergen County Orthopedic Surgeon Charged with Failing to Pay over Payroll Taxes and Failing to Report a Foreign Bank AccountRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted an orthopedic surgeon for failing to pay over payroll taxes to the IRS and failing to report a foreign bank account, U.S. Attorney Craig Carpenito announced.
Brian Mehling, 54, of Hackensack, New Jersey, was charged in an 11-count indictment with 10 counts of failing to collect, account for, and pay over payroll taxes for one quarter in 2014, three quarters in 2015, three quarters in 2016, two quarters in 2017, and one quarter in 2018, and one count of failing to report a foreign bank account holding more than $10,000 for calendar year 2018.
According to documents filed in this case and statements made in court:
Mehling, an orthopedic surgeon, started Mehling Office Management LLC, in order to pay himself and other employees as part of his medical practice. Since the year 2006, Mehling has been involved with the IRS Collection Division due to his failure to pay his quarterly employment taxes for Mehling Office Management and other entities Mehling owned and controlled. Instead, Mehling chose to spend the majority of his money on other ventures, such as traveling around the world, on his personal rental properties, and promoting his stem cell research company.
Mehling was responsible for withholding payroll taxes from the gross salary and wages of his businesses’ employees to cover individual income, Social Security, and Medicare tax obligations. For at least 10 tax quarters, Mehling’s business withheld tax payments from its employees’ checks, but Mehling failed to pay over in full the payroll taxes due to the IRS. Additionally, Mehling did not report a bank account in France that at one point held more than $10,000 in 2018.
The 10 counts of failing to collect, account for, and pay over payroll taxes each carry a maximum penalty of five years in prison, and a $250,000 fine, or twice the gross gain or loss from the offense. The count alleging failure to report a foreign bank account carries a maximum penalty of five years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur.
The government is represented by Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Berea, Ohio Man Sentenced to 35 Years for Sexually Exploiting ChildrenRead the Press Release
Cody Swinnerton, 25, of Berea, was sentenced to 35 years in prison with 25 years supervised release to follow. He was also ordered to pay $45,900 in special assessments. He previously pleaded guilty on September 10, 2019 to seven counts of Sexual Exploitation of Children, and one count each of Receipt and Possession of Child Pornography after he contacted several children between the ages of 12 and 15 and coerced them into sending him sexually explicit images.
According to an affidavit in the case and information presented at sentencing:
Swinnerton began his exploitation of children in 2013 when he engaged in sexual conduct with a sleeping child and then videotaped the assault with his cellphone. Thereafter, Swinnerton attended athletic events, like the Little League World Series in South Williamsport, Pennsylvania, where he would take pictures of the preteen athletes. He would later contact the young athletes on social media sites like Instagram and Snapchat to congratulate them and share photos. Simultaneously, he would contact the boys online using a teenage female persona and solicit, entice and coerce them to send sexually explicit images of themselves.
Swinnerton used this technique to gain access to a young teenage boy and his family in New York. After an extended period of Instagram chats, Swinnerton moved to New York and gained access to the young athlete’s home by, among other things, befriending the family. On more than one occasion, Swinnerton sexually assaulted the sleeping minor and recorded the assault. Swinnerton used memorabilia he acquired during his job with the Cleveland Cavaliers to entice this victim and others to communicate with him.
The case came to the attention of law enforcement when the Ohio Internet Crimes Against Children Task Force received a tip that Swinnerton appeared to be enticing and coercing minors to produce sexually explicit images. Swinnerton controlled multiple accounts and targeted minors between the ages of 12 and 15 on Instagram and Facebook.
Swinnerton contacted the victims’ friends and family to coerce the victims into producing more images. He also threatened the victims in an effort to get them to produce sexually explicit images. Further investigation revealed potential victims in Ohio, Tennessee, Iowa, Texas, Australia, Austria and France.
A search warrant was executed at Swinnerton’s Berea residence on January 25, 2019. Relatives said Swinnerton was on vacation in Australia at the time of the search, however, ICAC investigators were able to seize several of Swinnerton’s computer devices. A forensic review of Swinnerton’s laptop revealed hundreds of sexually explicit images of preteen and teenage boys. Further investigation revealed that Swinnerton was staying in Australia with another victim and his family. Swinnerton surreptitiously recorded sexually explicit videos of the Australian boy even after learning that Ohio investigators had executed the search warrant on his house.
“Let this 35-year prison sentence send a message to those would sexually assault and exploit our children,” said United States Attorney Herdman. “We will find you anywhere in the world and we will never quit until you are brought to justice and held accountable for the unspeakable harm you have caused.”
“This case is a disturbing reminder that international borders are no longer a hindrance for online predators,” said Vance Callender, special agent in charge of HSI for Michigan and Ohio. “However, this sentence should ensure victims around the world that Homeland Security Investigations and our partners in the international law enforcement community are committed to aggressively targeting those engaged in these heinous acts.”
“This defendant's conduct should serve as a warning to parents that offenders are creating fictitious identities to groom, threaten and exploit children on today's popular Internet sites and social media apps,” said David Frattare, Commander of the Ohio Internet Crimes Against Children Task Force. “Online child exploitation offenders understand the power that these inappropriate images and videos have when it comes to continuing this victimization.”
Australian Federal Police (AFP) Assistant Commissioner Debbie Platz said alarmingly, the volume of reports concerning the sexual exploitation of children is increasing and the appetite for the vile material can lead to vulnerable children suffering devastating harm. “Today’s outcome sends a strong message to child sex offenders that you are not anonymous online,” Assistant Commissioner Platz said. “It does not matter where you live, or if you are in a different country to your victims, police will track you down and prosecute you. The partnership forged between HSI and the AFP in countering child exploitation on a global level was pivotal to the successful outcome in this matter.”
Australian Border Force Commander, Investigations, Graeme Grosse said this result was a great example of international partner agencies, working together to protect children on a global scale.
“The ABF has assisted our international partners in catching and bringing this individual to justice who was actively seeking out children with the intent to exploit and abuse them for his own gratification.” he said. “Anybody who is involved in this type of activity should know that there is nowhere to hide and the international law enforcement community is actively seeking you out to ensure are stopped and you face the full force of the law.”
This investigation was conducted by Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force, HSI-Canberra, the Australian Federal Police and Australian Border Force. The case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
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Baltimore Department of Public Works Supervisor Facing Federal Indictment for Using DPW Resources to Install Water, Sewer, and Fire Line Services Without Paying City Fees or Obtaining PermitsRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Ronald Maurice Smith, age 46, of Baltimore, Maryland, on the federal charges of extortion and being a felon in possession of a gun. A related criminal information was also filed charging Philip Michael Loverde, age 38, of Glen Burnie, Maryland, with extortion. The indictment and criminal information were both filed on December 18, 2019.
The federal charges were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Smith’s 10-count indictment, from January 2014 to February 2016, Smith, who was a supervisor in the Baltimore City Department of Public Works’ Water and Waste Management Division (DPW), personally enriched himself and others by using Baltimore City employees, equipment, and materials to install new and upgraded water, sewer, and fire line services for private developers and property owners without obtaining the required permits, approvals, and inspections, without paying the Baltimore City fees for water, sewer, and/or fire line service installation permits and traffic control, and without installing water meters while charging lower prices to the private developers and property owners than City-approved, bonded, and licensed utilities contractors would charge.
Specifically, the indictment alleges that Smith used his authority as a DPW supervisor to cause DPW workers, using DPW equipment, to make a street cut to access the public water main, and install a pipe to connect the water main to a location for a water meter vault, and from that location to a private property, all without obtaining the necessary permits. Smith was paid in cash by the private property owner or developer either because Smith asked for a cash payment or because Smith caused his co-conspirator, licensed plumber Philip Loverde, one of the owners of All Service Plumbing and Drain Cleaning and All Service Plumbing and Heating, to create a false All Services invoice to submit to the private property owner or developer, when in fact, the indictment alleges that Smith and DPW crews performed the work. According to the indictment, when All Services was paid, Loverde cashed the check and provided the cash to Smith.
The indictment alleges that to conceal the scheme, Smith caused other DPW employees to create and submit false DPW service requests and work orders. According to the indictment, Smith caused DPW personnel to place metal plates over the street cuts DPW personnel made to install the new water service and eventually used DPW equipment, personnel, and materials to re-pave where the street cuts and excavation had occurred. The indictment alleges that Smith received at least $64,000 as a result of the scheme.
Finally, on February 5, 2016, Smith, who has a previous felony conviction, allegedly illegally possessed a .380-caliber handgun.
If convicted, Smith and Loverde each face a maximum sentence of 20 years in federal prison for extortion under color of official right. Smith also faces a maximum of 10 years in federal prison for being a felon in possession of a gun. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An initial appearance in U.S. District Court in Baltimore, has not yet been scheduled for Smith or Loverde.
An indictment or criminal information is not a finding of guilt. An individual charged by indictment or criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting these cases.
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Albany Attorney Sentenced to 54 Months on Money Laundering, False Tax Filing ConvictionsRead the Press Release
ALBANY, NEW YORK – Richard J. Sherwood, age 59, of Guilderland, New York, was sentenced today to 54 months in federal prison for conspiring to steal approximately $11.8 million from estates for which he served as an attorney and fiduciary.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- New York Attorney General Letitia James;
- James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
- Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.
Senior United States District Judge Lawrence E. Kahn also ordered Sherwood to serve a 1-year term of supervised release, to pay $5,560,505 in restitution, and to forfeit the following as proceeds of his crimes: 12 bank and brokerage accounts, and a house overlooking Galway Lake in Saratoga County.
In a related case prosecuted by the New York Attorney General’s Office, Sherwood pled guilty, in Albany County Court, to grand larceny in the first degree, and was sentenced this afternoon to a concurrent term of 3 to 9 years in state prison.
Sherwood’s co-conspirator, Thomas K. Lagan of Cooperstown, New York, was sentenced on December 11 to 78 months in federal prison, to run concurrent with a state sentence of 4 to 12 years in prison.
United States Attorney Grant C. Jaquith stated: “Our society depends on attorneys to be honest and ethical. Richard Sherwood desecrated that trust when he stole millions of dollars from clients who relied on him to transfer their money to churches and other beneficiaries after they died. His seven-year criminal conspiracy is all the more disturbing because Sherwood was also Guilderland Town Justice at the time. Today’s sentence punishes Sherwood for his despicable conduct and requires him to repay every last dime that he stole.”
FBI Special Agent in Charge James N. Hendricks stated: “Richard Sherwood stole millions of dollars from estates meant for charities, churches, and civic organizations, while at the same time serving as an elected judge. Today’s sentencing affirms that the FBI has zero tolerance for attorneys who exploit their clients, and we will continue to work with our partners to make sure these criminals are brought to face justice.”
IRS-CI Special Agent in Charge Jonathan D. Larsen stated: “As demonstrated by the sentencing of co-conspirator Thomas Lagan last week and now Mr. Sherwood’s sentence today, IRS-Criminal Investigation continues to make tax law enforcement a key priority. Protecting victims is also one of our most important objectives. The sentences imposed in these cases illustrate the consequences of lying and stealing from the federal government and innocent taxpayers. They also underscore the government’s commitment to prosecuting tax fraud. Today’s sentence should serve as a warning and deterrent to others.”
Sherwood practiced primarily in the area of trusts and estates. Starting in about 2006, he provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York. Sherwood was advising the Bruggemans when, in 2006, they signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s other sister.
Warren Bruggeman died in April 2009, and Pauline died in August 2011. At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.
In pleading guilty to charges of money laundering conspiracy and filing a false tax return, Sherwood admitted that after Pauline Bruggeman’s death, he and Lagan conspired to steal millions of dollars from her estate as well as from Anne Urban, who died in 2013. Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013.
Sherwood admitted that he and Lagan stole $11,831,563, and that nearly $3.6 million was transferred outright to him, with an additional $1.96 million transferred to an entity, Empire Capital Trust, LLC, that he and Lagan controlled. Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake.
Sherwood admitted that he and Lagan induced Anne Urban to create a trust whose purpose, unknown to her, was to allow him and Lagan to transfer Bruggeman/Urban assets to themselves. Sherwood and Lagan also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves.
Sherwood pled guilty to filing false federal tax returns in 2013 and 2015. These returns were false because he did not report, as other income, about $4.7 million that he received from the fraudulent scheme.
Sherwood served as Guilderland Town Justice from 2014 until his arrest on February 23, 2018. He resigned his position on March 5, 2018. He was disbarred on September 13, 2018.
The federal case was investigated by the FBI and IRS-CI, and was prosecuted by Assistant U.S. Attorney Michael Barnett. Assistant U.S. Attorneys Adam J. Katz and Alicia G. Suarez prosecuted the asset forfeiture aspects of the case.
The state case was prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Travis Hill. The Criminal Justice Division is led by Chief Deputy Attorney General Jose Maldonado. The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam. The Investigations Bureau is led by Acting Chief John Reidy. Financial analysis was provided by Principal Auditor Investigator Meaghan Scotellaro of the Forensic Audit Section under the supervision of Deputy Chief Auditor Sandy Bizzarro and Chief Auditor Edward J. Keegan, Jr. Senior Analyst Sara Pogorzelski assisted in the investigation.
Wednesday 18 December 2019
Woodward Defendant Sentenced to More Than 13 Years for Gun Possession and Violence While DetainedRead the Press Release
OKLAHOMA CITY – SCOTT ALLEN JONES, 32, of Woodward, Oklahoma, has been sentenced to 161 months in prison for possessing a firearm and ammunition after a felony conviction, as well as for assaults on detention officers while in the custody of the U.S. Marshals Service, announced U.S. Attorney Timothy J. Downing.
According to an indictment filed on September 5, 2018, Jones possessed a .40 caliber pistol and various kinds of ammunition on August 21, 2018, after he had been convicted of a felony. He was ordered detained pending trial in the custody of the U.S. Marshals Service.
Later that month, on September 17, 2018, Jones assaulted three detention officers at the Logan County Jail, where he was being held pursuant to a contract with the Marshals Service. As described in a separate indictment filed on July 17, 2019, he struck each officer in the head and thereby interfered with the performance of their official duties. A probable cause affidavit filed in Logan County District Court states that Jones refused to cooperate with jailers and punched them with his fists before they were able to use a taser to subdue him.
On December 18, 2018, a jury found Jones guilty on the count charging possession of a firearm and ammunition. Jones pleaded guilty to all three assault counts on August 22, 2019.
On December 16, 2019, U.S. District Judge David L. Russell sentenced Jones to ten years in prison on the firearm count, to be followed by three years of supervised release. The court further sentenced Jones to 41 months in prison for the three assaults and ordered that sentence to run consecutively, that is, to be served after the ten-year firearm sentence.
This case is the result of an investigation by the Federal Bureau of Investigation—Oklahoma City Field Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Marshals Service; the Woodward County Sheriff’s Office; and the Logan County Sheriff’s Office. Assistant U.S. Attorneys Nicholas J. Patterson and Jacquelyn M. Hutzell prosecuted the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. For more information about Project Guardian, please see the Attorney General’s announcement here.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Wilkes-Barre Man Sentenced to 98 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 17, 2019, United States District Court Judge A. Richard Caputo sentenced Nigel Deshawn Velardo, age 23, of Wilkes-Barre, Pennsylvania, to 98 months’ imprisonment and a four-year term of supervised release, for being in possession with intent to distribute fentanyl and possession of firearms in furtherance of drug trafficking.
According to United States Attorney David J. Freed, on March 8, 2019, Velardo was found in possession of fentanyl and five semi-automatic handgun-style firearms, which were seized pursuant to a search warrant in Wilkes-Barre.
The case was investigated by the Federal Bureau of Investigation and the Wilkes-Barre Police Department. Assistant U.S. Attorney Jeffery St John prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: [list partners here]. For more information about Project Guardian, please see https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
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Virginia Man Sentenced to Five Years in Prison for Gun TraffickingRead the Press Release
CAMDEN, N.J. – A Virginia man has been sentenced to 60 months in prison for conspiring to traffic 35 guns into New Jersey, U.S. Attorney Craig Carpenito announced today.
Shawn K. Harvey, 54, of Locust Grove, Virginia, was previously convicted of one count of conspiracy to traffic firearms and three counts of trafficking firearms following a two-week trial before U.S. District Judge Noel L. Hillman. Judge Hillman imposed the sentence Dec. 17, 2019, in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Shawn K. Harvey and his son, Shawn M. Harvey, a/k/a “Munchy,” 29, also of Locust Grove, were originally arrested in August 2016 after agents from the Bureau of Alcohol, Tobacco and Firearms (ATF) directed and supervised a sting operation using a confidential informant, who purchased firearms from the Harveys at a parking lot in Pennsauken, New Jersey. Ultimately, the Harveys sold 35 firearms – including assault-style rifles, revolvers, shotguns and semi-automatic handguns – in 11 separate transactions spanning several weeks. One of these firearms was reported stolen in Virginia and many of the guns were brand new and came with ammunition.
In addition to the prison term, Judge Hillman sentenced Shawn K. Harvey to three years of supervised release. Shawn M. Harvey previously pleaded guilty and is scheduled to be sentenced Jan. 8, 2020.
U.S. Attorney Carpenito credited ATF special agents, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to the sentencing.The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: A. Harold Kokes Esq., Pleasantville, New JerseyUnited States Attorney Mike Stuart's Statement on Attorney General Barr's Launch of Operation Relentless PursuitRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement:
“Every citizen deserves to live without fear of violence. Under Attorney General Barr’s leadership, the Department of Justice has implemented an “all hands on deck” approach to making communities safer. The men and women in blue, who willingly put themselves in harm’s way every day to protect each of us, can be just as confident in this administration’s backing of law enforcement. The launch of Operation Relentless Pursuit demonstrates the Department’s boundless commitment to combatting violent crime in cities throughout the country that continue to be plagued by it. The Operation further demonstrates our commitment to federal, state and local law enforcement by supporting them with additional manpower and financial resources to fight violent crime. While we are fortunate that West Virginia cities have not experienced increases in violent crime as have other areas in the country, West Virginians must also know that this United States Attorney is proud to stand beside Attorney General Barr and our federal, state and local law enforcement partners to continue the fight against violent crime in our communities and support those working so valiantly to protect and serve.”
For more information on Operation Relentless Pursuit, please see the Department of Justice press release below.
The United States Department of JusticeFOR IMMEDIATE RELEASE
WWW.JUSTICE.GOV/NEWS
WEDNESDAY, DECEMBER 18, 2019
ATTORNEY GENERAL WILLIAM P. BARR ANNOUNCES LAUNCH OF OPERATION RELENTLESS PURSUITThe Operation Will Surge Federal Law Enforcement Resources into Seven of America’s Most Violent Cities
WASHINGTON – Today, Attorney General William P. Barr announced the launch of Operation Relentless Pursuit, an initiative aimed at combating violent crime in seven of America’s most violent cities through a surge in federal resources.
Joined at a press conference in Detroit, Michigan, by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Acting Director Regina Lombardo, Drug Enforcement Administration (DEA) Acting Administrator Uttam Dhillon, FBI Director Christopher A. Wray, and U.S. Marshals Service Director Donald W. Washington, Attorney General Barr pledged to intensify federal law enforcement resources into Albuquerque, Baltimore, Cleveland, Detroit, Kansas City, Memphis, and Milwaukee – seven American cities with violent crime levels several times the national average.
“Americans deserve to live in safety,” said Attorney General William P. Barr. “And while nationwide violent crime rates are down, many cities continue to see levels of extraordinary violence. Operation Relentless Pursuit seeks to ensure that no American city is excluded from the peace and security felt by the majority of Americans, while also supporting those who serve and protect in these communities with the resources, training, and equipment they need to stay safe.”
“The men and women of ATF are deeply committed to and focused on reducing crime gun violence in our communities,” said ATF Acting Director Regina Lombardo. “We are proud that our efforts have significantly contributed to the historic reductions in violence that our nation has realized in recent years. Operation Relentless Pursuit combines the resources of ATF, DEA, FBI, and U.S. Marshals to support our state and local law enforcement partners in those cities that – regrettably – continue to be plagued by rates of violent crime that are simply too high. Through Relentless Pursuit, we pledge to hold accountable the trigger-pullers, firearm traffickers, violent criminals and those who supply them the guns to terrorize our communities. ATF will aggressively utilize every available tool, including our crime gun enforcement teams, National Integrated Ballistic Information Network and firearms tracing to identify, investigate and support the prosecution of the most violent firearm offenders.”
“Drug traffickers – including cartels and street gangs – will stop at nothing to turn a profit, often using violence and intimidation to expand their reach,” said DEA Acting Administrator Uttam Dhillon. “This targeted surge of resources will further strengthen our ability to work with our federal, state, and local partners to pursue the worst offenders and make our communities safer.”
“The FBI remains committed to providing our specialized expertise and resources to assist our federal, state and local partners fighting violent crime,” said FBI Director Christopher A. Wray. “We are here today to reaffirm our dedication to reducing violent crime in the cities selected for Operation Relentless Pursuit to combat the threats that arise from gangs and criminal enterprises that drive violence in the communities we are sworn to protect.”
“The U.S. Marshals Service is proud of the integral role we play in supporting Attorney General Barr’s strong leadership and commitment to combating violent crime and enhancing public safety throughout our nation,” said U.S. Marshals Service Director Donald W. Washington. “We will continue to work with our local, state, and federal partners to make communities safer by addressing violent crime at its core and taking the worst of the worst fugitives and other felons off the streets.”
The operation will involve increasing the number of federal law enforcement officers to the selected cities, as well as bulking up federal task forces through collaborative efforts with state and local law enforcement partners. The surge in federal agents will be complemented by a financial commitment of up to $71 million in federal grant funding that can be used to hire new officers, pay overtime and benefits, finance federally deputized task force officers, and provide mission-critical equipment and technology.
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AG
19-1421
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U.S. Attorney’s Office for the Northern District of Oklahoma Collects More Than $3 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
U.S. Attorney Trent Shores announced today that the Northern District of Oklahoma collected $3,199,436.92 in criminal and civil actions in Fiscal Year 2019. Of this amount, $1,211,753.29 was collected in criminal actions and $1,987,683.63 was collected in civil actions.
Additionally, the Northern District of Oklahoma worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,632,217.49 in cases pursued jointly. Of this amount, $686.89 was collected in criminal actions and $1,631,530.60 was collected in civil actions.
“The United States Attorney’s Office, working on behalf of American taxpayers and victims of crime, recovered more than $3 million in criminal and civil actions in fiscal year 2019. We recovered money defrauded from government programs and pursued substantial amounts in restitution and fines that go to victims or help provide critical victim related services,” said U.S. Attorney Trent Shores. “The Asset Recovery Unit is a critical part of our team, and they do such great work for the cause of justice. I am so proud of our team of Assistant U.S. Attorneys, investigators, paralegals, and legal assistants who work diligently to see that victims are restored, restitution and fines are paid, and civil financial obligations are satisfied.”
U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Also, the U.S. Attorney’s Office in the Northern District of Oklahoma working with partner agencies and divisions, collected $1,324,755 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and are equitably shared for a variety of local, state, tribal, and federal law enforcement purposes.
In one case in the Northern District of Oklahoma, the court ordered a criminal defendant to pay $368,329 in restitution to the victim. The Asset Recovery Unit seized and forfeited two vehicles, a financial account, and proceeds from the sale of the convicted embezzler’s home. The government provided the funds as restitution to the victim. In another case, the Asset Recovery team seized more than $400,000 in real property, financial accounts, vehicles, and a yacht. The funds were also provided to the victim in the case.
In the Civil Division, the False Claims Act is an important tool used by the Affirmative Civil Enforcement Unit to protect the integrity of federal funds, such as taxpayer-funded health care programs. The Act allows the government to address losses it sustains by providing for treble damages and civil monetary penalties for each false claim made to the government. In April alone, two doctors settled with the United States for more than $350,000 for allegedly accepting illegal kickbacks. In both cases, the doctors immediately began making payments to restore taxpayer dollars illegally collected in the kickback schemes.
U.S. Attorney's Office collects more than $181 million in civil & criminal actions in fiscal year 2019Read the Press Release
COLUMBUS, Ohio – U.S. Attorney David M. DeVillers announced today that the Southern District of Ohio was involved in the collection of approximately $181.5 million over the past fiscal year.
The Southern District of Ohio collected more than $98 million in criminal and civil actions in fiscal year 2019. Of this amount, nearly $91.5 million was collected in criminal actions and approximately $6.7 million was collected in civil actions.
Additionally, the Southern District of Ohio worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $79.5 million in cases pursued jointly by these offices.
“Our collection figures make clear that our work delivers a significant return on public investment,” said U.S. Attorney DeVillers.
The largest single recovery in a criminal case this year involved a fine ordered against GS Caltex Corporation for nearly $46.7 million, which was paid in full.
GS Caltex Corporation was one of five South Korean oil companies involved in rigging bids to defraud the U.S. Department of Defense.
Throughout the course of a conspiracy that lasted more than a decade, the five South Korean oil companies conspired to raise the price of key contracts that provided fuel on U.S. military bases in South Korea.
Assistant United States Attorneys in the Southern District of Ohio worked with the Antitrust and Civil Divisions of the Department of Justice to obtain guilty pleas and criminal fines, civil penalties and damages to the United States totaling more than $350 million.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of numerous federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The U.S. Attorney’s office, working with partner agencies and divisions, collected approximately $4 milllion in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
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U.s. Attorney John C. Anderson of the District of New Mexico to Announce Stream of Law Enforcement Resources to Address Persistent Violent Crime in AlbuquerqueRead the Press Release
U.S. ATTORNEY JOHN C. ANDERSON OF THE DISTRICT OF NEW MEXICO TO ANNOUNCE STREAM OF LAW ENFORCEMENT RESOURCES TO ADDRESS PERSISTENT VIOLENT CRIME IN ALBUQUERQUE
****** MEDIA ADVISORY ******
ALBUQUERQUE, N.M. – United States Attorney John C. Anderson will announce Attorney General William P. Barr’s new initiative to reduce violent crime in Albuquerque.
WHO:
John C. Anderson
United States Attorney for the District of New Mexico
Sonya K. Chavez
United States Marshal for the District of New Mexico
James C. Langenberg
Special Agent in Charge of the Albuquerque Field Office
Federal Bureau of Investigation
Monique Y. Villegas
Special Agent in Charge of the Phoenix Field Division
Bureau of Alcohol, Tobacco, Firearms and Explosives
Kyle W. Williamson
Special Agent in Charge of the El Paso Division
Drug Enforcement Administration
Mike Geier
Chief of Police
Albuquerque Police Department
Manuel Gonzales III
Sheriff
Bernalillo County Sheriff’s Office
WHAT:
The United States Attorney and Department of Justice law enforcement leaders will announce their participation in a new violent crime reduction initiative.
WHEN:
Wednesday, December 18, 2019
12:30 p.m. MST (2:30 P.M. EST)
WHERE:
The United States Attorney’s Office for the District of New Mexico
201 Third Street N.W.
Suite 900
Albuquerque, New Mexico 87102
OPEN PRESS
NOTE: All media representatives must present government-issued photo I.D. (i.e., driver’s license) as well as valid
media credentials.
Media representatives must arrive by 12:00 p.m. MST. Inquiries regarding logistics should be directed to Assistant U.S. Attorney Sean J. Sullivan at 505-224-1514.
Do not reply to this message. If you have questions, please use the email addresses and telephone numbers for the contacts in the message.
Turner Woman Sentenced for Embezzlement from Employee Benefit PlanRead the Press Release
PORTLAND, Maine: A Turner woman was sentenced today in federal court in Portland for embezzling from an employee benefit plan, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge George Z. Singal sentenced Melissa Greenlaw, a/k/a Melissa Moore, 46, to 12 months and one day in prison and three years of supervised release. The court also ordered Greenlaw to pay $137,262.16 in restitution to the victims of the offense. Greenlaw pleaded guilty on June 4, 2019.
According to court records, Greenlaw was the Vice President of Operations for a health care company. In that capacity, she was a fiduciary for the company’s Deferred Savings and Profit Sharing Plan, a defined contribution 401(k) plan for employees to save for retirement. The plan was funded by amounts withheld from participating employees’ paychecks. From approximately July 2011 until May 2014, Greenlaw directed that funds that had been contributed by employees for deposit into the plan instead be used to pay company operating expenses, including bonuses and personal expenses for herself. Greenlaw misappropriated approximately $133,000 in employee contributions from the plan.
The U.S. Department of Labor, Office of Inspector General, Office of Investigations; and the U.S. Department of Labor, Employee Benefits Security Administration investigated the case.
Tracy Resident Sentenced to 3 Years in Prison for “H-1B” Visa Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Abhijit Prasad was sentenced today to three years in prison for visa fraud and aggravated identity theft. In addition, the Honorable Charles R. Breyer, U.S. District Judge in the Northern District of California, ordered the forfeiture of $1,193,440.
The case originated in Sacramento when the grand jury there indicted Prasad in 2016, but the case was ultimately tried in San Francisco following a court order transferring the case. U.S. Attorney David Anderson for the Northern District of California and U.S. Attorney McGregor W. Scott for the Eastern District of California made the announcement.
Prasad, 52, was found guilty by a jury on Aug. 5 of 19 counts of visa fraud, two counts of fraudulent obtainment of foreign visas, and two counts of aggravated identity theft. According to the evidence at trial, Prasad filed 19 petitions for H-1B nonimmigrant visas containing false statements, made under penalty of perjury, as to purported work projects to be performed at locations in California, including Cisco Systems. The evidence at trial showed that Cisco had no expectation that the foreign workers who were the beneficiaries of the visa petitions would actually work at Cisco on an existing work project. The evidence at trial further showed that the defendant knowingly submitted forged Cisco documents to United States Citizenship and Immigration Services in support of his claims that the beneficiaries would work at Cisco.
Finally, the evidence at trial showed that Prasad fraudulently used the digital signature of a Cisco employee, who was not authorized to sign Cisco employment documents, to create a document that would leave the impression that two of the H-1B workers had an existing work project at Cisco. Prasad obtained two of the H-1B visas using this fraudulent document that purports to be a fully executed Cisco contract.
The case is the product of an investigation by the U.S. Department of State, Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Michael A. Rodriguez prosecuted the case. Assistant U.S. Attorney Karen D. Beausey handled the forfeiture.
Tracy Resident Sentenced to Three Years in Prison for “H-1B” Visa Fraud and Aggravated Identity TheftRead the Press Release
SAN FRANCISCO —Abhijit Prasad was sentenced today to 36 months in prison following his conviction at trial for visa fraud and aggravated identity theft. The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge in the Northern District of California.
U.S. Attorney David Anderson for the Northern District of California and U.S. Attorney McGregor W. Scott for the Eastern District of California made the announcement.
Prasad, 52, was found guilty by a jury on August 5, 2019, of 19 counts of visa fraud, two counts of fraudulent obtainment of foreign visas, and two counts of aggravated identity theft. The case originated in Sacramento where a federal grand jury indicted Prasad in 2016. The case ultimately was tried in San Francisco following a court order transferring the case there. According to the evidence at trial, Prasad filed 19 petitions for H-1B nonimmigrant visas containing false statements, made under penalty of perjury, as to purported work projects to be performed at locations in California, including Cisco Systems. The evidence at trial showed that Cisco had no expectation that the foreign workers who were the beneficiaries of the visa petitions would actually work at Cisco on an existing work project. The evidence at trial further showed that the defendant knowingly submitted forged Cisco documents to United States Citizenship and Immigration Services in support of his claims that the beneficiaries would work at Cisco.
In addition, the evidence at trial showed that Prasad fraudulently used the digital signature of a Cisco employee, who was not authorized to sign Cisco employment documents, to create a document that would leave the impression that two of the H-1B workers had an existing work project at Cisco. Prasad obtained two of the H-1B visas using this fraudulent document that purports to be a fully executed Cisco contract.
In addition to the prison term, Judge Breyer ordered Prasad to forfeit $1,193,440.87. Prasad is in federal custody and will begin serving his prison term immediately.
Assistant U.S. Attorneys Audrey B. Hemesath, Michael A. Rodriguez, and Karen Beausey are prosecuting the case. The case is the product of an investigation by the U.S. Department of State, Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Three Plead Guilty to Participating in Drug Trafficking Conspiracy in Nashua AreaRead the Press Release
CONCORD - George Cruz, 30, of Nashua, Isaiah Kinard, 30 of Manchester, and Melvin Nooks, Jr., 29, of Fitchburg, Massachusetts, have pleaded guilty in federal court to participating in a conspiracy to distribute crack cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, all three defendants were members of a drug trafficking organization that distributed crack cocaine and other drugs to various customers in the Nashua area. Cruz and Melvin Nooks Jr. were responsible for distributing over 280 grams of crack cocaine.
Cruz pleaded guilty on December 17, 2019, and is scheduled to be sentenced on March 31, 2020. Kinard and Nooks pleaded guilty today. Kinard is scheduled to be sentenced on March 31, 2020. Nooks Jr. is scheduled to be sentenced on April 1, 2020.
“The distribution of crack cocaine endangers all of our citizens,” said U.S. Attorney Murray. I commend the FBI agents and Nashua Police Officers who worked together to end this harmful criminal conspiracy. Drug traffickers should be aware that federal, state, and local law enforcement agencies are working together every day to put them out of business and bring them to justice.”
“Today, Cruz, Kinard, and Nooks finally accepted responsibility for trafficking crack cocaine in and around Nashua, NH after learning the hard way that the FBI and our law enforcement partners are committed to keeping illegal drugs out of our neighborhoods and schools,” said Joseph R. Bonavolonta Special Agent in Charge of the FBI Boston Division. “We will continue to work with our law enforcement partners to prevent criminal enterprises like this one from inflicting more to damage our community.”
This matter was investigated by the Federal Bureau of Investigation and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Anna Krasinski.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Three Men Sentenced to Federal Prison for Smuggling Nearly $200 Million of Cocaine on Board A Semi-Submersible SubmarineRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced three Colombian nationals to federal prison terms for conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States. Carlos Chavez-Aguirre (35), Yesid Caicedo Asprilla (50), and David Hurtado Vallecilla (45) were sentenced to 20, 12, and 11 years, respectively. They had pleaded guilty in August and September 2019.
According to court documents, on June 18, 2019, while on routine patrol in the East Pacific Ocean, the United States Coast Guard (USCG) Cutter Munro located a 50-ft long self-propelled semi-submersible submarine with a sealed cabin approximately 92 nautical miles northwest of Tumaco, Colombia, in international waters.
USCG law enforcement officers boarded the semi-submersible submarine while it was still moving. The boarding led to the arrest of five individuals, and the recovery of 7,683 kilograms of cocaine (almost 17,000 pounds) worth approximately $192 million.
The two remaining defendants are scheduled to be sentenced on January 14, 2020 and February 12, 2020.
Carlos Chavez-Aguirre had previously been convicted of conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States.
“This case highlights the interagency cooperation that fuels the mission of the Panama Express Strike Force; which is to disrupt and dismantle transnational criminal organizations,” said FBI Tampa Division Special Agent in Charge Michael F. McPherson.
“This high-profile narcotics interdiction case was the result of the investigative efforts HSI and our partner agencies at the Panama Express Strike Force conduct on a daily basis,” said HSI Tampa Assistant Special Agent in Charge Hector Colon.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Diego F. Novaes.
Theryn Jones and Arius Hopkins Convicted of 2014 Murder of Shaquille MalcomRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that THERYN JONES, a/k/a “Ty,” a/k/a “Old Man Ty,” a/k/a “Tyballa,” and ARIUS HOPKINS, a/k/a “Scrappy,” a/k/a “Scrap,” were convicted of the January 2, 2014, murder of Shaquille Malcolm, 20, in the Bronx, New York. JONES and HOPKINS were convicted yesterday following a two-week trial before U.S. District Judge Lewis A. Kaplan.
U.S. Attorney Geoffrey S. Berman said: “Nearly six years ago, 20-year-old Shaquille Malcolm was shot 13 times and killed in a Bronx apartment lobby. A unanimous jury has now held Jones and Hopkins responsible for this terrible crime.”
As reflected in the Indictment, and according to the evidence introduced at trial:
THERYN JONES was a high-ranking leader of the Mac Balla gang and the leader of a large-scale drug trafficking organization that distributed crack cocaine out of a residential building in the Allerton section of the Bronx, New York. Because Shaquille Malcolm and others were encroaching on JONES’s drug territory, JONES directed HOPKINS and another person to murder Malcolm.
On January 2, 2014, HOPKINS and another individual shot Shaquille Malcolm multiple times in the lobby of an apartment building located at 2818 Bronx Park East in the Bronx, New York. Malcolm died at the scene.
* * *
JONES, 42, of the Bronx, New York, and HOPKINS, 25, of the Bronx, New York, were each convicted of using a firearm to commit murder in furtherance of a drug trafficking crime (Count One), which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison, and murder while engaged in a conspiracy to distribute 280 grams and more of crack cocaine (Count Two), which carries a mandatory minimum sentence of 20 years’ in prison and a maximum sentence of life in prison. JONES and HOPKINS are scheduled to be sentenced on May 7, 2020.
Mr. Berman praised the outstanding investigative work of the New York City Police Department.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael K. Krouse, Danielle R. Sassoon, Margaret Graham, and Jessica Fender are in charge of the prosecution.
Texas Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – A San Elizario, Texas, man has pleaded guilty in federal court to his role in a conspiracy to distribute large quantities of cocaine in the metropolitan area.
Armando Rosales Jr., 30, pleaded guilty before U.S. Chief District Judge Beth Phillips on Tuesday, Dec. 17, to participating in the drug-trafficking conspiracy that lasted from October 2013 to Nov. 15, 2018.
By pleading guilty, Rosales admitted that he was a courier for a drug-trafficking organization. Investigators had received information that a shipment of cocaine was being delivered to the Kansas City, Missouri, metropolitan area. On Dec. 18, 2017, a DEA investigator stopped the Ford F-150 pickup Rosales was driving near Sweetwater, Texas. The investigator searched Rosales’s vehicle and found eight packages completely wrapped in electrical tape in the rear seat back of the truck. The packages contained a total of approximately eight kilograms of powder cocaine. Rosales admitted he was transporting the cocaine to the Kansas City metropolitan area.
According to the plea agreement, the drug-trafficking organization was purchasing cocaine for approximately $27,000 to $27,500 per kilogram. Accordingly, the value of the eight kilograms that Rosales transported was at least $216,000.
Co-defendant Miguel Armendariz-Rascon, 31, a citizen of Mexico residing in Olathe, Kansas, has also pleaded guilty to his role in the conspiracy. Armendariz-Rascon admitted that he aided a co-conspirator in providing $491,211 in illicit drug proceeds – which was seized by law enforcement – to another co-conspirator. Armendariz-Rascon admitted the money represented the proceeds of the distribution of more than 17 kilograms of cocaine.
Under federal statutes, Rosales and Armendariz-Rascon are each subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford and Special Assistant U.S. Attorney Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.
Suspended Andover Attorney Sentenced for Tax FraudRead the Press Release
BOSTON – A former attorney from Andover was sentenced yesterday to two years in prison for engaging in a years-long scheme to defraud the IRS.
Daniel P. Gibson, 62, was sentenced by U.S. District Judge Indira Talwani to 24 months in prison, two years of supervised release, and restitution in an amount to be determined at a later time. In May 2019, Gibson was convicted following trial of two counts of tax fraud and one count of conspiring to defraud the IRS.
At trial, the evidence showed that Gibson conspired with his accountant to prepare and file false tax returns in the tax years 2005, 2006, 2008 and 2009 that intentionally underreported approximately $3.7 million in income earned by the law firm of which Gibson was the managing partner. As a result, Gibson underreported his personal income by approximately $2.5 million and avoided taxes of more than $875,000.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and William B. Brady of Lelling’s Criminal Division prosecuted the case.
State Department Employee and Spouse Indicted for Trafficking in Counterfeit Goods from U.S. EmbassyRead the Press Release
WASHINGTON— A U.S. Department of State employee and his spouse were arrested today for their role in an international conspiracy to traffic in counterfeit goods from the U.S. Embassy in Seoul, Korea.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams of the District of Oregon and Deputy Assistant Secretary Ricardo Colón of the Department of State Diplomatic Security Service made the announcement.
Gene Leroy Thompson Jr., 53, and Guojiao “Becky” Zhang, 39, were indicted by a grand jury in Eugene, Oregon, and charged with conspiracy and trafficking in counterfeit goods. According to the indictment and other court documents, from September 2017 through December 2019, Thompson Jr. and Zhang allegedly sold counterfeit Vera Bradley handbags from e-commerce accounts to persons throughout the United States.
Thompson Jr. is employed by the U.S. Department of State as an Information Programs Officer at the U.S. Embassy in Seoul, Korea. Thompson Jr. used his State Department computer to create numerous accounts on a variety of e-commerce platforms, all from within a secure space within the Embassy designed to protect classified information. Once Thompson Jr. created these accounts, Zhang took primary responsibility for operating the accounts, communicating with customers, and procuring merchandise to be stored in the District of Oregon. Thompson Jr. and Zhang also directed a co-conspirator in the District of Oregon to ship items to purchasers across the United States.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
The Diplomatic Security Service Office of Special Investigations investigated the case with assistance from the U.S. Postal Inspection Service. Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Amy Potter of the District of Oregon are prosecuting the case.
U.S. v. Thompson et. al. IndictmentState Department Employee and Spouse Indicted for Trafficking in Counterfeit Goods from U.S. EmbassyRead the Press Release
A U.S. Department of State employee and his spouse were arrested today for their role in an international conspiracy to traffic in counterfeit goods from the U.S. Embassy in Seoul, Korea.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams of the District of Oregon and Deputy Assistant Secretary Ricardo Colón of the Department of State Diplomatic Security Service made the announcement.
Gene Leroy Thompson Jr., 53, and Guojiao “Becky” Zhang, 39, were indicted by a grand jury in Eugene, Oregon, and charged with conspiracy and trafficking in counterfeit goods. According to the indictment and other court documents, from September 2017 through December 2019, Thompson Jr. and Zhang allegedly sold counterfeit Vera Bradley handbags from e-commerce accounts to persons throughout the United States.
Thompson Jr. is employed by the U.S. Department of State as an Information Programs Officer at the U.S. Embassy in Seoul, Korea. Thompson Jr. used his State Department computer to create numerous accounts on a variety of e-commerce platforms, all from within a secure space within the Embassy designed to protect classified information. Once Thompson Jr. created these accounts, Zhang took primary responsibility for operating the accounts, communicating with customers, and procuring merchandise to be stored in the District of Oregon. Thompson Jr. and Zhang also directed a co-conspirator in the District of Oregon to ship items to purchasers across the United States.
An indictment is merely an accusation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Diplomatic Security Service Office of Special Investigations investigated the case with assistance from the U.S. Postal Inspection Service. The Criminal Division’s Office of International Affairs provided assistance. Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Amy Potter of the District of Oregon are prosecuting the case.
St. Louis Man Pleads Guilty to Selling Drugs that Killed 19-year-old Chesterfield WomanRead the Press Release
St Louis – Gary Scott Hancock, 30, of St. Louis, Missouri, entered a guilty plea to one count of Distribution of a Controlled Substance Resulting in Death before the Honorable Ronnie L. White today. Hancock is scheduled to appear for sentencing on March 25, 2020.
According to court documents, 19-year-old T.G. was found unresponsive in a relative’s home in Chesterfield, Missouri on October 13, 2018. She was pronounced deceased, and a subsequent post-mortem examination revealed that she died as a result of acute fentanyl intoxication. An examination of T.G.’s phone and text messages revealed that on the evening of October 12, 2018, T.G. had exchanged text messages with a person who identified himself as “Scott.” “Scott” agreed to sell T.G. “5 beans” of “raw fenny [ ] mixed [ ] with some sort of cut” for $20. “Scott” texted T.G. that she would have to meet him at his home, and he provided her his street address in the 4300 block of Delor. Between the time of the messages and her death, evidence placed T.G. in the area of the 4300 block of Delor.
Hancock was arrested in February 2019 after he was located at his home in the 4300 block of Delor. During a video recorded interview, Hancock admitted that he had communicated with T.G. on the night of October 12, 2018, and that he typically went by his middle name, Scott. Hancock confirmed that he agreed to sell T.G. “5 beans” of fentanyl on October 12, 2018 and that T.G. had come to his residence and made the purchase.
Hancock now faces a 20-year mandatory minimum federal prison sentence. “Every individual has a clear choice when it comes to the poison that is fentanyl. Pick it up or put it down. We want you to put it down. If you do, you save your life and the lives of others. Sadly, that didn’t happen here. And when it doesn’t, you will be prosecuted federally and serve significant prison time in a facility far from the Saint Louis area,” said United States Attorney Jeff Jensen following today’s guilty plea.
The case was investigated by the Chesterfield Police Department, assisted by the Drug Enforcement Administration.
St. John, Indiana Man Pleads Guilty to Securities FraudRead the Press Release
HAMMOND- Richard E. Gearhart, 69, of St. John, Indiana has tendered his plea of guilty to conspiracy to commit securities fraud, announced U.S. Attorney Kirsch.
“Fraud schemes targeting the elderly, among the most vulnerable of victims, are particularly egregious crimes,” said US Attorney Thomas L. Kirsch, II. “My Office and our law enforcement partners are committed to prosecuting white collar crimes like those committed in this case.”
According to court documents, between in or about January 2008 and continuing through in or about March 2013, Gearhart, the owner of Asset Preservation Specialists, Inc., along with his co-conspirator, knowingly, willfully, and intentionally engaged in a securities fraud scheme in which he and his co-conspirator sold securities to more than 25 investor victims through false statements, misrepresentations, and omissions of material facts. Gearhart’s actions resulted in misleading the investor victims into purchasing securities from him and his co-conspirator whereby the victims’ investments were used for the personal benefit of Gearhart and his co-conspirator including funding businesses they owned without disclosing this information to the investor victims. In Gearhart’s plea agreement, he agreed to serve 5 years in prison and pay restitution to all victims impacted by the fraud, subject to the approval of the court. The sentencing date will be determined by the court at a later date. George R. McKown is scheduled to proceed to trial on January 27, 2020.
The case was the result of an investigation by the U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the Indiana Secretary of State, Securities Division and is being prosecuted by Assistant United States Attorney Toi Denise Houston.
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South Texas woman sent to prison for trafficking minor femaleRead the Press Release
CORPUS CHRISTI, Texas – A 57-year-old Brownsville woman has been ordered to federal prison following her conviction of sex trafficking of a 10-year-old girl, announced U.S. Attorney Ryan K. Patrick.
Maria Candelaria Losoya pleaded guilty Aug. 1, 2017, in Corpus Christi federal court.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Losoya to serve the mandatory minimum of 15 years in federal prison. At the hearing, the court heard a statement from the minor victim and her guardian detailing the impact the crime had on the victim’s life. In handing down the sentence, Judge Ramos noted that Losoya provided valuable testimony at the trial of co-defendant David Keith Wills. Losoya will also be ordered to pay restitution to the victim and will serve five years of supervised release following completion of her prison term, during which time she will have to comply with numerous requirements designed to restrict her access to children and the internet. She will also be ordered to register as a sex offender.
At the time of her plea, Losoya admitted she was responsible for the continued sexual assault of a then 10-year-old victim which began in Brownsville in 2012. Later, she traveled with the victim so that the assault could continue. She further admitted she did so in exchange for money.
Wills, a 67-year-old businessman previously from Rockport and South Padre Island, went to trial in October. The federal jury convicted the aquaculture company owner following the 10-day-trial.
The jury heard that from 2012 to 2015, Losoya conspired with Wills to traffic the minor female for sex until the victim reported it in April 2015. Losoya and Wills used their cell phones to arrange meetings at several different locations where Wills would sexually assault the girl. These included Wills and Losoya’s respective residences as well as hotels and motels in the greater Corpus Christi area.
The jury heard testimony from Losoya and others that Wills promised to provide financial support if he was allowed to sexually assault the young girl. Wills also reimbursed Losoya for gifts to the victim and expenditures she would otherwise not have been able to afford. These included an iPad, Bose headphones, a flatscreen TV, Apple laptop, trampoline, swimming pool and a school trip to Washington D.C.
Losoya was allowed to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The court has not yet set a sentencing date for Wills. At that time, he faces up life in prison.
Immigration and Customs Enforcement’s Homeland Security Investigations, Brownsville Police Department and the Texas Rangers conducted the investigation.
Assistant U.S. Attorneys Zahra Jivani Fenelon, Richard Bennett and Stephanie Bauman prosecuted the case, which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
South Carolina Resident Pleads Guilty to Conspiracy and Health Care FraudRead the Press Release
PITTSBURGH, Pa. – A resident of Fort Mill, South Carolina, pleaded guilty in federal court to one count each of conspiracy to defraud the Pennsylvania Medicaid program and health care fraud, United States Attorney Scott W. Brady announced today.
Tia Collins, 44, pleaded guilty before United States District Judge Cathy Bissoon.
During her plea hearing, Tia Collins admitted that between 2011 and 2017 she was affiliated with Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), and Everyday People Staffing, Inc. (EPS)—three related entities operating in the home health care industry. MCI, ADL, and a fourth company, Coordination Care, Inc. (CCI), were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients ("consumers"), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Between in and around January 2011 and in and around April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for these services, with PAS payments accounting for more than $80,000,000 of the total amount.
During that time, Collins admitted that she participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims. As part of the conspiracy, Collins admitted that she fabricated timesheets to reflect the provision of in-home PAS care that, in fact, she never provided to consumers. Collins also admitted that she caused the submission of Medicaid claims in the name of a "ghost" employee for PAS care that was never provided to the consumers specified on the claims. Collins also paid or caused other individuals to pay certain consumers cash kickbacks in exchange for the consumers’ participation in the fraudulent arrangement. Likewise, Collins admitted that she paid additional kickbacks to consumers out of the proceeds of fraudulent transportation reimbursements Collins caused Medicaid to disburse on behalf of the consumers. In total, Collins admitted causing losses to the Pennsylvania Medicaid program in excess of $150,000.
Judge Bissoon scheduled Collins's sentencing for 2:15 p.m. on April 9, 2020.
The conspiracy and health care fraud charges each carry a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
To date, a total of sixteen defendants have been charged in connection with this investigation. Collins is the eighth defendant to enter a guilty plea. The remaining defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorneys Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
Seven Indianapolis Defendants Indicted in Federal Court on Gun and Drug ChargesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Walter Mays, 29, Lapre Apple, 22, Mickey Shipp, 35, David Bateman, 38,Christopher Allen, 27, Rodney Freeman, 36, all of Indianapolis, and Devonte Davis, 25, of Carlisle, Ind. were indicted by a grand jury on charges of illegal possession of firearms and/or drug-trafficking related charges.
“The U.S. Attorney’s Office will utilize all tools, available through the Project Guardian initiative, in its fight to reduce violent crime, and enforce federal gun laws,” said Minkler. “If you choose to illegally possess firearms to commit violent crimes, you will be prosecuted federally, and you will be prosecuted to the full extent of the law.”
Walter Mays was indicted on charges of possession with intent to distribute cocaine, heroin, oxycodone, and marijuana. Mays was previously arrested by way of complaint following a November 25, 2019 traffic stop initiated for speeding. Upon approach of the vehicle, officers smelled marijuana emanating from the vehicle. Investigators asked Mays to step out of the vehicle and detained him. During a pat down of Mays, officers found narcotics and $3,058 on Mays’s person. Mays has previous felony convictions for resisting arrest, possession of a narcotic drug, dealing salvia, two for dealing marijuana, and three for dealing hash oil.
Lapre Apple was indicted on charges of possession with intent to distribute cocaine, possession of a firearm within 1000 feet of a school zone, and carrying a firearm during and in relation to a drug-trafficking crime. Apple was previously arrested by way of complaint following a December 3, 2019 traffic stop initiated for changing lanes without using a turn signal and speeding in a school zone. Upon approach of the vehicle, officers smelled marijuana emanating from the car. A passenger and Apple were removed from the vehicle. Officers removed a firearm from Apple’s waistband. Officers recovered a small quantity of marijuana, cocaine and $6,955. Apple has a prior arrest for possession of 200-600 ecstasy pills and possession of a high capacity magazine and Category II weapons out of Illinois.
According to Assistant United States Attorney Abhishek Kambli, who is prosecuting Mays and Apple for the government, defendants each face up to 20 years in prison, if convicted.
Mickey Shipp was indicted on two counts for unlawful possession of a firearm by a convicted felon. Shipp was previously convicted in Marion County, Ind. for felony charges of theft.
Devonte Davis was indicted on charges of unlawful possession of a firearm by a convicted felon. Davis was previously convicted in Marion County, Ind. for felony charges of criminal recklessness and resisting law enforcement, aggravated battery and battery resulting in serious bodily injury. Davis was also previously charged by way of complaint following an October 1, 2019 traffic stop. Federal agents traveling in the same area as Davis had witnessed suspicious activity and requested assistance from IMPD. The license plate number of the vehicle Davis was traveling in was provided to IMPD and it was determined that the registered owner of the vehicle did not have a valid driver’s license. The passengers were uncooperative with the officer during the traffic stop and provided false names. The officer asked the occupants to exit the vehicle. When Davis exited the vehicle, he pulled a handgun from his waistband and tossed it on the floorboard. Davis told officers that he knew he wasn’t supposed to possess firearms due to his previous felony conviction. Davis was previously convicted in Marion County, Ind. for criminal recklessness, resisting law enforcement, possession of cocaine, aggravated battery, and battery resulting in serious bodily injury.
According to Assistant United States Attorney Lawrence D. Hilton, who is prosecuting Shipp and Davis for the government, defendants each face up to 10 years in prison, if convicted.
David Bateman was indicted on charges of unlawful possession of a firearm by a convicted felon. Bateman was previously convicted in Marion County, Ind. for felony charges of strangulation and battery with moderate bodily injury.
Christopher Allen was indicted on charges of unlawful possession of a firearm by a convicted felon. Allen was previously convicted in Marion County, Ind. for felony charges of unlawful possession of a firearm by a serious violent felon and maintaining a common nuisance-controlled substances.
According to Assistant United States Attorney Jeremy A. Morris, who is prosecuting Bateman and Allen, defendants each face up to 10 years in prison, if convicted.
Rodney Freeman was indicted on two counts of being a felon in possession of a firearm. Freeman was previously convicted in Marion County, Ind. in three separate causes for felony charges of possession of a narcotic drug. Freeman also has three previous operating a vehicle while intoxicated felonies.
According to Assistant United States Attorney William L. McCoskey, who is prosecuting Freeman for the government, defendant faces up to 10 years in prison, if convicted.
These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the following Project Guardian partners: CGIC, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indianapolis Metropolitan Police Department.
For more information about Project Guardian, please see https://www.justice.gov/ag/project-guardian-memo-2019/download.
These arrests were made possible by the joint efforts of the Crime Gun Intelligence Center (CGIC), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Indianapolis Metropolitan Police Department (IMPD).
“The Indianapolis Crime Gun Intelligence Center proves that by combining our resources and information we can make a greater impact in our community,” said Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with IMPD to make Indianapolis safer for all of us.”
“The Indianapolis Crime Gun Intelligence Center was established to focus the efforts of partner law enforcement agencies on the small number of individuals perpetrating violence in our neighborhoods,” said IMPD Chief Bryan Roach. “Leveraging technology, we are better able to connect incidents of violence with perpetrators, the firearms they use, and the sources of their crime guns. And we will continue to focus on identifying these violent individuals, removing them from our community, and working with our federal law enforcement partners to hold them accountable.”
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to targeting the District’s most violent geographic areas for the adoption of reactive federal drug and firearm prosecutions. This office will also continue to prosecute organizations and individuals distributing methamphetamine, cocaine, marijuana, and other controlled substances. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 2.2 and 3.3.
Seattle Barrel and Cooperage Company and owner indicted for ten-year water pollution schemeRead the Press Release
Seattle – A federal grand jury in Seattle has returned a 36-count indictment charging Seattle Barrel and Cooperage Company, its owner, LOUIE SANFT, and its plant manager, JOHN SANFT, with a ten-year scheme to illegally dump caustic waste into the King County sewer system, which ultimately empties into Puget Sound. The company allegedly used a hidden drain and lied to regulators to carry out their illegal dumping. The defendants are scheduled to appear in U.S. District Court in Seattle on the indictment on January 9, 2020.
“At a time when we are searching for strategies to protect Puget Sound and improve water quality for fish and wildlife, we need companies to do their share – not scheme for ways to pollute in private,” said U. S. Attorney Brian T. Moran. “I commend the investigators of the Environmental Protection Agency who investigated this assault on our natural resources.”
SEATTLE BARREL’s business involves collecting used industrial and commercial drums and reconditioning and reselling them. Part of the reconditioning process involves washing the barrels in a highly-corrosive chemical solution. The caustic solution has a very high pH level. According to the indictment, since at least 2009, SEATTLE BARREL has operated under a discharge permit that prohibits it from dumping effluent with a pH exceeding 12 to the sewer system. Effluent above pH 12 will corrode the sewer system and treatment plant, and potentially cause pass-through pollution to the Duwamish Waterway and Puget Sound.
In 2013, King County conducted covert monitoring of SEATTLE BARREL, and discovered the company was illegally dumping effluent with a pH above 12 in violation of its permit. King County fined the company $55,250, but later agreed to reduce the fine when SEATTLE BARREL installed a pretreatment system for its wastewater. Beginning in 2016, LOUIE SANFT represented to King County in written monthly certifications that the company had become a “zero discharge” facility and was not discharging any industrial wastewater to the sewer.
In fact, in 2018 and 2019 additional covert monitoring by the EPA inspectors revealed that SEATTLE BARREL was continuing to routinely dump wastewater with a pH above 12 into the sewer system. EPA agents obtained a warrant to search Seattle Barrel. Agents then installed real-time monitoring equipment that allowed them to determine when the dumping was taking place.
Early on the morning of March 8, 2019, the covert monitors indicated SEATTLE BARREL was dumping high-pH material into the sewer. Agents then executed the warrant and entered the building. Inside, they discovered a portable pump on the floor near the tank of caustic solution. They then discovered that the pump was being used to pump solution to a nearby hidden drain that had never been disclosed to King County. The drain led directly to the sewer system.
“Our nation’s environmental laws are designed to protect our communities and natural resources from hazardous pollutants, said Special Agent in Charge Jeanne Proctor of EPA’s criminal investigation program in Washington. “This indictment demonstrates that companies that intentionally violate those laws will be held responsible for their crimes.”Defendants LOUIE SANFT, 53, of Seattle is the owner and operator of SEATTLE BARREL. JOHN SANFT, 51, of Issaquah, WA, is the plant manager. The two defendants are cousins. The defendants are charged with criminal conspiracy and 29 counts of violating the Clean Water Act for discharges in 2018 and 2019. The men and the company are also charged with four counts of submitting false Clean Water Act Certifications. Each defendant is also charged making false statements to special agents of the EPA.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Conspiracy is punishable by up to five years in prison. Violation of the Clean Water Act is punishable by up to three years in prison per count. Making a false statement is punishable by up to five years in prison.
The case is being investigated by the Environmental Protection Agency Criminal Investigation Division (EPA-CID). The case is being prosecuted by Assistant United States Attorney Seth Wilkinson and Special Assistant United States Attorney Karla Perrin, an attorney with the Environmental Protection Agency.
seattle_barrel_indictment.pdfSampson County Man Sentenced for Assaulting a Postal WorkerRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DAVID CHRISTOPHER STUART, 33, of Clinton to 130 months imprisonment, followed by 5 years of supervised release.
STUART was named in an Indictment filed on November 7, 2018, charging him with assault on a person in custody of mail matter, money or other property of the United States while using a dangerous weapon. On June 4, 2019, STUART pled guilty to that charge.
According to the investigation, on June 6, 2018, a United States Postal Service employee, was working alone in the Turkey, North Carolina, Post Office when a male wearing a mask, STUART, jumped over the counter, and demanded money. The postal worker opened the drawer and handed STUART the money from the tray. STUART then followed the victim to the safe in the back of the Post Office, where he ordered her to open the additional drawers. When no other funds were located, STUART took the postal worker’s cellular phone and told her to stand in the corner as he fled out from the Post Office.
The postal worker went to the Post Office lobby after STUART fled the Post Office, observed STUART fleeing the scene and then called 911 from the office phone. STUART was subsequently arrested on June 7, 2018. The United States Postal Inspection Service along with the Sampson County Sheriff’s Office subsequently interviewed STUART and after waiving his Miranda rights, he admitted that he had robbed the Post Office in Turkey.
The United States Postal Inspection Service along with the Sampson County Sheriff’s Office conducted the investigation. Assistant United States Attorney Daniel William Smith represented the government.
Salt Lake Man Convicted of Importing, Selling Devices to Convert Semi-Automatic Handguns to Machine GunsRead the Press Release
SALT LAKE CITY – A federal jury convicted Gary Mark Hill, age 42, of Salt Lake City of unlawfully engaging in the business of importing and dealing machine guns and illegal possession and transfer of machine guns Wednesday afternoon following a four-day trial in U.S. District Court in Salt Lake City.
The jury deliberated less than two hours before returning the verdict.
A two-count indictment returned in May charged Hill with knowingly engaging in the business of importing and dealing in firearms – specifically machine gun conversion devices for Glock handguns without having paid a special occupational tax required and without having registered, both required under federal law.
The indictment alleged that from about February 2017 through March 2017, Hill knowingly possessed and transferred the machine gun conversion devices to others. The machine gun conversion devices, known as Glock auto switches, are machine guns under federal law because they are parts designed solely and exclusively for the purpose of converting a semi-automatic handgun into a machine gun.
“The defendant purchased machine guns at bargain prices from China, and knowingly sold them on Utah’s street corners at a steep markup,” U.S. Attorney John W. Huber said today. “In this day and age, there are few transactions more dangerous than an anonymous and unregulated exchange of cash for machine guns. This intentional conduct showed a reckless disregard for our safety at its best, and certainly exposed Utah to risks that the community should not have to bear. The jury had little difficulty in holding the defendant accountable.”
Evidence at trial showed that Hill, a former investment banker, sold multiple illegal machine gun conversion devices for Glock handguns to three undercover ATF agents on February 27, 2017, March 1, 2017, and March 8, 2017. During the execution of a search warrant, agents found five additional machine gun conversion devices in his residence and six conversion devices in his car.
U.S. District Court Judge Dale A. Kimball set sentencing in the case for March 5, 2020. Hill faces up to 10 years in federal prison for each of the two counts of conviction. Hill will remain out of custody and subject to supervision on conditions of release pending sentencing.
Assistant U.S. Attorneys in Salt Lake City prosecuted the case. The ATF investigated the case.
Rocky Mount Tax Preparer Sentenced to Three YearsRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge Louise W. Flanagan sentenced Moses whitaker, age 44, of Rocky Mount, North Carolina to 36 months imprisonment, followed by one year of supervised release and ordered him to pay $167,285 in restitution to the Internal Revenue Service.
WHITAKER was named in a Criminal Information filed on April 2, 2019 charging him with willfully aiding and assisting in the preparation and filing of a false US individual income tax return. On May 3, 2019, WHITAKER pled guilty to that charge.
According to the investigation, WHITAKER owned and operated a tax preparation business in Rocky Mount for the tax years 2010 through 2014 under the names M&S Tax Service and MIX Tax Service. Unable to obtain the necessary preparer tax identification and electronic filing identification numbers from the IRS due to his criminal record, WHITAKER obtained these numbers using the names and personal information of other individuals. During these years, WHITAKER electronically filed approximately 2,023 returns with the IRS.
Even after the IRS executed a search warrant at the business on April 15, 2015, WHITAKER applied for and obtained these required numbers in the name of a relative and continued to prepare and file false income tax returns for his clients. For the 2015 to 2018 tax years, WHITAKER electronically filed another 1,361 returns with the IRS.
The returns contained various false information to include false dependents, inflated tax withholdings, education credits, and unreimbursed business expenses. The Government estimated, based only on the inflated tax withholdings, WHITAKER’s conduct had resulted in approximately a $2.8 million loss to the IRS. WHITAKER also filed false returns in his own name.
IRS Criminal Investigation conducted the investigation in this matter. Assistant United States Attorney Susan B. Menzer represented the government.
Rochester Woman Sentenced for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Bonnie Hughes, 35, of Rochester, NY, who was convicted of production of child pornography, was sentenced to serve 25 years in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that prior to March 19, 2018, the defendant’s friend, John Kohlmeier, was having sexually explicit conversations with a 10-year female known to the defendant. On March 19, 2018, Hughes, at Kohlmeier’s request, took two sexually explicit photographs of the minor and sent them to Kohlmeier’s cell phone. Kohlmeier then went to the defendant’s residence where Hughes permitted the 10-year minor to engage in sexual conduct with Kohlmeier. The sexual contact between the minor and Kohlmeier occurred on several occasions beginning in February 2018.John Kohlmeier was previously convicted and also sentenced to serve 25 years in prison. Both defendants were also previously convicted in New York State Court.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Greece Police Department, under the direction of Chief Patrick D. Phelan; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
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Raleigh Man Sentenced to 20 Years in Roanoke Rapids Bank RobberyRead the Press Release
RALEIGH - United States Attorney Robert J. Higdon, Jr. announced that United States District Judge James C. Dever, III, sentenced DANNIE SIMON PARKER, JR., 49, of Raleigh, North Carolina, to 240 months’ imprisonment.
On December 28, 2017, PARKER entered the PNC Bank in Roanoke Rapids, North Carolina. Utilizing a handwritten demand note, PARKER, who was unarmed, stole $1,975 from the bank before fleeing. He was caught a short time later on I-95 South, after police blocked traffic in order to apprehend him. In the passenger seat of the car PARKER was driving were the funds from the robbery, as well as the demand note, and various other incriminating items. PARKER has two prior convictions for federal bank robbery, and was on federal supervised release at the time of the robbery.
After a two-day jury trial in April, PARKER was found guilty of bank robbery. PARKER received 240 months’ imprisonment—the statutory maximum.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Federal Bureau of Investigation, Roanoke Rapids Police Department, and the Halifax County Sheriff’s Office conducted investigation of this case. Assistant United States Attorneys Donald R. Pender and Melissa B. Kessler handled the prosecution of this case for the government.
Raleigh Blood Gang Member Sentenced for Illegally Possessing a FirearmRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today, United States District Judge Louise W. Flanagan sentenced Mohammed hakim upchurch, 25, of Raleigh to 60 months’ imprisonment, followed by 3 years of supervised release.
UPCHURCH was named in a Criminal Information filed on July 24, 2019, charging him with Possession of a Firearm by a Felon. On July 24, 2019, UPCHURCH pled guilty to that charge.
According to the investigation, On October 6, 2018, an officer with the Raleigh Police Department was patrolling the area of the Birchwood Apartments at the request of the property manager, who wanted trespassing laws enforced due to violent crime and illegal drug activity that frequently occurred in and around the apartment complex. During patrol, the officer observed UPCHURCH, walking between two apartment buildings. The officer knew that UPCHURCH did not reside in the apartment complex and that UPCHURCH was on state probation. Additionally, the apartment complex had “No Trespassing” signs posted. The officer observed UPCHURCH standing alone on a porch. As the officer approached, UPCHURCH picked up his belongings and tried to walk away. The officer advised UPCHURCH that he was trespassing. UPCHURCH stated that he was knocking on a friend’s door, but they would not answer. As the officer attempted to detain him, UPCHURCH tried to walk away. The officer then grabbed his arm, as UPCHURCH pulled way and tried to enter the apartment. The officer and UPCHURCH struggled as UPCHURCH continued attempts to escape until an additional officer arrived, and he was finally placed in handcuffs. A search of UPCHURCH incident to arrest found a .380 caliber handgun and six bullets in the magazine.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department conducted the investigation. Assistant United States Attorney Daniel W. Smith represented the government.
Pittsburgh Woman Sentenced to Prison for Illegally Possessing 2 Handguns, a Rifle and AmmoRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to two years’ (24 months’) imprisonment and two years of supervised release on her conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Latisha Butler, age 29.
According to information presented to the court, on or about May 14, 2018, Butler, an individual with a prior felony conviction for Possession with the Intent to Distribute Controlled Substances, knowingly and unlawfully possessed a Smith & Wesson Model M&P-15 Rifle, a Smith & Wesson, Model SD9VE handgun, a Diamondback Model DB9 Handgun, and various types of ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Department of Homeland Security, United States Postal Inspection Service, the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Butler.
Pittsburgh Man Sentenced to More than a Decade in Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH – Jamiek Moore, 23, formerly of Pittsburgh, Pennsylvania, was sentenced on Monday to 130 months’ imprisonment (10 years and 10 months) on his convictions for violating the federal narcotics and firearms and firearms laws, United States Attorney Scott W, Brady announced today. Following a two-day non-jury trial that concluded in March 2019, Jamiek Moore was convicted of conspiracy to distribute heroin, possession with intent to distribute heroin, possession with intent to distribute marijuana, and two counts of possessing firearms in furtherance of a drug trafficking crime.
According to Assistant U.S. Attorney Jerome A. Moschetta, who prosecuted the case, the evidence presented at trial established that on or about June 8, 2017, Moore conspired with others, including co-defendant Jaimere Dehonney, to distribute and possess with intent to distribute a quantity of heroin, and that Moore possessed firearms on that day in furtherance of a drug trafficking crime. The government’s evidence largely consisted of items seized by law enforcement pursuant to search warrants from a residence and vehicle utilized by Moore, his co-defendant Dehonney, and others, located at a residence on Yosemite Drive in Penn Hills, Allegheny County. That evidence consisted of quantities of heroin, large quantities of heroin packaging materials, approximately $28,000 in U.S. Currency, and two loaded firearms. The government further established that on May 15, 2017, at a residence located on Rhine Court in Pittsburgh, Moore possessed quantities of marijuana and heroin with the intent to distribute them, and that he possessed two loaded firearms that day in furtherance of a drug trafficking crime.
On December 16, 2019, United States District Judge Reggie B. Walton sentenced Moore to five-year terms of imprisonment on the firearms offenses, which were ordered to run consecutively to one another pursuant to federal law for a total sentence of 10 years’ (120 months’) imprisonment for those crimes. Additionally, Judge Walton sentenced Moore to an additional 10 months of imprisonment for the narcotics violations, also to run consecutively to the sentence for the firearms offenses, pursuant to federal law, for a total sentence of 130 months’ imprisonment. Upon Moore’s release from incarceration, he will be supervised by the United States Probation Department for a term of five years.
U.S. Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Bureau of Police and the Penn Hills Police Department for the investigation leading to the successful prosecutio
Paris, Tennessee Resident Sentenced to 15 Years for Federal Drug Trafficking and Firearms OffensesRead the Press Release
Jackson, TN – John Adam Hoskins, 35, of Paris was sentenced to 188 months imprisonment for possession with intent to distribute and attempt to possess with intent to distribute actual methamphetamine. Hoskins was also sentenced as a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, Hoskins and a passenger were stopped for a traffic violation. Hoskins immediately told the officer that there was a firearm in the vehicle. Officers recovered a Smith and Wesson, .38 caliber revolver loaded with 5 rounds. A K-9 drug dog was utilized and alerted to the presence of narcotics in a backpack behind the driver’s seat. The backpack contained several glass pipes, a set of digital scales, $30,520 in cash, 44 Xanax pills, and 29 alprazolam pills. During the search of the vehicle, officers also found 4.55 grams of methamphetamine at 98% purity.
On December 18, 2019, Senior U.S. District Court Judge J. Daniel Breen sentenced Hoskins to 188 months imprisonment followed by three years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Recidivist armed drug dealers pose a significant public safety risk to our communities, and must be punished and incapacitated in a meaningful way. Individuals who distribute harmful drugs into our rural communities can no longer hide. We are proud to work with our local law enforcement partners in Paris to use significant federal laws and sentencing to remove this dangerous offender from the streets, and we will continue to do so to reduce the threat of addiction, injury, violence, and death across West Tennessee."
This case was investigated by the Paris Police Department.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Operator of Long Beach Medical Clinic Sentenced to More Than 3 Years in Federal Prison for Selling Prescriptions for Powerful OpioidsRead the Press Release
LOS ANGELES – A Venice man was sentenced today to 39 months in federal prison for his conviction on federal charges of illegally distributing prescription opioids.
James Wilson, 56, was sentenced by United States District Judge Terry J. Hatter Jr.
At the conclusion of a bench trial in March, Judge Hatter found Wilson guilty of two counts of illegally distributing oxycodone. The evidence presented at trial showed that Wilson, during two different transactions in early 2016, sold a total of four prescriptions to an undercover operative working with the Drug Enforcement Administration. Each of the four prescriptions were for 120 30-milligram oxycodone pills, which is the maximum strength of the opioid sold through pharmacies.
Wilson, who is neither a doctor nor a pharmacist, owned and operated what prosecutors called a “sham medical clinic.” The illegal prescription sales took place in the parking lot of Wilson’s clinic, where he charged $200 for each of the illegal prescriptions.
Wilson was arrested in this case in August 2017, at which time investigators found 160 blank prescriptions in his vehicle.
Wilson’s “scheme involved the diversion of oxycodone, a powerful and deadly opioid at the center of the nation’s opioid crisis,” prosecutors wrote in a sentencing memorandum.
This case was investigated by the DEA and was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
This matter was prosecuted by Assistant United States Attorneys Marina A. Torres and Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section.
Okmulgee Man Sentenced to 46 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ethan Cole Endres, age 28, of Okmulgee, Oklahoma, was sentenced to 46 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Okmulgee County Sheriff’s Office, the Federal Bureau of Investigation Safe Trails Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on April 11, 2019, in the Eastern District of Oklahoma, the defendant, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, knowingly possessed in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “This case is another success story resulting from agencies working together to maximize their efforts to reduce violent crime. Enforcing federal firearms laws against those who have a track record of lawlessness gives the federal law enforcement community the opportunity to work with local agencies as they work to keep their communities safe. We value and appreciate the strong working relationships the local, state, tribal, and federal law enforcement agencies have in the Eastern District.”
The Oklahoma Safe Trails Task Force is comprised of the FBI and nine partner agencies including: Muscogee Creek Nation Lighthorse Police, Okmulgee Police Department, Okmulgee Sheriff’s Office, Oklahoma Bureau of Narcotics, District 25 District Attorney’s Investigators, Cherokee Nation Police, Tahlequah Police Department, and Wagoner Police Department. The task force is focused on combating and reducing crime related to tribal jurisdictions across Oklahoma.
This case is consistent with the principles of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence. A key principle of Project Guardian is enhancing coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes to ensure that federal resources are directed at the criminals posing the greatest threat to our communities. For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.Oklahoma City Man Sentenced to 190 Months for Charges Regarding Firearm Possession in Furtherance of A Drug Trafficking CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Winford Lamont Henley, age 45, of Oklahoma City, Oklahoma, was sentenced to 60 months’ imprisonment and 4 years of supervised release for Possession Of Firearm In Furtherance Of Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c) and to 130 months imprisonment for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e)(2). The sentence on each count will be served consecutively. The charges arose from an investigation by the Eufaula Police Department and the Federal Bureau of Investigation.
The Indictment alleged that on or about February 12, 2019, in the Eastern District of Oklahoma, the defendant knowingly possessed a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States. The Indictment further alleged the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Combatting violent crime, specifically violent crime involving firearms, is a priority for the Department of Justice. By enforcing federal firearms laws against those who have violent felony convictions and thus have demonstrated their violent and lawless tendencies, we are decreasing the number of firearms in the wrong hands in the communities we serve. This investigation and prosecution allowed us to do just that.”
This case is consistent with the principles of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence. A key principle of Project Guardian is enhancing coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes to ensure that federal resources are directed at the criminals posing the greatest threat to our communities. For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
Ohio woman sentenced for using juvenile to sell methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Alicia J. Evans, of Akron, Ohio, was sentenced today to 57 months incarceration for a drug distribution charge, U.S. Attorney Bill Powell announced.
Alicia J. Evans, age 31, pled guilty to one count of “Using a Juvenile to Distribute Methamphetamine” in October 2019. Evans admitted to using a minor to sell methamphetamine in August 2018 in Marshall County.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Ohio County man admits to methamphetamine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Benjamin John Woodring, of Wheeling, West Virginia, has admitted to drug distribution, U.S. Attorney Bill Powell announced.
Woodring, age 24, pled guilty to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location.” Woodring admitted to selling methamphetamine near Luau Manor in Ohio County in March 2019.
Woodring faces at least one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the cases on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.