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Thursday 29 August 2019
Lodi Man Sentenced to 7 Years for Posting Child Pornography in Internet ChatroomRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Matthew Bulovsky, 25, Lodi, Wisconsin, was sentenced today by U.S. District Judge James Peterson to seven years in prison for distributing child pornography. This term of imprisonment is to be followed by 10 years of supervised release. Bulovsky pleaded guilty to this offense on May 15, 2019.
During the course of a child exploitation investigation, law enforcement officers determined that Bulovsky had posted numerous images and videos depicting children engaged in sexually explicit conduct into an internet chatroom.
At the time of the offense in this case, Bulovsky was out on bond in a state case that included allegations that he possessed child pornography. In sentencing the defendant, Judge Peterson noted that Bulovsky was a danger to the public because his compulsion to use child pornography was well engrained.
The charge against Bulovsky was the result of an investigation conducted by the FBI’s Child Exploitation and Human Trafficking Task Force, consisting of the Milwaukee Police Department, Milwaukee County Sheriff’s Department, Sheboygan County Sheriff’s Department, and West Allis Police Department; the Wisconsin Department of Justice Division of Criminal Investigation; and the Dane County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Lincoln Man Sentenced for Possession with Intent to Distribute Methamphetamine and MarijuanaRead the Press Release
United States Attorney Joe Kelly announced that Herbert B. Kinchen, 40, of Lincoln, was sentenced today to 21 years and 10 months, (262 months), in federal prison by Senior United States District Judge Richard G. Kopf for possession with intent to distribute 500 grams or more of methamphetamine mixture and unspecified amounts of marijuana and cocaine. Following the prison term, Kinchen will serve five years on supervised release.
On June 13, 2018, the Lincoln/Lancaster County Drug Task Force executed a search warrant at Kinchen’s Lincoln residence. During the search, officers found approximately 2 ½ pounds of methamphetamine, 2 ½ pounds of marijuana and suspected cocaine along with a loaded revolver and $3,000 in cash. Kinchen and his co-defendant, Vanessa D. Pinkney, were contacted by officers as they approached the residence while the search was being conducted. Kinchen claimed ownership of all the drugs in the residence.
Pinkney was sentenced in April of 2019 to 10 years in prison.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Levittown Man Sentenced for Trafficking Protected TurtlesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that David Sommers, 64, of Levittown, PA was sentenced to six months’ imprisonment, three years’ supervised release including six months’ home detention, and $250,000 restitution by United States District Judge Anita B. Brody for trafficking protected turtles.
From November 2011 until October 2017, the defendant poached thousands of protected diamondback terrapins and their eggs from coastal marshes in New Jersey and illegally sold the turtles. A grand jury indicted Sommers on July 10, 2018 for his criminal conduct involving the sale, export, and false-labeling of packages containing protected diamondback terrapins. On February 4, 2019, Sommers pleaded guilty to false-labeling of packages containing protected diamondback terrapins.
During the sentencing hearing, the government offered evidence that the total market value of the defendant’s sales figures and inventory of poached wildlife was worth well over $550,000.
“The defendant had a simple business plan: poach protected turtles and their eggs from their natural habitat, advertise them for sale online and then illegally ship them to customers by concealing the actual contents of the packages,” said U.S. Attorney McSwain. “Sommers represented himself as a legitimate reptile breeder, when he was in fact endangering the lives of these animals and breaking the law. Thanks to our partners at the New Jersey Division of Fish and Wildlife and the United States Postal Inspection Service, this defendant will be held responsible for his actions.”
“Sommers used a sham business to shamelessly mask an illegal trade in threatened and protected species,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “The Justice Department and our law enforcement partners will safeguard our nation’s natural resources and biodiversity and prosecute wildlife traffickers to the fullest extent of the law.”
Diamondback terrapins (Malaclemys terrapin) are a semi-aquatic species of turtle native to brackish waters in eastern and southern United States. They are not found in the wild in Pennsylvania, where Sommers resided, but have a dwindling habitat range in neighboring New Jersey. The terrapins are prized in the reptile pet trade for their unique, diamond-shaped shell markings. The turtles are protected under New Jersey law and by an international treaty, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
The United States, Canada, and approximately 181 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Due to declining populations, CITES listed the diamondback terrapin as threatened in 2013, and New Jersey banned collecting, possessing, and transporting them in 2016.
This case was investigated by the United States Fish and Wildlife Service with assistance from the New Jersey Division of Fish and Wildlife. It is being prosecuted by Assistant United States Attorney Joan E. Burnes and trial attorney Ryan Connors of the Justice Department’s Environmental Crimes Section.
Largest Federal Heroin and Fentanyl-Laced Seizure in Delaware HistoryRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, unsealed two criminal complaints today charging two men with drug trafficking offenses in Delaware. Both men are detained pending further proceedings.
According to statements at the press conference and court documents, Julian Rivera-Villa, age 56, and Ricardo Perez-Guillen, age 40, of Gloucester City, New Jersey were charged in federal court in Wilmington last week in connection with sales of fentanyl-laced fake Oxycodone pills in Delaware. Perez-Guillen was arrested after selling a kilogram of heroin and 600 fake Oxycodone pills containing fentanyl in New Castle, Delaware. Rivera-Villa was arrested outside the residence he shared with Perez-Guillen in Gloucester City, New Jersey. A subsequent search of that residence yielded approximately 7 additional kilograms of heroin; 3 kilograms of cocaine; 14,000 fake Oxycodone pills that tested positive for the presence of fentanyl and over $28,000 in cash. Law enforcement also seized another 2 kilograms of heroin from a car registered to Perez-Guillen. Those kilograms of heroin were hidden in traps located behind the car’s rear seats.
The arrests and drug seizures are the result of a long-term investigation into fentanyl and heroin trafficking in Delaware by the Drug Enforcement Administration’s (“DEA”) Wilmington Resident Office Tactical Diversion Squad and High Intensity Drug Trafficking Area (“HIDTA”) Group 41. The estimated street value of the seized drugs is in excess of $1 million.
U.S. Attorney Weiss noted that this was the largest federal seizure of heroin and fake Oxycodone pills by Delaware law enforcement in recent memory, stating: “Thousands of fentanyl-laced pills and over 1.4 million doses of heroin have been taken out of the hands of those who would seek to profit from illegally distributing these poisons to our communities. Fake Oxycodone pills such as those seized here are especially dangerous, because the pills actually contain fentanyl, a dangerous—and potentially deadly—synthetic opioid.”
Both Rivera-Villa and Perez-Guillen are charged with distribution of fentanyl and face a maximum of 20 years in prison and a $1,000,000 fine. 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.
The DEA’s Tactical Diversion Squad and HIDTA Group 41 are comprised of investigators from Middletown Police Department, Newark Police Department, New Castle County Police Department, Delaware Alcohol & Tobacco Enforcement, Delaware State Police, Maryland State Police, Wilmington Police Department, Delaware Probation and Parole, Newport Police Department, and the University of Delaware Police Department. The case is being prosecuted by Assistant United States Attorney Alexander Ibrahim.
The DEA and the U.S. Attorney’s Office for the District of Delaware also wish to thank Homeland Security Investigations, Immigrations & Customs Enforcement, Camden, New Jersey DEA-HIDTA, and the Camden County Sherriff’s SERT team for their assistance.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case Nos 19-MJ-231 and 19-MJ-232.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Lafayette Man Charged in Criminal ComplaintRead the Press Release
HAMMOND- Geoffrey Martin, 37, of Lafayette, Indiana, was charged in a criminal complaint with distribution of methamphetamine and with possession with intent to distribute methamphetamine within 1,000 feet of an elementary school, announced U.S. Attorney Kirsch.
The criminal complaint alleges that Martin distributed approximately 7 grams of methamphetamine in Rensselaer on August 20, 2019. On August 28, 2019, law enforcement executed a search warrant on his Lafayette residence and recovered an additional 129 gross grams of methamphetamine from a vehicle in the driveway of Martin’s residence, which is located less than 1,000 feet from Vinton Elementary School.
U.S. Attorney Kirsch said, “Illegal drug use damages communities of all sizes. Joint operations and partnerships with our Federal, State and Local law enforcement agencies to investigate and prosecute those who promote these illegal activities will continue."
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Drug Enforcement Administration, Lafayette Drug Task Force, Jasper County Drug Task Force, and White County Drug Task Force. This case is being prosecuted by Assistant United States Attorney Nicholas J. Padilla.
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Kirkwood Man Sentenced to 12 years for Possession of Child PornographyRead the Press Release
St. Louis, MO – Christopher Helm, 30, of Kirkwood, MO, was sentenced to 12 years in federal prison and lifetime supervised release for Possession of Child Pornography. Helm appeared before United States District Judge Ronnie L. White.
According to court documents, officers of the Kirkwood Police Department searched Helm’s apartment after learning he had been arrested in St. Clair, Missouri for statutory rape. Helm’s electronics revealed over 9000 images of child pornography.
Helm pled on May 22, 2019 to one count of possession of child pornography. Helm also pled in St. Clair County Court, Missouri on March 5, 2018 for the same conduct and was sentenced to a total of eight years in state prison. Both sentences will run concurrent.
The Kirkwood Police Department, the Federal Bureau of Investigation and the Regional Computer Crimes Education and Enforcement Group investigated the case. Assistant U.S. Attorney Colleen Lang is handling the case for the U.S. Attorney’s Office.
Julio Najera Receives 12 Years in Federal PrisonRead the Press Release
WILMINGTON — United States Attorney Robert J. Higdon, Jr. announced that in federal court, Chief United States District Judge Terrence Boyle sentenced JULIO NAJERA, 25, of Sampson County to 144 months’ imprisonment, followed by 5 years of supervised release.
A federal grand jury sitting in the Eastern District of North Carolina returned a three-count Indictment against NAJERA on December 12, 2018, charging him with conspiracy to distribute and possess with the intent to distribute fifty grams or more of methamphetamine, distribution of fifty grams or more of methamphetamine and possession with intent to distribute fifty grams or more of methamphetamine. NAJERA pled guilty to all three counts on April 10, 2019.
On the morning of November 9, 2017, law enforcement officials with the Sampson County Sheriff’s Office conducted a controlled purchase of approximately 57 grams of crystal methamphetamine from NAJERA at NAJERA’s residence in Sampson County. Later that morning, law enforcement executed a search warrant of NAJERA’s residence. During the course of the search, law enforcement found an additional 283 grams of crystal methamphetamine, drug paraphernalia and $3,979 in U.S. Currency from the earlier controlled purchase.
This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This case is part of a Drug Enforcement Administration (DEA) OCDETF operation “Fall of the House of Usher” with cooperation from the Sampson County Sheriff’s Office and Duplin County Sheriff’s Office. This investigation is focused on a drug trafficking organization operating in the Sampson and Duplin County areas of North Carolina.
This case is also part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. 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 investigation of this case was conducted by the DEA, Sampson County Sheriff’s Office and Duplin County Sheriff’s Office. Special Assistant United States Attorney Murphy Averitt prosecuted the case on behalf of the government.
Judge Sentences Federal Inmate to 15 More Months in Prison for Possessing Prescription DrugsRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa. pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to 15 months in prison, consecutive to the current prison term he is serving out of the Middle District of North Carolina, and three years’ supervised release, United States Attorney Scott W. Brady announced today.
Bryan Wade Smith, 29, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on October 3, 2018, Smith possessed a quantity of Buprenorphine.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Smith.
Iranian Businessman Pleads Guilty to Conspiracy to Violate U.S. Sanctions by Exporting Carbon Fiber from the United States to IranRead the Press Release
Behzad Pourghannad pleaded guilty today to participating in a conspiracy to export carbon fiber from the United States to Iran between 2008 and 2013.
“Pourghannad was in Iran while he worked to obtain carbon fiber from the United States contrary to U.S. law,” said Assistant Attorney General John C. Demers for National Security. “He may have believed he was out of U.S. law enforcement’s reach, but thanks in part to assistance from the German government, which extradited him, this case is now another example of the Department’s ability to hold Iran’s illicit procurement agents accountable, regardless of where they work.”
Manhattan U.S. Attorney Geoffrey S. Berman said: “Behzad Pourghannad has now admitted that he conspired to circumvent repeatedly U.S. export controls on carbon fiber, a substance with numerous military and aerospace applications. Together with the FBI, the Commerce Department, and all of our law enforcement partners, we will continue to protect our national security.”
According to the allegations contained in the indictment and statements made at Pourghannad’s guilty plea:
Between 2008 and July 2013, Pourghannad and his two codefendants, Ali Reza Shokri and Farzin Faridmanesh lived and worked in Iran. During that period, they worked together to obtain carbon fiber from the United States and surreptitiously export it to Iran via third countries. In particular, Shokri worked to procure many tons of carbon fiber from the United States; Pourghannad agreed to serve as the financial guarantor for large carbon fiber transactions; and Faridmanesh agreed to serve as the trans-shipper. Carbon fiber has a wide variety of uses, including in missiles, aerospace engineering and gas centrifuges that enrich uranium.
In or about late 2007 and early 2008, Shokri and a Turkey-based co-conspirator (CC-2) successfully arranged for the illegal export and transshipment of carbon fiber from the United States to an Iranian company associated with Shokri (Iranian Company-1). Specifically, CC-2 contacted a United States supplier of carbon fiber, who in turn enlisted a third individual (Individual-1) for assistance with the transaction. Through Individual-1, CC-2 purchased carbon fiber from the United States supplier and arranged for the shipment of the carbon fiber from the United States, through Europe and Dubai, United Arab Emirates, to Iranian Company-1, operated by Shokri, in Iran.
In or about May 2009, Pourghannad and Shokri attempted to arrange another illegal purchase and transshipment of carbon fiber from the United States to Iran. Specifically, Individual-1 returned a signed contract to Pourghannad for Shokri’s purchase of a large quantity of carbon fiber. Individual-1 then purchased the carbon fiber from a United States supplier and arranged for the carbon fiber to be exported from the United States to a third country (Country-1), en route to Iran. Country-1 authorities, however, interdicted the carbon fiber shipment before it could be trans-shipped to Iran.
In or about 2013, Pourghannad, Shokri, and Faridmanesh again attempted to illegally procure and export carbon fiber from the United States to Iran. In the 2013 transaction, Shokri and Pourghannad negotiated with Individual-1 for the purchase and trans-shipment to Iran of more than five tons of carbon fiber. Faridmanesh and Pourghannad further agreed with Individual-1 that the carbon fiber would be trans-shipped from the United States to Iran through Tbilisi, Georgia, with Faridmanesh to serve as the trans-shipper. Faridmanesh specifically instructed Individual-1 to change the shipping labels on the carbon fiber to reference “acrylic” or “polyester,” rather than “carbon fiber.” Pourghannad provided Individual-1 with the bank guarantee that was to serve as surety for a portion of the carbon fiber. In or about June 2013, Individual-1 informed Pourghannad , Shokri and Faridmanesh that the carbon fiber would soon be shipped from New York, New York, and that Individual-1 would replace the carbon fiber labels with shipping labels referencing “acrylic” to evade U.S. export controls.
No one involved in these transactions obtained permission from the U.S. Department of Treasury, Office of Foreign Assets Control, to export the carbon fiber from the United States.
Pourghannad , 65, who is an Iranian citizen, pled guilty to one count of conspiracy to violate the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison. He will be sentenced by Judge Briccetti on Dec. 13, 2019.
Shokri and Faridmanesh remain at liberty.
Assistant Attorney General Demers and U.S. Attorney Berman praised the outstanding investigative work of the FBI and the U.S. Department of Commerce, and thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, the U.S. Marshals Service, Homeland Security Investigations and Immigration and Customs Enforcement for their assistance. The Office of International Affairs of the Justice Department’s Criminal Division provided significant support with the defendant’s extradition.
This case is being handled by the Office’s Terrorism and International Narcotics Unit, with assistance from the Counterintelligence and Export Control Section of the National Security Division. Assistant United States Attorney Gillian Grossman is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and Shokri and Faridmanesh are presumed innocent unless and until proven guilty.
Iranian Businessman Pleads Guilty to Conspiracy to Violate U.S. Sanctions by Exporting Carbon Fiber from the United States to IranRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, the Assistant Attorney General for National Security, announced that BEHZAD POURGHANNAD pled guilty today to participating in a conspiracy to export carbon fiber from the United States to Iran between 2008 and 2013.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Behzad Pourghannad has now admitted that he conspired to circumvent repeatedly U.S. export controls on carbon fiber, a substance with numerous military and aerospace applications. Together with the FBI, the Commerce Department, and all of our law enforcement partners, we will continue to protect our national security.”
Assistant Attorney General John C. Demers said: “Pourghannad was in Iran while he worked to obtain carbon fiber from the United States contrary to U.S. law. He may have believed he was out of U.S. law enforcement’s reach, but thanks in part to assistance from the German government, which extradited him, this case is now another example of the Department’s ability to hold Iran’s illicit procurement agents accountable, regardless of where they work.”
According to the allegations contained in the Indictment and statements made at POURGHANNAD’s guilty plea[1]:
Between 2008 and July 2013, POURGHANNAD and his two codefendants, Ali Reza Shokri and Farzin Faridmanesh, lived and worked in Iran. During that period, they worked together to obtain carbon fiber from the United States and surreptitiously export it to Iran via third countries. In particular, Shokri worked to procure many tons of carbon fiber from the United States; POURGHANNAD agreed to serve as the financial guarantor for large carbon fiber transactions; and Faridmanesh agreed to serve as the trans-shipper. Carbon fiber has a wide variety of uses, including in missiles, aerospace engineering, and gas centrifuges that enrich uranium.
In or about late 2007 and early 2008, Shokri and a Turkey-based co-conspirator (“CC-2”) successfully arranged for the illegal export and transshipment of carbon fiber from the United States to an Iranian company associated with Shokri (“Iranian Company-1”). Specifically, CC-2 contacted a United States supplier of carbon fiber, who in turn enlisted a third individual (“Individual-1”) for assistance with the transaction. Through Individual-1, CC-2 purchased carbon fiber from the United States supplier and arranged for the shipment of the carbon fiber from the United States, through Europe and Dubai, United Arab Emirates, to Iranian Company-1, operated by Shokri, in Iran.
In or about May 2009, POURGHANNAD and Shokri attempted to arrange another illegal purchase and transshipment of carbon fiber from the United States to Iran. Specifically, Individual-1 returned a signed contract to POURGHANNAD for Shokri’s purchase of a large quantity of carbon fiber. Individual-1 then purchased the carbon fiber from a United States supplier and arranged for the carbon fiber to be exported from the United States to a third country (“Country-1”), en route to Iran. Country-1 authorities, however, interdicted the carbon fiber shipment before it could be trans-shipped to Iran.
In or about 2013, POURGHANNAD, Shokri, and Faridmanesh again attempted to illegally procure and export carbon fiber from the United States to Iran. In the 2013 transaction, Shokri and POURGHANNAD negotiated with Individual-1 for the purchase and trans-shipment to Iran of more than five tons of carbon fiber. Faridmanesh and POURGHANNAD further agreed with Individual-1 that the carbon fiber would be trans-shipped from the United States to Iran through Tbilisi, Georgia, with Faridmanesh to serve as the trans-shipper. Faridmanesh specifically instructed Individual-1 to change the shipping labels on the carbon fiber to reference “acrylic” or “polyester,” rather than “carbon fiber.” POURGHANNAD provided Individual-1 with the bank guarantee that was to serve as surety for a portion of the carbon fiber. In or about June 2013, Individual-1 informed POURGHANNAD, Shokri, and Faridmanesh that the carbon fiber would soon be shipped from New York, New York, and that Individual-1 would replace the carbon fiber labels with shipping labels referencing “acrylic” to evade U.S. export controls.
No one involved in these transactions obtained permission from the U.S. Department of Treasury, Office of Foreign Assets Control, to export the carbon fiber from the United States.
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POURGHANNAD, 65, who is an Iranian citizen, pled guilty to one count of conspiracy to violate the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison. He will be sentenced by Judge Briccetti on December 13, 2019.
Shokri and Faridmanesh remain at liberty.
Mr. Berman praised the outstanding investigative work of the FBI and the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office. Mr. Berman also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, the U.S. Marshals Service, Homeland Security Investigations, and Immigration and Customs Enforcement for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit, with assistance from the Counterintelligence and Export Control Section of the National Security Division. Assistant United States Attorney Gillian Grossman is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and Shokri and Faridmanesh are presumed innocent unless and until proven guilty.
[1] The descriptions set forth below of conduct by co-defendants Ali Reza Shokri and Farzin Faridmanesh, constitute only allegations, and every fact described should be treated as an allegation with respect to Shokri and Faridmanesh.
Illegal possession of gun sends Billings man to prisonRead the Press Release
BILLINGS—Jermaine David Richardson, a Billings resident who admitted possessing a semi-automatic pistol while having been convicted of a felony, was sentenced today to four years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Richardson, 25, pleaded guilty in April to being a felon in possession of a firearm.
U.S District Judge Susan P. Watters presided.
Evidence presented by the prosecution in court records said that in January 2018, a Billings Police Department detective received a video showing Richardson with what appeared to be a black pistol in his hand while in the hallway of a Billings hotel. Richardson refers to the pistol as a Hi-Point. Five months later, police officers saw a stolen vehicle parked in front of Richardson’s residence and were aware that Richardson was prohibited from possessing a firearm because of a felony conviction in Illinois. Police officers ultimately executed a search warrant on Richardson’s residence and seized a .45-caliber semi-automatic Hi-Point pistol from his bedroom.
Assistant U.S. Attorney Brendan McCarthy prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which is 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.
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Honduran Man Sentenced to Prison for Illegally Reentering the United States After Being Deported in 2017Read the Press Release
A man who illegally returned to the United States after being deported was sentenced today to eight months in federal prison.
Cesar Hernandez-Lopez, age 29, a citizen of Honduras illegally present in the United States and residing in Muscatine, Iowa, received the prison term after a May 24, 2019, guilty plea to one count of illegal reentry into the United States after having been convicted of an aggravated felony.
At the guilty plea, Hernandez-Lopez admitted he had previously been deported from the United States in May 2017 and illegally reentered the United States without the permission of the United States government. Hernandez-Lopez was found by immigration agents in April 2019 at a traffic stop in Cedar County, Iowa.
Hernandez-Lopez was deported after being convicted in September 2016 of possession of a firearm by an illegal alien, an aggravated felony, in the United States District Court for the Southern District of Mississippi. In that case, law enforcement officers found a loaded handgun during the execution of a search warrant under the mattress in Hernandez-Lopez’s bedroom.
Hernandez-Lopez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hernandez-Lopez was sentenced to eight months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Lopez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-39.
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Haverhill Man Sentenced to 63 Months for Heroin TraffickingRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Samuel F. Baez, 37, of Haverhill, Massachusetts was sentenced to 63 months in federal prison for distributing heroin and possessing heroin with intent to distribute.
According to court documents and statements made in court, between January 10, 2016 and May 6, 2016, an undercover New Hampshire State Police Trooper made five controlled purchases of heroin from Baez at retail stores in Plaistow, New Hampshire. The defendant brought a young child with him to at least two of the transactions. When the New Hampshire State Police arrested Baez on June 29, 2016, he was in possession of a distributable amount of heroin. In total, investigators obtained approximately 100 grams of heroin from Baez during the investigation.
Baez previously pleaded guilty on July 2, 2018.
“Interstate drug trafficking makes lethal substances available for purchase on the streets of New Hampshire,” said U.S. Attorney Murray. “This trade has had a devastating impact on the health and safety of our citizens. In order to protect the public, we will continue to work closely with the New Hampshire State Police and all of our law enforcement partners to identify, arrest, and incarcerate those who bring heroin and other deadly drugs into the Granite State.”
This matter was investigated by the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Jennifer Davis.
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German National Charged with Traveling to United States to Engage in Illicit Sexual Conduct with A MinorRead the Press Release
OAKLAND– Adam Soboll has been charged with traveling to the United States with the intent to engage in illicit sexual conduct with a minor, announced United States Attorney David L. Anderson and U.S. Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Tatum King. Soboll was arrested in Brentwood, Calif., on August 25, 2019, and charged by complaint on August 28, 2019.
According to the complaint, Soboll, 31, of Germany, identified himself as a fifth grade teacher in Germany. The complaint alleges Soboll met the then-14-year-old minor online in October 2018, and communicated with the minor from Germany using Snapchat and online gaming platforms, as well as over other messaging applications.
In January 2019, Soboll began discussing the possibility of visiting the minor in Brentwood, Calif. Soboll and the minor discussed where he should stay in the area and the various forms of sexual conduct in which they would engage when he arrived.
On July 31, 2019, Soboll traveled from Europe to the United States. Soboll stayed at a hotel in Brentwood, Calif. Soboll engaged in sexual conduct with the minor at the hotel. On August 25, 2019, police responded to the hotel following a report from the minor’s mother and arrested Soboll.
Soboll is charged with traveling with the intent to engage in illicit sexual conduct, in violation of 18 U.S.C. § 2423(b).
A complaint merely alleges that crimes have been committed, and all defendants, including Soboll, are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum statutory sentence of 30 years. Further, additional terms of supervised release, fines, and restitution may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Defendant made an initial federal court appearance this morning before the Honorable Donna M. Ryu, U.S. Magistrate Judge. Magistrate Judge Ryu ordered the defendant detained pending further proceedings. His next court appearance is scheduled for September 4, 2019, before the Honorable Kandis A. Westmore, U.S. Magistrate Judge, for a detention hearing.
The case is being prosecuted by Assistant U.S. Attorney Samantha Schott. The case is being investigated by HSI, the Contra Costa District Attorney’s Office, and the Brentwood Police Department.
Georgia Woman Sentenced to 14 Years for Trafficking Large Amounts of Methamphetamine into the Middle District of FloridaRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Barbara Caylor-Hernandez (48, Dalton, Georgia) to 14 years in federal prison for conspiring to possess with the intent to distribute methamphetamine.
Caylor-Hernandez had pleaded guilty on January 9, 2019.
According to court documents, in April 2017, the FBI, and later the DEA, started an investigation into the drug trafficking organizations (DTO) that supplied motorcycle clubs operating in the Middle District of Florida with distribution amounts of methamphetamine. To date, 21 individuals have either pleaded or been found guilty as a result of the joint investigation.
As a result of this investigation, law enforcement learned that Caylor-Hernandez was one of the leaders of a DTO that was distributing kilogram amounts of methamphetamine from Georgia to other DTOs and individuals located in central Florida. Members of the Caylor-Hernandez DTO transported methamphetamine from Georgia to various cities in central Florida, including St. Augustine, Holly Hill, and Daytona Beach, for further distribution.
As part of the conspiracy, one of the members of the Caylor-Hernandez DTO distributed methamphetamine to members of the Pagans and Thunderguard Motorcycle Gangs. Georgia Highway Patrol troopers arrested Caylor-Hernandez on May 9, 2018, after she was found in a vehicle with approximately 3.8 kilograms of methamphetamine.
This case was investigated by the FBI, the DEA, the Volusia Bureau of Investigation, the Volusia County Sheriff’s Office, and the Daytona Beach Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
Georgia Man Pleads Guilty to Heroin TraffickingRead the Press Release
Gulfport, Miss. – Eric Estudillo-Carrazco, 28, of Norcross, Georgia, pled guilty yesterday before U.S. District Judge Sul Ozerden to conspiracy to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl and 5 kilograms or more of cocaine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On November 6, 2018, Estudillo-Carrazco and two co-defendants arrived in Gulfport to sell heroin to a confidential informant. They claimed to have ten kilograms of heroin hidden in a compartment of their vehicle. All three were arrested shortly thereafter. The substance was eventually tested and found to contain nine kilograms of heroin and one kilogram of fentanyl.
That amount of fentanyl is enough to kill half a million people.
Estudillo-Carrazco will be sentenced by Judge Ozerden on November 27, 2019, and faces a maximum penalty of life in prison and a $10,000,000 fine.
Co-defendant Pablo Vega-Ontanon pled guilty and will be sentenced on September 23, 2019. He faces a maximum penalty of life in prison and a $10,000,000 fine.
Co-defendant Eder Ortega-Cassarubias pled guilty and was sentenced by Judge Ozerden on June 26, 2019, to 127 months in prison followed by five years of supervised release.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Fort Wayne Woman Sentenced to 156 Months in PrisonRead the Press Release
FORT WAYNE- Bronte Milton, 27, of Fort Wayne, Indiana was sentenced by U.S. District Court Chief Judge Theresa Springmann after pleading guilty to possession with intent to distribute methamphetamine, fentanyl, and crack cocaine along with possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Thomas L. Kirsch II.
Milton was sentenced to a total of 156 months in prison followed by 4 years of supervised release.
According to documents in this case, Milton was dealing drugs and operating a drug distribution house in Fort Wayne from October of 2017 through March of 2018. In March of 2018, law enforcement officers served a search warrant at her drug house and located several loaded firearms and distribution quantities of fentanyl, methamphetamine, and crack cocaine.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department and the Indiana State Police. This case was handled by Assistant United States Attorneys Stacey R. Speith and Anthony Geller.
Fort Wayne Man Sentenced to 168 Months in PrisonRead the Press Release
FORT WAYNE- Joshua Ferguson, 34, of Fort Wayne, Indiana was sentenced by U.S. District Court Judge Holly Brady after pleading guilty to maintaining a drug-involved premises and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Thomas L. Kirsch II.
Ferguson was sentenced to 168 months in prison, followed by 2 years of supervised release.
According to documents filed in this case, in June of 2018, a search warrant was sought and executed for his residence based on an investigation which revealed Ferguson dealing methamphetamine and possessing illegal firearms. Ferguson was not home at the time of the search but his vehicle was later located and stopped by police. During the stop, law enforcement recovered methamphetamine and marijuana as well a digital scale and plastic baggies that are commonly used to package narcotics. A handgun was also found in the vehicle which Ferguson admitted he had for protection during drug dealing.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Indiana State Police and Fort Wayne Police Department. This case was handled by Assistant United States Attorney Anthony Geller.
Fort Dodge Man Sentenced to Federal Prison for Meth and Gun ConvictionRead the Press Release
A man who conspired to distribute methamphetamine and possessed firearms illegally was sentenced August 23, 2019, to more than 17 years in federal prison.
Tate Owen Steburg, 48, from Fort Dodge, Iowa, received the prison term after a March 6, 2019, guilty plea to conspiracy to distribute methamphetamine and illegally possessing a firearm. Steburg had previously been convicted of two felony drug trafficking convictions in the Iowa District Court.
At the plea hearing, Steburg admitted that from about 2017 through February 2018, he was involved in a conspiracy that distributed more than 11 pounds of methamphetamine in the Fort Dodge area. Evidence at the plea hearing also showed that in two separate transactions in January 2018, Steburg sold about four ounces of methamphetamine; and on another occasion sold a firearm to an individual cooperating with law enforcement. It was later determined that the firearm had been stolen in a Calhoun County, Iowa, burglary/arson case.
Steburg was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Steburg was sentenced to 208 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system. Steburg is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Iowa State Patrol and Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3013. Follow us on Twitter @USAO_NDIA.
Fort Dodge Man Convicted of Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was convicted by a jury today after a three-day trial in federal court in Sioux City.
Timothy Wunder, age 44, from Fort Dodge, Iowa, was convicted of conspiracy to distribute methamphetamine. The verdict was returned this morning following about 3 hours of jury deliberations. Wunder was previously convicted of conspiracy to manufacture and distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking, in the United States District Court for the Northern District of Iowa, in 2002.
The evidence at trial showed that from about February 2017 through March 2018, Wunder and others conspired to distribute more than 50 grams of actual (pure) methamphetamine. A number of witnesses testified at trial as to their involvement in obtaining methamphetamine from Wunder for personal use as well as further distribution. Also evidence at trial showed that during the time period for the conspiracy, Wunder sold small quantities of methamphetamine to several workers at Liguria Foods in Humboldt, Iowa, where Wunder worked.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Wunder remains in custody of the United States Marshal pending sentencing. Wunder faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Wright County Sheriff’s Office, Humboldt County Sheriff’s Office, Fort Dodge Police Department, Eagle Grove Police Department, and Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3026. Follow us on Twitter @USAO_NDIA.
Former St. Tammany Parish Sheriff Jack Strain Charged in 16-Count Indictment for Kickback and Bribery Scheme Involving Contract for Privatization of Work Release Program in St. Tammany ParishRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RODNEY J. STRAIN (a/k/a Jack Strain), age 56, from Abita Springs, Louisiana, was charged today by a federal grand jury in a 16-count Indictment with conspiracy to commit honest services wire fraud, soliciting a bribe, and offering a bribe in violation of 18 U.S.C. ' 371 (Count 1), honest services wire fraud, in violation of Title 18, United States Code, Sections 1343, 1346, 2 (Counts 2-13), and soliciting and receiving bribes, in violation of Title 18, United States Code, Section 666(a)(1)(B) (Counts 14-16) for his role in the privatization and operation of a work release program that operated in Slidell, Louisiana between 2013 and 2016.
According to court documents, STRAIN, who was the Sheriff of St. Tammany Parish from about 1996 to 2016, discussed with his two close associates and St. Tammany Parish Sheriff’s Office employees, David Hanson and Clifford “Skip” Keen, about Hanson and Keen becoming owners of a work release program in Slidell, Louisiana that STRAIN had decided to privatize. Because STPSO rules prohibited employees from “participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity,” Hanson and Keen would have had to resign from STPSO if they wanted to assume ownership and control of the Slidell work release program. Consequently, STRAIN, Hanson, and Keen discussed ways to allow Hanson and Keen to maintain their employment and still profit from the Slidell work release program. Ultimately, STRAIN, Hanson and Keen agreed to make Keen’s adult son (J.K.) and Hanson’s adult daughter (B.H.) owners of the Slidell work release program, with the understanding that J.K. and B.H. would funnel much of the profits to Hanson and Keen. Hanson and Keen agreed to give regular payoffs to STRAIN and his selected family members from the funds they received. This understanding was based partly on STRAIN having previously required Keen to kickback to STRAIN half of the money Keen earned from a previous work release program.
STRAIN, Hanson, and Keen agreed that they needed to find another individual to actually operate the Slidell work release program because J.K. and B.H. lacked the education, training, experience, and funding to do so. They decided on an individual referred to in the indictment as “Person 2,” to whom Hanson presented a series of conditions. They mandated that J.K. and B.H. would each own forty-five (45) percent of the Slidell work release program and would each receive forty-five (45) percent of the profits, while Person 2 would only own ten (10) percent, receive ten (10) percent of the profits, and receive a salary. Person 2 would be responsible operating the Slidell work release program and for providing the capital necessary to initiate the program. On or about May 1, 2013, J.K., B.H., and Person 2 entered into an operating agreement that created St. Tammany Workforce Solutions, LLC, in which J.K. and B.H. each had a forty-five percent ownership interest and Person 2 had only a ten percent ownership interest.
On June 4, 2013, STRAIN entered into a cooperative endeavor agreement (“privatization agreement”) on behalf of STPSO with St. Tammany Workforce Solutions, LLC, a corporation designed to operate the Slidell work release program. Although J.K. and B.H. were merely straw owners who neither operated, oversaw, or administered the Slidell work release program, Person 2 was required to pay J.K. and B.H. salaries in addition to their ownership disbursements. Person 2 was also directed to pay a younger relative of STRAIN’s, referred to in the indictment as “Person 3,” who was also an employee at STPSO, approximately $30,000 per year for a no-show job at the Slidell work release program.
During the time St. Tammany Workforce Solutions, LLC operated the Slidell work release program, J.K. and B.H. received at least $1,195,000 from St. Tammany Workforce Solutions, LLC in the form of ownership disbursements, salary payments, and occasional lump sum miscellaneous payments. J.K. and B.H. converted the majority of the money they received from St. Tammany Workforce Solutions, LLC to cash, much of which they transferred to their fathers, Keen and Hanson.
Additionally, STRAIN, Hanson, and Keen understood that STRAIN would receive payoffs from Hanson and Keen in exchange for STRAIN’s conferring the right to operate the Slidell work release program on St. Tammany Workforce Solutions, LLC. The payoffs took multiple forms. First, through B.H. and J.K, Hanson and Keen, each gave STRAIN regular cash payments of at least approximately $1,000 from the monies they received from St. Tammany Workforce Solutions LLC. Second, as part of the scheme, Hanson arranged for STRAIN’s son, referred to as “Person 1,” to receive a check for $4,000 as a kickback. Third, with monies from St. Tammany Workforce Solutions, LLC, STRAIN received $2,500 in campaign funds. Fourth, with the knowledge and approval of STRAIN, St. Tammany Workforce Solutions reimbursed Hanson and Keen for personal costs incurred during trips and vacations, including trips they took with Strain.
STRAIN, Hanson, Keen, and others attempted to conceal the scheme by, among other things: (a) hiding Hanson’s and Keen’s involvement in and benefits from the Slidell work release program; (b) excluding from the cooperative endeavor agreement the fact that STRAIN would receive cash bribes and other financial compensation in exchange for signing the cooperative endeavor agreement; and (c) providing most of the money to STRAIN in the form of cash.
Hanson and Keen were charged for their roles in the scheme in November 2018. They pleaded guilty on February 27, 2019, and are currently awaiting sentencing before United States District Judge Ivan L.R. Lemelle.
If convicted, STRAIN faces a maximum term of imprisonment of five years for Count 1, twenty years for each of Counts 2 through 13, and ten years for each of Counts 14 through 16. He also faces, per count, a fine of up to $250,000, three years supervised release after imprisonment, and a mandatory $100 special assessment per count.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division and thanks the Metropolitan Crime Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, Supervisor of the Public Corruption Unit, and Elizabeth Privitera, Supervisor of the Violent Crime Unit, are in charge of the prosecution.
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Former Navy Petty Officer Pleads Guilty to Receipt of Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – DON EDWARD PANNELL, II (“PANNELL”), age 32, of Harvey, Louisiana, entered a plea of guilty on Tuesday, August 27, 2019 to Receipt of Child Pornography, announced United States Attorney Peter G. Strasser.
The case against Petty Officer 2nd Class DON EDWARD PANNELL, II developed because of an undercover child exploitation investigation conducted by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”). At the time of this investigation, PANNELL was a Petty Officer 2nd Class in the U.S. Navy assigned to Fleet Readiness Center Mid-Atlantic Detachment, New Orleans. On April 2, 2018, HSI special agents along with special agents with the Naval Criminal Investigative Service and the Louisiana Bureau of Investigation seized electronic evidence from PANNELL’s Harvey apartment and took PANNELL into custody. According to documents filed in federal court, HSI computer forensic examiners located over 1,000 images and 125 videos depicting the sexual victimization of children on the defendant’s homebuilt tower computer. The images and videos depicted pre-pubescent girls, including toddlers, engaged in sexual acts with adults.
PANNELL faces a mandatory minimum penalty of five (5) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine. In addition, PANNELL will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
U.S. District Judge Greg G. Guidry will sentence PANNELL on December 17, 2019.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Strasser praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, the Naval Criminal Investigative Service, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Supervisor of Financial Crimes Unit, Assistant U.S. Attorney Brian M. Klebba.
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Former NASA contractor employee convicted for substituting foreign materials for domestic materials to be used by NASARead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Jonathan Hipps (34, Warner Robins, Georgia) guilty of mail fraud, concealment of material facts from a federal agency, and providing a false document to a federal agency. Hipps faces a maximum penalty of 40 years in federal prison. His sentencing hearing is scheduled for December 4, 2019. Hipps had been indicted on January 16, 2019.
According to evidence presented at trial, Hipps was an employee at STAT Industry, Inc., a company that provided parts and materials to the aerospace industry, including NASA. In the summer of 2014, Hipps handled a contract that required STAT to provide steel rods for use in support of NASA’s Space Launch System/Orion project at Kennedy Space Center. The contract required that the steel rods originate from the United States. During the procurement, Hipps received steel rods originating from India. Instead of replacing the rods with materials from the United States, Hipps used a box cutter to cut off all of the labels from the shipment indicating that the rods were made in India, thus making them to appear that they had originated from the United States. Hipps then shipped the steel rods to the Kennedy Space Center with a certification falsely certifying that the steel rods conformed to all of NASA’s requirements.
“The NASA Office of Inspector General will continue to aggressively investigate those who undermine and defraud NASA efforts to build the SLS launch vehicle and it’s systems,” said Special Agent in Charge John Corbett, Central Field Office. “This jury verdict serves as a staunch reminder that such conduct will not be tolerated. The NASA OIG applauds the efforts of the entire investigative and prosecution team during this investigation, and we look forward to our continued cooperation with our law enforcement partners in the pursuit of justice.”
This case was investigated by the NASA Office of Inspector General and the Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Former Memphis Attorney Charged in Scheme to Defraud ClientsRead the Press Release
Memphis, TN – A federal grand jury returned an indictment against Memphis attorney Michael Constantine Skouteris, 49. U.S. Attorney D. Michael Dunavant announced today.
The seven-count indictment alleges that between 2011 and January 2016, Skouteris engaged in a scheme to defraud his clients by settling cases without notifying his clients and forging their endorsements on the settlement checks made jointly payable to him and the client. Skouteris would then deposit the checks into bank accounts he maintained at Suntrust Bank and First Tennessee Bank. According to the indictment, Skouteris fraudulently obtained in excess of $600,000 during the course of the scheme.
Skouteris faces a maximum penalty of 30 years imprisonment, a fine of $1,000,000 and five years supervised release as to each count.
U.S. Attorney D. Michael Dunavant said, "Licensed attorneys who steal from their clients betray the trust of that fiduciary relationship, and are a threat to the public. This indictment exposes that breach of trust, and will hopefully achieve justice by recovering restitution for the victims and reminding the legal community of the high standards of their profession."
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Carroll L. André III is prosecuting this case on the government’s behalf.
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Former Linn County Attorney Sentenced for Thefts of Public PropertyRead the Press Release
KANSAS CITY, KAN. – The former Linn County Attorney was sentenced today to a year and a day in prison for stealing $75,000 worth of electronics and equipment that belonged to the county, U.S. Attorney Stephen McAllister said. In addition, the defendant was ordered to pay $75,000 in restitution and a fine totaling $11,000.
John Sutherland, 69, Mound City, who served as county attorney for approximately 20 years before leaving the job in January 2017, pleaded guilty to one count of mail fraud and one count of lying to federal investigators. The crimes took place from sometime prior to January 2009 until Sutherland left office.
“The defendant abused the public trust,” McAllister said. “He used his elected position as county attorney to steal more than $75,000 from the Linn County taxpayers who had placed their trust in him as the county’s top law enforcement official. According to the U.S. Census Bureau, there were approximately 9,750 people in Linn County in 2018. The median household income was $46,576. That means the defendant stole property worth far more than most Linn County residents earn in a year.”
According to the government’s sentencing memo, the defendant had the county pay for seven cellular phones that were not used to conduct county business.
In his plea, Sutherland admitted that on Feb. 6, 2019, FBI agents found 13 items stolen from Linn County when they searched Sutherland’s office at the Wyandotte County District Attorney’s Office. At the time, Sutherland was working as an Assistant District Attorney. One of the items was a stolen Apple laptop computer.
When FBI agents interviewed him, Sutherland denied any wrongdoing and made other false statements. For instance, he claimed that an Apple TV 64 GB video-streaming device the county purchased for about $220 had been destroyed. FBI agents found the device intact at Sutherland’s residence.
In his plea agreement, Sutherland agreed to surrender his license to practice law.
McAllister commended the FBI, the Kansas Bureau of Investigation, Assistant U.S. Attorney Tris Hunt and Assistant U.S. Attorney Chris Oakley for their work on the case. McAllister assisted with the prosecution of the case.
Former Government Consultant Pleads Guilty to Bribery and Fraud SchemeRead the Press Release
WASHINGTON – John Woods, a consultant and independent contractor for a company that did business with the District of Columbia Department of Human Resources, pled guilty to charges that he paid more than $140,000 in bribes to a former D.C. government employee and that he stole payments on city contracts that should have gone to his employer.
John Woods, 57, of Sterling, Va., pleaded guilty on August 23 to one count of wire fraud in the U.S. District Court for the District of Columbia. As part of his guilty plea, Woods agreed to pay restitution to the victim in the amount of $564,910.23. The Honorable Dabney L. Friedrich scheduled sentencing for December 16, 2019.
The announcement was made by U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
According to the statement of offense submitted at the plea hearing, Woods worked as a consultant for a firm identified in the court documents as “Company A.” The firm had agreements with the District of Columbia Department of Human Resources (DCHR) to provide organizational skills training courses and human resources consulting to various D.C. government agencies. Woods was Company A’s main point of contact with DCHR and handled the submission of invoices.
According to the statement of offense, beginning in April 2013, and continuing through August 2017, Woods schemed to defraud “Company A” and the D.C. government.
As noted in the statement of offense, between April 2013 and February 2015, Woods stole $214,910 in D.C. government checks that were issued to “Company A.” Beginning in March 2015, Woods began usurping “Company A’s” role under the contracts by purposefully failing to submit Company A’s invoice to DCHR for payment. This led Company A to believe the D.C. government was negligent in paying its invoices, and Company A stopped seeking to perform work under its agreements with DCHR. Woods then secretly performed the agreements without Company A’s knowledge by hiring and retaining contractors to provide the necessary work to DCHR and by submitting fraudulent invoices to DCHR, purportedly on behalf of Company A, for payment under the agreements. DCHR would then issue payments in the form of D.C. government checks made payable to Company A, which Woods deposited into a bank account he controlled. In all, according to the statement of offense, Woods fraudulently deposited approximately 27 checks issued by the D.C. government to “Company A”, totaling approximately $1,040,023, from March 2015 through August 2017.
According to the statement of offense, in order to keep his scheme in place, Woods paid more than $140,000 in bribes to Latasha Moore, then a DCHR employee. As a resource allocation analyst for DCHR, Moore was the main point of contact for “Company A” and in a position to ensure that no complaints or suspicions about the contracts reached others in the government. For example, Moore failed to report problems that arose while Woods was managing the work, including complaints of contractors arriving late, leaving early or failing to show up at all for training.
Moore, 38, of Washington, D.C., pled guilty on Oct. 11, 2018, to a federal bribery charge. She is awaiting sentencing.
This case was investigated by the FBI’s Washington Field Office and Office of the Inspector General of the District of Columbia.
In announcing the plea, U.S. Attorney Liu commended the work of Assistant U.S. Attorney Michael Marando, who prosecuted the case.
Former Cottage Grove Police Officer Pleads Guilty to Stealing Methamphetamine from Evidence LockerRead the Press Release
EUGENE, Ore.—Phillip Allan Beach, 49, of Cottage Grove, Oregon, pleaded guilty today to one count of acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception of subterfuge.
According to court documents, in May 2015, an evidence coordinator at the Cottage Grove Police Department (CGPD) reported to their supervisor that Beach accessed the department’s evidence locker more frequently than other officers and seemed to do so for no apparent purpose. The coordinator said that Beach would repeatedly access the same evidence bag. A CGPD commander later examined the bag and observed that it was open and two plastic bags inside containing several ounces of methamphetamine crystals had been sliced open.
In June 2015, CGPD began an investigation of Beach’s conduct and placed two hidden cameras inside the evidence locker. On June 11, 2015, Beach was recorded on video entering the locker without signing the evidence log and accessing the evidence bag previously examined by the commander. The video shows Beach taking a small plastic baggie from his pants pocket and using it to take a small portion of meth from the evidence bag. Investigators later weighed the evidence bag and found a 7.3 gram reduction in weight.
Beach faces a maximum sentence of four years in prison, a $250,000 fine and one year of supervised release. He will be sentenced on November 26, 2019 before U.S. District Court Judge Michael J. McShane.
This case was investigated by the FBI, Oregon State Police and CGPD. It is being prosecuted by the U.S. Attorney’s Office – District of Oregon.
Former Controller Sentenced to Two Years in Federal Prison for Stealing over $750,000Read the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp has sentenced Jeffrey McKinney (62, Minneola) to two years in federal prison for wire fraud. McKinney was also ordered to serve two years of supervised release and to pay $828,894.25 in restitution.
McKinney had pleaded guilty on May 16, 2019.
According to court documents, McKinney is a Certified Public Accountant and was the Controller of a local business. In addition to serving as the Controller, McKinney was responsible for moving funds between various accounts held by the business and one of its executives. For more than 18 months, McKinney used his position to embezzle over $750,000 from those accounts on 12 different occasions. To cover up his thefts, McKinney falsified check stubs, moved money between accounts to hide what he had stolen, and provided the executive with reports that inflated the amount of money that remained in the executive’s accounts.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Clovis Pastor Indicted for Wire FraudRead the Press Release
FRESNO, Calif. — Sherman Smith, 73, of Monterey, was indicted today on seven counts of wire fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, Smith was the executive pastor of a church in Clovis. Smith allegedly induced investors, including church congregants, to give money to the church by representing that the money would be used to finance a real estate development project for the benefit of the church. Smith made appeals from the pulpit, via email, and in person for monies to pay off the church’s mortgage and fund an income-generating development.
Smith collected cash, checks, and rolled-over retirement accounts to fund the church’s project, but he did not disclose to investors that he used the money for personal expenses, to operate a publishing business, and to invest in foreign ventures. Smith allegedly defrauded investors of more than $2 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Smith faces a maximum statutory penalty of 20 years in prison. 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.
Former Chief Financial Officer Sentenced to Prison for Embezzling Money from Two Area BusinessesRead the Press Release
DAYTON – Sandy Green, of Fairborn, was sentenced in U.S. District Court to 48 months in prison for wire fraud as part of a scheme to defraud her previous employers.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Yvonne A. DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence imposed yesterday afternoon by U.S. District Judge Walter H. Rice.
According to court documents, Green was a bookkeeper at a Dayton business from May to November 2017. Green made fraudulent credit card returns without a corresponding legitimate purchase, causing company money to be paid into personal bank accounts belonging to Green and her family members.
Additionally, from April 2017 until March 2018, Green was the Chief Financial Officer for a second victim business in the Dayton area. Green again defrauded the company, this time transferring money from the business’s credit union into bank accounts controlled by Green and her family members. She attempted to disguise receiving the money by falsely listing other individuals and entities as the payee.
In total, Green embezzled more than $150,000 from the two companies. As part of her sentence, she was ordered to pay approximately $173,000 in restitution to the two companies.
Green pleaded guilty in August 2018 to two counts of wire fraud.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorneys Andrew J. Hunt and SaMee Harden, who are representing the United States in this case.
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Former CEO of Live Well Financial Charged in $140 Million Bond Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of MICHAEL HILD, the founder, former chief executive officer, and controlling shareholder in Live Well Financial, Inc. (“Live Well”). HILD’s arrest was in connection with a scheme, from in or about September 2015 through in or about May 2019, to fraudulently inflate the value of a portfolio of bonds owned by Live Well in order to induce various securities dealers and at least one financial institution into loaning more money to Live Well – through repurchase (“repo”) agreements and collateralized loans – than they otherwise would have had they known the actual value of Live Well’s bond portfolio. The scheme allowed Live Well to grow its bond portfolio exponentially, from approximately 20 bonds with a stated value of $50 million in 2014 to approximately 50 bonds with a stated value of $500 million by the end of 2016. In May 2019, in conjunction with an effort to wind down the company, Live Well wrote down the value of its portfolio by approximately $141 million.
In addition, Mr. Berman announced today the unsealing of charges against ERIC ROHR, the former chief financial officer at Live Well, and DARREN STUMBERGER, the former head trader at Live Well, for their participation in the scheme. Both ROHR and STUMBERGER have pled guilty and are cooperating with the Government.
HILD was arrested in Richmond, Virginia, this morning. HILD will be presented and arraigned later today in the United States District Court for the Eastern District of Virginia. HILD’s case is assigned to United States District Judge Ronnie Abrams. ROHR’s case is assigned to United States District Judge Edgardo Ramos, and STUMBERGER’s case is assigned to United States District Judge J. Paul Oetken.
On August 28, 2019, the Government obtained a post-indictment restraining order restraining assets – including various real properties and business interests in the Richmond area – owned directly or indirectly by HILD and, as alleged, purchased with proceeds of the scheme.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Michael Hild orchestrated a scheme to deceive Live Well’s lenders by fraudulently inflating the value of its mortgage-backed bonds by over $140 million. This allegedly enabled Live Well to borrow money well over the value of the collateral it put up. In turn, Hild used these ill-gotten funds to gain control of the company and increase his own compensation by nearly 700 per cent, while exposing lenders cumulatively to $65 million in unsecured loans to the company, which is now in bankruptcy.”
FBI Assistant Director William F. Sweeney Jr. said: “As CEO of Live Well Financial Inc., Hild allegedly inflated the true value of the company’s bond portfolio and used this false information to obtain loans the company otherwise would not have been able to obtain. The dealers and financial institution that lent the money are now in the possession of bonds that don’t hold the value promised as collateral. The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist.”
In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against HILD.
As alleged in the Indictment unsealed today in Manhattan federal court and other public court documents:[1]
Live Well’s Bond Portfolio and Repurchase Agreements
Live Well was a Richmond, Virginia-based company that originated, serviced, and securitized government-guaranteed reverse mortgages known as Home Equity Conversion Mortgages (“HECMs”). In or about 2014, Live Well acquired a portfolio of approximately 20 bonds, each entitling the holder to receive a portion of the interest payments, but not the principal payments, from a particular pool of reverse mortgages (“HECM IO bonds.”). Live Well purchased the HECM IO bond portfolio for approximately $50 million. At the same time that Live Well purchased the HECM IO bond portfolio, HILD established within Live Well a New York City-based trading desk to manage and grow Live Well’s bond portfolio. STUMBERGER supervised the trading desk.
Live Well financed the acquisition and growth of its bond portfolio through a series of loans in which Live Well used its bond portfolio as collateral. The majority of Live Well’s lenders were securities dealers whose lending arrangements with Live Well were structured as bond repurchase agreements, also known as “repo agreements.” A repo agreement is a short-term loan in which both parties agree to the sale and future repurchase of an asset within a specified contract period. The seller sells the asset to the lender with a promise to buy it back at a specific date and at a price that includes an interest payment. Functionally, a repo agreement is a collateralized loan in which title of the collateral is transferred to the lender. When the loan is repaid by the borrower, the collateral is returned to the borrower through a repurchase. Additionally, at least one of Live Well’s lenders was an FDIC-insured bank, and its lending arrangement with Live Well was structured as a secured loan, with certain bonds held as collateral by a third-party custodian.
The Scheme to Mismark the Bond Portfolio
Live Well’s financing agreements with all but one of the lenders required that any bond that Live Well sought to borrow against be priced by a third-party pricing source in order to determine the market value of the bond as of the measurement date. The lenders then used the value of the bond, minus 10% to 20%, generally, to determine the amount of money to lend Live Well.
The lenders generally relied on a particular widely utilized subscription service (the “Pricing Service”) to price various securities. In or about September 2014, HILD, ROHR, STUMBERGER, and their co-conspirators embarked on a scheme to cause the Pricing Service to publish valuations for the bonds that far exceeded actual market prices. By doing so, the conspirators induced the lenders to extend credit to Live Well far in excess of the prices for which the bonds could be sold in the market. The inflated prices were based on a set of market assumptions that the conspirators called “Scenario 14.”
HILD was aware that if the lenders had known that the Pricing Service was publishing bond prices that did not reflect fair value (meaning the price at which a lender could sell the bond in the market if necessary to recoup its capital), they would have refused to use those prices in determining how much money to loan to Live Well. To prevent the Pricing Service and the lenders from learning that the prices did not reflect market value, HILD directed ROHR, STUMBERGER, and others to take steps to conceal their provision of inflated marks to the Pricing Service. Ultimately, due to the asset overvaluation and the purchase of additional bonds using the capital generated by the scheme, Live Well grew the purported value of its bond portfolio to $500 million by December 2016.
In addition to using the liquidity generated by the scheme to expand Live Well’s bond portfolio, in or about September 2016, HILD used $18 million generated from the repo lenders to buy out the preferred stockholders in Live Well. The elimination of the preferred stockholders gave HILD exclusive control of the company and allowed him to substantially increase his personal compensation. Accordingly, HILD’s compensation jumped from approximately $1.4 million in 2015, to approximately $5 million in 2016, approximately $9.7 million in 2017, and over $8 million in 2018.
In or about late 2018, ROHR resigned as chief financial officer of Live Well. In or about May 2019, the company’s interim chief financial officer informed HILD that he would not sign the company’s interim financial statements because he believed that the company’s carrying value for the HECM IO bond portfolio was significantly overstated. On or about May 4, 2019, Live Well announced that it would cease operations and unwind. After the announcement of Live Well’s closing, Live Well’s interim chief financial officer provided a balance sheet to Live Well’s lenders showing that Live Well had reduced the value of its bond portfolio by approximately $141 million. As of May 31, 2019, the debt Live Well owed to its lenders on the bond portfolio exceeded the portfolio’s carrying value by approximately $65 million.
On June 10, 2019, three of Live Well’s lenders filed a Chapter 7 petition for involuntary bankruptcy against Live Well in the United States Bankruptcy Court for the District of Delaware. See In re Live Well Financial, Inc., 19-11317 (LSS). On or about July 1, 2019, the bankruptcy court appointed a trustee for Live Well.
* * *
HILD, 44, of Richmond, Virginia, is charged with five counts: one count of conspiracy to commit securities fraud; one count of conspiracy to commit wire and bank fraud; one count of securities fraud; one count of wire fraud; and one count of bank fraud. Count One carries a maximum sentence of five years in prison, Counts Two, Four, and Five each carry a maximum sentence of 30 years in prison, and Count Three carries a maximum sentence of 20 years in prison. The charges also contain a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the investigative work of the FBI and also thanked the SEC and the Department of Housing and Urban Development, Office of the Inspector General for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes and Scott Hartman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Felon Sentenced for Possessing a Stolen FirearmRead the Press Release
St. Louis, MO –Torion Caston, 29, of Ferguson, was sentenced to 36 months in prison for being a felon in possession of a firearm. He appeared before Federal District Judge John A. Ross.
According to court documents, on February 20, 2019, a Berkeley Police Officer observed Caston driving a Jeep Cherokee. Caston exited the vehicle. When he did, the officer attempted to speak to Caston. Caston then fled the scene. The officer observed a loaded Glock semi-automatic 9mm pistol on the floorboard of the Jeep. Caston later admitted he was a convicted felon and had possessed the stolen firearm.
The Berkeley Police Department investigated the case. United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Felon Pleads Guilty for Possessing a Stolen Firearm with 30 Live RoundsRead the Press Release
St. Louis, MO – Mikal Hamilton, 28, of St. Louis, MO, pleaded guilty to one felony count of felon in possession of a firearm. Hamilton appeared in federal court this afternoon before U.S. District Judge John A. Ross who accepted his plea and set his sentencing date for December 5, 2019.
According to court documents, on January 15, 2019, members of the St. Louis Metropolitan Police Department saw a vehicle driven by Hamilton commit a traffic violation. When officers tried to stop the vehicle, Hamilton sped off at a high rate of speed before crashing. Hamilton exited the vehicle and fled the scene of the accident. After being apprehended, Hamilton told police he ran because was he had a stolen firearm in the vehicle he was driving. The officers recovered a 40 caliber Glock firearm with an extended magazine loaded with 30 live rounds.
Hamilton faces a maximum sentence of ten years in prison and a fine of not more than a $250,000. He may be subject to a mandatory minimum sentence of 15 years and a maximum sentence greater than described. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The St. Louis Metropolitan Police Department investigated this case. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
Felon Found in Possession of A Stolen, Loaded Firearm Sentenced to More Than Seven Years in PrisonRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp has sentenced Marvas Aurelien (22, Orlando) to seven years and eight months in federal prison for possessing a firearm as convicted felon. Aurelien had pleaded guilty on May 22, 2019.
According to court documents, on March 14, 2019, the Orange County Sheriff’s Office Gang Enforcement Unit located and apprehended Aurelien, who was wanted on an active arrest warrant stemming from aggravated assault with a firearm. While securing Aurelien, deputies located a fully loaded FMK 9 mm semi-automatic handgun in Aurelien’s front pocket. Law enforcement later learned that the firearm had been stolen. Aurelien is a previously convicted felon and, therefore, is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the FBI and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
El Salvadorian National Indicted on Passport Fraud ChargeRead the Press Release
Boston, MA - An El Salvadorian national was indicted today in federal court on a charge of passport fraud.
Eliseo Rivas, 41, formerly of Chelsea, is alleged to have impersonated another in applying for a U.S. passport in 2016.
Rivas faces up to 10 years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit.
Department of Justice Announces Fifth Expansion of Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice is pleased to announce the fifth expansion of the Tribal Access Program (TAP), a program providing federally recognized tribes with enhanced ability to access and exchange data with the national crime information databases for both criminal justice and non-criminal justice purposes.
TAP provides federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes and provides training as well as software and biometric/biographic kiosk workstations to process finger and palm prints. TAP also gives Tribes the ability to take mugshots and submit information to FBI CJIS. By the end of 2019, TAP will be deployed to more than 70 tribes with over 300 Tribal agencies participating.
The department will accept applications from September 1 through October 31, 2019. Eligible tribes that are selected for participation will be notified in November.
“The TAP program continues to give a growing number of tribes the ability to share criminal and civil information, and the access to data that helps solve crimes and protect the public,” said Deputy Attorney General Jeffrey A. Rosen. “The TAP program is just one example of our commitment to tribal, state, and local law enforcement partnerships that strengthen public safety across the United States.”
Utilizing TAP, tribes have registered sex offenders; entered orders of protection for notice and enforcement nationwide; run criminal histories that resulted in arrests and warrants being served; entered bookings and convictions; and completed thousands of fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
For FY20, the department offers TAP services through one of the following two methods:
- TAP-LIGHT: The department provides software that provides full access (both query and entry capabilities) to national crime information databases such as National Crime Information Center (NCIC), the Interstate Identification Index (III) and the International Justice and Public Safety Network (Nlets) for both criminal and civil purposes; and
- TAP-FULL: The department provides the same basic capabilities as TAP-LIGHT listed above, and also provides an additional hardware/software solution in the form of a kiosk-workstation that provides the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification (NGI) for both criminal and civil purposes.
“The Tribal Access Program now in use by the San Pasqual Band of Mission Indians Police Department has been one of the very best investigative tools that could have been obtained by that department,” said San Pasqual Tribal Chairman Stephen W. Cope. “Investigators from the Police Department, using various systems in the TAP program, identified a drug dealer responsible for counterfeit oxycodone/fentanyl pills that caused the death of a tribal member. That dealer was surveilled and arrested while doing a 200-pill deal. A search warrant served on his home revealed another batch of 200 fentanyl pills and a large quantity of heroin and cocaine.”
“Tulalip Tribes have utilized the Tribal Access Program since 2016, for several programs which has expanded Tulalip’s access to criminal justice information,” said Tulalip Tribal Chairperson Teri Gobin. “We are able to register and track sex offenders entering and residing in Tulalip to provide better oversight and protections for our members and community. It has been instrumental in running our background checks of applicants who will have direct supervision over children to ensure our youth are being safely cared for. Lastly, our child welfare department is able to have fingerprint criminal background checks processed to review potential placements to ensure our children are in safe homes. We are quite pleased with the ease of use and prompt return of useful information.”
TAP relies on federal laws that provide tribes access for specific purposes, which include:
- Criminal justice uses: law enforcement, corrections, probation/parole, prosecution, criminal courts and pretrial services.
- Non-criminal justice uses: sex offender registry, housing, child support enforcement, agencies whose employees or volunteers have contact with or control over Indian children, Head Start programs, social service agencies that investigate allegations of abuse or neglect, and civil courts that issue orders of protection.
Given the funding sources, eligible tribes must have and agree to use TAP for:
- A sex offender registry authorized by the Adam Walsh Child Protection and Safety Act;
- A law enforcement agency that has arrest powers; or
- Any use that provides services to victims of crime, such as a Tribal Court which issues orders of protection
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), and the Office for Victims of Crime (OVC). TAP is co-managed by the Office of the Chief Information Officer (OCIO) and Office of Tribal Justice (OTJ).
For more information about TAP, visit: www.justice.gov/tribal/tribal-access-program-tap
Defense Contractor to Pay $940,000 to Resolve Allegations of Withholding Discounts from TRICARERead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that International SOS Assistance, Inc., International SOS Government Services, Inc., International SOS, LP, Air Rescue Americas, Inc. Arnaud Vaissié; and Pascal Rey-Herme (collectively, “International SOS”), will pay $940,000 to resolve allegations that it overcharged TRICARE, a health care insurance system for members of the military services and their families, for aeromedical evacuation services by concealing discounts it received from third-party air ambulance providers in violation of the False Claims Act.
The settlement resolves allegations that, between 2013 and 2017, International SOS, a provider of overseas healthcare services for the government, submitted to TRICARE false claims for payment relating to International SOS’s provision of aeromedical evacuations. International SOS negotiated discounts from third-party air ambulance providers, which it was required to pass along to TRICARE. Instead, International SOS did not disclose the actual cost of the aeromedical evacuation services during the quoting process; billed TRICARE at the higher non-discounted amount; and received payment from TRICARE for the inflated costs, which International SOS contends it retained as a fee.
“My Office is committed to protecting the integrity of federal healthcare billing regulations,” said U.S. Attorney McSwain. “We will hold accountable any federal contractor who chooses to engage in conduct that undermines those regulations, and therefore overburdens American taxpayers, by overbilling federal healthcare programs.”
“Protecting the integrity of the U.S. Department of Defense’s (DoD) procurement process and combating healthcare fraud impacting the DoD are top priorities for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “By concealing discounts and overcharging TRICARE, the DoD’s healthcare program, International SOS sought to profit at the expense of the American taxpayer. The settlement agreement announced today is the result of a joint effort and demonstrates DCIS’ continued commitment to work with the U.S. Attorney’s Office to ensure that U.S. military members and their beneficiaries continue to receive high quality and cost-effective healthcare.”
This settlement resolves allegations in a lawsuit by a former International SOS Regional Flight Desk Manager, under the qui tam (or whistleblower) provisions of the False Claims Act. The qui tam provisions permit private parties to sue for false claims on behalf of the government and to receive a share of any recovery. The relator here will receive $165,000 as his share of the recovery in the case. The relator was represented by Franklin J. Rooks, Jr., Esq. of Morgan Rooks, P.C., and Jared A. Jacobson, Esq. of Jared Jacobson Law, LLC.
“We thank the whistleblower for coming forward and providing essential assistance to the government. This concerned citizen’s information and assistance was critical to our office’s investigative efforts in this matter, and we deeply appreciate that contribution,” said U.S. Attorney McSwain.
This case was a cooperative effort among the U.S. Attorney’s Office for the Eastern District of Pennsylvania, and the Defense Criminal Investigative Service. For the United States Attorney’s Office, Assistant United States Attorneys Scott W. Reid, Colin Cherico, and Auditor Dawn Wiggins handled the investigation and settlement.
The lawsuit is captioned United States ex rel. Richard Nicholas v. International SOS Assistance, Inc., et al., Civil Action No. 16-3927 (E.D. Pa.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Convicted Felon Sentenced for Illegal ReentryRead the Press Release
RICHMOND, Va. – A Chesterfield County man was sentenced today to one and a half years in prison for illegal reentry to the United States following removal after conviction for a felony violation.
“Defendant Segura-Virgen has shown a complete lack of respect for the laws of this country, the multiple women he has assaulted, and the sanctity of our borders,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This case represents an all too common scenario here in the Eastern District of Virginia. This is serious public safety issue that has the full attention of my office and our law enforcement partners.”
According to court documents, Rodolfo Segura-Virgen, 38, is a Mexican citizen who in 1990 entered the United States. Following a 2001 conviction for felony unlawful sexual intercourse with a minor, Segura-Virgen was removed from the United States at taxpayer expense. Segura-Virgen illegally reentered the United States on an unknown date, and in 2003, when he was convicted of battery on a former spouse, his prior probation was revoked and he was sentenced to two years in prison. In 2004, Segura-Virgen was again removed to Mexico. He illegally reentered the United States again at an unknown date and came to the attention of law enforcement in 2018 when he was arrested in Chesterfield County on state charges.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney S. David Schiller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-149.
Connecticut Man Pleads Guilty to Conspiracy to File False Claims Against the United StatesRead the Press Release
Tampa, Florida – Jose Acevedo (39, Connecticut) pleaded guilty today to conspiring to file false claims against the United States. He faces a maximum penalty of 10 years in federal prison. His sentencing date has not yet been set.
According to the facts presented at the plea hearing, Acevedo joined in a conspiracy with others to file false and fraudulent income tax returns as claims against the United States. He and fellow conspirators used the personal identification information of persons they knew, and others, to file false and fraudulent income tax returns claiming refunds. These returns contained false information, including that the purported taxpayers had paid withholding taxes to the IRS associated with their supposed employment with business entities created by the conspirators when, in truth, the purported taxpayers were not employees of such entities and had not paid the claimed withholding taxes. Acevedo also caused the filing of several amended income tax returns with the IRS on his own behalf, using the same type of false information, causing the issuance of fraudulent refunds to himself. As a result, the IRS paid conspirators approximately $90,359 in fraudulent refunds and stopped payment on significantly more refund claims.
This case was investigated by agents of the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Colombian Supplier Sentenced to Prison for Cocaine Distribution ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Colombian man was sentenced today to six and a half years in prison for conspiring to distribute over 5 kilograms of cocaine knowing and intending that it would be unlawfully imported into the United States.
According to court documents, Jorge Barbosa Alvarez, 33, was a member of a Colombian drug trafficking organization (DTO) based in South America. Between February and November 2016, Alvarez facilitated a multi-hundred kilogram cocaine transaction that was to be routed from South America to Central America, with a final destination of the United States. Specifically, Alvarez provided 5 kilograms of cocaine that was a sample batch for a 600-kilogram load of cocaine that he and his conspirators would provide for the transaction.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Colombian Control. 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. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, and Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorney and Virginia Assistant Attorney General Lena Munasifi prosecuted the case.
This case was investigated by the Washington Field Office’s Safe Streets/HIDTA Task Force. The task force is composed of FBI Special Agents, as well as task force officers from the Fairfax County Police, Prince William County Police, Leesburg Police, the Loudoun County Sheriff’s Office, the Alexandria City Police, the Vienna Police, the Herndon Police, the Fauquier County Sheriff’s Office, Fairfax City Police, and the Arlington County Police, and works partnership with the DEA, the ATF, the Department of Homeland Security, Homeland Security Investigations and the United States Marshal Service. This task force is charged with identifying, disrupting and dismantling the most egregious narcotics trafficking organizations and gangs operating in Northern Virginia.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-256.
Clifton Park Man Arrested for Attempting to Entice and Coerce Minor into SexRead the Press Release
ALBANY, NEW YORK – Kevin Nugent, age 41, of Clifton Park, New York, was arrested on August 27 on a complaint charging him with attempted enticement and coercion of a minor into committing criminal sex acts.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Nugent was arraigned yesterday in Albany before United States Magistrate Judge Christian F. Hummel. He was ordered detained pending trial.
The complaint charges Nugent with attempting to entice and coerce a minor, whom he believed to be a 14 year-old girl, to engage in various sexual acts with him. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Nugent carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Additionally, if convicted, Nugent would be required to register as a sex offender.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Career Criminal Sentenced to 25 Years in Prison on Federal Drug and Firearm ChargesRead the Press Release
Ocala, Florida – Senior United States District Judge James D. Whittemore has sentenced Jovan Demetrius Fredericks (40, Ocala) to 25 years in federal prison for possessing a firearm as a convicted felon, possession with the intent to distribute controlled substances, and carrying a firearm in relation to a drug trafficking crime. A federal jury had found Fredericks guilty of the offenses on March 5, 2019.
According to testimony and evidence presented in court, on the morning of September 29, 2018, officers from the Ocala Police Department encountered Fredericks at the Parkside Gardens public housing complex. Fredericks, a felon with multiple convictions, immediately tried to conceal a hand-rolled cigarette containing illegal drugs from the officers. When the officers stopped to investigate, they saw a loaded, full-size handgun with a 30-round ammunition magazine tucked into the waistband of Fredericks’s pants. After arresting Fredericks for the firearm, a search of his person revealed multiple packages of illegal drugs ready for sale, including MDMA (“ecstasy”), N-Ethylpentylone (“bath salts”), and cocaine. Fredericks’s extensive criminal record—which includes prior convictions for robbery, possession of a firearm by a felon, and repeated sales of illegal drugs—qualified him as both an Armed Career Criminal and a Career Offender for federal sentencing purposes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case was jointly investigated by the City of Ocala Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
California Man Sentenced to 18 Years for Sex Trafficking Six VictimsRead the Press Release
KANSAS CITY, Mo. – A Sacramento, Calif., man was sentenced in federal court today for the sex trafficking of six victims.
Ronald Ean Taylor, 45, was sentenced by U.S. District Judge Gary A. Fenner to 18 years in federal prison without parole. The court also ordered Taylor to pay $5,000 in restitution to one of his victims, and $6,100 in restitution to the father of another victim for funeral expenses as a result of her death from a drug overdose while in California with Taylor.
On March 19, 2019, Taylor pleaded guilty to six counts of the sex trafficking of an adult. Taylor admitted that he used force, fraud or coercion to cause six victims to engage in prostitution, from which he benefitted financially. Taylor trafficked six separate victims at various times between Nov. 1, 2014, and May 31, 2017.
The investigation began in June 2016, when one of Taylor’s victims was contacted by Kansas City, Mo., police officers. She told officers that Taylor was a pimp who lived in California and sold drugs and prostitutes in the Kansas City area. She said Taylor verbally threatened to harm her, was mean, had anger issues, and was manipulative. He provided her with drugs and used her to meet other women with drug addictions. She told officers that one of Taylor’s victims, identified in court documents as “Victim 6,” used to “work” for Taylor and died in California from a drug overdose while she was with him.
The women had ads posted on Backpage and Taylor used hotels near Blue Ridge Cutoff near the sports stadiums to conduct his business. He would get the women to go to California and show them an extravagant lifestyle. He started them off dancing in strip clubs, then suggested they work as prostitutes. When the women agreed to prostitute, Taylor would fly them back to Kansas City to work. Taylor kept the money earned by the women from prostitution.
A second victim told investigators that Taylor was violent and on one occasion hit her over the head with liquor bottle. The second victim stated she felt like she would be hurt if she did not have sex with him. She said Taylor carried a firearm.
A third victim told federal agents that Taylor was physically violent towards her and would take all of the proceeds from the acts of prostitution. She said Taylor choked her to unconsciousness and forcibly raped her.
A fourth victim’s mother contacted law enforcement to report that her daughter was in Hollywood, Calif., with Taylor and was being held against her will. Taylor had brought the fourth victim to California on two occasions so that she could purportedly model. He provided her with illegal narcotics and kept her in a constant state of intoxication to a point where she became dependent. She told investigators that Taylor kept her from contacting her mother and became hostile; he used her drug dependency to motivate her to do things she would not normally do.
A fifth victim told investigators that she and a sixth victim (now deceased due to a drug overdose) were addicted to heroin. Taylor used heroin and a trip to California to entice them to work as prostitutes. He paid for both of their airfares to California and put them up in a motel somewhere in Los Angeles. Taylor continued to supply them with drugs and then flew them both back to Kansas City to work as prostitutes. On one occasion, she said, Taylor slapped her in the face and forcibly raped her. She and another victim told investigators that Taylor also was physically abusive to the sixth victim. A witness stated she saw Taylor throw her against the wall and choke her.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Los Angeles, Calif., Police Department and the Sacramento, Calif., Police Department in conjunction with the Human Trafficking Rescue Project.
Butte pastor admits stealing from churchRead the Press Release
MISSOULA–The pastor of the United Pentecostal Church in Butte appeared today on wire fraud charges and admitted to embezzling $288,757 from the organization over a four-year period, U.S. Attorney Kurt Alme said.
Kenneth Emmett Hogue, 66, of Butte, pleaded guilty to wire fraud as charged in an information during an initial appearance. Hogue faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. Desoto presided. Hogue was released pending further proceedings.
Hogue’s sentencing was set for Dec. 12, 2019. Chief U.S. District Judge Dana L. Christensen is hearing the case.
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 is prosecuting the case, which was investigated by the FBI.
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Buffalo Man Pleads Guilty to Selling Butyryl FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Angel Vazquez, 33, of Buffalo, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to distribution of butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that in July 2017, an individual working with the Drug Enforcement Administration made arrangements with co-defendant Luis Matias to purchase heroin from Matias. On July 26, 2017, Matias agreed to sell heroin to the individual. Matias sent the defendant to deliver the drugs. Angel Vazquez sold five grams of suspected heroin to the individual in exchange for $500.00.
Charges remain pending against Luis Matias. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, under the direction of Major Edward Kennedy; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for December 11, 2019, before Judge Wolford.
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Buffalo Man Pleads Guilty for His Role in Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Omar Vazquez-Baez, a/k/a Tutu, 26, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and distribution of, five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between July 2017 and September 29, 2017, the defendant conspired with others to distribute cocaine in the Niagara Falls area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa. Vazquez-Baez regularly distributed quantities of cocaine to customers on behalf of the Rivera-Figueroa organization.
On September 13, 2017, investigators intercepted a phone call between Rivera-Figueroa and the defendant. After contacting some of his co-defendants, Rivera-Figueroa told Vazquez-Baez, “I have some lockers for you to take a look at. I already gave six, but for you to see them and offer them around. . . .I’m like a display cabinet right now.” The defendant then met with Rivera-Figueroa and collected several packaged quantities of cocaine. Later that day, Vazquez-Baez called Rivera-Figueroa to ask for more cocaine. During the conversation, the defendant asked Rivera-Figueroa for more cocaine, but Rivera-Figueroa indicated he was out of supply. In response, Vazquez-Baez stated “damn, I had half for today and it was already gone over night, bastard!” explaining that he had a half-kilogram of cocaine and sold it quickly. Vazquez-Baez then stated “I have 3 chickens for sure,” indicating that he had customers prepared to purchase 375 grams of cocaine.
The defendant was arrested on September 29, 2017, inside his residence on 7th Street in Buffalo. During the execution of a search warrant, investigators recovered a .22 caliber firearm; ammunition; multiple quantities of suspected cocaine and marijuana; drug paraphernalia including a vacuum sealer and bag, razors, scales, metal press, cut, and packaging material; and numerous cell phones.
Vazquez-Baez is one of 12 defendants charged in this case and the ninth to be convicted.
The plea is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for January 22, 2020, before Judge Vilardo.
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Bernice Man Sentenced for Dealing MethamphetamineRead the Press Release
A Bernice man was sentenced today in U.S. District Court for possession with intent to distribute methamphetamine, announced U.S. Attorney Trent Shores.
Chief Judge John E. Dowdell sentenced Kenneth James Thunderburk, 38, to five years in federal prison. Thunderburk pleaded guilty to the charge in May 2019.
“Methamphetamine continues to be Oklahoma’s number one problem drug. Kenneth Thunderburk exacerbated that problem by dealing meth to addicts in our community. My concern is not only for the users who struggle daily with addiction, but also for their family and friends. Children who live in a household with a meth-addicted parent are often neglected and subjected to dangerous, unpredictable conditions,” said U.S. Attorney Shores. “Dealers like Kenneth Thunderburk must be put out of business and held accountable for the drug fueled misery they spread.”
Thunderburk was arrested in December 2018 after security at the Hard Rock Hotel and Casino in Catoosa reported him as trespassing to authorities. He had been banned from the premises in 2017. When a Catoosa police officer located the defendant at a near-by smoke shop, he searched the defendant and discovered methamphetamine and a large amount of cash. The officer who conducted the search is cross-commissioned with the Cherokee Nation Marshal Service. After reviewing Hard Rock security footage, investigators concluded that Thunderburk’s behavior while in the casino and during questioning indicated that he was dealing the drug.
“This investigation is a great example of the excellent multi-jurisdictional relationships we have in northeastern Oklahoma,” U.S. Attorney Shores said. “Because of the cross commissions that were in place, local, tribal, and federal officers worked seamlessly together to investigate Kenneth Thunderburk. This is what collaborative policing looks like, and there isn’t any better example in the United States than Northern Oklahoma.”
The Catoosa Police Department, Cherokee Nation Marshal Service, Bureau of Indian Affairs, and Drug Enforcement Administration are the investigative agencies. Assistant U.S. Attorney Scott M. Proctor prosecuted the case.
Austin Main Sentenced to Federal Prison for Felon in Possession and Fraud ConspiracyRead the Press Release
In Austin today, U.S. District Judge Lee Yeakel sentenced 28–year–old Austin resident Douglas Ryan Dahl to 51 months of imprisonment followed by three years of supervised release for being a felon in possession of a firearm and conspiring to commit mail and wire fraud using information obtained from stolen mail, announced U.S. Attorney John F. Bash and Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division. Dahl also was ordered to pay $3,559.78 in restitution.
According to court documents, between about January 1, and December 25, 2018, Dahl conspired with others to obtain money and goods through fraudulent use of stolen and fraudulently obtained PII. Dahl obtained mail stolen by other individuals who pried open mail receptacles in the Austin, Texas area. Dahl was found with thousands of pieces of mail from hundreds of different victims. With a laptop and laser printer, Dahl used the personally identifying information taken from the victims of the stolen mail to create fake, temporary driver’s licenses bearing Dahl’s photograph. Dahl was found driving a 2014 Ford Taurus in December 2018 that he purchased after obtaining $25,000 in financing using stolen personal identification information. A temporary Texas Driver’s License was found in the car in the victim’s name but bearing Dahl’s photo. At the time, Dahl, a convicted felon, possessed a Glock Model 19 9mm handgun and a Remington 12 gauge shotgun.
The U. S. Secret Service, U. S. Postal Inspection Service, and Task Force Officers with the Austin Police Department conducted this investigation. Assistant U.S. Attorney Michael C. Galdo prosecuted this case on behalf of the Government.
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Arizona Man to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced August 23, 2019, to four years in federal prison.
Henock Castillo, 33, from Mesa, Arizona, received the prison term after a March 18, 2019, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Castillo admitted he participated in a conspiracy that distributed at least 13 kilograms of methamphetamine. Castillo arranged for the delivery of methamphetamine to Sioux City. Castillo obtained the meth from his source in Mexico and traveled from Phoenix to Sioux City with the methamphetamine for distribution in Sioux City.
Castillo was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Castillo was sentenced to 48 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Castillo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4069. Follow us on Twitter @USAO_NDIA.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced DIEGO ALBERTO LOPEZ-MARTINEZ, 30, of Mexico on August 21, 2019 for illegal re-entry of a previously deported alien into the United States. Lopez-Martinez was arrested in Basin, Wyoming. He received time served plus ten days to allow for deportation proceedings. Lopez-Martinez has previously deported from the United States in November of 2010. The Big Horn County Sheriff’s Office and the U.S. Department of Homeland Security investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced JASON ALLEN LITTLE, 43, of Meeteetse, Wyoming on August 22, 2019 for unlawful user of a controlled substance in possession of a firearm. Little was arrested in Thermopolis, Wyoming. He received thirty months of imprisonment, to be followed by thirty-six months of supervised release. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced NELSON FARIS RAMOS-MIRANDA, 35, of Honduras on August 21, 2019 for illegal re-entry of a previously deported alien into the United States. Ramos-Miranda was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings. Ramos-Miranda had previously been deported from the United States in September of 2011. The U.S. Department of Homeland Security investigated this case.
Federal District Court Judge Alan B. Johnson sentenced IVAN RAMOS-TZOMPA, 32, of Mexico on August 27, 2019 for illegal re-entry of a previously deported alien into the United States. Ramos-Tzompa was arrested in Teton County, Wyoming. He received time served plus ten day to allow for deportation proceedings and ordered to pay a $100.00 special assessment. Ramos-Tzompa had previously been deported in 2007. The U.S. Department of Homeland Security investigated this case.