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Wednesday 5 June 2019
CEO of Public Commodities Trading Company Charged in $66 Million Accounting Fraud SchemeRead the Press Release
Defendant Allegedly Inflated Company’s Revenue to Defraud Investors
NEWARK, N.J. – The CEO of a publicly traded commodities trading company has been indicted for allegedly orchestrating an accounting scheme to defraud investors and others by recognizing more than $66 million in fake revenue in the company’s public filings, U.S. Attorney Craig Carpenito announced today.
Venkata Meenavalli, 49, of India, was charged by indictment with securities fraud.According to documents filed in this case:
In 2017 and 2018, Meenavalli and others orchestrated a multimillion-dollar accounting fraud relating to Longfin Corp., a publicly traded company purportedly engaged in sophisticated commodities trading and so-called “cryptocurrency” transactions, including “blockchain-empowered solutions.” In fact, Longfin did not engage in any revenue-producing cryptocurrency transactions, and did not use the blockchain to empower any solutions. Longfin reported as revenue millions of dollars of commodities transactions, which were actually sham events between Longfin and separate entities Meenavalli controlled, using phony bills of lading and other fraudulent documents.Longfin fraudulently reported in its public filings with the U.S. Securities and Exchange Commission (SEC) more than $66 million of revenue that was never actually earned and should never have been recognized. By including this phony revenue in the company’s public filings, Meenavalli and others made Longfin’s shares more attractive to potential investors.
Longfin’s 2017 Form 10-K (a required annual report to the SEC) claimed that its primary source of revenue was from “structured trade finance,” including “the sale of physical commodities.” Longfin falsely reported million in accounts receivable in purported physical commodity sales that never occurred. In fact, Meenavalli allegedly owned or controlled several entities that purportedly did business with Longfin, and did not disclose those relationships to Longfin’s shareholders or the investing public.
The count of securities fraud with which Meenavalli is charged carries a maximum potential penalty of 20 years in prison and a $5 million fine.
Separately, the U.S. Securities and Exchange Commission today filed a new fraud action against Longfin and Meenavalli for falsifying the company’s revenue and, together with a former Longfin consultant, for fraudulently securing the company’s listing on Nasdaq.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to charges announced today. He also thanked the U.S. Securities and Exchange Commission in Washington, D.C., and Stephanie Avakian and Steven Peikin, co-directors of the Division of Enforcement, for the assistance of the Enforcement staff.
The government is represented by Assistant U.S. Attorney Catherine Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit and Zach Intrater, Executive Assistant U.S. Attorney.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.Bergen County Man Arrested on Child Pornography ChargesRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested and charged today with distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Jeffrey Laino, 37, of Washington Township, New Jersey, was arrested at his home. He is charged by complaint with one count of distributing child pornography. Laino made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor today in Newark federal court.
According to documents filed in this case and statements made in court:
In January 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer (P2P) program, which allows internet users to trade digital files. During this session, a user shared multiple files of featuring images of child sexual abuse from an internet address traced to Laino’s residence.
In February 2019, law enforcement officers received information from a victim living in Ohio who was approached on the social media application Snapchat by an individual using a screen name that included “Jeff L.” In chats with the Ohio victim, “Jeff L.” stated that he was from New Jersey and had obtained nude pictures of the Ohio victim – taken when she was 14 to 15 years of age – by downloading them from the Internet. The IP address of “Jeff L.” Snapchat user was assigned, at the approximate times the chats took place, to an account located at Laino’s residence.
The count of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s arrest.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Bank Robber Sentenced to 63 MonthsRead the Press Release
BOWLING GREEN, Ky. – United States District Judge Greg Stivers has sentenced James W. Gray II to 63 months imprisonment, followed by 3 years of supervised release, and restitution of $13,326, for three bank robberies committed in Kentucky and Colorado, announced United States Attorney Russell Coleman.
According to a plea agreement, on July 17, 2017, Gray robbed the U.S. Bank located at 910 South Main Street, Franklin, Kentucky, taking $5,549.
Gray also pleaded guilty to robbing the TBK Bank located in Keenesburg, Colorado taking $1,716 on July 24, 2017. Three days later on July 27, 2017, Gray robbed the Bank of the West in Lyons, Colorado taking $6,061.
Assistant United States Attorney David Weiser prosecuted the case which was investigated by the Federal Bureau of Investigation, U.S. Marshals Service, and the Franklin, Kentucky Police Department.
Armed Robber Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Isaiah Jarrod White, 31, from Eight Mile, Alabama, was sentenced in federal court on May 20, 2019, for his participation in a series of armed robberies in the Mobile area. White pled guilty to two counts of brandishing a firearm in furtherance of a crime of violence, and one count charging felon in possession of a firearm. White pled guilty to the three charges in February of 2019.
United States District Court Judge Callie V. S. Granade imposed a sentence totaling 214 months, consisting of 84 months on each of the brandishing counts to run consecutively to each other, and 46 months on the felon in possession count, which also will run consecutively to the other sentences. White will undergo mental health treatment, and counseling and treatment for drug and alcohol abuse while he is in prison. He was ordered to pay $2,139.74 in restitution to the victims of the robberies he committed. When he is released from prison, White will be placed on supervised release for five years, during which he will remain in treatment for mental health, and drug and alcohol testing and treatment. The probation office will assist in the collection of restitution. The judge also ordered that White pay $300 in mandatory special assessments, but no fine was imposed.
The case was investigated by the Mobile County Sheriff’s Office, the United States Marshals Service Gulf Coast Regional Task Force, the Prichard Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
15 Defendants Arrested Following Drug Trafficking Investigation and RoundupRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas; Diane L. Upchurch, Special Agent in Charge of the FBI; and David Ethredge, Prosecuting Attorney for the Fourteenth Judicial District of Arkansas, announced that fifteen individuals were arrested today by local, state, and federal law enforcement as part of a roundup following an over year-long investigation into methamphetamine trafficking in Boone County Arkansas. Fourteen defendants were arrested on federal charges stemming from an investigation which occurred over much of the last calendar year. Three additional, related defendants, Jason Alvarez, Walter Alvarez and Daniel Perez-Lebron had already been arrested on federal charges and are in custody.
Previously on April 9, 2019, Jason Alvarez, Walter Alvarez, and Daniel Perez-Lebron were arrested by the Federal Bureau of Investigation following a significant seizure of methamphetamine near Alpena, Arkansas. A three-count Indictment was issued against these three defendants on May 8, 2019 and unsealed on May 10, 2019.
Also on May 8, 2016, a federal grand jury returned an indictment charging 21 additional individuals in the Harrison, Arkansas area with a large-scale drug trafficking conspiracy related to the Alvarez arrests. The indictments included a total of fifteen counts, all of which involved the distribution of methamphetamine. The indictments were unsealed earlier today as a part of the FBI’s enforcement activities in the Harrison area.
Duane “DAK” Kees, the United States Attorney for the Western District of Arkansas stated, “This investigation is an example of the great work accomplished by our federal and state law enforcement partners working together to combat these dangerous drugs that are a threat to our communities. These arrests and this seizure of methamphetamine should send a serious message to those in our district that are engaged in the distribution of methamphetamine.”
“Today’s arrests would not have been possible without the dedicated assistance of our partners with the 14th Judicial Drug Task Force, the Drug Enforcement Administration, the Boone County Sheriff, the Harrison Police Department, the Arkansas National Guard, and the assistance of other FBI field offices,” stated FBI Special Agent in Charge Diane Upchurch of the FBI’s Little Rock Field Office. “We all remain dedicated to the eradication of illegal drug trafficking organizations from our great State. We are all also very thankful for the hard work and assistance of our partners with the United States Attorney’s Office for the Western District of Arkansas and the 14th Judicial District Prosecuting Attorney’s Office.”
David Ethredge, the Prosecuting Attorney for the 14th Judicial District stated, “The success of this operation is the direct result of the outstanding cooperation between all of these law enforcement professionals. Because of these efforts the influx of methamphetamine into our community and its distribution has been severely disrupted. This would not have been possible without the great working relationship with the US Attorney’s Office and the FBI , for which my office is very grateful. Our area is extremely fortunate to have all of these dedicated individuals serving our citizens.”
The defendants who were arrested today will be scheduled to appear in the United States District in Fort Smith before United States Magistrate Judge Mark Ford in the coming days.
Today’s enforcement activities are part of the Western District of Arkansas’ Operation Iced Ozarks, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
This OCDETF operation is a joint investigation between the Federal Bureau of Investigation, the 14th Judicial Drug Task Force, the 14th Judicial District Prosecuting Attorney, the Drug Enforcement Administration, the Boone County Sheriff, the Harrison Police Department, and the Arkansas National Guard Counterdrug. Assistant United States Attorney Brandon Carter is prosecuting the case for the Western District of Arkansas.
An indictment is merely an accusation. An arrest warrant represents a finding of probable cause. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
The individuals appearing on the indictment unsealed today are: Zachery Lee Manning, Nathan Ron Collins, Robert Leroy Black, Champayne Lamar Manning, Jerry Don “JD” Richardson, Louis Marcil III, Christy Lynn Reynolds, Malia Anne McEaney, Sydney Lynn Martin, Amanda Marie Wall, Samantha Marie Fitzpatrick, Sherrie Denise Snelling, Michael Allan Barnett, James Andrew Davidson, Jessica Chelsea Starkey, Cristen Shillings, Hailey Danielle Doss-Triplett, Steven Ray Kollin, Darian Brittain, Brayden Thomas Cornelius and Lindsey Brooke Johnson .
Tuesday 4 June 2019
Winchester Man Convicted by Federal Jury for Threatening Government of SingaporeRead the Press Release
LEXINGTON, Ky. — A federal jury has found Mikhy Farrera-Brochez, a 34 year old man originally from Winchester, Kentucky, guilty of two counts of sending threatening communications to the Government of Singapore and its Ministry of Health. The jury also found Farrera-Brochez guilty of one count of possessing and transferring the means of identity of other people in interstate and foreign commerce with the intent to commit, or in connection with, another crime. The jury convicted Farrera-Brochez on Tuesday, June 4, 2019, following a 2-day trial in U.S. District Court.
According to trial testimony, Farrera-Brochez obtained access to a database belonging to the Singaporean Ministry of Health that listed the private identifying and medical information of thousands of people in Singapore living with HIV, including more than 50 U.S. citizens. He sent the database to his mother in Kentucky, and retrieved it when he returned to Kentucky in 2018. On January 22, 2019, Farrera-Brochez sent an email to several officials of the Government of Singapore that included three links to places on the internet where he had put copies of the database. He made several demands in that email. On February 18, 2019, he sent a second email to officials of the Government of Singapore threatening to publish the database if his demands were not met.
Farrera-Brochez is scheduled to be sentenced on September 27, 2019, at the federal courthouse in Lexington. He faces a possible sentence of up to 2 years of imprisonment on each count of sending threatening communications, and of up to 5 years for possessing and transferring the identity information. The Court will impose a sentence after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge of the FBI, jointly made the announcement.
The investigation was conducted by the Federal Bureau of Investigation. The United States was represented by Assistant United States Attorney Dmitriy Slavin and Special Assistant United States Attorney James Chapman.
Wilkinsburg Man Possessed Images and Videos of Child Pornography on his PhoneRead the Press Release
PITTSBURGH, PA - A resident of Wilkinsburg, Pennsylvania, pleaded guilty yesterday in federal court to a charge of possession of material depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
Jason Gerade Harris, Jr., 25, of pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that FBI agents received a tip from Minnesota that a complainant discovered naked images of her 7-year-old son sent via Skype. The conversations originated on PlayStation and were continued via Skype. Agents also learned, that a 13-year-old Tampa, Florida juvenile was enticed to take explicit pictures of his 6-year-old brother to send using Kik. The investigation led to the defendant at a residence on Wright Street in Wilkinsburg, PA.
On December 6, 2018, agents executed a search warrant on the residence. When they advised that they were at the house because someone used the internet there to coerce minors to send nude photos and/or videos, Harris, Jr. abruptly stated, "It was me," and provided details about his communications with minors. A forensic review of the defendant’s phone revealed two chats of interest in the "TextNow" app, where the defendant requested nude photographs of a minor. The forensic review also revealed 171 images and three videos of apparent child pornography, but nothing from his communications with the children in Minnesota or Florida.
Judge Schwab scheduled sentencing for October 22, 2019. The law provides for a maximum sentence of 10 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Harris’ bond.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
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 (CEOS), 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.justice.gov/psc.
Vestavia Hills Doctor Indicted on Charges of Producing and Possessing Child PornographyRead the Press Release
BIRMINGHAM – Federal authorities on Tuesday arrested a Birmingham-area doctor for producing and possessing child pornography, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
A two-count indictment filed in U.S. District Court last week charges DR. RONALD TAI YOUNG MOON, JR., of Vestavia Hills, with one count of production of child pornography and one count of possession of child pornography. Moon is a physical medicine doctor who practices at a clinic called The Industrial Athlete located in Birmingham. Moon is charged with producing child pornography sometime between 2007 and 2010. Moon is charged with possessing child pornography on or about January 15 of this year.
Producing child pornography carries a penalty of 15 to 30 years in prison, and a maximum $250,000 fine. The maximum penalty for possessing child pornography is 20 years in prison and a $250,000 fine.
The Federal Bureau of Investigation investigated the case, which Assistant U.S. Attorney John B. Ward and First Assistant U.S. Attorney Lloyd C. Peeples, III are prosecuting.
An indictment contains only charges and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
United States Files False Claims Act Complaint Against South Carolina Chiropractor, Pain Management Clinics, Urine Drug Testing Laboratories, and Substance Abuse Counseling CenterRead the Press Release
Columbia, South Carolina --- The United States has filed a complaint under the False Claims Act against Daniel McCollum, a chiropractor based in Greenville, South Carolina, and pain management clinics and urine drug testing laboratories that McCollum owned or managed for engaging in illegal financial relationships and providing medically unnecessary services and items, including urine drug testing and steroid injections and prescriptions for opioids and lidocaine ointment, the Department of Justice announced today. The entities named as defendants in connection with McCollum’s schemes are FirstChoice Healthcare P.C.; Labsource LLC; Oaktree Medical Centre P.C.; Pain Management Associates of the Carolinas LLC; Pain Management Associates of North Carolina P.C.; and ProLab LLC. The United States’ complaint also names as a defendant ProCare Counseling Center LLC, a substance abuse counseling center located in Greenville, South Carolina, that the government contends referred medically unnecessary urine drug tests to ProLab, which it co-owned with McCollum.
“Individuals and entities that participate in federal health care programs must comply with the rules intended to safeguard the integrity of those programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will not tolerate practices such as the ordering of unnecessary items or services and providing illegal inducements to physicians that lead to excessive costs being imposed upon our nation’s health care programs.”
“The U.S. Attorney’s Office for the District of South Carolina will not tolerate health care fraud, which victimizes both patients and taxpayers,” said Sherri Lydon, United States Attorney for the District of South Carolina. “We are committed to protecting taxpayer dollars from fraudulent billing practices and to holding accountable those in the medical community who have fueled the opioid crisis through abusive prescribing habits. Through False Claims Act cases like this one, we will continue to bring these bad actors to justice.”
The United States’ complaint alleges that from at least Jan. 1, 2011 through Dec. 31, 2018, McCollum and his pain management clinics paid bonuses to physicians and other health care providers that included amounts based directly on their referrals of urine drug testing to McCollum’s laboratories, in violation of the Stark Law and the Anti-Kickback Statute. The United States also alleges that McCollum and Labsource violated the Anti-Kickback Statute by entering into “direct bill” agreements with physicians and other providers around the country that entitled those providers, after paying Labsource a set fee to run the test panels they ordered, to bill private insurance companies directly for those tests – and generally for much more than they had paid Labsource. The United States contends in its complaint that McCollum and Labsource offered providers the opportunity to profit in this manner to induce them to refer their tests for Medicare, Medicaid, and TRICARE patients to Labsource.
Congress passed the Stark Law and Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services, as well as patient harm. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who stands to profit directly from those referrals. The Anti‑Kickback Statute, in relevant part, prohibits offering or paying anything of value to encourage the referral of items or services covered by federal health care programs, including laboratory testing services.
The United States’ complaint also alleges that McCollum and the other defendants, including ProCare, directed or encouraged providers to use “standing orders” of laboratory tests across all or most of their patients without regard for individual patient need – which caused Medicare, Medicaid, and TRICARE to pay for medically unnecessary tests. Finally, the complaint alleges that McCollum and his pain management clinics caused these federal health care programs to pay for excessive and unnecessary steroid injections and unnecessary prescriptions for opioids and lidocaine ointment.
The United States filed its complaint in three consolidated lawsuits pending in the United States District Court for the District of South Carolina under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, a private citizen can sue on behalf of the government and share in any recovery. The United States also is entitled to intervene in the lawsuits, as it did in these cases on March 1.
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of South Carolina, the FBI, the Department of Health and Human Service’s Office of Inspector General, the South Carolina Attorney General’s Office, and the Defense Criminal Investigative Service. It was handled by Assistant United States Attorney Beth Warren for the District of South Carolina. The claims asserted in this action are allegations only, and there has been no determination of liability.
The consolidated civil cases are United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.).
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U.S. District Judge Sentences Three Defendants Involved in Warner Robins Bank Fraud SchemeRead the Press Release
MACON – The defendant believed to be the ringleader in a mail theft and check cashing ring in the Warner Robins community was sentenced to more than seven months imprisonment followed by six months of home confinement by a U.S. District Judge today, said U.S. Attorney Charles “Charlie” Peeler. Mozell Wright, Jr., 36, of Warner Robins previously pleaded guilty to Bank Fraud on April 9, 2019 before The Honorable Tilman E. Self in U.S. District Court in Macon. Mr. Wright’s term of confinement will be followed by three years of supervised release. Two of Mr. Wright’s co-defendants – Bradley Rumph, Jr. 26, of Warner Robins, and Tara Blanks, 46, of Warner Robins – also pleaded guilty on bank fraud charges and were sentenced today to two years of supervised release. Defendants are also required to make restitution payments to the victim in this case. Charges against the five remaining co-defendants are pending.
According to facts in the signed plea agreement, Mr. Wright obtained the personal information of a victim and beginning on March 30, 2017, attempted to deposit or cash approximately $15,795.85 worth of fraudulent checks, along with Mr. Rumph, Ms. Blanks, and their co-defendants, at various banks in Houston County, Georgia from the victim’s bank account until May 17, 2017, the day before Mr. Wright was taken into custody. Investigators found hundreds of pieces of mail that included the identifying information of 23 separate victims, check stock and partially completed personal checks with illegally obtained personal information, financial document printing instructions and gauges for printing documents to scale, a computer with electronic versions of these phony checks and several hand-written notes with bank account and routing numbers.
“The use of an unsuspecting individual’s personal identifying information to commit crimes is a growing concern in the Middle District,” said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. “Our office will continue to work closely with our law enforcement partners to prosecute criminals involved in identity theft. I want to thank the U.S. Postal Inspection Service and the Warner Robins Police Department for their work uncovering this fraud and protecting our citizens.”
The case was investigated by the United States Postal Inspection Service and Warner Robins Police Department. Assistant U.S. Attorney C. Shanelle Booker is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
U.S. Attorney Thanks Trump Administration for Swift Action and Cautions Public to be Aware of Disaster Fraud in Wake of Flooding and Severe WeatherRead the Press Release
“On Saturday, President Trump declared a disaster in three Oklahoma counties affected by severe weather and flooding. The announcement is followed by today’s visit from Vice President Pence, who will view damage affecting Oklahoma residents. I am grateful for the Administration’s concern and swift action taken to address recovery efforts that many Oklahomans face in the coming months,” said U.S. Attorney Trent Shores. “Oklahomans are known for persevering through adversity and uniting to help one another in the aftermath of natural disasters. That being said, I also want to caution the public about unscrupulous individuals and organizations who would use these tragic events to take advantage of those impacted. Be wary of potential price gouging, individuals posing as contractors and repairmen, and potential fraudulent online donation sites that seek to steal your money, account numbers, and personal identifying information. If you are victimized by a scam or encounter suspicious activity, I strongly encourage you to report the suspicious criminal behavior to law enforcement as well as authorities at the Justice Department’s National Center for Disaster Fraud at 1-866-720-5721. Through the NCDF, and in conjunction with our law enforcement partners, we are working to keep Oklahomans from becoming victims of these schemes.”
Potential examples of illegal activity include: Impersonation of federal law enforcement officials; Identity theft; fraudulent submission of claims to insurance companies and the federal government; fraudulent activity related to solicitations for donations and charitable giving; fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts; price gouging; contractor Fraud; debris removal fraud; theft, looting, and other violent crime.
In 2005, the Department of Justice along with various law enforcement and regulatory agencies partnered to form the National Center for Disaster Fraud (NCDF). The agency was formed to further the detection, prevention, investigation and prosecution of disaster fraud. Federal prosecutors charged more than 1,300 disaster fraud cases relating to Hurricane Katrina alone, and since 2005, the NCDF has received over 95,000 disaster fraud complaints. Learn more about NCDF and available resources here.
You may also find resources at the following websites: https://www.fema.gov/disaster-fraud and http://www.oag.ok.gov/consumer-protection
Two Ponca City Men Indicted for Armed Robbery of Yale Drug Store to Steal OpioidsRead the Press Release
OKLAHOMA CITY – A federal grand jury has returned an indictment charging TANNER BLAKE JENSEN, 28, and RODNEY TYRONE FAHS, 26, both of Ponca City, in connection with an armed robbery of the Yale Drug Store, announced First Assistant U.S. Attorney Robert J. Troester. According to court records, on December 26, 2018, Jensen entered the Yale Drug Store in Yale, Oklahoma, where he brandished a firearm in the presence of a customer and two employees during a robbery. Both defendants are alleged to have been involved in stealing opioids, which are controlled substances, from the drug store.
The indictment alleges in Count 1 that the defendants unlawfully interfered with commerce by robbery under the Hobbs Act. In Count 2, Jensen is charged with brandishing a firearm in relation to a crime of violence. If found guilty on Count 1, each defendant faces up to 20 years in prison, a fine of up to $250,000, and up to three years of supervised release. If found guilty on Count 2, Jensen faces not less than seven years and up to life in prison, a fine of up to $250,000, and up to five years of supervised release.
This specific case is a result of an investigation by the Yale Police Department, FBI Oklahoma City Division, the Oklahoma State Bureau of Investigation, and the Payne County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney David P. Petermann.
This case is part of an overall coordinated effort by the Western Oklahoma Opioid Enforcement Team, a collective effort of federal and state law enforcement agencies and prosecutors to use all legal tools—criminal, civil, and administrative—to maximize effectiveness in protecting Oklahomans from the illegal diversion, distribution, and use of opioids. Team members include the U.S. Attorney’s Office, the Oklahoma Attorney General’s Office, the Oklahoma Bureau of Narcotics and Dangerous Drugs, FBI, DEA, HHS Office of Inspector General, the Oklahoma State Bureau of Investigation, IRS—Criminal Investigations, the Defense Criminal Investigative Service, the Oklahoma County District Attorney, and the District Attorney for Cleveland, Garvin, and McClain Counties.
The public is reminded that these charges are merely allegations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Two Massachusetts State Troopers Sentenced in Overtime Abuse InvestigationRead the Press Release
BOSTON – A retired Massachusetts State Police (MSP) Lieutenant and a suspended MSP Trooper were sentenced today in connection with the ongoing investigation of overtime abuse at the state agency.
Retired MSP Lieutenant David Wilson, 58, of Charlton, was sentenced by U.S. District Court Judge Richard G. Stearns to one day (deemed served), two years of supervised release with the first six months to be served in home detention, and restitution of $12,450. Suspended MSP Trooper Heath McAuliffe, 41, of Hopkinton, was sentenced by U.S. District Court Judge Denise Casper to one day (deemed served), one year of supervised release with the first six months to be served in home detention, a fine of $4,000, and restitution of $7,860. Wilson and McAuliffe previously pleaded guilty to one count of embezzlement from an agency receiving federal funds. The government recommended six months incarceration for both Wilson and McAuliffe.
Wilson, who served as the Officer-in-Charge of several overtime shifts, received overtime pay for shifts from which he left early or did not work at all. Specifically, in 2016, Wilson earned approximately $259,475, which included approximately $102,062 in overtime pay. During that year, the investigation revealed that Wilson earned approximately $12,450 in overtime pay for 124.5 AIRE overtime hours that he did not work.
In 2016, McAuliffe, who was assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90, earned approximately $164,680, which included approximately $60,908 in overtime pay. In 2015, McAuliffe earned approximately $180,215, which included approximately $83,496 in overtime pay.
The conduct involves overtime pay for selective enforcement initiatives, specifically the Accident and Injury Reduction Effort program (AIRE), which is intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds.
Wilson and McAuliffe were required to work the entire duration of the four hour shift and truthfully report the date, time and sector of deployment on the citations issued during the shift. However, Wilson and McAuliffe admitted that they had been paid for hours they did not work, and for overtime shifts from which they left early. Wilson and McAuliffe concealed the fraud by submitting false paperwork and citations that were issued outside of the overtime shifts and that had been altered to create the appearance that they were issued during overtime shifts.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.
Two Indictments Unsealed Charging Iranian Citizen with Violating U.S. Export Laws and Sanctions against IranRead the Press Release
Peyman Amiri Larijani, 33, a citizen of Iran and former resident of Istanbul, Turkey, was charged in the United States District Court for the District of Columbia in two separate indictments. The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia and Assistant Secretary Nazak Nikakhtar of the U.S. Department of Commerce.
A 34-count indictment returned on April 22, 2015, charges Larijani and a Turkish based company, Kral Havacilik IC VE DIS Ticaret Sirketi (Kral Aviation), with conspiracy to acquire U.S. origin aircraft parts and goods to supply to entities and end-users in Iran, to conceal from United States companies and the U.S. government that the U.S.-origin goods were destined for Iranian aviation business end users, to make financial profit for defendants and other conspirators, and to evade the regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA), the Iranian Transactions and Sanctions Regulations (ITSR), and the Export Administration Regulations (EAR).
“The Department is committed to vigorous enforcement of the sanctions placed on Iran for its oppressive and destabilizing behavior,” said Assistant Attorney General Demers. “The indictment charges the defendant with conspiring to equip an Iranian airline that has been designated for supporting the Islamic Revolutionary Guard Corp, a key instrument of the Iranian regime’s belligerent activity. Sanctions evasion weakens the power of sanctions to change Iran’s behavior and makes us all less safe.”
“Our export laws are in place to prevent the shipment of goods to hostile countries and to keep items out of the hands of people who intend to harm the United States,” said U.S. Attorney Jessie K. Liu. “We will continue to aggressively prosecute those who violate our export control laws to protect the national security of the United States.”
“The Trump Administration will apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide,” said Assistant Secretary Nikakhtar. “Mahan Air represents a continuing significant threat against United States and its allies. We will use all of the tools at our disposal to bring to justice those who threaten our way of life and violate our laws.”
According to the indictment, beginning around December 2010 through July 2012, Larijani was the Operations Manager for Kral Aviation. Larijani and his co-conspirators purchased U.S.-origin aircraft parts and accessories from U.S. companies. Larijani and his co-conspirators wired money to banks in the United States as payment for these parts and concealed from U.S. sellers the ultimate end use and end users of the purchased parts. Larijani and his co-conspirators caused these parts to be exported from the United States to Istanbul, Turkey, before shipping to airlines in Iran including Mahan Air, Sahand Air, and Kish Air.
Mahan Air has been designated by the U.S. Department of the Treasury as a Specially Designated National (SDN) for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force. The Department of Commerce has placed Mahan on its Denied Parties List and Kral Aviation on the Entity List.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the United States Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C.
A four-count indictment returned on Oct. 6, 2016, charges Larijani along with Mahan Air, Kral Havacilik IC VE DIS Ticaret Sirketi (Kral Aviation), Toufan Amiri Larijani, Javad Rajabi, Mehdi Bahrami, and Ghodratollah Zarei with conspiracy to export U.S. goods to Iran, specifically U.S. origin commercial aircraft engines, and provide services to a Mahan Air, a SDN, and to defraud the United States; and the U.S. Department of the Treasury and the U.S. Department of Commerce; unlawful exports and attempted exports to embargoed country and provision of services to an SDN; willful violation of denial order; and conspiracy to commit money laundering for purchasing a U.S. origin aircraft engine to supply to Mahan Air in Iran without obtaining an export license.
According to the indictment, beginning around April 2012 through September 2012, Larijani and his co-conspirators attempted to acquire U.S. origin aircraft engines to supply to Mahan Air in Iran without obtaining a license or other authorization from the United States. Larijani and his co-conspirators caused the shipment of an aircraft engine from the United States with the express purpose of re-exporting the aircraft engine to Iran.
If convicted, Larijani faces a maximum of 20 years imprisonment.
The investigation was conducted by special agents from the U.S. Department of Commerce, Bureau of Industry and Security Office of Export Enforcement, Miami Field Office/Atlanta Resident Office and Washington Field Office.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Two Indictments Unsealed Charging Iranian Citizen with Violating U.S. Export Laws and Sanctions Against IranRead the Press Release
WASHINGTON – Peyman Amiri Larijani, 33, a citizen of Iran and former resident of Istanbul, Turkey was charged in the United States District Court for the District of Columbia in two separate indictments. The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Assistant Secretary, Nazak Nikakhtar U.S. Department of Commerce.
A 34-count indictment returned on April 22, 2015, charges Larijani and a Turkish based company, Kral Havacilik IC VE DIS Ticaret Sirketi (Kral Aviation), with conspiracy to acquire U.S. origin aircraft parts and goods to supply to entities and end-users in Iran, to conceal from United States companies and the U.S. government that the U.S.-origin goods were destined for Iranian aviation business end users, to make financial profit for defendants and other conspirators, and to evade the regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA), the Iranian Transactions and Sanctions Regulations (ITSR), and the Export Administration Regulations (EAR).
“The Department is committed to vigorous enforcement of the sanctions placed on Iran for its oppressive and destabilizing behavior,” said Assistant Attorney General Demers. “The indictment charges the defendant with conspiring to equip an Iranian airline that has been designated for supporting the Islamic Revolutionary Guard Corp, a key instrument of the Iranian regime’s belligerent activity. Sanctions evasion weakens the power of sanctions to change Iran’s behavior and makes us all less safe.”
“Our export laws are in place to prevent the shipment of goods to hostile countries and to keep items out of the hands of people who intend to harm the United States,” said U.S. Attorney Jessie K. Liu. “We will aggressively prosecute those who violate or circumvent U.S. sanctions and export control laws to protect the national security of the United States.”
“The Trump Administration will apply maximum pressure on Iran to end its promotion of instability and terrorism worldwide," said Assistant Secretary Nazak Nikakhtar. “Mahan Air represents a continuing significant threat against United States and its allies. We will use all of the tools at our disposal to bring to justice those who threaten our way of life and violate our laws."
According to the indictment, beginning around December 2010 through July 2012, Larijani was the Operations Manager for Kral Aviation. Larijani and his co-conspirators purchased U.S.-origin aircraft parts and accessories from U.S. companies. Larijani and his co-conspirators wired money to banks in the United States as payment for these parts and concealed from U.S. sellers the ultimate end use and end users of the purchased parts. Larijani and his co-conspirators caused these parts to be exported from the United States to Istanbul, Turkey, before shipping to airlines in Iran including Mahan Air, Sahand Air, and Kish Air.
Mahan Air has been designated by the U.S. Department of the Treasury as a Specially Designated National (SDN) for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force. The Department of Commerce has placed Mahan on its Denied Parties List and Kral Aviation on the Entity List.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the United States department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C.
A four-count indictment returned on Oct. 6, 2016, charges Larijani along with Mahan Air, Kral Havacilik IC VE DIS Ticaret Sirketi (Kral Aviation), Toufan Amiri Larijani, Javad Rajabi, Mehdi Bahrami, and Ghodratollah Zarei with conspiracy to export U.S. goods to Iran, specifically U.S. origin commercial aircraft engines, and provide services to a Mahan Air, a SDN, and to defraud the United States; and the U.S. Department of the Treasury and the U.S. Department of Commerce; unlawful exports and attempted exports to embargoed country and provision of services to an SDN; willful violation of denial order; and conspiracy to commit money laundering for purchasing a U.S. origin aircraft engine to supply to Mahan Air in Iran without obtaining an export license.
According to the indictment, beginning around April 2012 through September 2012, Larijani and his co-conspirators attempted to acquire U.S. origin aircraft engines to supply to Mahan Air in Iran without obtaining a license or other authorization from the United States. Larijani and his co-conspirators caused the shipment of an aircraft engine from the United States with the express purpose of re-exporting the aircraft engine to Iran.
If convicted, Larijani faces a maximum of 20 years imprisonment.
The investigation was conducted by special agents from the U.S. Department of Commerce, Bureau of Industry and Security Office of Export Enforcement, Miami Field Office/Atlanta Resident Office and Washington Field Office.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Two Honduran Nationals Are Charged with Illegal ReentryRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Murray announced today that Luis Analberto Pineda-Anchecta, 37, a Honduran national, has been charged by a federal criminal complaint with illegal reentry of a deported alien. Court records show that Pineda-Anchecta was previously deported in 2006. A second individual, Rudy Aroldo Aguillar-Arevallo, 34, also a Honduran national, has been charged by a separate federal criminal complaint of unlawful reentry and possession of ammunition by an illegal alien. Aguillar-Arevallo was previously deported in 2010.
As alleged in the criminal complaint, on or about May 15, 2019, the Charlotte Mecklenburg Police Department (CMPD) arrested Pineda-Anchecta for the offenses of Assault on a Female, Communicating Threats, Injury to Personal Property Over $200, Larceny of Property or Goods with a Value Over $1000, and Simple Assault. On May 16, 2019, U.S. Immigration and Customs Enforcement’s (ICE), Enforcement and Removal Operations (ERO) filed a detainer with the Mecklenburg County Sheriff’s Office, which requests notification of that person’s presence at that facility and places a hold on that person so that immigration officers may have a reasonable period of time to determine that person’s true identity, immigration status and criminal history.
The criminal complaint alleges that, on May 17, 2019, after Pineda-Anchecta paid the bond amount set by a state magistrate judge, the Mecklenburg County Sheriff’s Office did not honor the detainer, released Pineda-Anchecta, and did not notify ICE. The complaint further alleges that on or about May 23, 2019, Pineda-Anchecta engaged in a standoff with a CMPD SWAT team that lasted several hours. Because he engaged in additional criminal conduct, CMPD re-arrested Pineda-Anchecta and charged him with Assault on a Female, Communicating Threats, Assault on a Person by Strangulation and Inflicting Physical Injury, Violation of a Domestic Violence Order, and First-Degree Kidnapping of a Person Over 16. The complaint alleges that on May 24, 2019, ICE filed another detainer with the Mecklenburg County Sheriff’s Office. However, on June 1, 2019, after Pineda-Anchecta paid the bond amount set by a state magistrate judge, the Mecklenburg County Sheriff’s Office did not honor the detainer, released Pineda-Anchecta, and did not notify ICE about his release from custody.
According to the criminal complaints, on or about June 2, 2019, ICE deployed members of its Charlotte-based Fugitive Operations Team and special agents from the Charlotte Homeland Security Investigations office to locate Pineda-Anchecta. The team located and arrested Pineda-Anchecta and Aguillar-Arevado on immigration violations while they were sitting in a vehicle that contained a loaded firearm and firearm ammunition.
Pineda-Anchecta and Aguillar-Arevalo will have their initial appearance in federal court in the coming days. The illegal reentry charge carries a maximum prison term of 2 years and a $250,000 fine. The unlawful possession of a weapon by an alien charge carries a maximum prison sentence of 10 years and a $250,000 fine.
The charges contained in the complaints are allegations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray thanked ICE’s Enforcement and Removal Operations and ICE’s Homeland Security Investigations.
Assistant U.S. Attorney Kenneth Smith is in charge of the prosecution.
Two Defendants Sentenced in Columbus on PSN Charges, A Third Enters Guilty Plea on PSN ChargeRead the Press Release
COLUMBUS – Two defendants involved in separate felony gun cases were sentenced for their crimes this morning, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Devante Patterson, 25, of Columbus, pleaded guilty to one count of Theft for a Federal Firearms Licensee and was sentenced today to 27 months imprisonment by the Honorable Clay D. Land plus three years supervised release and $3,793 in restitution for stealing nine guns from an area firearms dealer in 2017. Corneilous Hixson, 22, of Columbus, was sentenced to 57 months imprisonment by U.S. District Judge Land for one count of Possession of a Firearm by a Convicted Felon for a 2018 shooting in a Columbus neighborhood. There is no parole in the federal system. Another defendant, Dadge William Parrish, 33, of Columbus, pleaded guilty to one count of Possession of a Firearm by a Convicted Felon before Judge Land today. All three separate cases fall under Project Safe Neighborhoods (PSN), a Department of Justice initiative to reduce violent crime.
Mr. Patterson admitted that in the early hours of November 24, 2017, he broke into Shooters of Columbus, a business possessing a federal firearms license to deal in firearms. Once inside, the defendant stole a total of nine firearms, including pistols and rifles. Later that same day, the defendant was arrested attempting to sell some of the stolen firearms at a Columbus pawn shop.
In April 2018, Mr. Hixson was apprehended by police shortly after it was reported that he had opened fire on a nearby residence. A loaded .380 caliber pistol was removed from his waistband. At the time of his arrest, Hixson had three separate prior felony convictions in the state system for which he was on active probation.
Mr. Parrish admitted in his signed plea agreement that he was found in possession of a semiautomatic pistol when police pulled him over following a chase in March 2018. Mr. Parrish was convicted in August 2004 on the felony charges of Hijacking by Motor Vehicle and Kidnapping in Treutlen County Superior Court.
“Removing guns from the hands of violent criminals is an essential piece of our effort to reduce violent crime in Columbus and across the Middle District,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Our office will remain focused on PSN related cases, with the goal to ultimately make our communities safer. I want to especially thank the Columbus Police Department for their good work in both cases, and protecting the citizens of Columbus from further harm.”
All cases were prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mr. Patterson’s case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Department (CPD) and Assistant U.S. Attorney Michael Solis prosecuted this case for the Government. Mr. Hixson’s case was investigated by CPD and ATF and was prosecuted by Assistant U.S. Attorney Crawford Seals. Mr. Parrish’s case was investigated by Georgia State Patrol and ATF. Assistant U.S. Attorney Amy Helmick is prosecuting the case for the Government.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Tioga County Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
BINGHAMTON, NEW YORK – Mahkya Searles, 23, of Tioga County, New York, pled guilty in United States District Court to receipt and possession of child pornography, announced 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). Searles will remain in the custody of the United States Marshal’s Service pending sentencing by Senior United States District Judge Hon.Thomas J. McAvoy on September 26, 2019.
In pleading guilty, Searles admitted that, from in or about April of 2018 through on or about March 10, 2019, he searched for and downloaded child pornography from the Internet, and that on March 20, 2019 he possessed more than 30 images of child pornography on his phone, some of which involved prepubescent minors.
Searles faces a sentence of between 5 and 20 years in prison, a fine of up to $250,000 and a term of supervised release of at least 5 years and up to life. Upon release from imprisonment, Searles must also register as a sex offender. 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.
This case was investigated by the Tioga County Sheriff’s Department, Athens Police Department, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Kristen Grabowski, as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Syracuse Man Sentenced to 25 Years for Distributing, Receiving and Transporting Child Pornography and Violating Supervised ReleaseRead the Press Release
SYRACUSE, NEW YORK – Christopher Martinelli, 40, of Syracuse, was sentenced to serve a total of twenty‑five years in prison, to be followed by a lifetime of supervised release, for distributing, receiving, and transporting child pornography and violating supervised release. The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Acting Superintendent Keith Corlett.
As part of his guilty plea, Martinelli admitted to knowingly exchanging sexually explicit photographs with a fourteen-year-old girl over the Internet, as well as trading child pornography online while on supervised release from a prior federal felony conviction. That prior conviction from January 14, 2011 was for Martinelli’s failure to register as a sex offender, for which he was sentenced to serve 14 months imprisonment, to be followed by a ten-year term of supervised release. Martinelli was required to register as a sex offender based upon a child pornography adjudication under the Uniform Code of Military Justice that was imposed while he was serving in the U.S. military.
In the current case, Chief United States District Court Judge Glenn T. Suddaby sentenced Martinelli to serve 240 months’ imprisonment for his child pornography crimes and 5 years’ imprisonment for violating the conditions of his supervised release by committing those crimes. Judge Suddaby ordered that the terms of imprisonment be served consecutively, for a total of twenty‑five years’ imprisonment.
This case was investigated by the United States Probation Office, the New York State Police Major Crimes Unit, and the FBI Syracuse Mid-State Child Exploitation Task Force, a federal task force that investigates cases involving the sexual exploitation of children. The task force consists of FBI Special Agents and New York State Police Investigators from Troop D, Bureau of Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Carina H. Schoenberger.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
St. Clair Man Sentenced to 40 years for Child Exploitation CrimesRead the Press Release
A St. Clair man was sentenced to 40 years’ imprisonment for convictions of producing child pornography and receiving child pornography online, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Acting Special Agent in Charge Angie Salazar of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.
According to court records, Thomas Alan Stubbs, 50, pleaded guilty in September, 2018 to sexual exploitation crimes. He admitted that he molested and took sexually explicit photographs of a six year old child. He also admitted to downloading child pornography from the internet. The defendant was apprehended by the Detroit U.S. Marshalls Service in Las Vegas, Nevada, after fleeing the state to avoid prosecution.
This case was investigated by Special Agents of Homeland Security Investigations. The case is part of the Project Safe Childhood initiative, and was prosecuted by Assistant United States Attorney Maggie Smith.
South Carolina Teacher Pleads Guilty to Distributing Child PornographyRead the Press Release
ALEXANDRIA, Va. – A South Carolina school teacher pleaded guilty yesterday to conspiring to distribute child pornography.
According to court documents, Eric Hartley, 37, of Fort Hill, used various internet applications, including Kik and Dropbox, to send and receive child pornography. One of the individuals with whom Hartley traded child pornography was Jeramy Routh, who pleaded guilty to conspiring to distribute child pornography in May. Routh and Hartley discussed trading exploitative images of children, including infants and toddlers, and did in fact exchange images and videos as well as access to cloud based accounts of child pornography.
Hartley faces a mandatory minimum of five years in prison and a maximum penalty of 20 years when sentenced on September 27. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Whitney Dougherty Russell is prosecuting 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. 1:19-cr-170. Information on Jeramy Routh’s case can be located on PACER by searching for Case No. 1:19-cr-142.
Silicon Valley Computer Executive Convicted of Defrauding Investors After Soliciting Money via CrowdfundingRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a Silicon Valley businessman of defrauding investors in his computer companies after soliciting and obtaining some of the money via crowdfunding.
JEFFREY BATIO, 50, of Santa Clara, Calif., was found guilty Friday of all 12 counts against him, including six counts of mail fraud and six counts of wire fraud. Each count is punishable by a maximum sentence of 20 years in prison. U.S. District Judge Rebecca R. Pallmeyer set sentencing for Sept. 3, 2019.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorneys Jacqueline Stern and Matthew Schneider.
Batio owned and controlled two computer businesses, Armada Systems LLC and Idealfuture Inc. The companies claimed to produce a portable computer that would combine a laptop, tablet and smart phone into one device. The 3-in-1 apparatus was known at various times by the names Stealth, IF Convertible, and Dragonfly Futurefon. The companies also claimed to produce a device called the Radian, which was billed as a multi-screen laptop computer.
Evidence at trial revealed that for more than a decade Batio made material misrepresentations about his companies and products. For example, Batio falsely claimed that Armada and Idealfuture had completed the engineering on the 3-in-1 computer and the multi-screen system, and that the products were close to being brought to market. In reality, Batio knew the products were not complete and that production would not start within the promised timeframe. Batio also claimed to be involved in discussions with large technology companies concerning partnership deals, licensing arrangements and marketing agreements, when, in fact, Batio’s contacts with those companies typically consisted of nothing more than his opening sales pitch.
The fraud scheme began in 2003 and continued until 2016. Batio originally sold membership shares in his companies and offered his products for advance sales that were never fulfilled. From 2003 to 2014, Batio defrauded victims out of $5 million. As the years passed and he failed to produce or license any products, Batio in 2014 began to solicit funds on the crowdfunding website Indiegogo.com. From 2014 to 2016, Batio raised more than $700,000 on Indiegogo from investors all over the world by fraudulently promoting and selling the 3-in-1 device.
Shreveport resident pleads guilty to possessing two loaded firearms during traffic stopRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Marcell Deangelo Lewis, 24, of Shreveport, appeared before U.S. Magistrate Judge Mark L. Hornsby on Monday and pleaded guilty to being a felon in possession of firearms.
According to the guilty plea, on March 19, 2018, a Shreveport Police officer conducted a traffic stop on Lewis’ vehicle on Interstate 49 near Hollywood street for a speeding violation. After making contact with Lewis, the officer immediately smelled marijuana and conducted a search of the vehicle. The officer found a Colt, Model: Trooper MKIII, .357-caliber revolver loaded with six rounds in the center console and a Glock, Model: 23, .40-caliber pistol loaded with 21 rounds of ammunition on the passenger floorboard. Lewis claimed ownership of both firearms.
Lewis was convicted on December 12, 2018 in Caddo Parish District Court for possession with intent to distribute marijuana. Under federal law, a felon is prohibited from possessing a firearm or ammunition.
Lewis faces up to 10 years in prison, three years of supervised release and a $250,000 fine. Sentencing for Marcell Lewis is scheduled for September 12, 2019.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Saint Louis Man Pleads Guilty for his Involvement in Two Armed Carjackings and Death of Desmet High School Football CoachRead the Press Release
St. Louis, MO – Floyd Barber, 23, of Saint Louis, MO, pleaded guilty to two counts of carjacking, one count of using a firearm in furtherance of one carjacking, and one count of using a firearm in furtherance of the second carjacking where death resulted. Barber appeared today before U.S. District Judge Ronnie L. White who accepted his plea and set his sentencing date for September 5, 2019.
According to the plea agreement, on September 9, 2017, Barber was involved in the armed carjacking of a Kia Optima with two occupants in the 5900 block of Cote Brilliant in the City of Saint Louis. During the carjacking, Barber entered the vehicle and drove it from the area, among other things.
On October 16, 2017, Barber was involved in the armed carjacking of a Jeep Grand Cherokee being driven by Jaz Granderson, a football coach at Desmet Jesuit High School. Barber was present as Granderson was shot and killed during the course of the carjacking.
The first armed carjacking charge carries a maximum term of 15 years imprisonment. The second armed carjacking charge carries a maximum term of life imprisonment. As for the firearm charges, Barber faces a mandatory minimum term of imprisonment of 7 years for the first and 10 years for the second firearm charge. Each firearm sentence must be imposed consecutively to each other and the carjacking sentences. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. As part of Barber’s plea agreement, the parties intend to recommend a 30-year sentence at sentencing.
The Saint Louis Metropolitan Police Department and United States Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating this case.
Richland County Man Gets over 20 Years for Trafficking MethamphetamineRead the Press Release
Michael F. Jones, 41, of Olney, Illinois has been sentenced to 262 months in federal prison on methamphetamine-related charges, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today.
Jones previously pleaded guilty to five counts in a federal indictment. Count 1 charged that from April to October 2018, Jones conspired with others to distribute 50 grams or more of methamphetamine. Counts 2 through 5 charged Jones with distributing methamphetamine on various dates in October 2018. All of Jones’s crimes occurred in Richland County, Illinois.
The investigation was conducted by the Richland County Sheriff’s Office.
Rhode Island Resident Admits Participation in International Telemarketing Scam Targeting Elderly CitizensRead the Press Release
PROVIDENCE, RI – A Rhode Island man admitted in federal court on Monday to participating in an international telemarking scam operating out of Jamaica that primarily targets and victimizes elderly U.S. citizens. The scam leads victims, who are contacted by telephone, to believe they have won cash or prizes in a lottery or sweepstakes. However, they are told their winnings will not be released to them without upfront payment of taxes or fees.
Appearing before U.S. District Court Chief Judge William E. Smith, Shawn Whitfield, 48, of Pawtucket, R.I., admitted to receiving $109,675 in upfront payments from individuals who had been victimized by the scam from April 2015 to February 2018. The majority of funds collected by Whitfield were transferred electronically to co-conspirators and others, often times to individuals in Jamaica.
At least 20 of the individuals who sent money to Whitfield via United States Postal packages, money grams, and Western Union wire transfers, were over the age of 55. Among the payments sent to Whitfield was a check for $25,000.
Whitfield pleaded guilty to conspiracy to commit wire fraud, wire fraud, and mail fraud, announced United States Attorney Aaron L. Weisman and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Boston Division.
“Telemarketing fraudsters have only one mission, to con people out of their money. Often times, the elderly are their most targeted victims,” noted United States Attorney Aaron L. Weisman. “The Department of Justice’s Elder Justice Initiative, among other things, coordinates the investigation and prosecution of financial scammers that target older Americans. Unscrupulous individuals like Mr. Whitfield will be held accountable for their actions.”
“Almost anyone under the right circumstances can fall for a phony offer or promotion, however, older Americans are usually more susceptible than others,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “Scammers like Whitfield lure victims in with promises of large financial winnings that are hard to turn down. The financial devastation some victims face is irreversible. Postal Inspectors here in Rhode Island and across the country are working hard to prevent others from falling victim to scams like these.”
USPIS agents, assisted by members of the Pawtucket Police Department, Rhode Island State Police, and the U.S. Marshals Service, executed a court-authorized search of Whitfield’s residence on February 20, 2018. Simultaneously, Whitfield was arrested at his place of employment in Norwood, Mass., by USPIS agents, with the assistance of members of the Norwood Police Department.
Whitfield is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 27, 2019.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton, Elder Justice Coordinator for the United States Attorney’s Office for the District of Rhode Island.
If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
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Repeat Sex Offender Sentenced to Ten Years in Prison for Possession of Images of Child Rape and MolestationRead the Press Release
A 45-year-old Auburn, Washington man who used peer-to-peer software to share more than 2800 images of sexual assaults of children was sentenced to ten years in prison today, announced U.S. Attorney Brian T. Moran. JEREMY JAMES CHERRY, has a 2001 King County Superior Court conviction for rape of a child and attempted possession of child pornography. He served eight years in prison and participated in sex offender treatment. However, in March 2018, a Seattle Police Department Detective identified CHERRY as the owner of a computer that shared more than 2800 images of child pornography between August 2017 and March 2018. At the sentencing hearing U.S. District Judge John C. Coughnour said he was imposing the ten year sentence because of CHERRY’s prior hands-on offense against children.
According to records filed in the case, CHERRY was 27-year-old and acting as an in- home caregiver for three young children when one of them disclosed the sexual molestation. CHERRY pleaded guilty to rape of a child, and to attempted possession of child pornography. He served eight years in prison. CHERRY admitted that after sex offender treatment between 2010 and 2013, and once he completed his community supervision, he began seeking out child pornography again.
CHERRY was identified as part of Operation Broken Heart. Operation Broken Heart resulted in the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide operation conducted by 61 Internet Crimes Against Children (ICAC) task forces. During March, April and May of 2018, the ICAC task forces investigated more the 25,200 complaints of technology-facilitated crimes against children.
The case was investigated by the Seattle Police Department and the Department of Homeland Security Investigations and was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Registered Sex Offender Sentenced to Nine Years in Prison for Transporting Images of Child Rape and AbuseRead the Press Release
A former cheerleading coach, who has a prior state conviction for possession of child pornography, was sentenced today in U.S. District Court in Seattle to nine years in prison for transporting child pornography, announced U.S. Attorney Brian T. Moran. LEONARD BERNARD LEWIS, 33, of Seattle, pleaded guilty in February 2019, admitting that he transported images of child rape and abuse on his personal electronic devices when he traveled from Seattle to London on March 1, 2018. U.S. District Judge John C. Coughenour imposed ten years of supervised release to follow the prison term.
According to records filed in the case, LEWIS was traveling to England to continue his career as a cheer coach. When he arrived and attempted to clear customs at Gatwick Airport, a United Kingdom Border Force Officer asked to examine LEWIS’ cell phone. After being given the password, the officer found several images of child pornography. The cell phone, two laptop computers and LEWIS’ PlayStation 4 were seized by law enforcement and LEWIS was detained. LEWIS was sent back to the U.S. the next day, and his electronic devices were delivered to Homeland Security Investigations. Forensic examination of LEWIS’ electronic devices revealed more than 5,000 images and 2,000 video files of child pornography.
The investigation determined that despite his sex offender status, which prohibited him from working with children, LEWIS had been employed at a local gymnastics facility. Between 2016 and 2018, LEWIS was employed as a cheer coach at the gym. LEWIS had used a relative’s Social Security Number so that the facilities’ background check did not reveal LEWIS’ registered sex offender status. LEWIS has been a registered sex offender since 2012 when he was convicted of possession of child pornography.
As Special Assistant United States Attorney Cecelia Gregson wrote in her sentencing memo, despite his earlier conviction LEWIS continued to seek out images of child rape and abuse and “to engage in conduct that undoubtedly supported an industry thriving on the sexual exploitation and misery of children.”
The case was investigated by Homeland Security Investigations and was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Rap Artist “Chad Focus” Facing Federal Indictment for Wire Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Chad Arrington, a/k/a “Chad Focus,” age 31, of Randallstown, Maryland, on federal charges of conspiracy, wire fraud, and aggravated identity theft in connection with allegations that he used a company credit card to make over $4.1 million in unauthorized purchases. The indictment was returned on May 29, 2019, and was unsealed at his initial appearance today.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment, Arrington was employed by Company 1 as a Search Engine Optimization (“SEO”) Specialist from approximately 2011 to August 2018. As an SEO Specialist, Arrington was responsible for promoting and marketing Company 1’s products and services online. Company 1 assigned Arrington an American Express company credit card (the “credit card”) after Arrington signed an agreement in which he agreed to use the credit card only for business expenses related to Company 1.
The indictment alleges that from at least January 2015 through August 2018, Arrington and four co-conspirators used the credit card for fraudulent purchases, including to promote the Chad Focus brand and to make unauthorized purchases that benefitted them each personally. According to the indictment, Arrington used the credit card to make over $1.5 million in unauthorized purchases from entities and accounts controlled by Co-Conspirator 2 and Co-Conspirator 3, and then Co-Conspirator 2 and Co-Conspirator 3, in turn, kicked back hundreds of thousands of dollars to Arrington by funneling cash payments to Arrington and to accounts controlled by Arrington.
For example, the indictment alleges that Arrington used the credit card to purchase sound equipment, studio kits, instruments, and music technology, which he then used to create an artist alter-ego “Chad Focus,” and produce a number of hip-hop songs through the company he formed, Focus Music Entertainment LLC. Arrington allegedly used the credit card to make additional unauthorized purchases: from online streaming platforms that offered services for artists to pay to have the platforms artificially increase Arrington’s song play counts on other music platforms; to purchase “likes,” “followers,” “tags,” and “views” across social media and viewing platforms; to purchase services from a company that promoted mixtape videos and singles, his image, and music; and to make unauthorized payments to multiple billboard companies to display images of Arrington and his website throughout the United States and to promote Chad Focus and Focus Music Entertainment LLC. Arrington allegedly utilized the credit card to make more than $250,000 in purchases related to a bike-sharing business, including electric bikes, hover boards, and scooters. The indictment further alleges that Arrington used the credit card for concert tickets, various unauthorized international and national travel expenses, including hotels, airfare, restaurant bills, luxury vehicle rentals, and nightlife expenses, and for travel expenses and airline tickets for the benefit of Co-Conspirators 1 and 2.
In order to conceal the scheme, Arrington allegedly asked Co-Conspirator 1 and Co-Conspirator 4 to use computer software to make false entries on the credit card billing statements in order to conceal the recipient of the payments from Arrington’s supervisor and Company 1. In addition, the indictment alleges that Arrington forged the signature of his supervisor on his credit card billing statements to make it appear as though he had received approval for certain purchases when, in fact, he had not. According to the indictment, Arrington then sent those false payment authorizations to other employees who relied on the authorizations to ultimately pay off the outstanding balance of the credit card.
If convicted, Arrington faces a maximum sentence of 20 years in prison for the wire fraud conspiracy and for each of two counts of wire fraud; and a mandatory minimum of two years in prison, consecutive to any other sentence, for each of four counts of aggravated identity theft. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Stephanie Gallagher ordered that Arrington be detained pending a detention hearing scheduled for June 7, 2019, at 2:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Mary W. Setzer, who are prosecuting the case.
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RI Woman Admits to Selling Prescription Narcotics on the Dark WebRead the Press Release
PROVIDENCE – A Lincoln, R.I., woman today admitted to operating a home-based business that illegally sold prescription narcotics through a Dark Web marketplace that she then shipped to customers through the U.S. Postal Service. Customers paid for their purchases with Bitcoin that she later converted to cash.
Monique Jodoin, 59, admitted to the Court that her company, “Tabletmagic,” sold illegal prescription narcotics through the Dark Web marketplace “DreamMarket.” Dating back to May 4, 2017, the “Tabletmagic” account listed 1,700 transactions and offered prescription narcotics such as OxyContin, oxycodone, hydrocodone, Suboxone, Subutex, Adderall, Ritalin, morphine, Vyvanse, Xanax, and Zolphidem.
Jodoin converted the Bitcoin proceeds from her “DreamMarket” account into U.S. currency through a Florida-based cryptocurrency exchange. On at least two occasions, the cryptocurrency exchange mailed packages containing substantial sums of cash to Jodoin’s home.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Jodoin pleaded guilty to seven counts of attempt to distribute a controlled substances, five counts of possession with intent to distribute a controlled substance, and two counts of money laundering, announced United States Attorney Aaron L. Weisman, Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Boston Division, and Jeffrey J. Ebersole, U.S. Food & Drug Administration Office of Criminal Investigations (FDA-OCI) New York Field Office.
According to information presented to the Court, in October 2017, the Postmaster of the Manville, R.I. Post Office alerted USPIS agents that an individual, later identified as Jodoin, was shipping a large number of suspicious “click-n-ship” parcels to individuals around the country. The Postmaster noted that the name and address on the “click-n-ship” labels were fictitious and that the woman dropping off the packages at the post office was not the same person listed as the sender.
During an investigation by USPIS agents, some of the packages shipped by Jodoin were seized and searched pursuant to a court-authorized search warrant. The packages were found to contain various controlled substances. In February 2018, agents executed a court-authorized search of Jodoin’s home and, among other items, seized numerous and varied controlled substances, numerous prescription bottles in other people’s names, boxes of invoices of customer orders, an alphabetized card catalog of customers, Bitcoin receipts and ledgers, $70,000 in cash – bundled and labeled, and $1,460 on Jodoin’s person.
Jodoin is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on August 20, 2019.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The matter was investigated by agents from the USPIS and the FDA-OIC.
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Pennsylvania Anesthesiologist Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A Pennsylvania anesthesiologist pleaded guilty today to filing a false income tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
James G. Allen Jr., 53, admitted as part of his guilty plea that he filed false tax returns for himself and his wife for the years 2010 through 2017 with the Internal Revenue Service (IRS). He failed to report more than $3 million that the pair earned as anesthesiologists on their tax returns. According to the plea agreement, the false tax returns that Allen filed caused a loss to the government of more than $900,000.
Allen admitted that the false tax returns were based on a tax fraud scheme promoted by Peter Hendrickson in his book, Cracking the Code. Hendrickson was convicted of filing false tax returns in 2009 and sentenced to prison.
U.S District Judge Arthur J. Schwab set sentencing for Nov. 12, 2019. Allen faces up to three years in prison and a $250,000 fine. As part of his plea, Allen has agreed to pay restitution to the IRS in the amount of $902,721.45.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind and Carl F. Brooker, IV of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website at www.justice.gov/tax.
Olean Man Indicted for Seeking Naked Pictures of Young Girls on Social MediaRead 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 a federal grand jury has returned an indictment charging Shane Guay, 28, of Olean, NY, with receipt and production of child pornography, and enticement of a minor. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, and a $250,000 fine.
Special Assistant U.S. Attorney Jeremy Murray, who is handling the case, stated according to the indictment, in November 2016, the Ayer and Shirley, Massachusetts Police Departments received reports that approximately fifteen 6th grade females attending the Ayer/Shirley Middle School had received unsolicited messages of a sexual nature from a male only known as “George” on the social media application Instagram. According to incident reports obtained from both the Ayer and Shirley Police Departments “George” attempted to solicit sexually explicit images from the minor victims. To some of the minor females, “George” at first alleged to be a lesbian minor female, and sent topless images of a minor female to the victims before sending graphic photos of a male to the minor females. Investigators traced the Instagram account of “George” to the defendant. Subsequently, the New York State Police (NYSP) received all of the case materials from the Ayer/Shirley, Massachusetts investigation.
On April 17, 2018 Homeland Security Investigations (HSI) Buffalo received an investigative lead from the Harris County, Georgia Sheriff's Office, which identified two 12-year-old females from Harris County, GA, who reported receiving unsolicited pictures and videos of a naked adult male from two Instagram users. Both Instagram accounts were traced to Guay.
On June 5, 2018, the NYSP and HSI Buffalo executed a state search warrant at the defendant’s North Street residence in Olean. Investigators seized 26 items of electronic evidence seized, including two cellular telephones, which contained multiple sexually explicit images. In total, 154 image files and five video files containing suspected child pornography were located on the seized devices. The investigation also determined that Guay sent sexual messages a minor female in Cape Town, South Africa.
The defendant was arraigned before U.S. Magistrate Judge H. Kenneth Schroder.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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.
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Ohio man admits to crossing state lines to have illegal sexual contactRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Vincent Scott, of Hudson, Ohio, has admitted to a sex charge, United States Attorney Bill Powell announced.
Scott, age 31, pled guilty last week to one count of “Travel with Intent to Engage in Illicit Sexual Conduct.” Scott admitted to traveling from Ohio to Harrison County, West Virginia, to engage in illegal sexual conduct in February 2019.
Scott faces up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae Demasi-Lemon is prosecuting the case on behalf of the government. The Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
North Canton man indicted for defrauding Medicare and Medicaid out $2 million, including allegedly billing for services performed on patients who were already deceasedRead the Press Release
A North Canton man was indicted for defrauding Medicare and Medicaid of approximately $2 million by billing for X-ray services that were not provided by his company, Portable Radiology Services.
Thomas G. O’Lear, 55, was charged with 25 counts of health care fraud and one count of false statements relating to health care matters.
O’Lear was the president of Portable Radiology Services, or PRS. The company had locations in Canton, North Canton, Uniontown and Cleveland. PRS provided portable X-ray related services to individuals residing in nursing homes, skilled nursing facilities and long-term care facilities, according to the indictment.
O’Lear billed Medicaid and Medicare for X-ray services that PRS did not provide, including billing on approximately 151 occasions for having provided X-rays to deceased patients on dates that were after the patients had passed away, according to the indictment.
This occurred between approximately January 2013 and December 2017, according to the indictment.
O’Lear also allegedly attempted to cover up the health care fraud scheme by forging the signatures of medical professionals to falsely make it appear that services that PRS did not provide to patients, and that O’Lear billed the government for, were actually provided to patients, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Brendan D. O’Shea and Mark S. Bennett, following an investigation by the United States Department of Health and Human Services -- Office of the Inspector General, the FBI, and Special Assistant U.S. Attorney Jonathan L. Metzler and Special Agent Jeremy Buening of the Medicaid Fraud Control Unit of the Ohio Attorney General’s Office.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New York Bookkeeper Admits Assisting Restaurant Owner Evade Federal TaxesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that IDALECIA LOPES SANTOS, 59, of Queens Village, New York, waived her right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, Santos worked as an outside bookkeeper for Bruno DeFabio, an owner of several pizza restaurants in Connecticut and New York, including Pinocchio Pizza LLC, doing business as Pinocchio Pizza in New Canaan, Connecticut; Top Oven Restaurant Corp., doing business as Pinocchio Pizza in Wilton, Connecticut; DiFabio Brothers Pizza Corp., doing business as Amore Pizza in Scarsdale, New York; Odell Pizza, Inc., doing business as Amore Cucina and Bar in Stamford, Connecticut; Nepperhan Restaurants Group, Inc., doing business as ReNapoli Pizza, in Old Greenwich, Connecticut, and Homefield Restaurant Corp., doing business as Pinocchio Pizza in Pound Ridge, New York. During the times at issue, Santos was employed by two different New York-based accounting firms.
As a bookkeeper, Santos worked directly with DiFabio and his employees to determine relevant revenue, payroll and other operating figures for DiFabio’s businesses, and to assist in the preparation of corporate tax returns for the businesses, quarterly tax reporting regarding employee payroll, and the personal income tax returns for the owners.
In pleading guilty, Santos admitted that she and others at the accounting firms knew that DiFabio and his businesses engaged in a practice whereby cash was removed from the cash registers and not deposited into the restaurants’ operating bank accounts. Despite this knowledge, the accounting firms used the bank records to determine gross receipts of the businesses, and the cash that was removed from the registers was not reported to the IRS. This resulted in the understatement of income and taxes owed on DiFabio’s personal income tax returns.
Santos and others at her accounting firms, who assisted in the preparation of work papers and other documents used for tax return preparation, were also aware that DiFabio and his businesses used cash removed from the registers to pay certain wages for DiFabio and employees without reporting those amounts to the IRS. Certain employees had their entire wages paid “off the books,” while a portion of other employees’ wages was not reported. This resulted in the manipulation of net income reported to the IRS and the underpayment of withholding taxes to the IRS.
The charge of tax evasion carries a maximum term of imprisonment of five years. A sentencing date is not scheduled. Santos is released pending sentencing.
On October 25, 2018, DiFabio pleaded guilty to one count of conspiracy to file false income tax returns and payroll tax returns. When he pleaded guilty, he agreed that the loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years was $816,954. DiFabio awaits sentencing.
On September 24, 2018, DiFabio’s business partner in some of his restaurants, Steven Cioffi, pleaded guilty to one count of aiding and assisting in the filing of a false tax return. He also awaits sentencing.
This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
New Jersey Man Sentenced to Six-Year Prison Term for Possessing CocaineRead the Press Release
PITTSBURGH - A former resident of Patterson, New Jersey, has been sentenced in federal court in Pittsburgh to six years’ (72 months’) imprisonment, followed by five years of supervised release, on his conviction of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Duane Ferguson, 42.
According to information presented to the court, on or about April 21, 2016, Ferguson and his co-defendant, Andy Brown, possessed with intent to distribute 5 kilograms or more of cocaine, a Schedule II controlled substance. Andy Brown, of Pittsburgh, PA, who was the more culpable co-defendant and in charge of the drug-trafficking activities, was sentenced previously to 12 years’ incarceration.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Ferguson.
NYS Corrections Officer Charged with Receipt and Possession of Child PornographyRead 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 Joseph Chojnacki, 26, of Cheektowaga, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeremy Murray, who is handling the case, stated according to the indictment, after receiving a tip of suspected child pornography from the National Center for Missing and Exploited Children, Homeland Security Investigations traced the suspected child pornography to the defendant, a New York State Corrections Officer.
On May 9, 2019, a federal search warrant was executed at Chojnacki’s Louis Street residence. Investigators seized various computers, electronic devices, and electronic media. After a preliminary review, 8,500 images and 200 videos of suspected child pornography have been identified.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and will be released on home detention.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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.
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Mineral County woman admits to role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gypsy Rene Winkler, of Keyser, West Virginia, has admitted to her involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Winkler, age 26, pled guilty last week to one count of “Possession with Intent to Distribute Methamphetamine.” Winkler admitted to distributing methamphetamine fin March 2018 in Hampshire County.
Winkler faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Mexican National Sentenced for Passport FraudRead the Press Release
BOSTON – A Mexican national was sentenced yesterday in federal court in Boston for passport fraud.
Patricia Cedeno-Larios, 52, a Mexican national residing in Haverhill, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to time served and was immediately taken into administrative custody by Homeland Security Investigation agents pending deportation. In December 2018, Cedeno Larios pleaded guilty to making false statements in a passport application.
In March 2008, Cedeno Larios entered a Boston post office and used the name, date of birth, and Social Security number of a United States citizen from Puerto Rico to apply for a United States passport.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration Office of Inspector General made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Criminal Division prosecuted the case.
Mexican National Enters Plea to Assaulting a Federal OfficerRead the Press Release
BROWNSVILLE, Texas – A 39-year-old Mexican National has admitted he injured a Border Patrol (BP) agent by hitting him with arm shackles, announced U.S. Attorney Ryan K. Patrick.
On April 1, 2019, Salvador Ramirez-Olvera was in custody at the Brownsville BP station for illegal entry. While awaiting transfer to federal court, he slipped out of his arm shackles and hit the agent with them. The agent was hit on his shoulder area, thus causing bodily injury.
After a brief struggle, officers had to use a taser to control Ramirez-Olvera.
He was then arrested and charged with assaulting a federal agent who was engaged in the performance of his official duties.
He has been and will remain in custody pending his sentencing, which is set for Sept. 4, 2019, before U.S. District Judge Rolando Olvera. At that time, Ramirez-Olvera faces up to 20 years in federal prison.
The FBI conducted the investigation. Assistant U.S. Attorney Jose A. Esquivel Jr. prosecuted the case.
McKeesport Felon Charged with Illegal Gun PossessionRead the Press Release
PITTSBURGH, PA - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count indictment named David Belton, 37, as the sole defendant.
According to the Indictment, on May 30, 2019, David Belton possessed a Fabrique Nationale Herstal semi-automatic handgun. It is unlawful for Belton, who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm.
The law provides for a maximum total sentence of ten years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Allegheny County Sheriff’s Office, and the McKeesport Police Department conducted the investigation leading to the indictment in this case.
The case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Massachusetts Man Pleads Guilty to Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK - Joseph Defilippi, 55, of Chicopee, Massachusetts, pled guilty to one count of attempted online enticement of a minor, announced United States Attorney Grant C. Jaquith and James Hendricks, Special Agent in Charge of the Albany, New York Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Defilippi admitted that between about February 2018 and August 10, 2018, he exchanged multiple online communications with an undercover officer posing as a 13-year old boy “Dylan”. Defilippi further admitted that his online communications were intended to persuade, induce, entice and coerce the boy into meeting with him for the purpose of engaging in sexual acts, and that on the morning of Friday, August 10, 2018, he travelled to the Schuyler Flatts Park in Menands, New York, in an effort to meet the child.
As a result of his conviction, Defilippi now faces a mandatory minimum sentence of ten (10) years imprisonment, a maximum term of life imprisonment, a fine of up to $250,000.00, a term of supervised release of at least five years and up to life, and mandatory registration as a sex offender. 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. Sentencing is scheduled for October 15, 2019 before Senior U.S. District Judge Thomas J. McAvoy in Albany, New York.
This case is being investigated by the FBI and the Town of Colonie (New York) Police Department, and is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Joshua Rosenthal.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Marshall County man indicted for drugs and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Dustin L. White, of Moundsville, West Virginia, was indicted by a federal grand jury today for a drugs and firearms charges, United States Attorney Bill Powell announced.
White, age 31, is charged with one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine and Methamphetamine,” one count of “False Statement to Acquire Firearm,” three counts of “Unlawful Possession of a Firearm,” one count of “Possession with Intent to Distribute Cocaine,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Unlawful Possession of Firearms in Futherance of Drug Trafficking.” White is accused of distributing cocaine and methamphetamine from July 2018 to March 2019 in Marshall County and elsewhere. White, a person prohibited from having firearms, is also accused of possessing a two pistols, a revolver, and a shotgun in Marshall County in February and March 2019.
White faces five years to life incarceration and a fine of up to $250,000 for the firearm during drug trafficking charge, up to 20 years incarceration and a fine of up to $250,000 for the conspiracy charge and the methamphetamine charge, and up to 10 years incarceration and a fine of up to $250,000 for the cocaine and other firearms counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Marshall County man indicted for drugs and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Joshua R. Sipe, of Moundsville, West Virginia, was indicted by a federal grand jury today for a drugs and firearms charges, United States Attorney Bill Powell announced.
Sipe, age 30, is charged with one count of “Possession with Intent to Distribute Cocaine,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Unlawful Possession of a Firearm.” Sipe is accused of distributing cocaine and methamphetamine in March 2019 in Marshall County. Sipe, a person prohibited from having firearms, is also accused of possessing a .357 revolver in Marshall County in March 2019.
Sipe faces up to 20 years incarceration and a fine of up to $250,000 for the drug charges and up to 10 years incarceration and a fine of up to $250,000 for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manchester Man Pleads Guilty to Gun CrimeRead the Press Release
CONCORD, N.H. – Kenneth Kirkpatrick, 33, of Manchester, pleaded guilty in federal court on Monday to illegally possessing a firearm and ammunition, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, law enforcement officers obtained information that Kirkpatrick was selling firearms. On July 26, 2018, Kirkpatrick sold a firearm, ammunition, and firearm accessories to an individual who was cooperating with the ATF. As a convicted felon, Kirkpatrick could not lawfully possess a firearm or ammunition.
Kirkpatrick’s sentencing has not yet been scheduled.
“In order to keep violent crime under control, we must keep firearms out of the hands of criminals,” said U.S. Attorney Murray. “Prohibiting convicted felons from owning guns advances this goal. Through Project Safe Neighborhoods, we work closely with our law enforcement partners to identify and prosecute those who unlawfully possess firearms.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Sentenced to 30 Years in Federal Prison for Sexual Assault Committed on the Ute Mountain Ute ReservationRead the Press Release
DURANGO -- Merle Denezpi, age 39, of Shiprock, New Mexico, was sentenced yesterday by U.S. District Court Judge Robert E. Blackburn to serve 360 months (30 years) in federal prison, followed by 10 years on supervised release, for committing aggravated sexual assault in Towaoc, Colorado, announced U.S. Attorney Jason Dunn. Denezpi appeared at the sentencing hearing in custody, and was remanded at its conclusion. A federal jury found Denezpi guilty of the crime following a week-long trial before Judge Blackburn in Durango, Colorado on March 1, 2019.
Denezpi was indicted by a federal grand jury on June 7, 2018, for one count of Aggravated Sexual Assault within the exterior boundaries of the Ute Mountain Ute Indian Reservation, near Towaoc, Colorado. According to court documents, as well as facts presented during trial and at sentencing, Denezpi used physical force and death threats to sexually assault the victim. After the assault, Denezpi threatened the victim’s life if she reported the assault. Denezpi fled from the scene by jumping out a second-story window when he saw police approaching the residence. He then hid underneath a bush for roughly thirteen hours. Denezpi admitted under oath at trial and at sentencing that he lied to federal agents when apprehended. A Sexual Assault Nurse Exam (“SANE”) was conducted showing significant bruising and injuries to the victim. In addition, a DNA test conducted by the Federal Bureau of Investigations revealed Denezpi’s DNA was present on the victim.
“Our office is committed to vigorously prosecuting crimes committed on the Ute Mountain Ute Indian Reservation,” said U.S. Attorney Jason Dunn. “Mr. Denezpi wrongly believed that he could commit a violent assault, silence the victim with threats, and lie his way out of accountability. Thanks to the work of our prosecutors and law enforcement partners, he was proven wrong.”
This case was investigated by Bureau of Indian Affairs, with the assistance of their Victim Witness Specialist. The defendant was prosecuted by Assistant U.S. Attorneys Jeff Graves and Tim Neff.
Man from Toadlena, N.m. Charged with Aggravated Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE – Garrith Bitsilly, 32, of Toadlena, N.M., appeared in federal court yesterday on charges of aggravated sexual abuse and abusive sexual contact in Indian Country.
According to a criminal complaint, Bitsilly allegedly committed numerous acts of sexual abuse against the victim, who was less than 12 years old, over the course of about seven months in 2014. The victim was staying at Bitsilly’s home in San Juan County during this time while the victim’s mother was deployed to Afghanistan with the military. Bitsilly is an enrolled member of the Navajo Nation.
Criminal complaints are merely accusations. A defendant is presumed innocent until proven guilty. Bitsilly is currently on release to a halfway house pending trial. He faces from 30 years to life in prison if convicted of aggravated sexual abuse. Bitsilly faces up to life in prison if convicted of abusive sexual contact.
The Farmington office of the FBI investigated this case. Assistant U.S. Attorney Elisa C. Dimas is prosecuting the case.
Man from Toadlena, N.m. Charged with Aggravated Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE – Garrith Bitsilly, 32, of Toadlena, N.M., appeared in federal court yesterday on charges of aggravated sexual abuse and abusive sexual contact in Indian Country.
According to a criminal complaint, Bitsilly allegedly committed numerous acts of sexual abuse against the victim, who was less than 12 years old, over the course of about seven months in 2014. The victim was staying at Bitsilly’s home in San Juan County during this time while the victim’s mother was deployed to Afghanistan with the military. Bitsilly is an enrolled member of the Navajo Nation.
Criminal complaints are merely accusations. A defendant is presumed innocent until proven guilty. Bitsilly is currently on release to a halfway house pending trial. He faces from 30 years to life in prison if convicted of aggravated sexual abuse. Bitsilly faces up to life in prison if convicted of abusive sexual contact.
The Farmington office of the FBI investigated this case. Assistant U.S. Attorney Elisa C. Dimas is prosecuting the case.
Man from Shiprock Charged with Assault by Strangulation in Indian CountryRead the Press Release
ALBUQUERQUE – Dieter Douglas, 33, of Shiprock, N.M., appeared in federal court today on charges of assault by strangulation in Indian Country.
According to a criminal complaint, Douglas allegedly committed this offense in San Juan County on May 14, 2019. Douglas became drunk, assaulted the victim, and threatened to kill her. He hit the victim in the head several times and bit her on the arm. Douglas violently choked the victim three or four times causing her to lose consciousness. Douglas is an enrolled member of the Navajo Nation.
Criminal complaints are merely accusations and a defendant is presumed innocent until proven guilty. Douglas is currently in custody awaiting trial. He faces as much as 10 years in prison if convicted.
The Farmington office of the FBI investigated this case with the Navajo Department of Criminal Investigations. Assistant U.S. Attorney Novaline Wilson is prosecuting the case.
Lincoln Man Sentenced for Failing to Register under SORNARead the Press Release
United States Attorney Joe P. Kelly announced that Terrell Williams, 51, of Lincoln, Nebraska, was sentenced today to 24 months in prison by Chief United States District Judge John M. Gerrard for failing to register under the Sex Offender Registration and Notification Act (SORNA). After serving his prison term, Williams will be also be required to serve 5 years of supervised release and register as a sex offender.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations. Williams was required to register as a sex offender because he had been convicted of aggravated rape in 1990 in Shelby County, Tennessee. This conviction required that Mr. Williams register as a sex offender for life in the state of Tennessee, and by federal law, in any other state to which he moved.
In July 2018 Williams was arrested and charged with 3rd Degree Domestic Assault in Lincoln, Nebraska. At the time of that incident, Williams’s listed address was the same as the victim. Williams admitted that he had been living in Lincoln, Nebraska since July 15, 2018. He also admitted that he did not notify Tennessee authorities that he was leaving that state.
This case was investigated by the United States Marshals Service.