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8 July 2019
Mexican National Enters Guilty Plea to Firearm OffenseRead the Press Release
FRESNO, Calif. — Fernando Daniel Ruvalcaba-Velez, 35, of Jalisco, Mexico, pleaded guilty today to being an alien in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers found Ruvalcaba, an illegal alien who had previously been removed from the United States, in a vehicle in the vicinity of a marijuana cultivation site in the Sequoia National Forest after suspects fled from the site when it was raided. Ruvalcaba flashed his headlights on and off into the woods as a signal to the fleeing suspects. He was in possession of a loaded handgun that he had bought on the street for $600.
This case is the product of an investigation by the U.S. Forest Service and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Ruvalcaba is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on Sept. 30. Ruvalcaba faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The case was part of Operation Forest Watch, an enforcement effort targeting marijuana cultivation on public land and the damage they cause.
Methamphetamine Was Hidden in Child Booster SeatsRead the Press Release
TOPEKA, KAN. – A man from Mexico was sentenced today to 51 months in federal prison after a state trooper found 15 pounds of crystal methamphetamine hidden in child booster seats and other locations in his car, U.S. Attorney Stephen McAllister said.
Israel Felix Garcia, 32, was a passenger in a car driven by his girlfriend when the Kansas Highway Patrol stopped the car on I-70 at milepost 341 in Wabaunsee County, Kan. A trooper found five plastic wrapped bundles of crystal methamphetamine in two booster seats in the car. He found more bundles hidden under the rear window deck, bringing the total to 15 pounds. Garcia told investigators he was being paid $400 per bundle to drive the drugs from California to Topeka, Kan. He said his girlfriend and two children in the car did not know about the methamphetamine.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Stephen Hunting for their work on the case.
Men Sentenced to 17 Years in Prison for Drug and Gun CrimesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to more than 17 years in prison for drug trafficking and discharging a firearm.
According to court documents, Aaron Robinson, 28, and his co-defendant Rodrick Greene, 31, participated in a heroin, cocaine base and cocaine trafficking conspiracy in the Hampton Roads area from September 2017 to March 2018. In December 2017, Robinson discharged a firearm during a drug trafficking crime at the Budget Lodge Motel in Newport News, where one individual was shot in the stomach and leg. Both men were arrested in March 2018, after conducting a cocaine transaction and Greene was found in possession of a firearm used in furtherance of the cocaine sale.
Greene previously pleaded guilty and was sentenced on July 1 to over seven years in prison for his role in the drug trafficking conspiracy and possessing a firearm in furtherance of a drug trafficking crime.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration Washington Field Division, made the announcement after sentencing by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Robert E. Bradenham prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-5.
Member of Lightfoot Drug Trafficking Organization Pleads Guilty to Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH - A former resident of Clairton, PA, has pleaded guilty to a federal narcotics charge, United States Attorney Scott W. Brady announced today.
Kevin Ford, 33, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 500 grams or more of cocaine in front of United States District Court Judge Mark R. Hornak. Ford has been detained since his initial arrest on April 25, 2018 and will remain detained pending sentencing.
According to information presented to the court, from April to December 2017, Ford was a member of the Lightfoot drug trafficking organization. As part of that conspiracy, Ford would acquire quantities of cocaine from Jamie Lightfoot, Jr. and would then resell that cocaine to other members of the conspiracy. Over the course of the conspiracy, Ford was responsible for between 500 grams and 2.5 kilograms of cocaine.
The law provides for a maximum sentence of not less than 10 years in prison, a fine of not more than $8,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Due to a prior drug trafficking conviction, Ford is facing increased penalties.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
The investigation was funded 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.
Massachusetts Man Charged with Conspiracy to Distribute HeroinRead the Press Release
NEWARK, N.J. – A Massachusetts man was charged today with conspiring to sell five kilograms of heroin at the Jersey Gardens Mall in Elizabeth, New Jersey, U.S. Attorney Craig Carpenito announced.
Jose Manuel M. Ramos Lemus, 50, a citizen of Mexico residing in Boston, was charged by complaint with one count of conspiring to distribute and possessing with intent to distribute more than one kilogram of heroin. Lemus appeared today before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
On July 6, 2019, Lemus arrived at the Jersey Gardens Mall to meet with a confidential source (CS). In the parking lot of the mall, Lemus assured the CS that he had 5 kilograms of China White heroin for distribution. After leaving the vehicle, Lemus returned with a duffle bag containing five kilograms of heroin and was arrested at the scene.
The count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin carries a mandatory minimum term of 10 years in prison, a maximum penalty of life in prison, and a $10 million fine.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Man with 18 Felony Convictions Detained on Heroin ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Maurice D. Johnson, 49, of Bridgeport, Connecticut, was ordered detained today by United States Magistrate Judge John M. Conroy on heroin trafficking charges.
A June 2019 Indictment charges Johnson with conspiracy to distribute heroin, and four distributions of heroin. On July 4, 2019, he was arrested by the Vermont State Police driving on Interstate 89 near Williston. Johnson appeared in federal court in Burlington today for an arraignment and bail hearing. Judge Conroy expressed concern about Johnson’s extraordinary criminal history of 18 felonies, including convictions for drugs, assaults, and escape. The government pointed out that the alleged federal heroin trafficking offenses took place while Johnson was on probation from his last conviction in the State of Connecticut.
Johnson’s attorney, Michael J. Straub, urged that much of Johnson’s criminal history took place when he was young. Judge Conroy noted that while in his 40s, Johnson had been convicted of multiple drug felonies and an assault. Johnson was ordered detained pending trial. At the request of the defense, the Court provided a 60-day period for defense pretrial motions, which are due September 6, 2019. The maximum penalty for the federal offenses in the event of conviction is 20 years imprisonment.
The Indictment is an accusation only and the defendant is presumed innocent until and unless proven guilty. The Drug Enforcement Administration, working with the Essex Police Department, investigated the charged drug trafficking.
Assistant U.S. Attorney Wendy L. Fuller represented the United States. Johnson is represented by attorney Michael Straub.
Man from McKinley County Pleads Guilty to Assault in Indian Country Resulting in Serious Bodily InjuryRead the Press Release
ALBUQUERQUE – Ricky Thomas, 51, of McKinley County, N.M., pleaded guilty today in federal court to an indictment charging him with assault resulting in serious bodily injury in Indian Country.
In Thomas’s plea agreement, he admitted committing this offense in McKinley County on September 15, 2018. Thomas pushed the victim off a porch causing the victim to fall to the ground and hit his head on some cinderblocks. Thomas’s assault caused the victim serious injury, including fractures and other spinal cord injuries. The victim is now quadriplegic. Thomas is a member of the Navajo Nation and committed the offense in Indian Country.
Thomas is currently in custody awaiting sentencing. He faces from 30-33 under the terms of his plea agreement.
The FBI investigated this case. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Leader of Gift Card Fraud Ring that Stole more than $700,000 from Target and Customers Sentenced to 5 Years in PrisonRead the Press Release
A 30-year-old man arrested last year in Snohomish County, Washington was sentenced today in U.S. District Court in Seattle to five years in prison and three years of supervised release for his scheme to defraud Target and its customers of more than $700,000, announced U.S. Attorney Brian T. Moran. JEFFERY DOUGLAS MANN, of Marysville, Washington, led a group of five people who used a system to decipher gift card identifying numbers and used them across five western states for fraud. U.S. District Judge James L. Robart ordered MANN to pay more than $214,000 in restitution saying MANN, “is obviously talented and used that talent to break the law… This is not a victimless crime -- it impacts real people.”
According to records filed in the case, between May 2017 and December 2017, the ring stole gift card balances worth more than $700,000, and often sold illegally purchased goods or store gift cards for bitcoin on an internet marketplace. The co-conspirators used a formula to reverse-engineer and identify unique bar code numbers of thousands of authentic gift cards sold by Target to legitimate customers. Members of the scheme then used the retailer’s automated customer service telephone system to verify balances linked to the various stolen gift card numbers. They then loaded active gift card numbers onto a mobile or electronic wallet app on their phones, which the co-conspirators used to purchase merchandise and legitimate gift cards at various Target store locations across at least five states: Washington, Oregon, California, Nevada and Colorado. For example, on a single occasion in November 2017, MANN and others used roughly 180 compromised gift card numbers to make $6,900 in purchases at the Southcenter Mall Target store in Tukwila, Washington.
When the actual cardholders later tried to use their gift cards, they discovered that they had zero balance. In December 2017, Target modified its gift card system in response to the fraud, putting an end to the scheme. Target reimbursed customers for their losses.
MANN pleaded guilty to wire fraud in March 2019. Four other defendants have resolved their criminal charges: Corey Mosey was sentenced to 46 months in prison; Joshua Newman was sentenced to 38 months in prison and Derrick Quintana was sentenced to 27 months in prison. Kennady Weston is resolving her case with participation in federal drug court. Those defendants agreed to pay a total of roughly $263,000 in restitution in addition to that ordered from MANN.
The case was investigated by the U.S. Secret Service, with assistance from the Kirkland, Lynnwood, and West Linn (OR) Police Departments, and is being prosecuted by Special Assistant United States Attorney Benjamin Diggs and Assistant United States Attorney Steven Masada.
Leader of Credit Card Fraud Ring SentencedRead the Press Release
A Westland man was sentenced to 60 months in prison today for having organized and executed an elaborate credit card fraud scheme, U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation, Detroit Division.
According to courts records, Carlton O. Bankhead, 28, designed a scheme to fraudulently purchase, and then resell, merchandise from retailers using stolen credit card information. Bankhead and his crew defrauded retailers throughout the State of Michigan of approximately $90,000 for over a year.
Bankhead, who has over a dozen prior state criminal convictions, including three prior felony convictions for access device fraud, has never previously been sentenced to a term of imprisonment.
“Credit card fraud and identity theft hurt both innocent citizens and local businesses. These crimes throw lives into chaos and cause immense financial damage,” stated United States Attorney Matthew Schneider. “Those who might be tempted to engage in such conduct should know they risk federal prosecution and lengthy imprisonment.”
Bankhead was sentenced by U.S. District Judge Paul D. Borman. Judge Borman also ordered Bankhead to pay restitution to the victims of his fraud.
The case was investigated by the Michigan State Police and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Andrew J. Yahkind.
Lawrence Man Pleads Guilty to Distributing HeroinRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to distributing 100 grams or more of heroin.
Orlando Breton Mercado, 44, pleaded guilty to distribution of and possession with intent to distribute 100 grams or more of heroin. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Sept. 30, 2019. Mercado was arrested and charged in November 2018, and has been in custody since.
According to the charging documents, in July 2018, agents began investigating Mercado for drug trafficking, and on Nov. 20, 2018, they conducted an undercover controlled purchase from Mercado of nearly one kilogram of heroin. Mercado was subsequently arrested.
The charge of distribution of 100 grams or more of heroin carries a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Las Vegas Man Charged with Submitting False Documents to USCIS, Identity TheftRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an eight-count indictment charging ARASH VAKSHOURI, 40, of Las Vegas, Nevada, with submitting false documents to a government agency and aggravated identity theft.
The indictment was returned on May 8, 2019, and Vakshouri was arrested in Las Vegas on June 20. He appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven, entered a plea of not guilty, and was released on a $50,000 bond.
As alleged in the indictment, between January and May 2017, Vakshouri sent a total of seven fraudulent letters to U.S. Citizenship and Immigration Services (USCIS) in Connecticut purporting to be from two individuals who had applied to USCIS to become legal residents of the U.S. in March 2016. The letters, which included the victims’ names, passport numbers, application numbers and alien file numbers, fraudulently requested the withdrawal or cancellation of the victims’ applications for legal permanent resident status in the U.S.
The indictment charges Vakshouri with seven counts of submitting a false document, an offense that carries a maximum term of imprisonment of five years on each count, and one count of aggravated identity theft, which carries a mandatory consecutive term of imprisonment of two years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Postal Inspection Service and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Jeffrey Epstein Charged in Manhattan Federal Court with Sex Trafficking of MinorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced that JEFFREY EPSTEIN was arrested Saturday and charged with sex trafficking of minors and conspiracy to commit sex trafficking of minors. The indictment unsealed today alleges that, between 2002 through 2005, EPSTEIN sexually exploited and abused dozens of underage girls by enticing them to engage in sex acts with him in exchange for money. Epstein allegedly worked with several employees and associates to ensure that he had a steady supply of minor victims to abuse, and paid several of those victims themselves to recruit other underage girls to engage in similar sex acts for money. He committed these offenses in locations including New York, New York, and Palm Beach, Florida. EPSTEIN is expected to be presented in Manhattan federal court this afternoon before U.S. Magistrate Judge Henry B. Pitman. The case is assigned to U.S. District Judge Richard M. Berman.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Jeffrey Epstein abused underage girls for years, operating a scheme in which girls he victimized would recruit others for Epstein to exploit and abuse. Epstein exploited girls who were vulnerable to abuse, enticed them with cash payments, and escalated his conduct to include sex acts, often occurring at his residence on the Upper East Side of Manhattan. While the charged conduct is from a number of years ago, the victims – then children and now young women – are no less entitled to their day in court. My Office is proud to stand up for these victims by bringing this indictment.”
FBI Assistant Director William F. Sweeney Jr. said: “We are asking anyone who may have been victimized by Jeffrey Epstein, or anyone who may have information about his alleged criminal behavior, to please call us. The number is 1-800-CALL-FBI. We want to hear from you, regardless of the age you are now, or whatever age you were then, no matter where the incident took place. The bravery it takes to call us might empower others to speak out about the crimes committed against them. It is important to remember there was never, nor will there ever be an excuse for this type of behavior. In the eyes of the FBI, the victims will always come first.”
NYPD Commissioner James P. O’Neill said: “Today’s charges serve as a warning to individuals who continue to prey upon some of our society’s most vulnerable population: we are coming for you. I thank and commend the U.S. Attorney’s Office for the Southern District and the FBI for their tireless efforts to ensure child predators are taken off our streets. The NYPD will continue to work with our law enforcement partners to eradicate the trafficking of children in our city and nation and work to bring justice to victims of these heinous crimes.”
If you believe you are a victim of the sexual abuse perpetrated by Jeffrey Epstein, please contact the FBI at 1-800-CALL FBI, and reference this case.
According to the Indictment[1] unsealed today in Manhattan federal court:
From at least 2002 through at least 2005, JEFFREY EPSTEIN enticed and recruited, and caused to be enticed and recruited, dozens of minor girls to visit his mansion in New York, New York (the “New York Residence”), and his estate in Palm Beach, Florida (the “Palm Beach Residence”), to engage in sex acts with him, after which he would give the victims hundreds of dollars in cash. In order to maintain and increase his supply of victims, EPSTEIN also paid certain victims to recruit additional underage girls whom he could similarly abuse. In this way, EPSTEIN created a vast network of underage victims for him to sexually exploit, often on a daily basis, in locations including New York and Palm Beach.
EPSTEIN’s victims were as young as 14 at the time he abused them, and were, for various reasons, often particularly vulnerable to exploitation. Moreover, EPSTEIN knew that many of his victims were under 18, including because, in some instances, victims expressly told him they were underage.
In creating and maintaining this network of minor victims in multiple states to abuse and exploit sexually, EPSTEIN worked with others, including employees and associates who facilitated his conduct by, among other things, contacting victims and scheduling their sexual encounters with EPSTEIN at the New York Residence and at the Palm Beach Residence.
In both New York and Florida, EPSTEIN perpetuated this abuse in similar ways. Victims were initially recruited to provide “massages” to EPSTEIN, which became increasingly sexual in nature and would typically include one or more sex acts. EPSTEIN paid his victims hundreds of dollars in cash for each encounter.
In particular, during encounters at the New York Residence, victims would be taken to a room where they would perform a massage on EPSTEIN, during which EPSTEIN would frequently escalate the nature and scope of physical contact with his victims to include, among other things, sex acts such as groping and direct and indirect contact with the victims’ genitals. In connection with the encounters, EPSTEIN, or one of his employees or associates, typically paid each victim hundreds of dollars in cash. Once minor victims were recruited, EPSTEIN or his employees or associates would contact victims to schedule appointments for “massages.” As a result, many victims were abused by EPSTEIN on multiple subsequent occasions.
To further enable him to abuse underage girls, EPSTEIN asked and enticed certain of his victims to recruit additional minor girls to perform “massages” and similarly engage in sex acts with EPSTEIN. When a victim would recruit another underage girl for EPSTEIN, he paid both the victim-recruiter and the new victim hundreds of dollars in cash. Through these victim-recruiters, EPSTEIN maintained a steady supply of new victims to exploit, and gained access to dozens of additional underage girls to abuse.
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JEFFREY EPSTEIN, 66, is charged with one count of sex trafficking of minors, which carries a maximum sentence of 40 years in prison, and one count of conspiracy to engage in sex trafficking of minors, which carries a maximum sentence of five years in prison.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and the NYPD. He also thanked the U.S. Customs and Border Protection for their assistance.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller, Alison Moe, and Maurene Comey are in charge of the prosecution, with assistance from the Office’s Human Trafficking Co-Coordinator, Abigail Kurland.
The charges contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Illinois Man Sentenced for Health Care Fraud - Participated in Kickback Scheme Involving Medical LaboratoryRead the Press Release
St. Louis, MO – Anthony B. Camillo, 62, of Madison County, Illinois, was sentenced today to 30 months in prison for participating in a conspiracy to commit health care fraud and to pay illegal kickbacks for health care services. He appeared in federal court today before U.S. District Court Judge Audrey G. Fleissig and ordered Camillo to pay $3,469,810 in restitution.
According to court documents, Anthony Camillo, the owner of Allegiance Medical Laboratory and AMS Medical Laboratory, paid illegal kickbacks to “marketers” for urine and saliva specimens sent to the labs for testing. In some instances, doctors’ names were used on orders for the tests, although the doctors had never seen or evaluated the patients and did not know their names were being used on the orders. During the conspiracy, many disabled and elderly patients living in residential care facilities were repeatedly subjected to medically unnecessary testing. Camillo usually paid the marketers, operating in Missouri and other states, $150-$200 for each specimen that Medicare and Medicaid paid the labs.
This case was investigated by the Office of the Inspector General of the U.S. Department of by the Health and Human Services, the Federal Bureau of Investigation, and the Missouri Medicaid Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
Human Smuggler Admits to Transportation Conspiracy Involving Chinese NationalsRead the Press Release
VICTORIA, Texas – A 47-year-old Mexican national who resided in McAllen and Houston has pleaded guilty on the day trial was set to begin, announced U.S. Attorney Ryan K. Patrick.
Humberto Ramirez-Santos admitted to his involvement in a conspiracy to transport illegal aliens between October 2011 to July 2017. The alien smuggling organization facilitated the smuggling of illegal aliens from multiple countries including individuals from China, Russia, India, Brazil, Honduras, El Salvador, Guatemala and Mexico. Ages of those smuggled into the country ranged from toddlers to the elderly but were mostly comprised of young adults.
At the hearing today, the court heard that smuggling trips were taken every week and the total number of aliens transported are incalculable.
The organization used various methods to facilitate the smuggling. Co-conspirators drove cars and trucks to locations south of Border Patrol (BP) checkpoints. There, they were guided through South Texas ranches to avoid detection. They also used Penske trucks and tractor trailers to smuggle illegal aliens through various checkpoints.
A particular tactic was to select a tractor trailer parked at a South Texas truck stop with a suitable temperature. They would then remove the seal and load the illegal aliens. Members of the organization would follow the vehicle to the next stop somewhere north of the checkpoint to later retrieve them. The drivers would be unaware of their human cargo and were potentially exposed to criminal liability. The aliens were then be transported in closed Penske trucks to Houston.
Ramirez-Santos provided aliens to be smuggled through his contacts in Mexico. He also trained the young members of the organization in how to do counter-surveillance and instructed younger family members in how to move aliens.
Senior U.S. District Judge John Rainey accepted the plea and has set sentencing for Oct. 1, 2019. At that time, Ramirez-Santos faces up to 10 years in prison and a possible $250,000 fine.
Previously released on bond, he was permitted to remain on bond pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol and Houston Police Department conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case.
Houston Man Convicted on Terrorism ChargesRead the Press Release
HOUSTON – A 20-year-old U.S. citizen from Houston has entered a guilty plea to attempting to provide material support to Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General for National Security John C. Demers.
Kaan Sercan Damlarkaya attempted to join and support ISIS from August 2017 until his arrest in December 2017. In addition to wanting to join ISIS, Damlarkaya also provided information to ISIS supporters about the use of machetes, homemade construction of an automatic weapon and how to build and use explosive materials.
As part of his plans to join ISIS overseas, starting in approximately early August 2017, Damlarkaya had numerous conversations online with many individuals he believed to be fellow ISIS supporters. During these discussions, he described his intentions to travel overseas to fight for ISIS in Syria or Afghanistan. Damlarkaya added that if he was unsuccessful in joining ISIS overseas, he would conduct an on attack on non-Muslims in the United States and that it was his “dream” to be a martyr.
Damalarkaya also provided information to other ISIS supporters, on at least two separate occasions, about ways to manufacture a bomb. Specifically, he described how to make explosives formula using triacetone triperoxide and cautioned the others to “take safety seriously while you make this” to be “useful until you can strike.”
Damlarkaya further illustrated to ISIS supporters ways to construct an automatic weapon. He claimed he could buy a “GIANT machete for $15” and stated “a lot of us are poor… or we don't have experience. So not all of us can get a gun or make explosives, but we can afford to buy a $15 knife.” He claimed he slept with a machete under his pillow ready to use if law enforcement raided his house.
When agents arrested Damlarkaya, they executed a search warrant at his residence and found a machete by his bed.
U.S. District Judge Andrew S. Hanen accepted the plea today and has set sentencing for Sept. 30, 2019. At that time, Damlarkaya faces up to 20 years in federal prison and a maximum $250,000 possible fine.
He has been and will remain in custody pending that hearing.
The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Alamdar Hamdani and Rob Jones are prosecuting the case along with DOJ Trial Attorneys Kevin Nunnally and Gregory Gonzalez of National Security Division’s Counterterrorism Section.
Hot Springs Man Sentenced on Firearm and Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that Hot Springs, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person and Distribution of a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Kory Moore, age 27, was sentenced on July 3, 2019, to 4 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The charges related to Moore, a previously convicted felon prohibited from possessing firearms, being found to knowingly be in possession of a .40 caliber semi-automatic pistol during a traffic stop on June 7, 2018, at Rapid City. Additionally, earlier that day Moore obtained methamphetamine and sold it to another individual.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Safe Trails Task Force, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Moore was immediately turned over to the custody of the U.S. Marshals Service.
Fraudster Sentenced to 18 Months in Federal Prison for Scheme in Which She Defrauded Five Victims of More Than $1.2 MillionRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Nely Rider, age 74, of Bowie, Maryland, to 18 months in federal prison, followed by nine months of home detention as part of three years of supervised release, for wire fraud in connection with a scheme to defraud at least five individuals in Maryland, Virginia, and elsewhere, of a total of more than $1.285 million. Judge Hazel also entered an order requiring Rider to forfeit and to pay restitution in the amount of $1,285,545.01.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“This defendant took advantage of her victims’ generosity and lied to steal over a million dollars,” said United States Attorney Robert K. Hur. “The victims she preyed upon included the elderly, for whom the loss of retirement savings is particularly tragic. The Justice Department is committed to bringing fraudsters like these to justice.”
According to Rider’s plea agreement, from December 2009 through May 2014, Rider defrauded five victims by falsely stating that an individual in Mexico, named Patricia, was in danger and needed assistance to travel to the United States. Rider falsely stated that once “Patricia” was safely in the United States, she would have access to money to repay the victims.
Based on Rider’s false statements, the victims provided her with approximately $1,285,545.01, which she used at casinos and elsewhere for her personal benefit. As a result of the fraud, some elderly victims lost their retirement savings.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leah B. Grossi and David I. Salem, who prosecuted the case.
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Fourth Defendant Admits to Robbing Local Business with a FirearmRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old resident of Corpus Christi has entered a guilty plea to robbery and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Francisco Chavera appeared before U.S. Magistrate Judge Janice B. Ellington today and admitted he robbed the Texas Food Mart in the 6100 block of Williams on Aug. 5, 2018, along with Matthew Joseph Bryant, 24, Nathealle Avori Tyrell Jones, 21, and Corey Alexander Newman, 25, all of Corpus Christi.
Officers responded to the aggravated robbery and observed a vehicle matching the reported description of the suspects’ vehicle and attempted to conduct a traffic stop. The vehicle fled until crashing into a utility pole, at which time all four occupants ran. After a short foot pursuit, authorities arrested all four individuals.
At that time, law enforcement searched the vehicle and the surrounding area and discovered U.S. currency, convenience store items, cigarettes, disposable gloves and a loaded handgun with an extended magazine.
Surveillance footage at the location showed two males wearing dark clothing and bandanas covering their faces had entered the store. As one male, who was later identified as Bryant, stayed by the front door and pointed a handgun at the clerk. The other male, later confirmed to be Chavera, went behind the counter and emptied the cash register into a bag along with cigarettes and flavored cigars. Both men then took the clerk’s cellular phone and wallet before leaving the store and fleeing in a dark colored sedan Jones was driving.
Bryant, Jones and Newman each pleaded guilty Jan. 31, 2019. Senior U.S. District Judge Janis Graham Jack later sentenced Bryant and Jones each to a 33-month sentence for the robbery to be followed by an additional 84 months for the firearms charge which must be served consecutively to the other sentences imposed. Both must also serve five years of supervised release following completion of their sentences.
Newman is pending sentencing before Judge Jack later this year.
Judge Jack will impose Chavera’s sentencing Oct. 31, 2019. At that time, he faces up to 20 years imprisonment and a maximum $250,000 possible fine for the robbery and a minimum of seven years for brandishing a firearm during a crime of violence which must be served consecutively to any other sentence imposed.
Chavera and Newman have been and will remain in custody pending their sentencing hearings.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.Former Rapid City Priest Charged with Wire Fraud, Money Laundering, and Transporting Stolen MoneyRead the Press Release
United States Attorney Ron Parsons announced that a Kent, Washington, man was charged in federal district court with 50 counts of Wire Fraud, nine counts of Money Laundering, and one count of Transportation of Stolen Money.
Marcin Stanislaw Garbacz, age 41, a former Rapid City priest, was charged on May 21, 2019. Garbacz appeared before U.S. Magistrate Judge Daneta Wollmann on July 3, 2019, and pleaded not guilty to the charges.
The maximum penalty upon conviction is 20 years in federal prison and/or a $500,000 fine, 3 years of supervised release, and $6,000 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Garbacz, while employed as a pastor with the Diocese of Rapid City, defrauding the Diocese by stealing cash donations made by parishioners for his own personal use between July 2012 and April 2018.
The charges are merely accusations and Garbacz is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Garbacz was detained pending trial. A trial date has not been set.
Former Clay County High School Teacher Sentenced to 11 Years in Federal Prison for Distributing Child Sex Abuse Video over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Christopher Shawn Potter (50, Jacksonville) to 11 years in federal prison for distributing child pornography. Potter was also ordered to serve a 20-year term of supervised release, and must pay $3,000 in restitution to a victim of his offense. Potter had pleaded guilty on April 8, 2019.
Potter worked as a teacher at Clay High School in Green Cove Springs from 2016 to 2017, and was a teacher at Orange Park High School from 1997 to 2004.
According to court documents, in February 2018, using the screen name “Mr. Fireball,” Potter engaged in online conversations with an undercover officer who was posing as a 14-year-old child. During these conversations, Potter discussed meeting the “child” for sex. Potter sent the “child” a video depicting a young child being sexually abused, and also sent a video of Potter performing a sexual act.
On September 20, 2018, HSI agents and other law enforcement officers executed a search warrant at Potter’s residence and seized several electronic devices. During an interview, Potter admitted sending child pornography and stated that he fantasizes about sexual acts with young girls. Potter’s smart phone contained 15 videos and 6 images depicting child pornography, as well as logs of online conversations on social media in which Potter discussed his sexual fantasies involving children.
“This child predator has worked in positions of trust and authority, so to get him off our streets and out of our local schools has made the community safer for everyone,” said HSI Tampa Special Agent in Charge James C. Spero. “This case is an example of HSI working with our local law enforcement partners to bring criminals to justice.”
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, the Orange Park Police Department, the Putnam County Sheriff’s Office, the Clay County Sheriff’s Office, and the Palatka Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Carroll County Public School Teacher Sentenced to 22 Years in Federal Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Kenneth Brian Fischer, age 41, of Westminster, Maryland, to 22 years in federal prison, followed by lifetime supervised release, for production of child pornography. Judge Bennett also ordered Fischer to pay restitution of $3,000 to each of the 11 identified victims, for a total of $33,000. Upon his release from prison, Fischer will be required to register as a sex offender in the places where he resides, is an employee, and is a student, pursuant to the Sex Offender Registration and Notification Act (SORNA), and the laws of the state of his residence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Sheriff James T. DeWees of the Carroll County Sheriff’s Office; Colonel Edwin C. Roessler Jr. of the Fairfax County, Virginia Police; Carroll County State’s Attorney Brian DeLeonardo; and Fairfax County Commonwealth's Attorney Raymond F. Morrogh.
“Kenneth Fischer was a teacher who exploited children by enticing them to engage in sexually explicit conduct for his own gratification,” said United States Attorney Robert K. Hur. “Now he faces years in federal prison, where there is no parole—ever. Law enforcement will continue to work to identify and prosecute those who prey on our children.”
According to his plea agreement, Fischer was a resident of Carroll County, Maryland and at the time of the conduct was employed as a teacher by the Carroll County School System. In August 2017, Fischer was identified by law enforcement after he communicated with an undercover agent posing as a minor male on a social networking application geared toward gay and bisexual men. In his chats with the undercover detective, Fischer attempted to arrange a meeting with the detective posing as a minor male, in order to engage in sexually explicit conduct. Fischer also sent the detective a sexually explicit photo of an adult male, wearing a green shirt with white lettering. The face of the individual was not visible in the photo.
On September 13, 2017, law enforcement executed a search warrant at Fischer’s residence, and seized numerous electronic devices and a green t-shirt with white lettering that matches the t-shirt worn by the individual in the sexually explicit photo Fischer sent to the detective. A search of Fischer’s electronic devices revealed that Fischer had been communicating with five real minors beginning in November 2014 and continuing through his arrest in September 2017.
Fischer admitted that he enticed minor males to engage in sexually explicit conduct with him and took images and videos documenting that conduct. Fischer also attempted to entice two other minor males to engage in sexually explicit conduct with him. In addition, Fischer engaged in online chats with at least an additional nine minor males in which he either attempted to or did obtain sexually explicit photos of the minor males at his request. One minor male was 13 years old at the time the nude photos were exchanged.
Fischer was previously arrested in Westminster, Maryland on related charges and has been in custody since September 13, 2017.
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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Maryland State Police, the Carroll County Sheriff’s Office, the Carroll County State’s Attorney’s Office, the Fairfax County Police, and the Fairfax County Commonwealth’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
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Former Arkansas State Senator Pleads Guilty to BriberyRead the Press Release
SPRINGFIELD, Mo. – A former Arkansas state senator pleaded guilty in federal court today to accepting multiple bribes in connection with a multi-district investigation spanning the Western District of Missouri and Eastern and Western Districts of Arkansas.
Jeremy Hutchinson, 45, of Little Rock, Arkansas, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of conspiracy to commit federal program bribery. Hutchinson, who was previously a state senator and representative, resigned in August 2018 after he was indicted in the Eastern District of Arkansas.
Hutchinson pleaded guilty today to his role in a multi-million-dollar public corruption scheme that involved embezzlement, bribes and illegal campaign contributions for elected public officials. Hutchinson admitted that he was hired by then-Chief Operating Officer Bontiea Goss as outside counsel for Preferred Family Healthcare, Inc. (formerly known as Alternative Opportunities, Inc.), and in exchange for payments and legal work, Hutchinson performed official acts on behalf of the Springfield, Missouri-based healthcare charity, including holding up agency budgets and drafting and voting on legislation. Goss, a former executive at the charity, is charged in the same superseding indictment to which Hutchinson pleaded guilty.
According to today’s plea agreement, the charity paid Hutchinson a monthly retainer from May 2014 until 2017. In total, Hutchinson was paid more than $350,000 in charity funds. Hutchinson also received hotel rooms and Major League Baseball tickets paid for by the charity, and the use of the charity’s luxury and recreational real estate.
Hutchinson further admitted as part of his plea that: he understood that he was paid by Alternative Opportunities, Inc., and Preferred Family Healthcare, Inc., primarily because of his position as an elected public official; that he worked to further the interests of the non-profit while in the Arkansas State Legislature; that Goss, along with Milton Russell Cranford (also known as “Rusty”) and Robin Raveendran, both of whom served as executives for the charity and have also pleaded guilty for their role in the bribery scheme, directed Hutchinson to move the charity’s political agenda forward in the Arkansas Senate; and that Hutchinson performed some legal work for the charity to conceal his corrupt arrangement with the charity’s executives.
Under federal statutes, Hutchinson is subject to a sentence of up to five years in federal prison without parole and a fine of up to $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Hutchinson previously pleaded guilty on June 25, 2019, to bribery and tax fraud as part of a multi-district plea agreement. Hutchinson pleaded guilty to an information filed in the Western District of Arkansas, charging him with conspiracy to commit federal program bribery as part of a separate scheme involving an unidentified individual who owned and operated orthodontic clinics throughout the state of Arkansas, for whom Hutchinson had taken official action in exchange for bribes. He also pleaded guilty to one count of filing a false tax return that was part of a 12-count federal indictment in the Eastern District of Arkansas, charging him with devising a wire and tax fraud scheme in which Hutchinson stole and misappropriated thousands of dollars in state campaign contributions for his own personal use, and then filed false federal income tax returns to conceal his conduct.
The multi-district investigation was conducted by IRS-Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC). The cases are being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Missouri; Trial Attorneys Marco A. Palmieri and Sean F. Mulryne of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorneys Ben Wulff and Aaron Jennen of the Western District of Arkansas; and Assistant U.S. Attorneys Stephanie Mazzanti and Patrick Harris from the Eastern District of Arkansas.
Federal Government Conducts Unprecedented Seizure of Massive Cargo Ship After Finding Almost 20 Tons of Cocaine on BoardRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that, on July 4, 2019, U.S. Customs and Border Protection (CBP) executed a seizure warrant obtained by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, and seized the cargo vessel MSC Gayane as being subject to possible forfeiture to the United States.
On June 17, 2019, federal, state, and local law enforcement agents boarded the MSC Gayane when it arrived at Packer Marine Terminal in Philadelphia and seized 19.76 tons of cocaine. Since that time, crew members of the MSC Gayane have been charged with knowingly and intentionally conspiring with each other and others to possess more than five kilograms of cocaine on board a vessel subject to the jurisdiction of the United States. The federal criminal investigation is ongoing.
As a result of this seizure, the MSC Gayane – a ship built in 2018 and measuring approximately two city blocks in length – has been placed under the custody of CBP and shall remain so until further proceedings or Order of the Court.
“A seizure of a vessel this massive is complicated and unprecedented – but it is appropriate because the circumstances here are also unprecedented. We found nearly 20 tons of cocaine hidden on this ship,” said U.S. Attorney McSwain. “When a vessel brings such an outrageous amount of deadly drugs into Philadelphia waters, my Office and our agency partners will pursue the most severe consequences possible against all involved parties in order to protect our district – and our country.”
“The MSC Gayane is the largest vessel seized in U.S. Customs and Border Protection’s 230-year history and follows the record seizure of almost 20-tons of cocaine discovered on the vessel,” said Casey Durst, CBP’s Director of Field Operations in Baltimore. “Seizing a vessel of this size is an unusual enforcement action for CBP, but is indicative of the serious consequences associated with an alleged conspiracy by crewmembers and others to smuggle a record load of dangerous drugs through the United States. This action serves as a reminder for all shipping lines and vessel masters of their responsibilities under U.S. and international law to implement and enforce stringent security measures to prevent smuggling attempts such as this.”
“The seizure of the MSC Gayane is another significant step toward holding accountable those who perpetuate drug smuggling crimes both here in Philadelphia and around the world,” said Marlon Miller, Special Agent in Charge of HSI Philadelphia. “HSI, in collaboration with CBP, the Coast Guard, and our state and local law enforcement partners continue to aggressively work with the U.S. Attorney’s Office for the Eastern District of Pennsylvania to comprehensively investigate this case and bring to justice those who had roles in this drug smuggling venture.”
The case is being investigated by the United States Customs and Border Protection and Homeland Security Investigations, together with a multi-agency team of federal, state, and local partners.
Ex-Northern Cheyenne Tribal President admits travel fraud schemeRead the Press Release
BILLINGS – Lawrence Jace Killsback, the former president of the Northern Cheyenne Indian Tribe, today admitted to a travel fraud scheme in which he is accused of getting an estimated $20,000 in improper reimbursements, U.S. Attorney Kurt Alme said.
Killsback, 40, of Busby, pleaded guilty to wire fraud and to false claims conspiracy during an arraignment and plea hearing.
U.S. Magistrate Judge Timothy J. Cavan presided and will recommend to U.S. District Judge Susan P. Watters that Killsback’s plea be accepted. Judge Watters will preside at sentencing. Judge Cavan continued Killsback’s release.
Killsback faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud crime and a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the false claims conspiracy crime.
Prosecutors said in court documents that while serving as tribal president and in his previous job as the tribe’s health director, Killsback submitted false or fraudulent invoices to tribal, state and federal entities claiming travel expenses for travel he was already being reimbursed through either the tribe, state, other tribes or federal agencies, for travel that never occurred or for travel dates or rates that were inflated or exaggerated.
Killsback also conspired with at least one other person in devising and executing the schemes. Although Killsback disputed the amount, prosecutors said he received an estimated $20,000 in improper reimbursements from 2014 to 2017.
When interviewed by investigators in March 2019, Killsback admitted to submitting the same reimbursement forms and invoices to multiple agencies for travel expenses and to submitting fake invoices for reimbursement. In addition, Killsback noted that this travel fraud happens all of the time on the reservation. Killsback was aware of this scheme and described this as a culture of fraud.
In one scheme, Killsback double and triple dipped travel reimbursements between September 2015 and September 2017 on at least 10 trips he made while serving on various state and national boards. He received multiple reimbursements from various entities, including the Northern Cheyenne Tribe, state of Montana, the Blackfeet Tribe and the federal Department of Health and Human Services.
Another scheme involved Killsback falsifying hotel invoices by changing the number of days, rate or total expenses for trips through a software program used by Killsback or a co-conspirator. Investigators identified 28 trips that involved such fraudulent conduct by Killsback.
Assistant U.S. Attorneys Bryan Dake and Ryan Weldon prosecuted the case, which was investigated by Department of Health and Human Services, Office of Inspector General and Department of Interior, Office of Inspector General.
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Dauphin County Man Convicted of Sex TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Miguel Scott Arnold, age 32, of Harrisburg, Pennsylvania, was convicted on June 21, 2019, of (1) conspiracy to commit sex trafficking by force, fraud, and coercion; (2) sex trafficking by force, fraud, and coercion; (3) conspiracy to possess with intent to distribute heroin and marijuana; and (4) possession with intent to distribute heroin, after a four-day trial before United States District Court Judge Sylvia H. Rambo.
According to United States Attorney David J. Freed, the jury returned with the guilty verdict after approximately one hour of deliberation. The evidence showed that Arnold was part of a significant sex trafficking operation that exploited over 20 victims, including juveniles. Arnold and his co-conspirators coerced the sex trafficking victims though fraud, physical assault, the deprivation of heroin to addicted victims, and threats of violence.
Following the entry of the verdict, Judge Rambo remanded Arnold to the custody of the U.S. Marshals, at the request of the U.S. Attorney’s Office. Arnold has been incarcerated on state charges since August 2016.
Arnold and four co-defendants, each of whom previously pleaded guilty to engaging in sex trafficking by force, fraud, and coercion, participated in a conspiracy that began in Harrisburg in the fall of 2015, and continued until it was dismantled in August 2016. Arnold and the co-conspirators rented hotel rooms and posted “escort” advertisements and photographs on backpage.com, a website that the FBI has since seized and which is no longer operational. Testimony taken at trial demonstrated that Arnold and his co-conspirators would frequently solicit women to engage in prostitution by lying to them about the services that they would be expected to perform. Arnold and his co-conspirators would also target victims who were vulnerable by virtue of their age, financial insecurity, or drug addiction. Testimony at trial indicated that at least three victims of the conspiracy were minors, one as young as 14 years old. Arnold and the others would take the majority of the money made during the course of the prostitution business, and distributed drugs to the women, including heroin.
In addition to Arnold, the four others charged in the indictment include Tevin Bynoe, Terrence Hawkins, Joshua Guity-Nunez, and Emonie Murphy, all from Harrisburg. Murphy, age 23, pleaded guilty to sex trafficking by force, fraud, and coercion on August 27, 2018. Bynoe, age 27, and Hawkins, age 26, pleaded guilty to sex trafficking by force, fraud, and coercion on September 20, 2018. Guity-Nunez, age 31, pleaded guilty to conspiracy to engage in sex trafficking by force, fraud, and coercion.
Sentencing proceedings for Arnold and his co-defendants remain to be scheduled.
The FBI coordinated the investigation and was aided by law enforcement agencies in the Harrisburg area. Assistant U.S. Attorneys Michael A. Consiglio and Christian T. Haugsby prosecuted the case on behalf of the United States.
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Couple admit producing child pornography while planning to sexually exploit young girlRead the Press Release
AUGUSTA, GA: A couple who admitted producing and sharing child pornography during a plot to sexually exploit an 8-year-old girl pled guilty to federal charges.
Charles Brandon Powell, 33, of Hephzibah, and Carrie Marie Minton, 25, of Cordoba, S.C., pled guilty Monday, July 8, to one count of Production of Child Pornography in U.S. District Court before Chief Judge J. Randall Hall, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a minimum sentence of 15 years in prison and a maximum of 30 years, followed by supervised release of five years to life. There is no parole in the federal system.
“The facts of this case are sickening and disturbing, revealing a cesspool of cooperative depravity,” said Christine. “Quick action from our federal and state law enforcement partners halted this scheme in the early stages, thankfully sparing further exploitation of two innocent children.”
As described in court documents and testimony, Powell and Minton, identified as a couple, held online discussions to plan a sexual encounter with an 8-year-old girl whom Minton planned to bring to Powell’s Hephzibah home from Neeses, S.C. After Minton sent an explicit photo of another juvenile, a 5-month-old girl, to Powell, the National Center for Missing and Exploited Children alerted authorities, who intervened as the plot was in motion. Powell and Minton were taken into custody without either of the children subjected to further harm.
“This case is an excellent example of how partnerships between the FBI and our state and local law enforcement agencies are essential in protecting our citizens and in particular, children, our most vulnerable citizens,” said Chris Hacker, Special Agent in Charge of the Atlanta FBI. “Keeping our children safe is a top priority for this office and I thank law enforcement for their quick work on this matter.”
After accepting please from Powell and Minton, Judge Hall remanded them to federal custody until a sentencing hearing is held. Both are in custody in the Jefferson County Jail.
The case is being investigated by the FBI, the Georgia Bureau of Investigation (GBI) and the South Carolina Office of the Attorney General. Assistant U.S. Attorney Tara Lyons is prosecuting the case for the United States.
California Woman Guilty of Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Briana Ramirez, age 22, of Simi Valley, California, pleaded guilty before U.S. District Court Judge Malachy E. Mannion, to conspiracy to distribute and possess with intent to distribute more than a kilogram of heroin.
According to United States Attorney David J. Freed, Ramirez admitted to participating in the conspiracy during July through November 2018. Ramirez also admitted that she agreed with others to transport the heroin from California to Carbon County, Pennsylvania. A kilogram of heroin is approximately equivalent to 40,000 retail bags of heroin.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
The matter was investigated by the Drug Enforcement Administration, the Pennsylvania State Police and the Illinois State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law for this offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 10 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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California Man Sentenced to 18 Months in Prison for Role in Three-Year, Cross-Country Insider Trading Scheme that Netted More Than $3.9 MillionRead the Press Release
TRENTON, N.J. – A day trader from Oak Park, California, was sentenced today to 18 months in prison for his role in a multi-year insider trading scheme that made over $3.9 million in illicit profits by exploiting material information in violation of confidentiality agreements, U.S. Attorney Craig Carpenito announced.
Ronald Chernin, 70, of Oak Park, California, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to commit securities fraud and one count of securities fraud. Judge Shipp imposed the sentence today in Trenton federal court
According to documents filed in this case and statements made in court:
Chernin and co-defendant Steven Costantin, 58, of Farmingdale, New Jersey, worked as day traders for Costantin’s brother-in-law, Steven Fishoff, 62, of Westlake Village, California. Between May 2010 and August 2013, Chernin, Costantin, and Fishoff, as well as a business associate referred to as “Trader A,” expressed interest in participating in numerous stock offerings by publicly traded companies.
Chernin, Costantin, and other members of the day trading operation falsely characterized their trading entities as legitimate, full-service financial management firms with as much as $150 million in assets under management, in order to increase the likelihood that the investment bankers would solicit them to participate in the stock offerings.
Before providing confidential information concerning the companies or the terms of the proposed sales, the investment bankers first required that Chernin, Costantin, Fishoff, Trader A, and their associated trading entities, enter into confidentiality, or “wall-crossing,” agreements, whereby they agreed not to disclose or trade on the inside information and were brought “over the wall” for the narrow purpose of determining whether to purchase the offered securities.
Instead, Chernin, Costantin, and Fishoff violated the confidentiality agreements by directly or indirectly tipping each other and others with the inside information concerning the stock offerings; short selling the issuers’ stock in anticipation of a drop in price when the stock offerings were disclosed to the public; and covering their short positions once the stock offerings were disclosed. Additionally, Fishoff tipped his friend, Paul Petrello, 57, of Boca Raton, Florida, and another conspirator, Joseph Spera.
By trading on the nonpublic information, Chernin, Costantin, and their conspirators gained more than $3.9 million in illicit profits over the course of the three-year scheme. Chernin and Costantin shared 50 percent of their profits with Fishoff.
In addition to the prison term, Judge Shipp sentenced Chernin to three years of supervised release and fined him $2,000.
Costantin previously pleaded guilty to his role in the scheme and was sentenced to one year in prison. Petrello previously pleaded guilty to his role in the scheme and was sentenced to three years of probation. Fishoff pleaded guilty to his role in the scheme and was sentenced to 30 months in prison. Spera pleaded guilty to his role in the scheme and was sentenced to one year of probation.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Marc Berger.
The government is represented by Nicholas P. Grippo, Attorney in Charge of the U.S. Attorney’s Trenton Office; Sarah Devlin, Chief of the Office’s Asset Recovery and Money Laundering Unit (ARMLU), and Senior Trial Counsel Barbara Ward of the ARMLU.
Buffalo Man Pleads Guilty for His Role in Heroin and Fentanyl ConspiracyRead 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 Reese Moore, 26, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to distribute 40 grams or more of fentanyl. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant conspired with others to distribute heroin and fentanyl for over two years in the City of Buffalo and surrounding areas. Many of the sales occurred on residential streets in Buffalo, in parking lots of businesses in Amherst and Lancaster, and several times at a local mall. The conspiracy is responsible for distributing thousands of doses of opiates and causing multiple overdoses.
Specifically, Moore communicated and coordinated with a co-defendant and used cellular telephones to coordinate sales of heroin and fentanyl to users and people who resold the drugs. The defendant sold fentanyl to an individual working with investigators on three separate occasions during March of 2016.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Division; the Amherst Police Department, under the direction of Chief John C. Askey; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Mary Clark, and Lieutenant Kevin Reyes; the Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Buffalo Police Department Narcotics Squad, under the direction of Commissioner Byron C. Lockwood; the Lockport Police Department, under the direction of Interim Police Chief Steve Preisch; the Depew Police Department, under the direction of Chief Jerome Miller; the Niagara County Sherriff’s Office and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Erie County Sherriff’s Office, under the direction of Sheriff Timothy Howard; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in Charge Kevin Kelly.
Sentencing is scheduled for November 15, 2019, at 1:00 p.m. before Judge Vilardo.
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Bridgeport Man Sentenced to More Than 12 Years in Federal Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CEWELL SHARPE, also known as “C.C.,” 36, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 151 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in 2015, the FBI’s Bridgeport State Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force initiated an investigation into several heroin distributors operating in Bridgeport. The investigation, which included court-authorized wiretaps, controlled purchases of heroin and physical surveillance, revealed that Sharpe and Harry Blake, also known as “Harry-O,” partnered to distribute large amounts of heroin in Bridgeport. Sharpe frequently carried firearms in connection with his drug trafficking activity.
On April 12, 2019, Sharpe pleaded guilty to one count of conspiracy to possess and distribute heroin.
Sharpe has been in federal custody since January 26, 2016, after he was charged during a separate investigation into heroin and crack cocaine trafficking in Bridgeport. He subsequently pleaded guilty and, on June 27, 2016, was sentenced to 48 months of imprisonment.
Judge Arterton ordered Sharpe’s 151-month sentence to run consecutively to the 48-month sentence he is currently serving.
On October 31, 2018, a jury found Blake guilty of one count of conspiracy to possess with intent to distribute 100 grams or more of heroin. On June 26, 2019, he was sentenced to 168 months of imprisonment.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, with the assistance of the Drug Enforcement Administration, Connecticut State Police, Stratford Police Department, Stamford Police Department and the Trumbull Police Department K-9 Unit. The case is being prosecuted by Assistant U.S. Attorneys Alina M. Reynolds and H. Gordon Hall.
Barboursville Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Barboursville man pled guilty today to federal drug charges, announced United States Attorney Mike Stuart. Mathew Byrd, 32, entered a guilty plea to an indictment charging him with distribution of heroin and possessing a firearm in furtherance of a drug trafficking crime.
“Black tar heroin and a gun,” said United States Attorney Mike Stuart. “We don’t want drug dealers like Byrd in our communities.”
Byrd admitted that on January 31, 2019, he sold seven grams of black tar heroin to a confidential informant. Byrd also admitted to possessing a firearm in furtherance of a drug trafficking crime.
Byrd faces five to forty years in federal prison when he is sentenced on October 7, 2019.
The Violent Crime Drug Task Force West and the Putnam County Sheriff’s Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Baltimore Man Sentenced to More Than 10 Years in Federal Prison for Armed Robbery of a Restaurant During Which He Brandished a Gun, Pointing it at One of the VictimsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jason Walker, age 31, of Baltimore, Maryland, today to 121 months in federal prison, followed by five years of supervised release, for an armed commercial robbery and for brandishing a firearm during and in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Jason Walker has learned a hard lesson—that gun crime leads to federal time, which has no parole, ever,” said United States Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to remove those who would commit violence from our community. Please, put down the guns and save a life—maybe even your own.”
As detailed in guilty plea, on February 21, 2018, Walker and a co-conspirator robbed a restaurant in the 2200 block of Wilkins Avenue in Baltimore. Walker admitted that during the robbery he pointed a handgun at one of the victims, while his co-conspirator took all the money from the cash register. In addition, Walker and his co-conspirator took the victims’ personal cell phones before fleeing the restaurant.
After the 911 call, an officer with the Baltimore Police Department, who was canvassing the area, saw two men in an alley who matched the description provided by the victims. The men were standing by a wall counting cash. Officers detained the men and brought one of the victims to the location. That person identified Walker as one of the men that had committed the robbery. Walker was arrested and searched. Officers recovered $272 in cash, a plastic bag full of change, blue bandanas, two cellular telephones that belonged to two of the victims of the robbery, and a receipt from the restaurant. Officers also recovered a fully loaded revolver from the area where Walker was counting money. Walker admitted that it was the gun he brandished during the robbery of the restaurant.
Federal charges in connection with the robbery against co-defendant Joseph Coates, age 28, of Baltimore, remain pending. Trial is scheduled to begin on December 2, 2019. 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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) 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.
United States Attorney Robert K. Hur commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael A. Goldsticker who is prosecuting the case.
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Baltimore Felon Sentenced to Nine Years in Federal Prison for Illegal Possession of A Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Yusef Payne, age 35, of Baltimore, Maryland, to nine years in federal prison, followed by three years of supervised release, for illegal possession of a stolen firearm. Payne admitted that he had at least two previous felony convictions and was prohibited from possessing firearms or ammunition.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Yusef Payne knew that as a result of his previous convictions he was prohibited from possessing guns or ammunition. Now he faces nine years in federal prison,” said United States Attorney Robert K. Hur. “Armed criminals must know that gun crime will lead to federal time, which has no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea on October 30, 2017, Baltimore Police officers were patrolling and saw Payne, who had an open warrant from an October 15, 2017 handgun charge involving a 9mm handgun with a magazine containing ten 9mm cartridges.
When the officers pulled over to arrest Payne, he ran, discarding a handgun. One of the officers chasing Payne retrieved the weapon, which was a different 9mm handgun with a magazine containing seven cartridges. Payne admitted that he knew, or had cause to believe, that the gun was stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) 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.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation and thanked the Maryland Department of Public Safety and Correctional Services for its assistance. Mr. Hur thanked Assistant U.S. Attorney Joan C. Mathias, who prosecuted the case.
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Arizona Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Glendale, Arizona, man convicted of Attempted Receipt of Child Pornography was sentenced on July 2, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Walter Curaba, age 49, was sentenced to 5 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Curaba was one of five men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2014 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. All five men were indicted for Commercial Sex Trafficking.
The conviction stemmed from Curaba responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several messages with a person Curaba believed to be associated with a 12-year-old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was $250.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Curaba was immediately turned over to the custody of the U.S. Marshals Service.
Appling man admits to possessing child pornographyRead the Press Release
AUGUSTA, GA: An Appling man has pled guilty to a federal charge of possession of child pornography.
Ricardo Dale Alva, 64, entered a guilty plea Monday, July 8, in U.S. District Court in Augusta to one count of Possession of Child Pornography, said Bobby L. Christine, United States Attorney for the Southern District of Georgia.
The charge is punishable by up to 20 years in prison and a fine of up to $250,000, followed by no less than five years of supervised release. There is no parole in the federal system. A sentencing hearing will be held at a later date.
Alva was arrested March 7 after Richmond County Sheriff’s Office deputies were alerted by an online tip that led to a search of Alva’s Appling home by the FBI. The search discovered a cell phone containing images of minors engaged in sexually explicit conduct.
“Children exploited by pornography are victimized when their images are recorded, and again and again when those images are shared,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “The successful resolution of this case leaves many other victimizers to pursue, and our office and investigative partners will never rest until we end this repulsive victimization of children.”
“Individuals who possess pornographic images of children for their own self-gratification support the further exploitation of the most innocent victims,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a top priority to protect the most vulnerable in our society, our children,”
The case is being investigated by the FBI and prosecuted by Assistant United States Attorney Tara Lyons.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced HAROLD WAYNE WARREN, 51, of Spearfish, South Dakota on July 1, 2019 for conspiracy to distribute methamphetamine. Warren was arrested in Sheridan, Wyoming. He received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release. The Wyoming Division of Criminal Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced MILES WILLIAM HYNNE, 53, on July 2, 2019 for conspiracy to distribute methamphetamine. Hynne was arrested in Casper, Wyoming. He received one hundred fifty one months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay restitution in the amount of $250.00 and a $100.00 special assessment. The Wyoming Division of Criminal Investigation investigated this case.
5 July 2019
West Monroe Man Sentenced to 10 Years in Federal Prison for Possessing Child Pornography ImagesRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Emerson Eugene Stanton, 56, of West Monroe, Louisiana, was sentenced Wednesday by U.S. District Judge Terry A. Doughty to 10 years in federal prison for possessing child pornography that included sexually explicit images of juveniles. Judge Doughty also sentenced Stanton to five years of supervised release following his incarceration.
According to information presented in court, Stanton’s employer found internet searches for nude images of children on the defendant’s cell phone, and took the phone that day to the West Monroe Police Department. Officers obtained and executed a search warrant for Stanton’s cell phone and discovered images of child pornography involving prepubescent minors. A search warrant was also executed at Stanton’s home where officers found another cell phone containing more images of child pornography involving prepubescent minors, including one of the same images officers found on the phone Stanton possessed at work. Stanton pled guilty to these charges on March 8, 2019.
Homeland Security Investigations and West Monroe Police Department conducted the investigation. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
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Swiftbird Man Sentenced for Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Swiftbird, South Dakota, man convicted of Aggravated Sexual Abuse was sentenced on July 1, 2019, by U.S. District Judge Roberto A. Lange.
Raven Different Horse, age 28, was sentenced to 84 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Different Horse was indicted by a federal grand jury on May 31, 2018. He pled guilty on April 3, 2019.
The conviction stemmed from an incident on January 23, 2018, when Different Horse accused his wife of being with another man. When Different Horse’s wife denied the allegation, Different Horse became more agitated, and both physically and sexually abused his wife over a three-day period.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Different Horse was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Michael Anthony Toledo, age 39, was indicted on March 12, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 28, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 18, 2017, Toledo did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services.
The charge is merely an accusation and Toledo is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Toledo was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Trevor Red Bird, age 30, was indicted on June 11, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 28, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Red Bird was convicted of Abusive Sexual Contact in May 2008. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 7, 2019, and June 11, 2019, Red Bird, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Red Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Red Bird was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pine Ridge Man Sentenced for Drug ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 27, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Loren Shon Waters, age 46, was sentenced to 10 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
From May 2016 through February 2018, Waters sold and distributed 500 grams or more of methamphetamine in western South Dakota, primarily on the Pine Ridge Reservation.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Gina Nelson prosecuted the case.
Waters was immediately turned over to the custody of the U.S. Marshals Service.
Parmelee Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 1, 2019, by U.S. District Judge Roberto A. Lange.
Mason Neck, age 28, was sentenced to 72 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Neck was indicted by a federal grand jury on February 14, 2018. He pled guilty on April 3, 2019.
The conviction stemmed from conduct that occurred between June 2016 and August 2016, wherein Neck knowingly engaged in sexual contact with a child who was between two and three years old.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Neck was immediately turned over to the custody of the U.S. Marshals Service.
New York Doctor Will Pay Nearly $130,000 for Allegedly Engaging in an Illegal Kickback SchemeRead the Press Release
A New York doctor has agreed to pay the government $127,072.34 for allegedly accepting illegal kickback payments from OK Compounding, L.L.C., announced U.S. Attorney Trent Shores.
The U.S. Attorney’s Office in the Northern District of Oklahoma entered into a settlement agreement with George Lehner, 46, a medical doctor, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks. This civil settlement resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding in return for kickback payments.
“OK Compounding was an epicenter of criminal and civil healthcare fraud in northeastern Oklahoma. Another week, another physician being held accountable. My team won’t rest until they’ve rooted out the corruption,” said U.S. Attorney Trent Shores.
Beginning in 2014 and continuing into 2015, Dr. Lehner prescribed compounded pain creams for his patients, facilitating the sale and distribution of the creams. As compensation for his services, OK Compounding paid Dr. Lehner what was characterized by the parties as “medical director fees” based upon an hourly rate. However, the payments Dr. Lehner received from the company were, in actuality, “kickbacks.” Because Dr. Lehner’s patients were insured with Medicare, a federal health insurance program for people over 65 years of age and for certain younger individuals with some disability status, the kickbacks were in violation of the False Claims Act. It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance.
Prohibitions against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
The settlement resolves allegations that Dr. Lehner had an illegal financial relationship with OK Compounding, concerning pain creams from April of 2014 through March of 2015.
Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States. The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.
To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE Unit.
This settlement was the result of a coordinated effort by Assistant U.S. Attorney Marianne Hardcastle for the Northern District of Oklahoma; the Defense Criminal Investigative Service; Department of Labor– Office of Inspector General (OIG), IRS– Criminal Investigation Division; U.S. Postal Service– OIG; FBI; Department of Veterans Affairs– OIG and the Department of Health and Human Services– OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
New Orleans Resident Sentenced for Lying to FEMA to Receive Disaster Assistance BenefitsRead the Press Release
MONROE, La. – A New Orleans, Louisiana, resident was sentenced Wednesday to 71 months in prison and five years of supervised release for fraudulently obtaining disaster-assistance benefits from the Federal Emergency Management Agency (FEMA) following severe flooding in Monroe, Louisiana, announced United States Attorney David C. Joseph.
Chad Lightfoot, 47, was sentenced by U.S. District Judge Terry A. Doughty, who presided over the trial in this case. Judge Doughty also ordered the defendant to pay $23,684.71 in restitution to FEMA and a $10,000 fine. Lightfoot was convicted on March 14, 2019, after a four-day trial.
Evidence presented at trial showed that, after a federal disaster was declared on March 13, 2016 following severe flooding in Monroe, Louisiana, Lightfoot applied for disaster grant assistance with FEMA for damage to property he owned on South Fourth Street in Monroe. Lightfoot listed the property as his primary residence, when in reality, the property was abandoned and unoccupied and he lived in the New Orleans area. Prior to the property’s inspection by FEMA on March 30, 2016, Lightfoot obtained a Louisiana Identification Card to appear as though he lived there. He also submitted a fraudulent bill to FEMA from Cox Communications to establish proof of occupancy. A Cox representative testified at trial that Cox does not provide services in Monroe. As a result of his fraudulent claims, FEMA sent Lightfoot $23,684.71 for home repairs, rental assistance, and personal property. Lightfoot also submitted two appeals to FEMA, which included $115,669 and $122,500 in repair estimates.
The Department of Homeland Security, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath and Supervisory Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail). Live operators are available 24 hours a day, seven days a week.
To learn more about the NCDF please visit the website at www.justice.gov/disaster-fraud.
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New Mexico Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Ron Parsons announced that a Pueblo of Acoma, New Mexico, man convicted of Failure to Pay Child Support was sentenced on July 1, 2019, by U.S. District Judge Karen E. Schreier.
Joseph A. Mesteth, age 50, was sentenced to 5 years of probation, $104,160.81 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Mesteth was indicted by a federal grand jury on December 4, 2018. He pled guilty on April 12, 2019.
The conviction stemmed from the fact that Mesteth, who was to pay child support for his minor children who live in South Dakota, failed to willfully do so.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Maryland Woman Pleads Guilty to Theft of Government Money and Aggravated Identity TheftRead the Press Release
Greenbelt, Maryland – Stephanie Twyman, age 47, of Clinton, Maryland, pleaded guilty on July 3, 2019, to theft of government money and aggravated identity theft, in connection with a tax fraud scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, between 2011 and 2013, Stephanie Twyman was part of a conspiracy to fraudulently obtain tax refund checks by filing false tax returns with the Internal Revenue Service (IRS) using the names and Social Security numbers of unemployed individuals. Once the refund checks in these individuals’ names were obtained, Twyman sent runners to cash the checks at a check cashing business in Clinton, Maryland, where co-conspirators worked as tellers. The runners brought the proceeds back to Twyman, who then paid the tellers for cashing the fraudulently obtained checks. The total tax loss resulting from Twyman’s fraudulent conduct is approximately $566,261.
Twyman faces a maximum sentence of ten years in prison on the theft count and a mandatory two years in prison, consecutive to any other sentence, for the aggravated identity theft count. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 4, 2019.
U.S. Attorney Hur and Principal Deputy Assistant Attorney General Zuckerman thanked agents of the Department of Treasury, Office of Inspector General, and IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Gregory Bernstein and Trial Attorney William Guappone, who are prosecuting the case.
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Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Oglala, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Wesley Blacksmith, age 42, was sentenced on July 1, 2019, to 17 1/2 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Blacksmith was indicted by a federal grand jury in June 2018. The conviction stems from Blacksmith, who is a sex offender by reason of a previous conviction for Sexual Abuse of a Minor, having a sexual relationship with a 15 year-old female in 2017 in Oglala. A child was born in January 2018 from this relationship.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Blacksmith was immediately turned over to the custody of the U.S. Marshals Service.
Kitchen Supervisor Set to Appear in Court for Actions Related to Prohibited Relationship with Federal InmateRead the Press Release
LAREDO, Texas - A federal grand jury sitting in Laredo has indicted a 51-year-old Laredo resident for making a false statement and providing contraband in prison, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the indictment against Oralia Aparicio July 2, 2019. She is expected to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 9:00 a.m. today.
Aparicio was employed by GEO Group Inc. as a Kitchen Supervisor. According to the indictment, she engaged in a prohibited relationship with a federal inmate over a period of several months at the Rio Grande Detention Center in Laredo. GEO is a Florida-based company that contracts with the Office of the Federal Detention Trustee to operate private corrections facilities.
Aparicio allegedly made false representations in order to avoid detection. The charges allege she contributed money to and placed orders on the commissary account of a federal inmate with whom she was engaged in a prohibited romantic relationship. Aparicio also violated federal law when she provided the inmate with contraband items, such as a prescription medication, over-the counter medicine, a nasal inhaler and photographs of herself, according to the indictment.
If convicted, Aparicio could face up to five years imprisonment as well as a $250,000 maximum possible fine.
The FBI and Department of Justice - Office of the Inspector General conducted the investigation with the assistance of the U.S. Marshals Service.
Assistant U.S. Attorney Sebastian Edwards is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Investigators offer assistance with victim identification related to former Boy Scout official accused of photographing children changing after swimmingRead the Press Release
Thomas Close is awaiting trial on charges of production of child pornography related to his alleged surreptitious recording of boys changing after swimming as part of Boy Scout activities.
Close, 40, lived in Richland County. He was known as “Aqua Joe” because he worked with the Boy Scouts of America, often with their swimming program.
Close is accused of secretly recording boys changing after they swam. His alleged crimes are believed to have happened in Ohio between 2011 and 2018. Close remains in jail pending the outcome of his federal criminal case.
If anyone suspects they or their children were recorded by the defendant, they are asked to email their contact information to Homeland Security Investigations at [email protected]. Please attach a photo of the child in question, preferably a photo that was taken around the years that CLOSE would have had contact with your child you or your child had contact with Mr. Close so investigators can positively identify or rule out if the child is associated with this case. A member of the investigative team will respond to your request.
The privacy of crime victims and survivors is of the utmost importance. The U.S. Attorney’s Office will do everything in its power to protect the privacy of anyone who responds to this inquiry.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 1 was:
Dekker Karl Boeke, 26, of Roundup, on charges of prohibited person in possession of a firearm and unlawful user of controlled substance in possession of a firearm. If convicted of the most serious crime, Boeke faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Boeke was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-78.
Appearing on July 2 was:
Keyshaun Frank Left Hand, 19, of Crow Agency, on charges of assault resulting in substantial injury to a dating partner and kidnapping. If convicted of the most serious crime, Left Hand faces a maximum of life in prison, a $250,000 fine and five years of supervised release. Left Hand was detained pending further proceedings. The case was investigated by the FBI. Pacer case reference. 19-85.
Sarah Marie Guckeen, 36, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Guckeen faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Guckeen was detained pending further proceedings. The case was investigated by the FBI task force and Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-83.
Thomas Joseph Mascarena, 43, a transient in Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Mascarena faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Mascarena was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-70.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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