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21 June 2019
Scott Brochu Charged with Transportation and Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Scott Brochu, 47, of Essex, was charged yesterday by Indictment with unlawfully transporting child pornography, in violation of 18 U.S.C. § 2252(a)(1), and possessing child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Brochu was arrested this morning near his residence in Essex, Vermont, and will appear this afternoon in federal court in Burlington. Brochu’s arrest was a result of an operation conducted by Vermont’s Internet Crimes Against Children Task Force (VT-ICAC) and Homeland Security Investigations (HSI) during the week of May 13, 2019.
If convicted, the defendant faces a minimum of five years and a maximum of twenty years of imprisonment on the transportation allegation, and a maximum of ten years of imprisonment on the possession allegation. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the Indictment are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina E. Nolan commended the investigative efforts and collaboration of the Vermont’s Internet Crimes Against Children Task Force (VT-ICAC) and Homeland Security Investigations (HSI).
VT-ICAC was formed in 2008. The Vermont Attorney General’s Office assumed responsibility for managing VT-ICAC in October of 2015. Since October of 2015, VT-ICAC has performed 915 investigations, received 834 CyberTips from the National Center for Missing and Exploited Children, and arrested 125 individuals for crimes against children. VT-ICAC also works extensively to educate Vermont communities about internet safety. In the past three years, VT-ICAC conducted 2,032 educational forums around the state.
The operation during the week of May 13 was a collaborative effort involving the Vermont Attorney General’s Office, the Vermont State Police, Homeland Security Investigations, the Vermont U.S. Attorney’s Office, Burlington Police Department, South Burlington Police Department, Chittenden Unit for Special Investigations, Orange County Sheriff’s Department, and the University of Vermont Police Services.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Defendant Brochu is represented by Craig Nolan, Esq., of the law firm Sheehey Furlong, and Behm.
San Pedro Man Who Robbed Gardena Credit Union with Help of Employee Is Convicted of Conspiracy, Armed Bank RobberyRead the Press Release
LOS ANGELES – A San Pedro resident was found guilty of being the gunman in the violent, takeover-style robbery of a Gardena credit union in which a credit union employee helped plan and execute the heist that netted $311,300.
Toyrieon Sessions, 29, a.k.a. “Phat” and “PhatStax,” was found guilty of three felonies: conspiracy to commit armed bank robbery, armed bank robbery, and brandishing a firearm in furtherance of a crime of violence.
According to evidence presented at his four-day trial, Sessions was the gunman in the robbery of Northrop Grumman Federal Credit Union (“NGFCU”) on April 21, 2017. In addition to Sessions, the robbery involved two conspirators who previously have been convicted for their roles in the robbery:
- Daronnie Thompkins, 31, of Los Angeles, who organized the robbery, recruited Sessions to be the gunman, and knew the layout of the credit union; and
- Iris Lester, 28, of Los Angeles, a NGFCU employee who was Thompkins’ girlfriend at the time.
On the day of the robbery, Sessions entered the office building in which the credit union is located and walked past NGFCU’s main entrance, entering a side hallway directly to a men’s bathroom, according to trial evidence. Sessions waited in the men’s bathroom until Lester and another NGFCU employee exited the women’s bathroom. At that point, Sessions brandished a semi-automatic handgun and used it to force Lester, who was pretending to be a victim, and the other employee to provide access to the credit union’s vault room.
Once inside the vault room, Lester and the other NGFCU employee realized they did not have the key to open the vault. According to the evidence, Sessions allowed Lester to exit the vault room – but, instead of escaping, Lester returned with another credit union employee who was supposed to have the vault key. Lester then left the room a second time and retrieved the keys, but did not hit any panic buttons.
When Lester returned, Sessions forced her and the two other credit union employees onto their knees while pointing the handgun at each of them. Sessions stole a total of $311,300 from the credit union and placed the cash in a black trash bag before exiting the vault room and fleeing the scene in a silver Dodge Avenger.
United States District Judge André Birotte Jr., has scheduled an October 4 sentencing hearing, where Sessions will face a statutory maximum sentence of life in federal prison.
After a bench trial in August 2018, Thompkins was convicted of conspiracy and armed bank robbery. Judge Birotte later sentenced him to nine years in federal prison.
Lester has pleaded guilty to criminal charges in the case. Her sentencing hearing is scheduled for October 25.
This matter was investigated by the Federal Bureau of Investigation and the Los Angeles Police Department.
This case is being prosecuted by Assistant United States Attorneys Jeffrey M. Chemerinsky and Bruce K. Riordan of the Violent and Organized Crime Section.
Rochester Man Pleads Guilty to Receiving Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Johnson, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to receipt of child pornography. The charge carries a minimum penalty of five years in prison, a maximum penalty of 20 years, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that Johnson was arrested in June 2018, after he distributed child pornography to an undercover FBI Agent via the Internet. This prompted law enforcement officers to execute a search warrant at the defendant’s residence in Rochester where they seized his computers. Saved on the computers were approximately 52,372 images and 316 videos of child pornography, including videos and images that depicted the sexual abuse of infants and toddlers.
The plea is the result of an investigation by members of the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert; the Rochester Police Department, under the direction of Chief LaRon Singletary; and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
Sentencing is scheduled for October 7, 2019, before Judge Siragusa.
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Retired Navy Service Member Sentenced to Twenty Years for Attempted Enticement of Minors to Engage in Sexual Activity and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Charles S. Leis (48, Tampa) to 20 years in federal prison, to be followed by 25 years of supervised release, for attempted enticement of minors to engage in sexual activity and for possessing child pornography. The court also ordered Leis to pay $16,500 in restitution and to forfeit a laptop and a hard drive, which were used in furtherance of the commission of the offenses. Leis had pleaded guilty on March 26, 2019.
According to the plea agreement, on October 24, 2018, an FBI special agent in Orange County, Florida initiated an undercover investigation within an online chat group that alluded to “family fun.” Leis joined the chat group and initiated conversations with the undercover agent, who identified himself as the father of two girls, ages 9 and 11. During the span of several days, Leis solicited sex from the minors. In that process, Leis distributed images of child pornography to the “father” in an effort to prove that he was “real” about his intent to engage the “girls” in sexual activity. Leis made plans to meet the “girls” in Tampa on November 2, 2018. However, on that date, the agent could not locate Leis at the agreed upon location.
Further investigation revealed that around the same time (October 2018), Leis had been in contact with another FBI agent through another chat group. That undercover agent was acting as the father of 6 and 7-year-old girls. Leis also distributed child pornography to that agent and requested to have sexual intercourse with his “children.”
On November 29, 2018, FBI agents executed a search warrant at Leis’s home in Tampa and seized his computer. The computer had depictions of girls between 3 and 10 years of age engaged in sexually explicit conduct.
This case was investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda and Francis D. Murray.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Raleigh Man Sentenced for Possessing Firearm as a FelonRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge Louise W. Flanagan sentenced DARYLE ALBERT MPONGO, 33, of Raleigh, to 41 months’ imprisonment, followed by 3 years of supervised released.
On November 27, 2018, MPONGO was named in a one-count Indictment charging him with Possession of a Firearm and Ammunition by a Convicted Felon. On March 13, 2019, MPONGO pled guilty to the charge.
On April 9, 2018, officers of the Raleigh Police Department observed MPONGO conduct a hand-to-hand drug transaction with an unknown individual in an area known for drug distribution. Specifically, the officer observed an exchange of U.S. currency for several small items wrapped in plastic bags; however, officers were unable to determine whether MPONGO was the buyer or seller. MPONGO then entered the driver side of a vehicle occupied by another individual and left the area. officers stopped the vehicle for a traffic violation shortly thereafter. MPONGO then admitted to officers he was in possession of marijuana. A search of his person found three baggies containing a total of 5.17 grams of marijuana. A search of the vehicle found a .22 caliber pistol and 7 rounds of .22 caliber ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click on this link. https://www.justice.gov/usao-ednc/tbnc.
The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Portuguese Shipping Company Pleads Guilty to Falsifying Oil Record Book and ObstructionRead the Press Release
WASHINGTON – Today, Portline Bulk International S.A. pleaded guilty in federal court in Charleston, South Carolina, to one count of violating the Act to Prevent Pollution from Ships and one count of Obstruction. The charges stem from the falsification of the Oil Record Book onboard the M/V Achilleus, a Maltese-flagged ocean-going bulk carrier ship managed by Defendant Portline.
From April 2017 to August 2018, senior members of the vessel’s engineering team oversaw and participated in the bypass of the ship’s Oil Water Separator utilizing a yellow plastic hose, referred to as a magic pipe. The ship’s Chief Engineer made a series of fake entries and key omissions in the Oil Record Book in order to conceal the illegal overboard discharges of oily bilge water. On Aug. 14, 2018, the false Oil Record Book was presented to the U.S. Coast Guard (USCG) during an inspection in the Port of Charleston.
According to court documents, Portline has agreed to pay a criminal fine of $1.5 million when the company is sentenced at a future date. The company would also be placed on organizational probation for four years, which includes an environmental compliance plan.
“The world’s oceans are not a dumping ground for criminals who seek to evade our nation’s environmental laws,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “Today’s guilty plea demonstrates the Department’s commitment to protecting coastal communities through rigorous enforcement of the rule of law.
“The South Carolina coast is one of the most beautiful parts of our nation,” said U.S. Attorney Lydon for the District of South Carolina. “The U.S. Attorney’s Office takes environmental crimes seriously, and corporations and individuals who endanger our valuable marine resources and wildlife by violating federal law will be held accountable. We are grateful to the Coast Guard Investigative Service and the Environment and Natural Resources Division for their ongoing partnership in protecting our waterways.”
“Our team of dedicated marine safety and pollution response professionals worked closely with the Coast Guard Investigative Service to investigate this incident and refer it for enforcement action,” said Captain John Reed, Commander, U.S. Coast Guard Sector Charleston. “This case highlights the Coast Guard’s unwavering commitment to the stewardship of the ocean and its critical marine environment.”
On June 17, 2019, the ship’s former Chief Engineer Anatoli Zotsenko and Second Engineer Valerii Pastushenko, who had previously pleaded guilty to one count of violating the Act to Prevent Pollution from Ships, were sentenced to fines totaling $12,500 and three years’ probation. The probation term includes a special condition that bans Zotsenko and Pastushenko from entering ports and anchorages of the United States.
This case was investigated by the U.S. Coast Guard Sector Charleston and the Coast Guard Investigative Service. The USCG Marine Safety Lab was critical to the analysis of oil samples taken from the vessel. The case was prosecuted by Christopher L. Hale of the U.S. Department of Justice’s Environmental Crimes Section and AUSA Matt Austin from the U.S. Attorney’s Office for the District of South Carolina.
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Pinon Man Sentenced to 15 Years’ Prison for Illegal Firearms PossessionRead the Press Release
PHOENIX – On June 17, 2019, Mardino Nathaniel George, 33, of Pinon, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 15 years’ imprisonment. George had previously pleaded guilty to two counts of illegal weapons possession in violation of the National Firearms Act.
George has a history of possessing illegal, homemade firearms on the Navajo Nation. On August 5, 2017, he was present at the scene of a violent crime while in possession of a pipe-gun destructive device capable of firing shotgun shells. On February 20, 2018, he was encountered by state and tribal law enforcement while in possession of another weapon, this time an altered rifle. George is a member of the Navajo Nation, and the offenses occurred on the Navajo Nation Indian Reservation.
Manufacturing or possessing these kinds of firearms is prohibited by federal law, and these crimes can carry very serious penalties. George was sentenced to 10 years’ prison for possessing the pipe-gun destructive device and 5 years’ prison for possessing the altered rifle, with the sentences for the two crimes to be served consecutively.
The investigation was conducted by agents of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
Pine Ridge Man Sentenced to over 11 Years for Meth Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on June 18, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Harold Brewer, Jr., age 29, was sentenced to 140 months in prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Brewer was indicted for Conspiring to Distribute Methamphetamine, Possession with Intent to Distribute a Controlled Substance, and Prohibited Person in Possession of a Firearm by a federal grand jury on November 16, 2016. He pled guilty on December 21, 2018.
Brewer worked with co-conspirators in selling and distributing methamphetamine in Rapid City and on the Pine Ridge Reservation. Additional co-conspirators are pending trials in Rapid City.
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.
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.
This case was investigated by the Northern Plains Safe Trails Badlands Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Brewer was immediately turned over to the custody of the U.S. Marshals Service.
Parent in College Admissions Case Pleads GuiltyRead the Press Release
BOSTON – A California man pleaded guilty in federal court in Boston in connection with paying bribes to facilitate the admission of his children to the University of Southern California as purported athletic recruits.
Toby Macfarlane, 56, of Del Mar, Calif., a former senior executive at a title insurance company, pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Nov. 13, 2019.
According to court documents, Macfarlane agreed to pay Rick Singer $450,000 to participate in the college recruitment scheme for his children. According to the terms of the plea agreement, the government will recommend a sentence of 15 months in prison, one year of supervised release, a fine of $95,000, restitution and forfeiture.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Panama City Marriage Fraud Defendant Sentenced to 7 YearsRead the Press Release
PANAMA CITY, FLORIDA – Ravi Babu Kolla, 47, an Indian foreign national residing in Panama City, was sentenced to 84 months in prison for conspiracy to commit marriage and visa fraud and conspiracy to commit money laundering. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
Homeland Security Investigations (HSI) Panama City received information from the Bay County Sheriff’s Office during November 2017 that an unusually large number of marriages were occurring in rural Alabama counties. The marriages almost always involved male Indian nationals from throughout the United States and local women from Bay County, Florida. The evidence established that Kolla organized over 80 fraudulent marriages, and the majority of the Indian nationals involved had overstayed their visas or Student Exchange Visitor Program requirements and were unlawfully present in the United States. Each bride was to be paid $12,000 over a defined period for agreeing to participate in a fraudulent marriage.
"Our nation relies on the security of our nation’s immigration system, and any kind of fraud committed to cheat that system is a serious matter," said United States Attorney Lawrence Keefe. "This investigation, and the sentence imposed today, confirms that those who abuse the immigration process will be held accountable to the fullest extent of the law."
During June and July 2018, HSI Panama City executed a federal search warrant and three federal seizure warrants, resulting in the seizure of approximately $120,000 in suspected illicit proceeds, as well as documentary and electronic evidence related to numerous fraudulent marriages. Over $700,000 passed through Kolla’s bank accounts during the investigation. Currently, HSI Panama City is also coordinating with HSI New Delhi to locate and recover approximately $200,000 from the ICICI Bank in Mumbai, India, identified by investigators as additional proceeds from the marriage fraud enterprise.
This is an HSI-led investigation conducted with U.S. Citizenship and Immigration Services, Bay County Sheriff’s Office, and the Panama City, Blountstown, and Altha Police Departments, with assistance provided by sheriff’s offices in Coffee and Dale counties, Alabama. Assistant United States Attorney Corey J. Smith prosecuted the case.
"Marriage fraud is a serious crime that undermines our nation’s security," said HSI Tampa Special Agent in Charge James C. Spero. "To help protect the legal immigration system and the values associated with U.S. citizenship, HSI special agents will continue to work with law enforcement partners to stop criminals that seek to circumvent our laws."
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Operation Steel Penguin nets scores of arrests and seized firearms as part of focused enforcement effort targeting firearms violence in YoungstownRead the Press Release
Scores of suspected criminals were arrested and dozens of firearms seized as part of “Operation Steel Penguin,” which targeted people believed to illegally possess firearms.
It is a joint operation between the Youngstown Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ohio Adult Parole Authority, U.S. Attorney’s Office and Mahoning County Prosecutor’s Office.
To date, 33 firearms were seized. Four people have been indicted in federal court. Additional people have been charged in the Mahoning County Court of Common Pleas. Several investigations are ongoing and more indictments are expected.
“These cases involve people who are not allowed to have firearms because of past crimes,” U.S. Attorney Justin E. Herdman said. “We will continue to work with police and federal agencies through Project Safe Neighborhoods to make Youngstown and the Mahoning Valley safer.”
Youngstown Police Chief Robin Lees said: “We appreciate the U.S. Attorney’s office being responsive to the spike in murders we experienced the end of last year and convening a meeting in Youngstown to seek solutions. The result of that meeting being a focused and well-executed effort between federal, state and local agencies and was the key to the success of this program.”
“ATF’s primary mission is reducing violent gun crime in our country,” said ATF Special Agent in Charge Jonathan McPherson. “We are committed to working with our partners, including the Youngstown Police Department, the Ohio Adult Parole Authority, the United States Attorney’s Office, and the Mahoning County Prosecutor’s Office, to make the Mahoning Valley safer for all of our residents.”
“Convicted felons need to understand they will go back to prison if they carry a gun in Mahoning County,” Mahoning County Prosecutor Paul J. Gains said. “This Office will continue to cooperate with federal authorities and target these violent people who threaten our community.”
“The APA would like to recognize the collaborative effort put together throughout this operation,” stated Alice M. Barr, Regional Administrator, Ohio Adult Parole Authority. “The success is a testament to the hard-working men and women in all departments represented. The efforts of those who worked this operation should not go unnoticed. We must continue working to make Ohio safer. It is paramount to ensure those who carry guns illegally understand it is not acceptable behavior.”
Members of the Youngstown Police Department, ATF and Ohio Adult Parole Authority gathered and shared intelligence to identify people considered to be at high risk to commit crime with firearms, particularly people on parole from state prison. This, combined with increased patrols, resulted in an increase in arrests and firearms seizures and a decrease in shootings compared to the same time last year.
Shawn Jones, 29, of Youngstown, was charged with a being a felon in possession of firearms. Jones possessed a .45-caliber pistol and ammunition on March 9, despite a previous state conviction for attempted murder and previous federal conviction for racketeering, according to court documents.
Jones was one of the founders of the LSP street gang in Youngstown, according to court records.
Barry Wallace II, 25, of Youngstown, was charged with a being a felon in possession of firearms. Wallace possessed a Ruger 9 mm pistol and ammunition on March 17, despite a previous convictions for possession of heroin and possession of cocaine, according to the indictment.
Kendal Dotson, 33, of Youngstown, was charged with a being a felon in possession of firearms. Dotson possessed a Star .40-caliber pistol and ammunition on March 28, despite a previous convictions for possession of heroin and conspiracy to possess with intent to distribute crack cocaine, according to the indictment.
Airik Talbott, 30, of Campbell, was charged with a being a felon in possession of firearms. Talbott possessed a Glock .40-caliber pistol and ammunition on March 24, despite a previous convictions for aggravated robbery and escape, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
North Tonawanda Man, A Former Grand Juror, Admits to Leaking Grand Jury InformationRead 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 Casey Lipps, 26, of North Tonawanda, NY, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to committing contempt of court by impermissibly leaking secret grand jury information. The charge carries a maximum penalty of life in prison.
Assistant U.S. Attorneys Joshua A. Violanti and Brendan T. Cullinane, who are handling the case, stated that in October of 2016, the defendant was chosen to serve as a grand juror on a federal grand jury. However, in violation of an order from the Court to secret any and all matters involving the grand jury, Lipps impermissibly leaked grand jury information to others. In particular, the defendant revealed information to various persons concerning multiple targets of grand jury investigations. In addition, Lipps failed to provide complete information in response to law enforcement’s investigation into his leaking of grand jury information.
The plea is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for October 29, 2019, at 9:30 a.m. before Judge Vilardo.
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New Orleans Man Sentenced to Forty-One Months for Bank RobberyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on Wednesday, June 19, 2019, JAMIE PAUL EARLY, age 36, a resident of New Orleans, Louisiana, was sentenced to forty-one months of imprisonment for violating federal law by committing a bank robbery on July 27, 2018 at the Capital One Bank at 3001 Tulane Avenue in New Orleans. Additionally, EARLY must serve (3) years of supervised release and pay a !00.00 special assessment fee.
This case was brought as part of Project Safe Neighborhoods (PSN), a 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.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kathryn McHugh.
New Orleans Man Pleads Guilty to Heroin ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JOHN JONES, age 45, of New Orleans, pled guilty Thursday, June 13, 2019 to conspiracy to distribute and to possess with intent to distribute more than one kilogram of heroin on June 13, 2019.
According to court documents, JONES and others conspired to distribute and to possess with intent to distribute one kilogram or more of heroin.
JONES faces a minimum term of imprisonment of ten years and a maximum term of life imprisonment. A fine of up to $10,000,000 may also be imposed. JONES will be placed on supervised release after imprisonment for a period of not less than five years. Additionally, a $100 special assessment fee will be assessed. U.S. District Court Judge Ashe set sentencing for September 19, 2019.
U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Maria M. Carboni are in charge of the prosecution.
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Montgomery Man Sentenced to 40 Years in Federal Prison for Drug and Firearms ChargesRead the Press Release
Montgomery, Alabama- On June 20, 2019, Cody Eugene Mobley, 30, of Montgomery, Alabama, was sentenced to 40 years in prison for federal drug trafficking and firearms charges, announced U.S. Attorney Louis V. Franklin, Sr.
Law enforcement executed a search warrant in June 2018 at Mobley’s residence and found a pound of crystal methamphetamine, drug distribution paraphernalia, and a number of firearms. Among the firearms found were a sawed-off shotgun, a pistol equipped with a silencer, and an AR-15 style rifle equipped with a bump stock.
In March 2019, a jury found Mobley guilty of possession with intent to distribute 50 grams or more of methamphetamine, possession of firearms in furtherance of a drug trafficking crime, being a felon in possession of a firearm, possession of an unregistered short barrel shotgun and possession of an unregistered firearm silencer in connection with a drug distribution crime. A federal judge sentenced Mobley to ten years for the first four charges. The illegal possession of a silencer in connection with a drug distribution crime carries a mandatory minimum of 30 years, which will run consecutive to the ten-year sentence. There is no parole in the federal system.
The case was investigated by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Montgomery Police Department. The case was prosecuted by Assistant U.S. Attorneys Brandon Bates and Kevin Davidson.
Montgomery County Man Pleads Guilty to Producing and Transporting Child PornographyRead the Press Release
ALBANY, NEW YORK – John D. Salisbury, age 48, of Hagaman, New York, pled guilty today to four counts of sexual exploitation of a child, and 1 count of transportation of child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Salisbury admitted that on four occasions between October 2016 and February 2017, he used a hidden camera inside the bathroom of his residence to produce sexually explicit videos depicting a minor. Salisbury also admitted that he knowingly uploaded photos and videos depicting child pornography from a smartphone to an Internet-based email account.
Salisbury will be sentenced by Senior United States District Judge Norman A. Mordue on October 21, 2019. Salisbury faces a sentence of at least 15 years and up to 30 years in prison on each of the four counts of sexual exploitation, and between 5 and 20 years on the transportation count. Salisbury also can be sentenced to at least 5 years and up to lifetime post-imprisonment supervised release. He will also have to register as a sex offender when he is released from prison.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI, with assistance from the New York State Police Troop G Computer Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Montgomery County Man Convicted of Lying to Illegally Obtain FirearmRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Laurence Reinhard, 74, of Huntingdon Valley, Pennsylvania was convicted at trial of one count of making a false statement to a federal firearms licensee.
In 2014, the defendant pleaded guilty to providing malicious false information about an explosive and engaging in a hoax. As part of that guilty plea, he acknowledged that he would not be permitted to possess a firearm as a result of his felony convictions.
On March 10, 2018, he attempted to purchase a firearm, specifically a Smith and Wesson model 642 CT, .38 caliber from a federal firearms licensee. The defendant falsely stated that he had never been convicted of a felony on his application for the weapon.
“For good reasons, the United States regulates who is permitted to purchase and carry firearms -- it is a matter of maintaining public safety,” said U.S. Attorney McSwain. “In this case, the defendant – a previously convicted felon – lied in order to illegally obtain a weapon. I want to thank our law enforcement partners for their quick work in investigating this case and the jury for holding the defendant accountable for his crime.”
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Montgomery County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Priya De Souza.
Money Laundering Charges Added in International Marijuana Conspiracy to Grow Marijuana in Houses in Sacramento and Placer CountiesRead the Press Release
SACRAMENTO, Calif. — A grand jury returned a superseding indictment on Thursday that added money laundering charges to six defendants first charged in 2017 in a scheme to use money from China to buy houses to grow marijuana, U.S. Attorney McGregor W. Scott announced.
Charged with money laundering are Xiu Ping Li, 42 of New Jersey, Xiu Ru Li, 46, of Sacramento, Dao Zhong Wei, 50, of Sacramento, Shui Ping Zheng, 56, of Michigan, and Texas residents Kong Liang Li, 53, and You An Li, 53.
According to the charging documents, the defendants conspired with each other and others to wire transfer approximately $870,000 from China to buy six houses for growing marijuana or to pay off the lenders in order to continue growing marijuana in the house.
This case is the product of an investigation by IRS Criminal Investigation, Federal Bureau of Investigation, the Drug Enforcement Administration, and Homeland Security Investigations. Assistant U.S. Attorney Roger Yang is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty on the money laundering charges of 20 years in prison, a fine of up to $500,000 or twice the value of the funds involved, or both. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Manhattan U.S. Attorney Announces Return to Polish Government of Stolen Architectural Drawings of Historic SynagogueRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Angel M. Melendez, Special Agent-in-Charge of the New York Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that five stolen architectural drawings created in 1896 of a historic synagogue in the city of Lodz, Poland (the “Drawings”), will be returned to the Polish government. The Drawings were taken out of a larger set housed at the Polish state archive in Lodz in around 1999, and the identity of the thief or thieves remains unknown.
U.S. Attorney Geoffrey S. Berman said: “A part of Poland’s cultural heritage and historical record were stolen from their state archive 20 years ago. Now, thanks to a New York couple who are doing the right thing, and to HSI for doing its typically excellent work in this field, these important drawings are being returned to the government of Poland.”
HSI Special Agent-in-Charge Angel M. Melendez said: “On the heels of the 75th anniversary of D-Day, returning these drawings to Poland that represent a piece of human history the Nazis attempted to erase underscores the importance of preserving our world history through cultural patrimony for future generations. We continue to pursue criminals who steal and traffic property that belongs to the peoples of the world, while returning those items found to their rightful owners, in this case, Poland.”
The ink-and-watercolor Drawings depict the interior, exterior facades, and floor plans of the Stara Synagogue, which used to stand on Wolborska Street in Lodz. The Stara Synagogue was originally built in 1809 and moved to a new building around 1859 and 1861. The Drawings were made by the prominent Lodz architect Adolf Zeligson in connection with significant renovations to the synagogue that began in around 1897. The Stara Synagogue was later burned down during the Nazi occupation in around 1939, and no trace remains.
Almost 10 years after the theft, the Drawings were put up for sale by an international auction house and were purchased by a Manhattan couple, Meredith Berkman and Daniel Mintz. After Ms. Berkman and Mr. Mintz were informed that the Drawings had been stolen from the Polish state archive, they readily and voluntarily agreed to turn over the Drawings to HSI so that they could be returned to Poland.
The U.S. Attorney’s Office and HSI are now sending the Drawings back to the Polish government.
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Mr. Berman thanked HSI’s Cultural Property, Art, and Antiquities Group for their handling of the investigation. He also thanked Ms. Berkman and Mr. Mintz for their assistance and cooperation. The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney David Zhou is in charge of the case.
Madison County Pill Mill Doctor Pleads Guilty to Illegally Dispensing Prescription DrugsRead the Press Release
BIRMINGHAM – A Madison County physician pleaded guilty Wednesday in federal court to charges related to illegally distributing and dispensing prescription drugs, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
DR. RODNEY MORRIS, 64, pleaded guilty before U.S. District Court Judge Annemarie Carney Axon to sixty-four counts of illegally distributing and dispensing Schedule II controlled substances, including opioid painkillers, outside the scope of professional medical practice and not for legitimate medical purposes. Instead, the evidence shows that Dr. Morris prescribed these painkillers in exchange for sexual favors and monetary gain. He is scheduled for sentencing on October 23, 2019.
“The public should be able to trust that a medical professional would not engage in such aberrant and disgusting conduct,” Town said. “Those who choose to engage in such illicit practices will no longer wear white coats, but instead prison stripes.”
“Unfortunately, Dr. Morris and his criminal conduct represents a disturbing trend in the medical profession for those practitioners who abandon their hypotactic oath,” DEA ASAC Clay Morris said. “Dr. Morris’ actions clearly contributed to continuing the opioid epidemic that is plaguing our communities and country. He will soon be where he belongs…in prison. The DEA, U.S. Attorney’s Office and our law enforcement partners will not stand idly by and allow criminals to profit off of the addictions of others.”
Dr. Morris was known to give preferential treatment to female patients when it came to office visits, drug testing (or lack of thereof), and prescriptions of controlled substances. Records show that between August 2012 and May 2017, Dr. Morris illegally prescribed one particular patient hydrocodone, alprazolam, oxycodone and tramadol in exchange of sexual favors. This patient illegally sold some of these drugs to supplement her income. After the patient’s death in May 2017, Dr. Morris attempted to delete electronic medical records and erase evidence of her being his patient.
According to the Alabama Prescription Drug Monitoring Program, Dr. Morris ranked 67 out of 13,118 medical doctors in the State of Alabama for the number of prescriptions filled for Schedule II, III, IV and V controlled substances. He also ranked seventh in Madison County for the quantity of controlled substances prescribed. From January 1, 2017 through June 27, 2017, Dr. Morris wrote 6,721 prescriptions for controlled substances with the total dosage units being 499,784.
The penalty for illegally dispensing and distributing prescription drugs is a maximum of 20 years in prison and a maximum fine of $1,000,000.
DEA investigated the case, which Assistant U.S Attorney Mary Stuart Burrell is prosecuting.
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Man from Minnesota Charged in New Mexico Federal Court with False Personation of an Officer or Employee of the United StatesRead the Press Release
ALBUQUERQUE – James Christopher Benvie, 44, of Albany, Minn., appeared in federal court today for an initial appearance on an indictment returned by a grand jury in New Mexico charging him with two counts of false personation of an officer or employee of the United States.
The grand jury returned the indictment on Wednesday alleging Benvie committed these offenses in Doña Ana County on April 15, 2019 and April 17, 2019. Benvie made his initial appearance today in the United States District Court for the Western District of Oklahoma after the FBI with the assistance of the Logan County Sheriff’s Office arrested him in Guthrie, Okla. He is scheduled for a detention hearing on Tuesday afternoon and will be transported to the District of New Mexico for prosecution.
Benvie faces up to 3 years in prison if convicted. An indictment is only an accusation. A defendant is presumed innocent until proven guilty.
The FBI investigated this case. Assistant U.S. Attorneys Renee L. Camacho and Randy Castellano of the Las Cruces Branch Office are prosecuting the case.
Man from Dulce, N.m., Charged with Assault Causing Serious Bodily Injury in Indian CountryRead the Press Release
ALBUQUERQUE – Ronnie Tiznado, 46, of Dulce, N.M., appeared in federal court on Wednesday on charges of assaulting his wife on the Jicarilla Apache Nation Indian Reservation.
Tiznado is charged by criminal complaint with assault resulting in serious bodily injury and assault of a spouse by strangling, suffocating, or attempting to strangle or suffocate. According to the complaint, Tiznado sent threatening text messages to his wife while she was working at a store on June 1, 2019. In these text messages, Tiznado threatened to kill the victim and beat her to death. Early the next morning, Tiznado located her at Stone Lake, a community near Dulce, N.M. Tiznado pulled her from her car by the hair and hit, kicked, and choked her. The victim suffered a broken nose and severe bleeding and swelling to her face with one of her eyes swollen shut. She also suffered bruises, scratches, and redness on her neck, arms, ribs, back, and chest, all requiring treatment at a hospital in Farmington.
Tiznado is currently out of custody awaiting trial. He faces up to 10 years in prison if convicted of these offenses. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
The Farmington office of the FBI investigated this case. Assistant U.S. Attorney Frederick T. Mendenhall III is prosecuting the case.
Low-Income Housing Developer Sentenced to Prison for Creating a False Pass-Through Company in Scheme to Defraud Lenders and USDARead the Press Release
DES MOINES, Iowa —On June 19, 2019, Jeffrey W. Voorhees, age 75, of Waukee, Iowa, was sentenced by United States Southern District of Iowa Senior Judge Robert W. Pratt to two years in federal prison, announced United States Attorney Marc Krickbaum. Voorhees pleaded guilty on November 1, 2018, to one count of wire fraud affecting a financial institution. Voorhees was ordered to pay $416,440 in restitution and a fine of $25,000.
During the sentencing hearing, Judge Pratt stated the defendant conducted a “sophisticated, long-running device or scheme.” According to court documents, Voorhees, acting through his own consulting company and what he purported to be a not-for-profit entity called National Affordable Housing Foundation, purchased and rehabilitated seven properties which together formed what was referred to as Candleridge VII. The properties were rehabilitated with a private bank loan, guaranteed by the United States Department of Agriculture in the event of default. Voorhees artificially inflated construction costs and created a pass-through shell company in order to obtain approximately $359,000 in artificially inflated loan proceeds. The loan proceeds were to be repaid using USDA-subsidized tenant rents.
The purpose of the USDA loan programs that the defendant defrauded is to support the development of rental units in rural areas for low- and moderate-income individuals and families. USDA regulates how the loan proceeds can be spent, and also imposes requirements on the borrowers to disclose any identity of interest relationships. According to court records, Voorhees was an expert in these regulations but did not follow them in order to unlawfully profit from the USDA loan programs.
The United States Department of Agriculture - Office of Inspector General investigated this matter. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Louisiana Teacher Sentenced to 135 Months in Prison for Child EnticementRead the Press Release
BOSTON - A Louisiana teacher was sentenced today in federal court in Boston for child enticement related offenses.
Logan Procell, 25, was sentenced by U.S. District Court Judge Denise J. Casper to 135 months in prison and five years of supervised release. In February 2019, Procell pleaded guilty to one count of coercion and enticement of a minor and one count of transfer of obscene material to a minor. Procell was indicted in October 2017 and has been in custody since.
Procell first contacted an 11-year-old Massachusetts girl via Snapchat after seeing her on a different online application that allows users to publish videos in real time. After obtaining her phone number, Procell began communicating with her by text. The child’s parent discovered approximately one month’s worth of their communications in September 2017. The exchange of more than 1600 messages contained sexually explicit images and messages sent by Procell to the child, including pictures of his genitals, requests for her to send him pornographic images of herself, and discussions about meeting her to have sex. At the time of the offense, Procell was a chemistry teacher at a high school in Noble, La.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Valuable assistance was provided by the Louisiana State Police and the Waltham Police Department. Assistant U.S. Attorneys Anne Paruti and Mackenzie Queenin prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Louisiana Couple and Their Business Plead Guilty to Operating Sham Medical Reimbursement Account Program That Defrauded the IRS and Program Participants Out of over $48 MillionRead the Press Release
WASHINGTON – A Covington, Louisiana, couple and their company pleaded guilty for their roles in a scheme to create, market and operate a fraudulent medical reimbursement program that defrauded the IRS and program participants out of over $48 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service Criminal Investigation’s (IRS-CI) Atlanta Field Office, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge Steve Grell of the U.S. Department of Labor, Office of Inspector General’s (DOL-OIG) Dallas Regional Office and Regional Director James Purcell of the U.S. Department of Labor, Employee Benefits Security Administration’s Kansas City Regional Office made the announcement.
Denis Joachim, 53, pleaded guilty to one count of conspiracy to commit money laundering; Donna Joachim, 52, pleaded guilty to one count of conspiracy to defraud the United States; and The Total Financial Group, Inc. (TTFG) pleaded guilty to one count of conspiracy to make false statements and representations in connection with a multiple employer welfare arrangement and five counts of making false statements and representations in connection with a multiple employer welfare arrangement. All the pleas took place before U.S. District Judge Carl J. Barbier of the Eastern District of Louisiana on May 30, 2019, and were unsealed yesterday. Sentencings have been scheduled for Sept. 5, 2019, before Judge Barbier. As part of their guilty pleas, the defendants have agreed to forfeit assets previously seized with a collective value of approximately $6.3 million. Additionally, the defendants acknowledged a potential loss to the victims totaling more than $48 million and agreed to repay restitution for the amount of loss.
According to admissions made as part of the guilty pleas, TTFG was a Louisiana business incorporated by Denis Joachim and Donna Joachim with the Louisiana Secretary of State that was most recently located at 406 N. Florida Street in Covington. TTFG and its owners created and marketed a medical reimbursement account program called “Classic 105,” which operated from about 2012 until January 2017. Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse for medical expenses such as co-pays and deductibles; participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105.
According to the defendants’ admissions, Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a financial institution back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG also told prospective employer-clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount. At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program. In total, TTFG took in not less than at least $25,543,340.70 in fees from the employer-clients and employee-participants, the defendants admitted.
According to the defendants’ admissions, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Rather, TTFG arranged for the contribution, loan and insurance policy to appear as a series of “paper transactions” that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. Consequently, TTFG and the Joachims admittedly caused the underpayment of at least $23,343,442.70 in federal FICA taxes, as well as the underreporting and underpayment of personal federal income taxes. federal unemployment taxes and state unemployment taxes—amounts for which the employer-clients and employee-participants may be individually responsible. It also exposed participants to other adverse financial consequences, including fees and penalties on the unpaid tax and ineligibility from certain government programs, including unemployment payments and reduced Social Security payments, the defendants admitted.
In truth, the only money actually paid to TTFG were the fees, which the Joachims used to make numerous personal expenses, including the purchase of a 26-foot boat, a 2016 Grand Design Solitude recreational trailer, a Chevrolet Corvette, a Jeep Wrangler, a Dodge Ram truck, a Mercedes-Benz CL 550 automobile, a GMC Yukon XL Denali, multiple CAN-AM Maverick 1000R off-road vehicles, jet skis, their 13,000 square foot Covington residence, real property located adjacent to their Covington residence, two residences located in Madisonville, Louisiana, 40 acres of property in Bush, Louisiana, and 125 acres of property in Spring City, Tennessee, the defendants admitted.
This case was investigated by the IRS-CI, the FBI, the DOL-OIG and the Employee Benefits Security Administration. Assistant U.S. Attorneys Jordan Ginsberg and Maria Carboni of the Eastern District of Louisiana and Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Rebecca Pyne of the Criminal Division’s Organized Crime and Gang Section, Labor-Management Racketeering Unit also provided assistance with the prosecution.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and U.S. Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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Lobbyist Pleads Guilty to Filing A False Tax ReturnRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to willfully filing a false tax return.
According to court documents, James F. Miller, 67, underreported his gross income on his 2010 through 2014 tax returns by approximately $2,215,587. Miller, a tax policy lobbyist and former employee of the Justice Department’s Tax Division, filed multiple false tax returns with the Internal Revenue Service (IRS). These returns omitted substantial portions of the partnership income he received from two law firms he worked at and the gross receipts of his own lobbying firm. The total tax loss resulting from Miller’s fraudulent conduct was approximately $735,933.
Miller pleaded guilty to willfully filing a false tax return and faces a maximum penalty of three years in prison when sentenced on September 27. In addition, Miller agreed to pay $753,933 restitution to the IRS. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI) made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Ryan S. Faulconer and Trial Attorney Terri-Lei O’Malley of the Justice Department’s Tax Division are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-178.
Little Rock Man Sentenced to 15 Years in Prison for Child PornographyRead the Press Release
LITTLE ROCK—A Little Rock man was sentenced Thursday for possessing and distributing child pornography that showed children as young as one year old being sexually abused. Kenneth Laren Harvey, 49, of Little Rock, was sentenced to 180 months in federal prison by U.S. District Judge James M. Moody, Jr. The United States Attorney for the Eastern District of Arkansas, Cody Hiland, announced today’s sentencing.
During an online investigation in 2017, detectives downloaded child pornography from an IP address that officers traced to Harvey’s residence. The child pornography that detectives downloaded from Harvey included numerous videos depicting sexual acts being performed on children under the age of 12. Some of the videos were over 30 minutes long.
Based on those downloads, investigators obtained a search warrant for Harvey’s home. Officers seized multiple electronic devices, and forensic examination revealed that Harvey possessed over 2,000 images of child pornography. The images included depictions of sadism and masochism, as well as sexual acts being performed on children as young as one to three years old. During the search, detectives also discovered a peephole in Harvey’s shower, which he used to secretly film women.
“The sexual abuse of any child is abhorrent, but the degree of depravity in this case is especially disturbing because of the infant victims involved,” said U.S. Attorney Hiland. “These images are reprehensible, and collectors of child pornography like this defendant only create demand for more children to be abused. Our office will continue to prosecute those who perpetuate the horrors of the child pornography industry.”
Harvey was indicted by a federal grand jury on January 9, 2018, in an indictment that charged him with one count of possession of child pornography and three counts of distribution of child pornography. In addition to 15 years in prison, Harvey was ordered to pay $2,000 in restitution. Judge Moody also sentenced Harvey to ten years of supervised release following his term of imprisonment.
The investigation was conducted by the Little Rock Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at http://www.justice.gov/edarTwitter: @EDARNEWS
Lincoln Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that David Lombard, 51, of Lincoln, Nebraska, was sentenced today by Chief United States District Judge John M. Gerrard to 87 months in prison for possession of child pornography. After his release from prison, Lombard will serve 10 years of supervised release and be required to register as a sex offender.
In 2015, Homeland Security Investigations, Cyber Crimes Center, Child Exploitation Investigations Unit, found that a person using the username “sirthumper” distributed images of young females on a website catering to individuals interested in child pornography. Investigators identified David Lombard as “sirthumper”.
During an interview in March of 2015, Lombard provided the investigators with several of his electronic devices. A forensic analyst located 104 images of child pornography and seven morphed image files that included adult pornography with an adult male penis in the image with the face of a minor child added to the pornographic image. Agents identified some of the minors as children of Lombard’s coworkers. Lombard obtained innocent images from his coworkers’ social media postings, and those images were morphed with pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by Homeland Security Investigations.
Lewis County man sentenced for role in a methamphetamine distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Douglas Charles Knicely, of Jane Lew, West Virginia, was sentenced today to 120 months incarceration for his involvement in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Knicely, age 37, pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute Methamphetamine” in March 2019. Knicely admitted to participating in a drug distribution operation in October 2018 in Monongalia County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Kiln Man Sentenced to over 7 Years in Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Louis Brent Ladner, 41, of Kiln, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 92 months in federal prison, followed by 4 years of supervised release, for possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration.
On two separate occasions in 2017, Ladner sold methamphetamine to a confidential source. A subsequent search warrant at his residence located approximately two additional ounce of high quality methamphetamine. Ladner pled guilty on March 26, 2019 to one count of possession with intent to distribute methamphetamine.
The case was investigated by the Drug Enforcement Administration and the Hancock County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney John Meynardie.
Justice Department Settles Housing Discrimination Lawsuit Against St. Bernard Parish, LouisianaRead the Press Release
WASHINGTON – The Department of Justice announced Thursday, June 20, 2019 that St. Bernard Parish, Louisiana, has agreed to pay more than $1 million to settle a lawsuit alleging that the Parish violated the Fair Housing Act when it refused to allow two small group homes for up to five children with disabilities to open in single-family neighborhoods.
“The Fair Housing Act prohibits local governments from applying their zoning laws in a manner that discriminates against persons with disabilities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement underscores the Civil Rights Division’s commitment to ensure that children with disabilities have access to housing in all communities.”
“Access to safe, sanitary, and secure housing is a fundamental civil right for all persons within the Eastern District of Louisiana, and this settlement agreement continues efforts to ensure compliance to The Fair Housing Act,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “I commend the cooperative efforts of St. Bernard Parish to reach a resolution that is in the best interests of our community.”
“Persons with disabilities have a right to have access to the type of housing that meets their needs,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement sends a strong message that HUD and the Justice Department are committed to ensuring that cities and municipalities fully adhere to the requirements of the Fair Housing Act.”
The United States’ suit, filed in U.S. District Court in New Orleans, Louisiana, in December 2018, alleged that St. Bernard Parish violated the Fair Housing Act when it denied requests for reasonable accommodations to its zoning ordinance to allow the two group homes to operate in single-family neighborhoods of the Parish. Shortly after learning that the homes were planning to open, the Parish amended its zoning code to prohibit group homes of any size in single-family neighborhoods. The two group home operators filed complaints with HUD, which in turn referred the complaints to the Department of Justice. The group home operators filed a lawsuit in 2016, which they have settled with the Parish.
Under the settlement, St. Bernard Parish will pay $975,000 in monetary damages and attorneys’ fees to the two group home operators, and a $60,000 civil penalty to the United States. The Parish amended its zoning ordinance to permit small group homes in single-family residential districts, amended its reasonable accommodation policy, and will take a number of actions to guard against further housing discrimination. These other actions include training officials and individuals involved in zoning and land use, designating a fair housing compliance officer, and reporting periodically to the Department of Justice during the term of the agreement.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-66-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
June Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 15 indictments charging 17 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Devontez Bobo, age 26, is charged with transportation with intent to promote prostitution on September 6, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, 3-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit property seized on or about September 6, 2018.
* Edwin Mauricio Castro, age 36, is charged with illegal reentry after deportation on or about June 5, 2019, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Judy K. Conley a/k/a Judy K. Werner, age 67, of Sidney, Iowa, is charged in a three-count Indictment. Count I charges the defendant with Social Security Fraud-failure to disclose income beginning on or about July, 2003 and continuing without interruption until around January, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with Social Security Fraud-false statement for determining right to benefits on or about August 30, 2018. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III charges the defendant with Social Security Fraud-false statement an application on or about November 6, 2017. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Brandon Cordero, age 26, of Columbus, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine on May 10, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment.
* Evaristo Fuego-Calel, age 27, is charged with illegal reentry after deportation on or about May 29, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Dylan T. Hedrick, age 25, of Lincoln, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with production of child pornography transported to the United States between on or about May 1, 2018 to May 1, 2019. The maximum possible penalty if convicted is a minimum of 15 years to 30 years’ imprisonment, a $250,000 fine, a 5-year to Life term of supervised release, $100 special assessment. Count II of the Indictment charges the defendant with receipt of child pornography on or about August 18, 2018. The maximum possible penalty if convicted is 5 years to 20 years’ imprisonment, a $250,000 fine, a 5-year to Life term of supervised release, $100 special assessment. Count III of the Indictment charges the defendant with distribution of child pornography, on or about August 29, 2018. The maximum possible penalty if convicted is 5 to 20 years’ imprisonment, a $250,000 fine, a - year to Life term of supervised release, $100 special assessment. Count IV of the Indictment charges the defendant with possession of child pornography, with a prior conviction, on or about April 12, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 5-year to Life term of supervised release, $100 special assessment.
* Jack Eugene Knight, age 53, is charged with assault on a Federal Employee on or about April 17, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jose Loarca Lopez, age 52, is charged with illegal reentry after deportation following a felony conviction on or about May 21, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Maria Isabel Lopez, age 55, of Grand Island, Nebraska, is charged in a three-count Indictment. Count I charges the defendant with theft of Government funds beginning on or about June 19, 2014 and continuing without interruption until around September 11, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with Social Security Fraud-false statement or representation on or about September 10, 2018. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III charges the defendant with Social Security Fraud-occurrence of event affecting right to receive payment on or about November 4, 2011 and continuing without interruption until around September 11, 2018. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Pablo Morales Rodriguez, age 40, is charged in a three-count Indictment. Count I charges the defendant with false representation of a Social Security Number with intent to deceive beginning on or about February 13. 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with false representation of a Social Security Number with intent to deceive beginning on or about February 27. 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III charges the defendant with false representation of a Social Security Number with intent to deceive beginning on or about March 13. 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Antonio Phillip, age 34, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute cocaine on or about January 8, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with possession with intent to distribute marijuana beginning on or about December 18, 2018 until January 8, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, $250,000 fine, a 2-year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with felon in possession of a firearm on or about January 8, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, a 3-year term of supervised release, and $100 special assessment. Count IV of the Indictment charges the defendant with possessing or using a firearm in connection with a drug trafficking crime on or about January 8, 2019. The maximum possible penalty if convicted is Life imprisonment consecutive, $250,000 fine, a 5-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit U.S. currency seized on or about January 8, 2019.
* Edgar Nazael Rodriguez Ordonez, age 31, is charged with illegal reentry after deportation following a felony conviction on or about May 30, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jose Sebastian Urbina Morales, age 40, is charged with illegal reentry after deportation following a felony conviction on or about May 21, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Ashley Whited, age 30, of Sidney, Nebraska, Francisco Herrera, age 35, of Sterling, Colorado, and Jared Schaefer, age 26, of Sidney, Nebraska, are charged with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, beginning on or about March, 2019 and continuing to on or about May, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Herrera with possession with intent to distribute 500 grams or more of methamphetamine on or about May 10, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, a 5-year term of supervised release, and a $100 special assessment.
* Celestino Zavala-Aguirre a/k/a Jesus Tapia-Lopez, age 35, is charged with possession with intent to distribute 500 grams or more of methamphetamine on May 30, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
Jackson Man Sentenced to over Eleven Years for Sex Trafficking of a MinorRead the Press Release
Jackson, Miss. – Courtney Tremel Louie, 24, of Jackson, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to serve a total of 141 months in federal prison, followed by five years of supervised release, on charges relating to sex trafficking of a minor, announced U.S. Attorney Mike Hurst, FBI Acting Special Agent in Charge Steven J. Jenson, and Mississippi Attorney General Jim Hood.
"Trafficking minors for sex is one of the worst, most heinous and despicable crimes we see, and this office will stop at nothing to protect victims and put these criminals behind bars. I want to thank our investigators and prosecutors for diligently pursuing this monster. We will continue to work with all of our law enforcement partners to do all that we can to stamp out human trafficking," said U.S. Attorney Hurst.
Louie was sentenced to 84 months in prison for carrying a firearm during and in relation to a crime of violence (sex trafficking of a minor). He was sentenced to 57 months in prison for using the internet to promote and advertise the unlawful activity (prostitution). The sentences will be served consecutively for a total of 141 months. Louie was also ordered to pay a $1,500 fine.
Beginning on January 1, 2018, and continuing through January 5, 2018, Louie was actively involved with the sex trafficking of a minor he had transported from Tennessee to Jackson. The minor performed commercial sex acts with men for money at various hotels. Louie used the internet to promote his unlawful activity by placing ads on the website "Backpage.com".
The case was investigated by the Federal Bureau of Investigation, Jackson Police Department and the Mississippi Attorney General’s Office. It was prosecuted by Assistant United States Attorney Glenda R. Haynes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Illegal Alien Sentenced to 35 Months in Federal Prison for Unlawful Possession of A FirearmRead the Press Release
Ocala, Florida – Senior U.S. District Judge John Antoon II today sentenced Trinidad Flores-Navarro (43, Mexico) to 2 years and 11 months in federal prison for possessing a firearm as an illegal alien. The court also ordered Flores-Navarro to forfeit a handgun and ammunition. Flores-Navarro had pleaded guilty on March 25, 2019.
According to evidence presented in court, on January 10, 2019, Florida Highway Patrol troopers conducted a traffic stop on an automobile in Sumter County. The passenger, Flores-Navarro, had an ammunition magazine in his pocket. A subsequent search of the vehicle’s center console revealed a loaded 9mm handgun with an additional ammunition magazine. Flores-Navarro, an illegal alien from Mexico, admitted that the firearm belonged to him. He also told the troopers that he had illegally re-entered the United States in 2017, following a federal conviction for cocaine distribution.
This case was investigated by U.S. Customs and Border Protection and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorneys Michael P. Felicetta and Robert E. Bodnar, Jr.
Illegal Alien Pleads Guilty to Unlawful Reentry by an Alien After RemovalRead the Press Release
Gulfport, Miss. – Luis Alberto Preza-Mendez, 31, an illegal alien from Mexico, pled guilty yesterday before U.S. District Judge Sul Ozerden, to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, and Mr. Trey Lund, Acting Field Office Director of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations in New Orleans.
Preza-Mendez was found guilty of the felony offense and is scheduled to be sentenced by Judge Ozerden, on June 20, 2019, at 2:30 p.m. He faces a potential maximum penalty of 2 years in prison, followed by one year of supervised release, and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
On March 12, 2019, the Harrison County Sheriff’s Office notified ICE that Preza-Mendez had been arrested for a domestic disturbance and confessed to being an illegal alien from Mexico. Preza-Mendez was arrested and transported to the Gulfport ICE Office. He was positively identified via a fingerprint scan into the Department of Homeland Security computerized records system which accessed his prior immigration records including photographs, fingerprints and prior removal documents. Electronic database queries confirmed that Mr. Preza-Mendez is a citizen of Mexico who had been physically removed pursuant to a lawful removal order and did not have permission to reenter the U.S.
Preza-Mendez had been officially ordered removed from the United States on October 13, 2013. After being physically removed based on this lawful order, he repeatedly returned to the United States, and was removed multiple times in 2014. At the time of his most recent removal in July, 2014, Preza-Mendez was prohibited from entering, attempting to enter, being in the United States or applying for admission to the United States for a period of twenty years.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations, and the Harrison County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for this case.
Illegal Alien Pleads Guilty to Unlawful Reentry by an Alien After RemovalRead the Press Release
Gulfport, Miss. – Marcos Martinez-Jimenez, 39, an illegal alien from Mexico, pled guilty yesterday before U.S. District Judge Sul Ozerden, to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst and Mr. Trey Lund, Acting Field Office Director of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations in New Orleans.
Martinez-Jimenez was found guilty of the felony offense and is scheduled to be sentenced by Judge Ozerden, on June 20, 2019, at 2:00 p.m. He faces a potential maximum penalty of 2 years in prison, followed by one year of supervised release, and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
On April 17, 2019, during criminal alien program duties at the Jackson County Adult Detention Center, an ICE agent encountered Martinez-Jimenez who was being held for a misdemeanor city noise violation. Martinez-Jimenez was positively identified via a fingerprint scan into the Department of Homeland Security computerized records system which accessed his prior immigration records including photographs, fingerprints and prior removal documents.
Officials confirmed through record checks that Martinez-Jimenez originally was removed from the United States on December 2, 2015. He then, illegally reentered the United States and was removed three additional times on December 6, 2015, December 14, 2015, and December 22, 2015.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations, and the Jackson County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for this case.
Illegal Alien Arrested with Enough Fentanyl to Kill One Million People Pleads Guilty to Heroin TraffickingRead the Press Release
Gulfport, Miss. – Pablo Vega-Ontanon, 53, an illegal alien from Mexico living in Georgia, pled guilty today before U.S. District Judge Sul Ozerden to possession with intent to distribute one kilogram or more of heroin, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On November 6, 2018, Vega-Ontanon and two co-defendants arrived in Gulfport to sell heroin to a confidential informant. They claimed to have ten kilograms of heroin hidden in a compartment of their vehicle. All three were arrested shortly thereafter. The substance was eventually tested and found to contain nine kilograms of heroin and one kilogram of fentanyl.
That amount of fentanyl can produce one million fatal doses.
Vega-Ontanon was indicted on November 27, 2018 along with co-defendants Eder Ortega- Casarrubias and Eric Estudillo Carrazco.
Vega-Ontanon will be sentenced by Judge Ozerden on September 23, 2019 at 9:00 a.m., and faces a maximum penalty of life in prison and a $10,000,000 fine.
Ortega- Casarrubias pled guilty on March 20, 2019 and will be sentenced by Judge Ozerden on June 26, 2019. Carrazco is awaiting trial.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
I-80 Bust Sends Indiana Man to PrisonRead the Press Release
United States Attorney Joe Kelly announced that Robert Eugene Huff, 69, formerly of Indianapolis, Indiana, was sentenced today in Lincoln, Nebraska, to 1 year in prison by Chief United States District Judge John M. Gerrard, for interstate transportation in aid of racketeering. In addition to his prison sentence, Huff will be required to serve 2 years on supervised release. Huff also forfeited $149,746.00 in cash and a 2016 Ford F-350 truck.
In December, 2017, the Lancaster County Sheriff’s Department stopped Huff’s pickup for following too closely as it was travelling through Lancaster County on Interstate 80. Huff was the driver and lone occupant of the vehicle. Huff stated that he had come from Brown County, Indiana, and was going back to his home in Chico, California. During that encounter a K9 officer was called to the scene of the stop. The K9 indicated to the odor of a controlled substance coming from the vehicle and the vehicle was searched.
Upon opening the tailgate and the topper, the deputies saw a large tote, locked and cable-tied to the bed of the pickup. The K9 officer was able to put his hand inside the top of it and pulled out vacuumed-sealed packages of money. There was also a tool chest, which held several bundles of money with sticky notes on them with people’s name and amounts on the notes. The deputies also found a backpack which held a $10,000.00 bundle of one hundred dollar bills, a $3,000.00 bundle of ten-dollar bills and several hundreds of dollars in one-dollar bills.
One of the officers asked Huff about the lock on the tote and Huff stated that he did not have a key for the bag, as it belonged to his son. Deputies later found the key among Huff’s belongings. Once the bags of money were opened, officers stated the currency smelled like raw marijuana. The currency was later tested and tested positive for cannabis. In all, $149,746.00 was recovered from the vehicle.
The deputies also found notes/paperwork/ledgers detailing Huff’s interstate travel across the country with mileage consistent with a trip from Chico, California, to an area south of Indianapolis, then back home to California. These notes provided information indicative of drug distribution activity. The paperwork indicated Huff had made two trips per month from March, 2016, to the date of the traffic stop. Based on an estimated $2,000 per pound value for the purchase of marijuana in California, the money seized by the Officers would convert to approximately 74.8 pounds of marijuana.
This case was investigated by Lancaster County Sheriff’s Department.
Husband and Wife Sentenced to Prison in Compounding Healthcare Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Edward Leonard Wells, Jr. (34, North Carolina) to two years and eight months in federal prison for conspiracy to commit healthcare fraud and aggravated identity theft. On April 18, 2019, Wells’s estranged wife, Alcira Mercedes Wells (34, Connecticut), was sentenced to 18 months in federal prison for conspiracy to commit healthcare fraud. The court also entered a money judgment of $32,747.93, the proceeds of the healthcare fraud conspiracy. Alcira Wells and Edward Wells had pleaded guilty in January 2019.
According to court documents, starting in September 2014 and continuing through February 2015, Alcira Mercedes Wells was a marketing representative for Centurion Compounding, Inc. As such, she earned and was promised commissions for each paid claim resulting from compounded creams marketed by Centurion and prescribed to a health care plan beneficiary recruited by Alcira Wells or other marketing representatives working for her.
Centurion was a marketing firm located in Pasco County that employed representatives to market compounded medications, specifically creams for pain and scars, among others, to beneficiaries of health care benefit programs, particularly TRICARE. These creams ranged in price from approximately $900 to $21,000 for a one-month supply. Centurion paid its marketing representatives a percentage of each paid claim, which ranged from 15-30% of the total claim amount.
Edward Leonard Wells, Jr. was married to Alcira Wells and worked as a Staff Sergeant in the United States Army stationed at Ft. Bragg in North Carolina.
Alcira and Edward Wells conspired to photocopy or otherwise duplicate a doctor’s signature, name, address, NPI number, and DEA number from an authorized prescription for these compounded creams onto scores of forged prescription forms in order to make claims for Centurion marketed creams for TRICARE beneficiaries whom the doctor never saw. This includes claims for prescription compounded creams for the Wells’s own family members, such as their three minor children. Alcira and Edward Wells then submitted and caused to be submitted dozens of fake and fraudulent prescriptions for Centurion-marketed compounded medications for U.S. Army personnel stationed at Ft. Bragg. The purported prescriber of these prescriptions never wrote, authorized, or knew about them.
Edward Wells recruited personnel stationed with him at Ft. Bragg, most of whom were subordinate in rank to him, and paid and offered to pay these TRICARE beneficiaries to obtain the compounded creams.
Alcira and Edward Wells caused TRICARE to be billed at least $1.24 million and TRICARE paid more than $1 million as a result of false and fraudulent claims submitted and caused to be submitted by them during the conspiracy.
This case was investigated by the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services - Office of Inspector General, the Federal Bureau of Investigation, the U.S. Army Criminal Investigation Command, and the Naval Criminal Investigative Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Greenville Man Sentenced for Drug TraffickingRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge Louise W. Flanagan sentenced TRAWN JOVAL RODGERS, 39, of Greenville, North Carolina to 98 months imprisonment, followed by 3 years of supervised release.
RODGERS was named in a three-count Indictment filed on June 13, 2018 charging him with three counts of distribution of a quantity of cocaine. On August 14, 2018, RODGERS pled guilty to one of those charges.
According to the investigation, RODGERS distributed cocaine in Greenville, North Carolina. As part of the investigation, law enforcement made controlled drug purchases directly from RODGERS. On June 19, 2018, RODGERS was arrested, following which officers seized cocaine and drug paraphernalia during a search of his apartment.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click on this link. https://www.justice.gov/usao-ednc/tbnc
Investigation of this case was conducted by the Greenville Regional Drug Task Force consisting of the Greenville Police Department, Drug Enforcement Administration (DEA), Winterville Police Department, East Carolina University Police Department, and North Carolina State Bureau of Investigation. Assistant United States Attorney Dena King represented the government.
Gloucester Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON - A Gloucester man pleaded guilty yesterday in federal court in Boston to bank robbery.
Michael Robinson, 40, pleaded guilty to one count of bank robbery before U.S. District Court Judge William G. Young, who scheduled sentencing for Sept. 24, 2019.
On Nov. 19, 2018, a man, later identified as Robinson, entered the Institution for Savings Bank branch in Gloucester, walked up to the teller counter, passed a handwritten note to the teller, and stole $2,650. Within minutes of the robbery, local police responded to the bank. They reviewed bank surveillance footage and recognized Robinson as the robber. Police also matched bank surveillance footage of Robinson to a recent Facebook photograph Robinson posted the previous weekend. In that Facebook photo, Robinson was wearing the same clothing he wore when he robbed the bank. The investigation also revealed possible locations where Robinson might be, and, only a few hours after the robbery, police apprehended Robinson on a bus in another city.
The charge provides for a sentence of no greater than 20 years in prison, up to five years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Gloucester Police Chief Edward G. Conley made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Gadsden County Deputy Sheriff Charged with Facilitating Drug Trafficking OffensesRead the Press Release
TALLAHASSEE, FLORIDA – Gadsden County Sheriff’s Deputy Joseph Barnes, Jr., 52, of Quincy, has been arrested on a federal criminal complaint alleging that he unlawfully used a communication facility to aid or facilitate the possession with intent to distribute a controlled substance. Barnes was released on court-ordered conditions that included surrendering his two service weapons and the trained K-9 that played prominently in Barnes’ alleged criminal activity. The criminal complaint was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
According to the criminal complaint, Barnes actively aided individuals who distributed drugs in the Gadsden County area by alerting these individuals that federal law enforcement was watching them. In addition, he is alleged to have physically examined drug transport vehicles to determine if law enforcement had attached GPS tracking devices to vehicles about to be used for drug transportation. The complaint also alleges that he used his Gadsden County K-9, which was trained to detect the odor of narcotics residue, to determine whether a law enforcement K-9 could detect the presence of drugs in cars equipped with a hidden compartment to transport a load of drugs. Barnes allegedly used his cell phone to facilitate meetings with these individuals to accomplish these goals.
The criminal complaint and arrest stemmed from an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a joint federal, state, and local cooperative, which targeted a drug trafficking organization.
This case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant United States Attorney Eric K. Mountin is prosecuting the case.
A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Fresno Man Sentenced to over 21 Years in Prison for Methamphetamine Trafficking, Possession of A Firearm, and Interstate Transportation for ProstitutionRead the Press Release
FRESNO, Calif. — On June 17, 2019, Carlos Montano, aka “Loco,” 29, of Fresno, was sentenced by U.S. District Judge Lawrence J. O'Neill to 21 years and 10 months in prison for conspiracy to distribute methamphetamine, being a felon in possession of a firearm, and interstate transportation for prostitution, United States Attorney McGregor W. Scott announced.
According to court documents, Montano was an influential member of the Fresno Bulldogs criminal street gang. Between April 2017 and July 2017, Montano distributed multiple pounds of crystal methamphetamine in the Fresno area, often using others in his distribution activities. During the investigation, Montano discussed the possession and use of weapons, and on two separate occasions, he fled from officers who were attempting to apprehend him. Montano engaged in commercial sex trafficking, exploiting women in multiple cities, including Los Angeles, San Francisco, Las Vegas and New York.
This case is the product of an investigation by Homeland Security Investigations, Federal Bureau of Investigation, Drug Enforcement Administration, Fresno Police Department, Multi Agency Gang Enforcement Consortium, Fresno County Sheriff’s Office, and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey A. Spivak, and Thomas Newman prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Former Sandridge Employee Sentenced to 21 Months in Federal Prison for Fraud and KickbacksRead the Press Release
OKLAHOMA CITY – JOEL MATTHEW EILERTS, 40, of San Diego, California, has been sentenced to 21 months in federal prison for defrauding his former employer, SandRidge Energy, Inc., announced Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma.
On October 25, 2017, Eilerts pleaded guilty to a two-count information that charged conspiracy to commit wire fraud and honest services wire fraud. According to the information, Eilerts worked in SandRidge’s land department from 2009 to 2014. He held the positions of Senior Landman and Land Supervisor before eventually being promoted to Land Manager, a position that made him the highest-ranking employee in SandRidge’s land department overseeing its Oklahoma operations. His position at SandRidge gave him access to confidential information regarding areas where SandRidge hoped to obtain oil and gas leases, including information regarding how much SandRidge was willing to pay in lease bonuses and royalties. He also had authority to hire third-party land brokers to acquire oil and gas leases on behalf of the company.
The information explains Eilerts hired Robert S. Kerr IV of R.S.K. Land and Energy Resources, LLC, and Brian Eischeid of Keystone Land & Minerals, LLC, as third-party brokers to obtain leases on behalf of SandRidge. Rather than paying Kerr and Eischeid a day rate for their services, Eilerts told them the maximum amount SandRidge would pay for a particular mineral interest, and tasked Kerr and Eischeid with securing the lease for less. If Kerr and Eischeid were able to secure a lease for less than SandRidge was willing to pay, they were able to keep the difference as profit. However, Eilerts required Kerr and Eischeid to pay him 1/3 of their profit as a kickback. In total, Eilerts was paid at least $345,000 in kickbacks as part of this scheme.
In addition, the information explains two instances in which Eilerts directed Kerr and Eischeid to obtain leases—one in Alfalfa County and one in Garfield County—in which the purported lessor turned out not to own the leased minerals. Nevertheless, SandRidge issued checks to Eischeid’s company, Keystone Land & Minerals, in the amount of $208,000 to fund the lease bonuses to the lessors. When Eilerts, Kerr, and Eischeid ultimately discovered that the purported lessors did not own title to the leased minerals, they did not return the $208,000 to SandRidge. Instead, at Eilerts’s direction, and without SandRidge’s authorization, they decided to keep the money and split it among themselves. Eilerts himself retained $148,000 in this scheme.
On June 20, 2019, U.S. District Judge Robin J. Cauthron sentenced Eilerts to 21 months in prison. He was also ordered to pay $493,707.59 in restitution to SandRidge. After release from prison, he will serve two years on supervised release. During the first year of supervised release, he is required to complete 104 hours of community service. Eilerts is required to report to the Federal Bureau of Prisons to begin his term of imprisonment by September 3, 2019.
In related cases, Kerr pleaded guilty on November 9, 2017, to a one-count information that charged conspiracy to commit wire fraud. Kerr will be sentenced on July 22, 2019. Eischeid pleaded guilty on April 8, 2019, to one count of misprision of a felony. Eischeid is scheduled to be sentenced on July 9, 2019.
These cases are the result of an investigation by the FBI Oklahoma City Division. They were prosecuted by Assistant U.S. Attorneys Jessica L. Perry and Kerry A. Kelly.
Reference is made to public filings for further information.
Former Pharmacy Professor Sentenced for Transportation of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Philip Gregory, 48, was sentenced today in federal court for transporting child pornography. The Honorable Robert F. Rossiter, Jr. sentenced Gregory to 8 years of imprisonment. There is no parole in the federal system. After his release from prison, Gregory will begin a 10-year term of supervised release and will be required to register as a sex offender. He was further ordered to pay $4,500 in restitution to victims portrayed in the images of child pornography. Gregory was formerly a professor of pharmacy at Creighton University in Omaha, Nebraska.
According to admissions made in connection with his guilty plea, Gregory was identified in 2016 via an investigation initiated by a NCMEC CyberTipline report regarding an individual who had uploaded child pornography into a Google+ Photos internet storage account. The reported IP address resolved to the defendant’s residence, and a search warrant was executed at Gregory’s home. A forensic exam of electronic devices seized pursuant to the warrant revealed that Gregory was in possession of 25,808 image files and 174 videos of child pornography. Additionally, the exam revealed that Gregory had participated in online chats discussing and requesting child pornography from others.
The FBI Child Exploitation Task Force in Omaha investigated this case, in conjunction with the Nebraska State Patrol and the Douglas County Sheriff’s Office. Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael Norris of the District of Nebraska prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Kiddar Capital CEO Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to six and a half years in prison for orchestrating multiple fraud schemes that resulted in total losses of approximately $20 million.
According to court documents, Todd Elliott Hitt, 54, solicited approximately $30 million from investors for a variety of real estate and venture capital investments in the Washington, D.C. area from 2014 through August 2018. The investments included Hitt’s solicitation of approximately $17 million from investors in order to purchase a five-story office building adjacent to a planned future stop on the Silver Line in Herndon. Hitt made false statements and material omissions to investors by failing to disclose that a significant portion of the monies raised were commingled with other unrelated investment projects, used for personal spending to support an extravagant lifestyle and new investor’s funds used to pay off old investors in a Ponzi-like scheme. Hitt’s fraudulent conduct resulted in investor losses of approximately $20 million.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Mark D. Lytle prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-43.
Former Grain Elevator Manager Sentenced to 96 Months in Prison for $5 Million Fraud Scheme, Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of JEROME ROBERT HENNESSEY, 56, to 96 months in prison for mail fraud and income tax evasion. HENNESSEY, who pleaded guilty on February 14, 2019, was sentenced earlier today before Chief Judge John R. Tunheim in U.S. District Court in Fergus Falls, Minnesota.
“As a manager, Mr. Hennessey held a position of trust over the Co-op’s members and their financial interests. Unfortunately, he chose to violate that trust by committing an egregious fraud, stealing from his own colleagues, friends, and neighbors,” said U.S. Attorney Erica MacDonald. “This case has had a significant impact on the Ashby community and its industry. Today’s sentencing is a just outcome and a demonstration of the U.S. Attorney’s Office’s commitment to protecting Minnesotans from all types of crime – including financial crimes.”
According to the defendant’s guilty plea and documents filed in court, from 1988 until September 2018, HENNESSEY was an employee of the Ashby Farmers’ Cooperative Elevator Company (“the Co-op”). Beginning in 2003, HENNESSEY began using his position as the general manager to steal millions of dollars from the Co-op. HENNESSEY wrote hundreds of checks to himself and to third parties for, among other things, renovations and improvements to his residence and a cabin, the purchase of real estate, furniture, jewelry, all-terrain vehicles, outstanding credit card balances, property taxes, expensive hunting trips, taxidermy services, and the shipping costs for animals he had killed during the hunting trips.
According to the defendant’s guilty plea and documents filed in court, HENNESSEY attempted to disguise the payments by writing descriptions on the carbon copies of the checks falsely indicating that the checks were for the purchase of corn and soybeans or other legitimate expenses. HENNESSEY then provided the carbon copies to the Co-op’s bookkeeper, thus ensuring that the Co-op’s accounting records would give the false impression that the funds had been used for legitimate purposes. In order to make sure that the Co-op had sufficient funds to cover its legitimate expenses and to cover the millions of dollars that HENNESSEY stole, HENNESSEY obtained a line of credit for more than $7 million. In total, HENNESSEY stole approximately $5,338,922.21.
This case was the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division, the Grant County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney John Kokkinen prosecuted the case.
Defendant Information:
JEROME ROBERT HENNESSEY, 56
Dalton, Minnesota
Convicted:
- Mail fraud, 1 count
- Income tax evasion, 1 count
Sentenced:
- 96 months in prison
- Three years of supervised release
- $5,338,922.21 in restitution to Ashby Farmers’ Cooperative Elevator Company
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former GBI inspector sentenced for charging over $60,000 on government credit cardsRead the Press Release
ATLANTA - Sandra J. Stevens, f/k/a Sandra J. Putnam, has been sentenced for making more than 325 personal charges totaling over $60,000 on government credit cards when she was a high-ranking member of the Georgia Bureau of Investigation (“GBI”).
“No member of law enforcement is above the law,” said U.S. Attorney Byung J. “BJay” Pak. “Stevens traded the years of distinguished service and trust that she built as an agent for personal gain. Citizens must have confidence in the integrity of those entrusted with law enforcement power.”
“It is imperative sworn officers obey the law while they enforce the law. This sentence sends a clear message that public corruption will not be tolerated and the violators, no matter who they are, will be held accountable,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the indictment, and other information presented in court: the GBI is a statewide agency that provides assistance to the criminal justice system in the areas of criminal investigations, forensic laboratory services, and computerized criminal justice information.
In October 1994, Stevens joined the GBI as an Intelligence Technician. On June 3, 1999, after becoming a Special Agent, Stevens took an oath of office to support and defend the Constitutions of the United States and the State of Georgia; to maintain public trust and abide by the GBI’s Code of Ethics; and to obey the laws of the land and the regulations of the GBI.
As a Special Agent with the GBI, Stevens held several prestigious and high-ranking leadership positions, including being the Special Agent in Charge of the Child Exploitation and Computer Crimes Unit, where she supervised approximately 25 GBI employees; and an Inspector of the Investigative Division, where Stevens supervised approximately 55 GBI employees. As the Inspector of the Investigative Division, Stevens earned more than $100,000 per year.
As a state agency, the GBI participates in Georgia’s Visa Purchasing Card (“P-Card”) Program. P-Cards are credit cards provided to Georgia employees for official business purchases, such as supplies, materials, equipment, and services for official use. State policy expressly prohibits using P-Card for personal purchases. P-Card users are required to reconcile all purchases by electronically uploading receipts for each P-Card transaction.
In 1998, the GBI issued Stevens a P-Card for business-related purchases and expenses. As P-Card holder, Stevens signed an agreement stating that “under no circumstances will [she] use the Purchasing Card to make personal purchases, either for [her]self or for others.”
Nevertheless, from approximately May 9, 2013 to August 17, 2016, Stevens used her P-Card and the P-Cards of other GBI employees to make more than 325 unauthorized purchases of goods and services for her personal benefit or the personal benefit of others, including: a seven-piece dining set for $562.99, a corn hole game set for $229.99, two chaise lounge chairs for $399.99, and a 65-inch ultra HD smart television for $1597.99.
Stevens also submitted altered receipts to the GBI in which she changed the description of the items purchased, the addresses to which the items were shipped, or both the item description and the shipping address. For example, on May 27, 2016, Stevens used another GBI employee’s P-Card to order a $930.12 sofa from Amazon.com that was delivered to her home in Covington, Georgia. Subsequently, Stevens submitted a false receipt to the GBI in which she misrepresented the item description as 12 anti-spyware software discs, rather than a sofa, and misrepresented the shipping address as the GBI’s Headquarters in Decatur, Georgia, rather than her home address.
In total, the GBI paid over $60,000 for more than 325 unauthorized purchases made by Stevens on at least six GBI P-Cards. As a result of Stevens’s scheme to defraud, federal money from the U.S. Department of Justice and U.S. Department of Homeland Security grants was impacted.
Sandra J. Stevens, 46, of Covington, Georgia, was sentenced by U.S. District Judge Steve C. Jones to one year and one day in prison to be followed by two years of supervised release. Stevens was convicted on January 3, 2019, after she pleaded guilty to mail fraud.
This case was investigated by the Georgia Bureau of Investigation, with assistance from the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five Individuals Sentenced for Roles in Southern Vermont Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that five individuals have been sentenced by Chief United States District Judge Geoffrey W. Crawford for their roles in a prolonged conspiracy to distribute heroin and cocaine base in Vermont. On June 19, 2019, Joaquin Diaz-Alicea, a.k.a. “J.J.,” of Springfield, Massachusetts, was sentenced to ten years in federal prison, to be followed by five years of federal supervised release. Previously, Andrew Cruz, a.k.a. “Tone,” of Springfield, Massachusetts, was sentenced to ten years in federal prison to be followed by four years of federal supervised release; Jonthony Maldonado, a.k.a. “Little Tone,” of Springfield, Massachusetts was sentenced to 30 months in federal prison, to be followed by a three-year term of supervised release; Steven Miller, of Vernon, Vermont, was sentenced to one year in federal prison, to be followed by a three-year term of supervised release; and Laura Frankiewicz, of Brattleboro, Vermont, received a time-served sentence, to be followed by a three-year term of supervised release. A sixth defendant, Anthony Serrano, was also charged in the indictment prior to his death, which resulted from a reported gang-related shooting in Springfield, Massachusetts.
As described at the defendants’ sentencing hearings and in court records, between late 2014 and February of 2016, the defendants conspired to distribute large quantities of heroin and cocaine base in and around Brattleboro, Vermont. On November 18, 2014, Cruz and Serrano were stopped in a motor vehicle equipped with a “hide” containing 180 grams of cocaine base, 103 grams of powder cocaine, 30 Oxycodone pills, and a loaded Beretta 9mm handgun. Thereafter, between mid-2015 and early 2016, the Vermont Drug Task Force utilized confidential informants to conduct nine separate controlled purchases of heroin and cocaine base from the members of the conspiracy.
Serrano and Cruz were the leaders of the drug trafficking organization. Cruz’s criminal history included convictions for assault and battery, assault and battery on a police officer, and a 2018 federal conviction in the District of Massachusetts for distribution of cocaine base and possession with intent to distribute cocaine base. In that federal case, the FBI’s Western Massachusetts Gang Task Force was engaged in an investigation into the distribution of heroin, cocaine, cocaine base, and firearms from suspected members of the Latin Kings gang in Holyoke and Springfield. On two occasions Cruz sold an informant a total of 31 grams of cocaine base. Cruz received a three year sentence in federal court in Massachusetts, which will run concurrent to his 10 year sentence.
Diaz-Alicea was immediately subordinate to Cruz in the drug trafficking organization. Witnesses stated that both Cruz and Diaz-Alicea possessed firearms while selling drugs in Vermont. Diaz-Alicea’s criminal history includes four separate firearms-related convictions, as well as convictions for assault and battery, assault with a dangerous weapon (shotgun), malicious damage to a motor vehicle, threats, and assault and battery on a correctional guard. These offenses included an incident in which Diaz-Alicea fired a shotgun at a motor vehicle, and a separate incident in which he approached a vehicle and fired a handgun through the driver’s-side window causing a bullet to strike the driver of the vehicle. Diaz-Alicea has two pending cases in Massachusetts alleging domestic assault and battery and aggravated assault and battery, and a separate case alleging assault and battery, assault and battery with a dangerous weapon, and discharging a firearm. In the latter of these cases, Diaz-Alicea is alleged to have shot an individual twice with a handgun over an alleged drug debt. Diaz-Alicea is presumed innocent of these pending Massachusetts charges.
Maldonado was the drug trafficking organization’s “apprentice.” In addition to selling heroin and cocaine base on behalf of the drug trafficking organization, Miller and Frankiewicz, provided Cruz, Diaz-Alicea, and Maldonado with housing in Vermont in exchange for heroin and cocaine base.
United States Attorney Christina E. Nolan commended the collaborative investigation led by the Vermont State Police Drug Task Force, with support from Drug Enforcement Administration and the Bellows Falls Police Department, stating: “The talent and diligence of the Vermont State Police drug unit, working closely with their federal and local law enforcement partners, led to the dismantling of a very significant drug pipeline from Springfield, Massachusetts to the Brattleboro area. Windham County suffered more overdose deaths than any other Vermont county last year. The U.S. Attorney’s Office will continue to deploy federal enforcement resources to southeast Vermont to remove dangerous, for-profit drug traffickers from its communities and to reduce the supply of deadly drugs flowing up Interstate 91. Drug trafficking organizations like this one will continue to be top targets for federal prosecution and we will pursue serious sentences.”
The case was prosecuted by U.S. Attorney Nolan and Assistant U.S. Attorney Nate Burris. Cruz was represented by Attorney John Mabie. Diaz-Alicea was represented by Attorney Paul Volk. Maldonado was represented by Attorney Peter Langrock. Miller was represented by Attorney Michael Shklar. Frankiewicz was represented by Attorney Thomas Sherrer.
Findlay Market Vendor Convicted of $3.4 Million in Food Stamp FraudRead the Press Release
DAYTON – A husband and wife and their Findlay Market vendor have all been convicted of food stamp fraud. A jury returned the verdict today of guilty on all 25 counts following a two-week trial before U.S. District Judge Thomas M. Rose.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General Investigations, Midwest Region, Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service and Michelle Thourot, Agent-in-Charge, Ohio Investigative Unit, announced the verdict.
A federal grand jury charged Busch’s Country Corner, Inc. and officials with charges related to Supplemental Nutrition Assistance Program (SNAP) fraud in an indictment returned here in June 2018.
According to court documents and trial testimony, from April 2010 until May 2018, Busch’s Country Corner co-owner Michael Busch, his wife, Amanda Jo Busch, and his brother, Randall S. Busch, illegally exchanged cash for SNAP benefits.
The defendants caused more than 195,000 individual SNAP Electronic Benefit Transfer (EBT) transactions to be completed by Busch’s Country Corner, totaling more than $5.4 million. According to witness testimony at trial, approximately 64 percent, or $3.4 million, of those SNAP transactions were fraudulent.
Co-conspirators used an electronic point of sale device in order to process EBT transactions for cash. For example, one transaction included a beginning EBT balance of $1,300 and an ending balance of $11.
Michal and Amanda Busch and Busch’s Country Corner were each convicted on all counts, including conspiracy to steal government funds, submitting false claims, SNAP fraud and wire fraud.
“There is no substitute for trial by jury,” said U.S. Attorney Glassman. “After listening to the evidence attentively for two weeks, this jury rendered verdicts to ensure that the defendants did not get away with getting ahead by stealing taxpayer money.”
Randall Busch previously pleaded guilty and was sentenced to five years of probation.
U.S. Attorney Glassman commended the investigation of this case by the USDA OIG, Secret Service and Ohio Investigative Unit, as well as Assistant United States Attorney Dwight Keller and Deputy Criminal Chief Laura Clemmens, who are prosecuting the case.
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