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Tuesday 7 May 2019
Rochester Man Pleads Guilty for His Role in Drug ConspiracyRead 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 Terrence Morgan, aka Young, 24, of Rochester, NY, pleaded guilty, before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, 28 grams or more of crack cocaine, cocaine, and heroin. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that between April 2018 and August 7, 2018, the defendant was a member of a drug trafficking organization led by co-conspirators Michael Wyatt and Andre Cunningham. During the conspiracy, Wyatt would obtain quantities of fentanyl, cocaine and heroin from various suppliers, including but not limited to Ulises Vargas, who in turn was supplied by Clifford Billins, among others. After obtaining a supply, Wyatt and Cunningham supervised and directed the distribution and sale of those controlled substances to individual drug users, at various drug houses maintained for that purpose in the City of Rochester. The drug houses were operated by members of the conspiracy, including Morgan. The locations of the drug houses included 218 Emerson Street and 131 Saratoga Avenue.
At the direction of Michael Wyatt and/or Andre Cunningham, the defendant was responsible for processing, breaking down, and re-packaging the controlled substances into smaller quantities to be sold to individual drug users. Morgan was also responsible for selling the controlled substances to individual buyers. The proceeds from these individual sales were collected from the defendant and others by Michael Wyatt and/or Andre Cunningham at regular intervals. Morgan was compensated for his role in the conspiracy.
In addition, between July 2018 and August 7, 2018, the defendant possessed a firearm in connection with the narcotics conspiracy.
Michael Wyatt, Andre Cunningham, and Ulises Vargas were previously convicted and are awaiting sentencing. Charges remain pending against Clifford Billins. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea is the result of an investigation by Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; and the Rochester Police Department, under the direction of Chief La’Ron D. Singletary.
Sentencing is scheduled for August 5, 2019, at 3:30 p.m. before Judge Geraci.
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Robert Edward Kinsler Sentenced to Serve 151 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On May 6, 2019, Robert Edward Kinsler, 49, of Bean Station, Tennessee, was sentenced by the Honorable Pamela L. Reeves, Chief U.S. District Court Judge, to serve 151 months in federal prison.
Kinsler pleaded guilty in February 2019 to conspiring with codefendants Stephen Earl Mayes, 62, of Morristown Tennessee; Wendy Kaye Warf, 40, of Morristown, Tennessee; Jacob Christian Carter, 33, of Rogersville, Tennessee; and others, to distribute methamphetamine.
Carter is scheduled to be sentenced on May 13, 2019. Sentencing for Warf is set for July 15, 2019. Sentencing for Mayes is set for June 20, 2019.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and the FBI. Assistant U.S. Attorney Robert Reeves represented the United States in court proceedings.
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Repeat Columbia County Sex Offender Found Guilty of Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – John G. Stroming, age 60, of Stuyvesant, New York, was found guilty today of sexual exploitation of a child following a 2-day jury trial.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Acting Superintendent Keith M. Corlett.
The evidence at trial showed that Stroming video-recorded himself sexually abusing a 19-month-old child and that he also possessed child pornography involving other children. At the time of the crimes, Stroming was required to register as a sex offender. He has sex offense convictions including for rape in the second degree (2011) and promoting an obscene sexual performance by a child (1999).
Sentencing is set for September 9, 2019 before Senior United States District Judge Norman A. Mordue. Stroming faces at least 35 years in 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 New York State Police and the FBI, and is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Shira C. Hoffman.
Rashan Michel Pleads Guilty in Manhattan Federal Court to Bribing Former Division I Men’s Basketball Coach Chuck PersonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that RASHAN MICHEL, the owner of a bespoke clothing business in Atlanta, Georgia, pled guilty in Manhattan federal court today to agreeing to facilitate bribes from a financial adviser to Chuck Connors Person (“Person”), a former Auburn University men’s basketball coach. The bribes were provided in exchange for Person using his influence over Auburn basketball players to retain MICHEL’s services and the services of the financial adviser paying the bribes. MICHEL pled guilty before U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Rashan Michel was paid to facilitate bribe payments from a financial adviser to college basketball coaches. His corruption of the system was significant but, sadly, far from unique. Indeed, in the last year this Office has convicted nine defendants in connection with fraud or bribery in the world of college basketball. We will continue to pursue those who offer or take bribes to influence student-athletes without regard to their interest.”
According to the Complaint, the Indictment, statements made in court, and publicly available documents:
In the fall of 2016, MICHEL, the founder and operator of a clothing store that specialized in making bespoke suits for professional athletes, met a financial adviser and business manager who, unbeknownst to MICHEL, was providing information to law enforcement (“CW-1”). MICHEL told CW-1 that MICHEL could introduce CW-1 to several college basketball coaches, including Person, who was then a men’s basketball coach at Auburn University, who would be willing to accept bribes from CW-1. MICHEL and CW-1 agreed to offer such bribes in return for the coaches’ agreeing to exert their influence over student-athletes to retain the services of Michel and CW-1 once the student-athletes entered the National Basketball Association (“NBA”).
In November 2016, MICHEL, who had a preexisting relationship with Person, arranged a meeting in Auburn, Alabama, to introduce CW-1 to Person and to broker the arrangement between CW-1 and Person whereby CW-1 would provide bribes to Person. At that meeting, in exchange for bribes, Person agreed to exert his influence over certain student-athletes Person coached at Auburn University to retain the services of CW-1 and MICHEL once those players entered the NBA. Over the next several months, in exchange for the bribes described above, Person did, in fact, arrange a meeting among CW-1, MICHEL and an Auburn student-athlete in Manhattan. At that meeting, Person falsely touted CW-1’s qualifications as a financial adviser and business manager without disclosing that Person was, in fact, being bribed to recommend CW-1 to the student-athlete. In connection with the bribery scheme, Person also steered the parent of a second student-athlete to CW-1.
In addition to brokering the bribery scheme with Person, MICHEL also solicited and received for himself tens of thousands of dollars in payments from CW-1 in exchange for introducing CW-1 to Person, and for promising to introduce CW-1 to other basketball coaches at NCAA Division I universities to engage in a similar bribery arrangement. Ultimately, MICHEL did introduce one member of a university athletics department to CW-1 for the purpose of engaging in a similar scheme. Working with MICHEL, CW-1 made payments to that individual, who in turn attempted to steer the parent of a student-athlete to CW-1.
In all, CW-1 paid more than $91,500 in bribes to Person, and paid MICHEL $24,000 for his role in the scheme.
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MICHEL, 44, of Atlanta, Georgia, pled guilty to one count of conspiracy to commit bribery. As a condition of his plea, MICHEL agreed to forfeit $24,000. The charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for September 18, 2019, before Judge Preska.
Mr. Berman praised the work of the Federal Bureau of Investigation and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert L. Boone, Aline R. Flodr, Noah Solowiejczyk, and Eli J. Mark are in charge of the prosecution.
Ramsey County Man Indicted for Sexually Exploiting Children in the PhilippinesRead the Press Release
United States Attorney Erica H. MacDonald today announced a fourteen-count federal indictment charging ALAN DENNIS WOLFF, 56, with sexually exploiting children in the Philippines. WOLFF was initially charged in a criminal complaint on April 5, 2019, and was indicted on May 6, 2019. He is currently in custody in the Sherburne County Jail pending further court proceedings.
According to the allegations in the indictment and the criminal complaint, from January 2013 through February 2019, WOLFF used various Facebook accounts to communicate with other Facebook accounts purporting to belong to minor girls, some as young as 13 years old, in the Philippines. WOLFF repeatedly engaged the girls in graphic, sexually explicit conversations, sometimes telling the girls that he loved them, wanted to marry them, and wanted to meet them during his next trip to the Philippines. WOLFF repeatedly asked the minor girls to send him naked images or recordings and, on several occasions, he sent the girls images and recordings of himself that were sexual in nature. WOLFF also sent money via MoneyGram to the Philippines in exchange for the images and recordings. WOLFF traveled to the Philippines at least three times.
This case is the result of an investigation conducted by the FBI.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Kayser.
Defendant Information:
ALAN DENNIS WOLFF, 56
Ramsey County, Minn.
Charges:
- Sexual exploitation of children, 12 counts
- Transfer of obscene material to minors, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Sentenced to 3 Years in Prison for Illegally Possessing a Handgun at Monroeville MallRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years and one month (37 months) in prison and three years’ supervised release on his conviction of being a felon in possession of a handgun, United States Attorney Scott W. Brady announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Christian Erik Ralph, 24.
According to information presented to the court, on December 26, 2017, security guards at the Monroeville Mall saw Ralph in possession of a handgun near one of the mall’s stores. The officer asked Ralph whether he had a conceal/carry permit for the weapon. Ralph did not reply and began to walk away. The Monroeville Police Department was provided with a description of Ralph and dispatched a unit. The police encountered Ralph near one of the mall’s entrances. Ralph admitted to the officers that he was armed and was placed under arrest. In 2016, Ralph had been convicted in state court of possession with intent to deliver a controlled substance and for carrying a firearm without a license, both of which are felonies. Federal law Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney Michael Leo Ivory prosecuted this case on behalf of the government.
United States Attorney Brady commended the Monroeville Mall Security Department, the Monroeville Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Ralph.
The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Pharmacists Plead Guilty to Federal Drug Trafficking and Fraud ChargesRead the Press Release
John Shedd and Terry Tooley Admitted Filling Controlled Substance Prescriptions They Knew Were Written For No Legitimate Medical Purpose
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that John Shedd, 71, of Albion, Michigan, and Terry Tooley, 64, of Spring Arbor, Michigan, pled guilty to conspiracy to distribute prescription drug controlled substances, and conspiracy to commit healthcare fraud. Shedd and Tooley, who formerly owned Parks Drug Store in Albion, Michigan, face up to five years in federal prison for their crimes. As part of their guilty pleas, they also agreed to permanently surrender their DEA pharmacy registrations, forfeit $1.2 million to the United States, and pay $500,000 in restitution to the healthcare benefit programs they defrauded.
Shedd and Tooley admitted that they filled opioid prescriptions written by former Albion doctor Horace J. Davis, even though they knew those prescriptions had been written for no legitimate medical purpose. Dr. Davis was convicted in 2017 of federal drug trafficking crimes and healthcare fraud. Shedd and Tooley also admitted they conspired to bill Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescriptions that were never written, and forged documents in connection with their false healthcare billings.
"We are committed to fighting the opioid epidemic, and will prosecute the doctors, nurses, pharmacists, and other healthcare providers who feed the epidemic by writing and filling opioid prescriptions for no legitimate medical purpose," U.S. Attorney Birge said.
Timothy Plancon, Special Agent in Charge of the DEA’s Detroit Field Division said, "Today’s guilty plea exemplifies DEA’s determination to combat the troubling prescription drug and opiate abuse problem currently plaguing this country."
Manny Muriel, Special Agent in Charge of Detroit’s IRS Criminal Investigation, stated, "Shedd and Tooley submitted bogus claims to Medicare, Medicaid and others, resulting in hundreds of thousands of dollars going into their own pockets. The IRS is aggressively pursuing unscrupulous medical professionals that defraud American taxpayers."
The investigation was conducted by the Albion Department of Public Safety, Calhoun County Sheriff’s Office, DEA, and IRS Criminal Investigations. Assistant United States Attorney Clay Stiffler prosecuted the case.
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Pennsylvania Man Sentenced to Prison for Tax EvasionRead the Press Release
An Aliquippa, Pennsylvania, man was sentenced to 18 months in prison for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to evidence presented in open court, William Rains failed to timely file his individual income tax returns for tax years 1997, 1999, and 2003-2006. Rains also filed false returns for 2000 and 2001, reporting zero income when he in fact he had earned income in those years. The Internal Revenue Service (IRS) assessed over $200,000 in taxes against Rains for all of these years, as well as for tax year 2008.
From July 2005 through December 2016, Rains evaded the payment of his taxes and sought to thwart IRS collection efforts. He concealed his income and assets from the IRS by using multiple bank accounts, entities, a nominee, and a false IRS financial form. He also caused his wife to move money into accounts in her name and to purchase bank checks to prevent the IRS from collecting taxes he owed.
U.S. District Court Judge Donetta W. Ambrose, sitting in Pittsburgh, Pennsylvania, also ordered Rains to serve three years of supervised release and to pay $207,634 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Shawn Noud and Christopher O’Donnell of the Tax Division, who prosecuted the case.
Passaic County, New Jersey, Man Convicted in Heroin Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was convicted today on charges that he conspired to distribute at least one kilogram of heroin, U.S. Attorney Craig Carpenito announced.
Yasmil Minaya, a/k/a “Animal,” 33, was convicted on both counts of the indictment against him: one count of conspiracy to distribute one kilogram or more of heroin and one count of distribution and possession with intent to distribute one kilogram or more of heroin. Minaya was convicted following a two-week trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated one day before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Law enforcement officials learned that Minaya and his co-defendants were serving as New Jersey and New York area distributors for a drug trafficking organization operating in the Dominican Republic, Mexico and elsewhere. The organization’s narcotics were usually transported to this area via truck and were paid for by the defendants before being sold on the street. The drug organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015, four kilograms in November 2015, and 10 kilograms in January 2017.
The counts on which Minaya was convicted carry a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a maximum fine of $10 million per count. Sentencing is scheduled for Sept. 4, 2019.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents with the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and officers with the N.J. State Police, Trafficking North Unit, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark and U.S. Attorney Carpenito.
Parent Charged in College Admission Case Pleads GuiltyRead the Press Release
BOSTON – A California parent charged in the college admissions case pleaded guilty today in federal court in Boston in connection with paying $400,000 to facilitate his child’s admission to Georgetown University.
Stephen Semprevivo, 53, of Los Angeles, Calif., pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 11, 2019.
As set forth in the charging documents, Semprevivo paid $400,000 to facilitate his son’s admission to Georgetown University as a purported tennis recruit.
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. According to the terms of the plea agreement, the government will recommend a sentence of 18 months in prison, one year of supervised release, and a fine of $95,000. 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 case.
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.
Owners of Colorado Biomass Plant Pay $2.6 Million to Resolve Allegations They Defrauded A Renewable Energy ProgramRead the Press Release
DENVER – Three companies and two individuals have agreed to pay a total of $2.6 million to resolve allegations that they violated the False Claims Act by obtaining reimbursements from a federal renewable energy program to pay for costs they never actually incurred, U.S. Attorney Jason Dunn announced today.
Under a program created by Congress in the American Recovery and Reinvestment Act of 2009, companies that place into service “renewable energy properties,” including biomass power plants, can apply to get reimbursements for up to 30 percent of the costs they incurred in placing those properties into service. Companies submitted applications for these payments to the National Renewable Energy Laboratory (“NREL”) in Golden, Colorado. The funds for the reimbursement came from the U.S. Treasury. Those funds were set aside under section 1603 of the 2009 Act, under a program commonly known in the renewable energy industry as the “1603 Program.”
The resolution at issue involves three companies that developed a biomass power plant in Gypsum, Colorado. The companies were Eagle Valley Clean Energy, LLC (“Eagle Valley”), its parent company Evergreen Clean Energy Corporation (the “Corporation”), and Evergreen Clean Energy, LLC (“Evergreen”). Dean Rostrom and Kendric Wait were principals and had ownership interests in the three corporate entities.
The United States contends that in 2014, Eagle Valley applied to the 1603 Program, seeking reimbursement for its investment in the Gypsum plant. As part of its application, Eagle Valley contracted with Evergreen to perform “development services.” The contract entitled Evergreen to a fee based on a percentage of the cost of building the plant. Based on this contract, Treasury reimbursed Eagle Valley 30 percent of the costs associated with the fee Eagle Valley would pay Evergreen under the development services agreement. After receiving these funds from Treasury, Eagle Valley did not pay the fee. Instead, it wrote off the development fee owed to Evergreen, and Evergreen never requested or demanded payment of the fees Eagle Valley owed Evergreen under the contract. Because the fee was written off, Treasury, in effect, reimbursed Eagle Valley for 30% of a payment Eagle Valley never made. Once Eagle Valley decided that it would not be paying the Evergreen the fee for the development services, Eagle Valley was required to notify Treasury and return the money it received. But Eagle Valley never notified Treasury, and the United States alleged that this conduct violated the False Claims Act.
Under the terms of the settlement agreement, Eagle Valley paid $2,350,000, and Dean Rostrom and Kendric Wait each paid $125,000 to the United States.
“This program had important goals: jump-starting the economy during the Great Recession, and helping companies that took real steps to move our renewable energy industry forward. Taxpayers paid for that program. Companies and individuals who get taxpayer money from government programs like this one, but don’t do what they promised to do, will be held to account and will face consequences,” said U.S. Attorney Jason Dunn.
Treasury Inspector General Eric M. Thorson thanked the U.S. Attorney’s Office and the U.S. Department of the Treasury for their hard work and partnership on this case and previous cases involving the American Recovery and Reinvestment Act. He stated, “this settlement reinforces the commitment of the Treasury OIG to pursue cases against those who defraud the U.S. Treasury Department and misuse public funds.”
The claims resolved by this settlement are allegations only.
This matter was investigated by the U.S. Department of the Treasury’s Office of Inspector General. It was handled by Assistant U.S. Attorney Zeyen Wu.
Owner of Mike’s Famous Roast Beef & Pizza Pleads Guilty to Failing to Report $1.9 Million in Business ReceiptsRead the Press Release
BOSTON – The owner of Mike’s Famous Roast Beef & Pizza in North Reading pleaded guilty today in federal court in Boston to committing tax fraud by failing to report approximately $1.9 million in business receipts.
Emanuel Panousos, a/k/a Mike Panousos, 43, of Peabody, pleaded guilty to two counts of aiding and assisting in filing false corporate tax returns. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 15, 2019.
Panousos is the sole owner of Mike’s Famous Roast Beef & Pizza in North Reading. From 2013 through 2015, Panousos skimmed business cash receipts totaling about $1.9 million, and failed to report those cash receipts to his tax preparer or on the restaurant’s corporate tax returns. As a result, Panousos avoided paying both corporate and personal taxes totaling approximately $387,180 during those years.
The charge of aiding and assisting the filing of false tax returns provides for a sentence of no greater than three years in prison, one year 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 and Kristina O'Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Orange Park Man Charged with Production of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Michael Glenn Chope, (55, Orange Park) with four counts of production of child pornography. If convicted, Chope faces a maximum penalty of 30 years in federal prison for each count. Chope has been ordered detained pending trial.
According to court documents, on March 13, 2019, detectives from the Clay County Sheriff’s Office met with Chope regarding the investigation into a cyber-tip from the National Center for Missing and Exploited Children related to child pornography. Chope confirmed his email address and telephone number were the same ones identified during the investigation and stated he was the only one to use his electronics and computers. Chope also admitted to viewing and possessing child pornography, including on several devices in his home. Detectives seized multiple electronic devices from Chope’s home and analyzed their contents. The detectives located numerous images produced by Chope depicting him sexually abusing and exploiting a child to whom he had access. Following Clay County Sheriff’s Office’s contact with Chope, he fled the state. Chope was arrested on April 3, 2019, in Rowlett, Texas.
Chope was originally charged by federal complaint for a single count of production of child pornography. He was later indicted for four counts of production of child pornography that had been created between approximately May 2015 and February 2018.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Ashley Washington and Kelly Karase.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oilman’s Fraud Leads to Six Years in PrisonRead the Press Release
OKLAHOMA CITY – KEVIN WIECK, of Cromwell, Oklahoma, has been sentenced to six years in prison for wire fraud and money laundering, announced First Assistant U.S. Attorney Robert J. Troester.
On July 3, 2018, a federal grand jury returned a fifteen-count superseding indictment against Wieck, who owned and operated Wieck Oil Company, LLC. According to the indictment, Wieck’s fraudulent scheme involved two types of oil wells: three "vertical" wells and a "horizontal" well. Wieck sold working interests in the vertical wells that supposedly guaranteed investors percentages of oil revenue. He allegedly kept the majority of the money for himself rather than paying investors. Wieck sold and attempted to sell percentages of his supposed ownership interest in the horizontal well, when he in fact never actually owned—and therefore had no right to sell—any portion of that well. The five money laundering counts involved transfers of criminal proceeds in amounts larger than $10,000 between bank accounts. According to the indictment, Wieck fled to Mexico around late August 2014. He has been in the custody of the U.S. Marshals Service since April 11, 2018.
Trial began on September 11, 2018. Eight investors from Tulsa, Edmond, Michigan, Illinois, and elsewhere testified about Wieck’s false promises and misrepresentations in connection with the vertical wells. These investors had invested cash, co-signed loans with Wieck, or provided in-kind services such as drilling, road work, and construction on the wells at reduced rates. Two investors testified that Wieck solicited investments in the horizontal well. A local energy company executive who later assumed control of the three vertical wells confirmed that Wieck had a right to participate in the horizontal well but had never paid to exercise that right. He further explained that Wieck filed oil and gas assignments late and failed to secure division orders to pay investors directly. Instead, he exercised a "quick pay" option, which funneled all revenue into his own bank accounts.
An FBI forensic accountant confirmed during trial that Wieck received more than $1.17 million in revenue and—even after production and operating costs—pocketed at least $600,000, in addition to the value of investors’ in-kind contributions. Wieck’s ex-wife corroborated that she and Wieck splurged on hotel stays, vacations, and large purchases when investments came in.
After three days of testimony, a jury deliberated for approximately two hours before returning guilty verdicts on all counts on September 14.
On May 6, 2019, Chief U.S. District Judge Joe Heaton sentenced Wieck to 72 months in prison, or six years, to be followed by three years of supervised release. The court also ordered him to pay $358,256.92 in restitution to eight individual investors throughout the United States, as well as $1,500 in special assessments.
This case is the result of an investigation by the FBI Oklahoma City Division. Assistant U.S. Attorneys Julia E. Barry and William E. Farrior prosecuted the case.
Reference is made to court filings for further information.
Ohio man indicted for firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Tribett, of Bellaire, Ohio, was indicted by a federal grand today on a firearms charge, United States Attorney Bill Powell announced.
Tribett, age 46, was indicted on two counts of “Unlawful Possession of a Firearm.” Tribett, having been previously convicted of a felony, is accused of having a .9mm pistol, a 6.35 caliber pistol, and a 22 caliber revolver in January and March 2019 in Ohio County.
Tribett faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
New Orleans Man Sentenced for Making False Statements to a Financial InstitutionRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PATRICK HEALEY, age 34, of New Orleans, and a former employee of an undisclosed entity, ABC Homes, LLC, located in St. Bernard Parish, was sentenced May 1, 2019 for his role in making false statements to a financial institution.
According to court documents, beginning in or around October 24, 2008 and continuing to on or about May 31, 2009, HEALEY, along with co-defendants JARED CASTELLAW and VALERIE SCHONES made false statements to the Federal Housing Administration (“FHA”) in order to assist low-income borrowers in qualifying for FHA insured loans for which they would not otherwise have qualified. In total, due to the acts of the defendants, the FHA suffered a loss in excess of $852,415.
HEALEY was sentenced to time served, supervised release of 5 years, a special assessment of $100, and ordered to pay restitution in the amount of $852,415.
U.S. Attorney Strasser praised the work of the Department of Housing and Urban Development, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sharan E. Lieberman and Edward J. Rivera.
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Milton Man Sentenced for Sex TraffickingRead the Press Release
BOSTON – A Milton man was sentenced today in federal court in Boston for federal sex trafficking charges.
Duhamel Cassagnol, 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to 17 years and three months in prison, five years of supervised release, and was ordered to pay restitution of approximately $13,249 to a group of four victims. In September 2018, Cassagnol pleaded guilty to sex trafficking by force, fraud, or coercion; engaging in a conspiracy to commit sex trafficking; and transporting three individuals for prostitution. In December 2017, Cassagnol was arrested along with Geneiva Whaley, 24, of Connecticut. In May 2018, Whaley pleaded guilty to one count of transportation of an individual for prostitution. In October 2018, she was sentenced to 12 months in prison and five years of supervised release.
Between approximately July 2014 and February 2016, Cassagnol worked with Whaley to prostitute at least four victims. Cassagnol and Whaley advertised the victims using online ad‑posting sites, including Backpage.com, and housed the victims in hotel rooms reserved in Whaley’s name in Massachusetts, Connecticut, New York and Florida. Using online advertisements, Cassagnol and Whaley attracted sex-for-a-fee clients whom they directed to the hotel rooms that housed their victims. Those victims generally had little or no control over what acts they were required to engage in or what fee would be charged for those acts. After the clients left, Cassagnol or Whaley collected the full proceeds from the victims, leaving the victims dependent on Cassagnol and Whaley for food and shelter.
Cassagnol and Whaley’s victims were all addicted to drugs, usually heroin, and to keep them compliant, Cassagnol and Whaley provided them with drugs in exchange for the income the women earned through prostitution. The victims were only entitled to drugs if they generated income. With three of the victims, Cassagnol was sometimes violent, and he threatened violence against all four. The violence included beating the victims and, in at least one instance, forcing a victim to use drugs against her will.
The charge of sex trafficking through force, fraud, or coercion provides for a sentence of no less than 15 years and up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of transporting an individual for prostitution provides for a sentence of up to 10 years in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. Each count also provides for mandatory restitution and potential forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Assistance with the investigation was provided by the Massachusetts State Police, Lexington and Needham Police Departments, and Vernon (Connecticut) Police Department. Assistant U.S. Attorney Brian A. Pérez-Daple of Lelling’s Civil Rights Enforcement Team is prosecuting the case.
Mexican National Convicted of Illegal Reentry for a Third TimeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that FABIOLA BASTIAN MOJICA, 38, a citizen of Mexico most recently residing in Stamford, pleaded guilty today in Hartford federal court to reentry of a removed alien. It is Bastian Mojica’s third conviction for illegal reentry.
According to court documents and statements made in court, in May 2003, Bastian Mojica, who at the time was a lawful permanent resident of the U.S., was convicted in Stamford superior court of possession of a hallucinogen/marijuana. Bastian Mojica’s lawful permanent residence status was revoked and, in November 2003, she was removed to Mexico.
In October 2005, Bastian Mojica was arrested by Greenwich Police and was subsequently convicted in state court of evading responsibility resulting in injury/property damage, and possession of marijuana. She was also charged and convicted in federal court of reentry of a removed alien. In January 2008, Bastian Mojica was removed to Mexico.
In July 2008, Bastian Mojica was arrested in Stamford. She was again removed to Mexico in August 2008.
In January 2010, Bastian Mojica was apprehended by the U.S. Border Patrol in Columbus, New Mexico. She was subsequently charged in the District of New Mexico with illegal reentry of a removed alien, and with violating the conditions of her supervised release related to her prior conviction for illegal reentry. She was convicted of both offenses and, following the completion of her sentence, was removed to Mexico in April 2011.
On October 23, 2018, Bastian Mojica was arrested by Stamford Police for a motor vehicle violation, and was subsequently charged with failure to appear. On March 7, 2019, after her identity was confirmed through a fingerprint analysis, she was arrested on a federal criminal complaint charging her with illegal reentry. She has been detained since her federal arrest.
Bastian Mojica is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on July 17, 2019, at which time she faces a maximum term of imprisonment of 10 years.
The investigation was conducted by the Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Mexican Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
NORFOLK, Va. – A Mexican man was sentenced today to 10 years in prison for conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine.
According to court documents, Ulises Garcia-Razo, 39, flew from Mexico to Norfolk on two occasions in June and July of 2018 to collect over $500,000 in narcotics proceeds and to retrieve multiple kilograms of unsold cocaine that had previously been shipped to Virginia. Garcia-Razo acted on behalf of a large-scale cocaine trafficking organization based in Mexico and California whose members orchestrated the delivery of at least two large shipments of cocaine in the spring and early summer of 2018. The cocaine was shipped cross-country by truck and delivered to a Public Storage business in Virginia Beach disguised as hot-air balloon equipment. In July 2018, Garcia-Razo and other co-defendants were arrested at a local hotel with 8 kilograms of cocaine and a large amount of cash after FBI, DEA, and Norfolk Police set up a successful sting operation.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Goodfellas. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Sherrie S. Capotosto 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. 2:18-cr-156.
Members of Methamphetamine Distribution Organization SentencedRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced James Kamisky (54, Augusta, GA) to 20 years in federal prison for his role in a drug conspiracy involving the distribution of large quantities of methamphetamine in Orlando. In addition, Jada Thomas (28, Orlando) was sentenced to 11 years and 8 months in federal prison for her participation in the drug conspiracy and for possessing a firearm in furtherance of a drug-trafficking crime, and Dejah Gooding (23, Snellville, GA) was sentenced to 9 years and 2 months’ imprisonment for her participation in the drug conspiracy.
Kamisky had pleaded guilty on January 15, 2019. Thomas and Gooding had pleaded guilty on January 22, 2019, and December 18, 2018, respectively.
According to court documents, in November 2018, Kamisky possessed with the intent to distribute more than 2 kilograms of methamphetamine. Kamisky provided Thomas and Gooding with approximately 1.4 kilograms of this methamphetamine, which they attempted to sell to a Drug Enforcement Administration informant on November 13, 2018, at an Orlando resort. At the time of the attempted sale, Thomas was in possession of a loaded firearm. Later in the day on November 13, 2018, Kamisky attempted to deliver more methamphetamine to Thomas and Gooding, at which time law enforcement agents arrested him after a brief vehicle pursuit.
“The Drug Enforcement Administration is committed to investigating those individuals or organizations that are distributing dangerous drugs, committing acts of violence, and fueling the addiction that destroys communities and families,” said Assistant Special Agent in Charge Marcus R. Anderson.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Florida Highway Patrol, the Seminole County Sheriff’s Office, the Brevard County Sheriff’s Office, and the Longwood Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
MS-13 Gang Member Sentenced to More than 25 Years in Prison for Attempted Murder that Left a 16-Year-Old ParalyzedRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Kevin Paniagua, a member of the Centrales Locos Salvatruchas (CLS) clique of La Mara Salvatrucha, also known as MS-13, a transnational criminal organization, was sentenced by United States District Judge Roslynn R. Mauskopf to 308 months in prison for the October 23, 2016 attempted murder of a 16-year-old victim suspected of being a member of the rival 18th Street gang. Paniagua pleaded guilty to the charges in June 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Paniagua has been held responsible for wanton violence he committed on behalf of of the MS-13 gang that left a teenager paralyzed,” stated United States Attorney Donoghue. “The Department of Justice and its law enforcement partners will continue working tirelessly to eradicate the MS-13 and all gangs that threaten the safety of our communities.”
“These gangs require violence of new recruits, and Mr. Paniagua did all he could to live up to their dangerous and warped initiation process. Our communities get caught in the middle of these deadly attacks and fear the harm that could come from stray bullets intended for a rival gang,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Metro Safe Streets Task Force won't rest until we stop these criminal organizations from filling their ranks with members willing to kill for acceptance.”
“Gang violence will not be tolerated, and the message of this sentencing is clear – the NYPD and our law enforcement partners will hold responsible any violent gang members such as MS-13 for their criminal acts. I thank our colleagues at the Eastern District and the FBI for their unceasing professionalism and dedicated work in removing from our streets anyone who would commit crime and disorder,” stated NYPD Commissioner O’Neill.
In the early morning hours of October 23, 2016, Paniagua and his co-conspirators confronted the victim in Jamaica, Queens. There, they punched and kicked him, and Paniagua pulled out a handgun and shot the victim in the face. Paniagua then attempted to shoot the victim a second time as he lay on the sidewalk, but the gun jammed. The victim is a paraplegic as a result of the attack.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of MS-13, a violent international criminal organization. MS-13’s leadership is based in El Salvador and Honduras, and the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those gang members have been convicted of federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners, including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.
The government’s case is being handled by the Office’s Organized Crime & Gang Section. Assistant United States Attorney Nadia Moore is in charge of the prosecution.
The Defendant:
KEVIN PANIAGUA
Age: 20
Queens, New YorkE.D.N.Y. Docket No. 17-CR-307 (RRM)
Lynn Man Pleads Guilty to Bank Fraud and ID TheftRead the Press Release
BOSTON – A Lynn man pleaded guilty today in connection with a scheme to impersonate bank customers and fraudulently withdraw money from their bank accounts.
Antonio Niati, 28, pleaded guilty to one count of conspiracy to commit bank fraud, and one count of aiding and abetting aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 14, 2019. In September 2018, Niati was indicted and arrested.
In 2017, Niati recruited a bank teller working at a Santander Bank branch in Dorchester to assist in conducting fraudulent transactions in victim bank accounts. On three occasions in April 2017, another co-conspirator conducted transactions in two Santander Bank customers’ accounts using fraudulent driver’s licenses, all with the assistance of Niati and the recruited teller. Niati and his co-conspirators fraudulently withdrew over $640,000 from the customers’ accounts.
The charge of conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of up to $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years, to be served consecutively to any other imposed sentence, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mark Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.
Lewis County Magistrate and Gilmer County Magistrate indicted on wire fraud, mail fraud, and obstruction chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lewis County Magistrate Roger D. Clem, Jr. and Gilmer County Magistrate Alton L. Skinner, II were indicted today by a federal grand jury on charges involving wire fraud, mail fraud, and obstruction charges, United States Attorney Bill Powell announced.
Clem, age 47, of Weston, West Virginia, and Skinner, age 57, of Sand Fork, West Virginia, were each indicted on one count of “Conspiracy to Commit Mail Fraud and Wire Fraud,” two counts of “Wire Fraud,” two counts of “Mail Fraud,” and one count of “Obstruction of Justice.” Skinner was also charged with one count of “False Statement to a Federal Agent.”
E-Z Out, LLC, based in Sand Fork, West Virginia, is an authorized bonding company in Lewis County. According to company records, E-Z Out is operated solely by Alton Skinner’s spouse, and employs Skinner’s son as an authorized bonding agent. Clem is accused of taking favorable actions in the courtroom for E-Z Out, including setting unnecessary surety bonds. Clem is accused of calling Skinner to arrange the bond of a detainee without presenting a list of authorized bonding companies to the detainee. Skinner would allegedly arrange for his spouse or son, as agents of E-Z Out, to be present at the arraignment of the detainee without the detainee’s informed choice of E-Z Out amongst other authorized bonding companies.
Clem and Skinner are accused of causing payments via electronic transmission which traveled outside of West Virginia. The two are also accused of mailing a contract and checks between Skinner’s spouse and Dave Bourne Bail Bonds, Inc. in Virginia, the general agent of the underwriter for E-Z Out.
Both men allegedly attempted to obstruct or impede the grand jury investigation. Skinner also allegedly made false statements to a special agent from the Internal Revenue Service Special Investigation Unit.
The United States is also seeking a money judgment in the amount of $18,900.
Clem and Skinner each face up to 20 years incarceration and a fine of up to $250,000 for each of the conspiracy, wire fraud and mail fraud, and obstruction counts. Skinner also faces up to five years incarceration and a fine of up to $250,000 for the false statement count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the cases on behalf of the government. The Internal Revenue Service-Criminal Investigation and the West Virginia Commission on Special Investigations investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Leader of Sex Trafficking Ring Pleads Guilty to Multiple Felony ChargesRead the Press Release
SAN JOSE – Ariel Guizar-Cuellar pleaded guilty in federal court in San Jose today to sex trafficking of children and sexual exploitation of children, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Beth Labson Freeman, U.S. District Judge, accepted the plea.
In pleading guilty, Guizar-Cuellar, 38, of San Jose, admitted that from approximately September of 2014 until approximately January of 2016, he and various co-conspirators operated an unlawful commercial sex venture in San Jose and Santa Clara that sold the sexual services of adult women and at least three minor girls.
Guizar-Cuellar was the leader, primary facilitator, enforcer, and main financial beneficiary of the unlawful commercial sex venture. He recruited the minors through social media networks. He took pictures of the minors and caused those pictures to be posted in online advertisements for their sexual services on “backpage.com.” He transported the minors to various hotels and motels in the Bay Area to facilitate their prostitution dates with adult customers. He provided condoms for the minors to use during their prostitution dates and collected money from the minors after their dates. He also admitted that he made a recording of one of the minors engaging in sexual activity during a prostitution date in Sunnyvale and gave methamphetamine to some of the minors to entice them to continue working for him. He specifically told the minors to conceal their true ages.
On April 7, 2016, a federal grand jury indicted Guizar-Cuellar charging him with one count of conspiracy to commit sex trafficking of children, in violation of 18 U.S.C. § 371; three counts of sex trafficking of children, in violation of 18 U.S.C. § 1591(a)(1) and (b) as to each minor victim; and one count of sexual exploitation of children, in violation of 18 U.S.C. § 2251(a) and (e). Guizar-Cuellar pleaded guilty to all counts charged in the indictment.
Guizar-Cuellar is currently in federal custody awaiting sentencing. Judge Freeman scheduled his sentencing hearing for October 22, 2019. The maximum statutory penalty for each violation of 18 U.S.C. § 1591 is life in prison with a mandatory minimum sentence of 10 years. The maximum statutory penalty for child exploitation is 30 years, with a mandatory minimum of 15 years in prison. The maximum prison term for the conspiracy charge is five years in prison. Restitution is mandatory to all victims of sex trafficking. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Marissa Harris is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the FBI, the San Jose Police Department, and the Santa Clara County District Attorney’s Office Bureau of Investigation, with assistance from the Santa Clara County Human Trafficking Task Force.
Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted by a federal trial jury today of illegally possessing a firearm.
Dionandre Ganter, 30, was found guilty of being a felon in possession of a firearm and of receiving a firearm while under indictment. Ganter has been detained in federal custody without bond since his arrest.
Evidence introduced during the trial indicated that Ganter was in possession of a loaded Smith and Wesson .40-caliber pistol on March 22, 2017. Ganter, a convicted felon, received that firearm while under indictment for tampering and resisting arrest in Jackson County, Mo.
At 2:55 a.m. on March 22, 2017, Kansas City, Mo., police officers responded to a reported shooting at the intersection of Van Brunt Boulevard and Anderson Avenue. An officer saw Ganter, who was not wearing a shirt and had his right wrist bandaged, leaving the area. The officer saw Ganter place a handgun in a flowerpot on the northwest corner of the intersection.
Ganter was detained for further investigation and the firearm was retrieved from the flowerpot.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ganter has two prior felony convictions for domestic battery and a prior felony conviction for obstruction of legal process.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately 30 minutes before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, May 6, 2019.
Under federal statutes, Ganter is subject to a sentence of up to 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Joplin Man Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was indicted by a federal grand jury today for producing child pornography.
William Lee Potts, 21, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint filed against Potts on May 3, 2019.
The federal indictment charges Potts with one count of using a minor to produce child pornography from April 26 to May 1, 2019.
According to an affidavit filed in support of the original criminal complaint, Potts was found in a Joplin motel room with the 16-year-old child victim on May 1, 2019. Investigators searched his cell phone and found sexually explicit images and a video of child pornography.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Joplin, Mo., Police Department, the Waynesville, Mo., Police Department, the FBI, and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jamestown Man Sentenced for Being A Felon in Possession of A GunRead 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 Douglas Wood, 39, of Jamestown, NY, who was convicted of being a felon in possession of a firearm, was sentenced to serve 63 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth Molisani, who handled the case, stated that on March 6, 2018, the Jamestown Police Department was actively engaged in a narcotics investigation operation. Investigators conducted physical and audio surveillance of the defendant and learned that Wood was in possession of a silver handgun. Investigators maintained surveillance on the defendant and alerted uniformed patrol officers who approached Wood and spoke with him briefly before he attempted to flee. Following a brief struggle, the defendant was restrained and officers recovered a loaded revolver and 14 additional rounds of ammunition.
Wood was previously convicted in 2000, in the Nottoway County Circuit Court, Nottoway, Virginia, of Grand Larceny, Unlawful Possession or Use of a Sawed-Off Shotgun, and Burglary; in 2001, in Chautauqua County Court, of Grand Larceny in the Fourth Degree; in 2004, in Chautauqua County Court, of Grand Larceny in the Fourth Degree; and in 2007, in Chautauqua County Court, of Robbery in the Third Degree. As a result, the defendant is legally prohibited from possessing a firearm.
Today’s sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
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Inmate at FCI-Loretto Indicted for Possession of ContrabandRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., has been indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named Bryan Wade Smith, 29.
According to the indictment presented to the court, on October 3, 2018, Smith possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Smith.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inland Empire Man Pleads Guilty to TARP Homeowner Relief FraudRead the Press Release
RIVERSIDE, California – A Corona man has become the first individual to plead guilty to federal charges for fraudulently obtaining tens of thousands of dollars in mortgage assistance benefits under the portion of the Troubled Asset Relief Program (TARP) intended for homeowners hardest hit by the 2007-09 economic downturn.
Eliseo Delgado Jr., 40, entered a guilty plea on Monday to one felony count of making a false or fraudulent claim against the United States. Delgado made the first known guilty plea by an individual to fraud charges regarding TARP’s mortgage assistance program. United States District Judge Jesus G. Bernal has scheduled an October 28 sentencing hearing, where Delgado faces a statutory maximum sentence of five years in federal prison.
According to court documents, in November 2014, Delgado knowingly submitted a false application for homeowner relief benefits under the Unemployment Mortgage Assistance Program (UMA). UMA was a federally funded program under TARP that was administered in California by the California Housing Finance Authority’s Mortgage Assistance Corporation under the name “Keep Your Home California.” The program was designed to help homeowners by providing temporary mortgage assistance to eligible low-to moderate-income homeowners who became unemployed. Congress passed TARP to stabilize the nation’s financial system during the financial crisis of 2008. In 2010, using TARP money, Congress established the Hardest Hit Fund (HHF), to provide targeted aid to families in states hit hard by the economic and housing market downturn.
Delgado’s November 2014 application for homeowner relief benefits fraudulently stated that Delgado’s income had been reduced because of unemployment. In a “hardship letter” in support of his application for UMA benefits, Delgado wrote, “I have lost my job…I fell behind on my mortgage payments in 01/01/2014, earlier this year due to lack of income.” In fact, from 2009 to 2016, Delgado was self-employed at various businesses he had founded, and at no point was he unemployed. In total, Delgado fraudulently received $52,373 in UMA benefits from January 2015 until June 2016 – 18 months, the maximum length of time permissible under the program, according to court documents.
This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program.
This matter is being prosecuted by Assistant United States Attorney Benjamin Weir of the Riverside Branch Office.
Illegal Alien from Mexico Pleads Guilty and is Sentenced for Identity TheftRead the Press Release
PITTSBURGH, PA – An illegal alien who had been residing in Frederick, MD, pleaded guilty yesterday to Identity Theft, and has been sentenced in federal court to time served, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Elfego Sanchez-Carranza, 23, of Mexico, who has been in federal custody since November 10, 2018. Following service of the sentence of imprisonment, Sanchez-Carranza was remanded to the custody of federal immigration authorities for commencement of deportation proceedings.
According to the information presented to the court, Elfego Sanchez-Carranza used the name and Social Security number of another person to obtain employment with tree-trimming company Pennline, which is headquartered in the Western District of Pennsylvania.
The court was further advised that the defendant was not in the United States legally during the time of his employment with Pennline, and would not have been eligible to obtain employment in his own name during that time period. Defendant worked at Pennline between January and November of 2018, and earned wages at Pennline under the identity of the United States citizen whose name and Social Security number he did not have the authority to use.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) and the Department of Labor, Office of the Inspector General for the investigation leading to the successful prosecution in this case.
Idaho Man Pleads Guilty to Conspiring to Obstruct Justice in IowaRead the Press Release
An Idaho man who conspired to obstruct justice pled guilty today in federal court in Cedar Rapids. David Emerson Smith, from Pocatello, Idaho, was convicted of one count of conspiracy to obstruct, influence, and impede an official proceeding.
At the plea hearing and in a plea agreement, David Smith admitted that, from June 2017 through 2018, he agreed with his brother, Darrell Smith, to obstruct, influence, and impede Darrell Smith’s federal sentencing hearing in late 2018. While awaiting his sentencing hearing at the Bremer County Jail in June 2017, Darrell Smith told David Smith in a recorded telephone call that one of the victims of his fraud scheme could “make it really hard” for Darrell Smith if she continued to “complain” to the government. Darrell Smith told David Smith it would be “two extra years” if the victim continued her complaint, but Darrell Smith could get the victim some stock shares within a year. At Darrell Smith’s request, David Smith agreed to contact the victim on the telephone and, in February 2018, David Smith sent a letter to the victim at Darrell Smith’s request. The letter indicated Darrell Smith had $40,000 for the victim, in her children’s names, in accounts at an investment company. The letter also reminded the victim she had “$350,000 in tax credits” and two million shares of an energy company available to her. In truth, the “tax credits” and shares lacked any basis in law or fact.
Law enforcement officers discovered the scheme to obstruct justice before Darrell Smith’s sentencing. In October 2018, the court found Darrell Smith stole $2.4 million from his investment clients, including $161,800 from the victim whom David Smith contacted at Darrell Smith’s request. The court also found Darrell Smith had obstructed justice and sentenced him to 175 months in federal prison.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. David Smith remains released on bond previously set pending sentencing. David Smith faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2071.
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Hoboken, New Jersey, Man Admits Promoting Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, man today admitted promoting a voter bribery scheme in two city elections, U.S. Attorney Craig Carpenito announced.
Matthew Calicchio, 28, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to an information charging him with using the mails to promote voter bribery from 2013 to 2015 in municipal elections in Hoboken.
According to documents filed in this case and statements made in court:
In November 2013, Calicchio, Lizaida Camis, Dio Braxton and others – at Frank Raia’s direction – participated in a scheme to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots for the November 2013 Hoboken municipal election. Under New Jersey law, registered voters are permitted to cast a ballot by mail. They must complete and submit to their county clerk’s office an Application for Vote by Mail Ballot (VBM Application). The clerk’s office processes the application and sends the applicant a mail-in ballot.
After the mail-in ballots were delivered to the Hoboken voters, Camis and others went to the voters’ residences and, in some cases, instructed the voters to vote for a rent control referendum that Raia supported. Camis and others promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken. Raia instructed Calicchio, Camis, and Braxton that if the ballots did not come back open, the voters would not get paid. Braxton, Camis and others then checked the ballots to ensure that the voters had voted for the correct slate of candidates, including for Raia, and that they had voted for the referendum that was favored by Raia. Calicchio and others mailed certain of the completed ballots to the Hudson County Clerk’s Office. After the election, the voters received $50 checks from an entity associated with Raia.
In November 2015, Calicchio and Willie Rojas agreed to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2015 Hoboken municipal election in favor of a certain candidate for City Council. The candidate told Calicchio that the candidate wanted to win at all costs, and the candidate further indicated that everyone who voted by mail would get paid. Willie Rojas provided voters with VBM Applications, told the voters that they would get paid $50 for casting mail-in ballots, and then delivered the completed VBM Applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, Rojas went to the voters’ residences to collect the mail-in ballots. Calicchio and Rojas then checked the ballots to ensure that they had been cast for their candidate, and Calicchio signed an affidavit for each ballot falsely stating that he had assisted the voters in completing their ballots. After the election, the candidate handed Calicchio an envelope with $50 checks, and Calicchio passed the envelope to Rojas, who gave the checks to the voters.
The count to which Calicchio pleaded guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 12, 2019.
Camis previously pleaded guilty to her role in the scheme and is awaiting sentencing. Braxton and Raia were previously indicted and Rojas was previously charged by complaint. The charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey
Harrison County man indicted on firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Timothy Allen Crowe, of Bridgeport, West Virginia, was indicted by a federal grand today on a firearms charge, United States Attorney Bill Powell announced.
Crowe, age 56, was indicted on one count of “False Statement in Connection with the Acquisition of a Firearm.” Crowe, having been previously convicted of domestic battery, is accused of lying about his previous charges when trying to purchase a 9mm pistol in April 2018 in Marion County.
Crowe faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guatemalan National Sentenced with Illegal Re-entryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JORGE AGUILAR-PEREZ, age 25, a citizen of Guatemala, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, JORGE AGUILAR-PEREZ was found in the United States on or about December 20, 2018, after having been previously removed therefrom on or about May 25, 2006.
JORGE AGUILAR-PEREZ was sentenced to be imprisoned for a total term of 6 months and a $100.00 special assessment.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Greg & Missey Smith Honored for Their Foundation's Crime Prevention, Safety Awareness EffortsRead the Press Release
U.S. Attorney Tim Garrison presents the annual Crystal Kipper & Ali Kemp Award to Missey and Greg SmithKANSAS CITY, Mo. – Tim Garrison, United States Attorney for the Western District of Missouri, presented the annual Crystal Kipper & Ali Kemp Memorial Award today to Greg and Missey Smith, founders of the Kelsey Smith Foundation.
“Kelsey Smith should have celebrated her 30th birthday last Friday,” said Garrison. “Tragically, she was abducted and murdered a few days after graduating from high school in 2007. Her parents, Greg and Missey, have honored her memory and inspired us all by promoting public policies that can save lives. They have devoted themselves to educating people across the country about crime prevention and safety awareness.”
Greg and Missey Smith started the foundation, also known as Kelsey’s Army, after Kelsey was abducted from a local department store on June 2, 2007. Surveillance video showed Kelsey leaving the store after making a purchase and being abducted when she walked to her car. The effort to find Kelsey grew so large the volunteers became known as “Kelsey’s Army.”
Four days after Kelsey’s abduction, Verizon Wireless agreed to hand over the approximate location of Kelsey’s cellphone. Her body was found less than an hour later in Grandview, Mo. Her killer pleaded guilty and was sentenced to life in prison without the possibility of parole.
As a result of that experience, Greg and Missey Smith began advocating to change the law to require phone companies to provide cellphone location data to law enforcement agencies in an emergency. First passed in Kansas in 2009 and later in Missouri, versions of the bill have now been signed into law in 24 states.
The Smiths also have lobbied for the Kelsey Smith Act, a proposed federal law that has been introduced in both the U.S. Senate and U.S. House of Representatives. The Kelsey Smith Act provides law enforcement with a way to quickly ascertain the location of a cell phone if a person is kidnapped or if a missing person is at risk of death or serious physical harm.
The Kelsey Smith Foundation also provides seminars on such topics as safety awareness, an overview for parents, and programs for the law enforcement community.
Missey Smith was one of 12 people and programs honored by the Department of Justice at the annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on April 12. She received the Ronald Reagan Public Policy Award, which honors those whose leadership, vision and innovation have led to significant changes in public policy and practice that benefit crime victims.
The Crystal Kipper & Ali Kemp Memorial Award
This is the 16th year for the award to be presented in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year to recognize the outstanding work of an individual or organization in recognition of a valued contribution to preventing and responding to the exploitation of children.
Georgia Investment Representative Pleads Guilty to Stealing over $1.4 Million from Elderly Brentwood WomanRead the Press Release
NASHVILLE, Tenn. - May 7, 2019 – Jay Costa Kelter, 49, of Alpharetta, Georgia pleaded guilty today in U.S. District Court, to wire fraud and securities fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According documents filed with the court, between March 2014 and August 2016, Kelter embezzled over $1.4 million from an elderly client who lives in Brentwood, Tennessee. As part of his scheme, Kelter convinced the victim to move her investments from a private investment company to a discount brokerage firm. Kelter used his access to the woman’s accounts to periodically sell securities held in those accounts to pay for transfers to his own pass-through company. On one occasion, Kelter impersonated the victim while confirming a trade in her accounts.
Kelter did not divulge ownership of the pass through company when confronted by the victim, but later admitted that he directed the withdrawals from the accounts to his company. Kelter used portions of the stolen funds to purchase luxury cars, custom jewelry, and vacations, and to repay losses owed to other investment clients.
Kelter faces a maximum sentence of 20 years in prison and a maximum fine of $5,000,000, when he is sentenced on August 28, 2019.
This case was investigated by the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission. Assistant U.S. Attorney Stephanie N. Toussaint and U.S. Department of Justice Trial Attorney Andrew R. Tyler are prosecuting the case.
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Former U.S. Fish and Wildlife Service employee admits to possessing child pornographyRead the Press Release
BILLINGS – Shawn Thomas Conrad, a former U.S. Fish and Wildlife Service employee, admitted during a hearing today to possessing child pornography last year, U.S. Attorney Kurt Alme said.
Conrad, 48, of Billings, pleaded guilty to one count of possession of child porn. Conrad faces a maximum 10 years in prison, a $250,000 fine and five years to life of supervised release.
U.S. District Judge Susan P. Watters presided at the hearing and continued Conrad’s release. Sentencing is set for Sept. 6.
In court documents filed in the case, an investigation of Conrad for a child pornography crime began in early August 2018 by the Billings Police Department, which is a member of the Montana Internet Crimes Against Children Task Force. Conrad was employed at the time by the USFWS. Based on the same underlying investigation, Conrad’s supervisor went to Conrad’s home on Aug. 4, 2018 and seized an agency vehicle. Conrad said his personal hard drive was in the vehicle and asked for the hard drive. The supervisor did not return it. Conrad asked his supervisor again that evening for his hard drive.
The USFWS obtained a search warrant for the hard drive, which was examined. The BPD also served a search warrant at Conrad’s residence and seized a laptop computer, which was examined. Both the hard drive and laptop contained child porn images of children engaged in sexually explicit conduct.
Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by the Montana Internet Crimes Against Children Task Force, FBI, BPD and USFWS.
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Former Penn National Horse Trainer Sentenced to 27 Months in Prison for Misbranding Prescription Drugs on Race DayRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that former Penn National horse trainer Murray Rojas, age 53, of Grantville, Pennsylvania, was sentenced on May 6, 2019, to 27 months’ imprisonment on each of her 14 felony convictions for misbranding prescription drugs on race day and conspiracy. The sentences were ordered to run concurrent to each other. Rojas was also sentenced to serve 2 years of supervised release and to pay a $5,000 fine.
According to United States Attorney David J. Freed, Rojas was convicted by a federal jury on June 30, 2017, of 14 felony counts of misbranding prescription drugs on race day and conspiracy. The crimes involved Rojas directing veterinarians to administer drugs to her horses on race day in violation of track rules and state law. The conspiracy took place between 2002 and 2014, and involved 58 races. Rojas conspired with three veterinarians to have the drugs dispensed and administered to horses on the day they were entered to race.
As part of the conspiracy the veterinarians attempted to conceal this conduct by backdating invoices for the sale and administration of drugs to the horses on race day, as well as the submission of fraudulent veterinarian treatment reports to the Pennsylvania Horse Racing Commission.
The United States Attorney’s Office prosecuted several other individuals as part of this investigation in federal and state court, including:
- Danny Robertson, the official clocker, charged with wire fraud, sentenced to one year probation and ordered to pay a $2,500 fine;
- Craig Lytel, a racing official, charged with wire fraud, sentenced to four months in prison and ordered to pay a $1,000 fine;
- David Wells, owner and trainer, charged with rigging a publicly exhibited contest, sentenced on February 23, 2015, to three months’ imprisonment;
- Patricia Rogers, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas;
- Samuel Webb, trainer, charged with rigging a publicly exhibited contest, received an ARD in Dauphin County Court of Common Pleas;
- Renée Nodine, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
- Kevin Brophy, veterinarian, charged with misbranding and conspiracy, awaiting sentencing;
- Fernando Motta, veterinarian, charged with misbranding and conspiracy, awaiting sentencing; and
- Christopher Korte, veterinarian charged with misbranding and conspiracy, awaiting sentencing.
Judge Rambo ordered Rojas to report to a federal prison to be designated by the Bureau of Prisons on June 3, 2019. A decision whether Rojas will be allowed to remain on bail pending an appeal is under advisement by the court.
The case was investigated by the by the Federal Bureau of Investigation, the Pennsylvania Department of Agriculture’s Horse Racing Commission and the Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney William A. Behe prosecuted the case.
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Former Ocean County Chiropractor Sentenced to Five Years in Prison for Income Tax Evasion and Failure to File Report of Russian Bank AccountRead the Press Release
TRENTON, N.J. – A former chiropractor with offices in Lakewood, New Jersey, was sentenced today to 60 months in prison for evading income taxes totaling more than half a million dollars from 2012 through 2015 and failing to report a Russian bank account, to which he wired more than $1.5 million, U.S. Attorney Craig Carpenito announced.
Carlo Amato, 57, of Beachwood, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to one count of tax evasion and one count of failure to file a report of foreign financial account (FBAR) while violating another law of the United States and as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2012 through 2015, Amato operated a chiropractic office in Lakewood through two entities: Chiropractic Care Consultants Inc. and Accident Recovery Physical Therapy. He deposited, or caused to be deposited, checks for chiropractic services into accounts held in the names of his minor children. Amato knew that these checks were taxable as income, but he did not disclose the payments to his accountant, nor did he report them on his tax returns. Amato also failed to report as taxable income certain additional funds that were deposited into Chiropractic Care’s and Accident Recovery’s business bank accounts. For example, Amato reported $0 in taxable income and $0 in tax due on his 2014 income tax return. His taxable income for 2014 was, in fact, $561,258, and Amato admitted that the tax due and owing to the IRS for 2014 was $197,036. Amato admitted that he also evaded more than $300,000 in taxes for the tax years 2012, 2013, and 2015.
Amato, a U.S. citizen, admitted that in 2014, he had an account at UniCredit Bank in Russia. He admitted that he wired more than $1.5 million to Russian bank accounts, including the UniCredit Bank account, and that he knew that he was obligated to report any foreign bank account with an aggregate value of more than $10,000. Amato admitted that he nonetheless failed to file a report of foreign account, commonly known as an FBAR, for the year 2014. Amato also admitted that the funds he failed to report were the product of a fraudulent scheme in which Amato overbilled at least six insurance companies by more than $1 million by billing for services that were never rendered. Amato previously pleaded guilty in Ocean County Superior Court to first degree financial facilitation of criminal activity for money laundering of funds from the overbilling scheme.
In addition to the prison term, Judge Shipp sentenced Amato to three years of supervised release.
Under the terms of his plea agreement, Amato will file amended tax returns and make full restitution for the years 2012 through 2015 and file accurate FBARs for the years 2012 through 2017.
U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencing. U.S. Attorney Carpenito thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Trenton.
Defense counsel: Thomas R. Ashley Esq., Newark
Former Dracut Nurse Pleads Guilty to Tampering with Liquid MorphineRead the Press Release
BOSTON – A former nurse pleaded guilty in federal court in Boston today to diverting liquid morphine intended for hospice patients at a Lowell nursing home.
Michael Langlois, 49, of Dracut, pleaded guilty to one count of tampering with a consumer product and one count of acquiring a controlled substance by deception and subterfuge. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 6, 2019.
On Nov. 16, 2016, Langlois, then a registered nurse, tampered with bottles of liquid morphine that doctors had prescribed for two elderly hospice patients under his care at a Lowell nursing home. In each instance, Langlois took the liquid morphine, a schedule II narcotic used to treat pain, for his own use and then replaced it with saline or Benadryl in an attempt to cover up his crime. As a result his conduct, the patients in Langlois’s care received a less potent dose of the painkiller than they had been prescribed.
On or about April 3, 2017, Mr. Langlois diverted for his own use liquid morphine from a bottle prescribed to an elderly hospice patient under his care at a Melrose nursing home. To conceal his wrongful conduct, Mr. Langlois falsely represented in the medical file of one of his patients, and in the nursing home’s Medication Administration Record, that the liquid morphine for that patient was pure, when that was not in fact the case.
The charge of tampering with a consumer product provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of acquiring a controlled substance provides for sentence no greater than four years in prison, one year of supervised release, and a fine of $250,000. 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; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Commissioner Monica Bharel, M.D., M.P.H., of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Patrick Callahan of Lelling’s Healthcare Fraud Unit is prosecuting the case.
Federal Prosecutor Recognized with the Outstanding Safety and Security AwardRead the Press Release
United States Attorney Trent Shores announced today that Assistant U.S. Attorney Ryan Roberts was awarded the Outstanding Safety and Security Award for his dedication to prosecuting violent crime in Oklahoma.
The award was part of the Public Service Recognition Awards for 2019, hosted by the Oklahoma Federal Executive Board. Roberts was one of six final nominees for the award from across the State of Oklahoma.
“Assistant U.S. Attorney Ryan Roberts is a talented and dedicated federal prosecutor,' said U.S. Attorney Shores. "He approaches his job as a public servant with great humility and selflessness. This recognition was well-deserved and hard-earned. The U.S. Attorney’s Office is lucky to have him on our team.”
In 2018, Roberts charged 77 federal criminal defendants with crimes involving guns and violence. His tenacity and leadership in the courtroom led to 39 guilty pleas and multiple convictions during two contested jury trials in 2018. The remainder of defendants have pleaded guilty in 2019 or their cases are continuing in federal court.
“This award reflects the commitment of an entire team of professionals,” said Assistant U.S. Attorney Ryan Roberts. “I was honored today to represent the hard work from police officers, agents, and the staff here at the U.S. Attorney’s Office. It is truly a team effort that led to these convictions.”
Roberts’ numerous prosecutions directly contributed the Justice Department’s violent crime reduction initiative, Project Safe Neighborhoods, which was reinvigorated in October 2017. The initiative focuses on reducing gun crime and prosecuting violent offenders, often with multiple felony convictions. To support the initiative, the United States Attorney’s Office for the Northern District of Oklahoma increased its prosecutions by more than 200 per cent, when compared to 2017, and focused on strengthening partnerships with local, state, tribal and federal law enforcement partners. This corresponded with a drop in murder and other violent crime in Tulsa. Violent crime in east Tulsa decreased significantly. Aggravated assaults decreased by 25 per cent, robberies by 12 per cent, and rapes by 30 per cent. Moreover, Tulsa’s violent crime statistics in 2018 reflected four-year lows throughout Tulsa in homicides, aggravated assaults, robberies, commercial and residential burglaries, and larcenies.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.
Federal Judge Convicts Mason County Man of Carjacking and Firearms OffenseRead the Press Release
HUNTINGTON, W.Va. – A Mason County man who threatened two employees of the Putnam Public Service District with a machinegun and stole their company truck last year in Teays Valley was convicted today after a one-day bench trial of multiple federal offenses. Justin Michael Wilson, 20, was convicted of carjacking and using, carrying, and brandishing a machinegun during and in relation to a crime of violence. Wilson also previously pled guilty prior to trial to unlawful possession of a machinegun and possession of an unregistered machinegun. Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and multiple agencies who responded to the crimes including the Mason County Sheriff’s Department, the Jackson County Sheriff’s Department, the Kanawha County Sheriff’s Department, the Putnam County Sheriff’s Department, the Hurricane Police Department, and the West Virginia State Police.
“There’s no place for carjackers in West Virginia. That’s why Wilson is facing a mandatory 30 years in prison with no parole in the federal system,” said United States Attorney Mike Stuart. “Wilson’s violent, criminal acts put many lives in danger. I want to thank the law enforcement officers who acted heroically to bring Wilson into custody and Assistant United States Attorneys Joe Adams and Stephanie Taylor for their excellent work in this case.”
On January 11, 2018, Wilson drove a vehicle he had stolen earlier in the day in Jackson County to the Liberty Square Shopping Plaza in Teays Valley. While in route to the shopping plaza, Wilson acquired a machinegun and engaged deputies in Kanawha County in a chase, eventually driving off-road and jumping his vehicle over railroad tracks to get away. When he arrived at the shopping plaza, Wilson approached two employees of the Putnam Public Service District eating lunch in their company truck. Wilson brandished the machinegun, demanded the men transfer items from the stolen vehicle to the PSD truck, and stole the truck.
A West Virginia State Police Trooper and Deputies with the Putnam County Sheriff’s Department responding to calls at the shopping plaza for assistance immediately saw Wilson fleeing in the truck. Wilson then entered Interstate 64 headed westbound and led the responding units on another high speed chase. During the pursuit, Wilson pointed the machinegun out of the truck at the Trooper, ran vehicles off the road, crossed the median at a designated emergency vehicle crossing, traveled westbound in the eastbound lanes, exited the interstate by traveling the wrong way up the entrance ramp at Hurricane, and eventually crashed the truck which was destroyed by fire. Wilson was pulled from the burning truck by the Trooper and placed under arrest.
Wilson will be sentenced on August 12, 2019, and faces sentences of up to 15 years in federal prison for the carjacking conviction and up to 10 years in federal prison each for illegally possessing a machinegun and possessing an unregistered machinegun. Wilson also faces a mandatory 30 year sentence for using, carrying, and brandishing a machinegun during and in relation to the carjacking.
Assistant United States Attorneys Joseph F. Adams and Stephanie S. Taylor handled the prosecution. United States District Judge Robert C. Chambers presided over the trial.
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FBI Wanted Fugitive Apprehended in TulsaRead the Press Release
United States Attorney Trent Shores today announced the apprehension of a fugitive on the FBI’s Wanted List who was charged in a 2014 federal indictment for alleged drug and gang conspiracy.
The Tulsa Police Department’s Special Investigations Division arrested Rodney Roy Parker, 47, on Monday in Tulsa. Parker was a fugitive for nearly five years.
Law enforcement originally issued an arrest warrant for Parker on Aug. 13, 2014. He was wanted on federal charges related to the FBI and Tulsa Police Department’s drug investigations titled “Operation Battlefield” and “Battlefield Aftermath”. The resulting indictment alleged that the Hoover Crips distributed $10 million worth of cocaine from Mexican cartels, murdered at least one witness, and had a vast network of co-conspirators.
“Justice never sleeps. Neither does the Tulsa Police Department nor the FBI. Rodney Parker learned that firsthand. You can try to run, but we will find you,” said U.S. Attorney Shores. “The tenacity of Detective Jesse McNeal, the Tulsa Police Department’s Special Investigation Division, and the FBI’s Tulsa Resident Office are to be commended. Thanks to their diligence, Parker will now answer for his alleged crimes in a court of law.”
“We could not be more proud of Detective McNeal,” said Tulsa Police Chief Chuck Jordan. “We are glad that this final arrest will bring Battlefield to its conclusion. We appreciate the collaboration with our federal partners that resulted in over 50 arrests in this significant drug case.”
Acting Special Agent in Charge, Melissa Godbold, FBI Oklahoma City Division stated, "The arrest of Rodney Parker is a testament to our law enforcement partnerships and the countless hours dedicated to bringing Mr. Parker to justice. The FBI is extremely proud to be a part of the investigative work that resulted in removing another dangerous criminal from the streets of Tulsa."
Parker is charged in the indictment with conspiracy to possess with intent to distribute, distribution and to manufacture 280 grams of “crack” cocaine, intent to distribute 5 kilograms or more of cocaine, and intent to distribute 100 kilograms or more of marijuana. Parker is also charged with multiple counts of using a communication facility in the commission of a drug trafficking felony.
Parker is currently in the custody of the U.S. Marshals Service. He faces a potential maximum sentence of life imprisonment. He is scheduled to be arraigned in federal court Tuesday at 2 pm.
“Operation Battlefield” and “Battlefield Aftermath” were large-scale law enforcement operations that started in 2011 targeting “crack” cocaine distribution locations in Tulsa. The FBI, Tulsa Police Department, Broken Arrow Police Department, Drug Enforcement Administration, and Bureau of Alcohol Tobacco, Firearms and Explosives conducted the investigations, which spanned four states and culminated in 2014 with 51 individuals indicted for drug conspiracy. Assistant U.S. Attorney Robert T. Raley is prosecuting the case.
El Dorado Springs Woman, New Jersey Man Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An El Dorado Springs, Mo., woman and a North Plainfield, New Jersey, man were indicted by a federal grand jury today for producing child pornography.
Amanda Errin Hunt, 39, and Daniel Thomas Baggott, 36, were charged in a four-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed on April 11, 2019. Hunt and Baggott remain in federal custody.
The federal indictment charges Hunt and Baggott with one count each of using a child victim to produce child pornography from Aug. 5, 2017, to April 9, 2019. The indictment also charges each of the defendants with one count of using a cell phone to induce the child victim to engage in illegal sexual activity.
According to an affidavit filed in support of the original criminal complaint, the investigation began when Facebook initiated a CyberTip with the National Center for Missing and Exploited Children on April 7, 2019. Facebook reported that Hunt and Baggott exchanged images of child pornography through Facebook Messenger. Investigators also discovered sexually explicit messages, along with shared images of child pornography, between Hunt, Baggott, and the 15-year-old victim. Hunt told investigators that Baggott was her boyfriend.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cybercrime Task Force, and the New Jersey Internet Crimes Against Children Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Department of Justice Issues Guidance on False Claims Act Matters and Updates Justice ManualRead the Press Release
The Civil Division today announced the release of formal guidance to the Department of Justice’s False Claims Act litigators. The False Claims Act provides important remedies for fraud committed against the United States. The guidance announced today explains the manner in which the Department of Justice awards credit to defendants who cooperate with the Department during a False Claims Act investigation. The formal policy, included as of today in the Justice Manual Section 4-4.112, identifies the type of cooperation eligible for credit.
“The Department of Justice has taken important steps to incentivize companies to voluntarily disclose misconduct and cooperate with our investigations; enforcement of the False Claims Act is no exception,” Assistant Attorney General Jody Hunt said. “False Claims Act defendants may merit a more favorable resolution by providing meaningful assistance to the Department of Justice – from voluntary disclosure, which is the most valuable form of cooperation, to various other efforts, including the sharing of information gleaned from an internal investigation and taking remedial steps through new or improved compliance programs.”
Under the policy, cooperation credit in False Claims Act cases may be earned by voluntarily disclosing misconduct unknown to the government, cooperating in an ongoing investigation, or undertaking remedial measures in response to a violation. Even if the government already has initiated an investigation, for example, a company may receive credit for making a voluntary self-disclosure of other misconduct outside the scope of the government’s existing investigation that is unknown to the government. Similarly, a company may earn credit by preserving relevant documents and information beyond existing business practices or legal requirements, identifying individuals who are aware of relevant information or conduct, and facilitating review and evaluation of data or information that requires access to special or proprietary technologies.
Under the policy, the Department of Justice will take into account corrective action that a company has taken in response to a False Claims Act violation. Such remedial measures may include undertaking a thorough analysis of the root cause of the misconduct, appropriately disciplining or replacing those responsible for the misconduct, accepting responsibility for the violation and implementing or improving compliance programs to prevent a recurrence.
Most frequently, cooperation credit will take the form of a reduction in the damages multiplier and civil penalties. If appropriate, the Department may also notify a relevant agency about the company’s voluntary disclosure, cooperation, or remediation so that the agency can take those actions into account in deciding how to apply administrative remedies. And the Department may publicly acknowledge the company’s cooperation.
For the full policy, click here.
Defendant Pleads Guilty in New Case Associated with Online Romance Money Laundering ScamRead the Press Release
COLUMBUS, Ohio – A second case has been charged in the Southern District of Ohio related to an online romance money laundering scam.
Eric Y. Banahene, 36, of Columbus, Ohio, offered a guilty plea in U.S. District Court today for conspiring to commit money laundering and concealment money laundering (each punishable by up to 20 years in prison), as well as transactional money laundering (punishable by up to 10 years in prison).
Banahene admitted that he conspired with others to launder the proceeds of online romance scams and agreed to pay approximately $629,000 in restitution.
Six of eight Central Ohio defendants originally charged on Valentine’s Day last year have also offered guilty pleas in U.S. District Court. Two of the defendants remain fugitives.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division, and Angie Salazar, Acting Special Agent in Charge, Homeland Security Investigations (HSI) announced the pleas offered today before Magistrate Judge Norah McCann King.
Those originally charged in the conspiracy include: Kwabena M. Bonsu, Kwasi A. Oppong, Kwame Ansah, John Y. Amoah, Samuel Antwi, King Faisal Hamidu, Nkosiyoxoxo Msuthu and Cynthia Appiagyei.
Ansah and Antwi are at-large.
According to court documents, individuals committing fraud created several profiles on online dating sites. They then contacted men and women throughout the United States, Canada, and other countries with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons and provided account information and directions for where money should be sent. In part, these accounts were controlled by the defendants. The funds were not used for the investment or need-based reasons provided.
Defendants laundered the funds from the scheme, using companies and bank accounts in their control. In furtherance of the scheme, the co-conspirators created several companies, some of which were shell companies, to help attempt to hide the true nature of their proceeds. They withdrew the proceeds in cash, wired funds to their coconspirators and to other accounts, and used the fraud proceeds to purchase salvaged vehicles sold online. The cars were commonly exported to Ghana.
The purchase and shipment of vehicles helped conceal the fact that members of the conspiracy were sending proceeds of romance fraud overseas. Some members of the conspiracy found people in Ghana who wanted to purchase vehicles. The people in Ghana who wanted the cars would pay the perpetrators of the romance fraud scheme in Ghana. Under this method, money did not have to be wired overseas, which would have risked attracting the scrutiny of financial institutions.
Banahene admitted to conspiring with Bonsu and others to launder more than $629,031.
Defendants originally charged in the conspiracy admitted that they collectively laundered more than $3.3 million in proceeds from romance scams.
“These defendants helped conceal the wrongdoing of those who preyed on men and women from throughout the U.S., Canada, and abroad through the ploy of intimacy when the bottom line is all they really wanted was their money,” stated William Cheung, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This case demonstrates how the U.S. Attorney’s Office and federal law enforcement will band together to help put an end to criminal behavior of those who prey on individuals for their personal financial gain. IRS criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of fraud schemes.”
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, U.S. Postal Inspection Service and HSI, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
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Coral Springs Man Sentenced to More Than Four Years in Federal Prison for Check Counterfeiting SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Allen Griffin (23, Coral Springs) to four years and nine months in federal prison for his role in a check counterfeiting scheme. The court also ordered Griffin to pay nearly $80,000 in restitution to financial institutions. Griffin had pleaded guilty on February 21, 2019, to seven counts of bank fraud and one count of conspiracy to commit bank fraud.
According to court documents, during the summer of 2018, Griffin and his co-conspirators created counterfeit checks and obtained access to individual bank accounts into which they deposited the counterfeit checks. Griffin and his co-conspirators then withdrew the funds from those accounts before the fraud was detected. Griffin and his co-conspirators deposited counterfeit checks totaling more than $370,000 into Orlando-area banks.
On August 3, 2018, Griffin was arrested at a hotel in Orlando. He had blank check stock paper in his car and hotel room, a printer and laptop that he had used to create counterfeit checks, computerized images of signatures used on the counterfeit checks, ATM cards that had been used in the check fraud scheme, and an ATM receipt from one of the fraudulent transactions. Griffin was also captured on bank surveillance video depositing counterfeit checks and making withdrawals from accounts where the counterfeit checks had recently been deposited.
Griffin’s co-defendants, Wesley Anderson and Christopher Stewart, have both pleaded guilty and are scheduled to be sentenced in July 2019.
This case was investigated by the United States Secret Service, with assistance from the Orange County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Convicted Felon Sentenced for Shooting at Federal AgentsRead the Press Release
VICTORIA, Texas – A 30-year-old Cuero resident has been ordered to federal prison following his conviction of assault on a federal agent and related firearms charges, announced U.S. Attorney Ryan K. Patrick. Joseph Brent Benoit pleaded guilty Jan. 7, 2019.
Today, Senior U.S. District Judge John D. Rainey sentenced Benoit to 60 months for the assault on a federal agent and being a felon in possession of a firearm. He was also ordered to serve a 120-month term of imprisonment for discharging a firearm in relation to a crime of violence which must be served consecutively to the other sentence imposed.
On supervised release when he committed this offense, Judge Rainey further ordered Benoit also to serve 30 months on the revocation on that term, 10 of which was to be served consecutively to the new sentence.
The total 190-month prison term will be immediately followed by three years of supervised release.
On Aug. 8, 2017, deputies with the U.S. Marshals Service (USMS) were attempting to execute a felony arrest warrant for Benoit. When officers observed Benoit driving a black Chevrolet truck in Dewitt County, they requested the assistance of local law enforcement in stopping the vehicle. At that time, Benoit briefly stopped but then fled in the vehicle. Authorities pursued him until coming to a stop at his residence.
Benoit exited the truck and ran to the residence while carrying an assault rifle. Shortly thereafter, agents heard a single gunshot and immediately retreated to a position of safety and cover outside the residence. Law enforcement verbally attempted to get Benoit to exit the location, but were unsuccessful.
After a multi-hour stand-off, law enforcement officers were able to gain entry into the residence and located Benoit hiding in a crawl space under the floor that was accessed by a hidden door in the floor of the residence. At the time Benoit was arrested and taken into custody, USMS deputies observed the assault rifle laying on the ground next to him - an AR-15 style, .223 caliber semi-automatic rifle. During a search of Benoit, officers discovered 37 rounds of .223 caliber ammunition in his pants pockets. Benoit had previously been convicted of a felony and is prohibited by federal law from possessing firearms and ammunition.
After authorities secured the scene, they discovered a round hole in the glass on the front door that was consistent in size with a .223 caliber bullet. Based on the damage surrounding the hole, it appeared the bullet was fired from inside the residence. Federal agents were able to locate a fired .223 caliber casing inside the residence and the fired .223 caliber bullet outside in a wooden railing along the approach to the front door.
Benoit has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility.
USMS, the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Cuero Police Department and Texas Rangers conducted the investigation with the assistance of the Corpus Christi Police Department Bomb Squad, Dewitt County Sheriff’s Office, Victoria Police Department, Texas Department of Public Safety, and the Victoria County Sheriff’s Office. Assistant U.S. Attorneys Patti Booth and Lance Watt are prosecuting the case.
Company Controller Pleads Guilty to Fraud Charges for Failing to Report $2.8 Million He Embezzled from EmployerRead the Press Release
LOS ANGELES – A controller for a commercial printing company has pleaded guilty to tax and mail fraud charges for embezzling $2.8 million from his employer and failing to report the stolen funds as income to the Internal Revenue Service.
Sean Edin Talaee, 62, of Glendale, pleaded guilty on Monday to one count of mail fraud and one count of subscribing to a false income tax return. United States District Judge Otis D. Wright II has scheduled an August 19 sentencing hearing, where Talaee will face a statutory maximum sentence of 23 years in federal prison.
According to his plea agreement, between October 2015 and June 2018, Talaee worked as the controller overseeing the accounting and tax payments of Printograph, Inc., a Burbank-based commercial printing company that does business as GotPrint.com. During this time period, Printograph made a series of periodic estimated tax payments, which were based on the company’s expected gross income, deductions, and credits for each year. To enable these estimated tax payments, Talaee brought company checks to Printograph’s president and sole owner – who had signing authority for the company’s bank account – for her signature prior to their submission to the IRS.
On at least eight separate occasions, Talaee obtained company checks from Printograph’s president but instead inserted his own taxpayer information when filling out the IRS voucher forms that accompanied the estimated tax payments. By using his own information – and not the company’s – Talaee was able to claim the estimated tax payments for himself and caused the IRS to credit the payments to his own personal account, thereby embezzling the funds from Printograph and effectively laundering the embezzled proceeds through the IRS.
During the course of the scheme, Talaee embezzled $2.8 million from his employer and falsely claimed estimated tax payments in that amount for the years 2015, 2016, and 2017, according to court documents. These estimated tax payments allowed Talaee to receive a total of $2,778,994 in fraudulent tax refunds for these years, court papers state. Talaee failed to report the embezzled money as income for these tax years, causing a total tax loss of $740,085.
This case was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation.
This matter is being prosecuted by Assistant United States Attorney Alexander Wyman of the Major Frauds Section.
Cobleskill Man Sentenced to 15 Years for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Jason M. VanBuren, age 44, of Cobleskill, New York, was sentenced today to serve 180 months in prison for receiving 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).
At sentencing, Senior United States District Judge Gary L. Sharpe concluded that VanBuren also engaged in a pattern of activity involving the sexual abuse of a female child between the ages of 12 and 15, which Judge Sharpe was permitted to take into account in sentencing the defendant.
Judge Sharpe also sentenced VanBuren to a life term of supervised release, to begin following his term of imprisonment. VanBuren will be required to register as a sex offender following his release from prison.
VanBuren pled guilty on January 2, 2019 to an indictment charging two counts of receiving child pornography.
As part of his plea, VanBuren admitted using two smartphones equipped with instant messaging and file-sharing applications to download child pornography via the Internet. Overall, VanBuren downloaded and retained over 1,000 images and videos depicting child pornography.
This case was investigated by the FBI, the Cobleskill Police Department, and the New York State Police Computer Crimes Unit, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.