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Wednesday 20 March 2019
Former West Virginia state trooper indicted for using excessive forceRead the Press Release
MARTINSBURG – A federal grand jury today indicted Michael Kennedy, a former West Virginia State Trooper, for using excessive force against an arrestee. Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division and U.S. Attorney Bill Powell made the announcement.
Kennedy, 29, of Morgantown, West Virginia, is charged with one count of “Deprivation of Rights under Color of Law.” According to the indictment, the defendant is accused of using excessive force resulting in bodily injury during an arrest on Nov. 19, 2018, in Berkeley County.Kennedy faces up to 10 years incarceration and a fine of up to $250,000. An indictment is merely an accusation. 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.
A defendant is presumed innocent unless and until proven guilty.Assistant U.S. Attorney Jarod J. Douglas and Department of Justice Civil Rights Trial Attorney Christine Siscaretti are prosecuting the case on behalf of the government. The FBI investigated.
Former West Virginia State Trooper Indicted for Using Excessive ForceRead the Press Release
A federal grand jury today indicted Michael Kennedy, a former West Virginia State Trooper, for using excessive force against an arrestee. Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division and U.S. Attorney Bill Powell made the announcement.
Kennedy, 29, of Morgantown, West Virginia, is charged with one count of deprivation of rights under color of law. According to the indictment, the defendant is accused of using excessive force resulting in bodily injury during an arrest on Nov. 19, 2018, in Berkeley County.
Kennedy faces up to 10 years incarceration and a fine of up to $250,000. An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilt
Assistant U.S. Attorney Jarod J. Douglas and Department of Justice Civil Rights Trial Attorney Christine Siscaretti are prosecuting the case on behalf of the government. The FBI investigated.
Former U.S. Marine Sentenced to 10 Years in Prison for Explosives, Firearms, and Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that RICHARD LAUGEL was sentenced to 121 months in prison for detonating a pipe bomb in the Bronx on March 2, 2016, along with firearms and narcotics offenses. LAUGEL pled guilty on November 8, 2018, before United States District Judge Paul A. Engelmayer, who also imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Richard Laugel’s dangerous attempt to harm his neighbor by detonating a car bomb was, thankfully, unsuccessful. His cache of weapons was also seized, and his narcotics businesses ended thanks to the extraordinary work of our law enforcement partners, making New York City streets safer. Now Laugel will serve a lengthy prison sentence for his crimes.”
According to the Information, other filings in Manhattan federal court, and evidence presented in court at sentencing:
On March 2, 2016, LAUGEL placed an improvised explosive device (“IED”) under the rear tire well of his neighbor’s car, which was parked near their apartment building in the Bronx, New York. LAUGEL, a former United States Marine, had constructed the IED using a metal pipe bomb, which he packed with nails and explosives and attached to a butane canister to increase the potential lethality of the device. LAUGEL used a remote-detonation device to activate the bomb after his neighbor entered the car and drove several blocks away. The force of the explosion blew out the airbags in the car and buckled the car doors. The neighbor was not injured by the explosion.
On May 22, 2018, agents with the Department of Homeland Security, Homeland Security Investigations (“HSI”), officers with the New York City Police Department (“NYPD”), and agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) executed a search warrant at LAUGEL’s home in the Bronx. Law enforcement recovered from LAUGEL’s home and garage, among other items:
- 575 rounds of assorted ammunition
- 8 silencers and 32 silencer parts
- 5 home-made pistols
- 2 commercially manufactured pistols, one of which had an obliterated serial number
- 2 “switches” to convert pistols into fully automatic weapons
- 1 bump stock
During a subsequent search of LAUGEL’s apartment located near his home, law enforcement recovered evidence consistent with the manufacturing of alprazolam for distribution to customers online, including a powder mixing machine, pill press dies to stamp pills, and boxes of alprazolam packaged for shipment to customers.
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In addition to the prison term, LAUGEL, 39, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Berman praised the outstanding investigative work of ATF, the NYPD, and HSI.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Alison Moe and Jacob Warren are in charge of the prosecution.
Former Emergency Medical Technician Pleads Guilty to Possession of Child PornographyRead the Press Release
Orlando, Florida – Bryan Matthew Cooney (30, Casselberry) has pleaded guilty to possession of child pornography. Cooney faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.
According to court records, from September 19, 2018 through September 27, 2018, Cooney chatted with an FBI undercover agent (UC) via a social media application known as “KIK” about sexually exploiting a 12-year-old female child, which Cooney said was his daughter. During the chats, Cooney shared clothed images of the minor with the UC and said he had sexually abused and produced images of the minor engaged in sexually explicit conduct.
During the investigation, FBI agents identified Cooney’s residence and obtained a warrant to search for evidence related to the allegations. On October 30, 2018, FBI agents executed the search warrant and interviewed Cooney, and Cooney admitted that he was the person chatting with the UC about sexually exploiting a 12-year-old child. Cooney also said that he had actually obtained images of the minor from his friend’s Facebook page and had shared those pictures with the UC during chats. Cooney also said that he had been viewing child pornography for the past four of five years, which he downloaded to his iPhone through KIK, and then uploaded to a Dropbox account.
Upon viewing the Dropbox account, agents found hundreds of videos and numerous images of child pornography depicting bestiality and other acts of sadistic conduct against prepubescent children between the ages of 4 and 10. Cooney had posted images of his friend’s daughter on KIK, and attempted to obtain images of child pornography from other KIK users, by trading clothed images of his friends’ daughter.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Flooring Company Settles Allegations it Paid Bribe for Government WorkRead the Press Release
The nationwide flooring company Spectra Contract Flooring with an office in Tukwila, Washington, has agreed to pay $133,718 to settle allegations it improperly provided kickbacks to a defense contractor, announced U.S. Attorney Brian T. Moran. The civil settlement comes after a criminal investigation, and false tax return conviction, of an employee of a government defense contractor who accepted benefits from Spectra. Spectra is a wholly owned subsidiary of Shaw Industries Group Inc. The criminal case, U.S. v Meisner, was resolved in May 2017. In the settlement announced today, Spectra does not admit any wrongdoing but chooses to resolve the claims.
According to records filed in the criminal case and the settlement agreement, in 2009, Spectra was one of the subcontractors working on a seismic upgrade at the Delta Pier Support Facility at the Bangor Submarine Base near Silverdale. The contractor leading the Bangor job was Cherokee General Corporation, a subsidiary of Doyon Government Group, headed by Brent S. Meisner. Meisner was in the midst of a remodel of his Gig Harbor, Washington, residence. Invoices submitted by Spectra reveal that the company billed the Navy for the work at Meisner’s residence under the seismic upgrade contract. Meisner paid nothing for the flooring services provided at his home. As is allowed by law in False Claims cases, Spectra is settling the matter for three times the cost of the false billing: $133,718.
In May 2017, Meisner was sentenced to 18 months in prison.
"The announced settlement is representative of the law enforcement community's dogged efforts to hold accountable those who engage in unethical business practices that stifle fair competition and ultimately result in a loss to the American taxpayer," said Bryan Denny, Special Agent in Charge, Western Field Office, Defense Criminal Investigative Service (DCIS). "As in this case, any unscrupulous actions by government contractors and subcontractors that tarnish and corrupt the integrity of the defense procurement process will be reviewed and vigorously investigated by DCIS and its law enforcement partners."
The False Claims Act allegations were investigated by the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), Army CID Major Procurement Fraud Unit and the Internal Revenue Service Criminal Investigation (IRS-CI).
The civil settlement was negotiated for the government by Assistant United States Attorney Kayla C. Stahman.
Federal Inmate Sentenced to 30 Months’ Imprisonment for Assault Resulting in Serious Bodily InjuryRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Robert D. Mariani sentenced Clayton Shinn, age 28, an inmate at United States Penitentiary, Canaan, in Waymart, Pennsylvania, to 30 months’ imprisonment on March 14, 2019, for assaulting another inmate resulting in serious bodily injury.
According to United States Attorney David J. Freed, Shinn and co-defendant, Jeffrey Mattox, assaulted another inmate on October 4, 2016, by repeatedly striking, punching and kicking the inmate, resulting in serious bodily injury.
Jeffrey Mattox pleaded guilty and is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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Federal Inmate Charged with Possession of A WeaponRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Niegel Broadus, age 23, an inmate at the United States Penitentiary, Allenwood, was indicted on March 14, 2019, by a federal grand jury for possession of a weapon.
According to United States Attorney David J. Freed, the indictment alleges that on October 8, 2018, Broadus was found in possession of a homemade sharpened piece of plastic, commonly referred to as a “shank,” that was designed to be used as a weapon.
The charges stem from an investigation by officers at USP Allenwood and agents of the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The defendant is facing a maximum of five years of incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Federal Inmate Charged with Assault on Correctional OfficerRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Duncan, age 54, a prisoner at the Federal Correctional Institution, Allenwood, was indicted on March 14, 2019, by a federal grand jury for assaulting a federal correctional officer.
According to United States Attorney David J. Freed, the indictment alleges that on November 26, 2018, Duncan struck and caused physical contact with a correctional officer resulting in bodily injury.
The charges stem from an investigation by FCI Allenwood and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The defendant is facing a maximum of twenty years of incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Estonian National Extradited from Estonia to Face Charges of Illegal Procurement of U.S. ElectronicsRead the Press Release
UPDATE
The original version of this press release identified Valery Kosmachov as a Russian national. Based upon new information, he is now being identified as an Estonain national.
SAN FRANCISCO— A federal grand jury handed down a 52-count indictment charging Valery Kosmachov with engineering a scheme to illegally procure sophisticated electronic components from the United States and to smuggle them into the Russian Federation, announced United States Attorney David L. Anderson; Department of Homeland Security, Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin; Department of Commerce, Bureau of Industry and Security Acting Special Agent in Charge Todd Harris; U.S. Customs and Border Protection Director of Field Operations Brian Humphrey; and U.S. Marshals Service Marshal Donald M. O’Keefe. Kosmachov was extradited to the United States from Estonia to face the charges.
According to the indictment filed September 21, 2017, and unsealed this morning, Kosmachov, 66, is an Estonian national and resident of Tallinn, Estonia. He served as owner of Adimir OU and co-owner of Eastline Technology OU, along with co-defendant and Russian national Sergey Vetrov, 66. The indictment describes how Kosmachov and Vetrov used the Estonia-based companies as procurement “fronts” to obtain controlled U.S.-origin microelectronics, in part by misrepresenting that the end-users for the components were located in Estonia. The components included dual-use programmable computer chips capable of operating in austere environments making them useful in both civilian and military applications. Once in possession of the chips in Estonia, the co-defendants allegedly later smuggled them into the Russian Federation, in part by using laundered funds.
In sum, Kosmachov, Vetrov, and their two companies are charged with one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and one count of conspiracy to commit international money laundering, in violation of 18 U.S.C. §§ 1956(a)(2)(A) and (h). In addition, Kosmachov and Vetrov are charged with 12 substantive counts of violating the IEEPA, in violation of 50 U.S.C. § 1705, 19 counts of smuggling, in violation of 18 U.S.C. §§ 554 and 2; and 17 counts of international money laundering, in violation of 18 U.S.C. §§ 1956(a)(2)(A).
Kosmachov was arrested in Tallinn on September 12, 2018, and was extradited to the United States on March 14, 2019, to face prosecution. Vetrov remains at large. Kosmachov appeared this morning before Chief U.S. Magistrate Judge Joseph C. Spero, for a detention hearing. He remains in federal custody pending his next court appearance. Kosmachov is next scheduled to appear on March 28, 2019, before the Honorable William H. Orrick, U.S. District Judge, for further proceedings.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Kosmachov could face a maximum 20-year term of imprisonment for each IEEPA and money laundering-related count, and a maximum 10-year sentence for each count of smuggling. Additional periods of supervised release, fines, and special assessments also could be imposed. However, any sentence following conviction would be imposed by the court 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 Philip J. Kearney of the Northern District of California United States Attorney’s Office, and Amy Larson, of the U.S. Department of Justice’s National Security Division, are prosecuting the case. The prosecution is the result of an investigation by the U.S. Department of Homeland Security Investigations, the Department of Commerce’s Bureau of Industry and Security, U.S. Customs and Border Protection, the Internal Revenue Service, and the U.S. Marshals Service with assistance from the U.S. Department of Justice’s Office of International Affairs.
Eight Illegal Aliens Involved in Alien Smuggling near New Baden, IllinoisRead the Press Release
Guatemala Man Charged With Smuggling 13 Illegal Aliens in Southern Illinois
An alien smuggling enterprise has been disrupted in the Southern District of Illinois. A Guatemalan citizen has been indicted for smuggling 13 illegal aliens from Guatemala and Ecuador through southern Illinois, seven of whom have been charged with illegally reentering the country after deportation, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today.
The case began on February 25, 2019, when a task force officer with the Drug Enforcement Administration made a traffic stop on an SUV travelling eastbound on Interstate 64 near New Baden, Illinois. During the traffic stop, the officer quickly saw that the vehicle was overloaded with numerous people crammed in the seats and on the floor. The driver of the vehicle, Domingo Tomas-Zacarias, 20, was discovered to be a citizen of Guatemala who was unlawfully present in the United States.
Federal agents from Homeland Security Investigations (HSI) and Immigration and Customs Enforcement (ICE) responded to the scene, with assistance from local police officers from Lebanon and New Baden. The officers discovered a total of fourteen people, including six who were found hiding under a blanket in the back of the SUV. All fourteen men were taken into administrative ICE custody.
The driver, Tomas-Zacarias, has been charged with alien smuggling, which alleges that he knowingly transported illegal aliens for financial gain. He faces a maximum possible punishment of 10 years imprisonment, a $250,000 fine, and three years of supervised release.
Seven of the passengers in the vehicle had been previously arrested in the United States and deported. Those seven individuals are now also under federal indictment for illegally reentering the country after deportation, which is a federal crime punishable by up to two years imprisonment, a $250,000 fine, and one year of supervised release. They are Segundo Porfirio Ordonez-Japon, 34, of Ecuador, and Alejandro Mejia-Hernandez, 24, Silvestre Bopp-Mendoza, 30, Miguel Raymundo Velasco, 19, Rigoberto Heredia-Lopez, 30, Fidencio Quizar-Sharshente, 32, and Diego Brito-Bernal, 24 – all of Guatemala.
The remaining six passengers were determined to have illegally entered the United States through various locations in Arizona or Texas at various times. None of these six had been previously deported, and so they remain in administrative ICE custody pending deportation proceedings.
All eight charged defendants appeared in federal district court on March 13, 2019, for Initial appearances following the filing of a criminal complaint against them. Now that they have been indicted, the eight are expected to be arraigned on the indictment on March 20, 2019, at which time a trial date will be set.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt.
Eagle Butte Man Indicted for Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm and Prohibited Person in Possession of a Firearm.
Devin Dolphus, a/k/a Devin Pretty Weasel, age 19, was indicted on March 12, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 19, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 16, 2019, Dolphus being an unlawful user of a controlled substance, methamphetamine, and prohibited from possessing a firearm was found in possession of a shotgun having a barrel length of less than 18 inches. This firearm was not registered in the National Firearms Registration database.
The charges are merely accusations and Dolphus is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, Cheyenne River Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, and Firearms. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Dolphus was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Burglary and Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary and Aggravated Sexual Abuse.
Shawn Iron Hawk, age 25, was indicted on February 20, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 18, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 30, 2018, Iron Hawk entered a home occupied by an individual and sexually assaulted the victim.
The charges are merely accusations and Iron Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Iron Hawk was released on bond pending trial. A trial date has not been set.
Dubois-area Doctor Pleads Guilty to Health Care FraudRead the Press Release
JOHNSTOWN, PA - A resident of DuBois, Pennsylvania pleaded guilty in federal court to a charge of health care fraud, United States Attorney Scott W. Brady announced today.
David James Girardi, 41, pleaded guilty yesterday to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, Girardi, formerly a physician at Brookville Hospital, admitted to committing health care fraud by submitting fraudulent claims to Highmark for six Oxycodone and Hydrocodone prescriptions that Girardi wrote for his wife, but which were in fact intended for his own use.
Judge Gibson scheduled sentencing for August 5, 2019. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant’s bond.
Assistant United States Attorneys Colin J. Callahan and Rachael L. Mamula are prosecuting this case on behalf of the government.
The Department of Health and Human Services, Office of Inspector General conducted the investigation that led to the prosecution of David James Girardi.
Dozens Arrested in Major Law Enforcement OperationRead the Press Release
HOUSTON - A total of 47 people are now in custody following the return of a 43-count indictment alleging drug-trafficking and related crimes in the Houston and Galveston areas. The case will be prosecuted in the Galveston Division of the Southern District of Texas.
U.S. Attorney Ryan K. Patrick made the announcement along with Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Chief Vernon Hale of the Galveston Police Department (GPD), Special Agent in Charge Designee Brett Rovey of Internal Revenue Service - Criminal Investigation (CI) and Deputy U.S. Marshal Alfredo Perez of the U.S. Marshals Service (USMS).
The arrests are the culmination of 31-month Organized Crime Drug Enforcement Task Force investigation (OCDETF) dubbed Operation Wrecking Ball.
“This operation is the result of countless hours of hard work by officers and agents from many different agencies,” said Patrick. “OCDETF is uniquely able to marshal resources for complex cases. The Department of Justice is committed to disrupting the work of international cartels and other drug trafficking organizations. This case also is reinvigorating my office’s commitment to Galveston. For the first time in decades, we have a full time prosecutor on the island who is focused on cases that will have a local impact in Brazoria, Chambers, Galveston and Matagorda counties.”
During the law enforcement operation today and yesterday that spanned multiple jurisdictions and states, authorities took a total of 43 people into custody. They join the four individuals who were previously in custody. Nine are considered fugitives and warrants remain outstanding for their arrests.
“Today’s enforcement operation marks the culmination of a 3 ½ year investigation targeting one of the largest suspected drug organizations seen in Southeast Texas in decades,” said Glaspy. “The success of this investigation was possible only because of the many law enforcement agencies dedicated to protecting our communities in the greater Houston/Galveston area from those who prey on them.”
The indictment, which was returned in November 2018 and unsealed today, alleges the defendants engaged in a variety of cocaine and heroin transactions. Some also allegedly conspired to commit money laundering and illegally transferred money to avoid reporting requirements.
The charges allege the crimes occurred between Feb. l, 2016, and April 19, 2018. According to the indictment, the drugs were smuggled into the United States from Colombia and Mexico. Heroin and Cocaine was then distributed through Houston to Atlanta, Georgia; Buffalo and New York, N.Y.; Miami, Florida; New Orleans, Louisiana; and Norfolk, Virginia.
This case is a clear example of the kind of federal matters we are bringing to the Galveston Division
The indictment also seeks forfeiture of any illegal proceeds of the alleged crimes. To date, approximately $3.1 million has been seized.
Those arrested are expected to make initial appearances before U.S. Magistrate Judge Andrew Edison in Houston beginning at 10:00 a.m. March 21, 2019.
The DEA conducted the investigation along with HSI, Houston Police Department, IRS-CI, USMS, GPD and Galveston County Sheriff’s Office with assistance of the Texas National Guard Joint Counterdrug Task Force. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Dominican National Pleads Guilty to Aggravated Identity Theft and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national pleaded guilty on Friday, March 15, 2019, in federal court in Boston to identity theft, aggravated identity theft, theft of public money, and illegally reentering the United States after being deported.
Isidro Viscaino-Soto, a/k/a Ysidro Vizcaino, 59, a Dominican national residing in Boston, pleaded guilty to one count of identity theft, one count of aggravated identity theft, one count of theft of public money, and one count of illegal reentry of a deported alien. U.S. District Court Judge Patti B. Saris scheduled sentencing for June 30, 2019. Viscaino-Soto was arrested and charged by complaint on April 17, 2018, and has been in custody since.
“Despite being previously deported following a conviction for drug dealing, this defendant returned to the United States, acquired the Social Security number of a U.S. citizen, and used it to fraudulently apply for MassHealth, which is funded by U.S. taxpayers,” said United States Attorney Andrew E. Lelling. “Cases like this are precisely why we need strong border security: the first time, Viscaino-Soto came to the United States and sold drugs here. The second time, he came to the United States, stole an identity, and then stole $9,000 worth of insurance benefits from U.S. citizens.”
Law enforcement officers in Boston discovered Viscaino-Soto on April 12, 2018, and determined him to be illegally present in the United States. Viscaino-Soto was previously deported on July 31, 2000, after receiving a drug conviction. In addition, Viscaino-Soto used the Social Security number of a U.S. citizen from Puerto Rico in order to receive disability insurance, and in so doing, stole approximately $9,000 in federally-funded MassHealth benefits.
Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000. The identity theft charge provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of illegal reentry provides for a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000. Viscaino-Soto will be subject to deportation upon completion of his sentence. 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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Denison, Iowa Men Off to Federal Prison for Meth ConspiracyRead the Press Release
Two men who conspired to distribute meth were sentenced to federal prison. Erick Corona Cardenas, 30, Denison, Iowa, but illegally in the United States, and Daniel Limon Bastidas, 23, from Denison, Iowa, received the prison terms after pleading guilty to conspiracy to distribute methamphetamine within a protected location.
Evidence showed that Corona Cardenas and Limon Bastidas were involved in a conspiracy from January 2017 through February 2018 that distributed more than 2 kilograms of methamphetamine in the Denison, Iowa area. On two separate occasions, law enforcement executed search warrants at the men’s residences where approximately 1 pound and ½ pound quantities of methamphetamine were seized that the men intended to distribute to others. During two controlled drug transactions in the Hy-Vee parking lot in Denison, Corona Cardenas and Limon Bastidas first distributed ½ pound and later were in possession of one pound of methamphetamine. The parking lot for Hy-Vee is within the protected location of Washington Park, a public playground.
Both men were sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Corona Cardenas was sentenced to 120 months’ imprisonment and Limon Bastidas was sentenced to 90 months’ imprisonment. Each must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Iowa DCI Laboratory, Denison Police Department, and the Crawford County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4016. Follow us on Twitter @USAO_NDIA.
Cryptocurrency CEO Pleads Guilty to Securities Fraud in $4 Million Crypto SchemeRead the Press Release
The inventor of cryptocurrency AriseCoin pleaded guilty today to duping investors out of more than $4 million, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
AriseBank CEO Jared Rice, Sr. – who settled a civil action involving AriseCoin filed by the SEC’s Fort Worth regional office last year – pleaded guilty to one count of securities fraud Wednesday afternoon. His plea makes this case one of the first in which an individual has pleaded guilty to securities fraud involving a cryptocurrency in U.S. federal court.
According to his plea papers, Mr. Rice, 30, admits he lied to would-be investors, claiming that AriseBank – billed as the world’s “first decentralized banking platform” based on the proprietary digital currency AriseCoin – could offer consumers FDIC-insured accounts and traditional banking services, including Visa-brand credit cards, in addition to cryptocurrency services. In actuality, AriseBank had not been authorized to conduct banking in Texas, was not FDIC insured, and did not have any sort of partnership with Visa.
Even as he touted AriseBank’s nonexistent benefits, Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, transportation, a family law attorney, and even a guardian ad litem – facts he failed to disclose to investors. He also failed to disclose that he’d plead guilty to state felony charges in connection with a prior internet-related business scheme.
Meanwhile, hundreds of investors bought approximately $4,250,000 in AriseCoin using digital currencies like Bitcoin, Ethereum, and Litecoin, as well as fiat currency.
“I’m proud of the Northern District of Texas’ innovative work enforcing the rule of law in the cryptocurrency space,” said U.S. Attorney Nealy Cox. “We will not tolerate flagrant deception of investors – virtual or otherwise.”
Statutorily, Mr. Rice faces 0 to 20 years in federal prison. His sentencing is slated for July 11, 2019. He is expected to be required to reimburse investors he deceived.
The Federal Bureau of Investigations conducted the investigation. Assistant U.S. Attorneys Mary Walters and Sid Mody are prosecuting the case.
Convicted Drug Dealer from Youngstown, Ohio Pleads Guilty to Trafficking Heroin in New Castle, PARead the Press Release
PITTSBURGH - A resident of Youngstown, Ohio, pleaded guilty in federal court to a charge of possession with the intent to distribute and distribution of heroin, United States Attorney Scott W. Brady announced today.
Frank Christian, 46, pleaded guilty yesterday to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on or about February 22, 2016, in the City of New Castle, Christian distributed approximately 90 grams of heroin to a confidential informant. Christian has a prior federal felony conviction for possession with intent to distribute crack cocaine, and was on federal supervised release at the time of his arrest.
Judge Bissoon scheduled sentencing for July 9, 2019 at 2:15 p.m. The law provides for a total sentence of not more than thirty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.
Pending sentencing, the Judge continued Christian’s detention.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Pennsylvania State Police and New Castle Police Department conducted the investigation that led to the prosecution of Christian.
Concord Man Sentenced to 63 Months for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
CONCORD - Nathaniel Carr, 25, of Concord, was sentenced to 63 months in federal prison for unlawfully possessing firearms and ammunition, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 1, 2018, a police officer saw a Chevrolet Trailblazer with expired temporary license plates, driven by Carr, exit a convenience store’s parking lot on Loudon Road. A police officer later located the vehicle, with Carr sitting in the driver’s seat, in another parking lot on Loudon Road. At that location, the police officer parked behind the Trailblazer. When Carr opened the driver’s door, the police officer saw a .22 caliber revolver in the pocket of the driver’s door and a box of .22 caliber ammunition in front of the front passenger seat. As a previously-convicted felon, Carr is prohibited by federal law from possessing firearms or ammunition.
While later executing a warrant to search Carr’s residence on August 24, 2018, the Concord Police Department found 20 rounds of .380 caliber ammunition, 31 rounds of .38 caliber ammunition, and .380 caliber pistol in the kitchen; and a .12 gauge shotgun shell in Carr’s bedroom. Officers also found methamphetamine and fentanyl in the kitchen.
Carr previously pleaded guilty on December 6, 2018.
“In order to keep our communities safe, it is vital to keep guns out of the hands of criminals,” said U.S. Attorney Murray. “We will continue to work closely with our law enforcement partners throughout New Hampshire to identify, prosecute, and incarcerate those who violate federal firearms laws.”
“As a previously convicted felon, Mr. Carr should have known better than to break the law again. The FBI will continue to work with our law enforcement partners to keep illegally obtained weapons out of the hands of others like him,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the Concord Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Anna Krasinski prosecuted the case.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Collier County Man Arrested and Charged with Murder on the High SeasRead the Press Release
Fort Myers, FL – Casey Lowell Hickok (32, Copeland) has been arrested and charged by criminal complaint with second-degree murder within the special maritime and territorial jurisdiction of the United States. Hickok made his initial appearance in federal court yesterday afternoon and was ordered detained pending trial. If convicted, he faces a maximum penalty of life in federal prison.
According to the complaint, while aboard a commercial fishing vessel, Hickok was witnessed bludgeoning a sleeping member of the boat’s crew to death with a spare boat alternator, which he later threw off the vessel. At the time, the vessel was in the Gulf of Mexico, approximately 66 nautical miles west of Marco Island.
A criminal complaint is merely an allegation 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 is being investigated by the U.S. Coast Guard Investigative Service and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Simon Eth.
Chinese National Arrested and Charged with Gun PossessionRead 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 Teng Sun, a Chinese national, was arrested and charged by criminal complaint with being an alien in possession of a firearm. The charge carries a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Emmanuel O. Ulubiyo, who is handling the case, stated that according to the complaint, on December 17, 2018, the defendant was charged by the Niagara County District Attorney’s Office with Criminal Possession of an Assault Weapon-3rd Degree, and Criminal Possession of an Assault Weapon-4th: Non-Citizen.
Subsequently, a check by the Department of Homeland Security, Immigration and Customs Enforcement-Enforcement and Removal Operations (ICE-ERO), determined that Sun is a citizen and national of China illegally present in the United States. The defendant entered the United States as a nonimmigrant F-1 student with authorization to remain in the U.S. States for a temporary period not to exceed his length of stay. On April 2, 2015, Sun was granted Optional Practical Training (OPT) employment authorization with an end date of September 1, 2016. On September 1, 2016, SUN completed his Optional Practical Training and failed to comply with the conditions of his non-immigrant status by not filling an extension or departing from the United States.
On March 14, 2019, the defendant, and his wife were arrested by ICE-ERO for deportation proceedings. While in custody, Sun consented to be taken to his residence located in Williamsville, NY to retrieve his wife’s passport. Once inside the residence, the defendant showed ICE-ERO agents his firearms and ammunition. Agents took 10 firearms into custody, as well as eight 80% complete AR-15 type lower receivers as well as the drilling templates to complete those receivers, and approximately 1,000 to 2,000 rounds of ammunition consisting of various caliber ammunition.
The defendant will make an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy on March 29, 2019, at 11:30 a.m. he is currently being detained by ICE-ERO.
The complaint is the result of an investigation by Immigration and Customs Enforcement-Enforcement and Removal Operations, under the direction of Buffalo Field Office Director Thomas Feeley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Charlotte Tax Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A Charlotte, North Carolina, tax return preparer was sentenced to 24 months in prison today for assisting in the filing of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Andrew Murray for the Western District of North Carolina.
According to documents and information provided to the court, from 2011 through 2017, Shawanda Elmore owned and operated C and W Tax Professionals, a tax return preparation business in Charlotte. Elmore fraudulently increased her clients’ tax refunds by preparing returns that claimed false deductions and reported income and expenses for fictitious businesses in order to claim the Earned Income Tax Credit. In total, Elmore prepared approximately 500 fraudulent tax returns that claimed over $500,000 in false tax refunds from the Internal Revenue Service (IRS).
In addition to the term of imprisonment imposed, Elmore was ordered to serve one year of supervised release and to pay restitution in the amount of $517,738 to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who are prosecuting the case.
Charlotte Business Owner Pleads Guilty to Transporting Stolen PropertyRead the Press Release
CHARLOTTE, N.C. – Edwin R. Barkley, 63, of Charlotte, appeared in federal court today and pleaded guilty to interstate transportation of stolen property, for operating a large-scale fraudulent scheme involving the purchase and sale of stolen goods and merchandise through his Charlotte-based storefront business, Tool King USA (Tool King).
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join the U.S. Attorney’s Office in making today’s announcement.
As Barkley admitted in court today, from at least September 2015 through October 2018, Barkley operated the Tool King as a “fence,” which is a business that buys stolen merchandise from multiple “boosters.” A booster is someone who steals goods and merchandise and sells them to a fence. Court records show that Barkley bought from multiple boosters large-ticket items such as power tools, vacuum cleaners, generators, and home electronic goods, at a fraction of their retail value. Barkley then sold the stolen merchandise on an e-commerce platform at or near ninety percent of their retail value, and used the profits to pay for his daily living expenses.
Barkley entered his guilty plea before U.S. Magistrate Judge David S. Cayer. The interstate transportation of stolen goods charge carries a maximum penalty of 10 years in prison and a $250,000 fine. Barkley is currently released on bond. A sentencing date has not been set.
This case was the result of the investigative efforts of CMPD and the Secret Service. The CMPD and the Secret Service have established a fully integrated partnership to combat the most significant organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Buffalo Photographer Arrested, Charged with Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Delshawn K. Trueheart, 43, of Buffalo, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the complaint, in March 2019, a victim reported to the Buffalo Police Department that Trueheart had a sexual relationship with her while she was between 15 and 17 years of age. The victim stated that she had sexual relations with him at both his residence and his photography studio located on East Delavan Avenue. The victim also reported that Trueheart took nude images of her and recorded them engaged in sexual intercourse.
On March 20, 2019, law enforcement officers searched Trueheart’s residence and studio, and located a video of the victim, then 16 years-old, engaged in sexual intercourse.
The defendant will make an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy at 2:30 p.m.
The criminal complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Buffalo Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Brooklyn Attorney Convicted of Conspiracy to Obstruct A Federal ProceedingRead the Press Release
Lydia Hills, an attorney admitted to practice in the state of New York since 2011, was convicted today by a federal jury in Brooklyn of obstructing an official proceeding, and conspiring to do the same. Specifically, Hills attempted to influence the U.S. Attorney’s Office for the Southern District of New York (USAO-SDNY) to remove a lien on her client’s real properties by misrepresenting that the properties would be sold and that the client would not receive any proceeds from the sale. The verdict followed a three-day trial before United States District Judge I. Leo Glasser. When sentenced, Hills faces up to 20 years’ imprisonment on each count of the indictment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“As proved at trial, Hills violated her oath as an attorney by participating in a corrupt scheme to impede the collection of forfeiture and restitution owed to the government by her client,” stated United States Attorney Donoghue. “Today’s verdict holds her responsible for attempting to undermine the laws she was sworn to uphold, and serves as a message to others that this Office will not tolerate such conduct.”
“When the government imposes a restitution and forfeiture agreement in response to a crime that’s been committed, the best course of action is to pay up. In this case, Lydia Hills masterminded a scheme so her client could skirt the system. At one point, Hills expressed concerns about the deal that was about to go down. As evidenced by today’s conviction, she had every reason to fear the inevitable outcome,” stated FBI Assistant Director-in-Charge Sweeney.
Hills’ client was convicted in 2010 in federal court in the SDNY of conspiracy to commit wire fraud and bank fraud. The client was sentenced to 70 months’ imprisonment and ordered to pay more than $4.9 million in restitution (the Judgment) and more than $13.5 million in forfeiture (the Forfeiture Order). The USAO-SDNY filed a lien against four properties in Queens, New York, to prevent Hill’s client from selling the properties without first satisfying the Judgment and Forfeiture Order.
Hills, who was also a licensed as a real estate broker, subsequently represented the client in a mortgage “short sale” of the properties. In a short sale, the mortgage holder can pay off the mortgage with the proceeds of the short sale, but the mortgager does not receive any of the proceeds. During March and April 2016, Hills conspired with her client to sell the four properties in a transaction where the client would receive the sales proceeds in a hidden cash transaction and conceal it from the USAO-SDNY, which was entitled to the proceeds to partially satisfy the Judgment and Forfeiture Order. On March 15, 2016, Hills faxed a letter to the USAO-SDNY requesting that the lien be released in order to proceed with the sale, falsely representing that the client would not receive any financial benefit from the short sale. However, on April 6, 2016, Hills, the client and the buyer met at the closing, and the buyer gave Hills a bag containing $33,100 in cash, representing $25,000 for one property and Hills’ broker fee of $8,100. At the closing, which was recorded by FBI agents, Hills told the buyer with regard to her client, “I’m afraid. I’m an attorney… I don’t want her to say something… The wrong thing on the phone one day and it’s being recorded and I’m screwed.”
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Martin E. Coffey and Alexander Mindlin are in charge of the prosecution.
The Defendant:
LYDIA HILLS
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 16-cr-204 (ILG)
Berkeley County man indicted for heroin and fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Trey Cardale Campbell, of Martinsburg, West Virginia, was indicted today on drug charges, United States Attorney Bill Powell announced.
Campbell, age 26, is charged with one count of “Distribution of Heroin” and one count of “Possession with Intent to Distribute Furanyl Fentanyl, Heroin, and Fentanyl.” Campbell is accused of distributing heroin, furanyl fentanyl and fentanyl in May 2017 in Berkeley County.Campbell faces up to 20 years incarceration and a fine of up to $1,000,000 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.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Berkeley County man indicted for fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Nicholas Wayne Deminds, of Martinsburg, West Virginia, was indicted today on a drug charge, United States Attorney Bill Powell announced.
Deminds, age 30, is charged with one count of “Possession with Intent to Distribute Fentanyl.” Deminds is accused of distributing fentanyl in December 2018 in Berkeley County.Deminds faces not less than five and up to 40 years incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Bergen and Burlington County, New Jersey, Religious Leaders Admit Roles in Conspiracy to Evade Taxes on Millions of Dollars in Income from ChurchRead the Press Release
NEWARK, N.J. – The leader and the main treasurer of the Israelite Church of God in Jesus Christ admitted their respective roles today in a scheme in which both men caused the church to pay millions of dollars in personal expenses for the leader that the leader then omitted from his personal tax returns, U.S Attorney Craig Carpenito announced.
Jermaine Grant, 43, of Burlington Township, New Jersey, and Lincoln Warrington, 48, of Bergen County, New Jersey, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to Count One of the indictment against them, charging them with conspiring to defraud the United States.
According to documents filed in the case and statements made in court:
Grant and Warrington used their leadership positions in the church to divert to Grant millions of dollars belonging to the church and its members for Grant’s personal use and benefit. The defendants used a variety of methods to carry out the scheme. For example, Grant and Warrington created a purported entertainment company that portrayed Grant as an industry mogul whose wealth was derived from his success in the industry, thereby concealing from church members that his lifestyle was supported entirely by the church and donations from its members. Grant and Warrington also used the church’s money to pay Grant’s other personal expenses, including payments for rental real estate properties, vacations, high-end luxury items, and private school tuition for Grant’s minor children. Grant, with Warrington’s assistance, then omitted these benefits from his individual income tax returns, resulting in the evasion of a substantial amount of tax due and owing to the United States. In total, Grant and Warrington concealed millions of dollars in income from the IRS, and failed to pay at least $250,000 in taxes.
The plea agreements in this matter include a requirement that the church will develop and present to the United States a plan designed to ensure the church’s compliance with applicable federal income tax laws going forward. A preliminary version of this tax compliance plan that is satisfactory to the United States must be provided prior to the date of Grant’s and Warrington’s sentencing hearings. Before the United States returns to the church certain cash and property seized during execution of the search warrants in this case, the compliance plan must address the disposition of that cash and property and ensure that they are returned for the benefit of the the church rather than for the personal benefit of Jermaine Grant or any other individual.
The tax fraud conspiracy charge to which Grant and Warrington pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. If accepted by the court, the plea agreement further provides that each defendant will be sentenced to a maximum of 30 months in prison. Sentencing is scheduled for July 23, 2019.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge Gregory W. Ehrie, and IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty pleas.
The government is represented by First Assistant U.S. Attorney Rachael A. Honig and Assistant U.S. Attorney Margaret A. Mahoney, Senior Trial Counsel for the National Security Unit in Newark, New Jersey.
Defense counsel:
Grant: Gerald Lefcourt Esq. and Faith Friedman Esq., New York
Warrington: Richard Levitt Esq., New YorkBelcourt Man Found Guilty of Aggravated Sexual Assault of a Child Under 12 Years oldRead the Press Release
Fargo – United States Attorney Christopher C. Myers announced that on March 19, 2019, following a two-day trial, a jury returned a guilty verdict against Calvin Keith Delorme, age 30, Belcourt, ND, for the offense of Aggravated Sexual Assault of a Child Under 12 Years. U.S. District Judge James M. Moody Jr., Eastern District of Arkansas, sitting by designation, presided over the trial.
This case came to the attention of law enforcement in March 2014, when a child under Delorme’s care disclosed that he had sexually abused her over a period of several years. The victim stated the abuse occurred on many occasions when the victim was left in the defendant’s care.
This case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Assistant United States Attorneys Matthew Greenley and Lori Conroy prosecuted the case.
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Barbour County woman admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nicholle Knotts, of Philippi, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Knotts, age 25, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine.” Knotts admitted to distributing methamphetamine in November 2017 in Harrison County.Knotts faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Baltimore Man Sentenced to 12 Years in Federal Prison for an Armed CarjackingRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced DeAndre Spencer, age 27, of Baltimore, Maryland, today to 12 years in federal prison, followed by three years of supervised release, for committing an armed carjacking.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
“DeAndre Spencer used a gun to commit a carjacking in broad daylight,” said U.S. Attorney Robert K. Hur. “Hopefully criminals who are not deterred from carrying guns by the threat of prison time can be deterred by the reality of years spent in a federal prison far from home—where there is no parole. Ever.”
According to Spencer’s plea agreement, on October 26, 2017, the victim was stopped in his car at the intersection of North Duncan Street and East Fairmount Avenue in Baltimore, when Spencer approached and requested a ride. The victim refused and Spencer pointed a loaded handgun at the victim and demanded that the victim get out of the car. Spencer then stole the victim’s wallet and cell phone and drove away in the victim’s car. The victim walked to a nearby school and called 911. Police arrived and began an investigation into the carjacking.
Later that day, a detective with the Baltimore County Police Department saw Spencer driving the victim’s car through intersections without stopping at stop signs. The detective began following the car to initiate a traffic stop. Shortly thereafter, Spencer crashed the car into a light pole and tried to run away. The detective apprehended Spencer and recovered a loaded handgun from his person.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the Baltimore Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who prosecuted the case.
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Armstead and Jerome Kieffer, Father and Son, Sentenced to Life in Prison for Felony Murder Related to May 2017 Loomis Armored Car RobberyRead the Press Release
NEW ORLEANS – United States District Judge Ivan L.R. Lemelle sentenced JEROME KIEFFER, age 25, and his father, ARMSTEAD KIEFFER, age 54, both of New Orleans, to spend the rest of their lives in federal prison for their roles in a 2015 armored car robbery and a 2017 attempted armored car robbery in which Loomis guard James McBride was killed, announced U.S. Attorney Peter Strasser.
Following a week-long trial in October 2018, a jury convicted JEROME KIEFFER and ARMSTEAD KIEFFER, who are father and son, of charges related to two armored car robberies, a 2015 robbery at the Chase Bank on N. Board and a 2017 attempted robbery at the Campus Federal Credit Union on Tulane. During the 2015 robbery, JEROME KIEFFER and co-defendant DELTOINE SCOTT, who pleaded guilty and testified against the KIEFFERs, approached a Brinks truck while it was servicing ATMs at the Chase Bank. JEROME KIEFFER forced a guard back onto the truck at gunpoint, and the two robbers made off with approximately $160,000. About a year and a half later, the pair attempted another armored car robbery at the Campus Federal, this time enlisting JEROME KIEFFER’s father, ARMSTEAD KIEFFER as a lookout. During the second robbery, gunfire broke out between the robbers and the guards, and Loomis guard James McBride was shot and later died of his wounds. Both of the KIEFFERs were convicted on all counts at trial.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys David Haller and Michael McMahon are in charge of the prosecution.
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Anne Arundel County Man Sentenced to 40 Years in Federal Prison for Sexually Abusing a Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Glenn Ranger, age 56, of Glen Burnie, Maryland, to 40 years in federal prison, followed by 40 years of supervised release, for two counts of production of child pornography in connection with his sexual abuse of a young boy. At today’s sentencing hearing, the government also presented evidence to the Court that Ranger sexually abused a young girl in the 1990’s, beginning when the girl was approximately 5 years old. Judge Bennett found that Ranger sexually abused the minor girl and took that into consideration in imposing the sentence. Judge Bennett ordered that upon his release from prison, Ranger must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief David A. Spencer of the Easton Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
“Glenn Ranger is a predator and our communities are safer because he will now serve 40 years in federal prison,” said U.S. Attorney Robert K. Hur. “This is an especially egregious case because it involves such young children and the impact of Ranger’s crimes on the victims will continue for the rest of their lives. We are very grateful to the person who turned the child pornography over to authorities, so that Ranger could be brought to justice.”
According to his guilty plea, beginning in at least 2004, Ranger knowingly persuaded, enticed, and coerced a prepubescent male to engage in sexually explicit conduct in order to produce videos and images of that conduct. Specifically, Ranger sexually abused John Doe, beginning when John Doe was approximately seven-years-old, and recorded the abuse. The boy was unaware that Ranger was recording the abuse.
In July 2014, Ranger leased a storage unit in Pasadena, Maryland, but failed to pay the rent for the unit. The contents of the unit were purchased at auction by a resident of Easton, Maryland, in March 2018. After observing the nature of the contents, the individual turned them over to law enforcement. The contents of Ranger’s storage unit included computers and other digital devices, VHS tapes, framed photographs, and binders containing printed and organized images of child pornography erotica. The framed photographs included five images of child pornography, including images documenting Ranger’s abuse of John Doe, which were produced by Ranger. The digital devices were forensically examined and were found to contain over 200 images of child pornography and more than 10,000 child exploitive/age difficult images. Two of the VHS tapes contained videos of Ranger sexually abusing John Doe on three separate occasions, and also show Ranger taking sexually explicit photographs of John Doe. The XD card used to store the images was also located among the items from Ranger’s storage unit.
Ranger was arrested on April 4, 2018. Ranger’s mobile phone was forensically examined after his arrest and revealed that Ranger had visited the social media profile of John Doe, and had made over 46,000 searches using terms such as “nude teen boys,” “nude teenager girl,” “nude teenager boy,” “pure nudist,” and “familys nude.”
Ranger has been detained since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore, the Maryland State Police, the Easton Police Department, the Baltimore County Police Department, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the federal case.
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Albany Man Charged with Distributing and Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Michael J. Kurtz, age 55, of Albany, was arrested on Monday on charges that he distributed and received child pornography over the internet.
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).
According to a criminal complaint, between September 29, 2018 and December 1, 2018, Kurtz received and distributed images of child pornography through a peer-to-peer file sharing program on his home computer. An initial forensic review of his computer revealed that it contained numerous files depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Yesterday, Kurtz appeared before United States Magistrate Judge Daniel J. Stewart, who ordered him detained pending further proceedings.
If convicted, Kurtz faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Accountant Pleads Guilty to Wire Fraud Charge for Running Ponzi Scheme that Cheated Investors Out of More than $27.5 MillionRead the Press Release
LOS ANGELES – A certified public accountant pleaded guilty today to a federal wire fraud charge for running a Ponzi scheme that defrauded her victims, many of whom were clients of her accounting firm, out of tens of millions of dollars over a span of two decades.
Carol Ann Pedersen, 66, of Long Beach, entered her plea before United States District Judge Dolly M. Gee, who scheduled a July 10 sentencing hearing, where Pedersen will face a statutory maximum sentence of 20 years in federal prison.
According to her plea agreement, between 1996 and September 2017, Pedersen executed her scheme by serving as her victims’ unlicensed investment advisor – even though she only was licensed to be a CPA. Through her firm, Carol A. Pedersen, C.P.A., she solicited her accounting clients’ investments through two types of investment opportunities that she offered: “Time Deposit” and “Client Pool,” the plea agreement states. The victims were told that Time Deposit would invest in low-risk securities providing a fixed return on their money after a period of time while Client Pool would invest their money in the stock market through an investment pool Pedersen had established with other investors’ funds, court papers state. During the course of the scheme, Pedersen’s victims invested more than $40 million into these accounts and the total loss to the victims was at least $27,550,720.40, according to court documents.
Pedersen admitted in her plea agreement that after she took her victims’ money, she deposited the funds into her personal accounts, and then used that money to pay her credit card bills, establish trust accounts for her family, and purchase real estate. In an effort to avoid detection and in the classic hallmark of a Ponzi scheme, Pedersen used some of her victims’ money to make distribution payments to her other victims, and she falsely represented the payments as returns on their investments. Pedersen also admitted to avoiding detection by creating fraudulent documents, including false account statements and an online “virtual portfolio” that she falsely represented enabled her victims to track their investments’ progress, court papers state.
For example, on July 30, 2015, Pedersen wired $3 million from a purported “Client Pool” account to a personal account that she controlled, the plea agreement states.
This matter was investigated by the Federal Bureau of Investigation and the Los Angeles County Sheriff’s Department. The Securities and Exchange Commission today filed a civil complaint against Pedersen in connection with the fraudulent scheme.
This case is being prosecuted by Assistant United States Attorneys Julian Andre and Alexander Wyman of the Major Frauds Section.
11 Charged in National Foreclosure Relief ScamRead the Press Release
CINCINNATI – A federal grand jury has charged 11 people from across the country with conspiracy to commit mail and wire fraud in a scheme to defraud distressed homeowners by falsely representing that they could help the victims save their homes. This included more than 50 victims in the Southern District of Ohio.
Eight defendants have been arrested to date. The indictment was returned on March 6 and unsealed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Robert Manchak, Acting Special Agent in Charge, Federal Housing Finance Agency - Office of Inspector General (FHFA-OIG), Northeast Region, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, and Philip R. Bartlett, Inspector in Charge, USPIS, New York region, announced the charges.
According to the 26-count indictment, from 2013 through 2018, the defendants took advantage of homeowners’ desperation to save their homes and used money from homeowner victims to personally enrich themselves.
Those arrested to date include:
Name
Also Known As
Age
Residence
Lorin K. Buckner
62
Hamilton, Ohio
Garrett Stevenson
41
Cincinnati, Ohio
Damien Byrd
40
Norfolk, Va.
Stacy Kay Slaughter
58
Gahanna, Ohio
Marcus A. Mullings, Jr.
57
Hackensack, N.J.
Talia Marie Stephen-Mullings
Marie Hightower
36
Hackensack, N.J.
Amal Mahepaul Balmacoon
Martin
37
South Ozone Park, N.Y.
John Nelson
66
Brooklyn, N.Y.
Companies named in the indictment include:
- MVP Home Solutions, LLC, also known as
- Stay In or Walk Away
- Bolden Pinnacle Group Corp., also known as
- Home Advisory Services Network
- Home Advisory Services Group Inc.
- Silverstein & Wolf Corp.
Joel Harvey, 36, of Cincinnati, Dessalines Sealy, 55, of Brooklyn, N.Y. and Rafiq Bashir, 35, of Jacksonville, Fla. have also been charged in the indictment.
It is alleged that defendants were involved in a multilevel marketing scheme, which promised affiliates commissions by recruiting distressed homeowners to the above named companies.
They used multiple ways to recruit affiliates, including conference calls and direct mailings. For example, some co-conspirators hosted weekly conference calls where participants from across the country dialed in to hear details of the scheme and share sales strategies. During the calls, defendants encouraged affiliates to recruit homeowners to their companies on the promise of easy money.
Some co-conspirators also allegedly promoted, organized and attended conferences in which affiliates came to hear details of the scheme in person. For example, some co-conspirators organized and participated in a national conference in Columbus, Ohio in April 2015 in which they provided “deep impact training” and techniques for affiliates to convince homeowners to enroll in Bolden Pinnacle Group and Silverstein & Wolf Corporation programs.
Affiliates were encouraged to be aggressive in recruiting homeowners. Affiliates used online databases and court records to identify vulnerable, financially distressed homeowners who had recently received notice of foreclosure on their home.
According to the indictment, some co-conspirators mailed more than 22,000 postcards in the Southern District of Ohio and elsewhere promising that they could “stop foreclosure” or “stop the sheriff sale” for a fixed fee. Co-conspirators also reached out to homeowners using Craigslist ads, websites, emails and social media platforms.
On the promise of reducing or eliminating mortgage obligations in exchange for a fee, initial recruiters would collect payments from homeowners and refer the victims to the co-conspirator companies.
Among other things, the referral programs promised:
- to negotiate with mortgage lenders on the homeowners’ behalf for the purchase of the mortgage notes at a discount;
- to negotiate the sale of their home and release of their mortgage loans through a short sale and/or deed in lieu of foreclosure sale;
- to stop an imminent foreclosure sale;
- to remove the mortgage lien via a tender offer; and
- achieve short sale prices at a fraction of the value of the outstanding lien/note.
“These programs were fraudulent,” U.S. Attorney Glassman said. “The defendants performed virtually no negotiations on behalf of the homeowners and never successfully purchased a mortgage note or provided a new, lower-cost mortgage. They never removed a mortgage lien or performed short sales as advertised.”
Further, defendants represented that they had “proprietary” methods or “legal tactics” to help homeowners stall or completely avoid foreclosure. In actuality, the indictment says defendants persuaded homeowners to file chapter 13 bankruptcies in order to delay foreclosure actions.
Defendants allegedly filed skeletal bankruptcy petitions that they called “pump fakes.” These petitions intentionally failed to disclose the co-conspirators as preparers and named the homeowners as filing pro se. Any relief from foreclosure delay was temporary until the bankruptcy court dismissed the proceeding.
In 2014 alone, one defendant allegedly prepared and filed petitions for 30 homeowners without their knowledge, including four homeowners in the Southern District of Ohio.
The indictment includes one count of conspiracy to commit mail fraud and wire fraud, four counts of mail fraud, seven counts of wire fraud, 12 counts of bankruptcy fraud, one count of bank fraud and one count of aggravated identity theft.
“To prey on individuals desperate to find a way to save their homes is unconscionable. What makes this crime even more egregious is the alleged methods these individuals used to lure their victims, and the extensive planning and details by these scammers to not take ‘no’ for an answer if a victim was not willing to enter their program. If you believe in karma, this is what law enforcement brought today when these scammers were arrested and brought to justice for their despicable crimes,” said Inspector in Charge Philip R. Bartlett.
U.S. Attorney Glassman commended the investigation of this case by the FHFA-OIG, USPIS, and FBI, as well as Assistant United States Attorney Ebunoluwa A. Taiwo, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you believe you are a potential victim of this fraud, please contact the FBI at [email protected] or 513-421-4310.
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- MVP Home Solutions, LLC, also known as
Tuesday 19 March 2019
Wolf Point man admits charge in fatal crashRead the Press Release
GREAT FALLS – Wolf Point resident Andrew Preston Martell admitted on Monday he had been drinking and driving under the influence on the Fort Peck Indian Reservation last October when he crashed his vehicle, killing one of his passengers, U.S. Attorney Kurt Alme said.
Martell, 32, pleaded guilty to involuntary manslaughter. He faces a maximum eight years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided and set sentencing for June 27. Martell is detained.
Prosecutors said the crash occurred at about 10 p.m. on Oct. 1, 2018 on a county road known as Swimming Pool Road, near Wolf Point. Martell had been drinking alcohol heavily throughout the evening and was driving around the reservation with two female passengers. Martell drove off the straight road and crashed in a ditch. The vehicle rotated and rolled end over end coming to rest on the driver’s side. All three occupants were trapped in the vehicle and had to be extricated by emergency responders. One of the passengers was impaled by a crutch in the vehicle and died at the scene. Martell’s blood alcohol concentration was about 0.182 percent.
Assistant U.S. Attorney Cassady Adams prosecuted the case, which was investigated by the FBI, Montana Highway Patrol, Wolf Point Police Department and Fort Peck Tribes Law Enforcement.
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Wisconsin Man Pleads Guilty to Producing Child Pornography Outside of the United StatesRead the Press Release
A Wisconsin man pleaded guilty today to producing and possessing child pornography in 2015 and engaging in illicit sexual conduct in a foreign place between 2014 and 2015, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin.
Jeffrey H. Ernisse, 61, pleaded guilty to two counts of producing child pornography, one count of engaging in illicit sexual conduct with a minor in the Philippines, and one count of possessing child pornography before U.S. District Court Judge Lynn S. Adelman. Sentencing is set for July 11, 2019.
According to admissions made in connection with his guilty plea, while law enforcement was investigating Ernisse for production of child pornography in Wisconsin, they discovered evidence of additional child pornography production from the Philippines on Ernisse’s digital devices. While traveling in the Philippines, in March 2015 and then again, in April 2015, Ernisse produced child pornography with a prepubescent minor. Between June 2014 and April 2015, he engaged in illicit sexual conduct with a minor in the Philippines. And in December 2015, Ernisse possessed child pornography in the Eastern District of Wisconsin.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) is investigating this case with the cooperation of the Sheboygan, Wisconsin, Police Department. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Megan J. Paulson of the Eastern District of Wisconsin are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Williamsport Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Zakhary Wayne Pryer, age 39, of Old Lycoming Township, Pennsylvania, was indicted on March 14, 2019, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Pryer distributed heroin and cocaine on five separate dates between October 12, 2018 and November 19, 2018. The indictment also alleges that on November 20, 2018, Pryer possessed with intent to distribute 50 grams or more of methamphetamine and additional amounts of heroin, cocaine, marihuana, and phencyclidine (PCP). The indictment also alleges that Pryer possessed three pistols in furtherance of his drug trafficking activities.
The case was investigated by the Pennsylvania State Police, the Lycoming County Narcotics Enforcement Unit, and the Federal Bureau of Investigation (FBI). Assistant United States Attorney George J. Rocktashel is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.]
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Waynesboro pharmacist pleads guilty to felony drug chargeRead the Press Release
AUGUSTA, GA: A Waynesboro pharmacist is awaiting sentencing after pleading guilty to illegally obtaining opioids for his own use.
Wilton Clinton “Clint” Meeks III, 55, of Waynesboro, Ga., pled guilty on Tuesday, March 19, 2019, to acquiring a controlled substance by misrepresentation, deception, or subterfuge, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall accepted Meeks’ guilty plea.
According to information provided in court filings and during court proceedings, Meeks acquired Oxycodone from his pharmacy, Liberty Square Pharmacy, that was not prescribed to him. Meeks did so for his own personal use, and the unlawful acquisition of Oxycodone occurred for more than one year.
Oxycodone is a Schedule II controlled substance. While the opioid is often prescribed to treat severe pain, Oxycodone carries a serious risk of addiction, abuse, and overdose, according to the Centers for Disease Control and Prevention.
“An inherent tragedy of opioid addiction is that it often transitions from legitimate need to desperate compulsion,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “But that isn’t an excuse for medical professionals to break the law in pursuit of their own gratification.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division, said, “DEA, its law enforcement partners and the United States Attorney’s Office are committed to stopping medical professionals like Mr. Meeks from abusing their positions of trust.”
The Meeks guilty plea is the result of the U.S. Department of Justice’s ongoing efforts to fight the prescription opioid crisis. The U.S. Attorney’s Office for the Southern District of Georgia is committed to using all available remedies under the Controlled Substances Act against doctors, pharmacists, and others who break the law.
U.S. Attorney Christine commended the hard work of the Savannah Resident Office of the Drug Enforcement Administration, which investigated Meeks, led by Group Supervisor George M. Taylor and Diversion Investigator Tierra Singleton.
Assistant United States Attorney Jonathan A. Porter is prosecuting the case on behalf of the United States.
Wisconsin Man Pleads Guilty to Producing Child Pornography Outside of the United StatesRead the Press Release
WASHINGTON – A Wisconsin man pleaded guilty today to producing and possessing child pornography in 2015 and engaging in illicit sexual conduct in a foreign place between 2014 and 2015, announced Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin.
Jeffrey H. Ernisse, 61, pleaded guilty to two counts of producing child pornography, one count of engaging in illicit sexual conduct with a minor in the Philippines, and one count of possessing child pornography before U.S. District Court Judge Lynn S. Adelman. Sentencing is set for July 11, 2019.
According to admissions made in connection with his guilty plea, while law enforcement was investigating Ernisse for production of child pornography in Wisconsin, they discovered evidence of additional child pornography production from the Philippines on Ernisse’s digital devices. While traveling in the Philippines, in March 2015 and then again, in April 2015, Ernisse produced child pornography with a prepubescent minor. Between June 2014 and April 2015, he engaged in illicit sexual conduct with a minor in the Philippines. And in December 2015, Ernisse possessed child pornography in the Eastern District of Wisconsin.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) is investigating this case with the cooperation of the Sheboygan, Wisconsin, Police Department. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Megan J. Paulson of the Eastern District of Wisconsin are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Vancleave Woman Pleads Guilty to Credit Union TheftRead the Press Release
Gulfport, Miss. – Merrideth Christina McMillian, 46, of Vancleave, Mississippi, pled guilty yesterday before U.S. District U.S. District Judge Sul Ozerden to theft from a credit union, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI).
While employed as the vice president of Singing River Federal Credit Union’s Moss Point branch, McMillian stole more than $350,000 from the credit union. The fraud was discovered after an audit in August 2018 showed suspicious transactions.
McMillian carried out the fraudulent scheme by going into the bank’s computer system and releasing collateral that was used for other loans. Once the collateral was released, she used that collateral to borrow money. Agents also uncovered that in 2017, McMillian used a customer’s information, without her consent, to take out several unsecured loans. The loans ranged from $5,000.00 to $60,000.00. On another occasion, McMillian used a friend’s name and a customer’s money market account information to take out a fraudulent loan of $47,500. In total, McMillian stole more than $350,000.00.
McMillian will be sentenced on June 24, 2019, by Judge Ozerden and faces a maximum penalty of 30 years in prison and a $1,000,000.00 fine.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
U.S. Attorney’s Office Based in Los Angeles Collects over $317 Million in Civil and Criminal Actions During Fiscal Year 2018Read the Press Release
LOS ANGELES – United States Attorney Nicola T. Hanna announced today that the United States Attorney’s Office for the Central District of California collected over $317 million in criminal, civil and forfeiture actions in Fiscal Year 2018.
Included in the total amount of $317,453,521 collected during the fiscal year that ended on September 30, 2018 was more than $61.2 million of restitution and fines ordered in criminal cases. The majority of this money was owed to victims of federal crimes, and some of the money helps fund programs that support victim services. As part of its commitment to collecting restitution owed to victims, the United States Attorney’s Office has shown consistent annual increases in the amount of money collected in this area, and last year’s $61.2 million is more than double the amount recovered in fiscal year 2016.
Last year’s collections also include over $235 million worth of assets forfeited to the United States for crimes committed both here and abroad, including more than $100 million recovered as part of the ongoing 1MDB international kleptocracy investigation. Prosecutors in the Asset Forfeiture Section also collected millions of dollars – including cash, numerous high-end and collectible vehicles, and residential properties – from a parking lot operator who defrauded the Veterans Administration. Forfeited assets – money and the proceeds of property that will be sold – are deposited into the Department of Justice Asset Forfeiture Fund, and that money is used to compensate crime victims and fund a variety of law enforcement activities, including federal task forces and education initiatives.
The balance of the money collected during the preceding fiscal year – $21.2 million – was secured through civil enforcement matters in which prosecutors recovered federal funds lost primarily through fraud or other misconduct.
Additionally, the office’s Civil Division worked with other U.S. Attorney’s Offices and colleagues in Washington to collect an additional $162.2 million in civil cases that were pursued in conjunction with these other Justice Department components, a figure that includes a $65 million settlement with Prime Healthcare Services and its chief executive officer to resolve allegations of Medicare fraud.
“We are focused on securing restitution for crime victims, recovering taxpayer money obtained by fraud, and stripping criminals of their ill-gotten gains,” said United States Attorney Nick Hanna. “The hundreds of millions of dollars we recovered in 2018 stand as a tribute to the tenacity and hard work of our prosecutors and staff.”
The United States Attorney’s Office for the Central District of California is based in Los Angeles and has branch offices in Santa Ana and Riverside. Currently, approximately 275 Assistant United States Attorneys serve about 20 million people who reside in the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo.
The lawyers in the Financial Litigation Section in the Civil Division, headed by Assistant United States Attorney Indira Cameron-Banks, collect restitution, fines, civil settlements, penalties and defaulted federal loans owed to victims of federal crimes and to the United States. These efforts include locating and securing debtors’ assets through investigation, discovery and enforcement actions.
The prosecutors in the Criminal Division’s Asset Forfeiture Section, led by Assistant United States Attorney Steven R. Welk, are responsible for handling all criminal and civil forfeiture matters. These attorneys work closely with federal investigating agencies and task forces, in this district and elsewhere, to deprive criminals and their organizations of the proceeds generated by their illicit activities and the property used to facilitate those crimes.
Two Illegal Aliens from Mexico Plead Guilty to Reentering United StatesRead the Press Release
Gulfport, Miss. – Jose Garcia Faustino and Ernesto Santiago-Baltazar, both age 21 and citizens of Mexico, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr. to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Garcia Faustino and Santiago-Baltazar are scheduled to be sentenced by Judge Guirola on June 6, 2019. They each face a maximum penalty of 2 years in federal prison and a $250,000 fine. They also faced removal from the United States following the completion of any prison sentence.
On or about January 28, 2019, an interdiction agent with the South Mississippi Metro Enforcement Team conducted a lawful traffic stop on a GMC Yukon XL with South Carolina license plates on interstate I-10 eastbound in Jackson County. The agent observed a total of eight occupants in the vehicle (2 drivers and 6 passengers), which included Garcia Faustino and Santiago-Baltazar as passengers.
Border Patrol Agents arrived on the scene shortly thereafter, and interviewed the occupants of the vehicle as to their citizenships, determining none had proper documents and all were illegally present in the United States. All eight vehicle occupants were illegal aliens from Mexico. All occupants were arrested and transported to the Border Patrol Station in Gulfport. A Homeland Security Investigations Special Agent joined Border Patrol Agents and determined the six passengers were being smuggled within the United States. Further investigation revealed that both men are citizens of Mexico and had previously been ordered removed from the United States.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Homeland Security Investigations, the United States Border Patrol, the Jackson County Sheriff’s Department and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Three honored with Executive Office of United States Attorney AwardsRead the Press Release
Pictured: Fawn Thomas, Ashley Lough, Tracie WeaverWHEELING, WEST VIRGINIA –U.S. Attorney Bill Powell is applauding his staff for being recognized for their outstanding work in the Northern District of West Virginia.
The Executive Office for United States Attorneys honors staff from U.S. Attorney’s offices across the country each year to recognize exemplary work within the Department of Justice. Three staff from the Northern District of West Virginia will be honored this year.
Fawn Thomas, Administrative Officer, is being honored for Superior Performance in Administration. Fawn has worked for the U.S. Attorney’s Office for 31 years, serving in several positions prior to becoming the Administrative Officer in 2012. Fawn has been described as a “force of nature”. Her dedication to the District and its staff is unmatched. She travels thousands of miles every year across the District trying to assure all ongoing needs are being met, and does so with a warm and generous spirit. Her work ethic is well-known to all who know her and she exemplifies the District’s motto of “One District, One Mission.” Fawn’ endless hours of dedication greatly justifies the recognition she has now received.
For Superior Performance in Prevention and Reentry Activities, the Executive Office has recognized Reentry Coordinator Ashley Lough. Ashley has been the District’s Reentry Coordinator since 2017, and also serves at the Executive Assistant to the U.S. Attorney. Ashley has worked tirelessly to implement the district’s reentry simulation in all of the District’s federal correctional facilities, as well as several within the West Virginia’s Division of Corrections’ prisons. She has put the District on a national stage as the standard in reentry efforts with this simulation. She also assists with job fairs within our federal prisons, as well as trained those in other Districts across the country on reentry efforts. Her dedication to reentry and the success of those exiting prison is unmatched. Ashley has worked with the District for four years, and with the federal government for 12 years.
Tracie Weaver, Litigation Support Specialist, is being honored for Superior Performance in Litigative Support Role. Tracie was the first Litigation Support Specialist in the District, and has worked tirelessly to master the tools necessary for exemplary work in her position. Tracie has assisted in helped to establish four fully-trained Litigation Support Specialists now in the District. She offers vital assistance and knowledge to the other specialists, to the Assistant U.S. Attorneys in the District, serving as an important part of the criminal prosecution team, and to others on a national level. Tracie has worked for the District for more than 20 years.
“I can’t say enough about these honorees. It is spectacular that a district of our size would have three Director Award recipients in the same year, particularly in light of the highly selective selection process. These awards are well deserved and reflect extraordinary work and dedication. It is a tribute to our district that we have Fawn, Ashley and Tracie. It will be one of my great professional honors to be part of the presentation ceremony. Congratulations to each of them,” said Powell.
The 35th Executive Office for United States Attorneys (EOUSA) Director’s Awards will be held on June 20, 2019 at the Robert F. Kennedy Main Justice Building Great Hall in Washington, D.C.
The EOUSA provides executive and administrative support for the 93 U.S. Attorneys located throughout the 50 states, the District of Columbia, Guam, the Marianas Islands, Puerto Rico, and the U.S. Virgin Islands. Such support includes legal education, administrative oversight, technical support, and the creation of uniform policies. Learn more at https://www.justice.gov/usao/eousa.
Three Men Plead Guilty to Federal Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced that three men, two from Detroit, Michigan, and one from Huntington, entered guilty pleas today in federal court in Huntington:
Rudolph Donnell Willis, 45, from Detroit, Michigan entered a guilty plea to conspiracy to distribute heroin. Between March and June of 2015, Willis received heroin which he delivered on multiple occasions to a residence located at 1751 Buffington Avenue in Huntington. Willis provided the heroin to the occupants of the residence and the occupants would in turn distribute the heroin to various customers. Willis later collected money from the heroin sales at the residence. Law enforcement officers executed a search warrant at the residence on June 29, 2015. Just prior to execution of the warrant, officers observed Willis enter the residence. During the search, Willis and other individuals in the residence were arrested and officers seized heroin, cocaine, and crack cocaine.
Willis faces up to 20 years in federal prison when he is sentenced on June 24, 2019.
The FBI Drug Task Force and the Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
Ellis Simmons, Jr., 49, from Detroit, Michigan, entered guilty pleas to possession with intent to distribute heroin and prohibited possession of a firearm by a convicted felon in federal court in Huntington. On September 14, 2015, members of the Huntington FBI Drug Task Force executed a search warrant at 2317 Lincoln Avenue in Huntington. When investigators executed the warrant, they located Simmons and two additional individuals inside the residence. Investigators subsequently seized approximately 25 grams of heroin during the search. Investigators also seized a .22 caliber pistol from a room where Simmons was located. Simmons was previously convicted of multiple felony offenses and admitted to possessing the gun. Simmons also admitted that during the month of September 2015, he and others used the residence to distribute heroin.
Simmons faces up to 30 years in federal prison when he is sentenced on July 8, 2019.
The FBI Drug Task Force and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is handling the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
“The Detroit Express is very much alive,” said United States Attorney Mike Stuart. “We are working overtime to intercept and prosecute the Detroit drug demons that poison our streets and our kids. Since I became United States Attorney, scores and scores of Detroit thugs have been arrested and prosecuted in the Southern District of West Virginia. Even the Detroit poison peddlers should be able to figure it out – come to my district and we will see if we can arrange for you to spend a very long time behind bars.”
Carl Dillow III, 29, of Huntington, entered a guilty plea to an indictment charging him with distribution of fentanyl. Dillow admitted that on May 22, 2017, he met a confidential informant at the Adams Landing apartments in Huntington and gave the informant fentanyl in exchange for $70.
“Fentanyl is killing too many West Virginians,” said Stuart. “Fentanyl is the leading cause of overdose for our citizens. Anyone caught distributing fentanyl will be prosecuted to the maximum extent of the law.
Dillow faces up to twenty years in federal prison when he is sentenced on July 8, 2019.
The Huntington Police Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
These cases are being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Tax Preparer Sentenced to 2 Years in Prison for Fraudlent Scheme to Steal over $1 Million from His ClientsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that TOM SHIN was sentenced to two years in prison for aiding the preparation of a false tax return and wire fraud. SHIN pled guilty on November 29, 2018, before U.S. District Court Judge Valerie E. Caproni, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Instead of honestly performing the tax services he was hired to do, Tom Shin used his expert knowledge in a scheme to defraud his clients of more than $1.3 million that was intended to pay taxes owed to the federal and state governments. Today, Shin has been held accountable for breaching his clients’ trust.”
According to the allegations in the Complaint and Indictment to which SHIN pled guilty:
SHIN was hired to prepare joint federal and state tax returns for two individuals (the “Clients”) for tax year 2017. SHIN showed the Clients completed tax return forms indicating that the Clients owed approximately $1.3 million in taxes. However, SHIN actually filed false returns on behalf of the Clients without their knowledge, which concealed the Clients’ tax liability. SHIN then, in connection with applications for extensions of time to file his personal tax returns, directed tax authorities to withdraw approximately $1.3 million from the Clients’ bank account, and then filed personal tax returns seeking an approximately $1.3 million refund. The net result of the alleged scheme would have been a transfer of approximately $1.3 million from the Clients’ bank account to SHIN.
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In addition to the prison term, SHIN, 36, of Staten Island, New York, was sentenced to two years of supervised release. SHIN was also ordered to forfeit $335,394.
U.S. Attorney Berman thanked the Internal Revenue Service and the New York State Department of Taxation and Finance for their outstanding work.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Brett M. Kalikow is in charge of the prosecution.
St. Croix Man Convicted at Trial, Who Later Absconded to Puerto Rico, Pleads Guilty to Escape from CustodyRead the Press Release
St. Croix, USVI – On Tuesday, March 19, 2019, Nathaniel Thomas, Jr., 29, of St. Croix, pleaded guilty before U.S. Magistrate Judge George Cannon, Jr., to escape from custody, United States Attorney Gretchen C.F. Shappert announced. Sentencing is scheduled for July 18, 2019.
According to the plea agreement filed with the court on March 13, 2018, the defendant was convicted of federal and local charges, including felon in possession of a firearm, unauthorized possession of a firearm and reckless endangerment in the first degree in the District Court of the Virgin Islands, St. Croix Division. Upon his conviction, the District Court Judge remanded the defendant into custody pending sentencing. The Marshal Service transported the defendant to the Golden Grove Adult Correctional Facility, where federal prisoners are detained pursuant to an agreement with the Attorney General of the United States. On March 15, 2018, the defendant escaped from Golden Grove. He was located by law enforcement agents in Guayanilla, Puerto Rico on April 7, 2018 and was taken into custody.
Thomas faces a term of imprisonment of not more than five years and a fine of not more than $250,000 on his current charges. He is currently serving a twenty-three year federal sentence for his previous federal convictions.
This case was investigated by the United States Marshal Service. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Springfield Man Sentenced to 15 Years for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for drug trafficking and illegally possessing firearms.
Steven S. Price, 31, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court ordered this federal sentence to be served consecutively to an unrelated state conviction.
On Nov. 8, 2018, Price pleaded guilty to possessing methamphetamine with the intent to distribute and to possessing firearms in furtherance of a drug-trafficking crime.
On Jan. 17, 2018, Springfield police officers executed a search warrant at Price’s residence after receiving information that he was distributing large quantities of methamphetamine. They found seven ounces (approximately 198 grams) of methamphetamine and $6,202 inside a backpack on the floor next to where Price was sitting. Price also had $910 in the pocket of the backpack. Officers also searched Price’s vehicle, a 2000 GMC Sierra, and found a Smith and Wesson .40-caliber pistol, a Beretta .380-caliber pistol, and 49 ounces (approximately 1.389 kilograms) of methamphetamine behind the driver’s door panel.
According to court documents, Price has accumulated over 20 criminal convictions since his involvement with the criminal justice system began in 2005. Price has been convicted several times for possessing controlled substances, as well as stealing, passing a bad check, possession of marijuana, possession of narcotic paraphernalia, and numerous traffic offenses. While on supervision for his various offenses, Price accumulated over 40 violations, including one for possession of contraband while incarcerated.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
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.Shelby Township Resident Sentenced for Tax EvasionRead the Press Release
A Shelby Township resident will spend 14 months in prison for tax evasion and pay restitution and a $20,000 fine, U.S. Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service ‐ Criminal Investigation.
The defendant, Mersed Bebanic, 35, owned and operated three businesses, including Century Trucking Inc, Century Trucking Services LLC, and Century Innovations. Bebanic was required to file personal income tax returns for tax years 2011 through 2014 and had a duty to report an accurate net profit of his business on Form 1120S of his U.S. Income Tax Return for S Corporation and to pay any income tax due. Instead, in April 2014, Bebanic prepared and filed a Form 1040 Individual Income Tax Return with the IRS for the 2013 tax year and underreported his total income. Bebanic reported his taxable 2013 income as $34,073.00 and the total taxes on his income as $10,790.00 when Bebanic knew his total income for 2013 was substantially higher. As a result, the tax due and owing on his income for 2013 was also substantially higher, totaling $281,368.00.
Factoring in penalties, the loss associated with Bebanic’s tax evasion scheme from 2011 through 2014 totaled $1,224,461. Bebanic agreed to pay the total amount of his restitution by applying funds seized from his home during the execution of a search warrant in August 2016.
Bebanic filed a false 2013 individual income tax return knowing that the total income and tax due reported on his 2013 return were false. Bebanic admitted in court he met with his accountant in April of 2014 and provided information that overstated his business expenses, therefore, understating his profit. The inaccurate profit transferred to his personal income tax return. Despite knowing the information was not accurate, Bebanic signed and caused a false return.
Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation, stated, “Mr. Bebanic deliberately underreported business income to evade a true assessment of tax due and owed to the U.S. Treasury; however, Mr. Bebanic’s actions could not escape the attention of IRS-CI and he’ll no longer be able to cheat the American taxpayers.”
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation.