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1 April 2019
Plant City Man Sentenced to Five Years for Jacksonville ArsonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Pedro Sanchez (35, Plant City) to five years in federal prison for arson. The court also ordered Sanchez to pay $15,000 in restitution.
Sanchez was found guilty on January 3, 2019, following a bench trial.
According to court documents, on January 10, 2018, Sanchez set fire to a house located at 8579 Lamanto Avenue North in Jacksonville. The house belonged to his employer, and the employer had assigned Sanchez to renovate the house and prepare it for sale. Eyewitnesses observed Sanchez walking away from the house after it had erupted into flames. Sanchez later admitted to law enforcement that he had set the house on fire.
This case was investigated by the Florida Bureau of Fire, Arson, and Explosives Investigations, the Jacksonville Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Ashley Washington and Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Pittsburgh Man Prepared False Tax Returns for FilersRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County has pleaded guilty in federal court on charges of aiding or assisting in the preparation or filing of false federal income tax returns, United States Attorney Scott W. Brady announced today.
Eduardo Cardona, 39, of Pittsburgh, PA pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Cardona prepared false federal income tax returns for other persons that included false Schedule C information, and which requested a false refund for the tax filer.
Judge Fischer scheduled the sentencing for September 6, 2019 at 11:30 a.m. The law provides for a total sentence of three years’ imprisonment, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that lead to the prosecution of Eduardo Cardona.
Phoenix Man Moved to Kansas City, Kan. to Run a Drug HouseRead the Press Release
KANSAS CITY, KAN. – A Phoenix man who moved to Kansas City, Kan., to run a drug house was sentenced today to 21 years in federal prison, U.S. Attorney Stephen McAllister said.
Jose A. Badilla, 35, pleaded guilty to two counts of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute heroin and one count of possession of firearms in furtherance of drug trafficking.
In his plea, Badilla admitted that when investigators served a search warrant at 2812 N. 51st Street in Kansas City they found more than six pounds of heroin and two guns, including a .45 caliber pistol and a Panther Arms model AR-15 rifle.
Investigators learned Badilla moved to Kansas City from Phoenix in August 2017 and rented a house for the purpose of storing and distributing drugs. He was paid $2,000 to $2,500 every other week to keep the drugs at his residence. He said the drugs he stored were shipped from Mexico to Kansas City.
McAllister commended the Kansas Bureau of Investigation and Assistant U.S. Attorney David Zabel for their work on the case.
Pennsylvania Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Jason Girven, 37, of Sugar Run, Pennsylvania, who was convicted of attempted receipt of child pornography, was sentenced to serve 70 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that between June 2017 and July 31, 2018, the defendant contacted an undercover New York State Police Investigator posing as a 13-year-old minor female using an online social networking application. Girven and the agent engaged in conversations, some of which were sexual in nature. During this time period, the defendant received child pornography.
On July 31, 2018, the defendant traveled to Horseheads, NY to meet who he believed was the 13-year-old minor female.The sentencing is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Pella Man Accused of Defrauding InvestorsRead the Press Release
Mark Alan Blankespoor is accused of orchestrating multi-million dollar Ponzi-like scheme
DES MOINES, IA – On March 26, 2019, Mark Alan Blankespoor, of Pella, Iowa, was charged with twelve counts of mail fraud and twelve counts of wire fraud announced United States Attorney Marc Krickbaum.
According to the Indictment, Blankespoor was a health coach and consultant in Pella. He represented to others he was involved in developing medically-oriented gyms and licensed the program to fitness clinics across the United States. From at least May 2013 and continuing through at least January 2019, Blankespoor represented to investors they had an opportunity to make money by investing in the medically-oriented gym concept. At least 150 investors provided Blankespoor with approximately $15 million in investment funds. The indictment alleges Blankespoor used the investors’ money for unauthorized purposes that were not for the benefit of the affected investors. Blankespoor used the investor money, unbeknownst to them, for his personal expenses and paying other investors, for losses to victims of over $6.5 million.
Blankespoor has a trial date of June 3, 2019, before United States District Court Judge Rebecca Goodgame Ebinger at the Des Moines Federal Courthouse. Mail and wire fraud are punishable by a maximum prison term of twenty years and a maximum fine of $250,000.
The public is reminded that an indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.The Federal Bureau of Investigation investigated this matter. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Passaic County, New Jersey, Man Charged with Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man appeared in Newark federal court today on a charge of distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Vaughn Tiedeman, 46, of West Milford, New Jersey, is charged by complaint with one count of distributing child pornography. He made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was remanded without bail.
According to documents filed in this case and statements made in court:
Between July 2018 and January 2019, Tiedeman distributed at least 50 videos and 100 images depicting the sexual abuse of children via the BitTorrent peer-to-peer network.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations (HSI), Newark Field Office, under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to the charges. He also thanked the West Milford Police Department, the Passaic County Prosecutor’s Office, and the U.S. Postal Inspection Service for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Operation Saigon Sunset Update: Ohio Man Sentenced to Prison in Connection with Role in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – An Ohio man caught with heroin in August 2017 was sentenced today to 24 months in prison for his role in a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Eric Brown, also known as “Eddie,” 47, previously pled guilty to an indictment charging him with conspiracy to distribute heroin.
“It’s been almost a year since we indicted the defendants in Operation Saigon Sunset,” said United States Attorney Mike Stuart. “No revolving door. All of the defendants have been convicted and are in the process of being sentenced. Sentences well deserved.”
Brown admitted that he worked with Willie Peterson, also known as “Chill,” and Manget Peterson, also known as “Money,” to distribute heroin in Huntington, West Virginia. Specifically, he admitted that he distributed heroin from the Ramada Inn Motel in Huntington, West Virginia in August 2017. Officers executed a search warrant on the motel room and seized approximately 35 grams of heroin.
This investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Officials from More Than a Dozen Agencies across Western Virginia Announce Results of Operation Triple BeamRead the Press Release
Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen and Acting United States Marshal Brad Sellers were joined by officials from more than a dozen law enforcement agencies throughout the Roanoke Valley today in announcing the results of Operation Triple Beam, an intensive law enforcement operation that recently came to a successful conclusion.
Operation Triple Beam brought together federal, state, and local law enforcement partners in an effort to reduce crime in the Roanoke area by identifying and arresting violent fugitives, targeting unlawful gun possession and narcotics trafficking, and collecting intelligence to allow for the systematic removal of individuals who have committed and are committing crimes in the city of Roanoke.
“Over the past two months, federal, state, and local law enforcement agencies in the Roanoke Valley worked collaboratively to apprehend wanted fugitives and target individuals engaged in drug trafficking and potentially violent activities,” U.S. Attorney Cullen stated today. “The results of Operation Triple Beam speak for themselves—over 200 fugitives were arrested and nearly 50 guns and half a million dollars of illegal narcotics were taken off the streets. I am grateful for the leadership of Marshal Sellers and his team and the commitment of our numerous federal, state, and local partners in this critical public-safety initiative.”
“Operation Triple Beam was a unified event, within the Roanoke valley law enforcement community, aimed at reducing those elements that contribute to violent crime rates,” said Acting U.S. Marshal Sellers. “Our success is directly attributable to the cohesive support of our area’s law enforcement agencies and the Prosecution teams serving those communities. This force-multiplier, team focused, event allowed for greater emphasis towards the common goal of making our communities safer; which I believe we accomplished.”
“We thank all of our law enforcement partners, with whom ATF has worked to ensure justice for the victims, their families and the communities adversely affected by the thoughtless and selfish actions of those criminals in our streets,” stated Ashan Benedict, Special Agent in Charge of the ATF Washington Field Division. “Today, and every day, ATF is committed to working with our partners to reduce violent crime and secure the safety of our communities.”
“The strong working relationships that have existed for years among the local, state, and federal law enforcement agencies in the Roanoke Valley made it much easier for the agencies to work together effectively during this operation,” said Assistant Chief Chuck Mason of the Roanoke County Police Department.
Between January 2019 and March 2019, Operation Triple Beam made 209 arrests, seized 49 firearms, seized narcotics with a street value of $497,340, and seized $79,821 in currency. In addition to the arrests and seizures, officers engaged in Triple Beam operations gathered intelligence as part of ongoing investigations. Those arrested are charged with various state and federal crimes, such as distribution of a controlled substance or possession of a firearm in furtherance of a felony, among other charges.
Operation Triple Beam was a success due to the partnership of the following agencies:
U.S. Marshals Service
U.S. Attorney’s Office for the Western District of Virginia
Bureau of Alcohol, Tobacco, Firearms, and Explosives
Drug Enforcement Administration
Federal Bureau of Investigation
Virginia State Police
High Intensity Drug Trafficking Area
Roanoke City Police Department
Roanoke County Police Department
Salem Police Department
Virginia National Guard
Virginia Department of Corrections
Office of the Commonwealth’s Attorney for the City of Roanoke
Office of the Commonwealth’s Attorney for the County of Roanoke
Office of the Commonwealth’s Attorney for Salem
North Suburban Man Guilty of Enticing Underage Girls into SexRead the Press Release
CHICAGO — A north suburban man pleaded guilty today to federal criminal charges for enticing underage girls to engage in sex acts with him.
CASEY IRELAND, 36, of Antioch, pleaded guilty to one count of enticement of a minor to engage in criminal sexual activity, and one count of attempted enticement of a minor to engage in criminal sexual activity. Each count carries a mandatory minimum sentence of ten years in prison, and a maximum sentence of life in prison. U.S. District Judge Rebecca R. Pallmeyer set sentencing for June 24, 2019, at 11:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Leo Lamont, Special Agent-in-Charge of the Naval Criminal Investigative Service, Resident Agency Great Lakes. Valuable assistance was provided by the Antioch Police Department and law enforcement authorities in Wisconsin. The government is represented by Assistant U.S. Attorney A.J. Dixon.
Ireland admitted in a plea agreement that in the spring of 2017 he had sex with two 15-year-old girls from Wisconsin. Ireland began communicating with the girls via online messaging applications.
On May 18, 2017, and June 1, 2017, Ireland drove to Wisconsin to pick up the first victim at her high school, and then drove her back to his home in Antioch to engage in sex acts, the plea agreement states. On May 31, 2017, Ireland arranged to pick up the second victim at a park near her home in Wisconsin, and then drove her to his home to engage in sex acts, the plea agreement states.
After the second victim informed law enforcement about her encounter with Ireland, authorities took control of her messaging account and reestablished communication with him. During subsequent messages, Ireland and law enforcement – posing as the victim – arranged for Ireland to pick up the victim at the same park near her home to engage in another sexual encounter. When Ireland drove to the park on June 7, 2017, he was arrested.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
New Haven Property Owners Who Illegally Removed Asbestos are SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Tyler C. Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in New England, announced that REZART RAKAJ, 35, of Ansonia, and KLITON RAKAJ, 39, of Monroe, were sentenced today in New Haven federal court for offenses related to the illegal and dangerous removal of asbestos at a New Haven property they were renovating in 2015. U.S. District Judge Janet Bond Arterton sentenced each defendant to one year of probation, a fine of $9,500, and 50 hours of community service.
According to court documents and statements made in court, in November 2015, Rezart Kliton Rakaj, who are brothers, and another family member purchased a commercial property located at 206-220 Wallace Street in New Haven. Prior to purchasing the property, the realtor informed the purchasers that the property contained asbestos, and that a prior potential purchaser had already obtained a bid of approximately $117,000 for the legal asbestos abatement of the property. Shortly after the purchase was completed, the defendants chose not to engage a hazardous materials firm to perform lawful asbestos abatement and instead employed workers who spent multiple days demolishing portions of the property, ripping out piping, breaking tiles, and conducting other renovation and construction activities, including the removal of significant quantities of friable asbestos.
On November 20, 2015, inspectors from the City of New Haven Health Department, acting on an anonymous complaint, discovered the illegal asbestos removal project at 206-220 Wallace Street. The inspection revealed multiple instances of illegal removal of asbestos containing “air cell” pipe wrap and asbestos-containing “mag block” tank and boiler insulation, both of which contain significant quantities of dangerous, friable asbestos. Inspectors observed workers removing asbestos-containing material and throwing it to the floor. The workers performed no wetting, used no negative air machines to create the required vacuum effect within workspaces and set up no critical barriers or protective sheeting to guard against the release of dangerous asbestos fibers into the environment. Though the workers wore dust masks and suits, the masks were not designed for use in asbestos abatement and failed to provide protection against asbestos fibers. Similarly, because the suits were worn repeatedly over the course of days and not decontaminated and disposed of after use, they did not protect the workers against exposure. Inspectors also observed and photographed 100-150 standard garbage bags filled with suspected asbestos-containing material.
“These defendants recklessly cut corners and endangered the lives of their workers,” said U.S. Attorney Durham. “The U.S. Attorney’s Office is committing to prosecuting all who deliberately harm the environment and risk public health in order to save money.”
“The illegal removal of asbestos insulation and the associated removal of scrap pipe and boilers from old buildings continues to be a problem throughout the Northeast,” said EPS-CID Special Agent in Charge Amon. “Inhalation of asbestos fibers can result in lung cancer and it therefore poses significant health risks to all exposed. EPA will continue to hold accountable those who commit such offenses.”
On November 16, 2018, Rezart and Kliton Rakaj each pleaded guilty to one count of illegal asbestos removal in violation of the Clean Air Act.
In addition to the sentence imposed today, the defendants also face a fine from the Occupational Safety and Health Administration (OSHA).
This investigation is being conducted by the U.S. Environmental Protection Agency, Criminal Investigation Divisio, with the assistance of the City of New Haven Health Department and U.S. Department of Labor, Occupational Safety and Health Administration. The case is being prosecuted by Assistant U.S. Attorneys Elena L. Coronado and Sarala V. Nagala.
Minnesota Man Sentenced to 16 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Terrence Goldberg, 35, of Brook Park, Minnesota, was sentenced today to 16 years in prison, to be followed by 15 years of supervised release for two counts of receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, investigators in Rochester, New York detected Goldberg sharing child pornography files in 2016 from a location at which a children’s camp operated in Madera County, California. When agents located Goldberg in North Fork, California, on July 11, 2016, he was actively downloading child pornography files outside of a church. Goldberg admitted that he had been downloading child pornography and consented to a search of electronic devices that he had been using. He then relocated to Minnesota, and investigators with FBI offices in Minnesota and Wisconsin opened their own investigations after they detected Goldberg sharing child pornography files from October 2016 through May 2017. As part of those investigations, a search of Goldberg’s residence was conducted on May 26, 2017, and he was arrested. A magistrate judge in Minnesota ordered Goldberg detained and returned to California where an indictment had been filed on June 1, 2017.
A restitution hearing has been set before U.S. District Judge Dale A. Drozd on June 24.
This case is the product of an investigation by the FBI offices in Rochester, New York; Minneapolis, Minnesota; La Crosse, Wisconsin; and Fresno, California with assistance from the Madera County Sheriff’s Office. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Michigan man sentenced for oxycodone distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sean Miller Phillips, Jr., of Eastpointe, Michigan, was sentenced today to 18 months incarceration for oxycodone distribution, United States Attorney Bill Powell announced.
Phillips, age 26, pled guilty to one count of “Aiding and Abetting Distribution of Oxycodone” in November 2018. Phillips admitted to selling oxycodone in March 2017 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug 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.
Senior U.S. District Judge Irene M. Keeley presided.
Michigan man admits to drug distributionRead the Press Release
ELKINS, WEST VIRGINIA – Michael Christopher Morgan, of Detroit, Michigan, has admitted to his role in a heroin, cocaine, and methamphetamine distribution operation in Randolph County, United States Attorney Bill Powell announced.
Morgan, also known as “Deon” and “D,” age 36, pled guilty to one count of “Conspiracy to Distribute Heroin, Cocaine Base, and Methamphetamine.” Morgan admitted to working with others to distribute heroin, “crack” cocaine, and methamphetamine in Randolph County from March 2016 to March 2017.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force 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.
U.S. Magistrate Judge Michael John Aloi presided.
Massachusetts Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Walker Manuel Moreta, 32, of Lawrence, Massachusetts, pleaded guilty to participating in a conspiracy to distribute, and to possess with intent to distribute, fentanyl.
According to court documents and statements made in court, between at least January of 2017 through July of 2017, Moreta, with the assistance of others, sold quantities of fentanyl to multiple individuals, including customers from New Hampshire. Moreta and his co-conspirators often operated out of a location on Water Street in Lawrence, Massachusetts. As part of an investigation of Moreta, a cooperating individual purchased over 100 grams of fentanyl from Moreta between May and June of 2017. On July 6, 2017, Moreta was arrested and had 19 grams of fentanyl on his person.
Moreta is scheduled to be sentenced on July 29, 2019.
Two co-conspirators, Miguel Arias-Velasquez and Miguel Vasquez, previously pleaded guilty. Arias-Velasquez was sentenced to serve 48 months in prison. Vasquez is awaiting sentencing.
“Traffickers of fentanyl and heroin continue to cause enormous damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “We are working tirelessly alongside our law enforcement partners to identify, prosecute, and incarcerate those who are responsible for the distribution of these deadly substances.”
This matter was investigated by the DEA, with assistance from the Massachusetts State Police, the United States Marshals Service, the New Hampshire State Police, the Lawrence Police Department, with assistance from the Portsmouth Police Department, the Dover Police Department, and the Rockingham County Attorney’s Office. The case is being prosecuted by First Assistant U.S. Attorney John J. Farley.
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MEDIA ADVISORY: United States Attorney Mike Stuart and Law Enforcement Partners to Hold Press ConferenceRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart, Huntington Police Chief Hank Dial, Appalachia HIDTA Deputy Director Kenny Burner and other law enforcement partners will hold a press conference tomorrow, Tuesday, April 2, at 1:00p.m., to announce a new law enforcement collaboration in Huntington.
Who: United States Attorney Mike Stuart
Chief Hank Dial, Huntington Police Department
Deputy Director Kenny Burner, Appalachia HIDTA
RAC Adam Black, ATF
SAC Chris Evans, DEA
Chief Mike Coffey, Barboursville Police Department
Corky Hammers, Cabell County Prosecuting Attorney
What: Press Conference
Where: Huntington Police Department
675 10th Street
Huntington, WV
When: Tuesday, April 2 @ 1:00pm
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Liberian Man Convicted of Making False StatementsRead the Press Release
ALBANY, NEW YORK –Alvin Cole, age 43, a Liberian citizen residing in Philadelphia, Pennsylvania, was convicted on March 28, following a 4-day jury trial, of making a false statement and making a false claim of United States citizenship.
The announcement was made by United States Attorney Grant C. Jaquith and Steven Bronson, Area Port Director, United States Customs and Border Protection (CBP).
Trial evidence showed that on October 16, 2018, Cole was denied admission into Canada at the Saint-Bernard-de-LaColle, Quebec Port of Entry. Due to the Canadian refusal, Cole was required to report to the Champlain Port of Entry in New York. During immigration inspection at the Champlain Port of Entry, Cole stated that he was a United States citizen born in Philadelphia. But Cole is a citizen of Liberia, born in Liberia, who entered the United States in 1991 on a tourist visa and never left. Cole has resided in the United States since 1991 and he is the subject of an unexecuted removal order from June 2013.
As a result of his conviction, Cole faces up to 5 years in prison and a fine of up to $250,000, when he is sentenced by United States District Judge Mae A. D ’Agostino on July 25, 2019. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Cole has been in custody since his arrest on October 16, 2018.
This case was investigated by CBP and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Lehigh Valley Cocaine and Methamphetamine Trafficker Convicted at TrialRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Jerome Lamont Duggan, 46, of Bethlehem, Pennsylvania, was convicted at trial of one count of conspiracy to distribute 500 grams or more of methamphetamine; one count of possession with intent to distribute 50 grams or more of methamphetamine; one count of possession with intent to distribute 500 grams or more of cocaine; one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”); and one count of possession with intent to distribute marijuana. Sentencing will be held before United States District Judge Joseph F. Leeson, Jr.
During an investigation into the drug trafficking activities of Larry Roger Beitler, Jr. (charged elsewhere), law enforcement determined through wiretap interceptions that Beitler had purchased quantities of methamphetamine from the defendant. Further evidence, including additional wiretapped phone calls, intercepted postal packages, and surveillance, established that Duggan was an active drug trafficker between March 2016 and May 5, 2016, and further established the location of his stash house of drugs.
“The Lehigh Valley is safer now that this defendant has been brought to justice. Stopping the trafficking of deadly drugs is a top priority of my Office and of the Department of Justice, and successful prosecutions of cases like this remain a key part of our deterrence strategy,” said U.S. Attorney McSwain. “My Office remains committed to working with our law enforcement partners to find, convict, and imprison the criminals who flood our streets with poisonous drugs.”
This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Kishan Nair.
Law Enforcement Officers Join Students for a Day of LearningRead the Press Release
PENSACOLA, FLORIDA – The United States Attorney’s Office for the Northern District of Florida, the Pensacola Police Department, and West Florida High School will present a BLAST Program event on Wednesday to approximately 50 students.
Event: BLAST Program
Location: Sanders Beach-Corinne Jones Resource Center
913 South I Street
Pensacola, FL 32502Date: Wednesday, April 3, 2019
Time: 9:15 a.m. – 1:30 p.m. CDT
- 9:15 – 9:45 a.m. Opening Remarks
- 10:00 a.m. – 12:00 p.m. Rotating Group Breakouts (40 minutes each)
- 12:10 – 12:30 p.m. “Returning from Prison” Presentation
- 12:30 – 1:30 p.m. Lunch
Press: Please RSVP to Amy Alexander at [email protected] if you plan to attend.
The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with law enforcement officers in a familiar setting. Law enforcement officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers. (Students have media permissions.)
Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing. This session is open to the media, and videography and photography is permitted.
Domestic Violence: Students will participate in a scenario in which law enforcement officers respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to law enforcement. This session is open to the media, and videography and photography is permitted.
Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop. This session is open to the media, and videography and photography is permitted.
Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation. This session is closed to the media. Reporters may try the simulator equipment after the event ends.
Participating agencies include:
- United States Attorney’s Office, Northern District of Florida
- Pensacola Police Department
- FAMU Police Department
- Florida Highway Patrol
- Bureau of Alcohol, Tobacco, Firearms & Explosives
- Drug Enforcement Administration
- Naval Criminal Investigative Service
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Lake Jackson Area Attorney Sentenced in Scheme to Commit Bank FraudRead the Press Release
HOUSTON ‐A 65-year-old resident of Lake Jackson has been ordered to federal prison for his role in a mortgage fraud scheme, announced U.S. Attorney Ryan K. Patrick. Kirk Lawrence Brannan pleaded guilty to bank fraud April 30, 2018, admitting he conspired with others from 2005 to 2009 to execute a scheme to defraud Wells Fargo Bank and other lenders.
Today, Chief U.S. District Judge Lee Rosenthal handed him a 36-month sentence to be immediately followed by three years of supervised release. At the hearing, the court held that, in committing the crime, Brannan had used sophisticated means and had employed his special skills as an attorney and real estate agent. Judge Rosenthal noted that Brannan had created false HUD-1 settlement forms and title documents that purported to show the sale of three of his properties to his children at grossly inflated prices. These HUD-1 forms then became the three comparable sales that appraisers relied upon in over-valuing the rest of Brannan’s beach home properties which Brannan then sold through the fraud scheme at inflated prices.
In imposing the sentence, Judge Rosenthal balanced Brannan’s honorable military service and other aspects of what, up to the time of the fraud, had been an exemplary life, with the tremendous damage mortgage fraud had done to the U.S. financial system and economy and the fact that Brannan had been a knowing and willing participant in such a scheme. She also pointed out that some individuals much less sophisticated than Brannan had suffered severe economic harm as a result of Brannan’s scheme.
He was further ordered to pay $5,317,350 in restitution. A money judgement was previously entered in the amount of $2,401,368.
Brannan sold 10 beach homes in the Freeport/Surfside area to “straw buyers” at exorbitant prices. Other co-conspirators recruited straw buyers who created loan applications with misrepresentations that lenders relied upon in deciding to make the mortgage loans. The applications contained misrepresentations of the buyer’s address, employer, income and expenses. The applications also suggested the buyers were much better credit risks than they actually were. Brannan admitted he paid kickbacks to co-conspirators each time one of the beach homes was sold to a straw buyer.
The beach properties were sold at two to three times the appraised values. The mortgage lenders, including Wells Fargo Bank, were induced to lend the inflated amounts for the purchases through flawed or fraudulent appraisals which were based on comparisons Brannan manufactured to further the scheme.
Brannan created settlement statements that suggested he sold three of his properties to his children at exorbitant prices. Appraisers relied upon these “sales” as comparable sales in appraising Brannan’s remaining properties sold to straw buyers. As a result of the fraudulent appraisals, he and his co-conspirators were able to inflate the values for his properties and deceive the lenders into approving home loans at those exorbitant amounts.
All of the straw buyers defaulted on the mortgages, and all 10 of the beach properties ended up in foreclosure.
The fraudulent mortgage loan scheme resulted in a loss of $5,317,350 to Wells Fargo Bank and the other lenders. Brannan paid $2,401,368 to his co-conspirators as part of the scheme.
Previously released on bond, Brannan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Co-conspirators Chucoboie Lanier, 42, David Lee Morris, 56, and Derwin Jerome Blackshear, 52, all of Houston, previously pleaded guilty for their roles in the scheme. Lanier received a sentenced of 36 months while Morris was ordered to serve a 42-month prison term. Blackshear is set for sentencing April 9.
The Texas Department of Public Safety and the FBI conducted the investigation. Assistant U.S. Attorneys Robert Johnson and Michael Day are prosecuting the case.
Justice Department Settles Lawsuit Against Glendale, Arizona, for Violating the USERRA Rights of Arizona Air National Guard MemberRead the Press Release
The Department of Justice today announced that a settlement has been reached with the City of Glendale, Arizona, resolving a lawsuit filed by the Department of Justice under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) on behalf of Arizona Air National Guard Member Rebecca Cruz.
According to the complaint filed in the United States District Court for the District of Arizona, the City of Glendale fired Captain Cruz because she needed to miss work to attend military training.
To resolve this case, the City paid Cruz the back wages and retirement benefits that she lost because of her termination.
“Our nation depends on Captain Cruz and other members of our National Guard. Our laws preserve their civilian jobs when they are called to service,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice ensures that these laws are followed.”
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of National Guard servicemembers upon their return to civilian life.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on DOL’s website at www.dol.gov/vets/programs/userra/main.htm.
Justice Department Settles Immigration-Related Discrimination Claim Against Housing Authority in TexasRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with the Housing Authority of Victoria, Texas (Housing Authority). The settlement resolves a complaint that the Housing Authority discriminated against a lawful permanent resident when it rejected his valid employment documents and fired him in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA). While it is illegal under the INA for employers to knowingly hire individuals without work authorization, it is also illegal under that law for employers to discriminate against lawful permanent residents, among other work-authorized immigrants, in the hiring process.
“Employers should not reject valid employment documents because of a lawful permanent resident’s citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with the Housing Authority to ensure its compliance with the Immigration and Nationality Act.”
The Department’s investigation, which was initiated based upon the lawful permanent resident’s complaint, concluded that the Housing Authority improperly requested that the worker present more documents than necessary to prove his ability to work, thereby rejecting the identification and unrestricted Social Security card he already presented, based on his citizenship status. These actions constitute unfair documentary practices in violation of the INA.
The Department’s investigation also concluded that the Housing Authority improperly terminated the worker based on his citizenship status when he could not comply with its discriminatory document request. Under the INA, workers are allowed to choose from lists of acceptable documents to prove that they are authorized to work, and employers cannot reject valid documents or specify which documents the workers should present because of their citizenship. The INA also prohibits employers from firing U.S. citizens and those who are lawfully in the country and authorized to work based on their citizenship, immigration status, or national origin.
Under the settlement, the Housing Authority will offer to rehire the injured worker, provide him back wages, pay civil penalties to the United States, train employees on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring requirements.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination against individuals who are authorized to work based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid unlawful discrimination when verifying that workers are eligible to work is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Jury finds Warren man guilty of selling heroin that resulted in fatal overdose of womanRead the Press Release
A jury found a Warren man guilty of selling heroin that resulted in the overdose death of a woman, as well as other crimes.
John G. Simer II, 39, was found guilty of all 13 countss he faced, including: distribution of heroin that resulted in death, possession with intent to distribute heroin, possession with intent to distribute cocaine, being a felon in possession of firearms, using firearms in furtherance of drug trafficking and being a felon in possession of body armor.
Simer is scheduled to be sentenced July 17.
Simer sold heroin on March 20, 2017. A Warren woman ingested the heroin and died, according to court documents and trial testimony.
Simer possessed heroin and cocaine on April 19, 2017. He also possessed a Smith & Wesson .40-caliber pistol, 58 rounds of ammunition and body armor on that day, despite previous convictions for aggravated robbery and firearms offenses that made it illegal for him to have a firearm or body armor, according to court documents and trial testimony.
“Opioids and other drugs have caused a staggering amount of pain and death across our state, particularly in Trumbull County,” said U.S. Attorney Justin E. Herdman. “We will continue to seek long prison sentences for people who sell heroin and profit off this epidemic.”
Warren Police Chief Eric Merkel said: "I hope this case serves as a cautionary tale to anyone who thinks their criminal liability ends after they have sold their drugs. We will continue to investigate these overdose deaths and bring those responsible to justice. I would like to thank Detective Melanie Gambill and the Warren Street Crimes Unit for all of their hard work on this case."
This case was investigated by the Warren Police Department’s Street Crimes and prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Segev Phillips.
Jefferson County pharmacist ordered to pay more than $335,000 for filling fake prescriptionsRead the Press Release
WHEELING, WEST VIRGINIA – David M. Wasanyi, a former Martinsburg and Charles Town, West Virginia pharmacist, was ordered to pay $335,670 in civil penalties for filling prescriptions in violation of the Comprehensive Drug Abuse Prevention and Control Act, United States Attorney Bill Powell announced.
Wasanyi, age 50, was a pharmacist at City Pharmacy in Martinsburg and at City Pharmacy in Charles Town, West Virginia. From 2010 to 2015, City Pharmacy filled 1,181 invalid prescriptions for controlled substances written by physicians in Florida, Georgia, Tennessee, and Virginia for patients in Alabama, Florida, Georgia, Kentucky, Maryland, Ohio, Tennessee and Virginia. All of the purportedly fraudulent patients traveled great distances to have the illegitimate prescriptions filled, most by Wasanyi.
The civil judgment against Wasanyi in the amount of $335,670 is for his estimated income from those illegitimate prescriptions, many of which were written for oxycodone.
Assistant U.S. Attorneys Greg Kinskey and Stephanie Savino litigated the case on behalf of the government. The Drug Enforcement Administration investigated.
U.S. District Judge John Preston Bailey presided.
Indictment Unsealed Charging Mangum Pharmacist with over $1 Million in Health Care FraudRead the Press Release
OKLAHOMA CITY – A federal indictment has been unsealed charging JEFFREY SCOTT TERRY, 37, of Mangum, Oklahoma, with forty counts of using his pharmacy to defraud Medicare and Medicaid, announced First Assistant U.S. Attorney Robert J. Troester and Oklahoma Attorney General Mike Hunter.
"Protecting the health care system from fraud is critical to the stability and viability of the Medicare and Medicaid programs," said Mr. Troester. "We are proud to have an active partnership with Attorney General Mike Hunter and his office where we work collaboratively together to fight health care fraud."
"The ability to combine state and federal resources is one of our best assets when fighting fraud and corruption," Attorney General Hunter said. "I appreciate Mr. Troester and his team for continuing to collaborate with us in cracking down on healthcare fraud in the state and for helping us hold perpetrators accountable for these types of crimes. We must do everything we can to protect the Medicaid system, which serves Oklahomans in need."
According to an indictment filed on March 5 and unsealed on March 29, Terry was a licensed pharmacist who began operating Bratton Drug at 109 S. Oklahoma in Mangum in August 2015. Both the Oklahoma Health Care Authority—which administers Medicaid under the name SoonerCare—and Medicare reimbursed Bratton Drug for prescriptions and pharmaceutical products it dispensed.
The indictment alleges that from August 2015 to September 2018, Terry submitted false claims to SoonerCare and Medicare Part D for drugs that had not actually been prescribed or ever dispensed to patients. These false claims are alleged to have caused Terry to receive $338,481.81 from SoonerCare and $753,334.13 through the Medicare Part D program, for a total of $1,091,815.94 in fraudulent proceeds.
Terry appeared for his arraignment on March 29 before United States Magistrate Judge Bernard M. Jones. He was released pending trial, which is scheduled to start on May 14, 2019.
If convicted, Terry faces up to ten years in prison on each count, in addition to a fine of up to $250,000. He would also be subject to up to three years of supervised release after imprisonment and would be required to pay restitution to Oklahoma and the federal government for losses sustained by SoonerCare and Medicare. Finally, the indictment seeks forfeiture of proceeds of these crimes, including real property at 321 S. Robinson in Mangum, a tract of land in Greer County, and a 2016 Dodge Challenger.
To maximize recovery of fraud proceeds, the United States also moved for and obtained a temporary restraining order that prevents Terry from transferring assets and spending money out of as many as eight financial accounts he controls. According to court filings unsealed today, Terry commingled fraud proceeds in personal and business accounts and has been rapidly selling, transferring, dissipating, and concealing assets since the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit executed a search warrant in October 2018. Part of that concealment allegedly involves transferring Bratton Drug’s inventory and business to Granite Drug in Granite, Oklahoma, which he also controls.
These charges are the result of an investigation by the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services—Office of Inspector General, including its Office of Audit Services. Assistant Oklahoma Attorney General Lory Dewey, who also serves as a Special Assistant U.S. Attorney, and Assistant U.S. Attorney Amanda Green are prosecuting the case. Assistant U.S. Attorneys Amanda Johnson and Ron Gallegos of the U.S. Attorney’s Office’s Civil Division are handling the request for a temporary restraining order.
The public is reminded that these charges are merely allegations and that Terry is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Indian National Sentenced to More Than Eight Years for Call Center ScamRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Nishitkumar Patel (31, Tampa) to eight years and nine months in federal prison for conspiracy to commit wire fraud and aggravated identity theft, relating to his participation in an India-based call center scam. As part of his sentence, the court also entered a money judgment of $200,000, and ordered Patel to forfeit cash and a 2015 Land Rover that was seized in October 2018.
Patel pleaded guilty on January 9, 2019.
According to court documents, from 2014 through at least 2016, Patel conspired with U.S.-based coconspirators and India-based call centers to extort money from U.S. residents by impersonating IRS officers and misleading victims to believe that they owed money to the IRS and would be arrested and fined if they did not pay their alleged back taxes immediately. The conspirators collected the fraud proceeds by (1) withdrawing cash from prepaid cards purchased and funded by victims; (2) hiring other conspirators (runners) to retrieve money wired by the victims to those runners; and/or (3) hiring runners to open bank accounts into which victims deposited fraud proceeds. The defendants collected the proceeds by providing the runners with the victims’ names, locations, and amounts paid. The runners were directed to retrieve the fraud proceeds in cash and turn the funds over to the defendants, often less a payment to the runner for opening the account or conducting the transaction.
Four others previously pleaded guilty for their roles in the scheme. On March 25, 2019, Alejandro Juarez was sentenced to 15 months in federal prison. Hemalkumar Shah, Sharvil Patel, and Brenda Dozier are currently awaiting sentencing.
“As a proud IRS Special Agent of 20 years, this fraud infuriates me,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigations Tampa Field Office. “We here at IRS CI recognize the heartache and concern these crooks cause innocent people. This is why we are eager to team up with our law enforcement partners to track down these impersonators in whatever corner of the globe they may be hiding in.”
“This terrible scam took advantage of people who wanted to comply with what they thought were proper authorities,” said FDLE’s Tampa Special Agent in Charge Mark Brutnell. “Thank goodness, investigators from several agencies were able to put an end to it and those responsible will no longer be able to mislead innocent people.”
“Over the last several years, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees,” said J. Russell George, Treasury Inspector General for Tax Administration. “Victimizing taxpayers by impersonating IRS employees is a serious crime,” George continued. “TIGTA and our law enforcement partners will continue working to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law. This significant sentencing should serve notice to those who engage in this type of criminal activity that they will be held accountable.”
This case was investigated by the Treasury Inspector General for Tax Administration (TIGTA), the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Greenville Man Sentenced to 10 Years in Federal Prison in Firearms CaseRead the Press Release
RALEIGH - United States Attorney Robert J. Higdon, Jr. announced that today, JUSTIN O’NEAL BARNES, 30, of Greenville was sentenced in United States District Court. The charges stem from the recovery of a firearm in a liquor store in Greenville on October 11, 2017.
U.S. District Judge James C. Dever, III sentenced BARNES to 120 months in prison following his December 18, 2018 conviction by a jury for being a felon in possession of a firearm. On October 11, 2017, Greenville Police Department Officers began searching for BARNES based upon his potential involvement in another incident. A Greenville detective observed BARNES’ vehicle and followed it to the ABC store located at 2305 South Memorial Drive in Greenville, where he observed BARNES enter the store. The detective called for assistance and other officers responded to the scene. In the store, the clerks refused to sell any alcohol to BARNES because he appeared to be under the influence of alcohol. One of the clerks saw the officers outside and mentioned that to BARNES. BARNES then quickly walked to the side of the counter and placed an object in an open box. He then left the store and was detained. The clerks then observed a handgun in the box. Officers recovered a loaded Ruger .45 caliber pistol from the box.
BARNES has prior convictions for possession with intent to sell and deliver cocaine, common law robbery, and felon in possession of a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Greenville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Pitt County Alcoholic Beverage Control Board. Assistant United States Attorney John Bennett is prosecuting the case.
Former South Carolina Resident Pleads Guilty to Charity Fraud Scheme Targeting Marine Corps FamiliesRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that John Shannon Simpson, age 43, of Lee County, Florida, has entered a guilty plea in federal court to Wire Fraud. United States District Judge David C. Norton of Charleston accepted the guilty plea and will impose sentence after he has received and reviewed a presentence report prepared by the United States Probation Office.
Evidence presented to the court established that in May 2014, Simpson founded a charitable organization entitled “Marines and Mickey” and served as the President. The purpose of the charity was to provide funds to selected United States Marines Corps (USMC) service members and their families to defray their costs of visiting the Walt Disney Resorts. The charity was also supposed to provide funds to the families of newly graduated Marines to defray the families’ costs of attending USMC boot camp graduations, including some held at Parris Island, South Carolina, and San Diego, California.
The charity claimed in its promotions and requests for money that 100% of the donations went directly to Marines and their families through the charity’s programs. The charity actively solicited donations on and near the USMC base in Parris Island, South Carolina, and elsewhere. The remainder of monies raised by the charity were a combination of private and corporate donations to the charity, including by USMC recruits and recent boot camp graduates.
While acting as the charity’s President and in support of fundraising for the charity, Simpson falsely represented himself as a retired career Marine with as much as 20 years of service, a retired Master Sergeant, a former Drill Instructor, and a Recon Marine.
In fact, Simpson spent less than five years in the Marine Corps. He entered active duty on June 28, 1993. He was absent without leave (AWOL) from June 10, 1996, to June 19, 1997. The highest rank he achieved prior to going AWOL was Lance Corporal/E-3, and his operational specialty was Basic Disbursing Clerk. Simpson was found guilty at a Special Court Martial for violation of Article 86 (Absence without leave) of the Uniform Code of Military Justice, was reduced in rank to Private/E-1, and was given a Bad-Conduct Discharge, which was effective on May 5, 1998.
By misleading donors and volunteers about his military background, Simpson was able to add credibility to his solicitations for money.
The charity was in operation from May 2014 through 2016, and it received approximately $481,000 in donations during that time period. However, despite Simpson’s claims that 100% of the donations would go to Marines and their families through the charity’s programs, only about $90,000—or about 19% of the donations—were used for charitable purposes. Simpson diverted the remainder of the monies in the charitable accounts, approximately $391,000, for his personal use and enrichment.
Additionally, during 2015 and 2016, Simpson made unauthorized withdrawals from the bank accounts of at least seven active-duty Marines who had recently graduated from boot camp. Simpson convinced them to allow him to make recurring withdrawals from their accounts in nominal amounts to support the charity. Instead, he used their debit card numbers to make unauthorized withdrawals from their accounts in a combined total amount of more than $5,000.
Simpson faces a maximum penalty of 20 years in federal prison and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation and the Naval Criminal Investigative Service. Assistant United States Attorney Dean H. Secor of the Charleston is prosecuting the case.
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Erie County Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
Erie, Pa. - A former resident of Girard, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Michael Robert Heinrich, 68, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that in January 2017 Heinrich took sexually explicit photos of a minor who was four years of age at the time. On February 14, 2017, Heinrich again took sexually explicit photos of that same four-year-old minor and also took a sexually explicit photo of a three-year-old minor. An examination of Heinrich’s computers and cell phone also revealed the presence of numerous other images depicting prepubescent minors engaged in sexually explicit conduct. As part of his plea, Heinrich agreed to a sentence of fifteen (15) years in jail and lifetime supervised release.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for August 5, 2019 at 2:15 p.m. The law provides for a total sentence of 90 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Heinrich on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Heinrich.
Dominican Man Pleads Guilty to Participating in Heroin Distribution ConspiracyRead the Press Release
CONCORD - Geraldo De La Cruz Cabral Pena, 43, of the Dominican Republic, pleaded guilty in federal court on Friday to conspiring to distribute heroin, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from 2013 to 2016, Cabral Pena facilitated an international heroin distribution conspiracy with connections to Colombia, Guatemala, and Mexico. Multi-kilogram loads of heroin were smuggled into the United States from Mexico, and Cabral Pena then facilitated deliveries of the heroin to numerous regional drug trafficking organizations along a route from Texas to Massachusetts. Heroin arriving in Lawrence, Massachusetts would then be distributed by a local drug trafficking organization to sub-distributors in New Hampshire and the rest of northern New England. Cabral Pena also collected payment from the regional drug trafficking organizations through multiple means including bulk cash smuggling. Pena was arrested by Dominican Republic authorities in March 2018 at the request of the United States government, and he was extradited to the United States to face these charges on August 16, 2018.
Cabral Pena is scheduled to be sentenced on June 22, 2019.
“International drug trafficking organizations have brought large quantities of heroin and other drugs into New England, causing untold damage to the citizens of New Hampshire,” said U.S. Attorney Murray. “This case is an example of the law enforcement community’s effort to target the larger distribution networks that have supplied heroin to drug traffickers in the Granite State. We will not be deterred by state or international borders in our efforts to hold drug traffickers responsible for their crimes.”
The case was investigated by the Drug Enforcement Administration; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case is being prosecuted by Assistant U.S. Attorney Jarad E. Hodes.
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Department of Justice to Hold Roundtable on the Antitrust Criminal Penalty Enhancement & Reform ActRead the Press Release
On April 11, 2019, the Department of Justice Antitrust Division will hold a public roundtable to discuss the Antitrust Criminal Penalty Enhancement & Reform Act (ACPERA). ACPERA reduces the civil damages exposure of a company granted leniency under the Antitrust Division’s Leniency Policy if the company provides civil plaintiffs with timely, “satisfactory cooperation.” ACPERA, Section 213(b) & (c), 15 U.S.C. § 1 notes. The Antitrust Division seeks to hear the views of interested stakeholders regarding ACPERA and its impact on the Division’s criminal enforcement efforts.
The ACPERA Roundtable will provide a public forum for the Antitrust Division to engage with the antitrust community and gain insight from judges, attorneys, economists, academics, the business community, and other interested stakeholders on ACPERA. The format of the Roundtable will be a series of panel discussions with featured speakers.
“The Division’s Leniency Policy is critical to the success of our criminal enforcement program. I am proud to have been at the Division when ACPERA was enacted in 2004 and the Antitrust Division looks forward to examining how ACPERA is operating today,” said Assistant Attorney General Makan Delrahim. “The Division values input from those who have experience with ACPERA and other stakeholders who have considered ACPERA’s effects on the self-disclosure of wrongdoing.”
The roundtable will take place from 1-5 p.m., on April 11, 2019, in the Anne K. Bingaman Auditorium & Lecture Hall on the lower level of the Liberty Square Building, 450 Fifth Street, NW, Washington, DC 20530.
In addition, the Antitrust Division is accepting written comments on the efficacy of ACPERA. Interested parties may submit public comments to [email protected] until May 31, 2019. Submitted comments and any submissions from roundtable panelists will be made publicly available on the Antitrust Division’s website.
To register for the event, please email [email protected] with your name, organization, and contact information.
For more information, please see the ACPERA Roundtable webpage or send an email to [email protected].
Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted via email to Jeremy Edwards in the Office of Public Affairs at [email protected]. Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.
Council Bluffs Woman, a Distributor for Mexico-based Drug Trafficking Organization, Sentenced to Imprisonment for Eleven YearsRead the Press Release
United States Attorney Joe Kelly announced that on March 28, 2019, United States District Judge Robert F. Rossiter, Jr., sentenced Ralynn Christine Francisco to a term of imprisonment of 132 months, to be served in the U.S. Bureau of Prisons. Francisco, age 32, of Council Bluffs, Iowa, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, and conspiracy to commit money laundering.
In the summer of 2017, Francisco obtained multi-pound quantities of methamphetamine from codefendant Baltazar Quintero-Rodriguez, a member of a Mexico-based drug trafficking organization, and redistributed it to customers in the local area. Mexican sources supplied Quintero-Rodriguez with the methamphetamine and directed its distribution to others, including Francisco. In addition, investigators determined that Francisco wired drug proceeds totaling $13,634 on at least 15 occasions to recipients in Mexico in furtherance of a money laundering conspiracy.
The case was primarily investigated by the Omaha Field Division of the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations.
Convicted Felon Sentenced to 10 Years in Prison on Firearm ChargeRead the Press Release
PROVIDENCE – A Providence man previously convicted and imprisoned on firearm charges was sentenced in U.S. District Court in Providence today to 10 years in federal prison for possessing a firearm in furtherance of drug trafficking crimes.
Joshua R. Souza, 37, of Providence, was most recently arrested by Providence Police detectives on April 27, 2018, following an investigation into Souza’s drug trafficking activities.
According to information provided to the Court, following controlled purchases of cocaine from Souza, Providence Police detectives executed a court-authorized search warrant at Souza’s residence. Detectives seized loose and packaged cocaine from Souza’s person. From his residence they seized 11.9 grams of cocaine and two firearms: a 12 gauge sawed-off shotgun with an obliterated serial number and a stolen 9mm semi-automatic handgun.
Souza, arrested and detained on Rhode Island state court charges since April 27, 2018, pleaded guilty in federal court on January 14, 2019, to possession of a firearm in furtherance of a drug trafficking crime.
At sentencing today, U.S. District Court Judge John J. McConnell sentenced Souza to 10 years in federal prison to be followed by 3 years supervised release.
Souza’s sentence is announced by United States Attorney Aaron L. Weisman, Providence Police Chief Colonel Hugh T. Clements, Jr., and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady.
According to court records, Souza was previously convicted in Rhode Island state court on firearm, larceny, and breaking and entering charges.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by Providence Police with the assistance of ATF and the ATF Task Force.
The ATF Task Force is comprised of law enforcement agents and officers from ATF, the Providence and Police Pawtucket Police Departments, Rhode Island State Police, and the Rhode Island Department of Corrections.
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Controller Pleads Guilty to Wire Fraud, Tax ChargeRead the Press Release
PROVIDENCE – A controller employed by a Providence based high-technology company that specializes in the optimization of electro-magnetic and automated process equipment pleaded guilty today in federal court to charges that she executed a scheme to defraud the company of more than $550,000 in reimbursements for business related expenses she was not entitled to, and that she failed to pay taxes to the IRS for the funds she fraudulently received.
Appearing before U.S. District Court Chief Judge William E. Smith, Jill Martinho, 43, of Swansea, Mass., pleaded guilty to wire fraud and willfully making a false tax return, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the United States Secret Service Stephen Marks.
According to information presented to the Court, from May 2015 through February 2018, Martinho was authorized to purchase supplies necessary for her company with the use of personal credit cards. Although Martinho was entitled to reimbursements from the company totaling approximately $459,224, based on her fraudulent claims, including the use of fraudulently created card statements, she received approximately $1,017,295 from the company, causing the company a loss of approximately $557,974.
Additionally, Martinho did not report the fraudulently obtained income to the IRS nor did she pay taxes due the IRS.
Martinho had been employed by the company since 2005.
Martinho is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on July 19, 2019. Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; a fine of $250,000 or twice the pecuniary gain or loss from the offense, whichever is greater; and a term of supervised release of 5 years. Willfully making a false tax return is punishable by statutory penalties of up to 3 years imprisonment; a fine of $100,000; and a term of supervised release of 3 years.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI, Internal Revenue Service Criminal Investigation, and the United States Secret Service.
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City Councilman Pleads Guilty to Wire Fraud and Filing A False Tax ReturnRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Adam C. McFadden pleaded guilty to wire fraud and filing a false tax return before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that McFadden was a member of the Rochester City Council, while co-defendant George H. Moses is the former Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA), which provides housing opportunities and services for the Rochester community and a board member of the Rochester Housing Charities (RHC), an entity that was formed and created to advance the purposes of RHA.
Prior to May 12, 2015, McFadden contacted Capital Connection Partners LLC (CCP), an alleged consulting firm in Washington D.C., to discuss RHC hiring CCP to provide RHC with various services. McFadden advised CCP that he would provide most of the services required by RHC as a subcontractor and that he wanted CCP to act merely as a pass through, meaning, he wanted CCP to pay to him most of the funds CCP received from any future contract with Rochester Housing Charities. McFadden discussed this arrangement with co-defendant George Moses.
On May 15, 2015, McFadden emailed CCP a draft of the contract he wanted CCP to enter with RHC along with a draft of the pass-through agreement he wanted to enter into with CCP. On May 28, 2015, McFadden emailed these drafts to George Moses as well.
On June 19, 2015, McFadden created minutes of an RHC board meeting held on May 12, 2015. The minutes falsely stated: that RHC had contacted three vendors by telephone; that a Request for Qualifications was sent to the three vendors; that the three vendors provided bid proposals containing amounts; and that RHC selected CCP as the winning bidder. On July 7, 2015, RHC entered into a one-year $87,500.00 contract with CCP.
On July 8, 2015, the defendant, on behalf of his company, Caesar Development LLC, executed a contract with CCP entitled the Pass Through Funding and Services Agreement, which provided that CCP would pass through 75% of the funds it received from RHC to Caesar Development LLC.
On August 3, 2015, the RHA, on behalf of RHC, wire transferred a first installment payment of $43,750.00 from Rochester to CCP in Washington, D.C. On August 8, 2015, CCP paid $32,812.50 to Caesar Development LLC in Rochester, which represented 75% of the funds CCP received under the terms of its contract with RHC.
On December 18, 2015, McFadden prepared and emailed to CCP inserts which were to be placed on a revised CCP invoice that was to be sent to the RHC. Those inserts falsely alleged that CCP had performed certain services under the contract. Specifically, the inserts falsely alleged or grossly exaggerated that CCP had, among other things, provided the following services: prepared and submitted multiple grants for local funding; researched laundry business development; researched summer and after-school program development for school aged children; provided administrative support to RHC for nine months; and created a partnership with The Roberts Companies to manage cell lease buyout negotiations.
A revised invoice containing the inserts was sent to RHC, and as a result, RHC, on December 24, 2015, transferred the final installment payment totaling $43,750.00 from Rochester to CCP in Washington, D.C. On December 26, 2015, CCP wire transferred $32,812.50 from Washington, D.C. to Caesar Development LLC, which represented 75% of the funds CCP received under the terms of the contract between RHC and CCP.
In addition for the tax years 2015 through 2017, McFadden provided false information on his personal tax returns. McFadden reported false deductions, including personal expenses, on his Schedule C, which falsely reduced his taxable income. For example, McFadden reported rent expense as deductions on each return when in fact he had not paid rent. The reduction in the defendant’s taxable income resulted in the approximate tax loss of $46,865.
“Dishonest and self-indulgent people have no place in elected office at any level of government,” stated U.S. Attorney Kennedy. “Individuals like Mr. McFadden seem to forget that ‘public service’ is not synonymous with ‘public-money self-service.’ This Office will continue to seek out and to bring to justice those public officials who elevate their own personal financial interests above the interests of the public that they serve.”
“Today's plea doesn't mean our work is done, the FBI and our partners remain committed to routing out public corruption in Rochester and throughout the Western New York community,” said Supervisory Special Agent Jeremy Bell. “We ask public officials everywhere to think twice before abusing the community's trust.”
HUD OIG Special Agent-in-Charge Geary stated, “At such a critical time for the Department of Housing and Urban Development, with programs that are vital to the well-being of so many in our communities, it is critical that those entrusted to public service are completely dedicated to those in need. The HUD Office of Inspector General is committed to partnering with Federal prosecutors and fellow law enforcement to aggressively pursue those engaged in activities that harm HUD’s Public Housing programs.”
“Today’s plea illustrates IRS Criminal Investigation’s commitment to holding public officials accountable for undermining the tax laws of the United States and violating public trust”, said Acting Special Agent-in-Charge Jonathan D. Larsen. “The deliberate failure of Mr. McFadden to report and pay taxes on income through the use of fraudulent deductions is a serious matter and cannot be tolerated by the IRS or the public he has a duty to serve.”
Charges remain pending against co-defendant George H. Moses. 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.The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for June 27, 2019, at 3:00 p.m. before Judge Wolford.
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Chevy Chase Man Who Secretly Videotaped Children in His Home Sentenced to 20 Years in Federal Prison for Production and Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Jonathan Mark Oldale, age 55, of Chevy Chase, Maryland, today to 20 years in federal prison, followed by lifetime supervised release, on charges of production and possession of child pornography, arising from Oldale secretly filming children using hidden cameras in the bathrooms of his home. As a result of his conviction, Oldale 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). In addition, Oldale must pay a $400,000 money judgment in lieu of forfeiture of Oldale’s interest in his residence, which Oldale used to facilitate his crimes.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“Jonathan Oldale invited children into his home in order to surreptitiously photograph them while they were changing clothes or using the bathroom, and attempted to do the same thing in public facilities that catered to children,” said U.S. Attorney Robert K. Hur. “This sentence sends a clear message that we will bring to justice those who would victimize innocent children.”
According to Oldale’s plea agreement, on May 5, 2017, the Montgomery County Police Department received a complaint from an employee at a children’s gymnastics facility in Silver Spring that Oldale had placed a backpack containing a camera disguised to look like an automobile key fob in a bathroom at the facility. The employee also told officers about a prior incident in which Oldale had left a backpack in the same bathroom. A search of Oldale’s residence on May 9, 2017, recovered electronic media, including three laptop computers. A subsequent forensic review of the computers revealed that two of the computers had installations of browsers used to access the “dark web,” and some of the files accessed had titles consistent with child pornography. The dark web is the part of the World Wide Web that requires specific software, configurations, or authorization to access, allowing users and website operators to remain anonymous. One of the laptops had previously connected to a dark web site used to exchange child pornography. The third computer contained image and video files of children with exposed genitalia, including in public bathrooms.
On July 5, 2017, Montgomery County Police officers executed a second search warrant at Oldale’s residence and seized among other items, three “spy cameras,” five MicroSD cards (small memory cards used in cameras and phones to store information), and five USB drives. All of the removable media contained videos created using surreptitious “spy” cameras that had been placed by Oldale in bathrooms in his residence. Another MicroSD card contained the titles of encrypted files that had been erased from the card, and the titles were indicative of child pornography.
Videos recorded in the bathrooms show that the cameras were placed at waist height or lower, for example under the sink and in a basket in the shower, and that multiple cameras were placed in a bathroom. The videos show that Oldale would enter the bathroom to adjust the cameras just before children entered the bathrooms and just after the children left. Between May and July 2017, Oldale recorded more than 1,000 videos using the hidden cameras in his bathrooms. The videos depict minor children changing into and out of bathing suits, taking showers, and using the toilet.
Children were invited to “splash parties” at Oldale’s residence in June and July 2017, including by e-mailed invitations sent to their parents. Children would become covered with grass while playing on an inflatable structure in the back yard. Oldale encouraged the children to change clothes or take showers before they went home. Of the approximately 79 children who appear in the videos taken in the bathroom, approximately 52 are depicted nude at some point in the videos.
Forensic analysis of the USB drives revealed that Oldale stored videos in a nested file folder structure. Subfolders were named for the month and within those folders were additional subfolders with event names, like party or camp. On two of the USB drives there were subfolders that included lists of children’s names followed by a description of the swimsuit worn by the child. In all, there were nine subfolders with names indicative of events and containing videos of children in the bathrooms at Oldale’s residence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joseph R. Baldwin and Timothy F. Hagan, Jr., who are prosecuting the federal case.
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Buffalo Man Sentenced on Gun ChargesRead 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 Erick Pizarro, 37, of Buffalo, NY, who was convicted of possession of firearms in furtherance of a drug trafficking crime and being a felon in possession of a firearm, was sentenced to serve 84 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that on June 9, 2015, the Buffalo and Lackawanna Police Departments a search warrant at the defendant’s Schuele Avenue residence. Officers recovered bags of heroin, a digital scale with heroin residue, a sifter with heroin residue, a spoon with heroin residue, a bottle of cutting agent, ammunition, and a loaded firearm.
On April 9, 2003, Pizarro was convicted of Attempted Robbery in the Second Degree in Erie County Court and sentenced to 30 months in prison. As a result, he is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Gary Loeffert, Special Agent-in-Charge, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Lackawanna Police Department, under the direction of Chief James Michel.Beltsville Man Sentenced to 87 Months in Federal Prison for Stealing over $4.2 Million in a Business E-Mail Compromise SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Nkeng Amin, a/k/a “Rapone,” a/k/a “Arnold,” age 31, of Beltsville, Maryland, today to 87 months in prison, followed by three years of supervised release, for a large-scale business e-mail compromise scheme during which Amin and his co-conspirators obtained over $4.2 million from at least 13 individual and business victims. Judge Grimm also ordered Amin to forfeit and to pay restitution in the amount of $1,021,474.
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 Homeland Security Investigations; and Special Agent in Charge Matthew S. Miller of the United States Secret Service, Washington Field Office.
According to his plea agreement, and to evidence presented at today’s sentencing hearing, between February 2016 and July 2017, Amin and his co-conspirators gained access to e-mail accounts associated with the victims. Then, posing as an entity with whom the victims were associated, they sent false wiring instructions to the victims, who wired millions of dollars into “drop accounts” set up by Amin and his co-defendants, in the names of fictitious businesses they registered. Drop accounts were bank accounts opened or controlled by Amin and his co-conspirators that were used to receive fraudulently obtained money from victims. Amin and others then disbursed the money in the drop accounts that were received from the victims by, among other things: electronically transferring money to other accounts; transferring funds to other accounts at the same bank; withdrawing cash; obtaining cashier’s checks; and writing checks to other individuals or entities.
Amin worked hand-in-hand with co-conspirator Aldrin Fomukong to perpetrate the fraud in Maryland. Amin also independently corresponded with the leaders of the fraud scheme overseas and recruited and managed his own co-conspirators, including co-defendant Yanick Eyong, to open bank accounts to receive victim funds and withdraw the victim funds from the fictitious bank accounts before the fraud was detected.
Over the course of the conspiracy, Amin, Fomukong, and their co-conspirators obtained over $4.2 million and attempted to steal over $10.9 million from at least 13 victims.
The following co-conspirators all pleaded guilty to their roles in the scheme.
- Aldrin Fon Fomukong, a/k/a “Albanky,” a/k/a “A.L.,” age 24, of Greenbelt, Maryland;
- Carlson Cho, a/k/a “Uncle Tiga2,” age 23, of Braintree, Massachusetts;
- Izou Ere Digifa, a/k/a “Lzuo Digifa,” a/k/a “Mimi VA,” age 22, of Lynchburg, Virginia;
- Yanick Eyong, age 26, of Bowie, Maryland; and
- Ishmail Ganda, a/k/a “Banker TD,” age 31, of College Park, Maryland.
Fomukong and Digifa remain detained pending sentencing. Judge Grimm sentenced Eyong to 57 months in prison; sentenced Cho to 48 months in prison; and sentenced Ganda to 90 days in prison, to be served during his first 18 months of supervised release.
United States Attorney Robert K. Hur praised Homeland Security Investigations and the United States Secret Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kelly O’Connell Hayes, who prosecute the case.
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Asbury Park, New Jersey, Man Sentenced to 11 Years in Prison for Distribution of Cocaine Base and Violating Federal Supervised ReleaseRead the Press Release
TRENTON, N.J. – An Asbury Park, New Jersey, man was sentenced today to 11 years in prison on charges of drug distribution and violation of supervised release, U.S. Attorney Craig Carpenito announced.
Sean Lambert, a/k/a “Pretty Tone,” 48, was sentenced to 120 months in prison for distributing cocaine base, commonly known as “crack,” from a residential building in Asbury Park. He was also sentenced to an additional 12 months in prison – to be served following his completion of a 120-month prison term – for distributing the crack while he was serving a term of federal supervised release. At the time of his arrest, Lambert was on supervised release after completing a 120-month sentence for illegally possessing a firearm.
Lambert pleaded guilty before U.S. District Judge Michael A. Shipp to an indictment charging him with two counts of distributing cocaine base and entered a guilty plea admitting to having violated his court-ordered terms of supervised release. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On two occasions – Feb. 28, 2018, and March 9, 2018, Lambert sold cocaine base out of an apartment within a multi-family building in Asbury Park. During the second sale, Lambert sold over 28 grams of cocaine base.
When he was arrested, Lambert was on federal supervised release following a 2008 conviction – also in federal court in Trenton – for being a felon in possession of a firearm. As such, he was required to not commit another federal, state, or local crime during his period of supervision. Lambert admitted that, by selling cocaine base, he violated this condition.
Due to his having a prior first-degree drug distribution conviction in New Jersey, an enhanced penalty information was filed, increasing the mandatory minimum penalty on the drug distribution charge to 10 years in prison.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office in Newark.
Ames Man Sentenced to 30 Years in Prison for Child Exploitation and Child Pornography ChargesRead the Press Release
DES MOINES, Iowa—On March 29, 2019, Tyler Gene Harris, age 28, of Ames, appeared before United States District Court Judge Rebecca Goodgame Ebinger and was sentenced to 360 months in prison for charges of sexual exploitation of a child, distribution of child pornography, and possession of child pornography. Judge Ebinger ordered 15 years of supervised release to follow his prison term. Harris pleaded guilty in November 2018 to six counts of sexual exploitation of a child, in violation of Title 18, United States Code, Section 2251(a); one count of distribution of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2); and two counts of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(5)(B).
According to plea documents, Harris admitted between December 2016 and April 2018, he knowingly persuaded, induced, enticed, or coerced victims to engage in sexually explicit conduct with the purpose of producing visual depictions of the victims engaging in sexually explicit conduct. Harris also admitted to distributing visual depictions of prepubescent minors engaging in sexually explicit conduct. Harris was ordered to pay $900 to the Crime Victims’ Assistance Fund.
This investigation was conducted by the Ames Police Department, Homeland Security Investigations, and Boone Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Alabama Husband and Wife Business Owners Indicted for Payroll Tax FraudRead the Press Release
BIRMINGHAM - A federal grand jury returned an indictment on Thursday charging a Crane Hill, Alabama, husband and wife with five counts of failing to pay over payroll taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to the indictment, Walter Michael Williams and Amy Butler Williams operated Dixie Steel Erectors (DSE), a commercial construction business in Hanceville, Alabama. Walter Michael Williams, president and owner of DSE, and Amy Williams, bookkeeper and office manager of DSE, were allegedly responsible for withholding and paying over DSE’s payroll taxes. The indictment charges that during 2012 and 2013, DSE accrued payroll tax liabilities and that the Williams withheld those taxes from the pay of the business’s employees, but willfully failed to pay over the withheld amounts to the Internal Revenue Service (IRS). The indictment further alleges that, while failing to pay over payroll taxes to the IRS, Walter Michael and Amy Williams used DSE’s funds to pay for numerous personal expenses, including mortgage payments on a lake house and condominium and alimony payments.
If convicted, both Walter Michael and Amy Williams face a maximum of five years in prison for each count of failure to pay over the employment taxes. In addition, they face a period of supervised release, restitution, and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS Criminal-Investigation, who conducted the investigation, and Tax Division Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who are prosecuting the case.
30 March 2019
Sturgis Man Charged with Firearm CrimeRead the Press Release
United States Attorney Ron Parsons announced that a Sturgis, South Dakota, man was charged in federal district court with Possession of an Unregistered Firearm.
Kelly Vasknetz, age 47, was indicted on March 19, 2019. Vasknetz appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Vasknetz knowingly being in possession of a double-barrel shotgun with a barrel of less than 18 inches in length that was not registered to him. The charge is merely an accusation and Vasketnz 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 Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Sturgis Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Vasknetz was detained pending trial. A trial date has not been set.
Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 26, 2019, by U.S. District Judge Roberto A. Lange.
Garrett Alan Heck, age 23, was sentenced to 12 months and 1 day in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Heck was indicted by a federal grand jury on September 11, 2018. He pled guilty on January 23, 2019.
Heck was convicted of Aggravated Sexual Abuse in July 2012. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 27, 2018, and July 2018, Heck, a person required to register under the Sex Offender Registration and Notification Act and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Heck was immediately turned over to the custody of the U.S. Marshals Service.
Pierre Residents Indicted on Fentanyl ChargesRead the Press Release
United States Attorney Ron Parsons announced that three Pierre, South Dakota, individuals have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Jacob Seibel, age 25, Christa Seibel, age 22, and Darrell Hamann, age 25, were indicted on March 12, 2019. Jacob Seibel and Christa Seibel appeared on March 18, 2019, and Hamann appeared on March 22, 2019, before U.S. Magistrate Judge Mark A. Moreno. All three pled not guilty to the Indictments.
The maximum penalty upon conviction is 20 years in prison and/or a $1,000,000 fine, at least 3 years, up to life, of supervised release, and $100 to the Federal Crime Victims Fund for each Count.
The Indictments allege that between September 1, 2018, and September 5, 2018, Jacob Seibel, Christa Seibel and Hamann knowingly and intentionally conspired with others to distribute and possess with the intent to distribute fentanyl, a Schedule II controlled substance, in South Dakota.
The charges are merely accusations and Jacob Seibel, Christa Seibel and Hamann are presumed innocent until and unless proven guilty.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, Pierre Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
All three defendants were released on bond pending trial. A trial date has not been set.
Mission Woman Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute Methamphetamine.
Alicia Medicine Eagle, age 38, was indicted on March 13, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 25, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $1,000,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 14, 2016, and October 26, 2016, Medicine Eagle possessed methamphetamine with intent to distribute it to others.
The charges are merely accusations and Medicine Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Medicine Eagle was released on bond. A trial date has not been set.
Mission Man Sentenced for BurglaryRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Third Degree Burglary was sentenced on March 26, 2019, by U.S. District Judge Roberto A. Lange.
Preston White Feather, age 23, was sentenced to 14 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Feather was indicted by a federal grand jury on June 12, 2018. He pled guilty on January 23, 2019.
The conviction stemmed from an incident that occurred in the early morning hours of April 9, 2018, wherein White Feather broke into and burglarized the Todd County High School in Mission, and stole property belonging to the school, valued at over $4,000.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
White Feather was immediately turned over to the custody of the U.S. Marshals Service.
Manderson Man Sentenced for Possessing a Firearm and MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Manderson, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person and Possession with Intent to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Elijah West, age 21, was sentenced on March 25, 2019, to 24 months in federal prison, to be followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The conviction stems from West knowingly being in possession of a Ruger .22 caliber revolver, while unlawfully using and distributing methamphetamine in February 2018 at Pine Ridge.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime
This case was investigated by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Benjamin Patterson and Heather Sazama prosecuted the case.
West was remanded to the custody of the U.S. Marshals Service.
Kyle Man Sentenced for Discharge of a Firearm During the Commission of a Crime of ViolenceRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of Discharging a Firearm During the Commission of a Crime of Violence was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Charles Kieffe, age 34, was sentenced on March 22, 2019, to 10 years in federal prison, followed by 3 years of supervised release, and ordered to pay $3,854.54 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
Kieffe was indicted by a federal grand jury in May 2018. The charge related to Kieffe pursuing a vehicle on March 23, 2018, near Kyle. After getting a short distance in front of the victims’ vehicle, Kieffe stopped his vehicle causing the victims to slam on their vehicle’s brakes. Kieffe exited his vehicle and discharged a .270 caliber rifle at the victims’ vehicle, striking the windshield and the passenger’s side window. The victims quickly spun their vehicle around and sped away from Kieffe. Kieffe confessed to law enforcement that he intentionally discharged the firearm at the victims’ vehicle, thinking someone who had sold him $1,500 worth of bad drugs was inside the vehicle. One of the victims sustained a shrapnel injury to her leg and property damage to her vehicle.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Kieffe was immediately turned over to the custody of the U.S. Marshals Service.
Fort Thompson Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on March 26, 2019, by U.S. District Judge Roberto A. Lange.
Michael Farmer, age 31, was sentenced to 14 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Farmer was indicted by a federal grand jury on September 11, 2018. He pled guilty on December 21, 2018.
The conviction stemmed from an incident on July 19, 2017, when Farmer, who has four prior convictions of domestic assault, had been out all night following an argument the previous day, came home and forced his intimate partner out of the residence. While removing the victim from the home, Farmer struck her on the arms and legs causing bruising.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
29 March 2019
United States Reaches Settlement with Harrisburg Millworks Llc Regarding Compliance with ADARead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced a settlement with Harrisburg Millworks LLC, the owner of The Millworks, Harrisburg, Pennsylvania. The agreement was reached under Title III of the Americans with Disabilities Act (“ADA”).
According to United States Attorney David J. Freed, the United States Department of Justice received a complaint that The Millworks was not accessible to individuals in wheelchairs. After an investigation with the owner’s complete cooperation, the United States Attorney’s Office found architectural barriers to access and violations of the relevant ADA Standards in The Millworks.
Under the terms of the agreement, The Millworks has agreed to remove those architectural barriers in their seating areas and lavatories. Any future alteration to The Millworks must also comply with federal disability law. The Millworks further agreed to pay a civil penalty of $6,000 to the United States for this ADA violation.
“Restaurants must ensure that their construction and operation comply with all requirements of the ADA, and that they provide equal access for all people,” said U.S. Attorney David J. Freed. “The Millworks quickly and cooperatively worked to address the ADA violations discovered during our investigation, which will enable all prospective patrons to dine at its establishment.”
Federal law requires public accommodations, including restaurants, to provide individuals with disabilities equal access to facilities. The ADA authorizes the U.S. Department of Justice and the U.S. Attorney’s Office to undertake investigations and periodic reviews of covered establishments. For more information on the ADA, visit www.ADA.gov.
This case was handled by Assistant United States Attorney Michael J. Butler.
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United States Attorney’s Office Recognizes Women’s History Month by Honoring the Districts’ First Female U.S Attorney and AUSARead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, in honor of #WomensHistoryMonth, recognizes the contributions of two former attorneys at the United States Attorney’s Office.
Alicia A.G. Limtiaco, born and raised in Guam, became the first female U.S. Attorney for Guam and the NMI. She served from June 21, 2010 to March 10, 2017. Ms. Limtiaco previously served as the first female Attorney General of Guam and served in that office from January 3, 2007 to June 21, 2010. She completed undergraduate studies at the University of Southern California, then earned her Juris Doctorate at UCLA School of Law. Ms. Limtiaco is a Distinguished Fellow with the Institute on Violence, Abuse and Trauma (IVAT) and an International Fellow with the Ho’omaluhia Family Violence and Sexual Assault Institute – Hawai’i Pacific, and serves as a trainer at their international summits. She is also a legal specialist on contract to the Office of the Prosecuting Attorney for Hawai’i County working in the area of domestic violence and sexual assault.
Ellen A. Lockwood was the first female Assistant U.S. Attorney in the Guam office. She was sworn in on June 8, 1987. On July 29, 1989, Ellen transferred as an AUSA to the Western District of Texas. She currently works in private practice and as an adjunct professor at St. Mary’s University School of Law in San Antonio. She is a graduate of the Georgetown University Law Center.