Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 13 February 2019
New Castle Man Charged with Illegally Receiving Railroad Retirement BenefitsRead the Press Release
PITTSBURGH, PA – A Lawrence County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned yesterday, named Joshua L. Bable, 31, of New Castle, Pennsylvania.
According to the Indictment, from April 4, 2016, through December 30, 2016, Bable received $13,013.47 in Railroad Retirement Board unemployment benefits to which he knew he was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Railroad Retirement Board, Office of Inspector General, Office of Investigations, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Missoula man sentenced for meth, firearms violationsRead the Press Release
MISSOULA—A Missoula man who admitted possessing methamphetamine and a firearm was sentenced on Tuesday to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Jeremy Douglas Smith, 29, pleaded guilty in October to possession with intent to distribute meth and to possessing a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said evidence showed that on May 2, 2018, the Missoula County Sheriff’s Office conducted a traffic stop on a vehicle Smith was driving. A search warrant for the vehicle led to the recovery of meth, a 9mm pistol, drug paraphernalia and ammunition. Smith admitted to law enforcement that he distributed meth and possessed the firearm.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Mineral County man and Virginia man admit to roles in methamphetamine conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Corey Bircher, of Elk Garden, West Virginia, and Steve William Gray, of Luray, Virginia, have admitted to their roles in a methamphetamine conspiracy, United States Attorney Bill Powell announced.
Bircher, age 25, pled guilty to one count of “Possessing a Firearm in Furtherance of a Drug Trafficking Crime.” Bircher admitted to having a .357 revolver during a methamphetamine distribution crime in February 2018 in Mineral County.
Gray, age 39, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” He admitted to conspiring with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties.
Bircher is facing no less than five years incarceration and a fine of up to $250,000. Gray is facing up to 20 years incarceration and a fine of up to $1,00,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes 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 Robert W. Trumble presided.
Methuen Man Indicted for Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Methuen man was charged in federal court in Boston with illegal possession of a firearm and ammunition.
Michael O’Neil, 37, was indicted on one count of being a felon in possession of a firearm and ammunition. O’Neil was arrested on Dec. 1, 2018, in Andover, when police seized a loaded .380 caliber pistol from him. He has been in state custody since that time and will appear in federal court at a later date. O’Neil is prohibited from possessing a firearm due to a prior conviction punishable by more than one year in prison.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Essex County District Attorney Jonathan W. Blodgett; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Evan Panich of Lelling’s Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Meth Offense Sends Richland County Man to Prison for 15 YearsRead the Press Release
Harvey L. Ireland, 35, of Olney, Illinois, has been sentenced to 188 months in federal prison and five years of supervised release for conspiring to distribute methamphetamine, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today.
Ireland previously pleaded guilty to a one-count federal indictment that also named two co-defendants: Justin R. Mason, 35, and Brianna N. Bare, 26, both also residents of Olney, Illinois. Bare was sentenced on December 27, 2018, to 87 months imprisonment and three years of supervised release. Mason was sentenced on January 22, 2019, to 262 months imprisonment and five years of supervised release.
The charged conspiracy took place from August 2017 to March 2018, in Richland County and elsewhere, and involved 50 grams or more of methamphetamine (Ice), or 500 grams or more of a mixture and substance containing methamphetamine.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
Massachusetts State Trooper Agrees to Plead Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper agreed to plead guilty in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Heath McAuliffe, 40, of Hopkinton, agreed to plead guilty pursuant to a plea agreement to one count of embezzlement from an agency receiving federal funds. A date for the plea hearing has not yet been scheduled.
According to court documents, McAuliffe was a Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90.
In 2016, McAuliffe earned approximately $164,680, which included approximately $60,908 in overtime pay. In 2015, McAuliffe earned approximately $180,215, which included approximately $83,496 in overtime pay.
McAuliffe was paid for overtime shifts that he did not work at all, for which he arrived late, and from which he left early. McAuliffe concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and, falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.
McAuliffe agreed to plead guilty to collecting $7,860 for overtime hours that he did not work between August of 2015 and August of 2016. Pursuant to the plea agreement, the government will recommendation a sentence of between six to twelve months incarceration.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE), which was intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
In 2016 and 2015, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Thus far, eight MSP troopers have been charged in the ongoing investigation. Seven have previously pleaded guilty.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.
The details contained in the court documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maple Heights man faces additional charges of making threats against the President and his family, as well as providing material support to al QaedaRead the Press Release
A superseding indictment was filed charging a Maple Heights man attempting to provide material support to al Qaeda, as well as making threats against the President, threats against the family of the President and false statements to law enforcement.
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 49, has been in custody since July, when he was arrested after allegedly planning a terrorist attack in Cleveland. He was previously indicted on one count of attempting to provide material support to al Qaeda.
Pitts on June 15, 2018, did knowingly and willfully make a threat to kidnap and inflict bodily harm upon Donald J. Trump, specifically that he would “get” the President by cutting off the President’s head and hands, according to the indictment.
Pitts on June 15, 2018 also knowingly and willfully made threats to kidnap and inflict bodily harm upon members of the President’s family, specifically that “…a better way to get, to get him is to kill his kids. Kill his daughter, son-in-law. Kill ‘em all. He (the President) come out ‘cause you start killing his kids, chop their heads off…you send his kids back,” according to the indictment.
According to an affidavit filed in the case, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts and the UCE met in Walton Hills, Ohio, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts and the UCE searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
The UCE texted Pitts later on June 22 and where he indicated al Qaeda “brothers” would provide Pitts with a bus pass and cellular phone.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, who provided Pitts with a bus pass and a phone Pitts could use to communicate with the UCE. The bus pass was provided to Pitts, as he requested, so he could travel to downtown Cleveland to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where they discussed the impending July 4th bombing.
“And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off,” Pitts said.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This investigation is being conducted by the FBI-Cleveland Division’s Joint Terrorism Task. The case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Matthew Shepherd of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man Pleads Guilty to $20 Million Fraud and Ponzi SchemeRead the Press Release
ALEXANDRIA, Va. – An Arlington man pleaded guilty today to orchestrating eight fraud schemes that resulted in total losses of approximately $20 million.
According to court documents, Todd Elliott Hitt, 54, solicited approximately $30 million from investors for a variety of real estate and venture capital investments in the Washington, D.C. area from 2014 through August 2018. The investments included Hitt’s solicitation of approximately $17 million from investors in order to purchase a five-story office building adjacent to a planned future stop on the Silver Line in Herndon. Hitt made false statements and material omissions to investors by failing to disclose that a significant portion of the monies raised were commingled with other unrelated investment projects, used for personal spending to support an extravagant lifestyle and new investor’s funds used to pay off old investors in a Ponzi-like scheme. Hitt’s fraudulent conduct resulted in investor losses of approximately $20 million.
Hitt pleaded guilty to a charge of securities fraud in and faces a maximum penalty of 20 years in prison and a fine of $5 million or twice the gross gain or loss, whichever is greater. He is scheduled to be sentenced on June 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Mark D. Lytle is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-43.
Man Carrying Prohibited 3D-Printed Gun Found with List of Lawmakers’ AddressesRead the Press Release
A Dallas man was sentenced today to 8 years in prison after officers caught him with a partially 3D-printed AR-15 rifle and a list of lawmakers’ addresses in his backpack, despite a court order that prohibited him from possessing a firearm, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
In August 2015, following a violent altercation with a live-in girlfriend, a county judge enacted a protective order against Eric Gerard McGinnis, then 39. Despite that order – which barred him from possessing firearms or ammunition for two years – Mr. McGinnis attempted to buy a semi-automatic rifle component at a federally licensed gun shop in June 2016. The prospective purchase was rejected after an NICS background check uncovered the order, and ATF reminded Mr. McGinnis he wasn’t allowed to have a gun.
Instead, Mr. McGinnis obtained a barrel, stock, upper receiver, and grip, then used a 3D printer to create a “lower receiver,” the gun’s firing mechanism, and assembled the parts to construct a short-barrel AR-15 style rifle.
In July 2017 – with just over one month left on his protective order – Mr. McGinnis took the 3D-printed gun to a wooded area just outside Dallas. Grand Prairie police officers, out on another call, heard three shots fired and eventually located him just off a major road. Ordered to put his hands up, Mr. McGinnis falsely claimed to be a member of the CIA. Body-cam video shows that officers directed him to kneel on the pavement, cuffed him, and shortly thereafter, inspected his backpack.
In the backpack, the officers discovered the partially 3D printed gun, loaded, and a list labeled “9/11/2001 list of American Terrorists.” The hit list – not included as evidence at trial but presented at sentencing – included office and home addresses of several federal lawmakers, both Democrat and Republican.
A subsequent forensic analysis of Mr. McGinnis’ electronic devices by U.S. Capitol Police suggests Mr. McGinnis had a strong interest in James Hodgkinson, the shooter who wounded Rep. Steve Scalise and several others at a GOP Congressional baseball practice in Virginia in June 2017, the federal prosecutor revealed at sentencing Wednesday.
In a jailhouse phone call to a family member, Mr. McGinnis admitted he’d “printed” part of the gun.
“I didn’t buy a gun, I built the gun,” he said in the recorded phone call. “The upper, I printed a lower, and I built it -- installed the trigger and did all that stuff. I built it.”
After a two-day trial presided over by Chief U.S. District Judge Barbara M.G. Lynn, a jury found McGinnis guilty of possessing an unregistered short barrel rifle and unlawfully possessing ammunition while subject to an active protective order.
This case, investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives with assistance from the Grand Prairie Police Department and U.S. Capitol Police, was brought as part of U.S. Attorney Erin Nealy Cox’s initiative to keep firearms out of the hands of domestic abusers. Assistant U.S. Attorneys Brian McKay and Rick Calvert prosecuted the case.
“When he realized he couldn’t legally purchase a firearm, Eric McGinnis circumvented our gun laws by 3D-printing his weapon, eliminating the need for a background check,” said Nealy Cox. “This case should send a message to prohibited persons contemplating acquiring guns by any method: this office is committed to keeping guns out of the hands of those who violate protective orders for domestic violence, no matter how the guns are obtained – by theft, purchase, or 3D printing.”
"Controls to determine if an individual is prohibited from purchasing firearms and ammunition worked," said Jeffrey C. Boshek II, Special Agent in Charge of ATF’s Dallas Field Division. “Mr. McGinnis applied evolving technology to by-pass those controls to manufacture an untraceable NFA weapon. The fact a prohibited person was able to manufacture an untraceable firearm with apparent ease and anonymity presents a significant challenge and major concern to law enforcement and our community.”
Mr. McGinnis is one of a number of defendants prosecuted for possessing firearms or ammunition after domestic violence convictions or while under protective orders in the Northern District of Texas.
Police body-cam footage of his arrest and audio of his jailhouse call are available upon request.
Livingston man sentenced in firearms caseRead the Press Release
BILLINGS—A Livingston resident who admitted illegally possessing a firearm was sentenced today to five years of probation, U.S. Attorney Kurt Alme said.
Cody Allen Viers, 36, pleaded guilty in October to being a prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
Prosecutors said that on Feb. 13, 2018, law enforcement interviewed an individual about a 9mm semi-automatic pistol he had purchased earlier and had given to another person. Officers also interviewed Viers, who said he had bought the firearm and had provided it to the person law enforcement interviewed in February. Viers also admitted he was prohibited from possessing a firearm because of a previous conviction for partner or family member assault. A criminal history review found that Viers had two convictions for the crime, a misdemeanor.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Lame Deer man admits fatal stabbingRead the Press Release
BILLINGS—Lame Deer resident Darrell Lee Whiteman, Jr. admitted today that he fatally stabbed a person during an argument in March 2017, U.S. Attorney Kurt Alme said.
Whiteman, 29, pleaded guilty to voluntary manslaughter. Whiteman faces a maximum 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan Watters presided. Judge Watters set sentencing for June 21, 2019. Whiteman is detained.
Prosecutors said evidence would show that on March 4, 2017, Whiteman was at a Lame Deer residence, on the Northern Cheyenne Indian Reservation, drinking with others. Whiteman got into an argument with his girlfriend, and the victim told Whiteman to stop. Whiteman and the victim then got into a fight that was broken up by another person.
The victim went to the kitchen for a drink of water, and Whiteman grabbed a knife from the kitchen. Whiteman reached around another individual who was in between the two and stabbed the victim once in the chest. Whiteman left the residence and the victim later died.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
XXX
Keithville felon pleads guilty to possessing pistolRead the Press Release
SHREVEPORT, La. – Michael Roy Reed, 44, of Keithville, Louisiana, pleaded guilty Tuesday before U.S. District Judge Elizabeth E. Foote to possession of a firearm by a convicted felon, U.S. Attorney David C. Joseph announced.
Shreveport Police received a call on January 23, 2018 from a concerned citizen about a Colt, Model: Mustang XSP, .380-caliber pistol, according to the guilty plea. The caller informed the police that he had received the firearm from Reed as payment for performing work on Reed’s truck. After investigating the matter further, police officers learned that the weapon was previously reported stolen and that Reed was a convicted felon.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Reed was convicted in Ouachita Parish on July 8, 2013 for illegal possession of stolen things, conspiracy to distribute cocaine and possession with intent to distribute methamphetamine. Reed was indicted September 27, 2018.
Michael Reed faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for June 14, 2019.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorneys Jessica D. Cassidy and Allison D. Bushnell are prosecuting the case.
Kanawha County Man Sentenced for Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man caught with approximately 259 grams of methamphetamine in August 2017 was sentenced today to 144 months in prison, announced United States Attorney Mike Stuart. Maurice Rashee Flint, 39, of Charleston, previously pled guilty plea to possession with the intent to distribute more than 50 grams of methamphetamine. Stuart commended the cooperative investigative efforts of the Kanawha County Sheriff’s Department’s STOP Team and the Metropolitan Drug Enforcement Network Team (MDENT), along with the Drug Enforcement Administration.
“Twelve years. Twelve years in federal prison,” said United States Attorney Mike Stuart. “Meth dealers are rampant throughout West Virginia and we are working closely with our law enforcement partners to get dealers like Flint off our streets. I want to thank my prosecutors, the Kanawha County Sheriff’s Department’s STOP Team, MDENT and DEA for excellent work in this matter.”
At his plea hearing in October, 2018, Flint admitted that on August 25, 2017, members of the Kanawha County Sheriff’s Department STOP Team and members of the Drug Enforcement Administration executed a search warrant at a motel he had been staying at in St. Albans, West Virginia. During the search, officers found approximately 259 grams of methamphetamine that Flint admitted he possessed with the intent to distribute. Flint also admitted that on four previous occasions between April 2017 and August 2017, he distributed quantities of heroin and methamphetamine to a confidential informant working with the local law enforcement agencies.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
Follow us on Twitter: SDWVNews
###
Jury Finds Volunteer Sheriff's Deputy Guilty of Extortion, Obtaining Stolen ATV and FirearmsRead the Press Release
LITTLE ROCK— A volunteer Sheriff’s Deputy with the Arkansas County Sheriff’s Office has been convicted of extorting confidential informants to steal an ATV and firearms.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI’s Little Rock Field Office, announced that a federal jury found Charles David Chastain, 48, of Stuttgart, guilty of Hobbs Act extortion, attempted Hobbs Act extortion, and receipt of a firearm with intent to commit a felony.
United States District Judge Leon Holmes presided over the two-day trial, which concluded Tuesday with the jury verdict finding Chastain guilty on all counts. Chastain will be sentenced by Judge Holmes at a later date.
“Law enforcement in this district work tirelessly and selflessly,” said Hiland. “They respond at a moment’s notice and are willing to sacrifice their lives for total strangers because of a calling to serve their fellow man.”
“The actions of one officer are not an indictment against an entire profession,” Hiland continued. “However, no individual is above the law, and our office will seek justice wherever injustice is found, especially with those we trust to serve and protect our communities. This guilty verdict would not have been possible without the hard work of our Assistant United States Attorneys.”
Chastain was employed as a volunteer Auxiliary Sheriff’s Deputy for the Arkansas County Sheriff’s Office. He was assigned to the Tri-County Drug Task Force, where he utilized confidential informants to develop drug cases in Arkansas County and surrounding areas.
Testimony during the trial established that two confidential informants worked for Chastain in an effort to reduce criminal charges. In the fall of 2017, Chastain asked those informants to steal an ATV for him. One of the informants went to a duck hunting club in Clarendon and stole a Browning Edition, Polaris Ranger 900 ATV valued at just under $25,000. The informant stole the ATV in exchange for favorable treatment from Chastain concerning criminal charges, but the informant also reported the theft to the FBI. Testimony indicated that both informants were concerned Chastain would refuse to give them credit for their cooperation if they did not meet his demands.
Trial testimony also indicated that in December of 2017, Chastain asked one of the informants to commit another burglary, this time with the goal of stealing firearms from a storage unit in Arkansas County. Text messages admitted at trial showed that the informant asked if there were cameras at the storage unit, and Chastain replied, “Long sleeve shirts and a mask would make it a moot point.” The informant did not commit that burglary, and instead worked with the FBI and the Arkansas State Police to obtain three firearms to offer for sale to Chastain.
Evidence at trial showed that the informant told Chastain the firearms were stolen and included a Chinese Type 56-1, which is similar to an AK-47 rifle, a Colt M16 A1, and a Winchester M14. Chastain agreed to buy the purportedly stolen firearms from the informant for $300. He was arrested shortly thereafter with those rifles in his possession. Investigators later executed a search warrant at Chastain’s shop, where they located the stolen Polaris Ranger.
The statutory penalty for Hobbs Act extortion, as well as attempted Hobbs Act extortion, is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years of supervised release. The statutory penalty for receipt of a firearm with intent to commit a felony is not more than 10 years imprisonment, not more than a $250,000 fine, and not more than three years of supervised release.
The investigation was conducted by the FBI, with assistance from the Arkansas State Police.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at:
http://www.justice.gov/edarTwitter:
@EDARNEWSJury Convicts San Diego Man of Traveling to Portland for Sex with MinorRead the Press Release
EUGENE, Ore.—A federal jury found David George Hopkins, 60, of San Diego, California, guilty today for traveling with the intent to engage in sex with a minor and other related charges.
“This case is another example of the extraordinary lengths some will go in an attempt to victimize children,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “It is also an example of the dogged determination of federal law enforcement to intercept individuals who seek to victimize children. I hope this conviction will serve as a warning to would-be child predators who believe they can pursue minors online without consequences.”
“Today’s conviction started with one person who was so concerned that she reported her disturbing interactions with Mr. Hopkins to law enforcement. Her willingness to step forward was critical to our ability to protect children from this predator. I would ask anyone with such information in the future to contact the nearest FBI office or submit tips online at https://tips.fbi.gov,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to court documents and information shared at trial, on June 9, 2017, Hopkins traveled from San Diego to Portland, Oregon believing he would be able to have sex with a 13-year-old girl named Paula along with her mother, Norma, and her mother’s friend, Ana, with whom he had been chatting online. Unbeknownst to Hopkins, he had been chatting with an FBI Special Agent acting as both Norma and Paula, and with a person using the alias Ana.
Hopkins and Ana began chatting online in 2012, and during one of the conversations, Hopkins raised the topic of having sex with a minor female in Peru and sent Ana a photo of what was purportedly him receiving oral sex from a minor.
In February 2017, Hopkins again contacted Ana and they began communicating using Skype and Facebook. In their first few conversations after reconnecting, Hopkins disclosed more details about his sexual relations with a minor in Peru. He also claimed to have had similar illicit contact with a minor in Panama. Hopkins later wrote, “did it bother u i [sic] had sex with young girls?” Hopkins did not present his conduct as a fantasy and Ana did not believe it was.
Concerned by the information shared with her, Ana reported Hopkins to the Eugene Police Department who referred the matter to the FBI. In March 2017, Ana met with an FBI Special Agent and agreed to cooperate with an investigation of Hopkins.
Ana continued chatting with Hopkins and their conversations grew increasingly more detailed and graphic as Hopkins shared information about his claimed past sexual experiences with minors and his desire to continue such behavior. In one conversation, Ana mentioned her fictitious Peruvian friend Norma. Hopkins asked if they could all have sex together. Ana also mentioned that Norma had a daughter named Paula. Hopkins also expressed an interest in having sex with Paula.
Ana told Hopkins that Norma had agreed to let him have sex with Paula. Shortly thereafter, Hopkins began communicating directly with Norma, the FBI Special Agent. The conversation quickly turned sexual and they discussed Hopkins flying to Oregon. In subsequent conversations, Hopkins began asking Norma about having sex with Paula, and, later, began communicating online directly with Paula. Hopkins chatted with Paula about having sex with her, describing in detail what he wanted to do.
In June 2017, Hopkins flew from San Diego to Portland with intent to engage in sexual conduct with Paula. He was met and arrested by the FBI at Portland International Airport upon his arrival. Hopkins claims of abusing children have not been corroborated.
In an indictment returned on June 20, 2018, a federal grand jury in Eugene charged Hopkins with one count each of attempting to use a minor to produce a visual depiction of sexually explicit conduct, attempting to coerce or entice a minor, traveling with the intent to engage in illicit sexual conduct and transferring of obscene material to a minor.
Hopkins will be sentenced on May 23, 2019, by U.S. District Court Judge Michael J. McShane.
This case was investigated by the FBI with assistance from the Eugene Police Department. It was prosecuted by Amy Potter and Jeff Sweet, Assistant U.S. Attorneys for the District of Oregon.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov.
Jefferson Parish Building Inspector Charged with Using Facility of Interstate Commerce to Promote Illegal ActivityRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ALTON MCCLINTON, age 54, a resident of New Orleans, Louisiana, was charged yesterday in a one-count bill of information with using a facility of interstate commerce with the intent to promote unlawful activity, in violation of 18 U.S.C. ' 1952(a)(3).
According to the bill of information, between at least January 2014, and August 18, 2017, MCCLINTON, a building inspector for the Jefferson Parish (Louisiana) Department of Inspection and Code Enforcement, used the Internet to promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of an unlawful activity, that is, public bribery, in violation of Title 14, Louisiana Revised Statutes, Section 118, and thereafter performed and attempted to perform an act to promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of such unlawful activity. Specifically, MCCLINTON, solicited and accepted bribe money from individuals seeking inspection reports in exchange for issuing either (1) a report reflecting that no zoning violation had occurred when, in fact, one had occurred or (2) an inspection report reflecting that MCCLINTON had inspected a particular building and that the building complied with parish building code regulations MCCLINTON when, in fact, MCCLINTON had not actually inspected the building.
If convicted, MCCLINTON faces a maximum term of five (5) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter, with the assistance of the Jefferson Parish Office of the Inspector General. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, is in charge of the prosecution.
Jackson Man Pleads Guilty under Project EJECT to Armed CarjackingRead the Press Release
Jackson, Miss – Justin Darby, 37, of Jackson, entered a guilty plea yesterday before U.S. District Judge Henry T. Wingate, to one count of carjacking and one count of using a firearm to facilitate the carjacking, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
On December 11, 2017, in Hinds County, officers with the Jackson Police Department were dispatched to the intersection of Lynch St. and Highway 80 in Jackson. Justin Darby had crashed into the rear of another vehicle at the intersection, forced the driver of that vehicle out of her car and fled the scene. He was carrying a military style rifle when he carjacked the vehicle. He later abandoned the vehicle and was subsequently arrested.
Darby will be sentenced by Judge Wingate on May 13, 2019, at 9:30 a.m. He faces a maximum penalty of 15 years in prison and a $250,000 fine for carjacking, and a minimum penalty of not less than 7 years in prison and a $250,000 fine for using a firearm to facilitate the carjacking. The sentences would run consecutively.
The Federal Bureau of Investigation and the Jackson Police Department investigated the case. It was prosecuted by Assistant United States Attorneys Lynn Murray and Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is 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. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Illegal Alien Sentenced to Prison for Document FraudRead the Press Release
A Mexican man who used false identification documents to obtain jobs was sentenced today to more than three months in federal prison.
Sergio Castro-Ramirez, age 40, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a December 17, 2018, guilty plea to two counts of unlawful use of identification documents and two counts of misuse of a social security number.
At the guilty plea, Castro-Ramirez admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed Employment Eligibility Verification Forms (Form I-9), state and federal W-4 tax forms, and other employment paperwork on April 2, 2015, and October 18, 2016, at businesses in Waverly and Shell Rock, Iowa. The Social Security number and the Alien Registration number on the “green card” which Castro-Ramirez claimed as his own were assigned other people. Castro-Ramirez also falsely claimed to be a lawful permanent resident of the United States.
In August 1996, Castro-Ramirez was first apprehended by immigration agents for being illegally present in the United States and illegally working in Marshalltown, Iowa, and was returned to Mexico. Castro-Ramirez was caught by U.S. Border Patrol agents illegally present in the United States four additional times between February 1997 and April 2001, and returned to Mexico each time. Castro-Ramirez returned illegally to the United States and was convicted of operating while intoxicated in Wapello County, Iowa, in 2003.
Castro-Ramirez most recently came to the attention of immigration officials following his arrest in July 2018 in Black Hawk County, Iowa, for domestic abuse assault causing bodily injury. On October 31, 2018, Castro-Ramirez was convicted of that offense in state court and was taken into immigration custody on November 1, 2018.
Castro-Ramirez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Castro-Ramirez was sentenced to 93 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Castro-Ramirez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2065-CJW.
Follow us on Twitter @USAO_NDIA.
Husband and Wife Charged with Conspiring to Defraud the United States; Wife Charged with Aiding and Assisting to File False Tax ReturnsRead the Press Release
A Waterford, Michigan husband and wife were arraigned this week on a number of charges including conspiracy to defraud the United States, fraudulent withholdings of records and falsification of records in bankruptcy. In addition, the wife was charged with aiding and assisting the filing of false tax returns, U.S. Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service - Criminal Investigation.
The arraignment was heard before U.S. Magistrate Judge Anthony Patti
According to the indictment, from 2012 through 2015, Stephanie Sumner of Waterford, Michigan was employed as the Director of Elections by the City of Oak Park. Part of her responsibilities there was to submit invoices for payment by the City of Oak Park for election related services. Stephanie Sumner created false City of Oak Park invoices listing her husband, Michael Sumner, as a vendor-payee. Only months before the scheme, in September 2012, the couple filed for Chapter 13 bankruptcy. From about January, 2013 to February 2015, checks from the City of Oak Park totaling over $430,000 in payment of the fraudulent invoices which were deposited by the couple into a shared bank account used by them.
The City of Oak Park generated Forms 1999 (Independent Contractor tax forms) which would have been required to be turned over to the Chapter 13 Trustee as part of their yearly tax information, but they failed to do so. They also did not report the embezzled funds on their 1040 tax form transcripts and 1040s. Stephanie Sumner failed to report the embezzled funds on their 2013, 2014 and 2015 federal tax returns when she knew she should have included them.
The maximum penalty for conspiracy to defraud the United States is imprisonment of no more than five years and a fine of not more than $250,000, while aiding or assisting in filing false tax returns is imprisonment of no more than three years and a fine of no more than $100,000.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by AUSA John Neal and SAUSA Richard Roble.
Heppner Physician Pleads Guilty to Tax EvasionRead the Press Release
PORTLAND, Ore.—On February 12, 2019, Kenneth Wenberg, 72, a medical doctor from Heppner, Oregon, pleaded guilty to a single count of tax evasion. The government demonstrated it could prove Dr. Wenberg failed to report income resulting in a tax loss of approximately $187,000.
According to court documents, Dr. Wenberg created nominee entities to hide assets and income he personally earned while serving as a physician at the Morrow County Health District (MCHD) and Urgent Health Care Center (UHCC) in Heppner. Dr. Wenberg instructed MDHD and UHCC to make payments for services he performed directly to sham entities to avoid income tax liabilities. Dr. Wenberg opened numerous bank accounts and purchased real property in the names of his nominee entities. He also paid for his and his family’s personal living expenses out of the nominee accounts. Dr. Wenberg failed to report his income to the IRS, despite knowing he owed taxes.
Wenberg faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on June 6, 2019 before U.S. District Court Judge Marco A. Hernandez.
As part of the plea agreement, Wenberg has agreed to pay restitution to the IRS in the full amount of the tax loss as determined by the court after sentencing.
This case was investigated by IRS-Criminal Investigation (IRS-CI) and is being prosecuted by Clemon D. Ashley and Seth D. Uram, Assistant U.S. Attorneys for the District of Oregon.
The U.S. Attorney’s Office and IRS-CI remind Oregonians that tax day is Monday, April 15, 2019. For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the IRS website: https://www.irs.gov/help-resources
Gary Man Charged in Criminal Complaint with Distribution of Crack Cocaine, Possession with Intent to Distribute Crack Cocaine, and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
HAMMOND- Bryant Porter, 25, of Gary, Indiana, was charged in a criminal complaint with distribution of crack cocaine, possession with intent to distribute crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
The criminal complaint alleges that following Porter’s distribution of crack cocaine on four occasions, law enforcement executed a search warrant on his Gary residence and vehicle on February 13, 2019, and recovered approximately 65 gross grams of crack cocaine and twelve firearms.
U.S. Attorney Kirsch said, “This case represents teamwork and cooperation between law enforcement agencies. Our partnerships are some of the best and we will use them to focus on illegal narcotics and violent crime.”
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Drug Enforcement Administration and Porter County Multi-Enforcement Group. This case is being prosecuted by Assistant United States Attorney Caitlin M. Padula.
Garryowen man sentenced in assaultRead the Press Release
BILLINGS—Garryowen resident Tyrone Joe Oldelk, who admitted beating a person, was sentenced today to prison and to three years of supervised release, U.S. Attorney Kurt Alme said.
Oldelk, 30, pleaded guilty in October to assault resulting in substantial bodily injury of a dating partner.
U.S. District Judge Susan Watters presided. Judge Watters sentenced Oldelk to 24 months in prison and gave him credit for three months he served in tribal jail for the same offense, for a net sentence of 21 months.
Prosecutors said evidence showed that Oldelk assaulted the victim on Nov. 18, 2017 in Garryowen on the Crow Indian Reservation after he got drunk and the two began arguing. Oldelk punched, choked and kicked the victim on various parts of her body over several hours and stopped when another person entered the room. The beating resumed the next morning and stopped when the victim, attempting to defend herself, hit Oldelk in the face and broke his nose.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI.
XXX
Former U.S. Counterintelligence Agent Charged with Espionage on Behalf of Iran; Four Iranians Charged with a Cyber Campaign Targeting Her Former ColleaguesRead the Press Release
Monica Elfriede Witt, 39, a former U.S. service member and counterintelligence agent, has been indicted by a federal grand jury in the District of Columbia for conspiracy to deliver and delivering national defense information to representatives of the Iranian government. Witt, who defected to Iran in 2013, is alleged to have assisted Iranian intelligence services in targeting her former fellow agents in the U.S. Intelligence Community (USIC). Witt is also alleged to have disclosed the code name and classified mission of a U.S. Department of Defense Special Access Program. An arrest warrant has been issued for Witt, who remains at large.
The same indictment charges four Iranian nationals, Mojtaba Masoumpour, Behzad Mesri, Hossein Parvar and Mohamad Paryar (the “Cyber Conspirators”), with conspiracy, attempts to commit computer intrusion and aggravated identity theft, for conduct in 2014 and 2015 targeting former co-workers and colleagues of Witt in the U.S. Intelligence Community. The Cyber Conspirators, using fictional and imposter social media accounts and working on behalf of the Iranian Revolutionary Guard Corps (IRGC), sought to deploy malware that would provide them covert access to the targets’ computers and networks. Arrest warrants have been issued for the Cyber Conspirators, who also remain at large.
The announcement was made by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Executive Assistant Director for National Security Jay Tabb of the FBI, U.S. Treasury Secretary Steven Mnuchin, Special Agent Terry Phillips of the Air Force Office of Special Investigations, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office.
“Monica Witt is charged with revealing to the Iranian regime a highly classified intelligence program and the identity of a U.S. Intelligence Officer, all in violation of the law, her solemn oath to protect and defend our country, and the bounds of human decency,” said Assistant Attorney General Demers. “Four Iranian cyber hackers are also charged with various computer crimes targeting members of the U.S. intelligence community who were Ms. Witt’s former colleagues. This case underscores the dangers to our intelligence professionals and the lengths our adversaries will go to identify them, expose them, target them, and, in a few rare cases, ultimately turn them against the nation they swore to protect. When our intelligence professionals are targeted or betrayed, the National Security Division will relentlessly pursue justice against the wrong-doers.”
“This case reflects our firm resolve to hold accountable any individual who betrays the public trust by compromising our national security,” said U.S. Attorney Liu. “Today’s announcement also highlights our commitment to vigorously pursue those who threaten U.S. security through state-sponsored hacking campaigns.”
“The charges unsealed today are the result of years of investigative work by the FBI to uncover Monica Witt’s betrayal of the oath she swore to safeguard America’s intelligence and defense secrets” said Executive Assistant Director for National Security Tabb. “This case also highlights the FBI’s commitment to disrupting those who engage in malicious cyber activity to undermine our country’s national security. The FBI is grateful to the Department of Treasury and the United States Air Force for their continued partnership and assistance in this case.”
“Treasury is taking action against malicious Iranian cyber actors and covert operations that have targeted Americans at home and overseas as part of our ongoing efforts to counter the Iranian regime’s cyber-attacks,” said Treasury Secretary Steven Mnuchin. “Treasury is sanctioning New Horizon Organization for its support to the IRGC-QF. New Horizon hosts international conferences that have provided Iranian intelligence officers a platform to recruit and collect damaging information from attendees, while propagating anti-Semitism and Holocaust denial. We are also sanctioning an Iran-based company that has attempted to install malware to compromise the computers of U.S. personnel.”
“The alleged actions of Monica Witt in assisting a hostile nation are a betrayal of our nation’s security, our military, and the American people,” said Special Agent Phillips. “While violations like this are extremely rare, her actions as alleged are an affront to all who have served our great nation.”
“This investigation exemplifies the tireless work the agents and analysts of the FBI do each and every day to bring a complex case like this to fruition,’ said Assistant Director in Charge McNamara. “Witt's betrayal of her country and the actions of the cyber criminals - at the behest of the IRGC - could have brought serious damage to the United States, and we will not stand by and allow that to happen. The efforts by the Iranian government to target and harm the U.S. will not be taken lightly, and the FBI will continue our work to hold those individuals or groups accountable for their actions.”
According to the allegations contained in the indictment unsealed today:
Monica Witt’s Espionage
Monica Witt, a U.S. citizen, was an active duty U.S. Air Force Intelligence Specialist and Special Agent of the Air Force Office of Special Investigations, who entered on duty in 1997 and left the U.S. government in 2008. Monica Witt separated from the Air Force in 2008 and ended work with DOD as a contractor in 2010. During her tenure with the U.S. government, Witt was granted high-level security clearances and was deployed overseas to conduct classified counterintelligence missions.
In Feb. 2012, Witt traveled to Iran to attend the Iranian New Horizon Organization’s “Hollywoodism” conference, an IRGC-sponsored event aimed at, among other things, condemning American moral standards and promoting anti-U.S. propaganda. Through subsequent interactions and communications with a dual United States-Iranian citizen referred to in the indictment as Individual A, Witt successfully arranged to re-enter Iran in Aug. 2013. Thereafter, Iranian government officials provided Witt with a housing and computer equipment. She went on to disclose U.S. classified information to the Iranian government official. As part of her work on behalf of the Iranian government, she conducted research about USIC personnel that she had known and worked with, and used that information to draft “target packages” against these U.S. agents.
Iranian Hacking Efforts Targeting Witt’s Former Colleagues
Beginning in late 2014, the Cyber Conspirators began a malicious campaign targeting Witt’s former co-workers and colleagues. Specifically, Mesri registered and helped manage an Iranian company, the identity of which is known to the United States, which conducted computer intrusions against targets inside and outside the United States on behalf of the IRGC. Using computer and online infrastructure, in some cases procured by Mesri, the conspiracy tested its malware and gathered information from target computers or networks, and sent spearphishing messages to its targets. Specifically, between Jan. and May 2015, the Cyber Conspirators, using fictitious and imposter accounts, attempted to trick their targets into clicking links or opening files that would allow the conspirators to deploy malware on the target’s computer. In one such instance, the Cyber Conspirators created a Facebook account that purported to belong to a USIC employee and former colleague of Witt, and which utilized legitimate information and photos from the USIC employee’s actual Facebook account. This particular fake account caused several of Witt’s former colleagues to accept “friend” requests.
* * *
The case is being investigated by the FBI’s Washington Field Office with assistance from the Air Force Office of Special Investigations. The prosecution is being handled by Assistant U.S. Attorneys Deborah Curtis, Jocelyn Ballantine and Luke Jones of the U.S. Attorney’s Office for the District of Columbia with assistance from Trial Attorney Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section.
Former U.S. Counterintelligence Agent Charged with Espionage on Behalf of Iran; Four Iranians Charged with a Cyber Campaign Targeting Her Former ColleaguesRead the Press Release
WASHINGTON – Monica Elfriede Witt, 39, a former U.S. service member and counterintelligence agent, has been indicted by a federal grand jury in the District of Columbia for conspiracy to deliver and delivering national defense information to representatives of the Iranian government. Witt, who defected to Iran in 2013, is alleged to have assisted Iranian intelligence services in targeting her former fellow agents in the U.S. Intelligence Community (USIC). Witt is also alleged to have disclosed the code name and classified mission of a U.S. Department of Defense Special Access Program. An arrest warrant has been issued for Witt, who remains at large.
The same indictment charges four Iranian nationals, Mojtaba Masoumpour, Behzad Mesri, Hossein Parvar and Mohamad Paryar (the “Cyber Conspirators”), with conspiracy, attempts to commit computer intrusion and aggravated identity theft, for conduct in 2014 and 2015 targeting former co-workers and colleagues of Witt in the U.S. Intelligence Community. The Cyber Conspirators, using fictional and imposter social media accounts and working on behalf of the Iranian Revolutionary Guard Corps (IRGC), sought to deploy malware that would provide them covert access to the targets’ computers and networks. Arrest warrants have been issued for the Cyber Conspirators, who also remain at large.
The announcement was made by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Executive Assistant Director for National Security Jay Tabb of the FBI, U.S. Treasury Secretary Steven Mnuchin, Special Agent Terry Phillips of the Air Force Office of Special Investigations, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office.
“Monica Witt is charged with revealing to the Iranian regime a highly classified intelligence program and the identity of a U.S. Intelligence Officer, all in violation of the law, her solemn oath to protect and defend our country, and the bounds of human decency,” said Assistant Attorney General Demers. “Four Iranian cyber hackers are also charged with various computer crimes targeting members of the U.S. intelligence community who were Ms. Witt’s former colleagues. This case underscores the dangers to our intelligence professionals and the lengths our adversaries will go to identify them, expose them, target them, and, in a few rare cases, ultimately turn them against the nation they swore to protect. When our intelligence professionals are targeted or betrayed, the National Security Division will relentlessly pursue justice against the wrong-doers.”
“This case reflects our firm resolve to hold accountable any individual who betrays the public trust by compromising our national security,” said U.S. Attorney Liu. “Today’s announcement also highlights our commitment to vigorously pursue those who threaten U.S. security through state-sponsored hacking campaigns.”
“The charges unsealed today are the result of years of investigative work by the FBI to uncover Monica Witt’s betrayal of the oath she swore to safeguard America’s intelligence and defense secrets” said Executive Assistant Director for National Security Tabb. “This case also highlights the FBI’s commitment to disrupting those who engage in malicious cyber activity to undermine our country’s national security. The FBI is grateful to the Department of Treasury and the United States Air Force for their continued partnership and assistance in this case.”
“Treasury is taking action against malicious Iranian cyber actors and covert operations that have targeted Americans at home and overseas as part of our ongoing efforts to counter the Iranian regime’s cyber-attacks,” said Treasury Secretary Steven Mnuchin. “Treasury is sanctioning New Horizon Organization for its support to the IRGC-QF. New Horizon hosts international conferences that have provided Iranian intelligence officers a platform to recruit and collect damaging information from attendees, while propagating anti-Semitism and Holocaust denial. We are also sanctioning an Iran-based company that has attempted to install malware to compromise the computers of U.S. personnel.”
“The alleged actions of Monica Witt in assisting a hostile nation are a betrayal of our nation’s security, our military, and the American people,” said Special Agent Phillips. “While violations like this are extremely rare, her actions as alleged are an affront to all who have served our great nation.”
“This investigation exemplifies the tireless work the agents and analysts of the FBI do each and every day to bring a complex case like this to fruition,’ said Assistant Director in Charge McNamara. “Witt's betrayal of her country and the actions of the cyber criminals - at the behest of the IRGC - could have brought serious damage to the United States, and we will not stand by and allow that to happen. The efforts by the Iranian government to target and harm the U.S. will not be taken lightly, and the FBI will continue our work to hold those individuals or groups accountable for their actions.”
According to the allegations contained in the indictment unsealed today:
Monica Witt’s Espionage
Monica Witt, a U.S. citizen, was an active duty U.S. Air Force Intelligence Specialist and Special Agent of the Air Force Office of Special Investigations, who entered on duty in 1997 and left the U.S. government in 2008. Monica Witt separated from the Air Force in 2008 and ended work with DOD as a contractor in 2010. During her tenure with the U.S. government, Witt was granted high-level security clearances and was deployed overseas to conduct classified counterintelligence missions.
In Feb. 2012, Witt traveled to Iran to attend the Iranian New Horizon Organization’s “Hollywoodism” conference, an IRGC-sponsored event aimed at, among other things, condemning American moral standards and promoting anti-U.S. propaganda. Through subsequent interactions and communications with a dual United States-Iranian citizen referred to in the indictment as Individual A, Witt successfully arranged to re-enter Iran in Aug. 2013. Thereafter, Iranian government officials provided Witt with a housing and computer equipment. She went on to disclose U.S. classified information to the Iranian government official. As part of her work on behalf of the Iranian government, she conducted research about USIC personnel that she had known and worked with, and used that information to draft “target packages” against these U.S. agents.
Iranian Hacking Efforts Targeting Witt’s Former Colleagues
Beginning in late 2014, the Cyber Conspirators began a malicious campaign targeting Witt’s former co-workers and colleagues. Specifically, Mesri registered and helped manage an Iranian company, the identity of which is known to the United States, which conducted computer intrusions against targets inside and outside the United States on behalf of the IRGC. Using computer and online infrastructure, in some cases procured by Mesri, the conspiracy tested its malware and gathered information from target computers or networks, and sent spearphishing messages to its targets. Specifically, between Jan. and May 2015, the Cyber Conspirators, using fictitious and imposter accounts, attempted to trick their targets into clicking links or opening files that would allow the conspirators to deploy malware on the target’s computer. In one such instance, the Cyber Conspirators created a Facebook account that purported to belong to a USIC employee and former colleague of Witt, and which utilized legitimate information and photos from the USIC employee’s actual Facebook account. This particular fake account caused several of Witt’s former colleagues to accept “friend” requests.
* * *
The case is being investigated by the FBI’s Washington Field Office with assistance from the Air Force Office of Special Investigations. The prosecution is being handled by Assistant U.S. Attorneys Deborah Curtis, Jocelyn Ballantine and Luke Jones of the U.S. Attorney’s Office for the District of Columbia with assistance from Trial Attorney Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section.
Former Substance Abuse Treatment Counselor Pleads Guilty to Distribution of FentanylRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that David Reeves, 51, of Beckley, a former substance abuse treatment counselor, pled guilty to illegal distribution of fentanyl. Stuart commended the investigative work of the Drug Enforcement Administration.
As part of his plea, Reeves admitted that he had an inappropriate relationship with a patient at Charleston Treatment Center (CTC), where he worked as a counselor from 2016 through October 2018. Reeves admitted to giving the patient fentanyl patches he had stolen from his wife’s supply, and at the time he gave the patient the fentanyl, he knew the patient was being treated for opioid addiction at CTC.
“Those with a substance use disorder need treatment and support,” said United States Attorney Mike Stuart. “It is unconscionable and intolerable for anyone in a position to help those with substance use disorder to instead further feed their addiction.”
Reeves faces up to 20 years in prison when he is sentenced on May 15, 2019. United States District Judge Irene C. Berger is presiding over the case. Assistant United States Attorney Haley Bunn is handling the prosecution.
This prosecution is the result of the formation of the Opioid Fraud Abuse and Detection Unit (OFADU), a Department of Justice initiative that uses data to identify and prosecute individuals that are contributors to the national opioid crisis. The Southern District of West Virginia is one of 12 districts nationally to participate in the pilot program.
Follow us on Twitter: SDWVNews
###
Former Kanawha County Deputy Sheriff Sentenced for Lying to the FBIRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that former Kanawha County Deputy Sheriff Robert Dwight Evans, 52, of Boomer was sentenced today to three years of probation for lying to the FBI. Stuart commended the investigative efforts of the FBI and the Kanawha County Sheriff’s Department.
“A trusted law enforcement officer aiding and abetting a drug trafficking organization. Tragic,” said United States Attorney Mike Stuart. “No one is immune from the opioid epidemic. The brave men and women of law enforcement are on the front lines of this battle every single day. They are heroes on the front lines of this battle. Evan’s actions were reckless, dangerous, and risked the very lives of those he swore to protect.”
Evans pled guilty in October 2018, admitting that he lied to an FBI agent about buying opioid pain medication from a target of an FBI drug trafficking investigation. During the Spring and Summer of 2017, the FBI conducted an investigation of a large-scale drug trafficking organization operating in Kanawha and Fayette Counties. During that investigation, agents searched the telephone of one of the targets of investigation and recovered text messages between that dealer and Evans which revealed that Evans had been buying pills from that individual for several months. Agents also learned that Evans had run license plate numbers and Vehicle Identification Numbers (VINs) at the request of members and other associates of the organization.
On June 28, 2017, FBI agents confronted Evans at his residence and asked him about his involvement with the targets of the investigation. He admitted conducting license plate checks but denied buying pills from any member of the organization. The Kanawha County Sheriff’s Department launched an internal investigation of Evans during which he resigned his position.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Former Justice of West Virginia Supreme Court of Appeals Sentenced for FraudRead the Press Release
CHARLESTON, W.Va. -- Allen H. Loughry II, 48, of Charleston, West Virginia, a former Justice of the Supreme Court of Appeals of West Virginia, was sentenced to 24 months in prison by Senior United States District Judge John T. Copenhaver, Jr., announced United States Attorney Mike Stuart. Loughry was also ordered to pay restitution totaling $1,273 to the State of West Virginia and the Pound Civil Justice Institute. After an eleven-day trial in October 2018, a federal jury found Loughry guilty of one count of mail fraud, seven counts of wire fraud, and two counts of lying to the Federal Bureau of Investigation. Agents with the FBI and the West Virginia Commission on Special Investigations conducted the investigation.
“Today is an important day. It is important for the people of West Virginia, in restoring the confidence of our citizens in the West Virginia Supreme Court, and in reaffirming the rule of law and the administration of justice,” said United States Attorney Mike Stuart. “Our system proved that it works. Arguably more important than any other part of the criminal justice system, sentencing is a reflection of our values as a society. The goals of sentencing are inherently contradictory and always involve a balancing of competing goals. These three goals are deterrence, denunciation, and rehabilitation. I want to thank my prosecution team, defense counsel and the jury for their tireless but critical roles in ensuring a just and fair result. I reiterate my amazing respect for the majesty of our system of justice – albeit imperfect it is the finest system known to mankind and the envy of the world. The preservation of liberty is best maintained through the confidence of the people in our system of fair and equal justice.”
Stuart continued, “I said it before and I will say it again, there’s no such thing as a little bit of public corruption. It is a cancer that erodes the public’s confidence in government and undermines the rule of law. Integrity and honesty need not be exceptions but, rather, should be the standard we expect from our public servants. To quote Mr. Loughry, as stated in his book: ‘It is essential that people have the absolute confidence in the integrity and impartiality of our system of justice.’ Today, with the sentence of Mr. Loughry, our system of justice took a big step in furthering the people’s confidence.”
"Public corruption is a betrayal of the public's sacred trust," said FBI Special Agent in Charge Robert Jones. "There is no level of acceptable corruption. The FBI will work tirelessly to make sure those in power positions uphold the law and are held to the highest standards."
Loughry’s convictions resulted from fraudulent activity while he was a sitting Justice on the Supreme Court. The mail fraud conviction stemmed from his defrauding the Pound Civil Justice Institute of approximately $400 in the summer of 2014, when he claimed mileage to attend a conference in Baltimore, Maryland, as if he had driven his own personal vehicle when in fact he drove a Supreme Court vehicle. The seven wire fraud convictions related to Loughry’s using a government fuel card to buy gasoline for travel that was not official business. Two of those wire fraud convictions, Counts 5 and 10 of the Second Superseding Indictment, involved purchases of gasoline by Loughry late at night on a holiday or weekend, not long after he had already filled up the Supreme Court’s vehicle with gasoline upon returning from a trip. The remaining five convictions for wire fraud involved purchases of gasoline with a government fuel card and travel by Loughry in a Supreme Court vehicle to attend book-signing events at The Greenbrier Resort, for the book Loughry authored in 2006 about public corruption in West Virginia.
Loughry’s two convictions for lying to the FBI resulted from false answers he gave during an interview on March 2, 2018, by a Special Agent of the FBI. During that interview, Loughry claimed he never used a state vehicle for personal use and that he did not know that a desk he had in his home was a “Cass Gilbert desk” or even a desk anyone had ever claimed to be a Cass Gilbert desk.
AUSAs Philip H. Wright and R. Gregory McVey handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Former Jamestown Resident Charged with Receipt and Distribution of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Travis Sanders, 32, of North Richland Hills, Texas, formerly of Jamestown, NY, was arrested and charged by criminal complaint with receipt and distribution of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeremy V. Murray, who is handling the case, stated that according to the complaint, Homeland Security Investigations received a report from the Royal Canadian Mounted Police National Child Exploitation Center that an individual was communicating with a person with the username “Damion Forsberg” on Skype. The report indicated that “Forsberg” regularly shared pornography that sometimes included children in the content, and was believed to reside in Buffalo, NY or Florida. Subsequent investigation determined that “Forsberg” was actually the defendant, who resided at the time in Jamestown.
Law enforcement officers seized Sanders’ laptop and cellular telephone. A forensic examination of the defendant's laptop computer revealed images and videos of minors engaged in sexually explicit conduct. The preliminary examination of the phone did not immediately reveal visual depictions of minors engaged in sexually explicit conduct but did reveal social networking applications with the alias “Damion Forsberg.” Officers also discovered that the defendant was chatting with a self-proclaimed minor female in 7th grade, from whom he requested her Snapchat account.
Members of the public who have specific information related to this case are urged to contact the HSI Buffalo Office at 716-464-6070. HSI victim-witness specialists will be available to assist any parent or guardian should they need victim-related resources. If any members of the public have general questions or concerns regarding sexual abuse of children or would like guidance on how to discuss this issue with children, please call the Child Advocacy Program at 716-338-9844.
The defendant was arrested in Texas and made an initial appearance in the Northern District of Texas. Sanders is being detained and will be returned to the Western District of New York at a later date.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.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.
# # # #
Former Georgia Department of Corrections officer convicted of accepting bribes to smuggle contrabandRead the Press Release
ATLANTA - Jokelra Copeland has been convicted by a federal jury for accepting bribe payments to smuggle contraband, including illegal drugs, into Autry State Prison in Pelham, Georgia.
“It’s troubling that Copeland was willing to sell her oath of office by breaking the very laws she had only months before promised to enforce,” said U.S. Attorney Byung J. “BJay” Pak. “Smuggling contraband into our state prisons is a dangerous business. It compromises the safety of everyone in the prison – inmates, corrections officers and other employees. This type of conduct will not be tolerated. And this defendant will now be held accountable for her betrayal of the public trust.”
“Those who violate their sworn duties as prison officers for greed are a top priority for the FBI,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Copeland not only betrayed the institution she was sworn to protect, she also betrayed every hard working corrections officer who upholds their oath every day.”
“We are pleased to see that justice has been served on this individual for her role in jeopardizing the safe and secure operations of our facilities,” said GDC Interim Commissioner Timothy C. Ward. “Ridding our prisons of corrupt staff and shedding light on those who choose a path of dishonor continues to be one of our top priorities.”
According to U.S. Attorney Pak, the charges and other information presented in court: Copeland began work for the Georgia Department of Corrections (“GA DOC”) in 2014. She was assigned to work the overnight shift at Autry State Prison in Pelham, Georgia. Within months of being hired, Copeland conspired with inmates and other corrections officers to smuggle contraband into the prison.
On multiple occasions, the defendant smuggled marijuana to inmates by hiding the packages under her clothing as she passed through the prison’s security entrance. During a four-month period in mid-2015, Copeland accepted more than $13,000 in bribe payments from the family members of at least two inmates. Financial records showed that on at least eleven occasions bribe payments were sent to Copeland using international financial wire services.
Jokelra Copeland was one of 68 GA DOC officers who were arrested by the FBI in 2016 after an extensive federal investigation. The FBI investigation revealed that some GA DOC officers were willing to smuggle contraband into state prisons in exchange for bribes while other officers were willing to use their law enforcement credentials to protect drug deals occurring outside of the prisons.
Jokelra Copeland, 32, of Doerun, Georgia, will be sentenced before U.S. District Judge Amy Totenberg on May 1, 2019. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by the FBI.
Assistant U.S. Attorney and Deputy Chief of the Public Integrity and Special Matters section Brent Alan Gray and Assistant U.S. Attorney Bret R. Hobson are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Director of Corporate Law at Global Technology Company Charged with Insider TradingRead the Press Release
NEWARK, N.J. – The former corporate secretary and director of corporate law at a global technology company headquartered in Cupertino, California, was charged today with insider trading, U.S. Attorney Craig Carpenito announced.
Gene Levoff, 45, of San Carlos, California, was charged by criminal complaint with one count of securities fraud. He is scheduled to make his initial appearance in Newark federal court on Feb. 20, 2019.
According to documents filed in this case and statements made in court:
Between February 2011 and April 2016, Levoff – the top corporate attorney at “Company-1,” who also served the company’s assistant secretary and corporate secretary – engaged in a scheme to defraud the company and its shareholders. He allegedly misappropriated material, nonpublic information about Company-1’s financial results and then executed trades involving the company’s stock. The scheme allowed Levoff to realize profits of approximately $227,000 and to avoid losses of approximately $377,000.
Levoff used his position as a member/co-chairman of Company-1’s Disclosure Committee – which reviewed and discussed the company’s draft quarterly and yearly earnings materials and periodic U.S. Securities and Exchange Commission (SEC) filings before they were disclosed to the public – to obtain material, nonpublic financial information. Levoff used this confidential information by buying and selling stock in Company-1 ahead of its quarterly earnings announcements, which were issued to the public via press releases. When Levoff discovered that Company-1 had posted strong revenue and net profit for a given financial quarter, he purchased large quantities of stock, which he later sold for a profit once the market reacted to the news. When Levoff learned that Company-1 had posted lower-than-anticipated revenue and net profit, he sold large quantities of Company-1 stock, avoiding significant losses.
Levoff was subject to Company-1’s regular quarterly “blackout periods,” which prohibited individuals who had access to material nonpublic information from engaging in trades until a certain period after the company disclosed its financial results to the public. Levoff ignored this restriction, as well as the company’s broader Insider Trading Policy – which Levoff participated in revising – and instead repeatedly executed trades based on material, nonpublic information without the company’s knowledge or authorization. On several occasions, he executed trades within a blackout period after notifying other individuals subject to the restriction that they were prohibited from buying or selling Company-1 stock until the blackout period terminated.
For example, in July 2015, Levoff sold more than 77,000 shares of Company-1 stock in multiple accounts he controlled after he received Company-1’s draft earnings materials and draft SEC filing for the third quarter of financial year 2015 (Q3 2015) and after he participated in a Disclosure Committee meeting. By selling off his shares, Levoff avoided a loss of approximately $345,000 when Company-1 later publicly disclosed revenue and profit below what many analysts had predicted.
Levoff’s trades on other occasions resulted in profits of approximately $227,000; he also avoided additional losses of approximately $32,000.
The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Levoff today based on the same conduct.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the SEC for the assistance provided by its Enforcement Division and Company-1, which cooperated with law enforcement over the course of the investigation.
The government is represented by Senior Trial Counsel Jamari Buxton and Chief Daniel Shapiro of the U.S. Attorney’s Office’s Economic Crimes Unit.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Kevin H. Marino Esq., Chatham, New Jersey
Former Bookkeeper Sentenced for Embezzlement and Loan FraudRead the Press Release
NEWPORT NEWS, Va. – A former bookkeeper was sentenced today to over five years in prison for embezzling funds from a Newport News medical practice and then obtaining a fraudulent SBA-guaranteed loan using the identification information of her father.
According to court documents, Amanda Viglietta, 32, of Newport News, was employed as the bookkeeper for Advanced ENT & Allergy from April through December 2016. In the course of her employment, Viglietta forged her employer’s signature on checks from Advanced ENT’s TowneBank account and caused such checks to be issued to herself, her boyfriend and to other persons and businesses to whom and which she owed money. In an effort to conceal the fraud, Viglietta made fraudulent entries in the QuickBooks records of Advanced ENT and created fake invoices. Vigilietta also made unauthorized and fraudulent use of the credit/debit cards associated with Advanced ENT. Altogether, she fraudulently misappropriated funds in the approximate amount of $180,000 from Advanced ENT.
After the misappropriation from Advanced ENT came to light and Viglietta was terminated in December 2016, she established a limited liability company called Mumbling Mikes, LLC. In February 2017, using this entity, she made application and obtained a United States Small Business Administration (SBA) guaranteed loan from Celtic Bank, using identifying information of her father, without his knowledge or authorization. Viglietta obtained approximately $148,400 in loan funds and used large portions of this approved business loan on personal expenditures and obtaining cashier’s checks.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA), and Steve R. Drew, Chief of Newport News Police made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-36.
Former Blacksburg Doctor Sentenced on Federal Drug ChargesRead the Press Release
Roanoke, VIRGINIA – The former owner of the Virginia Vein Institute in Blacksburg was sentenced yesterday to 20 months in federal prison resulting from his conviction on nearly 70 federal drug charges for illegally obtaining 3,200 oxycodone pills, United States Attorney Thomas T. Cullen and the Virginia Attorney General’s Office announced.
Frank Purpera Jr., 44, of Blacksburg, was convicted following a four-day trial in February 2018 in U.S. District Court in Roanoke on 67 counts of obtaining controlled substances by fraud, one count of omitting material information required to be kept, and one count of making a false statement.
In addition to the 20-month period of incarceration, Purpera was also ordered to pay a fine of $34,000 and a $6,800 special assessment.
Evidence presented at trial by Assistant United States Attorneys Randy Ramseyer and Jennie L. M. Waering, and Virginia Assistant Attorney General and Special United States Attorney Nicole Terry, established that Purpera obtained 3,200 oxycodone pills and has no record of what happened to those pills. The defendant claimed to law enforcement the pills were used for procedures on his patients, however, further evidence at trial proved this to be untrue. Purpera later claimed to the Department of Health Professions that he gave all of the 3,200 oxycodone pills to his wife. Evidence presented by the United States during trial showed that it would be outside of the scope of Purpera’s practice to dispense those pills to his wife under the facts and circumstances of the case and, therefore, those distributions would have been illegal.
In addition, evidence presented at trial established that Purpera tampered with witnesses. The defendant advised two of his employees to say “I don’t recall” if questioned by the government. Purpera also showed a video clip from the film The Wolf of Wall Street to one of the employees. In the clip, characters from the film are dealing with a witness and stating, “I don’t recall.”
The investigation of the case was conducted by the Federal Bureau of Investigation, the Department of Health and Human Services-Office of the Inspector General, the Drug Enforcement Administration, the Virginia Attorney General’s Medicaid Fraud Control Unit and an Investigator with the United States Attorney’s Office. Assistant United States Attorneys Randy Ramseyer and Special Assistant United States Attorney Nicole Terry, a Virginia Assistant Attorney General assigned to the Virginia Attorney General’s Medicaid Fraud Control Unit, prosecuted the case for the United States.
Florida man admits to defrauding bank customersRead the Press Release
WHEELING, WEST VIRGINIA – Roger Ernesto Ballester Caser, of Hialeah, Florida, has admitted to using others’ bank information and personal identification numbers to make purchases, United States Attorney Bill Powell announced.
Caser, age 26, pled guilty to one count of “Access Device Fraud – Use of Unauthorized Access Device.” Caser admitted to using Main Street Bank of Wheeling’s customer banking information and PINs to make purchases totaling at least $1,000 in Ohio and Marshall Counties in March 2018.
The government is also seeking a money judgement of at least $13,600.
Caser is facing up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Federal Bureau of Investigation, the Ohio County Sheriff’s Office, the Wheeling Police Department, and the Moundsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Financial Advisor Who Pled Guilty to Embezzling More Than 3.7 Million Dollars from His Clients Sentenced to 9 Years in PrisonRead the Press Release
An Oakland County financial advisor who pled guilty last September to embezzling over 3.7 million dollars from his clients at UBS Financial Services, was sentenced by Judge Bernard Friedman to 9 years in prison yesterday, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Timothy R. Slater, Special Agent in Charge of the FBI, Detroit Field Office and Mark Clemens, Birmingham Police Chief.
John Maccoll, 65, of Rochester Hills, Michigan pled guilty to wire fraud in relation to the theft of approximately $3.7 million from his clients at UBS Financial Services (UBS) located in Birmingham, Michigan.
According to the plea agreement, Maccoll advised some of his clients at UBS to wire transfer money or write checks to his personal accounts in order to take advantage of investment vehicles which he claimed were not available through UBS. Subsequently, Maccoll would falsely tell the clients who sent money to his personal accounts that the funds they “invested” in were performing well and that they should send more money. Instead of investing the clients’ funds sent to his personal account, Maccoll converted these funds to his personal use. More than a dozen individuals who sought advice from Maccoll through UBS became victims of his scheme. It is estimated that these victims lost over $3.7 million during the period from April 2010 until March 2018.
United States Attorney Schneider stated, "Let this sentence be a deterrent to anyone who tries to take advantage of those who seek to invest their hard earned money for their retirement. Our office is committed to vigorously prosecute these types of economic crimes because of their damaging effect on our society.”
The case was investigated by the FBI’s Detroit Metro Identity Theft and Financial Crimes Task Force.
The case was prosecuted by Assistant U.S. Attorney Abed Hammoud with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.
Final Defendant Identified in FBI Safe Streets Task Force Investigation Admits Selling CocaineRead the Press Release
PITTSBURGH - A resident of Aliquippa, Pennsylvania, pleaded guilty in federal court to one count of distribution and possession with intent to distribute cocaine, United States Attorney Scott W. Brady announced today.
Rickee Dawkins, 52, pleaded guilty before Chief United States District Judge Mark R. Hornak on February 12, 2019.
Judge Hornak scheduled sentencing for June 7, 2019, at 1:30 p.m. The law provides for a total sentence of not more than 30 years in prison, a fine of not more than $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
Rickee Dawkins was the final remaining defendant identified in an investigation into the distribution of cocaine conducted by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF). The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI.
Federal Prison Cook Convicted of Conspiracy, Attempted Drug Distribution and Accepting a BribeRead the Press Release
FRESNO, Calif. — On Tuesday, a federal jury convicted David G. Bruce II, 32, of Merced, with conspiring to provide inmates with prohibited objects; attempting to possess marijuana and heroin with the intent to distribute; and taking a bribe as a public official, Special Agent in Charge James K. Cheng and U.S. Attorney McGregor W. Scott announced.
“The integrity and honesty of correctional officers are critical to the safety of our federal prisons. Our office strives to ensure that individuals who fail to uphold those values, like David Bruce, will be held accountable for their actions,” said James K. Cheng, Special Agent in Charge for the U.S. Department of Justice Office of the Inspector General’s Los Angeles Field Office.
According to court documents, Bruce was employed as a cook foreman at the United States penitentiary in Atwater (USP Atwater). Between May and December 2015, Bruce conspired with inmates and individuals outside the prison to introduce prohibited items, including marijuana and heroin, into USP Atwater and received at least $1,580 as payment. On December 15, 2015, Bruce drove to meet an individual he believed would give him drugs to be smuggled into the prison, but was instead met by federal agents.
This case is the product of an investigation by the Federal Bureau of Prisons and the Department of Justice Office of the Inspector General. Assistant U.S. Attorneys Vincenza Rabenn and Brian Delaney prosecuted the case.
Bruce faces a maximum statutory penalty of 20 years in prison and a $1 million fine for possessing a controlled substance with intent to distribute. The maximum statutory penalty for conspiring to commit an offense against the United States is five years in prison and a $250,000 fine. The maximum statutory penalty for a public official taking a bribe is 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Jury Finds Beaver Falls Man Guilty of Distributing Fentanyl and CocaineRead the Press Release
PITTSBURGH, PA - After deliberating for six hours, a federal jury found Anthony Taylor guilty of five counts of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Taylor, 35, formerly of Beaver Falls, Pennsylvania, was tried before United States District Judge Arthur J. Schwab in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Brendan T. Conway and Lee J. Karl, who prosecuted the case, the evidence presented at trial established that from 2016 to August 30, 2017 Taylor participated in a conspiracy to distribute substantial quantities of fentanyl and cocaine, mainly in the Beaver Falls area. On August 3, 2017, Taylor sold fentanyl to a confidential informant. On August 30, 2017, agents from the Pennsylvania Attorney General’s office, from the Beaver Falls Police Department, and law enforcement officers from other law enforcement agencies executed a search warrant at Taylor’s home. During that search, law enforcement seized more than forty grams of fentanyl, approximately ten grams of cocaine, adulterants, packaging material, a digital scale, more than $10,000 in cash, and cellular telephones.
Judge Schwab scheduled sentencing for June 11, 2019. The law provides for a total sentence of not less than five years and not more than 140 years in prison, a fine of $13,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Pennsylvania State Police, the Beaver Falls Police Department, the New Brighton Police Department and the Pennsylvania Attorney General’s Office conducted the investigation that led to the prosecution of Anthony Taylor.
Federal Jury Convicts a Tuscaloosa County Man of Possessing MethamphetamineRead the Press Release
A federal jury on Tuesday evening, convicted a Tuscaloosa County man of possessing methamphetamine, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco and Firearms and Explosives Special Agent in Charge Marcus Watson.
Following a two- day trial before U.S. District Court Judge L. Scott Coogler, a jury convicted Carlos Gabriel DeAza, 48, of possessing more than 50 grams of methamphetamine with the intention to distribute, possession of a gun in furtherance of a drug-trafficking crime, and possession of a firearm by a convicted felon. DeAza will be sentenced in June.
According to the evidence at the trial, agents of the West Alabama Narcotics Task Force executed a search warrant at DeAza’s home on May 31, 2018, where they found nearly 75 grams of pure methamphetamine, scales and bags for distribution, and four handguns. The methamphetamine was hidden inside of a shoe in the laundry room of the Holt-area home.
“Felons who have disregard for the law will be prime targets by federal law enforcement and will be taken out of our communities,” Town said. “We are committed to working with our federal, state and local law enforcement partners to find these criminals and send them to federal prison where there is no sanctuary for parole.”
“ATF’s Crime Gun Intelligence focuses on reducing violent crime and disrupting the shooting cycle that negatively impact our neighborhoods,” Watson said. “The priority of protecting the public is evident with the partnerships with the West Alabama Narcotics Task Force and the U. S. Attorney’s Office.”
The penalty for possessing with intent to distribute 50 grams or more of methamphetamine is a minimum of 10 years in prison.
The minimum penalty for possessing a gun in furtherance of a drug crime is 5 years in prison.
The maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison. Due to DeAza’s extensive criminal history, this sentence could be increased.
ATF investigated the case, along with the West Alabama Narcotics Task Force. Assistant United States Attorneys Melissa K. Atwood and Kristy Peoples prosecuted the case.
Federal Indictments Target South Los Angeles Street Gang Involved in Drug Trafficking, Extortion and Attempted MurderRead the Press Release
LOS ANGELES – Authorities have arrested 11 members and associates of the South Los Angeles-based Florencia-13 (F13) street gang on federal racketeering, narcotics and firearms charges. One of the indictments unsealed today alleges that defendants linked to the gang trafficked methamphetamine, heroin, cocaine and other drugs in their territory and attempted to smuggle narcotics into the state prison system.
Those arrested today are among 36 members and associates of the F13 gang named in six federal grand jury indictments. One of the indictments alleges that the gang is a criminal enterprise as defined by the Racketeer Influenced and Corrupt Organizations (RICO) Act. Twenty-six members and associates of the gang allegedly conspired to violate RICO and engaged in drug trafficking, illegal gambling, attempted murder and assault. The RICO indictment also alleges that the gang actively attempted to smuggle narcotics into the California state prison and Los Angeles County jail systems, including attempting to mail two shipments totaling 100 grams of heroin to an imprisoned Mexican Mafia member.
The lead defendant in RICO indictment – Leonel Laredo, a.k.a. “Wizard,” 47, who is currently incarcerated at a federal prison in Beaumont, Texas – allegedly directed F13’s operations in the unincorporated Florence-Firestone neighborhood of South Los Angeles, as well as parts of Lynwood, Maywood, Bell and other nearby communities. Laredo, who is serving a sentence for prior racketeering and drug convictions related to his F13 activities, is one of four members of the Mexican Mafia prison gang who allegedly had leadership roles in the gang. The indictment alleges that Laredo ran the street gang from prison with a goal of enriching himself, family members and associates through extortionate “taxes” taken from drug dealers and businesses in F13’s territory.
The RICO indictment also alleges that F13 members were responsible for the shooting and attempted murder of a rival gang member in South Los Angeles in December 2016. In April 2017, one defendant, Samuel Flores Mejia, a.k.a. “Menace,” shot and wounded a fellow F13 member to discipline him at one of the gang’s “casitas,” or illegal gambling houses.
A second indictment unsealed today alleges that five F13 members and associates, working out of a South Los Angeles hookah lounge, participated in a scheme to distribute methamphetamine. A third indictment charges two F13 members with being felons in possession of a firearm and ammunition, namely an AK-47-type rifle. The remaining three indictments charge three individual F13 members and associates with distributing of methamphetamine.
Out of the 36 defendants named in the six indictments, 11 were arrested today, 16 were already in custody, and authorities are searching for nine fugitives.
The defendants taken into custody this morning are scheduled to make their initial court appearance this afternoon in United States District Court.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was investigated by the Federal Bureau of Investigation and the Los Angeles Police Department. The California Department of Corrections and Rehabilitation provided substantial assistance. The Joint Regional Intelligence Center provided support during the investigation.
This case is being prosecuted by Assistant United States Attorney Christopher C. Kendall of the Organized Crime Drug Enforcement Task Force Section.
Farmington Hills Man Sentenced to 116 Months in Prison for Title-Washing SchemeRead the Press Release
A Farmington Hills man was sentenced to 116 months in prison yesterday for having devised and executed an elaborate vehicle title fraud scheme, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by U.S. Postal Inspector in Charge Patricia Armstrong.
According to court records, Solomon Israel, 60, of Farmington Hills, ran a business that fraudulently retitled vehicles worth hundreds of thousands of dollars. In carrying out his scheme, Israel obtained fraudulent Michigan titles that purported to give him “free and clear” ownership to vehicles that, in fact, had third-party security interests from financing companies. Israel then traveled to other states and used those false titles to acquire new out-of-state titles, thereby fraudulently extinguishing the third-party security interests. After obtaining the out-of-state titles, Israel returned to Michigan and resold many of the vehicles, ultimately causing hundreds of thousands of dollars in losses to the financing companies.
In carrying out his scheme, Israel falsely assumed the identity of an incarcerated man in Ohio. Israel also used that incarcerated man’s identity to engage in illicit banking transactions—conduct that resulted in additional convictions for bank fraud and aggravated identity theft.
“Our office is committed to aggressively investigating and prosecuting fraud in all of its forms,” stated United States Attorney Matthew Schneider. “Whether the victims are government authorities, private companies, or other individuals, we’ll hold criminals accountable when they choose to lie and cheat for their own financial gain.”
U.S. Postal Inspector in Charge Patricia Armstrong said, “Protecting the public is a key function for law enforcement. In fact, Postal Inspectors have protected Americans from those who use the U.S. Mail for fraudulent purposes since the passage of the Mail Fraud Statute in 1872. The sentencing of Solomon Israel demonstrates our continuing commitment to protect all citizens of the United States.”
Israel was sentenced by U.S. District Judge Mark A. Goldsmith. Judge Goldsmith ordered Israel to pay $616,087.00 in restitution.
The case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Andrew J. Yahkind
El Dorado Woman Sentenced to over 4 Years in Federal Prison for Wire Fraud and Possession of MethamphetamineRead the Press Release
El Dorado, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Meredith Atwell, age 39, of Huttig, Arkansas was sentenced February 13, 2019 to 54 months in federal prison followed by three years of supervised release on one count of Wire Fraud and one count of Possession of a Prohibited Object in Prison. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in El Dorado.
According to an Information filed by the United States Attorney, Atwell was employed by South Arkansas Substance Abuse treatment center (SASA) in 2015 when she began converting the non-profits for her personal use by printing out corporate checks and forging the signatures of SASA board members. Atwell continued this embezzlement from SASA into 2016 and stole over $140,000 from the non-profit before the financial condition of the company deteriorated and it finally closed.
The embezzlement from SASA came to light during the larger Western District of Arkansas United States Attorney’s Office investigation into the State of Arkansas’s General Improvement Fund (GIF) expenditures from Act 791 sponsored by State Senator Jon Woods in 2013. SASA had received over $600,000 in GIF funds from Act 791 in 2013 and the investigation into the expenditure of those funds revealed Atwell’s diversion of those funds for her own use.
While Atwell was incarcerated on charges relating to her plea to the wire fraud charges against SASA, she was also convicted of Possessing a Prohibited Object (methamphetamine) while in prison.
Atwell pled to guilty to an Information filed by the United States Attorney on August 24, 2017 on the wire fraud charges and pled guilty to a later Indictment on the Prohibited Object charge on August 9, 2018.
This case was investigated by the Union County Sheriff’s Department, the Federal Bureau of Investigation, the United States Marshal Service, and prosecuted by AUSA’s Ben Wulff.
Duquesne Man Sentenced to Prison for Package Theft Spree at Shadyside and North Oakland Apartment BuildingsRead the Press Release
PITTSBURGH, PA - A resident of Duquesne, PA, has been sentenced in federal court to fifteen months’ imprisonment and a three year term of supervised release, on his conviction of conspiracy and mail theft, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ron Matthew Sharp, 42.
According to information presented to the court, from February through May of 2018, Sharp, along with his co-defendant Christopher Carr, entered multiple apartment buildings in the Shadyside and North Oakland areas of Pittsburgh, and opened United States Postal Service packages or other mail items that were not addressed to them, stole packages, and stole items from within packages that had been left at authorized mail depositories. Defendants stole items from more than 40 victims, filling up trash bags, duffel bags, and backpacks with their loot. Defendants then provided items they had stolen from the mail, including gift cards, to others, who redeemed the gift cards at various locations, including Giant Eagle and GETGO. Defendants also re-sold, and instructed others to attempt to re-sell, items defendants had stolen from the mail. Christopher Carr is scheduled to be sentenced on March 12, 2019.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
The United States Postal Inspection Service and the United States Department of Homeland Security conducted the investigation leading to the successful prosecution of Ron Matthew Sharp.
Duo Charged with Conspiracy to Distribute Narcotics into Indiana Correctional FacilitiesRead the Press Release
Fort Wayne, IN – Two Allen County residents were recently indicted by a federal Grand Jury in the Northern District of Indiana. In the indictment, Calvin Jones, 37, and Diamond Parker, 28, were charged with participating in a conspiracy to smuggle illegal narcotics into correctional institutions located within Indiana.
The indictment alleges that beginning in August 2017, the defendants conspired to distribute 5-fluro ADB (a synthetic cannabinoid) to inmates in a correction institution. They also were each charged with one count on different dates of possessing with intent to distribute a detectable amount of 5-fluro ADB.
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of an investigation between the US Postal Inspection Service, the Indiana Department of Corrections, the Fort Wayne Police Department, the Allen County Sheriff’s Department, the United States Marshal’s Service and the FBI. This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
###
Dominican National Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – A Dominican national residing in Lynn pleaded guilty yesterday in federal court in Boston to Social Security fraud.
Kelvin Bautista Valdez, 32, pleaded guilty to one count of false representation of a Social Security number. U.S. District Court Judge Denise J. Casper scheduled sentencing for May 20, 2019. Bautista Valdez was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
Dubbed “Double Trouble,” the July 2018 investigation was aimed at detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On Jan. 20, 2015, Bautista Valdez, applied for a Massachusetts driver’s license using the name and Social Security number of a Puerto Rican citizen. He presented a Puerto Rican birth certificate and a Social Security card in the other person’s name to the Massachusetts Registry of Motor Vehicles as proof of his identity. Based on the application and supporting identity documents, Bautista Valdez was issued a driver’s license in the name of the Puerto Rican citizen.
The charge of false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Adam Schneider, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Dental Assistant Admits Unlawful Prescription Opioid Pain Pills DistributionRead the Press Release
CAMDEN, N.J. – A Pennsylvania woman today admitted unlawfully distributing prescription opioid pain medication in the Philadelphia and South Jersey areas, U.S. Attorney Craig Carpenito announced.
Nancy Ayres, 45, a/k/a “Nancy Esslinger,” of Upper Chichester, Pennsylvania, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging her with one count of distributing and possessing with intent to distribute oxycodone. Ayres was previously arrested and charged by criminal complaint on Aug. 27, 2018.
According to the documents filed in the case and statements made in court:
Ayres is a dental assistant and has worked in several dental offices in the Philadelphia area and neighboring states. Beginning in at least December 2017, Ayres obtained prescriptions in close proximity to each other for large quantities of oxycodone pills from at least three different medical professionals.
Between April 2018 and June 2018, Ayres allegedly sold 1,044 15- and 20-milligram oxycodone tablets. Ayres made representations that she could obtain other prescription medications for sale, including muscle relaxers and medications for pain management, erectile dysfunction, and anxiety.
The charge of unlawful oxycodone distribution carries a maximum penalty of 20 years of in prison and a fine of up to $1 million. Sentencing is scheduled for May 20, 2019.U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark; and the N.J. Attorney General’s Atlantic City Task Force, under the direction of Attorney General Gurbir S. Grewal, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division.
Defense counsel: David Jay Glassman Esq., Marlton, New Jersey
Dark Web Trafficker Convicted of Drug Importation ConspiracyRead the Press Release
Christopher Bantli pleaded guilty today in U.S. District Court for the District of Columbia to a conspiracy to import fentanyl into the United States, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division.
Bantli, 39, pleaded guilty before U.S. District Judge Amy Berman Jackson for the District of Columbia. Bantli had been extradited to the United States from Canada following his indictment in the District of Columbia. According to court records, beginning in or around Nov. 2015 and continuing through Sept. 8, 2016, Bantli advertised, distributed, and imported controlled substances, including powerful fentanyl analogues and synthetic opiates, through the encrypted website AlphaBay. Bantli accepted virtual currency such as Bitcoin as payment for the illegal substances, and used Canadian and U.S. mail to distribute the illicit substances to consumers. To assist with his distribution enterprise, Bantli used his apartment in Calgary, Canada, as a drug laboratory and de facto fulfillment center for the orders placed on his AlphaBay profile. Bantli’s apartment contained a pill press, packaging, cutting agents, as well as the controlled substances themselves.
Bantli will be sentenced on May 29 before Judge Berman Jackson.
The case was investigated by the DEA, in cooperation with Canadian law enforcement authorities. The U.S. Marshals Service provided critical assistance in Bantli’s extradition. The U.S. Department of Justice thanks the Government of Canada for its assistance in this case, in particular the Calgary Police Service Cybercrime Support Team. This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle, and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
Trial Attorneys Anthony Aminoff and Kaitlin Sahni of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) are prosecuting the case. Trial Attorney Brian Nicholson of the Department of Justice’s Office of International Affairs provided significant assistance in bringing Bantli to the United States and procuring foreign evidence during the investigation.
Columbia Woman Pleads to Federal Charge of Enticing Minor to Engage in Sexual ActivityRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that India Tykeyah-Najee Cuyler, a/k/a “Lady Tank,” age 24, of Columbia, South Carolina, pled guilty in federal court to using a facility of interstate commerce (a cell phone) to entice a minor under the age of 18 to engage in sexual activity.
Evidence presented in court established that on November 21, 2017, undercover officers with the Lexington Police Department encountered a minor advertising sex via a website. An undercover officer set up a time to meet with the minor at a local motel, wherein officers observed the minor being dropped off by Cuyler and Donnell Salethian Woodard. Officers placed Cuyler and Woodard under arrest. The investigation led to another nearby motel where a second minor, who was also involved in the illegal venture, was located. The investigation revealed Cuyler was using a cell phone to post advertisements for commercial sex with the minors on a website and taking a portion of the proceeds. Cuyler and Woodard were both charged federally.
Woodard’s case remains pending. All charges against Woodard are merely accusations, and he is presumed innocent until and unless proven guilty.
Cuyler faces a mandatory minimum sentence of 10 years in federal prison with a maximum of life, mandatory registration as a sex offender, and at least 5 years and up to a lifetime of supervised release.
United States District Judge J. Michelle Childs of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.
The case was investigated by the Federal Bureau of Investigation (FBI), the Lexington Police Department, and the West Columbia Police Department. It was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
Assistant United States Attorney Stacey D. Haynes of the Columbia office is prosecuting the case.
#####
Colorado Man Pleads Guilty to Enticing a Minor for Illicit SexRead the Press Release
KANSAS CITY, Mo. – A Colorado man pleaded guilty in federal court today to traveling to Kansas City, Mo., to meet an undercover FBI agent, whom he believed to be a mother with her 7-year-old daughter, for illicit sexual activity.
Ryan Edward Mausner, 42, of Basalt, Colo., pleaded guilty before U.S. District Judge Greg Kays to the online enticement of a minor.
By pleading guilty today, Mausner admitted that from Jan. 31 to May 25, 2018, he induced, enticed, and coerced a child victim to engage in criminal sexual activity. Mausner was actually communicating (via the Kik messaging application and texts) with an undercover FBI agent, who portrayed a single mother with a 7-year-old daughter.
Mausner admitted that he engaged the undercover agent in several private chat sessions in which he said he wanted to engage in sexual activity with the mother and daughter. These discussions entailed descriptions of the 7-year-old girl and an insistence, on Mausner’s part, that the mother and 7-year-old would call him “Sir.” Mausner described, in explicit detail, the sorts of sexual activity that he intended to perform on the 7-year-old when they met.
Mausner began communicating plans to either travel to Kansas City, Mo., or arrange for the travel of the mother and her daughter to come to Colorado. Mausner traveled by plane from Denver, Colo., to Kansas City, Mo., on May 25, 2018, with the intent to engage in criminal sexual activity with the child victim.
Under federal statutes, Mausner is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Colchester Woman Charged with Fraud Offense Stemming from Embezzlement SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven returned an indictment yesterday charging VICKI MILLER, 56, of Colchester, with one count of wire fraud stemming from an embezzlement scheme.
Miller was arrested this morning. Following her arrest, she appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $50,000 bond.
As alleged in the indictment, from approximately June 2017 until August 2018, Miller was employed as a bookkeeper by Greylock Property Group LLC and its owner. Beginning in approximately July 2017, Miller used her access to her employers’ bank accounts to embezzle their money by making withdrawals at ATMs, writing checks to herself, and transferring funds to her own accounts.
It is alleged that Miller stole more than $400,000 through this scheme.
If convicted of the charge in the indictment, Miller faces a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation with the assistance of the Town of Groton Police Department. The case is being prosecuted by Assistant U.S. Attorney Jonathan Francis.
Clay County Woman Pleads Guilty to FEMA FraudRead the Press Release
CHARLESTON, W.Va. – A Clay County woman pled guilty yesterday to embezzling over $18,000 in federal FEMA disaster benefits. The case was investigated by the United States Department of Homeland Security – Office of Inspector General (DHS-OIG) and the West Virginia Commission on Special Investigations.
Pamela Taylor, 57, admitted that she falsely registered for Federal Emergency Management Agency (FEMA) disaster benefits after the June 2016 flood in Clay County, West Virginia. Taylor claimed that her primary residence was damaged by the flood and that she was staying in a rental unit after the flood. In fact, her primary residence was undamaged, and she still resided there. Due to her false statements, she received more than $18,000 in FEMA benefits to which she was not entitled. In her plea agreement, Taylor agreed to pay restitution of $18,149.04.
“The flood was a natural disaster. Stealing from FEMA is a manmade disaster,” said United States Attorney Mike Stuart. “The floods of June 2016 were historic and devastating to thousands of West Virginians. Lives were lost. Too many of our brothers and sisters lost everything. FEMA dollars are critical but limited. Stealing critical FEMA dollars is a crime – literally and figuratively. Taylor’s fraud scheme diverted disaster benefits from our most desperate and vulnerable, those most in need of help. We take the solemn responsibility of ensuring FEMA dollars are used responsibly and legally. The public can rest assured that my office takes heinous acts like stealing from disaster relief funds very seriously and will prosecute each and every case brought to us to the maximum extent of the law.”
“Taking advantage of federal funds intended for disaster relief misappropriates taxpayer dollars, reduces monies available to true victims, and erodes public confidence in relief programs,” said Special Agent in Charge Mark Tasky of DHS-OIG. “In July 2016, after the good people of West Virginia were devastated by severe storms, flooding, landslides, and mudslides the month prior, the Defendant knowingly submitted a fraudulent application for disaster relief, in order to enrich herself and divert critical funds away from true disaster victims. The DHS-OIG, operating jointly with our partners in the West Virginia Commission on Special Investigations and the United States Attorney’s Office for the Southern District of West Virginia, worked tirelessly to bring the Defendant to justice for her crimes.”
Taylor faces up to 30 years in prison and a fine of up to $500,000 when she is sentenced on May 30, 2019. United States District Court Judge the Honorable Irene C. Berger presided over the plea hearing. Assistant United States Attorneys Stefan Hasselblad and Meredith George Thomas handled the prosecution.
Follow us on Twitter: SDWVNews
###