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Tuesday 10 July 2018
Florida Media Company Pleads Guilty to Bribing Soccer Officials | Spanish Parent Company Enters into Non-Prosecution AgreementRead the Press Release
Earlier today, in federal court in Brooklyn, US Imagina, LLC (“Imagina US”) pleaded guilty to a criminal information (the “Information”) charging it with two counts of wire fraud conspiracy in connection with the participation of two of its senior executives in schemes to pay more than $6.5 million in bribes to high-ranking officials of the Caribbean Football Union (“CFU”) and four Central American national soccer federations to secure media and marketing rights to those federations’ World Cup qualifier matches. Imagina US, which was previously known as MediaWorld, is a privately held Florida corporation engaged in the businesses of media content creation and audiovisual production, and also has a unit devoted to buying and selling the media and marketing rights to sports events, principally soccer matches. Imagina US is majority-owned by Imagina Media Audiovisual SL (“Imagina Media”), a privately held company based in Barcelona, Spain that is engaged worldwide in the businesses of media content creation, audiovisual production and the purchase and sale of media and marketing rights to sporting events. Also today, Imagina Media, which is also known as MediaPro, entered into a non-prosecution agreement with the government in connection with one its three co-Chief Executive Officers’ (“co-CEOs”) participation in this criminal conduct.
Pursuant to a plea agreement with the government, Imagina US agreed to forfeit $5,279,000 in criminal proceeds from these schemes. Imagina US was also sentenced to pay $3 million in restitution to the CFU, $1.7 million in restitution to the Honduran soccer federation (“FENAFUTH”), $790,000 in restitution to the Guatemalan soccer federation (“FENAFUTG”), $600,000 in restitution to the Costa Rican soccer federation (“FEDEFUT”), and $565,000 in restitution to the Salvadoran soccer federation (“FESFUT”). Imagina US was further sentenced to pay a fine of $12,883,320, which Imagina Media agreed to pay on behalf of Imagina US pursuant to the non-prosecution agreement. Today’s guilty plea and sentencing proceedings took place before United States District Judge Pamela K. Chen.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and R. Damon Rowe, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS CI), announced the guilty plea and non-prosecution agreement.
“Corporations that operate in the United States have a responsibility to ensure that their officers do not engage in corrupt conduct and to take steps to root out corrupt conduct as soon as they are put on notice of it,” stated U.S. Attorney Donoghue. “Those that fail to do so will face significant consequences, while those that effectively remediate will receive positive consideration.”
“Using bribery as part of your business plan is a well-known red flag, and this behavior has no place as part of any legitimate business strategy,” stated FBI Assistant Director-in-Charge Sweeney. “US Imagina, LLC is paying the penalty for their activity which only contributes to the erosion of trust between businesses and their clients. We will continue to bring dishonest companies to justice, and hope this plea serves as an example to other corporations who think they can operate using similar moves.”
“Today’s guilty plea is a clear demonstration of IRS Criminal Investigation’s continued commitment to dismantling the corruption that has plagued the world of international soccer,” stated IRS-CI Special Agent-in-Charge Rowe. “Working with our partners at the Department of Justice, we will continue to investigate corporate entities that profit from crooked practices and use the U.S. financial system in the process.”
The Criminal Schemes
According to facts presented during court proceedings in this case and in related cases, the Imagina US and Imagina Media senior executives bribed soccer officials in the Confederation of North, Central America and Caribbean Association Football (“CONCACAF”) region in exchange for the media and marketing rights to World Cup qualifier matches. The executives often used false invoices and contracts to disguise the true nature of the bribe payments and, for the same reason, they often transmitted the bribes through bank accounts held by intermediaries in third countries.
With respect to the bribery scheme related to the CFU’s World Cup qualifier rights, one of Imagina Media’s three co-CEOs (identified as Co-Conspirator #1 in the Information) agreed that Imagina Media would be responsible for paying half of a $3 million bribe that Imagina US’s then-partner, the Miami-based sports marketing company Traffic USA, had previously agreed to pay Jeffrey Webb, a senior official of the CFU and the president of CONCACAF. The $3 million bribe was in exchange for a contract awarding Traffic USA the media and marketing rights to CFU members’ home World Cup qualifier matches for the 2018 and 2022 qualification cycles. Co-Conspirator #1 and Imagina US’s CEO, Roger Huguet, then made a $500,000 payment towards Imagina US’s $1.5 million share of the bribe by having an intermediary send a false invoice from a Panamanian shell company to Imagina Media’s Portuguese subsidiary, Medialuso. Co-Conspirator #1 then directed senior executives at Imagina Media and Medialuso, both of whom reported to Co-Conspirator #1, to make the payment.
Many of the executives and soccer officials who paid or received the bribes described in the Information, and their intermediaries, have already pleaded guilty to participating in these bribery schemes, including Roger Huguet, Fabio Tordin, Miguel Trujillo, Jeffrey Webb, Costas Takkas, Alfredo Hawit, Rafael Callejas, Brayan Jiménez, Héctor Trujillo and Eduardo Li. Reynaldo Vasquez of the Salvadoran soccer federation has been indicted for receiving bribes as part of this scheme but has not yet appeared before the Court. Traffic USA has also pleaded guilty.
Imagina Media’s Initial Failure to Conduct an Internal Investigation
On May 27, 2015, an indictment in the Eastern District of New York captioned United States v. Jeffrey Webb et al., 15-CR-252 (PKC) (the “First Indictment”) was unsealed. The First Indictment charged Webb and others with participating in the CFU World Cup qualifiers scheme and also alleged that additional, anonymized co-conspirators were involved in the scheme. According to the non-prosecution agreement, within days after the First Indictment was unsealed, Imagina Media’s senior management knew that these additional anonymized co-conspirators were Co-Conspirator #1 and Huguet, and that Imagina Media had been anonymously identified in the First Indictment as “Sports Marketing Company C.” Co-Conspirator #1 denied to other members of Imagina Media’s senior management that he had been involved in a scheme to pay bribes to Webb or anyone else.
For months after the First Indictment was unsealed, Imagina Media’s management did not conduct an internal investigation or make any serious inquiry to determine whether any of the allegations in it relating to Co-Conspirator #1 or Huguet were true. In July 2015, Imagina Media issued a press release, in English and Spanish, in which it denied that there was any evidence that it was the “Sports Marketing Company C” named in the First Indictment, even though it knew that it was in fact Sports Marketing Company C. In the same press release, Imagina Media denied that it paid any bribes.
In December 2015, promptly after a superseding indictment and the guilty pleas of Huguet and Imagina US executive Fabio Tordin were unsealed, Imagina Media suspended and then terminated Co-Conspirator #1, Huguet, and Tordin, and retained counsel to conduct an internal investigation.
The Non-Prosecution Agreement
Pursuant to the non-prosecution agreement it entered today, Imagina Media has accepted responsibility for its criminal conduct and that of its subsidiary Imagina US, and has also accepted responsibility for its failure to conduct a prompt internal investigation upon learning of the allegations against its agents in the First Indictment. Imagina Media has accepted responsibility by, among other things: (a) causing Imagina US to plead guilty to the two counts in the Information and honor all of the terms of Imagina US’s plea agreement with the government, and (b) agreeing to pay the criminal penalty of $12,883,320 imposed on Imagina US as part of its sentence. In consideration of this acceptance of responsibility, Imagina Media’s remedial actions to date, including the termination of Co-Conspirator #1, Roger Huguet and Fabio Tordin and the hiring of a new CEO, Chief Financial Officer and General Counsel, among others, at Imagina US, and its commitment to, among other things: (a) accept and acknowledge responsibility for its conduct; (b) continue its cooperation; (c) implement enhanced internal controls and a rigorous corporate compliance program that includes policies and procedures at Imagina US, Imagina Media and Imagina Media’s other subsidiaries and affiliates designed to detect and deter violations of all applicable federal, state and foreign anti-corruption laws, the government entered a non-prosecution agreement with Imagina Media and agreed to a 10 percent reduction from the low end of the applicable Sentencing Guidelines fine range. If Imagina Media violates the non-prosecution agreement, it is subject to full criminal prosecution.
The guilty plea and non-prosecution agreement announced today are part of an investigation into corruption in international soccer led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Money Laundering and Asset Recovery Section, and the Fraud Section, as well as from INTERPOL Washington.
The government’s case is being handled by the Office’s FIFA Task Force and the Business and Securities Fraud Section. Assistant United States Attorneys Paul Tuchmann, David Pitluck, Samuel P. Nitze and Brian D. Morris of the Eastern District of New York are in charge of the prosecution.
The government’s investigation is ongoing.
The Defendant:
US IMAGINA, LLC
Place of Organization: FloridaE.D.N.Y. Docket No. 18-CR-311 (PKC)
Flight Attendant Pleads Guilty to Airport Security Violations and Unlicensed Money TransmittingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SCOTT McKINNEY, a former flight attendant, pled guilty today to conspiring both to violate airport security requirements and to operate an unlicensed money transmitting business.
U.S. Attorney Geoffrey S. Berman said: “Scott McKinney abused his privileges as an airline employee, including misusing the known crewmember lane, to smuggle bulk cash through security and then across the country, in furtherance of an illegal money transmitting business. McKinney’s scheme is now grounded, and he faces the possibility of time in a federal prison.”
According to the Complaint, Indictment, and other documents filed in the case, as well as statements made during the plea proceedings:
Between July and November 2017, McKINNEY, a flight attendant based in California, conspired with others to operate an unlicensed money transmitting business and to violate airport security requirements. On several occasions, McKINNEY flew from California to New York to pick up packages containing $50,000 or more in cash at JFK Airport or other locations in New York City. McKINNEY then flew back to California with the cash. On some of these occasions, McKINNEY was on the ground at JFK Airport for two hours or less before flying back to California. At the time of these trips, McKINNEY did not have a money transmitting license in New York or California, and was not registered as a money transmitter with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network. In a statement to agents of Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) on or about September 15, 2017, McKINNEY admitted that he was aware of the licensing requirement and lacked such a license.
To facilitate his illegal money transmitting business, McKINNEY used the Known Crewmember (“KCM”) lane to bypass regular airport security screening. The KCM lane allows approved airline crewmembers to pass through security more quickly and, typically, without having their carry-on luggage screened. On several occasions, McKINNEY wore his crewmember uniform and used the KCM security lane – even though he was not working on those occasions – to smuggle bulk cash through airport security.
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McKINNEY, 49, of San Diego, California, pled guilty to one count of conspiring both to violate airport security requirements and to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. McKINNEY is scheduled to be sentenced by Judge Failla on October 31, 2018, at 3:30 p.m.
Mr. Berman praised HSI for its outstanding work on this case.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Five Aliens Indicted on Charges for Illegal Reentry, Unlawful and Illegal Alien in Possession of a Firearm, and Other Mutltiple Federal OffensesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ABEL CARLOS ANGELES-MORALES, age 31, of Mexico, BERNARDO VILLALBA-QUITERIO, age 29, of Mexico, and OSCAR OBDULIO LOPEZ-GARCIA, age 53, of Guatemala, with illegal reentry of a deported alien. Additionally, a federal grand jury in Raleigh has returned superseding indictments charging FAOZI SALEH ALAYAH, age 32, of Yemen, with unlawful and illegal alien in possession of a firearm and false statement in an immigration proceeding, and MIGUEL RAIMUNDO RODRIGUEZ, age 45, of Cuba, with misuse of a Social Security account number, false claim of United States citizenship with intent to engage unlawfully in employment and obtain a benefit or service in the United States, and aggravated identity theft.
If convicted of illegal reentry of a deported alien, ANGELES-MORALES, previously deported three times and found in Wake County, and VILLALBA-QUITERIO, previously deported twice and found in Tyrrell County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry subsequent to a felony conviction (sale of a controlled substance), LOPEZ-GARCIA, previously deported four times and found in Lenoir County, would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of unlawful and illegal alien in possession of a firearm and false statement in an immigration proceeding, ALAYAH, found in Halifax County, would face a maximum imprisonment term of 15 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of misuse of a Social Security account number, false claim of United States citizenship with intent to engage unlawfully in employment in the United States and obtain a benefit or service, and aggravated identity theft, RODRIGUEZ, found in Cumberland County, would face a maximum imprisonment term of 36 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments and superseding indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations, and Homeland Security Investigations.
Federal Inmate Charged with Illegally Possessing Buprenorphine in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named Ramon Santiago-Sandoval, 27.
According to the indictment presented to the court, on October 23, 2017, Santiago-Sandoval possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Rodriguez-Melendez.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Sherri A. Lydon stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Greenville Resident Indicted on Fraud and Related Activity in Connection with Access Devices. Marius Zegrean , age 32, of Greenville, South Carolina, was charged in a 1-count indictment with Fraud and Related Activity in Connection with Access Devices, a violation of Title 18, United States Code, Section, 1029(a)(5). The maximum penalty Zegrean could receive is 15 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Felon Indicted for Illegally Possessing Crack Cocaine and PistolsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The indictment named Leon E. Szewczyk, 34, of Johnstown, Pa.
According to the indictment presented to the court, on April 6, 2018, Szewczyk possessed with the intent to distribute more than 28 grams of cocaine base, commonly known as "crack," and a quantity of fentanyl. Also, on April 6, 2018, he was found in possession of a loaded Raven ArmsModel MP25, .25 caliber semi-automatic pistol and a Ruger, Model LCP, .380 caliber semi-automatic pistol. On Nov. 2, 2010, Szewczyk was convicted in United States District Court for the Western District of Pennsylvania, of drug trafficking, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum sentence of 70 years in prison and a fine of $6,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Szewczyk.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
FCI-Loretto Inmate Charged with Possessing Prohibited Substance in PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named Dilpreet Singh, 33.
According to the indictment presented to the court, on July 14, 2017, Singh possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Rodriguez-Melendez.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Man Charged with Receiving and Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count indictment named Mark Anthony Prindle, 24, 1534 Taki Drive, Erie, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Prindle received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations and the Millcreek Police Department 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.
Elk Grove Man Sentenced to 22 Years in Prison for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. —Alexander Jordan Miller, 22, of Elk Grove, was sentenced today to 22 years in prison for producing child pornography, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “Miller was a social media predator who spent hours searching for victims who were old enough to know how to use social media, but young enough to be susceptible to his extortion scheme. Rather than physical force, he used fear to compel girls to create the videos he demanded. Today’s sentence rightly takes into account the physical and psychological pain he inflicted on the young, vulnerable victims.”
“This case highlights the critical importance of educating children about safe and responsible internet use,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Miller used the anonymity of the internet to his advantage and used coercive threats, blackmail, and shame to put his young victims in impossible situations. The impact of Miller’s despicable behavior on his victims cannot be overstated. The FBI is committed to unmasking those who use the internet to exploit the innocence of our nation’s children. We hope Miller’s sentencing serves as caution to families about internet safety and as a message to would-be offenders that such crimes will not go undetected.”
According to court documents, in 2015, Miller, under various pseudonyms, used social media and a messaging app to persuade minor victims to take and then send nude photos of themselves engaged in sexually explicit conduct. In each instance, after Miller obtained one or more nude photos of the victim, Miller demanded that the victim provide additional, and increasingly graphic, nude videos and photos. Miller told each victim that if she did not provide more nude videos or photos, he would send the victim’s friends and family the explicit photos that the victim provided previously, or he threatened to post the victim’s photos on the internet. As part of this extortion scheme, Miller used at least 12 minor victims to produce child pornography. One of the victims was 11 years old at the time of the offense.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Electrical Engineer Found Guilty for Intending to Convert Trade Secrets from Defense ContractorRead the Press Release
A federal jury in Hartford, Connecticut yesterday returned guilty verdicts against a man for his conduct related to a scheme to convert trade secrets belonging to a defense contractor based in Groton, Connecticut, related to, among others, an innovative naval prototype being developed for the U.S. Navy, Office of Naval Research, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney John H. Durham of the District of Connecticut.
According to evidence admitted at trial, Jared Dylan Sparks, 35, of Ardmore, Oklahoma, an electrical engineer, worked at LBI Inc., a defense contractor that has designed and built unmanned underwater vehicles for the U.S. Navy’s Office of Naval Research and deployable ice buoys used to gather weather data for the National Oceanic and Atmospheric Administration (NOAA). During the course of his employment with LBI, Sparks collaborated with Charles River Analytics (CRA), a Massachusetts-based software company that developed software to be integrated into LBI’s unmanned underwater vehicles. In late 2011, CRA sought to expand into the hardware business and eventually agreed with the Office of Naval Research that it would complete the testing for a number of the unmanned vehicles designed and developed by LBI. Sometime after April 2011, Sparks began exploring employment with CRA, and was eventually hired by that company in January 2012. Before he left LBI, however, Sparks surreptitiously uploaded thousands of LBI files to his personal account with Dropbox, a cloud-based file-storage application. Those files included LBI’s accounting and engineering files as well as photographs related to designs and renderings used to fabricate and manufacture LBI’s unmanned underwater vehicles and buoys.
On Nov. 3, 2016, a grand jury returned a 29-count indictment charging Sparks and Jay Williams of Griswold, Connecticut, with various offenses stemming from this alleged scheme.
The jury found Sparks guilty of six counts of theft of trade secrets, six counts of upload of trade secrets, and one count of transmission of trade secrets. Each of these offenses carry a maximum term of imprisonment of 10 years. The jury found Sparks not guilty of multiple counts of the indictment, and Williams not guilty of all the counts in which he was charged. Sparks’ sentencing has not yet been scheduled.
“Jared Sparks stole thousands of documents—including proprietary designs and renderings—from his former employer when he left to work for a competitor,” said Acting Assistant Attorney General John P. Cronan. “Yesterday’s verdict sends a clear message that the Department of Justice is committed to protecting American intellectual property and will aggressively prosecute those who steal it.”
“In order to protect both our country’s national security and the intellectual property of Connecticut’s defense contractors, our office is committed to prosecuting those who steal trade secrets and hope to profit from the theft,” said U.S. Attorney Durham.
“Theft of trade secrets from a Defense contractor harms the U.S. taxpayer and threatens the integrity of the Defense Department's procurement system,” said Special Agent-in-Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS is committed to working with the DOJ, FBI and other law enforcement partners, to investigate and prosecute those individuals who seek to profit at the expense of our national security.”
"Intellectual property theft cost U.S. businesses billions in revenue annually and robs the nation of jobs and taxes," said FBI Acting Special Agent in Charge Robert Fuller. "Preventing intellectual property theft is a priority of the FBI's criminal investigative program. The key to this successful prosecution was due to linking considerable resources and collaboration of the private sector, federal law enforcement partners, the U.S. Attorney's office and the Criminal Division's Computer Crime and Intellectual Property Section."
This matter was investigated by DCIS and the FBI with assistance from the Department of Defense’s Computer Forensic Laboratory. The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss of the District of Connecticut and Trial Attorneys Kebharu Smith and Joss Nichols of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), with assistance from the CCIPS Cybercrime Lab.
Electrical Engineer Found Guilty for Intending to Convert Trade Secrets from Defense ContractorRead the Press Release
WASHINGTON – A federal jury in Hartford, Connecticut yesterday returned guilty verdicts against a man for his conduct related to a scheme to convert trade secrets belonging to a defense contractor based in Groton, Connecticut, related to, among others, an innovative naval prototype being developed for the U.S. Navy, Office of Naval Research, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney John H. Durham of the District of Connecticut.
According to evidence admitted at trial, Jared Dylan Sparks, 35, of Ardmore, Oklahoma, an electrical engineer, worked at LBI Inc., a defense contractor that has designed and built unmanned underwater vehicles for the U.S. Navy’s Office of Naval Research and deployable ice buoys used to gather weather data for the National Oceanic and Atmospheric Administration (NOAA). During the course of his employment with LBI, Sparks collaborated with Charles River Analytics (CRA), a Massachusetts-based software company that developed software to be integrated into LBI’s unmanned underwater vehicles. In late 2011, CRA sought to expand into the hardware business and eventually agreed with the Office of Naval Research that it would complete the testing for a number of the unmanned vehicles designed and developed by LBI. Sometime after April 2011, Sparks began exploring employment with CRA, and was eventually hired by that company in January 2012. Before he left LBI, however, Sparks surreptitiously uploaded thousands of LBI files to his personal account with Dropbox, a cloud-based file-storage application. Those files included LBI’s accounting and engineering files as well as photographs related to designs and renderings used to fabricate and manufacture LBI’s unmanned underwater vehicles and buoys.
On Nov. 3, 2016, a grand jury returned a 29-count indictment charging Sparks and Jay Williams of Griswold, Connecticut, with various offenses stemming from this alleged scheme.
The jury found Sparks guilty of six counts of theft of trade secrets, six counts of upload of trade secrets, and one count of transmission of trade secrets. Each of these offenses carry a maximum term of imprisonment of 10 years. The jury found Sparks not guilty of multiple counts of the indictment, and Williams not guilty of all the counts in which he was charged. Sparks’ sentencing has not yet been scheduled.
“Jared Sparks stole thousands of documents—including proprietary designs and renderings—from his former employer when he left to work for a competitor,” said Acting Assistant Attorney General John P. Cronan. “Yesterday’s verdict sends a clear message that the Department of Justice is committed to protecting American intellectual property and will aggressively prosecute those who steal it.”
“In order to protect both our country’s national security and the intellectual property of Connecticut’s defense contractors, our office is committed to prosecuting those who steal trade secrets and hope to profit from the theft,” said U.S. Attorney Durham.
“Theft of trade secrets from a Defense contractor harms the U.S. taxpayer and threatens the integrity of the Defense Department's procurement system,” said Special Agent-in-Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS is committed to working with the DOJ, FBI and other law enforcement partners, to investigate and prosecute those individuals who seek to profit at the expense of our national security.”
"Intellectual property theft cost U.S. businesses billions in revenue annually and robs the nation of jobs and taxes," said FBI Acting Special Agent in Charge Robert Fuller. "Preventing intellectual property theft is a priority of the FBI's criminal investigative program. The key to this successful prosecution was due to linking considerable resources and collaboration of the private sector, federal law enforcement partners, the U.S. Attorney's office and the Criminal Division's Computer Crime and Intellectual Property Section."
This matter was investigated by DCIS and the FBI with assistance from the Department of Defense’s Computer Forensic Laboratory. The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss of the District of Connecticut and Trial Attorneys Kebharu Smith and Joss Nichols of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), with assistance from the CCIPS Cybercrime Lab.
Desloge Man Pleads Guilty to Bank Robberies, Faces 30 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – A Desloge, Mo., man, who was arrested after a high-speed chase in Callaway County, Mo., pleaded guilty in federal court today to two separate indictments that charge him with robbing four banks and with illegally possessing a firearm.
James Todd Hulsey, 53, pleaded guilty before U.S. Chief Magistrate Judge Matt J. Whitworth to one count of bank robbery involving Adams Dairy Bank in Blue Springs, Mo., in which he brandished a loaded firearm. Hulsey also pleaded guilty to the charges contained in a separate indictment, related to three additional bank robberies in Springfield, Ill.
Hulsey admitted that he robbed Adams Dairy Bank, 651 N.E. Coronado Dr., Blue Springs, on Oct. 14, 2016. Hulsey approached the teller counter at approximately 12:15 p.m., displayed a loaded Diamondback Arms 9mm pistol, presented a demand note to the teller and threatened to kill her. The teller turned over $7,845 and Hulsey fled from the bank on foot. Descriptions of the robber and the associated vehicle used in the robbery were broadcast to law enforcement agencies.
A couple of hours later, a state trooper saw Hulsey’s vehicle traveling eastbound on I-70 in Callaway County, Mo., and attempted to stop the vehicle. A vehicle pursuit ensued, reaching speeds over 120 miles per hour. Hulsey’s vehicle got a flat tire and ran off the road. Hulsey fled from the vehicle on foot and a 75-yard foot pursuit took place before Hulsey was taken into custody. The pistol was found inside Hulsey’s vehicle; officers also saw U.S. currency blowing out of the driver’s side door of the vehicle as well as located throughout the front passenger compartment of the vehicle.
Hulsey also admitted that he stole $13,634 from Chase Bank in Springfield, Ill., on Sept. 28, 2016. He stole $4,750 from PNC Bank in Springfield, Ill., on Oct. 3, 2016. He stole $2,104 from Chase Bank in Springfield, Ill., on Oct. 7, 2016. Hulsey provided the teller with a note indicating that he was robbing the bank in each of the three robberies and implied that force would be used if necessary. During the Oct. 7, 2016, robbery a semi-automatic handgun can be seen in Hulsey’s hand in a video recording of the robbery.
Under the terms of today’s plea agreement, the U.S. Attorney for the District of Kansas agrees not to file charges based upon Hulsey committing a bank robbery on Sept. 23, 2016, at First National Bank, 4650 College Blvd., Overland Park, Kan.; however, Hulsey must pay the restitution related to this uncharged bank robbery.
Hulsey has five prior felony convictions for bank robbery and felony convictions for an illegal weapon and for receiving stolen property.
Under the terms of today’s plea agreement, Hulsey will be sentenced to 30 years in federal prison without parole and must pay restitution to each of the victim banks. 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. Attorneys Emily A. Morgan, Western District of Missouri, Greg Gilmore, Central District of Illinois and Leon Patton, District of Kansas. It was investigated by the FBI, the Blue Springs, Mo., Police Department, the Missouri State Highway Patrol, the Callaway County, Mo., Sheriff’s Department, the Boone County, Mo., Sheriff’s Department, the Springfield, Ill., Police Department and the Overland Park, Kan., Police Department.
DBSI Defendants Detained Pending Prison DesignationRead the Press Release
BOISE - After a hearing before her this morning, United States Magistrate Judge Candy W. Dale ordered Defendants Douglas L. Swenson, Mark A. Ellison, Jeremy S. Swenson, and David D. Swenson – former executives of Diversified Business Services and Investments, Inc. (“DBSI”) of Meridian, Idaho – immediately detained pending designation by the Bureau of Prisons to federal correctional facilities. Judge Dale held that because the Defendants had exhausted their appellate rights, the Bail Reform Act no longer applied, and the interests of justice would no longer be served by their continued release.
On April 14, 2014, after a 45-day trial before Chief United States District Judge B. Lynn Winmill, the jury found Defendants Douglas L. Swenson, Mark A. Ellison, Jeremy S. Swenson, and David D. Swenson guilty of 44 counts of securities fraud. The jury further found Defendant Douglas L. Swenson guilty of 34 counts of wire fraud.
In August of 2014, Judge Winmill sentenced Defendants Douglas L. Swenson to 240 months in prison and to pay $180,632,025 in restitution; Mark A. Ellison to 60 months in prison and to pay $32,158,501 in restitution; Jeremy S. Swenson to 36 months in prison and to pay $32,158,501 in restitution; and David D. Swenson to 36 months in prison and to pay $32,158,501 in restitution. By loss amount, the DBSI fraud was the largest in the history of the District of Idaho.
By orders in November and December of 2014, the Ninth Circuit Court of Appeals allowed the Defendants to remain released from prison pending their appeal. On June 25, 2018, the United States Supreme Court denied Defendants’ petition for writ of certiorari, ending their appeal.
Regarding today’s hearing, United States Attorney for the District of Idaho Bart M. Davis stated, “We are gratified by Judge Dale’s decision to immediately detain the DBSI Defendants, pending their designation to the Bureau of Prisons facilities that will house them for the terms of their incarceration. After four years of freedom and pursuit of their appeal all the way to the United States Supreme Court, that appeal is now over and there was no basis in law for the DBSI Defendants to remain released. We hope that the incarceration of the DBSI Defendants provides the victims of their crimes some degree of closure, and that restitution payments by the Defendants to the victims may now commence. I would like to thank the United States Probation Office for their work over the last four years in supervising the Defendants while they were released pending appeal, and the committed law enforcement agents of the Federal Bureau of Investigation and Internal Revenue Service for their tireless work on this case.”
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Cypriot National Sentenced to Prison for Money LaunderingRead the Press Release
A Cypriot national was sentenced today in federal court in Boston for money laundering.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling for the District of Massachusetts, Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration (DEA) New England Division, Special Agent in Charge Harold H. Shaw of the FBI Boston Field Division and Special Agent in Charge Kristina O’Connell of IRS’s Criminal Investigation in Boston, made the announcement.
Esam Sakkal, 40, a national of Cyprus, was sentenced by U.S. District Court Judge Rya W. Zobel to 27 months time served and ordered to pay forfeiture of $19, 248. In April 2018, Sakkal pleaded guilty to one count of money laundering conspiracy and two counts of laundering of monetary instruments.
In June 2017, Sakkal and his brother, Nabeel Sakkal, aka Traycho Marinov Mitchov, Nabil Cieckal and Nabil Imadein Bazul Siggal, a dual national of Cyprus and Jordan, were indicted. Nabeel Sakkal remains a fugitive.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
At the plea hearing, Sakkal admitted that on numerous occasions between 2009 and 2016, the Sakkals met with a U.S. undercover law enforcement agent posing as a member of a drug organization whose role was to launder money from drug sales. Sakkal admitted that in 2014, he advised his brother Nabeel on methods to transport cash obtained from an undercover agent, which was subsequently laundered by the Sakkals through wire transfers to the United States. Sakkal also admitted that he attempted to launder approximately €1 million euros he believed to be the proceeds from illegal drug sales when he met with an undercover agent in Warsaw, Poland in April 2016. Sakkal further admitted that he agreed to obtain money from the undercover agent, and agreed to cause the money to be wired to the United States.
Trial Attorney Randall Warden of the Justice Department’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Linda Ricci of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Cranston Man Admits to Social Security Fraud, Opioid Trafficking ChargeRead the Press Release
PROVIDENCE, RI – A Cranston, R.I. man has admitted to collecting thousands of dollars in Social Security Supplemental Security Income (SSI) to which he was not entitled, and attempting to possess a significant quantity of Oxycodone pills with the intent of selling the pills to others.
Raymond Walker, 47, pleaded guilty in U.S. District Court to one count each of Social Security fraud and attempt to possess with the intent to distribute Oxycodone, announced United States Attorney Stephen G. Dambruch, Special Agent in Charge of the Food and Drug Administration Office of Criminal Investigations (FDA-OCI) Jeffrey J. Ebersole, and Scott E. Antolik, Special Agent in Charge of the Social Security Administration Office of Inspector General (SSA-OIG).
According to information presented to the Court, Walker received $500 monthly Supplemental Security Income (SSI) payments. SSI is meant to assist aged, blind, and disabled people who have little to no income. To be eligible, one has to be disabled, unable to engage in substantial gainful activity, and have limited income and resources.
The Social Security Administration takes into account a claimant’s resources and allows an individual to hold up to $2,000 worth of resources. “Income” includes money a claimant receives from work and other sources, such as friends and relatives. The claimant must notify the Social Security Administration of any significant changes in conditions affecting the receipt of benefits, to include work activity, as either an employee or self-employed individual.
According to information presented to the Court, on September 8, 2017, Walker was interviewed by a SSA claims specialist and informed the claims specialist that since July 2015 his only resource was a 1988 vehicle and a bank account with no more than $200 in it at any time. He told the interviewer that he received approximately $200 per month from family members to assist with personal expenses.
However, an investigation by FDA-OCI, SSA-OIG and the United States Attorney’s Office determined that between December 2013 and July 2017, $306,435 was deposited into Walker’s bank account. It was also determined that he owned a 2016 Audi.
As part of the investigation, on October 4, 2017, at the direction of FDA-OCI agents, a cooperating witness met the defendant at his mother’s house in Providence and sold the defendant 2 bottles containing 168 30 mg Oxycodone pills for $5,000. Upon receiving the pills, the defendant emptied the prescription bottles into a bottle of his own. The defendant did not have all the money at once and asked the cooperating witness to return later to receive full payment. When the cooperating witness returned, approximately an hour and a half later, the defendant informed the individual he had already received complaints regarding the strength of the pills.
Indeed, in that hour and a half, agents observed the defendant’s mother’s home and saw numerous individuals stopping in front of the house and engaging with the defendant to purchase the pills.
Walker is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on October 26, 2018. Social Security Fraud is punishable by statutory penalties of up to 5 years in federal prison, 3 years supervised release, and a fine of up to $250,000. Attempt to possess with the intent to distribute Oxycodone is punishable by statutory penalties of up to 20 years in federal prison, 3 years supervised release, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Coffeyville Woman Pleads Guilty in $150,000 Mail FraudRead the Press Release
KANSAS CITY, KAN. – A Coffeyville woman pleaded guilty to stealing $150,000 from a customer at a bank where she worked, U.S. Attorney Stephen McAllister said.
Phyllis Lanning, 61, Coffeyville, Kan., pleaded guilty to one count of mail fraud. She admitted that while she worked for Condon National Bank in Coffeyville, Kan., she created and mailed falsified documents in order to conceal the fact she stole $150,000 from a customer’s account. She diverted legitimate monthly statements to a postal box in Bartlesville, Okla., that she controlled. She prepared counterfeit statements and mailed them to the owner of the account. The theft was discovered after the owner of the account died and family members took control of the account.
Sentencing is set for September 24. She faces a penalty of up to 20 years in federal prison and a fine up to $250,000. McAllister commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Clovis Man Pleads Guilty to Distributing and Receiving Child PornographyRead the Press Release
ALBUQUERQUE – Spencer C. Lovato, 26, of Clovis, N.M., pled guilty today in federal court in Albuquerque, N.M., to an indictment charging him with two counts of distributing child pornography and one count of receiving child pornography.
At sentencing, Lovato faces a statutory mandatory minimum penalty of five years and a maximum of 20 years in federal prison. Lovato will also be required to register as a sex offender. Lovato has been in custody since his arrest in April 2017. He will remain detained pending his sentencing hearing, which has yet to be scheduled.
The FBI arrested Lovato in April 2017, on a criminal complaint charging him with child pornography offenses in Dec. 2016, in Curry and San Miguel Counties, N.M. According to the complaint, the investigation leading to Lovato’s arrest began in Dec. 2016, when the FBI received a report about video and image files containing child pornography that were being shared by individuals on an online messaging platform. During the investigation, the FBI obtained two IP addresses, email accounts and telephone account records identifying Lovato as the subscriber of accounts used to distribute and receive child pornography.
Lovato subsequently was charged in a three-count indictment on May 9, 2017, with distributing child pornography on Dec. 27, 2016, in Curry County, and with distributing and receiving child pornography on Jan. 5, 2017, in New Mexico.
During today’s proceedings, Lovato pled guilty to all three counts of the indictment. In entering the guilty plea, Lovato admitted that on Dec. 27, 2016, he sent a message on his phone that included a digital video of a minor involved in sexually explicit conduct. Lovato also admitted that on Jan. 5, 2017, he sent a message and received a message that included digital videos of minors involved in sexually explicit conduct.
This case was investigated by the Santa Fe office of the FBI and the Clovis Police Department. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437, or to contact Homeland Security Investigations at 1-866-DHS-2-ICE.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Christian County Reserve Deputy Pleads Guilty to Tax FraudRead the Press Release
SPRINGFIELD, Mo. – A reserve deputy sheriff for Christian County, Mo., pleaded guilty in federal court today to tax fraud.
Marty Layne Brickey, 47, of Republic, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of failure to pay over to the IRS the payroll taxes he collected from his employees. Under the terms of today’s plea agreement, Brickey has agreed to pay $114,449 in restitution to the IRS and $539,260 in restitution in connection with some investments made to Brickey or his companies.
Brickey has been commissioned as a reserve deputy sheriff in Christian County since 2012. Brickey owned and operated several companies that marketed, promoted and managed software development. Interzone Entertainment, LLC, had offices located in Springfield, Mo., Chicago, Ill., Perth, Australia, Belo Horizonte, Brazil, and in China before it ceased operations in February 2010. Big Collision Games, LLC, had offices in Texas and in Dublin, Ireland. MasterTitle Games, Inc., and Spectacle Games maintained offices in Austin, Texas. Brickey also owned Zoonik USA, Inc., and Studio Avenue, Inc.
By pleading guilty today, Brickey admitted that he voluntarily and intentionally failed to pay over to the IRS $15,031 in payroll taxes tax (including federal income taxes, Medicare and Social Security taxes) that he collected from Interzone employees during the second quarter of 2009. Brickey acknowledged that the total tax loss, including all relevant conduct, is $114,449.
Restitution payments to various investors are related to funds solicited by Brickey to bring a video game to market, which did not come to fruition. Although Brickey will pay restitution to the investors, today’s plea agreement does not constitute any admission of criminal culpability or civil liability on his part, and the government does not allege any criminal culpability with respect to the investments.
Under federal statutes, Brickey is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Carney and Casey Clark. It was investigated by IRS-Criminal Investigation and the FBI.
Charlotte Man and His Wife Plead Guilty to Sex Trafficking Three MinorsRead the Press Release
CHARLOTTE, N.C. – Zerrell Ross Fuentes, 24, and his wife, Brianna Leshay Wright, 25, both of Charlotte, appeared in federal court today and pleaded guilty to sex trafficking three minor victims, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to filed plea documents and statements made in court, between April 28, 2016 and May 8, 2016, Fuentes, his wife, Brianna Wright, and his mother and indicted co-conspirator, Tanya Marie Fuentes, engaged in the sex trafficking of three minor victims. Zerrell Fuentes admitted in court today that, while he was in jail, he recruited three underage victims, via telephone, to engage in prostitution to earn money for his bond. Zerrell Fuentes arranged for Wright to transport the minor victims from Charlotte to Myrtle Beach, S.C., for the purpose of engaging in commercial sex acts.
According to court records, Brianna Wright, accompanied by Tanya Fuentes, drove the three minors from Charlotte to Myrtle Beach. While in Myrtle Beach, Tanya Fuentes paid for lodging, and Brianna Wright’s phone was used to post prostitution advertisements for the minor victims on the Internet. She also provided her own telephone number on the ads, as a means of communication to arrange “dates” between the minors and customers, and transported the victims to and from the arranged prostitution appointments.
Zerrell Fuentes and Brianna Wright remain in custody. A sentencing date has not been set. Tanya Fuentes is charged with conspiracy to commit sex trafficking, sex trafficking of a minor, conspiracy to transport a minor to engage in prostitution, and transportation of a minor to engage in prostitution. Those charges are still pending.
The penalty for sex trafficking related offenses is a mandatory minimum of 10 years and a maximum of life in prison and a $250,000 fine.
In making today’s announcement U.S. Attorney Murray commended the law enforcement agents and officers from Homeland Security Investigations and the Charlotte Mecklenburg Police Department who are members of the FBI’s Human Trafficking Task Force for their investigation. He also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance in this case.
Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s office in Charlotte, is prosecuting the case.
Business Owner Indicted for Failure to Provide IRS with 1.6 Million Dollars in Payroll TaxesRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Susan Wenszell (age 57) of Milwaukee has been charged in an indictment with failing to pay over payroll taxes withheld from the wages of employees of a business she and her husband operated in Milwaukee.
Specifically, the indictment charges that during the period from April 2012 through December 2015 Ms. Wenszell, who is the president and owner of J. Wenszell Enterprises Inc., failed to pay over the payroll taxes withheld from the wages of the employees of the business. During this period, Ms. Wenszell withheld more than 1.6 million dollars in payroll taxes from employee wages and failed to pay those taxes to the IRS. Each of the offenses with which Ms. Wenszell is charged carries a maximum possible penalty of up to 5 years in prison and a fine of up to $250,000, or both.
This matter was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Matthew L. Jacobs.
The public is cautioned that an indictment is merely the formal method of issuing charges against an individual. A person is presumed innocent until such time, if ever, as the government establishes his or her guilt beyond a reasonable doubt.
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Birmingham Tax Preparer Sentenced to Five Years in PrisonRead the Press Release
BIRMINGHAM – A federal judge on Monday sentenced a Georgia woman to five years in prison for preparing and filing fraudulent tax returns for other people through her Birmingham-area business between 2009 and 2012, announced U.S. Attorney Jay E. Town and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Thomas J. Holloman.
U.S. District Judge R. David Proctor sentenced PATRICE ANDERSON, 38, of Fairburn, Georgia, on 13 tax-related counts. A federal jury convicted Anderson in September for using her Birmingham tax-preparation business, Queen’s Fast Tax, to file returns that she knew contained false information.
“If you steal from the federal government, you will be charged with a federal crime and you will go to a federal prison,” Town said. “Anderson earned every minute of her five years by siphoning away monies belonging to honest taxpayers from the U.S. Treasury.”
“Patrice Anderson’s sentence demonstrates the seriousness of violating our nation’s federal tax laws,” Holloman said. “Anderson must now serve prison time for her criminal actions, and pay restitution to the tax-paying citizens she defrauded. This sentence should send a clear message: schemes that are directed at cheating the U.S. taxpayers have serious consequences and will result in jail time.”
Evidence at trial showed that Anderson filed tax returns claiming refundable credits to which her clients were not entitled so that they could receive much larger refunds from the government than they were eligible to receive. In return, Anderson would charge the clients abnormally high fees – up to $3,000 per fraudulent return – to file their taxes, according to testimony. The court determined that Anderson, who operated Queen’s Fast Tax from 2009 through 2012, had filed tax returns claiming more than $3.6 million in refunds in 2010 and 2011 alone, and that at least half the claimed refunds in those years were fraudulent.
Anderson testified that she only included information provided by clients on the tax returns that she prepared, but the government presented evidence that Anderson’s own 2010, 2011 and 2012 tax returns contained some of the same false items that were characteristic of the fraudulent tax returns she filed for her clients.
IRS-CI investigated the case, which Assistant U.S. Attorneys Xavier O. Carter Sr. and Kathryn McHugh prosecuted.
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Biopharmaceutical Employees Convicted of Insider TradingRead the Press Release
BOSTON – Two employees of Cambridge-based biopharmaceutical companies were convicted today by a federal jury of engaging in an insider trading scheme.
Schultz “Jason” Chan, 54, of Newton, the Director of Biostatistics at a Cambridge-based biopharmaceutical company, was convicted of one count of conspiracy to commit securities fraud and three counts of securities fraud. Songjiang Wang, 54, of Westford, the Director of Statistical Programming at a different biopharmaceutical company, was convicted of one count of conspiracy to commit securities fraud and two count of securities fraud. U.S. District Court Judge Indira Talwani scheduled Chan’s and Wang’s sentencings for Oct. 4 and 5, 2018, respectively.
From August 2013 to September 2015, Wang and Chan, who were friends, conspired to commit securities fraud by trading insider information regarding successful clinical drug trials at their respective companies. Specifically, Wang traded on inside information Chan provided regarding a clinical study conducted by Chan’s employer. In addition, over a period of several months, Wang tipped Chan of clinical trial results of a Phase 3 clinical trial being conducted by his employer. Furthermore, Wang gave Chan cash, which Chan used to purchase stock shares of Wang’s employer. Chan subsequently sold those shares and paid back Wang.
The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. The charge of conspiracy to commit securities fraud provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities and Exchange Commission. Assistant U.S. Attorney Jordi de Llano Campos, Deputy Chief of Lelling’s Economic Crimes Unit, and Assistant United States Attorney Kriss Basil, also of the Economic Crimes Unit, are prosecuting the case.
Bay Area Methamphetamine Trafficker Sentenced to 25 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Donnie Joe Phillips, 65, of Concord, today to 25 years in prison for methamphetamine trafficking, U.S. Attorney McGregor W. Scott announced.
On February 7, 2018, after a five-day trial, a federal jury found Phillips and his co‑defendant Gordon Owen Miller, 60, of Clayton, guilty of conspiracy to distribute methamphetamine. Miller was found guilty of two counts of distribution and two counts of possession with intent to distribute methamphetamine. Phillips was found guilty of eight counts of distribution and two counts of possession with intent to distribute methamphetamine.
According to evidence produced at trial, between June 2014 and February 2015, Phillips and Miller supplied methamphetamine to co-defendant Phyliss Mosher, 51, of Vallejo, who supplied it to an undercover agent. The drug deals took place in Solano and Yolo Counties. On January 25, 2018, Mosher was sentenced to 15 years in prison after she pleaded guilty to the methamphetamine trafficking conspiracy on May 9, 2017. On May 15, 2018, Miller was sentenced to 20 years in prison.
This case was the product of an investigation by the Drug Enforcement Administration, the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, the California Highway Patrol, the Vallejo Police Department, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Jason Hitt and Jill Thomas prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Baltimore Felon Sentenced to 10 Years in Federal Prison after Pleading Guilty to Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Antoine Benjamin, age 26, of Baltimore, today to 10 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm.
The sentence and guilty plea were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Interim Police Commissioner Gary Tuggle, of the Baltimore Police Department; Baltimore City State’s Attorney Marilyn Mosby; and Maryland Attorney General Brian Frosh.
According to his plea agreement, on October 23, 2016, a Baltimore Police officer in the 2700 block of Edmondson Avenue saw Benjamin engaging in behavior which made the officer believe he might be engaged in criminal activity. The officer approached Benjamin, who ran away. The officer, assisted by other Baltimore Police officers, pursued Benjamin for several blocks. During the pursuit, the officers saw Benjamin reaching into the front of his pants, as if to retrieve an item. Benjamin ran through a back alley and turned back toward Edmondson Avenue, where he was eventually apprehended by officers. Benjamin was detained on the ground and during a pat down, an officer felt what he believed to be a handgun. The officer recovered a semi-automatic .380-caliber handgun with an obliterated serial number, and seven rounds in the magazine and one round in the chamber.
Benjamin had several previous felony convictions and was prohibited from possessing a firearm or ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
United States Attorney Robert K. Hur commended the ATF, the FBI, the Baltimore Police Department, the Office of the State’s Attorney for Baltimore City, and the Maryland Attorney General’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Michael C. Hanlon and Joan C. Mathias, who prosecuted the case.
Armed Career Criminal Sentenced to 15 Years for Hobbs Act Robbery and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Ronteeni Pak Belk, 40, of Charlotte, N.C., was sentenced to 180 months in prison on Hobbs Act robbery and felon in possession of a firearm charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Belk to serve three years under court supervision after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
On March 13, 2017, Belk robbed at gun point the Cash America Pawn located at 5200 North Tryon Street in Charlotte. According to filed court documents and statements made in court, at approximately 9:00 a.m., Belk entered the store, pointed a silver handgun at employees, and demanded money. A female employee complied and gave Belk cash from the store’s cash registers. Court records show that Belk also demanded personal items from the individuals inside the store. The same female employee and a customer gave Belk their wallets. Belk then fired a shot into the ground and left the scene. Soon after Belk left the store, the female employee called 911 to report the robbery.
According to court records, CMPD officers located Belk driving a black Hyundai Elantra and began to follow him. Belk attempted to evade the officers, and eventually crashed his vehicle at N. Graham Street and W. Sugar Creek Road. Belk fled the scene on foot and was apprehended shortly thereafter in a wooded lot in the 5700 block of N. Graham Street. At the scene, officers recovered a chrome Raven Arms .25 caliber pistol and four live rounds, a glove, and the store employee’s wallet. The cash from the store’s register was recovered near the intersection where Belk had crashed his vehicle.
At the time of the offense, Belk was a convicted felon and was prohibited from possessing a firearm. Court records indicate that due to Belk’s prior criminal convictions for robbery with a dangerous weapon, he qualified for a sentencing enhancement as an armed career criminal.
Belk is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the FBI and CMPD for leading the investigation.
Assistant United States Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted 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. 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.
Area Man Found Guilty of Sexually Abusing His Cousin, Beginning When She Was 12 Years OldRead the Press Release
WASHINGTON – An area man, 32, was found guilty today of first-degree sexual abuse, first-degree child sexual abuse, and other charges for sexually abusing his cousin, beginning when she was 12 and continuing until she was 14, announced U.S. Attorney Jessie K. Liu.
The defendant, who is not identified here to protect the privacy of the victim, recently lived in both Silver Spring, Md., and Alexandria, Va. He was found guilty by a jury following a trial in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck ordered that he be held without bond until sentencing on Nov. 2, 2018. He faces up to decades in prison.
According to the government’s evidence at trial, the victim and her younger sister would spend weekends at the Northeast Washington home of their adult sister. The man lived in that same home and, before his abuse became known, and was beloved by the victim’s parents and her adult siblings, who viewed him like a son or brother, rather than as a nephew and cousin.
In the summer of 2014, when the victim was 12 years old, the defendant began sexually abusing her during her weekend visits. The nature of his abuse escalated over time, and each time he abused the girl, he told her not to tell anyone about what he was doing. He also told her that if she told, nobody would believe her, and that she would be the one to get in trouble, not him. The victim confided in her 10-year old sister when the abuse began, but the younger sister did not understand the sexual abuse, and therefore, did not believe the victim and told her so. This caused the victim to fear that just as the defendant had warned, nobody would believe her if she told. Thus, she kept the abuse bottled up inside for the next couple of years.
In early 2017, however, the victim began refusing to visit her adult sister’s home. The victim’s mother and her adult sister found that odd. After church one Sunday in April 2017, the older sister began pressing the victim as to why she had quit coming over to the sister’s home on weekends. It was at that point that the victim finally reported the sexual abuse to which the defendant had been subjecting her. Contrary to the defendant’s threats that no one would believe the victim, the victim’s family immediately reported the abuse to the Metropolitan Police Department (MPD), and the defendant was later arrested.
In announcing the verdict, U.S. Attorney Liu praised the work of members of the Youth and Family Services Division of the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney John Mannarino, Deputy Chief of the Appellate Section; Paralegal Specialists Brenda C. Williams and Tiffany Jones; Victim/Witness Advocates Juanita Harris, Elsa Maltese and Karen Giannakoulias; Litigation Technology Specialists Anisha Bhatia and Jeanie Latimore-Brown, and Interns Megan Hughes, John Bedecarre, Marianne Aguilar, Demia Lee, and Leon Stern. Finally, U.S. Attorney Liu commended the work of Assistant U.S. Attorneys Jennifer B. Loeb and Peter V. Taylor, who investigated and prosecuted this case.
Antlers Man Sentenced to 30 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Charles Allen Bailey, age 50, of Antlers, Oklahoma was sentenced to 30 months imprisonment and 3 years supervised release for Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charge arose from an investigation by the Oklahoma Bureau of Narcotics and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about July 18, 2017, within the Eastern District of Oklahoma, the defendant, Charles Allen Bailey, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce a firearm and ammunition which have been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Working with local, state, tribal, and federal law enforcement agencies to combat violent crime is a priority of the Department of Justice and U.S. Attorney’s Offices. One of the federal laws available to us to carry out that priority prohibits convicted felons from possessing firearms. The defendant in this case violated that federal law and is being held accountable accordingly. This joint effort by agents from the OBN, ATF and members of this office is an example of interagency team work that occurs on a daily basis in the Eastern District of Oklahoma and across the country. When agencies work together, the public benefits.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Altoona Woman Charged with Illegally Using Her Son’s Social Security BenefitsRead the Press Release
JOHNSTOWN, Pa. - A Blair County resident has been indicted by a federal grand jury in Johnstown on a charge of conversion of government funds, United States Attorney Scott W. Brady announced today.
The indictment named Delores Ann Clouser, 68, of Altoona, Pa.
According to the indictment presented to the court, from May 1, 2015, to March 1, 2017, Clouser did receive and convert falsely to her own use a total of $16,865, which represents approximately 23 separate Social Security Administration benefit payments made to her as representative payee for her son, to which she 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 U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, 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.
Albuquerque Woman Pleads Guilty to Federal Fraud, Identity Theft and Theft of Mail ChargesRead the Press Release
ALBUQUERQUE – Ericka Chavez, 22, of Albuquerque, N.M., pled guilty today in federal court to bank fraud, identify theft and theft of mail charges.
U.S. Postal Inspectors arrested Chavez on March 21, 2018, on a criminal complaint charging her with theft of mail. The complaint alleged that in Oct. 2017 and Feb. 2018, mail boxes at two Albuquerque-area apartment complexes were broken into and mail was stolen. The U.S. Postal Inspection Service initiated an investigation into the scheme after receiving complaints that checks stolen from the mail boxes had been altered and used to pay for memberships to Albuquerque stores.
Chavez was subsequently charged in a 19-count indictment on April 10, 2018, with three counts of theft of mail, eight counts of bank fraud and eight counts of aggravated identity theft. According to the indictment, Chavez committed the offenses from Oct. 2017 through March 2018, in Bernalillo County, N.M., by stealing mail from cluster mailboxes located in apartment complexes. The mail stolen included checkbooks, checks, and personal identifiers of victims, which Chavez used to commit further crimes.
During today’s proceedings, Chavez pled guilty one count of theft of mail, one count of bank fraud and one count of aggravated identity theft. In entering the guilty plea, Chavez admitted that on Nov. 5, 2017, she pried open a mailbox at an apartment complex in southeast Albuquerque and stole mail from inside the mailbox. Chavez also admitted that on Oct. 24, 2017, she executed a scheme to defraud the Bank of Albuquerque by writing a check to an Albuquerque store that was drawn on an account at Bank of Albuquerque in the name of a victim and also fraudulently signed the check with the victim’s name. Chavez acknowledged that she used the victim’s name, address and bank account number without the victim’s permission in order to defraud the bank, the store and the victim.
Chavez has been in federal custody since her arrest and remains detained pending her sentencing hearing, which has yet to be scheduled. At sentencing, Chavez faces a maximum penalty of 30 years in federal prison including a mandatory term of imprisonment of two years on the aggravated identity theft charge, which must be served consecutive to any other sentence imposed on the other charges.
The U.S. Postal Inspection Service investigated this case, which was prosecuted by Assistant U.S. Attorney Jeremy Pena.
Monday 9 July 2018
“Bitcoin Maven” Sentenced to One Year in Federal Prison in Bitcoin Money Laundering CaseRead the Press Release
LOS ANGELES, California - The so-called “Bitcoin Maven,” who admitted to operating an unlicensed bitcoin-for-cash exchange business and laundering bitcoin that was represented to be proceeds of narcotics activity, was sentenced today to 12 months and one day in federal prison, three years of supervised release, and a fine of $20,000.
Theresa Lynn Tetley, 50, of Southern California, a former stockbroker and real estate investor, was sentenced by United States District Judge Manuel L. Real for conducting an illegal business and engaging in unlawful monetary transactions involving bitcoins. Tetley was also ordered to forfeit 40 Bitcoin, $292,264.00 in cash, and 25 assorted gold bars that were the proceeds of her illegal activity.
Tetley pleaded guilty to one count of operating an unlicensed money transmitting business and one count of money laundering.
The government’s case against Tetley is the first of this kind charged in the Central District of California. According to court documents, Tetley offered bitcoin-for-cash exchange services without registering as a money services business with the Financial Crimes Enforcement Network (FinCEN), and without implementing anti money-laundering mechanisms such as customer due diligence and reporting certain transactions required for these types of businesses. Tetley advertised on localbitcoins.com and exchanged, in total, between $6 and $9.5 million for customers across the country, charging rates higher than institutions that were registered with FinCEN.
As a result of operating this unregistered business, Tetley facilitated laundering for one individual who is suspected of receiving bitcoin from unlawful activity, such as sales of drugs on the dark web. In the course of her business, Tetley also conducted an exchange of bitcoin-for-cash for an undercover agent who represented that his bitcoin were the proceeds of narcotics trafficking.
According to sentencing documents, the government argued that “[i]n light of the growth of the dark web and the use of digital currency, unlicensed exchangers provide an avenue of laundering for those who use digital currency for illicit purposes.” The government asserted that Tetley’s business “fueled a black-market financial system” that “purposely and deliberately existed outside of the regulated bank industry.”
The investigation into Tetley was conducted by the Drug Enforcement Administration and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Puneet V. Kakkar of the Organized Crime Drug Enforcement Task Force Section.
Woman Sentenced in North Mississippi for Student Loan FraudRead the Press Release
OXFORD, MS. William C. Lamar, U.S. Attorney for the Northern District of Mississippi, together with Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General, Southern Region Office, announced today that a Memphis, Tennessee woman has been sentenced to prison for her role in a scheme to fraudulently obtain student aid.
Lakeisha Arterberry, 32, of Memphis, Tennessee, formerly of Greenwood, Mississippi, was sentenced on July 5, 2018, by U.S. District Judge Debra M. Brown, following her plea of guilty on January 25, 2018, to one count of conspiracy to commit fraud in relation to student aid provided by the U.S. Department of Education. The charge stems from a series of fraudulent applications submitted by Arterberry to the U.S. Department of Education for federal student aid. Each of the fraudulent submissions sought federal student aid for individuals who were enrolled in online classes but who had no intention of completing the coursework or seeking a degree.
Judge Brown ordered Arterberry to serve a total of 18 months in prison, followed by 3 years of supervised release. She was also ordered to pay restitution in the amount of $249,000. Arterberry is scheduled to report to prison on August 27, 2018.
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality. As the law enforcement arm of the U.S. Department of Education, ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Southern Region Office. "That’s why I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Lakeisha Arterberry accountable for her criminal actions.”
Following the sentence, U.S. Attorney William C. Lamar remarked: “The United States Attorney’s Office is committed to holding those individuals who seek to profit from their fraudulent schemes accountable for their illegal activities. The punishment imposed upon Lakeisha Arterberry reinforces the message that federal courts view her actions as serious crimes which warrant significant punishment.”
This case was investigated by the Department of Education, Office of Inspector General and prosecuted by AUSA Robert Mims.
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Warm Springs Man Sentenced to 25 Years in Federal Prison for Molesting Minor VictimRead the Press Release
PORTLAND, Ore. – Lawren John Slockish, 36, of Warm Springs, Oregon, was sentenced today to 300 months in federal prison for molesting an 11-year-old girl.
“Sexual abuse of children casts a lifelong shadow on the health of the victims. The Warm Springs Multi-Disciplinary Child Abuse Team brings together tribal police and prosecutors, Child Protective Services, the Indian Health Service, and federal law enforcement authorities to collaboratively investigate these cases in a thorough, compassionate manner ensuring justice for these vulnerable victims” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“This victim showed great courage by coming forward to disclose the abuse, and for that we are very grateful. Her strength will allow us - law enforcement, the community and her family - to keep other children safe,” said Steve Goldman, Assistant Special Agent in Charge of the FBI in Oregon. “The FBI, working with our tribal partners, will do everything to bring justice for the victim with a long-term goal of identifying and addressing child sexual abuse within our community.”
According to court documents, both Slockish and the minor victim are members of the Warm Springs Tribe. One day following the abuse, the child disclosed to her mother that Slockish had touched her breasts and tried to anally sodomize her. The minor victim’s mother notified the Warm Springs police. The child told Warm Springs police officers that the assault was not the first time the defendant had molested her and that he had done so in a similar manner approximately one year prior.
Slockish previously pleaded guilty to one count of abusive sexual contact with a child on January 19, 2017. Upon completion of his prison sentence, Slockish will be on supervised release for life.
The FBI investigated this case with the assistance of the Warm Springs Tribal Police Department. It was prosecuted by Paul T. Maloney, Assistant U.S. Attorney for the District of Oregon.
On March 3, 1994, the FBI initiated “Operation Safe Trails” with the Navajo Department of Law Enforcement in Flagstaff, Arizona. The operation, which would later evolve into the Safe Trails Task Force (STTF) Program, unites FBI and other federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTFs allow participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.
Upper Peninsula Crystal Meth Dealers ImprisonedRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney Andrew Birge announced today that several crystal methamphetamine dealers from the western part of the Upper Peninsula received long prison terms. The Honorable Paul L. Maloney, U.S. District Judge, issued the following sentences:
• Patrick Joseph Sievers, age 36, formerly of Ironwood, Michigan, sentenced to 264 months (22 years) in federal prison, followed by 8 years of supervised release;
• Kathryn Maria Hellen, age 27, formerly of Ironwood, Michigan, sentenced to 120 months (10 years) in federal prison, followed by 5 years of supervised release;
• Jennifer Elizabeth Smith, age 29, formerly of Ontonagon, Michigan, sentenced to 46 months in federal prison, followed by 3 years of supervised release; and
• Dion Roy Jolliff, age 43, formerly of Ontonagon, Michigan, sentenced to 42 months in federal prison, followed by 3 years of supervised release.
During the sentencing, the government’s attorney, Assistant U.S. Attorney Maarten Vermaat, noted that the Upper Peninsula Substance Enforcement Team (UPSET) has seen crystal methamphetamine ("meth") – a very pure form of the drug – emerge as one of the most commonly trafficked illegal drugs in the area. In addition, the government said that crystal meth dealers are frequently arming themselves for protection.
This case was no exception. Evidence obtained by UPSET showed that Sievers started selling crystal meth in Gogebic, Ontonagon and Houghton Counties in 2016. By the time of his arrest in March 2017, he had sold, by conservative estimates, between 1.5 and 4.5 kilograms of the drug. When UPSET detectives executed a search warrant at Sievers’ camp in Ontonagon, MI on March 30, 2017, they found what Judge Maloney later described as a "drug bunker" – complete with firearms loaded and readily available, motion detectors guarding the approaches to the camp, hidden safes, and a video surveillance system monitoring the doors. Sievers was arrested that same day in Ironwood. Detectives searched his truck and found 215 grams (about 8 ounces) of highly pure crystal meth and a loaded Glock .40 caliber handgun.
Jennifer Smith was arrested after she sold crystal meth on Sievers’ behalf in Ontonagon.
After Sievers’ arrest, UPSET shifted its investigation to other meth dealers in the area. UPSET purchased meth from Dion Jolliff on several occasions. Then Jolliff was found asleep at the wheel of a van owned by Hellen in the middle of an intersection in Ontonagon. Meth and drug paraphernalia were found in the van. Jolliff was arrested.
Hellen, who was previously in a relationship with Sievers, was the last person arrested in this case. Despite her awareness of the arrests of Sievers, Smith and Jolliff, she continued selling crystal meth. In October 2017, police searched her rental house in Ontonagon and found another 8 ounces of crystal meth and a loaded .357 caliber handgun. She was arrested and admitted making several trips to Wausau, Wisconsin to obtain multiple ounces of crystal meth per trip.
Lieutenant Tim Sholander, the UPSET commander, noted that UPSET "was created to reduce the amount of dangerous drugs that destroy our communities in the Upper Peninsula." Lt. Sholander also noted that the detectives assigned to UPSET’s western U.P. team were working to ensure that crystal meth traffickers "were brought to justice for their part in flooding the western part of the Upper Peninsula with crystal meth."
Michigan State Police Troopers and law enforcement officers from the Gogebic Iron-Area Narcotics Team assisted the UPSET investigation. The U.S. Drug Enforcement Administration (DEA) forensic laboratory conducted analysis of the substances seized in this case. The case was prosecuted by Assistant U.S. Attorney Maarten Vermaat.
END
U.S. Attorney to Open Human Trafficking Conference in ManhattanRead the Press Release
MANHATTAN, KAN. – U.S. Attorney Stephen McAllister will open the 2018 Human Trafficking Conference July 10 in Manhattan, Kan.
McAllister will speak at 8 a.m. Tuesday at the Manhattan Conference Center, 410 S. 3rd Street in Manhattan, to begin the two-day event. About 200 victim service providers, prosecutors, healthcare professionals, educators and law enforcement officers from across the state are registered to attend. The U.S. Attorney’s office is co-sponsoring the event with the Kansas Attorney General’s Office, the Riley County Attorney’s Office, the Kansas Law Enforcement Training Center and the Wichita State Midwest Criminal Justice Institute.
“What we all have in common is our desire to prevent human trafficking, to prosecute traffickers and to help survivors reclaim their lives and their freedom,” McAllister said.
The keynote speaker on Tuesday morning will be Peter Qualliotine of King County, Washington, where he is director of Men’s Accountability, Organization for Prostitution Services. He will describe his work with men who buy sex in a 10-week sex-buyer intervention program called Stopping Sexual Exploitation: A Program for Men.
In a presentation on the federal response to human trafficking, speakers from the Human Trafficking Unit of the Justice Department’s Civil Rights Division will discuss working with trafficking victims.
There is a $50 charge to attend and participants must register in advance. For more information, call Kim Reese at 316-617-2734.
U.S. Attorney Dunavant Announces Joseph “Joe” Murphy as First Assistant United States Attorney, Western District of TennesseeRead the Press Release
Memphis, TN – United States Attorney Dunavant is pleased to announce the appointment of Joseph "Joe" Murphy as First Assistant United States Attorney, Western District of Tennessee. This position was vacated when Lawrence J. Laurenzi retired in May 2018 after an extensive career with the Department of Justice.
Joe Murphy is a graduate of Lambuth College and the Cecil C. Humphreys School of Law at the University of Memphis. Since 1989 he has served as an Assistant United States Attorney in the Memphis office of the United States Attorney for the Western District of Tennessee. Murphy served as the office’s Criminal Chief, supervising 28 Assistant United States Attorneys who investigate and prosecute criminal cases in the Memphis office and 10 support staff. Prior to being named the office’s Criminal Chief in June of 2011, Murphy served as Chief of the office’s Organized Crime and Drug Enforcement Task Force for three years. In that position he was responsible for supervising a team of attorneys and support personnel who investigated and prosecuted violations of federal drug, money laundering, and firearms laws committed by both individuals and organized criminal groups. Between 1991 and 2007, Murphy served as a line assistant in both the office’s criminal division and drug task force.
U.S. Attorney D. Michael Dunavant said: "With over 29 years’ experience in the United States Attorney’s Office, including service as Criminal Division Chief and OCDETF Chief, Joe Murphy is well prepared to assume the duties of First Assistant United States Attorney. I am pleased to have Joe’s wise counsel, and I am confident that he will lead and manage the office with the highest degree of effectiveness and integrity. I look forward to continuing to work with him to pursue and carry out the priorities of the Department of Justice in the Western District of Tennessee."
During his career with the Justice Department Murphy has tried approximately 125 felony cases to verdict in U.S. District Court. These cases included prosecutions of health care professionals for illegally distributing controlled substances; mail and wire fraud cases; and theft cases involving pension funds and interstate shipments. Murphy has also represented the government in over 200 cases litigated before the United States Court of Appeals for the Sixth Circuit, and he has argued approximately 48 cases before that court.
A Memphis resident, Murphy has been married to Sandy Murphy for 29 years. He has two children, both of whom currently attend graduate school at the University of Memphis. Active in community and legal affairs, Murphy has served on the Executive Committees of the Tennessee Bar Association’s Criminal Justice and Environmental Law Sections, is a member of the Leo Bearman, Sr. Inn of the American Inns of Court, and has served as a volunteer with the Chickasaw Council of the Boy Scouts of America.
Two Juneau Men Sentenced for Federal Firearms OffensesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that on Friday, July 6, 2018, two Juneau men were sentenced in federal court, in separate cases, for federal firearms offenses.
James V. Drury, 50, of Juneau, was sentenced to serve 72 months in prison, followed by three years of supervised release for theft of firearms and for illegally possessing firearms as a convicted felon. Drury has previous felony convictions with the State of Alaska for burglary and attempted burglary.
According to court documents, Drury burglarized a residence in Ketchikan on May 3, 2016, where he stole two of the homeowner’s firearms – a Model 59/66, 7.62x39 caliber rifle and a Savage Arms, Model 188H, .22 caliber rifle. During the burglary, the homeowner had entered the residence and encountered Drury in possession of the two firearms. During that confrontation, Drury raised one of the rifles, pointed it at the homeowner, and directed him not to move. The homeowner fled the residence to contact police. Drury attempted to conceal the firearms in the backyard of another residence, which were found by the residence owner 11 days later.
Christopher W. Davison, 34, of Juneau, was sentenced to serve 90 months in prison, followed by three years of supervised release for illegally possessing firearms as a convicted felon. Davison has previous felony convictions with the State of Alaska for vehicle theft, criminal mischief, and riot.
According to court documents, on April 20, 2017, law enforcement officers received a report of a man “tweaking hard” and stating to an individual that he “was going to kill everybody” and to remember his name “Chris Davison.” It was reported that Davison was in possession of a firearm described as a sawed-off shotgun. After that incident, a police officer spoke with another witness who stated that he was awoken in the morning and confronted by Davison with what he described as a “MAC-10,” asking the witness to leave the room so he could use the room to have sex with a woman. The next day, Davison was observed at a woman’s residence, but ended up eluding police. Upon Davison’s subsequent arrest, a search of the residence revealed ammunition and a stolen firearm that was a 10/22 Ruger, which is classified as pistol.
The Juneau Police Department (JPD), the Alaska State Troopers (AST), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigations leading to the successful prosecutions of these cases. These cases were prosecuted by Assistant U.S. Attorney Jack Schmidt.
Two Defendants Arrested for Distribution of Controlled Substances Through Sham Internet PharmacyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Valerie Nickerson, the Special Agent in Charge of the New Jersey Office of the Drug Enforcement Administration (“DEA”), and Judy Ramos, the Acting Inspector in Charge of the New Jersey Office of the United States Postal Inspection Service (“USPIS”), announced today that EVELIN BRACY and JORGE RODRIGUEZ LOPEZ were arrested and charged in Manhattan federal court with conspiracy to distribute controlled substances, including oxycodone, hydrocodone, and more than 40 grams of the fentanyl analogue U-47700, distribution of controlled substances over the Internet, and conspiracy to commit money laundering, in connection with a large-scale drug distribution operation purporting to be an online pharmacy. BRACY and RODRIGUEZ LOPEZ were both arrested this morning. Both defendants will be presented today before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Evelin Bracy and Jorge Rodriguez Lopez distributed controlled substances to individuals throughout the United States as part of a drug trafficking organization that sold pharmaceuticals through a website purporting to be an online pharmacy. Bracy and Rodriguez Lopez allegedly conspired to distribute oxycodone, hydrocodone, and a fentanyl analogue, and laundered hundreds of thousands of dollars in narcotics trafficking proceeds. Thanks to the outstanding investigative work of the DEA and USPIS, these two defendants are now facing prosecution.”
DEA Special Agent in Charge Valerie Nickerson said: “The two individuals arrested allegedly have been distributing powerful narcotics not just in New Jersey, but across the United States, based on orders place through a supposed online pharmacy. This very profitable, alleged illegal endeavor has come to an end thanks to the hard work of the men and women of the DEA and the USPIS. Whether on a street corner or in cyberspace we will continue to pursue those pushing these drugs in our communities.”
USPIS Acting Inspector in Charge Judy Ramos said: “Postal Inspectors, federal prosecutors and our law enforcement partners have diligently worked to identify and disrupt the activities of an online pharmacy suspected of peddling illegal pills and money laundering. Postal Inspectors will continue to tirelessly investigate these types of crimes that utilize the U.S. Postal Service to facilitate illicit transactions.”
According to the allegations in the Complaint[[1]] unsealed today in Manhattan federal court:
Law enforcement agents began investigating an online pharmacy website (the “Pharmacy Website”) following an overdose death of a victim in Boise, Idaho, on or about March 17, 2017, whose death was caused by elevated levels of multiple prescription opioids as well as fentanyl. The victim’s computer showed that he had repeatedly ordered painkillers from the Pharmacy Website, and that he had wired thousands of dollars to a bank account in connection with these purchases. Law enforcement subsequently discovered that this bank account was being used by BRACY and RODRIGUEZ LOPEZ. Bank records show that this bank account and several others used by BRACY have received over $750,000 in apparent narcotics proceeds, and that BRACY and RODRIGUEZ LOPEZ have withdrawn hundreds of thousands of dollars in cash from these accounts, and have also used these bank accounts to pay for costs associated with the drug distribution operation, including the costs of shipping controlled substances.
In the course of the investigation, undercover law enforcement agents conducted multiple purchases of controlled substances from the Pharmacy Website, and received instructions to send payment for these drugs to BRACY and RODRIGUEZ LOPEZ. The substances purchased by undercover law enforcement agents included substances that tested positive for oxycodone and hydrocodone.
The investigation has revealed that in some cases customers purchased what they believed to be prescription drugs such as alprazolam or oxycodone from the Pharmacy Website, but instead received pills containing other substances. In the course of the investigation, law enforcement agents seized a package that had been sent to RODRIGUEZ LOPEZ, and recovered over 200 pills weighing over 40 grams. These pills tested positive for U-47700, which is a fentanyl analogue listed on Schedule I.
* * *
BRACY, 34, and RODRIGUEZ LOPEZ, 32, who both reside in New Brunswick, New Jersey, have each been charged with one count of conspiracy to distribute controlled substances including at least 40 grams of the fentanyl analogue U-47700, which carries a maximum sentence of 40 years in prison and a mandatory minimum sentence of five years in prison, one count of distribution of controlled substances over the Internet, which carries a maximum sentence of 40 years in prison and a mandatory minimum sentence of five years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of the DEA and USPIS in this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Thane Rehn is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Additional Members and Associates of Tennessee Mongols Motorcycle Gang Charged with Crimes Related to Racketeering Conspiracy, Murder, Kidnapping and Drug TraffickingRead the Press Release
A 75-count, third-superseding indictment was returned by a federal grand jury in Nashville, Tennessee on June 29 and unsealed Friday, charging 21 members and associates of the Clarksville, Tennessee chapter of the Mongols Motorcycle Gang with various federal crimes, including racketeering conspiracy, murder in aid of racketeering, attempted murder, kidnapping, robbery, large-scale drug trafficking, and other crimes, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.
On Jan. 18, a 54-count superseding indictment charged 15 members and associates of the Clarksville Mongols with racketeering conspiracy, murder, drug trafficking and other related crimes. On March 7, a 64-count second-superseding indictment charged four additional defendants with the kidnapping and murder of Stephen Cole, an estranged former member of the Mongols. The indictments detail allegations of violent, criminal activity and drug trafficking in and around the Clarksville area beginning in or about March 2015 and continuing until the return of the indictments.
The latest indictment charges two additional associates of the Clarksville Mongols with drug trafficking conspiracy, money laundering, interstate travel in aid of racketeering, tampering with the grand jury investigation by removing and concealing evidence, false statements to law enforcement, and accessory after the fact for the kidnapping and murder of Stephen Cole. The two additional defendants are Janie Lee, 22, of Owensboro, Kentucky, and Jessie Marie Decker, 33, of Trenton, Kentucky. Lee will have her initial court appearance this afternoon before U.S. Magistrate Judge H. Brent Brennenstuhl in the Western District of Kentucky and Decker will have her initial court appearance this afternoon before U.S. Magistrate Judge Alistair E. Newbern in the Middle District of Tennessee.
This indictment charges Lee with conspiracy to distribute large-scale quantities of methamphetamine, distribution and possession with intent to distribute methamphetamine, interstate travel in aid of racketeering, and money laundering.
Decker is charged along with previously-indicted defendant William Nelper aka “Flip,” 50, of Clarksville, with conspiracy to distribute and possession with intent to distribute marijuana, tampering with the grand jury investigation, and use of a firearm in relation to a drug trafficking crime. Decker is separately charged with making false statements to law enforcement relating to the kidnapping and murder of Cole and as an accessory after the fact to the kidnapping.
The third-superseding indictment also brings additional charges against other previously- indicted defendants. Robert Humiston aka “Bric,” 25, of Dover, is charged with possession of a short-barreled rifle in violation of the National Firearms Act (NFA) and with failure to register the firearm as required by the NFA. Christopher Wilson, 35, of Clarksville, is charged with two counts of being a felon in possession of a firearm, drug trafficking conspiracy and possession with intent to distribute several different controlled substances, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Clarksville Police Department; the Tennessee Bureau of Investigation; and the Kentucky State Police. Trial Attorney Robert Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Additional Members and Associates of Clarksville Tennessee Mongols Motorcycle Gang Charged with Crimes Related to Racketeering Conspiracy, Murder, Kidnapping and Drug TraffickingRead the Press Release
A 75-count, third-superseding indictment was returned by a federal grand jury in Nashville, Tennessee on June 29 and unsealed Friday, charging 21 members and associates of the Clarksville, Tennessee chapter of the Mongols Motorcycle Gang with various federal crimes, including racketeering conspiracy, murder in aid of racketeering, attempted murder, kidnapping, robbery, large-scale drug trafficking, and other crimes, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
On January 18, 2018, a 54-count superseding indictment charged 15 members and associates of the Clarksville Mongols with racketeering conspiracy, murder, drug trafficking and other related crimes. On March 7, 2018, a 64-count second-superseding indictment charged four additional defendants with the kidnapping and murder of Stephen Cole, an estranged former member of the Mongols. The indictments detail allegations of violent, criminal activity and drug trafficking in and around the Clarksville, Tennessee area beginning in or about March 2015 and continuing until the return of the indictments.
The latest indictment charges two additional associates of the Clarksville Mongols with drug trafficking conspiracy, money laundering, interstate travel in aid of racketeering, tampering with the grand jury investigation by removing and concealing evidence, false statements to law enforcement, and accessory after the fact for the kidnapping and murder of Stephen Cole. The two additional defendants are:
Janie Lee, 22, of Owensboro, Kentucky, and Jessie Marie Decker, 33, of Trenton, Kentucky. Lee will have her initial court appearance this afternoon before U.S. Magistrate Judge H. Brent Brennenstuhl in the Western District of Kentucky and Decker will have her initial court appearance this afternoon before U.S. Magistrate Judge Alistair E. Newbern in the Middle District of Tennessee.
This indictment charges Lee with conspiracy to distribute large-scale quantities of methamphetamine, distribution and possession with intent to distribute methamphetamine, interstate travel in aid of racketeering, and money laundering.
Decker is charged along with previously-indicted defendant William Nelper a/k/a “Flip,” with conspiracy to distribute and possession with intent to distribute marijuana, tampering with the grand jury investigation, and use of a firearm in relation to a drug trafficking crime. Decker is separately charged with making false statements to law enforcement relating to the kidnapping and murder of Cole and as an accessory after the fact to the kidnapping.
The third-superseding indictment also brings additional charges against other previously- indicted defendants. Robert Humiston a/k/a “Bric,” is charged with possession of a short-barreled rifle in violation of the National Firearms Act (NFA) and with failure to register the firearm as required by the NFA. Christopher Wilson is charged with two counts of being a felon in possession of a firearm, drug trafficking conspiracy and possession with intent to distribute several different controlled substances, possession with intent to distribute methamphetamine, and use of a firearm in relation to a drug trafficking crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Clarksville Police Department; the Tennessee Bureau of Investigation; and the Kentucky State Police. Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee and Trial Attorney Robert Tully of the DOJ Organized Crime and Gang Section are prosecuting the case.
An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in a court of law.
Timothy Downs, Former Chief of Lake County Sheriff’s Department and William Szarmach, Owner of CSA Towing SentencedRead the Press Release
HAMMOND – Timothy Downs, 67, of Monticello, Indiana and William Szarmach, 61, of Hobart, Indiana were sentenced before District Court Judge James T. Moody on their plea of guilty to honest services wire fraud, announced U.S. Attorney Kirsch.
U.S. Attorney Kirsch said, “Public corruption is a top priority of my office. Mr. Downs and Mr. Szarmach’s immediate cooperation was instrumental in the prosecution of former Sheriff John Buncich and the court’s sentence reflects these acts. For those involved in public corruption, my office has a team of investigators that are working on investigating all leads related to all acts of public corruption. I encourage anyone with information about such possible corruption to report it to me or to the FBI. Citizens demand, and in fact deserve, honest public service from their elected and appointed officials.”
Downs was sentenced to 2 years probation and ordered to pay a fine of $6000.
Szarmach, who in addition to honest services wire fraud also entered a plea of guilty to bribery, was also sentenced to 2 years probation and ordered to pay restitution to the IRS.
According to documents in this case, from February 2014 continuing into October 2016, Buncich, Downs and Szarmach devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office. The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters. The documents detail a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the City of Gary for ordinance violations. Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation.
This case was being investigated by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation Division; and the Department of Labor, Office of Inspector General. This case will be handled by Assistant U.S. Attorney Philip C. Benson.
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South Bend Woman Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND – Tiffany Gadson, age 34, of South Bend, Indiana was sentenced before District Court Judge Robert L. Miller, Jr. for possessing cocaine with the intent to deliver, announced U.S. Attorney Kirsch.
Gadson was sentenced to 60 months in prison followed by 4 years of supervised release.
According to documents in this case, on or about November 13, 2017 officers conducted a traffic stop on Gadson who was in possession over 28 grams of a rocklike substance that contained a cocaine base.
This case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Michigan City Police Department and LaPorte County Drug Task Force. The case was handled by Assistant U.S. Attorney Frank Schaffer.
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Solano County Woman Sentenced to over 2 Years in Prison for Conspiracy and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Michelle Louise Travis, 53, of Suisun City, was sentenced today by U.S. District Judge Kimberly J. Mueller to two years and three months in prison for conspiracy to commit wire fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2013, Travis and co-defendant Pamela Dawn Pierson used identity theft victims’ personal identifying information to file fraudulent tax returns in order to obtain income tax refunds to which they were not entitled. As part of their scheme, Travis and Pierson obtained and shared lists of personal identifying information, which included identity theft victims’ names and social security numbers. Travis and Pierson submitted a total of $66,022 in fraudulent claims to the Internal Revenue Service.
This case was the product of an investigation by the IRS Criminal Investigation, the Federal Bureau of Investigation, and the Fairfield Police Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
On March 14, 2018, Judge Mueller sentenced Pierson to two years and three months in prison.
Settlement to Speed Cleanup at Superfund Fund Site AnnouncedRead the Press Release
WASHINGTON – The U.S. Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Rhode Island Department of Environmental Management (RIDEM) announced today that two subsidiaries of Stanley Black & Decker Inc.—Emhart Industries Inc. and Black & Decker Inc.—have agreed to clean up dioxin contaminated sediment and soil at the Centredale Manor Restoration Project Superfund Site in North Providence and Johnston, Rhode Island.
“We are pleased to reach a resolution through collaborative work with the responsible parties, EPA, and other stakeholders,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Today’s settlement ends protracted litigation and allows for important work to get underway to restore a healthy environment for citizens living in and around the Centredale Manor Site and the Woonasquatucket River.”
“This settlement demonstrates the tremendous progress we are achieving working with responsible parties, states, and our federal partners to expedite sites through the entire Superfund remediation process,” said EPA Acting Administrator Andrew Wheeler. “The Centredale Manor Site has been on the National Priorities List for 18 years; we are taking charge and ensuring the Agency makes good on its promise to clean it up for the betterment of the environment and those communities affected.”
“Successfully concluding this settlement paves the way for EPA to make good on our commitment to aggressively pursue cleaning up the Centredale Manor Superfund Site,” said EPA New England Regional Administrator Alexandra Dunn. “We are excited to get to work on the cleanup at this site, and get it closer to the goal of being fully utilized by the North Providence and Johnston communities.”
“We are pleased that the collective efforts of the State of Rhode Island, EPA, and DOJ in these negotiations have concluded in this major milestone toward the cleanup of the Centredale Manor Restoration Superfund site and are consistent with our long-standing efforts to make the polluter pay,” said RIDEM Director Janet Coit. “The settlement will speed up a remedy that protects public health and the river environment, and moves us closer to the day that we can reclaim recreational uses of this beautiful river resource.”
The settlement, which includes cleanup work in the Woonasquatucket River (River) and bordering residential and commercial properties along the River, requires the companies to perform the remedy selected by EPA for the Site in 2012, which is estimated to cost approximately $100 million, and resolves longstanding litigation.
The cleanup remedy includes excavation of contaminated sediment and floodplain soil from the Woonasquatucket River, including from adjacent residential properties. Once the cleanup remedy is completed, full access to the Woonasquatucket River should be restored for local citizens. The cleanup will be a step toward the State’s goal of a fishable and swimmable river. The work will also include upgrading caps over contaminated soil in the peninsula area of the Site that currently house two high-rise apartment buildings. The settlement also ensures that the long-term monitoring and maintenance of the site, as directed in the remedy, will be implemented to ensure that public health is protected.
Under the settlement, Emhart and Black & Decker will reimburse EPA for approximately $42 million in past costs incurred at the Site. The companies will also reimburse EPA and the State of Rhode Island for future costs incurred by those agencies in overseeing the work required by the settlement. The settlement will also include payments on behalf of two federal agencies to resolve claims against those agencies. These payments, along with prior settlements related to the Site, will result in a 100 percent recovery for the United States of its past and future response costs related to the Site.
Litigation related to the Site has been ongoing for nearly eight years. While the Federal District Court found Black & Decker and Emhart to be liable for their hazardous waste and responsible to conduct the cleanup of the Site, it had also ruled that EPA needed to reconsider certain aspects of that cleanup. EPA appealed the decision requiring it to reconsider aspects of the cleanup. This settlement, once entered by the District Court, will resolve the litigation between the United States, Rhode Island, and Emhart and Black and Decker, allowing the cleanup of the Site to begin.
The Site spans a one and a half mile stretch of the Woonasquatucket River and encompasses a nine-acre peninsula, two ponds and a significant forested wetland. From the 1940s to the early 1970s, Emhart’s predecessor operated a chemical manufacturing facility on the peninsula and used a raw material that was contaminated with 2,3,7,8-tetrachlorodibenzo-p-dioxin, a toxic form of dioxin. The Site property was also previously used by a barrel refurbisher. Elevated levels of dioxins and other contaminants have been detected in soil, groundwater, sediment, surface water and fish.
The Site was added to the National Priorities List (NPL) in 2000, and in December 2017, EPA included the Centredale Manor Restoration Project Superfund Site on a list of Superfund sites targeted for immediate and intense attention. Several short-term actions were previously performed at the Site to address immediate threats to the residents and minimize potential erosion and downstream transport of contaminated soil and sediment. This settlement is the latest agreement EPA has reached since the Site was listed on the NPL. Prior agreements addressed the performance and recovery of costs for the past environmental investigations and interim cleanup actions from Emhart, the barrel reconditioning company, the current owners of the peninsula portion of the Site, and other potentially responsible parties.
The Consent Decree, lodged in the U.S. District Court of Rhode Island, will be posted in the Federal Register and available for public comment for a period of 30 days. The Consent Decree can be viewed on the Justice Department website: www.justice.gov/enrd/Consent_Decrees.html.
EPA information on the Centredale Manor Superfund Site: www.epa.gov/superfund/centredale.
Schenectady Man Sentenced to 63 Months of Imprisonment for ArsonRead the Press Release
ALBANY, NEW YORK – Duane E. Griffin, 37, of Schenectady, New York, was sentenced to serve 63 months in prison for arson, announced United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)-New York Field Division.
On March 9, 2018, following a one-week trial, a jury voted to convict Griffin of arson. The evidence presented at trial established that on March 17, 2012, Griffin used a hand-held propane torch to set the three-story building, located at 605 Union Street in the City of Schenectady, on fire. Griffin then got into his vehicle and fled the scene as flames began to engulf the building. The fire caused such severe structural damage to the building that it later had to be torn down for public safety. Griffin was also sentenced to a three-year term of supervised release, which will start after he is released from prison.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Schenectady Fire Department, and was prosecuted by Assistant U.S. Attorney Rick Belliss.
Roane County Man Pleads Guilty to Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – A Roane County man pled guilty today to a child pornography crime, announced United States Attorney Mike Stuart. Devin Wolfe entered his guilty plea to one count of receipt of child pornography. Stuart commended the investigation conducted by the Federal Bureau of Investigation and the West Virginia State Police.
“Prosecuting child pornography crimes is a priority for my office,” said United States Attorney Mike Stuart. “We will continue to work with law enforcement to protect our most vulnerable by vigorously prosecuting pedophiles who prey on children.”
Wolfe admitted to possessing images and videos depicting child pornography on October 12, 2016. He received these images and videos from the internet, including from the website “4chan.” One of the images, which he downloaded on August 21, 2016 at his residence in Roane County, depicted an adult male engaged in sexual intercourse with a prepubescent female. Wolfe further admitted to possessing at least 6 videos and 730 images. Many of the minors depicted in the videos and images have been identified by the National Center for Missing and Exploited Children.
Wolfe faces at least 5 and up to 20 years in federal prison when he is sentenced on October 10, 2018. He will also be required to register as a sex offender.
Assistant United States Attorneys Jennifer Rada Herrald and Emily Wasserman are handling the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Plattsburgh Drug Dealer Sentenced for Membership in Heroin Distribution ConspiracyRead the Press Release
PLATTSBURGH, NEW YORK – Charles Adams, a.k.a. “Chuck,” 32, of Peru, New York, was sentenced today to serve 37 months in prison, to be followed by 4 years of supervised release, for conspiring to possess with intent to distribute and to distribute heroin, announced United States Attorney Grant C. Jaquith, Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA), and Clinton County Sheriff David Favro.
In pleading guilty, Adams admitted to being a member of a heroin-distribution conspiracy that transported hundreds of grams of heroin from Annapolis, Maryland and Schenectady, New York, to Plattsburgh, New York, where it was distributed. Adams, who was arrested in possession of 24 grams of heroin (including packaging) on May 25, 2017, admitted to driving other members of the conspiracy to pick up heroin in Annapolis and Schenectady, and to selling heroin in Plattsburgh.
The charges are the result of a nearly yearlong investigation led by the DEA Task Force in Plattsburgh, which consists of law enforcement officers from the DEA, Homeland Security Investigations, United States Border Patrol, New York State Police, Clinton County Sherriff’s Office, Essex County Sheriff’s Office, and the Plattsburgh Police Department. The New York State Department of Corrections and Community Supervision also assisted in the investigation.
The case was prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Katherine Kopita.
Pensacola Man Pleads Guilty to Stealing from the Department of Veterans AffairsRead the Press Release
PENSACOLA, FLORIDA – Richard E. Kohl, 83, of Pensacola, Florida, has pleaded guilty to theft of government funds in connection with filing false and fraudulent benefit claims with the Department of Veterans Affairs (“VA”). The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Documents introduced at the time of the guilty plea reflect that, at some point prior to July 3, 1996, Kohl created and signed a fictitious Form DD-214 that falsely reported that he served in the United States Marine Corps during the Korean War and was discharged on December 20, 1961. Kohl never served in any branch of the United States military. Kohl used the false Form DD-214 as proof of his military service to obtain veterans’ benefits he was not entitled to receive. Between February 3, 2005, and February 9, 2018, Kohl received benefit payments and services totaling approximately $219,719.39 from the VA.
“By defrauding the federal government for personal gain, Kohl stole resources needed to help real veterans,” said U.S. Attorney Canova. “These benefits are meant for the brave men and women who have served our country.”
Monty Stokes, Special Agent in Charge, VA Office of Inspector General said, “The VA benefits fraudulently received by Mr. Kohl were intended to provide financial and health care support for veterans who honorably served in the armed forces of the United States. This guilty plea is the result of the successful investigative and prosecutive efforts of the VA OIG and the U.S. Attorney’s Office. These continued efforts safeguard the integrity of VA programs, and ensure that VA benefits are provided only to those who have earned them.”
Kohl faces a maximum of ten years in prison. The sentencing hearing is scheduled for September 19, 2018.
The case was investigated by the VA Office of Inspector General – Criminal Investigations Division. It was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Owner of Salem Roast Beef Restaurant Pleads Guilty to Federal Tax ChargesRead the Press Release
BOSTON – The owner of King’s Roast Beef in Salem pleaded guilty today in federal court in Boston to failing to pay approximately $383,000 in taxes.
John Kalantzis, 52, of Lynn, pleaded guilty to two counts of aiding and assisting in filing a false tax return. U.S. District Court Judge William G. Young scheduled sentencing for Oct. 2, 2018.
During tax years 2011 through 2015, Kalantzis underreported the gross receipts and expenses of King’s Roast Beef in order to improperly reduce the federal income taxes owed by the restaurant. Kalantzis did so by diverting some of the restaurant’s cash receipts to himself, paying for some of the restaurant supplies with cash, and paying a portion of his employee’s wages in cash. Kalantzis then failed to report this conduct to his tax preparer. As such, during each of the tax years 2011 through 2015, Kalantzis failed to report cash receipts of approximately $275,000 and cash expenses of approximately $115,000 on King’s Roast Beef’s tax returns. As a result, Kalantzis failed to report a total of $855,000 to the IRS during those years, thereby avoiding paying corporate and personal taxes of $383,000.
The charge of aiding and assisting the filing of false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.
Oklahoma City Woman Receives a Year in Prison for Use of Credit Profile NumbersRead the Press Release
OKLAHOMA CITY – TIMATRESS TENAKA CADE, 31, of Oklahoma City, has been sentenced to twelve months in prison for using credit profile numbers, or CPNs, to falsely report her Social Security Number in credit applications, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to charges filed in November 2017, Cade used CPNs, also known as "credit privacy numbers" or "credit protection numbers," instead of her own Social Security Number when she applied for financing at retailers and financial institutions. CPNs are usually stolen Social Security Numbers, often belonging to children, which are marketed to individuals with poor credit history as a way to get a clean credit profile. By using CPNs instead of her own Social Security Number on credit applications, Cade deceived retailers, credit card companies, banks, and a home leasing company into believing she had a better credit history than she had actually earned. She purchased a vehicle, household furnishings, televisions, computers, and other goods, and leased a home, and then made little to no payments on the credit accounts, which caused financial losses to her creditors.
On January 5, 2018, Cade pleaded guilty to false representation of a Social Security Number after she used a CPN instead of her own Social Security Number when she leased a home in Edmond, Oklahoma, from OKC Homes 4 You. Today U.S. District Judge David L. Russell sentenced her to twelve months in prison, to be followed by three years of supervised release. She must also pay $68,637.74 in restitution to OKC Homes 4 You and the other creditors she defrauded. The government agreed to dismiss other charges against her.
This case is the result of an investigation by the Social Security Administration’s Office of the Inspector General, the Federal Bureau of Investigation, and the United States Postal Inspection Service. It was prosecuted by Assistant U.S. Attorney Jessica L. Perry.
Reference is made to public filings for further information.
Odemnis Prats Leiva Sentenced to Serve 54 Months in Federal Prison for Wire Fraud and Aggravated Identity TheftRead the Press Release
GREENEVILLE, Tenn. – On July 9, 2018, Odemnis Prats Leiva, 31, of Pompano Beach, Florida, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 54 months in federal prison for his role in a wire fraud and aggravated identity theft conspiracy involving credit card skimmers. Upon his release from prison, he will be supervised by U.S. Probation for three years. Leiva was also ordered to pay restitution in the amount of $21,114.84.
In March 2018, Leiva pleaded guilty to three counts of a September 2017 federal indictment. Details of the scheme are outlined in his plea agreement on file with U.S. District Court. According to the plea agreement, between August 7, 2017 and August 10, 2017, Leiva and Amaurys Mendez Campanon used skimming devices on gas pumps at retail gas stations to obtain the credit/debit card account information of numerous people without their knowledge. They used the fraudulently obtained information to re-encode unloaded gift cards, which they shoplifted from various retail establishments. The re-encoded cards were then used to purchase loaded gift cards and other consumer items at various retail establishments across east Tennessee and elsewhere.
As a result of an ongoing investigation by law enforcement, Leiva and Campanon were arrested in Rogersville, Tennessee, on August 10, 2017. At the time of the arrest, Leiva was in possession of nine unlawfully re-encoded devices, $7,020.25 in cash, numerous gift cards, all of which he had obtained as part of the conspiracy, as well as other items used in furtherance of their conspiracy. Campanon, who was also charged in the indictment and has pleaded guilty, was arrested at the same time. He is awaiting sentencing in U.S. District Court.
This investigation was conducted by the U.S. Secret Service, Johnson City Police Department and Rogersville Police Department. Assistant U.S. Attorney TJ Harker represented the United States in court proceedings.
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