Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 18 June 2018
McKees Rocks Man Sentenced to Two More Years in Prison for Escaping from Renewal CenterRead the Press Release
PITTSBURGH, PA. - A resident of McKees Rocks, PA, has been sentenced in federal court to 24 months’ imprisonment on his conviction of escape from custody, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Devon Johnson, age 29.
According to information presented to the court, on August 31, 2016, the defendant escaped from the Renewal, Inc. Residential Reentry Center, where he had been confined pursuant to a judgment and commitment order of the United States District Court for the Northern District of West Virginia..
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Marshals Service for the investigation leading to the successful prosecution of Johnson.
Maryland woman sentenced for selling cocaineRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shelley Kay Snyder-Windle, of Westernport, Maryland, was sentenced today to 12 months incarceration for distributing cocaine, United States Attorney Bill Powell announced.
Snyder-Windle, age 54, pled guilty to one count of “Distribution of Cocaine” in March 2018. Snyder-Windle admitted to selling cocaine in October 2016 in Mineral County.
Special Assistant U.S. Attorney Elizabeth Grant, also with the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The case was investigated by the Potomac Highlands Drug & Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigations.
Chief U.S. District Judge Gina M. Groh presided.Maryland Man Sentenced to Seven Years in Prison for Role in Scheme That Used Stolen Identities to Fraudulently Seek Tax RefundsRead the Press Release
WASHINGTON – A Maryland man was sentenced today to seven years in prison for his involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds.
The announcement was made by Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; U.S. Attorney Jessie K. Liu for the District of Columbia; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Acting Inspector in Charge Eric Shen of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Antonio Cooper, 47, of Oxon Hill, Md., pled guilty in May 2016 to charges of conspiracy to commit theft of government funds, theft of public money, and aggravated identity theft.
Cooper was part of a massive sophisticated stolen identity refund fraud scheme that involved a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia. According to court documents, the overall case involved the filing of at least 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty, and three have been convicted by a trial jury.
According to the government’s evidence, Cooper actively participated in the scheme from approximately February 2010 through July 2012. He also recruited others to do so. As he admitted in Court, Cooper played an integral part in the overall conspiracy; he, his friends, and his family members defrauded the IRS out of more than $2 million through the receipt of fraudulently obtained income tax refund checks. Among other things, Cooper used others’ addresses to receive checks, bought personal identifying information needed to complete tax forms, and cashed some of the fraudulently-obtained tax refund checks.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Cooper to serve three years of supervised release and to pay $2,420,241 in restitution to the IRS. She also ordered a forfeiture money judgment $806,747.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Liu, Acting Special Agent in Charge Jackson, Acting Inspector in Charge Shen and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Aisha Keys and Donna Galindo; former Paralegal Specialists Jessica Mundi and Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Services Coordinator Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Martinsburg man sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Charles Leroy Palmer, III, of Martinsburg, West Virginia, was sentenced today to 24 months incarceration for distributing heroin, United States Attorney Bill Powell announced.
Palmer, age 24, pled guilty to one count of “Possession with the Intent to Distribute Heroin” in March 2018. Palmer admitted to distributing more than 100 grams of heroin in June 2017 in Berkeley County.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The case was investigated by the Jefferson County Sheriff’s Office and the Martinsburg City Police Department.
Chief U.S. District Judge Gina M. Groh presided.
Man Sentenced to over 17 Years in Federal Prison for Selling Methamphetamine Near SchoolRead the Press Release
A Cedar Rapids man who sold methamphetamine from his home near Wilson Middle School was sentenced on June 12, 2018, to more than 17 years in federal prison.
Daniel Wayne Melsha, age 26, from Cedar Rapids, Iowa, received the prison term after a February 22, 2018 guilty plea to possession with intent to distribute methamphetamine within 1,000 of a school and possession of firearms in furtherance of a drug trafficking crime.
Evidence at the sentencing hearing showed that Melsha lived in a residence in Cedar Rapids, which was within 1,000 feet of Wilson Middle School. On September 28 and October 4, 2017, Melsha sold another person a half an ounce of methamphetamine at Melsha’s home. On October 5, 2017, police investigators executed a search warrant at Melsha’s residence, where they found over 70 grams of “ice” methamphetamine and 41 guns, including revolvers, semi-automatic handguns, rifles, and shotguns. Police arrested Melsha the same day.
On October 10, 2017, Melsha was released pending trial and ordered to wear a GPS-monitoring bracelet on his ankle to monitor his location. Melsha cut off the GPS monitoring bracelet in November and failed to appear for a hearing on his case. On January 16, 2018, the United States Marshals Service found Melsha hiding out in a camper, parked within a barn in Fairfax, Iowa.
Melsha was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Melsha was sentenced to 211 months’ imprisonment and must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Melsha is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ravi T. Narayan and Special Assistant United States Attorney Drew O. Inman and investigated by the Iowa Division of Narcotics Enforcement, Cedar Rapids Police Department, Muscatine County Drug Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-86-LRR.
Follow us on Twitter @USAO_NDIA.
Long Island Man and Queens Rabbi Arrested in $7 Million Extortion AttemptRead the Press Release
A complaint was unsealed earlier today in federal court in Brooklyn charging Igal Haimoff, a rabbi, and Mark Weissman with engaging in a scheme to extort $7 million from an individual in exchange for not providing purportedly incriminating information to law enforcement authorities. Haimoff and Weismann were arrested today and made their initial appearance this afternoon before United States Magistrate Judge Cheryl L. Pollak. The defendants were each released on a $250,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged, Haimoff and Weissman attempted to characterize the millions of dollars they expected to receive from their extortionate threat as a charitable donation,” stated United States Attorney Donoghue. “This Office, along with our law enforcement partners, will vigorously investigate and prosecute those who seek to hide their criminal conduct behind the cloak of a charity.”
“Charity of all kinds, especially related to children, is esteemed to be noble, honest, and true,” stated FBI Assistant Director-in-Charge Sweeney. “By allegedly attempting to extort and blackmail this victim in the name of charity, Haimoff and Weissman gravely undermined these values. By the arrests of these individuals, it is clear that regardless of cunning cover-ups, all injustices will ultimately be revealed.”
“IRS Criminal Investigation takes criminal actions that undermine confidence in the Internal Revenue Code seriously. Disguising illegally obtained funds as charitable donations is disgraceful,” stated IRS-CI Special Agent-in-Charge Robnett. “The allegations outlined in this criminal complaint are serious and we are obligated to use our financial expertise to unravel the scheme devised by Rabbi Haimoff and Mr. Weissman.”
According to the complaint, beginning in early 2017, Weissman advised the Victim that unless he paid $6 million, another individual (Person A) would provide incriminating information to law enforcement. Weissman enlisted Rabbi Haimoff to allow his charity to receive the extorted funds, as a way to disguise the purpose of the transaction. Haimoff and Weissman ultimately created and transmitted a fraudulent charitable donation letter to the individual they believed would be sending the extorted funds from overseas. The letter, on the charity’s letterhead from Haimoff, stated:
Thank you so much for your pledge of $6,000,000 towards our building campaign. Your generous donation will enable us to complete the construction of our Yeshiva building which is so vital for the continued growth of our Queens community. It is the generosity of donors such as yourself that provide us with the strength and ability to continue being there for the community. Thank you for being our partner in this most important endeavor. For your convenience, you can fire (sic) the funds to our bank account as follows [bank account details].
In fact, when transmitting the letter, Haimoff and Weissman were actually communicating with an FBI agent acting in an undercover capacity.
Haimoff later indicated that Person A was increasing the demand to $7 million. The victim indicated that he could provide these funds and Haimoff requested to be provided with a letter indicating why the “donation” was increasing to $7 million. On or about June 6, 2018, Haimoff and the undercover FBI agent, exchanged the following emails, which read in part:
Undercover FBI Agent: Dear Rabbi Haimoff, I have learned that there is additional structural work required for the construction of the Yeshiva building for the Charity. As such I would like to increase my pledge from $6,000,000 to $7,000,000 to assist you with the project…Kind regards…
Haimoff: …Thank you very much … that you doing with our yeshiva because of your good heart open hart (sic) for mitzvahs we will be able to expand our bldg to the maximum capacity now we don't have any more space for new kid’s (sic) to come after the construction will be done we will be able to double the amount of children!!...thank you so much. Rabbi haimoff.
The charges in the complaint are merely allegations, and the defendants are presumed to be innocent unless and until proven guilty. If convicted, Haimoff and Weissman each face up to 5 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendants:
IGAL HAIMOFF
Age: 67
Flushing, New YorkMARK WEISSMAN
Age: 54
Lawrence, New YorkE.D.N.Y. Docket No. 18-MJ-54
Long Island Man Pleads Guilty to Distributing Heroin That Caused Death of A College StudentRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Richard Jacobellis pleaded guilty to distributing heroin, further admitting that he distributed heroin that resulted in the death of 20-year-old Nicholas Weber in 2016 and serious bodily injury to Frances Theiling in 2015. As part of his guilty plea, Jacobellis agreed to a specific sentence of 192 months’ imprisonment, to be followed by five years of supervised release, subject to the Court’s approval. Today’s proceeding was held before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“Jacobellis admitted to poisoning people on Long Island by distributing heroin for years, even after his drugs took one life and nearly took another,” stated United States Attorney Donoghue. “The defendant’s conviction in this case will not bring back Nicholas Weber, but it will send a message to others who may consider selling drugs that this Office will bring to justice those who contribute to the opioid epidemic and hold them accountable for the harm they cause.” Mr. Donoghue thanked the Drug Enforcement Administration and the Suffolk County Police Department (“SCPD”) for their partnership and outstanding work on the case.
According to court filings and the defendant’s statements during his guilty plea, Jacobellis was selling narcotics as early as 2012. In 2015, the defendant provided heroin that nearly killed then-18-year-old Frances Theiling, who was saved by SCPD officers. One year later, knowing that he had almost killed Theiling, Jacobellis sold the heroin that killed Nicholas Weber, a 20-year-old student. Although Jacobellis was aware that his heroin had killed Weber, the defendant continued to sell heroin until shortly before his arrest in February 2017.
Weber, a graduate of Kings Park High School, was a champion wrestler who attended Suffolk County Community College. Before his death in May 2016, Weber had been admitted to Stony Brook University, where he intended to study physics, for the fall 2016 semester.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone and Nicholas Moscow are in charge of the prosecution.
The Defendant:
RICHARD JACOBELLIS
Age: 24
Ridge, New YorkE.D.N.Y. Docket No. 17-CR-052 (S-1)(JS)
Local Tax Preparer Pleads Guilty to Filing False Claims with the IRSRead the Press Release
Memphis, TN – A local tax preparer has pleaded guilty to filing false claims in the Memphis area. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty plea today.
According to the charging instrument, from calendar years 2014 to 2016, Gina Holley filed false and fraudulent tax returns when she included false Fuel Tax credits. She did so claiming tax payers were entitled to a tax credit, when in fact, Holley knew taxpayers were not entitled to a tax credit claimed. As a result of Holley’s acts, the Internal Revenue Service (IRS) suffered a loss of over $400,000.
U.S. Attorney D. Michael Dunavant said: "One of the primary functions of this office is to protect the United States Treasury and individual taxpayers. Whenever there is fraud against our tax system, we will use all available resources to punish and deter such dishonest criminal behavior."
Holley pleaded guilty to three counts of presenting false claims to the United States. The maximum penalty is 3 years in prison and a $100,000 fine. Sentencing is scheduled on September 20, 2018 before U.S. District Judge Thomas Parker.
This case was investigated by the IRS.
Assistant U.S. Attorney Damon Keith Griffin is prosecuting the case on the government’s behalf.
Lincoln County Man Sentenced to 18 Months in Prison for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – William Shelton, 49, of Lincoln County, was sentenced last week by United States District Judge David Bramlette III to 18 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced United States Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF"). Shelton was also ordered to pay a $1,500 fine.
On September 27, 2017, William Shelton, a convicted felon, sought to sell a new Ruger pistol for $225. The next day, agents with the Southwest Mississippi Narcotics Enforcement Unit set up a controlled buy using a confidential informant. The informant traveled to Shelton’s home in Lincoln County, Mississippi, and asked to buy the gun. Shelton went into his home, retrieved the pistol, and sold it for $225. Before completing the sale, Shelton asked to shoot the gun "one more time." He then fired the gun five times in rapid succession, emptying it of all of its ammunition.
Shelton has a lengthy criminal history, including multiple felony convictions from California. The case was investigated by ATF and the Southwest Mississippi Narcotics Enforcement Unit.
Jury Convicts Kansas Sex Offender of Sexual AssaultsRead the Press Release
SPRINGFIELD, Mo. – An Emporia, Kansas man has been convicted by a federal trial jury of sexually assaulting two victims, including a 5-year-old who was assaulted at Fort Leonard Wood, Mo.
Craig Ralston, 39, was found guilty on Friday, June 15, 2018, of one count of the aggravated sexual abuse of a child less than 12 years of age and one count of crossing state lines with the intent to commit rape.
Ralston is currently incarcerated in Kansas after being sentenced to nine years and two months in state prison. Ralston pleaded no contest in a 2009 Kansas case to two counts of aggravated indecent liberties involving a 12-year-old victim.
Ralston met both of his victims in the federal case while attending a church in St. Roberts, Mo. Ralston was serving in the United States Army and was stationed at Fort Leonard Wood when he sexually abused a 5-year-old child, which occurred between Nov. 1, 2003, and May 20, 2005. Ralston has been discharged and is no longer active in the military.
In 2008, while living in Kansas City, Mo., Ralston raped an 18-year-old victim multiple times. Ralston also took the 18-year-old victim to Knoxville, Tenn., where he was picking up a vehicle that had been purchased for his then-wife to have upon her return from a missionary trip to India. Ralston raped the victim again while they were in Tennessee.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for seven hours before returning the guilty verdicts to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, June 11, 2018.
Under federal statutes, Ralston is subject to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller and Randall Eggert. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Joshua Adam Schulte Charged with the Unauthorized Disclosure of Classified Information and Other Offenses Relating to the Theft of Classified Material from the Central Intelligence AgencyRead the Press Release
John C. Demers, Assistant Attorney General for National Security, Geoffrey S. Berman, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Joshua Adam Schulte was charged in a 13-count Superseding Indictment (the “Indictment”) in connection with his alleged theft of classified national defense information from the Central Intelligence Agency (“CIA”) and the transmission of that material to an organization that purports to publicly disseminate classified, sensitive, and confidential information (“Organization-1”). The Indictment also charges Schulte with the receipt, possession, and transportation of child pornography, as well as criminal copyright infringement. Schulte, who is presently detained on the child pornography charges, will be arraigned by U.S. District Judge Paul A. Crotty.
“Leaks of classified information pose a danger to the security of all Americans,” said Assistant Attorney General Demers. “It adds insult to injury when, as alleged here, the leaks come from former government officials in whom Americans placed their sacred trust. The National Security Division, alongside our partners in the Intelligence Community, will not waver in our commitment to pursue and hold accountable these officials, and I commend all those at the Department of Justice and the FBI who have worked diligently to investigate this matter and bring these charges.”
"Joshua Schulte, a former employee of the CIA, allegedly used his access at the agency to transmit classified material to an outside organization,” said Manhattan U.S. Attorney Geoffrey S. Berman. “During the course of this investigation, federal agents also discovered alleged child pornography in Schulte’s New York City residence. We and our law enforcement partners are committed to protecting national security information and ensuring that those trusted to handle it honor their important responsibilities. Unlawful disclosure of classified intelligence can pose a grave threat to our national security, potentially endangering the safety of Americans.”
“As alleged, Schulte utterly betrayed this nation and downright violated his victims. As an employee of the CIA, Schulte took an oath to protect this country, but he blatantly endangered it by the transmission of Classified Information.” said Assistant Director-in-Charge William F. Sweeney, Jr. “To further endanger those around him, Schulte allegedly received, possessed, and transmitted thousands of child pornographic photos and videos. In an effort to protect this nation against crimes such as these, the FBI's Counterintelligence Division in New York will continue to keep our mission at the forefront of our investigations in protecting the American public."
According to the Indictment, other court filings, and statements made during court proceedings:
On March 7, 2017, Organization-1 released on the Internet classified national defense material belonging to the CIA (the “Classified Information”). In 2016, Schulte, who was then employed by the CIA, stole the Classified Information from a computer network at the CIA and later transmitted it to Organization-1. Schulte also intentionally caused damage without authorization to a CIA computer system by granting himself unauthorized access to the system, deleting records of his activities, and denying others access to the system. Schulte subsequently made material false statements to FBI agents concerning his conduct at the CIA.
Schulte was previously arrested on August 24, 2017, on charges relating to his receipt, possession, and transportation of approximately ten thousand images and videos of child pornography. In March 2017, members of the FBI had searched Schulte’s residence in New York, New York, pursuant to a search warrant and recovered, among other things, multiple computers, servers, and other portable electronic storage devices, including Schulte’s personal desktop computer (the “Personal Computer”). On the Personal Computer, FBI agents found an encrypted container (the “Encrypted Container”), which held over 10,000 images and videos of child pornography. The Encrypted Container with the child pornography files was identified by FBI computer scientists beneath three layers of password protection on the Personal Computer. Each layer, including the Encrypted Container, was unlocked using passwords previously used by Schulte on one of his cellphones. Moreover, FBI agents identified Internet chat logs in which Schulte and others discussed their receipt and distribution of child pornography. FBI agents also identified a series of Google searches conducted by Schulte in which he searched the Internet for child pornography.
Schulte, 29, of New York, New York, is charged with one count each of (i) illegal gathering of national defense information, (ii) illegal transmission of lawfully possessed national defense information, (iii) illegal transmission of unlawfully possessed national defense information, (iv) unauthorized access to a computer to obtain classified information, (v) theft of Government property, (vi) unauthorized access of a computer to obtain information from a Department or Agency of the United States, (vii) causing transmission of a harmful computer program, information, code, or command, (viii) making material false statements to representatives of the FBI, (ix) obstruction of justice, (x) receipt of child pornography, (xi) possession of child pornography, (xii) transportation of child pornography, and (xiii) copyright infringement. A chart containing the charges and maximum penalties is below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative efforts of the FBI.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sidhardha Kamaraju and Matthew Laroche are in charge of the prosecution, with assistance from Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section.Joshua Adam Schulte Charged with the Unauthorized Disclosure of Classified Information and Other Offenses Relating to the Theft of Classified Material from the Central Intelligence AgencyRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that JOSHUA ADAM SCHULTE was charged in a 13-count Superseding Indictment (the “Indictment”) in connection with his alleged theft of classified national defense information from the Central Intelligence Agency (“CIA”) and the transmission of that material to an organization that purports to publicly disseminate classified, sensitive, and confidential information (“Organization-1”). The Indictment also charges SCHULTE with the receipt, possession, and transportation of child pornography, as well as criminal copyright infringement. SCHULTE, who is presently detained on the child pornography charges, will be arraigned by U.S. District Judge Paul A. Crotty.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Joshua Schulte, a former employee of the CIA, allegedly used his access at the agency to transmit classified material to an outside organization. During the course of this investigation, federal agents also discovered alleged child pornography in Schulte’s New York City residence. We and our law enforcement partners are committed to protecting national security information and ensuring that those trusted to handle it honor their important responsibilities. Unlawful disclosure of classified intelligence can pose a grave threat to our national security, potentially endangering the safety of Americans.”
Assistant Attorney General John C. Demers said: “The National Security Division, alongside our partners in the Intelligence Community, will not waver in our commitment to pursue and hold accountable these officials, and I commend all those at the Department of Justice and the FBI who have worked diligently to investigate this matter and bring these charges.”
Assistant Director-in-Charge William F. Sweeney, Jr. said: “As alleged, Schulte utterly betrayed this nation and downright violated his victims. As an employee of the CIA, Schulte took an oath to protect this country, but he blatantly endangered it by the transmission of Classified Information. To further endanger those around him, Schulte allegedly received, possessed, and transmitted thousands of child pornographic photos and videos. In an effort to protect this nation against crimes such as these, the FBI's Counterintelligence Division in New York will continue to keep our mission at the forefront of our investigations in protecting the American public."
According to the Indictment, other court filings, and statements made during court proceedings:[1]
On March 7, 2017, Organization-1 released on the Internet classified national defense material belonging to the CIA (the “Classified Information”). In 2016, SCHULTE, who was then employed by the CIA, stole the Classified Information from a computer network at the CIA and later transmitted it to Organization-1. SCHULTE also intentionally caused damage without authorization to a CIA computer system by granting himself unauthorized access to the system, deleting records of his activities, and denying others access to the system. SCHULTE subsequently made material false statements to FBI agents concerning his conduct at the CIA.
SCHULTE was previously arrested on August 24, 2017, on charges relating to his receipt, possession, and transportation of approximately ten thousand images and videos of child pornography. In March 2017, members of the FBI had searched SCHULTE’s residence in New York, New York, pursuant to a search warrant and recovered, among other things, multiple computers, servers, and other portable electronic storage devices, including Schulte’s personal desktop computer (the “Personal Computer”). On the Personal Computer, FBI agents found an encrypted container (the “Encrypted Container”), which held over 10,000 images and videos of child pornography. The Encrypted Container with the child pornography files was identified by FBI computer scientists beneath three layers of password protection on the Personal Computer. Each layer, including the Encrypted Container, was unlocked using passwords previously used by SCHULTE on one of his cellphones. Moreover, FBI agents identified Internet chat logs in which SCHULTE and others discussed their receipt and distribution of child pornography. FBI agents also identified a series of Google searches conducted by SCHULTE in which he searched the Internet for child pornography.
* * *
SCHULTE, 29, of New York, New York, is charged with one count each of (i) illegal gathering of national defense information, (ii) illegal transmission of lawfully possessed national defense information, (iii) illegal transmission of unlawfully possessed national defense information, (iv) unauthorized access to a computer to obtain classified information, (v) theft of Government property, (vi) unauthorized access of a computer to obtain information from a Department or Agency of the United States, (vii) causing transmission of a harmful computer program, information, code, or command, (viii) making material false statements to representatives of the FBI, (ix) obstruction of justice, (x) receipt of child pornography, (xi) possession of child pornography, (xii) transportation of child pornography, and (xiii) copyright infringement. A chart containing the charges and maximum penalties is below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative efforts of the FBI.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sidhardha Kamaraju and Matthew Laroche are in charge of the prosecution, with assistance from Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section.
Count Number
Description
Maximum Penalty
One
Illegal Gathering of National Defense Information
18 U.S.C. §§ 793(b) and 2
10 years in prison
Two
Illegal Transmission of Lawfully Possessed National Defense Information
18 U.S.C. §§ 793(d) and 2
10 years in prison
Three
Illegal Transmission of Unlawfully Possessed National Defense Information
18 U.S.C. §§ 793(e) and 2
10 years in prison
Four
Unauthorized Access to a Computer To Obtain Classified Information
18 U.S.C. §§ 1030(a)(1) and 2
10 years in prison
Five
Theft of Government Property
18 U.S.C. §§ 641 and 2
10 years in prison
Six
Unauthorized Access of a Computer to Obtain Information from a Department or Agency of the United States
18 U.S.C. §§ 1030(a)(2) and 2
5 years in prison
Seven
Causing Transmission of a Harmful Computer Program, Information, Code, or Command
18 U.S.C. §§ 1030(a)(5) and 2
10 years in prison
Eight
Making False Statements
18 U.S.C. §§ 1001 and 2
5 years in prison
Nine
Obstruction of Justice
18 U.S.C. §§ 1503 and 2
10 years in prison
Ten
Receipt of Child Pornography
18 U.S.C. §§ 2252A(a)(2)(B), (b)(1), and 2
20 years in prison
Eleven
Possession of Child Pornography
18 U.S.C. §§ 2252A(a)(5)(B), (b)(2), and 2
10 years in prison
Twelve
Transportation of Child Pornography
18 U.S.C. § 2252A(a)(1)
20 years in prison
Thirteen
Criminal Copyright Infringement
17 U.S.C. § 506(a)(1)(A) and 18 U.S.C. § 2319(b)(1)
5 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, the description of the Indictment set forth herein, as well as the other statements described herein, constitute only allegations, and every fact described should be treated as an allegation.
Jefferson County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Edwin Rogers, of Kearneysville, West Virginia, was sentenced today to 63 months incarceration for a firearms violation, United States Attorney Bill Powell announced.
Rogers, age 28, who had previously been convicted of a felony offense in Jefferson County, is prohibited from possessing a firearm. He pled guilty today to one count of “Unlawful Possession of a Firearm” in March 2018. The crime occurred on April 27, 2016 in Berkeley County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Adam Joseph Plauche, of Harpers Ferry, West Virginia, was sentenced today to 18 months incarceration for selling a stolen firearm, United States Attorney Bill Powell announced.
Plauche, age 38, pled guilty to one count of “Possession and Sale of Stolen Firearm” in March 2018. Plauche admitted to having a stolen firearm and shipping it across state lines in September 2015 in Jefferson County, West Virginia.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Paul T. Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jackson Man Gets 5 years in Prison for Illegally Possessing Firearm under Project EJECTRead the Press Release
Jackson, Miss. – Jason Lewis, 33, of Jackson, was sentenced on June 11, 2018, by United States District Judge Carlton W. Reeves, to 5 years in federal prison, followed by 3 years of supervised release, for illegally possessing a gun, announced United States Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF"). Lewis was also ordered to pay a $1,500 fine.
On November 26, 2017, Jason Lewis, a convicted felon, possessed a gun inside his jacket pocket at Union Station, a train station in Jackson. Lewis has several previous felony convictions, including multiple convictions for aggravated assault and a conviction for possession of cocaine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with ATF agents and Project EJECT task force members in the investigation of this case.
Irish National Admits to Improper Use of A PassportRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Adam Doumbouya, 30, of Ireland, pleaded guilty to improper use of another person’s passport before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that the defendant attempted to enter the United States at the Amtrak Train Station Port of Entry in Niagara Falls on November 19, 2017. Doumbouya presented an Irish passport to a Customs and Border Protection Officer bearing the name Mariame Kourouma. The defendant also told the officer she was traveling to New York City to visit relatives.
An officer entered Doumbouya’s fingerprints into a Fingerprint Identification System and determined that she was in fact Adam Doumbouya, a citizen of Ireland, and not Mariame Kourouma. The investigation further revealed that the defendant was previously denied entry to the United States at the Rouses Point, New York Port of Entry, and had been refused a visa at the United States consulate in Dublin.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.Sentencing is scheduled for August 8, 2018, at 1:00 p.m. before Judge Arcara.
Hope Arkansas Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Lacortney D. Sanders (aka “Supreme”), age 36, of Hope, Arkansas was sentenced today to 121 months in federal prison followed by five years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, in November 2013, during the course of an investigation into the distribution of methamphetamine in Hampstead County, Arkansas and elsewhere in the Western District of Arkansas, the FBI and the FBI Task Force identified Sanders as a source of supply of methamphetamine. During the investigation, agents were able to purchase methamphetamine from Sanders utilizing a confidential informant. The suspected methamphetamine was subsequently submitted to the Arkansas State Crime Laboratory where it was tested and determined to be a mixture or substance containing methamphetamine.
Sanders was indicted by a federal grand jury in February 2015 and pled guilty in January 2017.
This case was investigated by The FBI and the FBI Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Holden Man Pleads Guilty to Marijuana Conspiracy and StructuringRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Christopher Ruhlin, 49, of Holden, pleaded guilty today in U.S. District Court to conspiring to manufacture, distribute, and possess with intent to distribute marijuana and to structuring cash transactions to evade federal cash transaction reporting requirements.
According to court records, between October 2010 and August 2016, the defendant conspired with others to illegally grow marijuana at a facility in Frankfort, Maine and to distribute it at the Owl’s Club, in Bangor in violation of federal law, and under the cover of, but in violation of, Maine’s Medical Marijuana program. The defendant and others operated the Frankfort facility until 2013. Thereafter, others operated it. In May 2016, agents searched the Frankfort facility and seized marijuana in various stages of harvest and cultivation, together with paraphernalia and items used to manufacture and process marijuana. In August 2016, agents searched property owned by the defendant in downtown Bangor, including the Owl’s Club, and seized processed marijuana. At the time of the searches, the defendant was not registered as a medical marijuana caregiver with the Maine Department of Health and Human Services (DHHS), and the location of the Frankfort facility was not reported to DHHS as required.
Under federal law, financial institutions that receive more than $10,000 in cash from a customer are required to report the transaction to the Internal Revenue Service (IRS). Structuring occurs when a customer breaks up cash transactions into multiple increments of less than $10,000, to avoid these cash transaction reporting requirements. On May 28, 2013, the defendant structured cash deposits into his bank account in order to cause the bank not to file a currency transaction report.
The defendant faces up to 20 years in prison, between three years and life of supervised release, and a $1,000,000 fine for the drug conspiracy. He faces up to five years in prison, a $250,000 fine, and up to three years of supervised release for structuring. In a plea agreement, the defendant agreed to forfeit $115,000. The defendant will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Drug Enforcement Administration.
Hancock County man sentenced for child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Michael Dziatkowicz, of Weirton, West Virginia, was sentenced today to 24 months incarceration for possessing child pornography, United States Attorney Bill Powell announced.
Dziatkowicz, age 36, pled guilty to one count of “Possession of Child Pornography” in March 2018. Dziatkowicz admitted to having child pornography in February 2015 in Hancock County, West Virginia.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Hancock County Sheriff’s Office investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Hagerstown Heroin Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Joseph King, age 25, of Hagerstown, Maryland today to 10 years in prison, followed by three years of supervised release, for distribution of heroin and furanyl fentanyl resulting in serious bodily injury to an individual who suffered two overdoses and died after using the drugs.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Scott Hoernke of the Drug Enforcement Administration - Washington Field Division; Sheriff Charles A. “Chuck” Jenkins; and Hagerstown Police Chief Victor Brito and Washington County Sheriff Doug Mullendore of the Washington County Narcotics Task Force.
According to King’s plea agreement, on June 1, 2016, he distributed heroin to Nicholas Perry on two separate occasions at a gas station in Hagerstown, Maryland. The second batch Perry received from King was laced with furanyl fentanyl. After using the second batch of heroin, Perry suffered a non-fatal overdose. First responders were able to revive Perry after administering two doses of Narcan before taking him to the hospital. Perry left the hospital against medical advice, and early the next morning he suffered a second overdose and died at his residence in Frederick, Maryland. Investigators seized some folded paper with heroin residue at the scene, as well as a small packet of heroin from the dumpster. The residue and heroin were analyzed and found to be heroin and furanyl fentanyl. The Maryland Office of the Chief Medical Examiner ruled the cause of death as mixed drug intoxication, specifically, heroin, fentanyl and despropionyl fentanyl.
On three separate occasions between June 3, and June 13, 2016, King distributed heroin, and heroin laced with furanyl fentanyl, totaling 2.3 grams, to a cooperating individual. On November 9, 2016, King was interviewed by law enforcement after waiving his rights. King admitted that he twice sold heroin to Perry on June 1, 2016.
United States Attorney Robert K. Hur praised the DEA, Frederick County Sheriff’s Office, and Washington County Narcotics Task Force, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Burden H. Walker, who prosecuted the case.
Georgia couple sentenced to prison for scheme to steal tax refunds using stolen identitiesRead the Press Release
ATLANTA - Raphael Menard and Leshanda Hunte have been sentenced to federal prison for running a tax refund scheme using the stolen identities of disabled and elderly taxpayers and causing more than a $250,000 loss to the government.
“Menard and Hunte preyed on elderly and disabled citizens who were the most vulnerable and the least likely to report the defendants’ crimes,” said U.S. Attorney Byung J. “BJay” Pak. “As those who perpetrate these types of crimes become more creative, citizens must closely monitor their own personal information to avoid becoming another victim of their schemes.”
“The defendants purposefully targeted our more vulnerable citizens and used that to their advantage in perpetrating the fraud scheme,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “The defendants’ lack of compassion and disregard for this segment of the citizenry continues to drive our commitment to investigating these matters as we partner with the United States Attorney’s Office in the reduction of identity theft crimes in the area.”
According to U.S. Attorney Pak, the charges and other information presented in court: Starting in 2011, Menard and Hunte ran a fraud scheme that involved filing fraudulent federal income tax returns in the names of other people. This scheme netted over $250,000 for the defendants. Menard and Hunte targeted disabled and elderly victims who did not file income tax returns and would not report the theft of their identities to the IRS. Some of the tax returns were filed using the identities of people who had recently died.
Menard and Hunte shared responsibility for perpetrating their illegal scheme and used the ill-gotten proceeds to finance a lavish personal lifestyle, including travel and large retail purchases. The scheme unraveled after employees at Chase Bank noticed the suspicious deposits and froze the couple’s joint accounts. This led Hunte to go to the bank and demand the release of the stolen money, telling bank employees that she was a tax preparer and the refunds belonged to her clients. In reality, none of the victims knew Hunte or Menard, and the defendants were not registered tax preparers.
On October 31, 2012, Hunte brought a relative to the bank who presented fake identification in the name of one of Hunte’s victims, causing the bank to release over $8,500 in cash to Hunte. Two days later, Menard attempted to pull off the same scheme, but was arrested after bank employees spotted the fake identification. Menard’s arrest led to the seizure of the money that remained in the defendants’ bank accounts and launched an IRS investigation that uncovered the extent of their scheme.
Raphael Menard, 33, of Marietta, Georgia has been sentenced to three years, 10 months in prison to be followed by three years of supervised release. Menard pleaded guilty to conspiracy and theft of government money on January 10, 2018.
Leshanda Hunte, 34, of Marietta, Georgia has been sentenced to two years, six months in prison to be followed by two years of supervised release. Hunte was found guilty of conspiracy and theft of government money by a jury on February 16, 2018.
Menard and Hunte were ordered to pay restitution to the government in the amount of $206,564.04.
This case was investigated by the Internal Revenue Service Criminal Investigation Division.
Assistant U.S. Attorneys Trevor Wilmot and Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gardiner Man Pleads Guilty to Producing and Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Richard Bailey, 67, of Gardiner, Maine, pleaded guilty today in U.S. District Court to production and possession of child pornography.
According to court records, law enforcement agents received information that the defendant was uploading images of child pornography to various websites. Based on this information, they obtained a search warrant for the defendant’s home in Gardiner. During the execution of the search warrant, the defendant admitted that agents would find multiple images of child pornography involving underage boys on his electronic devices. The investigation revealed that the defendant produced child pornography by encouraging adults in the Philippines during online chats to engage in sexual activity with children that was videotaped, photographed, and disseminated in real time over the internet. A forensic examination of the defendant’s electronic devices revealed multiple images and videos of child pornography including images obtained from the Philippine sex shows.
The defendant faces between 15 and 30 years in prison on the production count and up to 20 years on the possession count. He faces supervised release for life and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Maine State Police Computer Crimes Unit. 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. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fulton Woman Sentenced to 30 Years for Child Pornography ProductionRead the Press Release
SYRACUSE, NEW YORK – Tammy Lamere, age 47, of Fulton, New York, was sentenced today to serve 30 years in prison for conspiracy to sexually exploit and sexual exploitation of a child, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Division of Homeland Security Investigations (HSI).
The sentencing follows Lamere’s earlier plea of guilty in which she admitted to conspiring with Cilf Seaway to sexually abuse a child from 2010-2013, when the child was between the ages of 5 and 9 years old. Lamere admitted that the abuse was photographed on at least 11 occasions, in which approximately 225 images and videos were produced.
Senior United States District Judge Norman A. Mordue sentenced Lamere to 30 years on each of her two counts of conviction, to run concurrently to one another. Following her sentence, Lamere will be on supervised release for 15 years, and will be required to register as a sex offender.
Co-defendant Clif Seaway was sentenced to serve 360 years in prison in connection with his convictions for two counts of Conspiracy to Sexually Exploit Children and ten counts of Sexual Exploitation of a Child, following a four-day jury trial in December 2017. In a related case, Tammy Martin of Carthage, New York, was sentenced to serve 90 years in prison for her conviction by guilty plea on three counts of sexual exploitation of a child that involved three different children.
Lamere’s case was investigated by the New York State Police, and the United States Department of Homeland Security, Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorneys Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Carina Schoenberger.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former LAPD Officer Sentenced to 60 Months in Federal Prison After Illegal Drug Lab Exploded in His GarageRead the Press Release
LOS ANGELES – A former Los Angeles Police Department officer whose garage explosion revealed the makeshift lab where he used butane to extract hashish oil containing tetrahydrocannabinol, or “THC,” from marijuana plants, was sentenced to five years in federal prison.
Joseph Jay Spadafore, 64, of Menifee was sentenced this morning by United States District Judge John F. Walter after a federal jury found him guilty of maintaining drug involved premises.
During the trial in March, 2018, a jury heard evidence that Spadafore, who was an LAPD officer from 1976 to 1991, converted a house into a drug lab where he extracted hashish oil containing THC from marijuana plants using a dangerous process involving butane, a highly flammable gas. A Los Angeles Fire Captain testified about the 911 calls from neighbors reporting a loud explosion just before midnight on November 3, 2017, and a call from Spadafore himself at the house in a residential neighborhood in Lake Elsinore.
At the time of the explosion and subsequent fire, Spadafore was the only person living at the house, which the homeowner believed had been rented to a different man residing in Florida. When the firefighters arrived to combat the blaze, the entire garage was engulfed in flames and Spadafore was the only person present. When the firefighters swept the house for additional occupants, they instead found what they immediately recognized as potentially hazardous lab equipment and chemicals in almost every room. Law enforcement subsequently seized at least 22 propane tanks in the garage, dozens of soda kegs and other large containers filled with extracted THC, jars of THC powder, butane and trash bags filled with marijuana. In total, law enforcement found over 28 liters of hashish oil containing THC scattered in virtually every room of the residence, which had been converted almost entirely into a drug lab.
The jury heard testimony that the only room in the home that appeared occupied was the master bedroom, which was filled with Spadafore’s mail and personal belongings, including two firearms. One firearm was loaded and found underneath Spadafore’s pillow.
At sentencing, Judge Walter rejected Spadafore’s argument that he was simply “crashing” at the house because he needed a place to sleep, finding that he was involved in the manufacture of hashish oil at the house and that Spadafore possessed the two firearms to protect himself and the drugs, which were valued at between $300,000 and $500,000. Among the factors Judge Walter cited as influencing his sentence were Spadafore’s lack of any acceptance of responsibility or remorse for failing to warn first responders about the dangerous quantities of butane and propane inside the home and garage before they entered to conduct a safety sweep when responding to the fire.
This case was investigated by the DEA’s Riverside Field Office. The case was prosecuted by Assistant United States Attorneys Jehan M. Pernas and Frances S. Lewis of the General Crimes Section and Kathy Yu of the Organized Crime Drug Enforcement Task Force Section.
Former IRS-CI Special Agent Convicted of Filing False Tax Returns, Theft of Government Money and Obstruction of JusticeRead the Press Release
A former special agent for the Internal Revenue Service Criminal Investigation (IRS-CI) Division was convicted on June 15 after a jury in Sacramento, California found her guilty of filing false tax returns, obstruction of justice and stealing government money, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Alex G. Tse for the Northern District of California.
According to court documents and evidence introduced at trial, Alena Aleykina, who is also a Certified Public Accountant and holds a master’s degree in business administration, filed six false tax returns: three personal tax returns for years 2009, 2010, and 2011 and three in the names of trusts she created for years 2010 and 2011. On her personal tax returns, Aleykina fraudulently claimed the head of household filing status, false dependents, and deductions for education expenses to which she was not entitled. On her trust tax returns, she failed to report rent she received from the tenants of her rental property and falsely claimed to be paying wages to her mother and her sister to care for her son and for her father.
Additionally, Aleykina stole government funds and obstructed justice during the investigation. She stole from the IRS’s Tuition Assistance Program by falsely claiming $4,000 in tuition reimbursement for classes that she did not take. When criminal investigators approached Aleykina to retrieve her government laptop, Aleykina lied to the agents about the location of the laptop and began deleting files from the computer after the agents left. The total loss to the government from Aleykina’s conduct is more than $60,000.
Sentencing has been scheduled for Sept. 25 before Judge John A. Mendez. Aleykina faces a maximum statutory penalty of three years in prison for each false tax return count, 10 years in prison for theft of government funds, and 20 years in prison for obstruction of justice as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Tse thanked special agents of the Treasury Inspector General for Tax Administration and IRS-CI, who conducted the investigation, and Assistant U.S. Attorney William Frentzen and Tax Division Trial Attorneys Arthur Ewenczyk and Charles O’Reilly, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former IRS-CI Special Agent Convicted of Filing False Tax Returns, Theft of Government Money and Obstruction of JusticeRead the Press Release
SAN FRANCISCO – Alena Aleykina, former special agent for the Internal Revenue Service Criminal Investigation (IRS-CI) Division, was convicted on June 15 after a jury in Sacramento, Calif., found her guilty of filing false tax returns, obstruction of justice, and stealing government money, announced Acting U.S. Attorney Alex G. Tse and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. The verdict followed a two-week trial in the district court in the Eastern District of California before the Honorable John A. Mendez, U.S. District Judge.
According to court documents and evidence introduced at trial, Aleykina, of Sacramento, is a Certified Public Accountant and holds a master’s degree in business administration. She filed six false tax returns: three personal tax returns for years 2009, 2010, and 2011 and three in the names of trusts she created for years 2010 and 2011. On her personal tax returns, Aleykina fraudulently claimed the head of household filing status, false dependents, and deductions for education expenses to which she was not entitled. She also falsely claimed on a trust tax return to be paying wages to her mother and her sister to care for her son and for her father.
Additionally, Aleykina stole government funds and obstructed justice during the investigation. She stole from the IRS’s Tuition Assistance Program by falsely claiming $4,000 in tuition reimbursement for classes that she did not take. When criminal investigators approached Aleykina to retrieve her government laptop, Aleykina lied to the agents about the location of the laptop and began deleting files from the computer after the agents left. The total loss to the government from Aleykina’s conduct is more than $60,000.
Sentencing has been scheduled for September 25, 2018, before Judge Mendez. Aleykina faces a maximum statutory penalty of three years in prison for each false tax return count, 10 years in prison for theft of government funds, and 20 years in prison for obstruction of justice. In addition, the court may order Aleykina to serve an additional period of supervised release, and pay restitution and monetary penalties. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant U.S. Attorney William Frentzen and Tax Division Trial Attorneys Arthur Ewenczyk. The United States Attorney’s Office in San Francisco, California, is prosecuting this case with the Tax Division; the United States Attorney’s Office for the Eastern District of Califonia is recused from this matter.
Former Crockett County 911-Director Convicted of EmbezzlementRead the Press Release
Jackson, TN – After a two-week trial in federal court, on Friday, June 15, 2018, Brian Black, 42, of Dyersburg, Tennessee, was convicted of embezzlement. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty verdict today.
According to information presented in court, Black embezzled at least $178,000 from the trust account of Oleen H. Fewell Estate. Black was the Chancery Court appointed trustee for the trust, which had been set up by the will of Oleen Fewell for benefit of her daughter, Sharon Connor of Alamo, Tennessee. Instead of using the trust’s money for the benefit only of Sharon Connor, Black spent a large part of the trust’s funds for his own personal benefit. Among other things, Black wrote over $70,000 in trust checks directly to himself, spent almost $6,000 of trust money to take a vacation trip to Florida to attend the St. Louis Cardinals baseball team fantasy camp, and used over $12,000 of trust money to buy items for his own home in Dyersburg.
U.S. Attorney D. Michael Dunavant said: "This office is committed to exposing and holding accountable any persons who use their position of trust and authority to prey upon innocent victims. Across the rural communities of the Western District of Tennessee, including Crockett County, we will always aggressively prosecute cases involving financial fraud and exploitation of the elderly. We are pleased with the jury verdict in this case, and commend the United States Postal Inspection Service for their outstanding investigation in this complex matter."
David M. McGinnis, the Inspector In Charge of the Charlotte Division of the United States Postal Inspection Service, stated "Protecting vulnerable victims is a top priority for the Postal Inspection Service. Postal Inspectors are committed to protecting the sanctity of the United States Mail and will hold those accountable that steal from innocent victims."
By the time United States Postal Inspectors learned of the fraud and began an investigation, Black had spent all of the money in the trust account. Black was the former 911 director for Crockett County.
Sentencing is scheduled for September 18, 2018 at 10:00 a.m. before Chief U.S. District Judge S. Thomas Anderson. Black faces a possible maximum sentence of 90 years imprisonment.
The United States Postal Inspection Service investigated this case.
Assistant U.S. Attorney Tony Arvin is prosecuting this case on the government’s behalf.
Former Arkansas State Senator Sentenced to Prison for Wire Fraud, Money Laundering, and Bank FraudRead the Press Release
Former Arkansas State Senator Jake C. Files was sentenced to 18 months in prison for orchestrating a scheme to obtain approximately $46,500 in state government funds through fraudulent means and for obtaining approximately $56,700 in loan proceeds, also through fraudulent means.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Duane A. Kees for the Western District of Arkansas made the announcement.
Files, 46, of Fort Smith, Arkansas who represented Arkansas’s state legislative district No. 8 in the Arkansas State Senate until his resignation in January 2018 following his guilty plea in this matter, was sentenced by Chief U.S. District Court Judge P. K. Holmes III of the Western District of Arkansas. Judge Holmes ordered Files to serve three years of supervised release following his prison sentence as well as pay restitution in the amount of $83,903.77. Files was ordered to surrender to the U.S. Marshals Service to begin serving his sentence on Aug. 2.
Files pleaded guilty to wire fraud, money laundering, and bank fraud on Jan. 29. According to admissions made in connection with his guilty plea, between August 2016 and December 2016, while serving in the Arkansas State Senate, Files used his senate office to obtain government money known as General Improvement Funds (GIF) through fraudulent means and for personal gain. Specifically, Files authorized and directed the Western Arkansas Economic Development District, which was responsible for administrating the GIF in Files’s legislative district, to award a total of $46,500 in GIF money to the City of Fort Smith. To secure the release of the GIF money, Files prepared and submitted three fraudulent bids to the Western Arkansas Economic Development District. Files then instructed an associate to open a bank account under that person’s name to conceal his role as the ultimate beneficiary of the GIF award. When a first installment of approximately $25,900 was wire transferred from the City of Fort Smith to the associate’s bank account, the associate withdrew approximately $11,900 of the funds in a cashier’s check made payable to FFH Construction, Files’s construction company, and the rest in cash. The associate then hand-delivered the check and the cash to Files who, in turn, deposited the check into his personal bank account.
Files also admitted to submitting a materially false loan application in November 2016 in connection with a loan application for approximately $56,700 from First Western Bank.
The FBI investigated the case. Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas prosecuted the case.
Former Arkansas State Senator Sentenced to 18 Months in Federal Prison for Wire Fraud, Money Laundering, and Bank FraudRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that Jake C. Files, age 46, of Fort Smith, Arkansas, was sentenced today to 18 months in federal prison followed by three years of supervised release. Files was also ordered to pay $83,903.77 in restitution, on one count each of Wire Fraud, Money Laundering and Bank Fraud. Files was ordered to surrender to the U.S. Marshals Service to begin serving his sentence on Aug. 2. The Honorable Chief Judge P. K. Holmes III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, between August 2016 and December 2016, while serving in the Arkansas State Senate, Files used his senate office to obtain government money known as General Improvement Funds (GIF) through fraudulent means and for personal gain. Specifically, Files authorized and directed the Western Arkansas Economic Development District, which was responsible for administrating the GIF in Files’s legislative district, to award a total of $46,500 in GIF money to the City of Fort Smith. To secure the release of the GIF money, Files prepared and submitted three fraudulent bids to the Western Arkansas Economic Development District. Files then instructed an associate to open a bank account under her name to conceal his role as the ultimately beneficiary of the GIF award. When a first installment of approximately $26,900 was wire transferred from the City of Fort Smith to the associate’s bank account, the associate withdrew approximately $11,900 of the funds in a cashier’s check made payable to FFH Construction, Files’s construction company, and the rest in cash. The associate then hand-delivered the check and the cash to Files who, in turn, deposited the check into his personal bank account.
Files also admitted to submitting a materially false loan application in application in November 2016 as part of a scheme to secure approximately $56,700 from First Western Bank.
Files plead guilty in January 2018.
This case was investigated by the Federal Bureau of Investigations. Assistant United States Attorney’s Kyra Jenner and Aaron Jennen from the Western District of Arkansas and Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section prosecuted the case for the United States.
Former Allen County Sheriff indicted for soliciting bribes, extortion, making false statementsRead the Press Release
The former Allen County Sheriff was indicted in federal court for asking for and taking bribes from drug dealers, people arrested in prostitution stings, suspected gamblers and others.
Samuel A. Crish, 54, was charged in a six-count indictment with multiple counts of extortion, soliciting bribes and making false statements to the FBI.
“The conduct described in these charges is as offensive as it is audacious,” U.S. Attorney Justin E. Herdman said. “Demanding bribes from drug dealers, gamblers and johns arrested in prostitution stings reads like something out of a bad movie. This defendant let down the people of Allen County and the men and women who served with him at the Sheriff’s Office. He does not represent the vast majority of law enforcement, and he will now be held accountable for his crimes.”
“Mr. Crish tarnished his badge when he chose to use his official capacity to influence criminal investigations and to protect his self-interests,” said FBI Special Agent in Charge Stephen D. Anthony. “He further exacerbated the situation by lying to the FBI in an attempt to conceal his criminal conduct. As Mr. Crish was a law enforcement officer and county sheriff -- sworn to uphold the law -- his conduct is particularly egregious.”
The charges detail Crish extorting or soliciting nearly $100,000 from five people between 2012 and 2016.
According to the indictment:
Crish joined the Allen County Sheriff’s Office in 1991, where he held numerous positions, including commander of the office’s Investigative Division and the West Central Ohio Crime Task Force (WCOCTF). He was elected sheriff in 2008, 2012 and 2016.
In June 2012, Crish approached a person identified in the charges as Person 1 and asked Person 1 for $8,000, falsely stating he needed the money to cover medical bills. Person 1 gave Crish the money in cash in an alley behind the sheriff’s office in July 2012.
Two months later, Person 1 applied for the position of nurse at the Allen County Jail, which Crish oversaw. Based on conversations with Crish, Person 1 understood the job was theirs. Crish stated in October 2012 he would try to hire Person 1 as nurse. In the same conversation, he stated he needed $42,000 to pay his debts and asked if Person 1 could help.
Person 1 took out a home equity line of credit and, on Oct. 12, 2012, gave Crish a check for $42,000 in the alley behind the sheriff’s office. Crish agreed to repay the money in monthly increments of $480. On Dec. 15, 2012, Person 1 was hired by the Allen County Sheriff’s Office to work as the nurse at the county jail.
In 2011, the WCOCTF was investigating Person 2 for drug offenses. That investigation did not result in criminal charges. In 2013, Person 2 called Crish and asked that he not send deputies for a two-day party Person 2 planned in which he charged a cover, sold liquor and generated a profit of up to $15,000.
Crish then sent Person 2 numerous messages asking about money. At some point in February or March 2013, Person 2 gave Crish $20,000 in cash. Crish promised to repay the money plus $5,000 in interest within a few weeks.
Crish and Person 2 met on April 22, 2013 to discuss an undercover operation, and Crish told Person 2 he was “going to get indicted.” Crish also stated he would “take care of it” if Person 2 would forgive half of the $20,000 debt.
Crish made small repayments to Person 2 in April and May 2013. The WCOCTF investigated Person 2 for drug trafficking and Person 2 was arrested on Dec. 5, 2013. Crish was named as a defense witness. Person 2 pleaded guilty in Allen County Court of Common Pleas on Sept. 23, 2014 and was sentenced to 24 years in prison on Dec. 2, 2014.
Person 3 operated a used car business and was arrested by members of the sheriff’s office and WCOCTF on Aug. 19, 2015 during a prostitution sting. He was charged with solicitation in Lima Municipal Court.
Crish visited Person 3’s business several times in August and September 2015, at one point asking Person 3 for a $7,000 loan. Person 3 gave Crish a check for $7,000 on Sept. 25, 2015.
Crish met with prosecutors and law enforcement officials about Person 3’s case on Nov. 24, 2015, and demanded the Lima City Attorney’s Office drop the charges. The solicitation case was dismissed on Feb. 18, 2016. Eight days later, Crish texted Person 3 to meet, where they discussed the dismissal of Person 3’s case.
Person 4 operated a used car business in Elida, Ohio. Crish asked Person 4 in September 2015 to work as an informant. He also asked Person 4 to loan him $10,000.
Person 4 gave Crish $10,000 in cash on Nov. 3, 2015. The next day, Person 4 was arrested at a motel in Lima as part of a prostitution sting operation. Following his arrest, Person 4 asked to speak to Crish. All of the other men arrested were charged.
Crish visited Person 4’s business on Nov. 5, 2015, and told him not to worry about the arrest because he was working for Crish.
Crish visited Person 4’s business again on Nov. 17, 2015, and asked for $500. Person 4 insisted Crish would have to pay back the $500, unlike the previous $10,000. Crish called Person 4 in May 2016 and told him he was “fine” referring to the charges for the prostitution arrest.
Person 5 owned a grocery store in Allen County. Crish stopped by Person 5’s business in October 2015 to ask for a loan. Crish inferred during the visit that an agency was coming to investigate Person 5’s business for suspected illegal gambling operations, but that Crish could stop the investigation if Person 5 provided Crish with a loan.
Person 5 gave Crish a $2,000 loan in October 2015, which Crish repaid without interest.
This case was investigated by the FBI and the Ohio Bureau of Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Noah Hood and Gene Crawford.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Eighth Member of Reading-Area Bank Fraud Ring ChargedRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a Reading, Pennsylvania woman—the eighth member of a Reading-area bank fraud ring—has been charged with fraud.
A criminal information has been filed charging, Xavanna Olivera, 19, with one count of bank fraud. Olivera is alleged to be a member of a bank fraud ring operated by Steven Ronald Randall of Philadelphia.
Randall previously pleaded guilty on March 15, 2018, to one count of bank fraud and five counts of aggravated identity theft before U.S. District Judge Joseph F. Leeson, Jr. As part of his guilty plea, Randall admitted that he was a leader of a scheme to defraud First National Bank. Randall further admitted that as a result of this scheme, FNB sustained actual losses in excess of $76,519, with intended losses of in excess of $115,782. Randall also admitted that he transferred funds to inmates incarcerated within the Pennsylvania Department of Corrections via accounts opened by others involved in the scheme.
The information alleges that in return for a share of the fraud proceeds, Olivera opened an account at FNB that she knew would be used to deposit fraudulent checks and to withdraw cash before the bank discovered that the checks were fraudulent.
Olivera faces a maximum sentence of 30 years’ incarceration, a five-year period of supervised release, and a fine of $1,000,000.
Olivera is the eighth member charged as part of this group. In addition to Olivera and Randall, the other members of the bank fraud ring previously charged are Jaylen Jefferson, 19, of Reading, Dawson Thomas, 19, of Mohnton, Rebecca Ilie, 25, of Reading, Linda Pacheco, 40, of Reading, Angel Ocasio, Jr., 20, of Reading, and Jair Peralta, 19, of Kenhorst.
The case was investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Cumru Township Police Department and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Detroit Man Sentenced to Twenty Years in Prison for Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who led a multi-year conspiracy to distribute heroin in the Huntington area was sentenced today to 20 years in federal prison, announced United States Attorney Mike Stuart. Charles Duncan Pippins, 49, was previously convicted following a jury trial in January 2018 of conspiracy to distribute 100 grams or more of heroin. Pippins also pled guilty to the other indicted charges – one count of distributing heroin and one count of possessing heroin with intent to distribute. Stuart commended the investigation conducted by the Cabell County Sheriff’s Department.
“This sentence should put other Detroit drug dealers on notice,” said United States Attorney Mike Stuart. “If you come into our communities selling dangerous drugs like heroin and fentanyl, we will lock you up for a very long time.”
During the trial, witnesses for the United States testified that from the summer of 2013 to September 2016, Pippins conspired with others to distribute over 100 grams of heroin in the Huntington area. The evidence showed that during the course of the conspiracy, Pippins recruited multiple co-conspirators who transported heroin on his behalf from his residence in Detroit to Huntington. Witnesses testified that Pippins used the same individuals to distribute heroin, and to rent hotel rooms in their names, which he used for selling heroin. The evidence further showed that Pippins would front heroin to individuals to sell, and that they would bring the cash proceeds back to him at hotels in Huntington or at his residence in Detroit.
Pippins also pleaded guilty to the other indicted charges, admitting that on September 12, 2016, deputies with the Cabell County Sheriff’s Department used a confidential informant to make a controlled purchase of heroin from Pippins. The informant traveled to the Days Inn Hotel located on U.S. Route 60 in Huntington, where Pippins distributed heroin to the informant. Deputies executed a search warrant on his room, and as agents entered, Pippins flushed heroin down the toilet. During the search of the room, deputies seized approximately six grams of heroin that Pippins admitted he intended to sell. An analyst with the West Virginia State Police Forensic Laboratory confirmed that the heroin was mixed with fentanyl, a powerful opiate painkiller.
At today’s sentencing hearing, the Court found that Pippins was responsible for the distribution of at least 3 kilograms of heroin during the conspiracy. The Court also imposed an increased sentence based on Pippins’ role as an organizer and leader of the conspiracy.
Assistant United States Attorneys Joseph F. Adams and Matt Davis handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case was part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Crane Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Crane, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Kenneth A. Hoffman, 47, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The leaders of the drug-trafficking conspiracy were Kenneth R. Friend, 47, of Springfield, and Kenna Harmon, 39, of Republic, Mo., who obtained pound amounts of methamphetamine from sources in Kansas City, St. Louis, and Oklahoma for distribution in the Springfield area. The investigation resulted in the indictment of 29 co-defendants. In total, the Friend/Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014.
Hoffman, who pleaded guilty to his role in the conspiracy on Dec. 8, 2016, admitted he purchased methamphetamine from Harmon, which he distributed to others. During the course of the conspiracy, Hoffman was found in possession of over 768.5 grams of methamphetamine and $3,258. After the conspiracy, Hoffman was found by law enforcement in possession of an additional 774 grams of methamphetamine.
Hoffman has a prior state felony drug conviction for the distribution, delivery, or manufacture of a controlled substance.
Friend pleaded guilty on April 11, 2018, and awaits sentencing. Harmon pleaded guilty and was sentenced on May 29, 2018, to 21 years and six months in federal prison without parole.
Harmon’s husband, Daniel Harmon, was also a leader of the drug-trafficking conspiracy. In December 2013, Daniel Harmon was stopped by law enforcement officers outside of St. Louis. During a search of his vehicle, officers discovered approximately four pounds of methamphetamine, $60,000 and a handgun. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm. After Daniel Harmon’s arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization in its distribution of methamphetamine.
Hoffman is among 24 co-defendants who have been sentenced in this case. The remaining five defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Chinle Man Sentenced to Prison for Reckless Killing on Navajo NationRead the Press Release
PHOENIX – Today, Sanjay Nelson, 25, of Chinle, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 18 months in prison followed by three years of supervised release for recklessly killing a man on the Navajo Nation Indian Reservation. Nelson had previously pleaded guilty to involuntary manslaughter.
The incident occurred on May 1, 2017, when Nelson’s sawed-off shotgun accidentally discharged as the victim was handing the firearm back to Nelson. The victim died as a result of injuries sustained from the gunshot wound. Both Nelson and the victim were enrolled member of the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8312-PHX-JJT
RELEASE NUMBER: 2018-086_Nelson
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Man Sentenced to 78 Months in Prison for Transporting Individuals to Engage in ProstitutionRead the Press Release
PHOENIX – Last week, Jonathan Frank Davis, 38, of Los Angeles, Calif., was sentenced by U.S. District Judge David G. Campbell to 78 months’ imprisonment, to be followed by a five year term of supervised release. Davis had previously pleaded guilty to transportation of individuals to engage in prostitution.
In Nov. 2014, Davis transported the victims from California to Arizona to have them engage in acts of prostitution. Davis was previously convicted of attempted pimping of a minor in Los Angeles County Superior Court and is currently serving a six year prison sentence for that crime. Davis’s federal sentence will run consecutively to his state sentence.
The investigation in this case was conducted by the Scottsdale Police Department with assistance from the Federal Bureau of Investigation Human Trafficking Task Force. The prosecution was handled by former Assistant U.S. Attorney Amy Brown and Assistant U.S. Attorneys Robert Brooks and Margaret Perlmeter, District of Arizona, Phoenix.
CASE NUMBER: 17-CR-841-PHX-DGC
RELEASE NUMBER: 2018-84_Davis
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Brazilian Citizen Admits Transportation of Illegal AliensRead the Press Release
ALBANY, NEW YORK – Rosalvo Caetano, age 46, and a citizen of Brazil, pled guilty today to transporting two illegal aliens within the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Caetano admitted that on May 12, 2018, he drove from Worcester, Massachusetts, to Fort Covington, New York, where he picked up two illegal aliens who had secretly crossed the border from Canada. Border Patrol Agents arrested Caetano and his passengers in Malone, New York. Caetano, himself an illegal alien, was living in Worcester. Following his term of imprisonment, he will be processed by the Department of Homeland Security, for removal proceedings.
Caetano faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Gary L. Sharpe on October 16, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The passengers arrested with Caetano were prosecuted for the misdemeanor offense of entry without inspection. Gabriel Felipe Dias Prado, age 19, and a citizen of Brazil, was convicted of entry without inspection and sentenced to 20 days in jail. Ilcione Bazoni, also known as Carlos Cousa, age 62, and a citizen of Brazil, was convicted of entry without inspection and sentenced to 45 days in jail.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Branchland Man Second to Plead Guilty in Theft of Firearms from Gun DealerRead the Press Release
HUNTINGTON, W.Va. – A Branchland man who helped break in a local pawn shop and steal firearms pled guilty today in federal court in Huntington, announced United States Attorney Mike Stuart. Jonathan Chafin, 18, entered a guilty plea to theft of firearms from a federally licensed firearms dealer before United States District Judge Robert C. Chambers. Stuart applauded the investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the West Hamlin Police Department.
“Theft of firearms is a very serious crime,” said United States Attorney Mike Stuart. “Stolen firearms most often end up in the wrong hands and involved in violent crimes – crimes that could kill law enforcement and other innocent people. We cannot and will not tolerate such reckless disregard for the safety of our citizens. Chafin and his codefendant should pay a serious price for their crimes. ”
On December 7, 2017, Chafin and Robert Lee Reid broke into Sportsmen’s Gun and Pawn located at 6440 US Route 60 in Barboursville to steal firearms. Reid entered Sportsmen’s through a hole he and Chafin broke in the wall and stole a total of 10 firearms. While inside, Reid passed the firearms through the hole in the wall to Chafin who waited outside. Chafin and Reid were subsequently picked up in a vehicle and the vehicle was stopped in West Hamlin by a West Hamlin Police Officer. During the traffic stop, the officer located the stolen firearms in the rear of the vehicle where Chafin and Reid were seated. As part of his plea, Chafin also admitted that he assisted Reid in the May 15, 2017, theft of a total of 164 firearms, also from Sportsmen’s.
Chafin faces up to 10 years in federal prison when he is sentenced on September 18, 2017.
Reid pleaded guilty on June 11, 2017, to multiple federal firearms charges for his role in the thefts and is scheduled to be sentenced on September 10, 2017.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. 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.
Follow us on Twitter: SDWVNews and USAttyStuart
###Boston Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to failure to register as a sex offender.
Lance Pona, 27, pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 19, 2018. Pona has been in custody since he was arrested and charged in April 2018.
Pona is required to register as a sex offender in Massachusetts based on a Colorado state court conviction for unlawful sexual contact in 2009. Following his imprisonment for that conviction, Pona left Colorado for Massachusetts. Despite living in the Boston area for approximately five years, Pona failed to report his presence to the authorities.
Pona faces a sentence of no greater than 10 years in prison, a minimum of five years and up to lifetime 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 John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Beverly Hills Doctor Sentenced to 10 Years in Custody for Massive Workers’ Comp SchemeRead the Press Release
Assistant U.S. Attorneys Valerie Chu (619) 546-6750, Caroline Han (619) 546-6968 or Fred Sheppard (619) 546-8237
NEWS RELEASE SUMMARY – June 18, 2018
SAN DIEGO – Beverly Hills Radiologist Ronald Grusd and two of his corporations, California Imaging Network Medical Group and Willows Consulting Company, were sentenced in federal court today after a jury trial in December resulted in convictions on 39 felony fraud counts.
U.S. District Judge Cynthia A. Bashant imposed a sentenced of 10 years in custody and a fine of $250,000, and remanded Dr. Grusd into custody. His companies, California Imaging Network and Willows Consulting Company, were each required to pay a $500,000 fine, and an additional $15,600 in special assessments.
According to evidence presented at trial, Dr. Grusd and his companies paid kickbacks for patient referrals from multiple clinics in San Diego and Imperial counties in order to fraudulently bill insurance companies over $22 million for medical services.
Dr. Grusd negotiated with various individuals, including a primary treating physician, the payment of kickbacks for the referral of workers’ compensation patients for various medical services, including MRIs, ultrasounds, Shockwave treatments, toxicology testing and prescription pain medications. After the patients were referred for the treatment or service, one of Dr. Grusd’s companies, California Imaging Network Medical Group, would fraudulently bill insurance companies for the procedures, concealing from both the patients and the insurers that substantial kickbacks had been paid in violation of California law. Another of Dr. Grusd’s companies, Willows Consulting Company, funneled the kickback payments to those directing the referral of the patients from the various clinics. Records presented at trial showed that Dr. Grusd paid over $100,000 in bribes to secure the billings for hundreds of patients, with bribes paid on a per-patient or per-body-part formula.
Dr. Grusd and the corporations were originally indicted by a federal grand jury in November 2015, when the U.S. Attorney’s Office and the San Diego District Attorney’s Office, working in conjunction with the Federal Bureau of Investigation and the California Department of Insurance, announced multiple arrests arising from a long-term, proactive health care fraud investigation targeting corruption and fraud in the California Workers’ Compensation system.
Grusd’s practice, California Imaging Network Medical Group, operated clinics throughout California in San Diego, Los Angeles, Beverly Hills, Fresno, Rialto, Santa Ana, Studio City, Bakersfield, Calexico, East Los Angeles, Lancaster, Victorville and Visalia.
In imposing sentence, District Judge Bashant expressed concern that by paying incentives, Dr. Grusd applied pressure on the referring physician, and “made it highly questionable if all services were necessary,” a harm that the laws were designed to prevent.
Judge Bashant found that Dr. Grusd “clearly knew what he was doing.” Dr. Grusd, who had testified as to his extensive education, training, and expertise as a highly-decorated radiologist, claimed on the witness stand at trial that he was confused and did not know that what he was doing was illegal. Judge Bashant rejected this view, stating that Dr. Grusd was someone who decided to “find a way to defraud…then act dumb on the witness stand” when he got caught. She imposed a sentencing penalty for Obstruction of Justice, finding that Grusd unequivocally committed perjury and lied at trial. The judge said she was concerned about the need for both general and specific deterrence: general, because health care fraud is an area where criminals are rarely caught, requiring a significant consequence in order to deter other would-be criminals. In this case, specific deterrence was also applicable, because, in her view, there was a risk that Dr. Grusd could engage in further unlawful conduct in the future. “Dr. Grusd,” she noted, was someone who would “act smart enough to pull the wool over everyone’s eyes.”
“A patient entrusts his life to his physician,” said U.S. Attorney Adam Braverman. “A doctor’s medical decisions should be based on the best interest of the patient, not the highest bidder. The court recognized that Dr. Grusd perverted that sacred relationship by buying and selling patients – oftentimes on a per-body-part basis – to fuel his personal lifestyle.”
U.S. Attorney Braverman commended the efforts of the Federal Bureau of Investigation and the California Department of Insurance to investigate these offenses, and thanked San Diego District Attorney Summer Stephan and her office for collaborating with the United States Attorney’s Office on this investigation.
San Diego FBI Special Agent-In-Charge John A. Brown applauded today's sentence as indicative of how the insidious malignancy embodied by the payment of illegal bribes to and from medical providers seriously degrades the patient-physician relationship and places patients at risk. “Operation Backlash exemplifies the positive impact the Federal Bureau of Investigation, working side by side with our investigative partners, the California Department of Insurance, and the San Diego District Attorney's Office, can have against those medical service providers who so easily replace honest patient care with greed. The FBI will continue to leverage these partnerships to expose these schemes and hold physicians and allied medical professionals accountable.”
Anyone with information about healthcare fraud may call the FBI at 1-800-CALL-FBI, or 1-800-225-5324 or the California Department of Insurance’s toll-free fraud hotline, 800-927-4357.
DEFENDANTS Case Number: 15cr2821-BAS
Ronald Grusd Los Angeles, CA
California Imaging Network Medical Group Incorporated in 2007
Willows Consulting Company Incorporated in 2011
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Mail Fraud, Mail Fraud, Wire Fraud, and Health Care Fraud, in violation 18 U.S.C. 1349
Maximum Penalty: 20 years in custody; $250,000 fine, or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
Honest Services Mail and Wire Fraud, in violation of 18 U.S.C. Secs. 1341, 1343 and 1346 (18 Counts)
Maximum Penalty (each count): 20 years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
Health Care Fraud, in violation of 18 U.S.C. 1347, (14 Counts)
Maximum Penalty (each count): 20 years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
Travel Act, in violation of U.S.C. 1952 (6 Counts)
Maximum Penalty: Five years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County District Attorney’s Office
California Department of Insurance
Berkeley County man sentenced to more than 12 years for selling heroinRead the Press Release
MARTINSBURG, WEST VIRGINIA - DeMarco Davis, Jr., also known as “Tipp,” of Inwood, West Virginia, was sentenced today to 151 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Davis, age 36, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin” in March 2018. Davis admitted to selling heroin in January 2017 in Berkeley County.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.Baeppler, Pendergrass honored with Director's AwardsRead the Press Release
WASHINGTON – Assistant United States Attorney Michelle Baeppler and Victim/Witness Specialist Darla Pendergrass were one of 162 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys Director James Crowell, IV at the 34th Director’s Awards Ceremony Friday in Washington D.C.
The Northern District of Ohio was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In addressing the award recipients and guests, Deputy Attorney General Rod Rosenstein said, “Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens — the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”
“Michelle and Darla represent the very best of our office and the Justice Department,” said U.S. Attorney Justin E. Herdman. “They work daily to seek justice for crime victims, whether that means using social media postings to prosecute someone urging violence against the members of our military or holding the hand of the victim of a life-altering act of violence.
Baeppler, along with former Assistant U.S Attorney Christos Georgalis Trial Attorney Jennifer Levy from the Justice Department’s Counter Terrorism Section, received an award for Superior Performance in Criminal Matters.
The trio was honored for their groundbreaking work in United States v. McNeil. McNeil, of Akron, posted the names and addresses of more than 100 members of the military urging supporters of the Islamic State to behead, stab and otherwise attack the service members.
McNeil is serving 20 years in prison after pleading guilty to five counts of solicitation to commit a crime of violence and five counts of making threatening interstate communications.
Pendergrass will receive an award for Superior Performance in a Litigation Support Role for her work on a number of cases last year involving sensitive victim-witness issues.
Among the cases Pendergrass was assigned to was the prosecuting the shooting of young woman in Cuyahoga Valley National Park. The victim survived but sustained serious injuries. With Pendergrass’ support, she was able to confront her attacker, who is serving a life sentence in federal prison after pleading guilty to attempted murder, discharging a firearm during a crime of violence and being a felon in possession of a firearm.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Alleged Accomplice of Man Killed During June 16, 2018 APD Officer Involved Shooting Arrested on Federal Armed Bank Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jennifer Rael, 39, of Albuquerque, N.M., made her initial appearance before U.S. Magistrate Judge Kirtan Khalsa in federal court this morning on a criminal complaint charging her with aiding and abetting armed bank robbery, and using a firearm in furtherance of a crime of violence. Rael remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for tomorrow morning.
The criminal complaint charges Rael with aiding and abetting the armed robbery of the Western Commerce Bank located at 1910 Wyoming Blvd. NW in Albuquerque on June 11, 2018. According to the complaint, a female and a male were involved in the robbery and both were observed getting into a white U-Haul van. Witnesses who viewed photographs from the bank surveillance video of the robbery identified Rael and Richard Rivera as the individuals involved in the robbery.
According to the complaint, FBI investigation revealed that Rael allegedly rented a van, which appears similar to the van on the bank surveillance video, on June 8, 2018, for 24-hours but failed to return it. When the van was not returned, U-Haul reported the van stolen.
The complaint alleges that on June 16, 2018, the FBI received information that a Verizon store had been robbed. The Albuquerque Police Department located Rael and Rivera in the van and pursued them to a grocery store where Rivera was shot and killed and Rael was arrested.
If convicted on the armed bank robbery charge, Rael faces a statutory maximum penalty of 25 years of imprisonment. If convicted on the firearms charge, Rael faces a mandatory minimum of five years of imprisonment that must be served consecutive to any sentence imposed on the armed bank robbery charge. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Jack E. Burkhead is prosecuting the case.
Rael Complaint
Saturday 16 June 2018
Project Huntington: Operation Saigon Sunset Nets Additional Federal ArrestRead the Press Release
ARREST MADE IN DETROIT OF CO-CONSPIRATOR IN LARGE MULTI-STATE HEROIN AND FENTANYL DISTRIBUTION NETWORK
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement on Friday’s arrest of Terrell Ledez Redd in Detroit:
“On Friday, June 15, 2018, Terrell Ledez Redd, a major target in the Peterson Drug Trafficking Organization (DTO), was arrested in Detroit. Redd was one of 15 defendants charged in a federal indictment as co-conspirators in the Peterson DTO, a large, multi-state heroin and fentanyl distribution network. Redd will be brought to Huntington where this U. S. Attorney’s Office will move to detain him pending his trial. I am proud that my prosecutors have successfully fought for the detention of all the other defendants charged in this indictment and the revolving door is no more.
Project Huntington and Operation Saigon Sunset was a seminal event in the history of Huntington. On April 17, 2018, a strong statement was made by a large-scale, collaborative operation conducted by federal, state and local law enforcement agencies that we will not tolerate drug thugs and criminal elements wreaking havoc in Huntington. Our intention was to take back the city’s streets in the interest of public safety and that’s exactly what we are doing.
Our work continues and we have much work left to do. However, any drug thugs thinking they have escaped the net we’ve cast should be looking over their shoulder because this United States Attorney, in partnership with federal, state and local law enforcement, is willing to knock down their doors, take them into custody and prosecute them to the fullest extent of the law.”
For background information on Project Huntington and Operation Saigon Sunset, please see the press release below dated April 17, 2018.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
TUESDAY, APRIL 17, 2018
Contact: Deanna Eder – (304) 345-2200
www.justice.gov/usao/wvs
MAJOR TAKEDOWN DISMANTLES MULTI-STATE HEROIN AND FENTANYL NETWORK
Project Huntington: Operation Saigon Sunset Takes At Least 450 Grams of Fentanyl – Enough to Kill More than 250,000 People -- Off Streets
Federal, State and Local Enforcement Effort Nets Related Narcotics, Violent Crime and Firearms Targets
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced today a major takedown of drug traffickers and related drug networks recently indicted by a federal grand jury in Huntington, as well as other narcotics, violent crime and firearm related targets. Joining United States Attorney Stuart in the announcement were Drug Enforcement Administration Special Agent in Charge (SAC) Chris Evans, Federal Bureau of Investigation Assistant Special Agent in Charge (ASAC) Nick Boshears, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge (SAC) Stuart Lowrey, Homeland Security Investigations Assistant Special Agent in Charge (ASAC) Dave Abbate, Huntington Mayor Steve Williams, Huntington Interim Police Chief Hank Dial, West Virginia State Police Captain Mike LaFauci, West Virginia National Guard Adjutant General James Hoyer, Cabell County Prosecuting Attorney Sean “Corky” Hammers, U.S. Marshal Michael Baylous, Cabell County Sheriff Chuck Zerkle, Wayne County Sheriff Rick Thompson, Marshall University Police Chief Jim Terry and AHIDTA State Director Kenny Burner.
In response to a growing opiate epidemic and violent crime in southern West Virginia, United States Attorney Stuart announced the formation of Project Huntington on March 15th alongside federal, state and local law enforcement partners. Today, in a takedown of federal and state targets, nearly 100 defendants have been targeted for arrest including the execution of Operation Saigon Sunset and related search warrants in Huntington, WV. It is believed that today’s actions will result in the dismantling of the Peterson Drug Trafficking Organization (DTO), a major multi-state heroin and fentanyl distribution network. In addition to the dismantling of the Peterson DTO, federal, state and local law enforcement are executing arrests for related violent elements including narcotics and firearms targets.
Today’s actions break down as follows:
- At least 15 individuals involved in the Peterson DTO have been charged in a federal indictment in the Southern District of West Virginia with conspiracy to distribute heroin and fentanyl;
- 15 individuals involved in the Peterson DTO were indicted yesterday in Cabell County Circuit Court on state charges;
- Additional members of the Peterson DTO will be arrested and charged in Detroit;
- 13 individuals involved in narcotics and/or firearms that have been charged in federal indictments in the Southern District of West Virginia; and
- At least 48 individuals are targeted for arrest on various narcotics, violent crime, and firearms related charges at the federal or state level as determined by the circumstances of each matter.
As an indication of the scale of the operation, over 200 federal, state and local law enforcement officers took part in today’s take-down effort. The West Virginia National Guard also provided a number of personnel in a support function to the operation.
Today’s actions would not have been possible without the seamless collaboration of federal, state, and local law enforcement agencies. The investigation was led by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West, with assistance from the Michigan State Police and the Ohio Highway Patrol. The U.S. Attorney’s Office for the Southern District of West Virginia and the Eastern District of Michigan, as well as the Cabell County Prosecuting Attorney’s Office, worked together hand-in-hand to remove these dangerous drug traffickers from the streets of Huntington and Detroit.
In conjunction with the arrest and search warrants executed in Huntington today, it is anticipated federal authorities in Detroit will soon be executing additional arrest warrants and search warrants. Additional charges will be brought against individuals in the Eastern District of Michigan.
“Our great country has never seen drug deaths like we’re seeing today,” Attorney General Jeff Sessions said. “Under President Trump’s strong leadership, the Department of Justice has taken historic new actions to put drug traffickers in jail and keep dangerous drugs out of the wrong hands. I want to thank all of our partners at DEA, FBI, ATF, the Marshals Service, Homeland Security Investigations, as well as our fabulous partners at the state and local levels for their hard work. Today’s charges against at least 90 defendants will help make the people of West Virginia and Michigan safer from the threat of dangerous drugs—and they bring us one step closer to ending the opioid epidemic.”
“Today’s actions have removed from our streets enough fentanyl to kill more than 250,000 people and massive amounts of other drugs that would have wreaked havoc and misery on our good citizens. Today is a turning point for the City of Huntington and in the war against the opiate nightmare,” said US Attorney Stuart. “Best yet, today’s actions have resulted in the destruction of a supply network, the supplier of suppliers of illicit drugs. The peddlers of poisons like heroin and fentanyl are in the crosshairs of this Administration and law enforcement. We still have work to do but the days of havoc, chaos and misery caused by the peddlers of illicit poisons are soon to be over.”
“Today, on tax day, the citizens of Huntington and the surrounding area got their money’s worth, said Huntington Mayor Steve Williams. “Thanks to the coordination of our federal, state and local law enforcement agencies our city is safer. I thank United States Attorney Mike Stuart and Major General Jim Hoyer of the West Virginia National Guard for their steadfast support. The men and women of every law enforcement agency are owed a monumental debt of gratitude for placing their lives in harm’s way to make our families safe.”
The investigation revealed that the Peterson DTO had been operating in Huntington for nearly 15 years, trafficking large amounts of heroin, fentanyl, and cocaine from Detroit to be sold in Huntington in street-level gram quantities. In August 2017, investigators with the Violent Crime and Drug Task Force West (“VCDTFW”) executed a search warrant at Manget Peterson’s residence and an associated hotel room, where Manget Peterson’s workers were distributing heroin. These searches resulted in the seizure of two handguns, over seventy half gram baggies of heroin ready for distribution, and other evidence of drug trafficking. Manget Peterson’s brother, Willie Peterson, was identified as the leader and drug supplier of the organization. Multiple sources advised that the Peterson DTO distributed kilogram quantities of heroin in Huntington, West Virginia, on nearly a weekly basis, using a network of re-distributors.
Law enforcement learned that the DEA in Detroit had opened an investigation into Willie Peterson, after a search of his residence in July 2017 resulted in the seizure of over 360 grams of fentanyl. The DEA’s investigations in West Virginia and in Detroit have resulted in investigators seizing additional drug loads and to the identification of two of Willie Peterson’s drug suppliers in Detroit, Michigan. As of April 3, 2018, law enforcement has seized approximately 760 grams of suspected heroin, 450 grams of suspected fentanyl, and 167 grams of suspected cocaine. The fentanyl seized prior to today’s actions could have resulted in the death of more than 250,000 people.
This morning, Manget Peterson was apprehended in Huntington and his brother, Willie Peterson, was apprehended in Detroit. Malcolm Simmons was also arrested in Detroit this morning.
According to Chris Evans, Special Agent in Charge of DEA’s Louisville Division Office, “Today’s round-up sends a clear message to the people of Huntington and all of West Virginia: drug traffickers who come here to destroy our communities will be aggressively pursued by DEA, in conjunction with West Virginia’s federal, state and local law enforcement components.”
“ATF is committed to working with our federal, state and local law enforcement partners and the United States Attorney’s Office to reduce violent crime in Huntington,” said Stuart Lowrey, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in West Virginia and Kentucky. “Together we will identify and investigate armed violent offenders and their illicit sources of guns. Traffickers and triggerpullers – beware.”
“We are building a collaborative approach here in Huntington,” said Interim Huntington Police Chief Hank Dial. “Day in and day out we go after criminals who are bringing these drugs into our community and work to get people into much needed treatment. We greatly appreciate our state and federal partnering agencies bringing their powerful resources to our community. There is one thing the good people of Huntington and the bad people in Huntington have in common, they both deserve today.”
In the Southern District of West Virginia, 15 individuals have been charged in a federal indictment with conspiracy to distribute heroin and fentanyl. The investigation is ongoing and could result in additional federal and state charges in the future.
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Friday 15 June 2018
World Elder Abuse Awareness DayRead the Press Release
RALEIGH – Today, as the Department of Justice recognizes World Elder Abuse Awareness Day, Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, reaffirms the Eastern District of North Carolina’s commitment to combating elder abuse and financial exploitation. Mr. Higdon commented: “Our seniors deserve our best efforts to prosecute those who attempt to capitalize on their vulnerabilities. As the Department of Justice continues to collaborate with other Departments to fight elder abuse on the national scale, the Eastern District of North Carolina continues to pursue justice for elderly victims in its district.”
Examples of our commitment to prosecuting crimes targeting our elderly citizens include the following:
On November 22, 2016, a grand jury in the Eastern District of North Carolina returned a 21-count indictment charging Treyton Lee Thomas with wire fraud, bank fraud and money laundering. The indictment alleges that Thomas defrauded individuals and financial institutions of more than six million dollars in an investment fraud scheme. Thomas claimed he would invest the funds conservatively in US Treasury Bills. Instead, Thomas made risky investments in commodities, futures, options, and foreign currency exchange. For many years, Thomas concealed the losses with fictitious financial documents. His elderly father suffered the greatest losses and, sadly, died during the investigation, at age 84. THOMAS’s father was forced into bankruptcy as a result of his son’s fraud. He lost his successful automobile warranty business and his home. The case is scheduled for trial, on November 5, 2018, before the Honorable James C. Dever, III.
On April 24, 2018, a grand jury in the Eastern District of North Carolina returned a 13-count indictment charging ELIZABETH ANN KRINER WILLIAMSON, with ten counts of Bank Fraud, two counts of Aggravated Identity Theft, and one count of Mail Theft. The indictment alleges that beginning in or around April 2015, and continuing until in or around June 2017, WILLIAMSON used her elderly in-law’s bank information to make unauthorized cash withdrawals and purchases in excess of $96,000. If convicted of all counts, WILLIAMSON could face a maximum penalty of thirty seven years imprisonment, a minimum penalty of two years imprisonment, a $1,500,000 fine, and a term of supervised release following any term of imprisonment. Her arraignment is currently scheduled for September 2018.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
United States Attorney Announces the Appointment of a New Federal ProsecutorRead the Press Release
DALLAS, Texas — United States Attorney Erin Nealy Cox announced today the appointment of Rebekah Ricketts as a new Assistant United States Attorney. Ms. Ricketts was sworn in today before Chief Judge Barbara M. G. Lynn. Ms. Ricketts is assigned to the Violent and Major Crimes Section of the office’s Criminal Division.
Ms. Ricketts joins the U.S. Attorney’s Office from Gibson, Dunn & Crutcher LLP, where she was a senior litigation associate. Previously, Ms. Ricketts served clerkships for U.S. District Judge Richard Sullivan in the Southern District of New York, Judge Jose Cabranes on the U.S. Court of Appeals for the Second Circuit, and Justice Clarence Thomas on the U.S. Supreme Court. Ms. Ricketts received her undergraduate degree from the University of Texas and her law degree from Yale University.
“It’s my privilege to lead an office filled with incredibly talented and dedicated people who work tirelessly to carry out our mission of justice and fulfill our promise to the people of our community,” said U.S. Attorney Nealy Cox. “We are proud to welcome Rebekah Ricketts to our office. I know she will make an immediate impact in our District and serve the citizens of the United States with honor and distinction.”
# # #
U.S. Attorney’s Office for Eastern District of Tennessee Supports World Elder Abuse Awareness DayRead the Press Release
KNOXVILLE, Tenn. - Each year, June 15 is recognized as World Elder Abuse Awareness Day. On this day, our nation joins the world in voicing our opposition to elder abuse, neglect, and financial exploitation.
As part of the Elder Abuse Prevention and Prosecution Act, which the president signed into law last October, U.S. Attorney General Jeff Sessions appointed a career prosecutor as the Department’s Elder Justice Coordinator to support and coordinate the Department’s many elder justice efforts. Additionally, Attorney General Sessions directed the Department to appoint an Elder Justice Coordinator in every U.S. Attorney’s Office in the country to work on the elder justice issues most pressing in those communities while also collaborating with state and local partners in combating all forms of elder abuse and fraud. Assistant U.S. Attorney Jennifer Kolman was designated as the Elder Justice Coordinator for the Eastern District of Tennessee.
According to statistics, each year, an estimated $3 billion are stolen or defrauded from millions of American seniors. Criminals prey on some of the most vulnerable Americans to steal their hard-earned savings and their peace of mind through “grandparent scams,” fake prizes or even threats. In a matter of minutes, criminals can take away the secure retirement for which many seniors have spent most of their lives working, saving, and sacrificing.
“Protecting our seniors is a top priority of the U.S. Attorney’s Office for the Eastern District of Tennessee. We will work with our local, state and federal law enforcement partners to prosecute vigorously anyone who chooses to victimize the elderly citizens of our district,” said U.S. Attorney J. Douglas Overbey.
Currently, there are many ways in which our elderly communities in our district are targeted in fraud schemes, committed by family, friends, neighbors and even strangers the elderly victims have never met. One of the most prevalent schemes involves a bogus Lottery Sweepstakes in which elderly victims, who are vulnerable and often isolated from friends and family, receive a phone call informing them that they have won a large sum of money in a lottery specific to senior citizens. They are told that being a senior citizen automatically enrolled them in the sweepstakes. The victims are bombarded with calls telling them to send money for taxes, processing costs, and other bogus charges, often resulting in the depletion of the entire savings of the victims over the course of time. The perpetrators of this fraud are difficult for law enforcement to identify as they often operate outside the country and use phones that cannot be tracked.
Another prevalent fraud scheme targets elderly individuals through the internet. Victims receive a pop up message that their computer has a virus that can be removed for a fee. There is, of course, no virus; however, the victims are often scared into believing there is an urgency to get the virus removed immediately. Depending on the vulnerability of the victim, perpetrators of the fraud will up charge for a continued service for future problems and bombard the victim with instructions to get the money to them in the mail immediately and by overnight services so the victim is less likely to stop payment.
The U.S. Attorney’s Office for the Eastern District of Tennessee has had several successful prosecutions involving elderly victims. Additionally, there are several open cases involving pending litigation, as well as ongoing investigations that may lead to future charges.
In May 2018, Roger Dale Williams pleaded guilty to conducting a Ponzi scheme to defraud primarily elderly individuals, as well as obstructing and impeding the Internal Revenue Service. His sentencing is set for September 13, 2018.
In his plea agreement, on file with U.S. District Court, Williams admitted that he began offering bogus investment opportunities in 2001 as part of membership in an “investment club, “ which included opportunities for stock purchases, business start-ups, and bonds in solicitations that he mailed to victims. In order to perpetuate the scheme, he would also provide victims with false IRS forms pertaining to the purported investments. More recently, Williams extended his fraud scheme to members of the King Branch Road Church of Christ in Pigeon Forge, Tennessee, where he had become a pastor. He solicited funds for the purchase of purported church bonds and claimed the funds would be used for the benefit of the church, particularly to pay off the church’s debt. However, Williams diverted the funds raised for purported church bonds to his own personal use and benefit, as well as used the funds to make lulling payments to investment club members. He convinced several victims to transfer their Individual Retirement Accounts into bogus investments under his control, then he siphoned off the funds for his own use and benefit. Due to Williams’ fraud, several elderly victims lost their entire retirement savings. Assistant U.S. Attorney Matthew Morris represented the United States in these court proceedings.
Also in May 2018, Cynthia Brooks Holt, was sentenced to serve 24 months in prison and ordered to pay $294,470.69 in restitution for aggravated identity theft involving an elderly neighbor.
According to her plea agreement on file with U.S. District Court, Holt and the 92-year-old victim were neighbors in Oak Ridge, Tennessee. After an arson at the victim’s home in November 2011, Holt took on the role of contractor in the rebuilding of the victim’s home. During this time, she had the victim write checks to her for construction costs incurred. However, after the completion of the construction, Holt continue to have the victim write checks to her. Between May 2012 and February 2017, she stole books of checks from two of the victim’s accounts, wrote checks to herself, and had the victim sign. She eventually began forging his signature on these checks resulting in hundreds of unauthorized checks written to herself from the victims account. The total amount of the fraud was $294,470.69. Assistant U.S. Attorney Jennifer Kolman represented the United States in these court proceedings.
“Fraud targeting seniors is so common that no victim should feel ashamed to come forward and report it. It can happen to anyone,” said Attorney General Sessions in his recent remarks to the Elder Justice Coordinating Council.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
U.S. Attorney's Office Recommits to Elder Justice on World Elder Abuse Awareness DayRead the Press Release
LAS VEGAS, Nev. – Nevada’s seniors are some of the most respected and cherished members of our communities, but also some of the most vulnerable members. Today on World Elder Abuse Awareness Day, the U.S. Attorney’s Office reaffirms its commitment to raising awareness and combatting elder abuse and exploitation.
“The U.S. Attorney’s Office has a shared commitment with our partners to protect Nevada’s seniors from abuse, neglect, fraud, and exploitation,” said U.S. Attorney Dayle Elieson for the District of Nevada. “We are dedicated to prosecuting and preventing crimes targeting the elderly, educating seniors and their loved ones, and raising awareness of elder abuse and exploitation.”
Criminals prey on seniors through scams or threats to steal their savings. It is widely estimated that one in ten seniors in the United States is abused, but often that abuse takes the form of financial exploitation or fraud. Each year, an estimated $3 billion is stolen or defrauded from millions of American seniors. Through “grandparent scams,” fake prizes, romance scams, fraudulent IRS refunds, and even outright extortion, criminals try to exploit some of the most vulnerable Americans and steal their life’s savings.
The mission of the Department of Justice’s Elder Justice Initiative is to strengthen awareness about elder abuse and financial exploitation through education, build law enforcement capacity to respond to elder justice issues, and facilitate prosecution efforts to make our community safer for all. In January, AG Sessions ordered all 94 U.S. Attorney’s offices to each designate an elder justice coordinator, who will customize a strategy to protect seniors in their district. This ensures a greater cooperation between the Department of Justice and our law enforcement partners. In 2017, the U.S. Attorney’s Office prosecuted elder crimes to include:
- Daniel Martin Boyar, of Orlando, Florida, pleaded guilty to committing a $3.3 million telemarketing scam to defraud more than 1,000 victims, many of them elderly. He is scheduled to be sentenced on September 24, 2018.
- Angela Fischer, a former Business Manager for a Reno retirement center in Fernley, Nevada, was sentenced to three years’ imprisonment for stealing more than $190,000 from an elderly resident’s bank account.
- Willie James Montgomery, of Las Vegas, was sentenced to 88 months’ imprisonment for targeting the elderly as part of a $1.2 million telemarketing scam.
- Noah Patrick Fields, of Las Vegas, was sentenced to 11 years’ imprisonment for pointing a firearm at an elderly owner of a coin and jewelry store during a robbery.
In addition to the prosecution of criminals, the U.S. Attorney’s Office and its partners participate in public forums educating senior community members and concerned citizens about elder financial fraud. In 2017, the U.S. Attorney’s Office, FBI, and the Las Vegas Metropolitan Police Department conducted four public forums. The forums are intended to raise awareness to the various types of fraud schemes targeting seniors and offers prevention tips on how to protect themselves.
Today, the Department of Justice and Department of Agriculture announced the forming of a working group to focus on ways to empower and to support rural and tribal communities to combat elder abuse and financial exploitation.
For more information about the Department’s Elder Justice Initiative, visit www.elderjustice.gov to learn more about the ways you can assist in preventing fraud, neglect, and abuse of elders. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
###
U.S. Attorney's Office Employees, Local Investigators, Honored Today at Justice Department CeremonyRead the Press Release
WASHINGTON – Members of the U.S. Attorney’s Office for the District of Connecticut and several local investigators were recognized by Deputy Attorney General Rod Rosenstein and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 34th Director’s Awards Ceremony today in Washington D.C.
A total of 162 individuals were honored at the ceremony held today in the Great Hall at the Robert F. Kennedy Department of Justice Building. The Connecticut honorees received a Director’s Award for Superior Performance by a Litigative Team for their outstanding work investigating and prosecuting the Red Side Guerilla Brims, a violent New Haven-based street gang.
In addressing the award recipients and guests, Deputy Attorney General Rod Rosenstein said, “Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens – the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”
In January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms and used drug addicts as straw purchasers of firearms. Members then brought the firearms back to New Haven and distributed them to gang members.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
Benton pleaded guilty to various offenses stemming from this investigation and admitted that he participated in four gang-related murders and one attempted murder. On October 4, 2017, he was sentenced to 40 years of imprisonment.
Director’s Award recipients include Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis, former Assistant U.S. Attorney Robert M. Spector, and Paralegal Specialist Kori Arsenault of the U.S. Attorney’s Office for the District of Connecticut; ATF special agents Daniel Prather, Michael Zeppieri, Scott Riordan, and Brian Ross; Karl R. Jacobson and Misty Fitch of the New Haven Police Department; Craig Burnett of the Connecticut Department of Correction; Assistant U.S. Attorney Joel Casey of the U.S. Attorney’s Office for the District of Maine, and the late Christopher Gardner of the Maine Drug Enforcement Agency.
“’Operation Red Side’ was an intensive investigation that dismantled a violent New Haven street gang whose members and associates were responsible for many murders, attempted murders, shootings, armed robberies and home invasions,” said U.S. Attorney John H. Durham. “This gang trafficked crack cocaine and heroin, ruined lives from New Haven to Bangor, Maine, and used their drug trade to illegally acquire firearms. This investigative and prosecution team solved seven homicides and put more than 20 dangerous individuals behind bars, providing justice for the victims’ families and making the New Haven community a safer place to live. I could not be more proud of their efforts.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and 57 staff members at offices in New Haven, Bridgeport and Hartford.
U.S. Attorney in Washington for World Elder Abuse DayRead the Press Release
Courtesy: Department of Justice Office of Public Affairs Pictured L-R are: Attorney General Jeff Sessions, , Deputy Secretary of Agriculture Stephen Censky, and Tony Roman of Martinsburg, WVMARTINSBURG, WEST VIRGINIA – United States Attorney Bill Powell is working to shed light on elder fraud in rural communities.
Powell, along with Assistant U.S. Attorney Lara Omps-Botteicher, attended an event to recognize World Elder Abuse Day at the Department of Justice Robert F. Kennedy Building’s Great Hall in Washington, D.C. this afternoon. Tony Roman of Martinsburg, a victim of elder fraud in the Northern District of West Virginia, delivered a statement on behalf of himself and other victims.
“With nearly 20 percent of West Virginia’s population 65 or older, our district is especially susceptible to elder fraud cases. We want to send a clear message that we will prosecute those who prey on some our state’s most vulnerable,” said Powell.
Elder fraud can happen to anyone anytime, as victim Tony Roman explained at the event, “I – we –were not victims of a phone scam or a lottery scam, as many times we hear about in the news. I became a victim by simply going to the doctor, as most Americans do every year.”
In Mr. Roman’s case, prosecuted by Omps-Botteicher, those convicted stole identifying information from a medical facility and used that information to create fake driver’s licenses to obtain credit cards and other accounts to defraud.
Wanda Keebler, a retired school teacher, was also defrauded by the same defendants that defrauded Roman. When this case came to light, her husband was dying. She admits her focus wasn’t on her bank accounts, it was on her husband and the medical care he was receiving from the same hospital from which her information was stolen. When she was notified that she was a victim, she was extremely upset. She said, “I was school teacher for 35 years, and for the first time, I felt like an idiot.”
The message sent at today’s event was that it is easy to fall victim to those preying on the elderly. All residents should monitor their financial accounts and credit consistently. Always report any suspicious activity.
The United States Department of Justice (DOJ) and Department of Agriculture (USDA) are forming a working group to focus on ways to empower and to support rural and tribal communities to combat elder abuse and financial exploitation.
U.S. Attorney Statement on Joint Dismissal of Springfield Veterans Affairs CaseRead the Press Release
PORTLAND, Ore. – Today, the U.S. Attorney’s Office and the U.S. Department of Veterans Affairs (VA) announced that a joint stipulation of dismissal has been reached with Springfield, Oregon veteran Michael Williamson.
Mr. Williamson is a U.S. Air Force Veteran with a 100% disability rating due to his diagnosis of amyotrophic lateral sclerosis (“ALS”). The VA has contracted for Mr. Williamson’s in-home care for 19 years. Unfortunately, late last year his contracted provider abruptly submitted a 90-day notice to discontinue his care, citing safety concerns. After Mr. Williamson filed suit, the VA in coordination with the U.S. Attorney’s Office worked collaboratively with Mr. Williamson and his attorneys from Disability Rights Oregon, to find additional options for in-home providers that could meet the high level of care needed in this case.
“We are pleased to announce that the VA and Mr. Williamson have reached a joint agreement to dismiss this case,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The parties have worked hard to reach consensus on this matter. He is an honored veteran and deserving of thoughtful and attentive care.”
“I’m pleased we were able to achieve a successful outcome that honored our veteran and his family’s wishes while also providing a safe environment for his care,” said David Whitmer, Interim Medical Center Director, Roseburg VA Healthcare System. “Because of the complex care needed by an ALS patient, this took some time to negotiate and ensure a home based solution that could meet all of the requirements.”