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30 July 2018
Clarksburg man sentenced for role in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Colton Justice Kallel, of Clarksburg, West Virginia, was sentenced today to 12 months incarceration for his role in a drug distribution operation, United States Attorney Bill Powell announced.
Kallel, age 22, pled guilty to one count of “Distribution of Fentanyl” and one count of “Aiding and Abetting the Distribution of Fentanyl in Proximity of a Protected Location” in March 2018. Kallel admitted to selling fentanyl on July 11, 2017 in Harrison County. He also admitted to selling fentanyl near Clarksburg City Park, on July 31, 2017 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The case was investigated by the Greater Harrison Drug and Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigation.
Senior U.S. District Judge Irene M. Keeley presided.Cape Girardeau Man Sentenced for Possessing Firearm following Stand-off with PoliceRead the Press Release
The United States Attorney's Office announced that JAMES W. MATHENA, age 51, of Cape Girardeau, Missouri, was sentenced today to 210 months in federal prison following his guilty plea to being a previously convicted felon in possession of a firearm. The sentence was imposed by United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, law enforcement officers were dispatched to a residence in Cape Girardeau on December 15, 2017 after Mathena made various threats against his elderly parents. When officers arrived, Mathena barricaded himself inside the residence and refused to come out. After a stand-off lasting nearly three hours, Mathena finally exited the residence and surrendered to authorities. Officers subsequently recovered a shotgun from Mathena’s bedroom in the basement. Mathena was prohibited from possessing firearms under federal law because he is a convicted felon. Mathena’s criminal history included a 1988 felony conviction from the United States District Court for the Western District of Texas for assaulting a federal officer with a dangerous weapon. Mathena also had felony convictions for robbery, assault, distribution of methamphetamine, driving while intoxicated, and unlawful possession of firearms.
This case was investigated by the Cape Girardeau Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Jack Koester handled the prosecution for the government.
Broward County Resident Sentenced to More than 17 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
On July 27, 2018, Christopher Brinson, 32, of Broward County, was sentenced to 210 months in prison by U.S. District Court Judge Kenneth A. Marra, after a trial jury convicted him of being a felon unlawfully in possession of a firearm.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
According to the court docket, including evidence introduced at trial, on March 20, 2017, a video broadcast via Facebook live showed Brinson in possession of a firearm. A firearms identification expert was able to determine it was a genuine Glock pistol. On April 20, 2017, Brinson was arrested. At the time of his arrest, Brinson had a cellular phone which contained photographs of him in possession of the Glock pistol on March 20, 2017. Brinson had previously been convicted of several felony offenses and was prohibited from possessing a firearm.
This case stems from Project Safe Neighborhoods (PSN), a program that brings 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.
Mr. Greenberg commended the investigatory efforts of the ATF, FBI and BSO in this matter. This case was prosecuted by Assistant United States Attorney Anita G. White.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bollinger County Man Sentenced on Drug and Gun ChargesRead the Press Release
The United States Attorney's Office announced that Clinton Jay Reynolds, age 27, of Marble Hill Missouri, was sentenced to 92 months of incarceration for Possession of 50 Grams or More of Methamphetamine with Intent to Distribute and Possession of Firearms by a Felon. Reynolds was also ordered to serve a total of 4 years of supervised release and pay a $200 special assessment. Reynolds appeared before United States District Judge Stephen N. Limbaugh, Jr. on July 30, 2018.
Reynolds had previously pleaded guilty to possessing methamphetamine with intent to distribute and possessing firearms after being convicted of several felony offenses. Reynolds was arrested after the Bollinger County Sheriff’s Department executed a search warrant at his residence near Marble Hill in rural Bollinger County and seized 62 grams of methamphetamine and eight firearms. Reynolds has prior felony convictions for Possession of a Controlled Substance, Burglary Second Degree, Receiving Stolen Property, Felony Theft and felony Resisting Arrest by Fleeing.
This case was investigated by the Bollinger County Sheriff’s Department, the Southeast Missouri Drug Task Force, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Timothy J. Willis handled the prosecution for the Government.
Berkeley County man sentenced to nearly six years for cocaine chargeRead the Press Release
MARTISNBURG, WEST VIRGINIA – Michael Jacque Severe, of Martinsburg, West Virginia, was sentenced today to 71 months incarceration for distributing cocaine, United States Attorney Bill Powell announced.
Severe, age 34, pled guilty to one count of “Conspiracy to Distribute Cocaine Base” in February 2018. Severe conspired with others to distribute crack cocaine in Berkeley County from April 2015 to February 2017.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Berkeley County man sentenced to 15 years for fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bradley Markley, of Hedgesville, West Virginia, was sentenced today to 180 months incarceration for distributing fentanyl, United States Attorney Bill Powell announced.
“Fentanyl kills. A lethal dose is only two milligrams—about the mass of two grains of salt. Unfortunately, the entrance of fentanyl into the opioid crisis has only exasperated the dangers to our community. The dangers extend to law enforcement who risk their own lives by mere exposure to fentanyl. Our prosecutors have made fentanyl cases a priority, and we will be adding additional resources to combat the increased workload. The dangers to our community are real and our efforts will be unrelenting,” said Powell.
Markley, age 32, pled guilty to one count of “Distribution of Fentanyl and Acetyl Fentanyl” in March 2018. Markley admitted to distributing the drugs in October 2016 in Berkeley County.
Assistant U.S. Attorneys Anna Z. Krasinski and Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for sex offender registry violationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gregory Keith Parr, of Martinsburg, West Virginia, was sentenced today to nine months incarceration for a sex offender registration violation, United States Attorney Bill Powell announced.
Parr, age 61, pled guilty to one count of “Failure to Register” in April 2018. Parr, who had previously been convicted of a sex offense in Michigan, admitted to traveling across state lines without updating his sex offender registration, as required by law, in December 2017 in Berkeley County.
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 Lara Omps-Botteicher prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joshua Neal Krieger, of Hedgesville, West Virginia, was sentenced today to 50 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Krieger, age 30, pled guilty to one count of “Unlawful Transfer of a Firearm” in March 2018. He admitted to selling a machine gun conversion part designed to convert a weapon into a machine gun for $2900 in May 2017 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 Paul T. Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Bennington Man Convicted of Armed RobberyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that John Chinnici, 33, of Bennington, Vermont, was convicted on July 27, 2018, in United States District Court in Burlington, Vermont, following a jury trial. U.S. District Judge Christina Reiss ordered Chinnici to remain in custody after the jury returned its verdict.
According to court records and proceedings, on January 11, 2016, at approximately 12:30 am, two masked men, one of whom carried a handgun, approached two employees of the Martin’s Mobil Mini-Mart in Bennington, Vermont as the employees walked to deposit the store’s night receipts at the drop box of a nearby bank. After demanding the employees hand over the bag containing the money, the robbers ordered the men to lie on the ground. The robbers then ran away. The employees returned to the store and called 911.
Through investigation, the Bennington Police Department determined that Austin Mayhew, 29, of Bennington, was one of the robbers. Mayhew identified Chinnici as the man who committed the robbery with him and as the person who carried the handgun. When interviewed by law enforcement, Chinnici claimed that he was not in Bennington on the night of the robbery; he claimed that he spent the night in East Dover at the home of friends.
Mayhew eventually pleaded guilty in Vermont state court to committing the robbery. He testified at Chinnici’s trial pursuant to a court-ordered grant of immunity. In addition to Mayhew’s testimony, the government presented evidence which rebutted Chinnici’s false alibi. The government also presented evidence from Chinnici’s cell phone, including evidence that his cell phone was in Bennington at the time of the robbery, not in East Dover, texts he exchanged with a former-girlfriend which detailed that he came into money during the night of the robbery, and photos of receipts showing that he sent the former girlfriend nearly $1,000 in the days following the robbery.
United States Attorney Christina E. Nolan commended the efforts of the ATF and the Bennington Police Department in the investigation and prosecution of Chinnici. The prosecution of Chinnici was handled by Assistant U.S. Attorneys Barbara A. Masterson and Joseph R. Perella. Chinnici was represented by Ernest (Bud) Allen.
Chinnici faces a sentence of up to 20 years incarceration, followed by a period of supervised release, restitution, a possible fine, and a mandatory special assessment. Chinnici’s sentence will be determined by the sentencing judge after consultation with the United States Sentencing Guidelines and the factors set forth in 18 U.S.C. § 3553(a).
Bapchule Man Sentenced to 97 Months in Prison for Receiving One Image of Child PornographyRead the Press Release
PHOENIX – Today, Angel Xavier Catha, 21, was sentenced by U.S. District Judge G. Murray Snow to 97 months in prison followed by 20 years of supervised release. Catha had previously pleaded guilty to receipt of child pornography and will be required to register as a sex offender.
Catha admitted to pursuing a sexual relationship with the 13-year-old victim while living on the Gila River Indian Community. Both the victim and Catha are enrolled members of the Gila River Indian Community. Over that period, Catha repeatedly requested that the victim provide him with child pornography. Catha ultimately received one image of child pornography, which was sent via Facebook. Judge Snow increased Catha’s sentence to account for his subsequent sexual abuse of the victim.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-501-PHX-GMS
RELEASE NUMBER: 2018-093_Catha
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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.
3M Company Agrees to Pay $9.1 Million to Resolve Allegations that It Supplied the United States with Defective Dual-Ended Combat Arms EarplugsRead the Press Release
COLUMBIA, South Carolina ---- United States Attorney for the District of South Carolina Sherri Lydon, in conjunction with the Civil Division of the United States Department of Justice (DOJ), announced today that the 3M Company (3M), headquartered in St. Paul, Minnesota, has agreed to pay $9.1 million to resolve allegations that it knowingly sold dual-ended combat arms earplugs to the United States military without disclosing defects that hampered the effectiveness of the hearing protection devices.
The settlement announced today resolves allegations that 3M violated the False Claims Act by selling or causing to be sold defective earplugs to the Defense Logistics Agency. Specifically, the United States alleged that 3M, and its predecessor, Aearo Technologies, Inc., knew that its Combat Arms Earplugs, Version 2, were too short for proper insertion into users’ ears and that the earplugs could loosen imperceptibly and therefore did not perform well for certain individuals. The United States further alleged that 3M did not disclose this design defect to the military.
“Today’s settlement demonstrates our continuing vigilance to protect the men and women serving in the United States military from defective or fraudulent products,” said Acting Assistant Attorney General Chad A. Readler of the Department’s Civil Division. “Government contractors who seek to profit at the expense of our military will face appropriate consequences.”
“Through rigorous enforcement of the False Claims Act, we protect taxpayer dollars from waste, fraud, and abuse,” said U. S. Attorney Sherri Lydon. “And in this case in particular, we are proud to defend the integrity of our military programs and ensure that our men and women in uniform are adequately protected as they serve our country.”
“Today’s settlement will ensure that those who do business with the government know that their actions will not go unnoticed,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Properly-made safety equipment, for use by our Soldiers, is vital to our military’s readiness. Our agents will respond robustly to protect the safety of our military.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies accountable for supplying substandard products, in particular products that could directly impact our service members’ health and welfare. DCIS protects the integrity of Defense Department programs by rooting out fraud, waste, and abuse that negatively affect the wellbeing of our troops,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office.
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. As part of today’s resolution, the whistleblower will receive $1,911,000.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice and the United States Attorney’s Office for the District of South Carolina, with support from the Department of Defense. The settlement was handled by Assistant United States Attorneys Stan Ragsdale and Brook Andrews and DOJ Trial Attorney Brandie Weddle. The case was investigated by Special Agent Jennifer Coleman of the U.S. Army Criminal Investigation Command and Special Agent Gil Rosen of the Defense Criminal Investigative Service.
The case is captioned United States ex rel. Moldex-Metric v. 3M Company, Case No. 3:16-cv-1533-MBS (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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27 July 2018
Wilmington Man Receives 210 Month Prison Sentence for Possessing Child PornographyRead the Press Release
WILMINGTON, Del. – A Wilmington, Delaware man was sentenced to 210 months in prison on Wednesday, July 25, 2018, for possessing child pornography he produced himself, announced U.S. Attorney David C. Weiss of the District of Delaware.
Miguel Pagan, 37, pleaded guilty to one count of possessing child pornography on April 25, 2018. U.S. District Judge Gregory M. Sleet of the District of Delaware sentenced Pagan to serve 210 months in prison followed by 10 years of supervised release. According to admissions made as part of his guilty plea, law enforcement found Pagan in possession of child pornography that he produced in his own bedroom using two prepubescent children.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware State Police investigated this case. Assistant U.S. Attorney Graham L. Robinson of the District of Delaware prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Williamson County Man Charged with Bank RobberyRead the Press Release
Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced that today, Arthur W. Bays, 82, of Marion, Illinois, was charged by the United States Attorney in a criminal complaint in United States District Court with one count of bank robbery.
Count 1 of the Complaint charges that on July 26, 2018, in Franklin County, Bays did by force and violence, and by intimidation, take money from the person of another which was in the possession and the care, custody, and control of State Bank of Whittington, located in Benton, Illinois, a financial institution which at the time was insured by the Federal Deposit Insurance Corporation, all in violation of federal law.
Bays had an initial appearance in United States District Court in Benton, Illinois, on July 27, 2018. The Magistrate Judge released Bays on bond pending further proceedings in this matter.
A Criminal Complaint is a charge filed against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
If convicted of Count 1, Bays faces up to 20 years of imprisonment and up to a $250,000 fine.
The investigation in this case was conducted by the Federal Bureau of Investigation,
Benton Police Department, West City Police Department, West Frankfort Police Department, Franklin County Sheriff’s Office, and the Marion Police Department.
Two Trials, Two Convictions for Louisville Heroin Trafficking and Gun OffensesRead the Press Release
LOUISVILLE, Ky. – In two separate federal trials this week, the United States won convictions for heroin trafficking and firearms offenses, announced U.S. Attorney Russell Coleman.
“The Department of Justice will continue to aggressively pursue gun cases and drug trafficking in federal court as a means of reducing violent crime in this community” said United States Attorney Russell Coleman “Our Commonwealth is blessed with able law enforcement partners who share this vision.”
Jamar Garrison of Louisville, Kentucky was convicted yesterday in United States District Court on charges of possession of heroin with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a handgun by a convicted felon. Mr. Garrison had been released on bond for state drug trafficking charges for the last two years when he was arrested after being found in possession of a loaded semiautomatic handgun, a mixture of heroin and fentanyl packaged for sale, several thousand dollars cash, and assorted other narcotics. The follow up investigation revealed that while released on bond on multiple pending felony drug indictments in Jefferson Circuit Court, Garrison had been using vehicles rented in the names of third parties in order to transport and traffic in heroin all over Louisville.
Garrison is a multiple convicted felon with prior convictions for drug trafficking, robbery, felony assault, wanton endangerment, wanton endangerment of a police officer, felony fleeing and evading, and assorted other felony and misdemeanor crimes. He was arrested five times in 2017 while on felony bond for drug trafficking.
Garrison will be sentenced November 1, 2018, and faces a mandatory minimum sentence of 5 years in prison and could receive up to life imprisonment. He could also be fined $2,000,000, and be required to serve no less than 6 years of supervised release. There is no parole in the federal system. Garrison has been detained by U.S. District Court Judge Rebecca Grady Jennings since his May 23, 2018, indictment on federal charges.
This case was prosecuted by Assistant United States Attorneys Erin McKenzie and Marisa J. Ford, and paralegal Brandi Henderson, and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Louisville Metro Police Department, with assistance from the Louisville Metro Intelligence Task Force (LMINTEL).
On July 25, 2017, a jury sitting in United States District Court for the Western District of Kentucky returned a verdict of guilty against Chavon Davis, of Louisville, for knowingly making false statements to federally-licensed firearms dealers in the course of purchasing five firearms. According to the Superseding Indictment, Davis knowingly made material false statements to two separate federally licensed firearms dealers in order to acquire five semiautomatic pistols. The evidence at trial established that Davis bought the firearms so he could them to sell to a convicted felon. Specifically, the Superseding Indictment charged that Davis purchased a .45 caliber semiautomatic pistol from a firearms dealer in Hardin County, Kentucky on May 16, 2016. Later, on May 24, 2016, Davis purchased two .40 caliber semiautomatic pistols and two 9 millimeter semiautomatic pistols from a firearms dealer in Jefferson County, Kentucky. On both occasions, Davis completed the standard ATF Form 4473 which is required anytime a licensed dealer sells a firearm to a purchaser. ATF Form 4473 contains a number of questions that the purchaser of the firearm is required to answer truthfully before the dealer can lawfully transfer the firearm. One of the questions was whether Davis was the actual purchaser of the firearms. On each of the forms, Davis stated that he was the actual purchaser of the firearm. The evidence at trial, however, was that the defendant was “straw-purchasing” the firearms which he sold to a convicted felon and for profit. The evidence at trial established that during the time period from February to May, 2016, Davis purchased a total of 15 semiautomatic pistols, but only possessed two of the pistols when ATF agents interviewed him in May, 2016.
This case was prosecuted by Assistant United States Attorneys Tom Dyke and Corinne Keel, and paralegal Jane Bauer, and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Hardin County Narcotics Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to specifically identify the criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Two Members of Fraud and ID Theft Ring SentencedRead the Press Release
ALEXANDRIA, Va. – Two members of an identity-theft-and-fraud conspiracy were sentenced today for fraudulently entering into apartment leases and opening bank accounts using the personal information of their victims.
According to court documents, Andraliesha Jefferson, 28, of Reno, Nevada, and Robert McCrickard, 56, of Baltimore, Maryland, used counterfeit drivers’ licenses bearing their photographs and the names and identifying information of their victims to enter into apartment leases in Northern Virginia and the Washington, D.C.-metropolitan area. They then used the “new addresses” associated with the leases to receive debit and credit cards from bank accounts they had fraudulently opened, also using victims’ personal information. Acting under the direction of their ringleader, Michael Oginni, of Rockville, Maryland, the conspirators racked up hundreds of thousands of dollars in fraudulent charges for luxury goods and gift cards. They also placed high-interest credit-to-debit transfers in the fraudulently acquired bank accounts, which enabled them to withdraw cash. The conspiracy generated $850,000 of fraudulent transactions in just under two years. The criminal scheme victimized over 50 individuals.
Jefferson was sentenced to three years of probation, a sentence which credited her for time she served in a Virginia detention center. McCrickard was sentenced to 31 months of in prison. Another conspirator, Lacola Nickens, was sentenced last week to a one year in prison. Ringleader Michael Oginni will be sentenced in September.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Eric Shen, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Laura Fong, Alexander P. Berrang, and Maya D. Song prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-92 (Jefferson), and 1:17-cr-51 (McCrickard).
Texas man sentenced to 225 months imprisonment for conspiracy to distribute cocaine while on federal supervised releaseRead the Press Release
Memphis, TN – A Texas man has been sentenced to 225 months imprisonment for conspiracy to possess with intent to distribute cocaine while on federal supervised release. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, in 2016, investigators with the Drug Enforcement Administration investigated a drug trafficking organization distributing multiple kilograms of cocaine in the Western District of Tennessee. Rafael Garza a/k/a "Poppy", 46, was identified as the source of supply for this organization. Utilizing tractor trailers, this organization would ship kilograms of cocaine from Brownsville, Texas to Memphis. Based upon a conservative estimate, this organization was responsible for the distribution of at least 50 kilograms but less than 150 kilograms of cocaine in the Memphis area.
U.S. Attorney D. Michael Dunavant said: "Disruption and dismantlement of drug trafficking organizations is a crucial mission of this office, in order to stop the supply of deadly narcotics into West Tennessee. This sentence demonstrates our commitment to impose significant consequences on such recidivist drug dealers."
Garza pleaded guilty to this offense on April 12, 2018. On July 26, 2018, U.S. Senior District Judge Samuel H. Mays sentenced Garza to 225 months imprisonment, which included a sentence for violation of federal supervised release out of Brownsville for possession with intent to distribute marijuana.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorneys Jerry Kitchen and Michelle Kimbril-Parks prosecuted this case on the government’s behalf.
Superseding Indictment Charges Former Biscayne Park Police Chief and Former Officers with Conspiring to Violate Three Victims’ Civil Rights by Intentionally Making False ArrestsRead the Press Release
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced the return of a superseding indictment against former Biscayne Park Police Chief Raimundo Atesiano and former Officers Charlie Dayoub and Raul Fernandez for their roles in conspiring to falsely arrest individuals identified as “C.D.,” “E.B.,” and “T.D.,” a 16-year old juvenile.
Atesiano, Dayoub, and Fernandez were charged with conspiracy to violate civil rights under color of law, in violation of Title 18, United States Code, Section 241(Count 1); and deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242 (Count 2). Atesiano was also charged with deprivation of E.B.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242 (Count 3). If convicted, Dayoub and Fernandez each face a maximum statutory sentence of 11 years in prison while Atesiano faces a maximum of 12 years. Guillermo Ravelo, another former Biscayne Park Officer, is named in the indictment but not as a defendant. Yesterday, Ravelo pleaded guilty to the same conspiracy charge in violation of Title 18, United States Code, Section 241, as well as a separate, unrelated Civil Rights violation.
The indictment alleges that Atesiano, as the Biscyane Park Police Chief, caused and encouraged officers to knowingly arrest individuals without a legitimate basis in order to maintain a fictitious 100 percent clearance rate of reported burglaries. Atesiano directed Ravelo to arrest C.D. on January 23, 2013 and E.B. on February 26, 2014, in order to falsely charge both with unsolved burglaries despite knowing there was no evidence and no lawful basis to support such charges. The indictment further alleges that Atesiano directed Dayoub and Fernandez to arrest T.D. on June 13, 2013, in order to falsely charge him with unsolved burglaries despite knowing there was no evidence and no lawful basis to support such charges. Following Atesiano’s instruction, Ravelo, Dayoub, and Fernandez completed multiple arrest affidavits that included false narratives about evidence purporting to support the charges. On July 9, 2013, at a meeting of the City Council for The Village of Biscayne Park, Atesiano announced that his department had a 100 percent clearance rate for burglaries.
An indictment merely contains allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mr. Greenberg commends the investigative efforts of the FBI, the FBI Miami Area Corruption Task Force and FDLE in this matter. Mr. Greenberg thanked the Miami-Dade State Attorney’s Office for its assistance. The case is being prosecuted by Assistant U.S. Attorney Harry Wallace, Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice, and Assistant State Attorney Trent Reichling.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sulphur man sentenced to 5 years and 5 months in prison for storing child pornography onlineRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Sulphur man was sentenced Thursday to 65 months in prison for storing child pornography online.
Cameron Deshown Fairley, 28, of Sulphur, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of possession of child pornography. He was also sentenced to 10 years of supervised release and is required to register as a sex offender. According to the April 25, 2018 guilty plea, Fairley maintained an online data storage account from September 2016 to February 2017 where he possessed images and videos of child pornography. He used the account to access and view child pornography. Some of the images depicted children under the age of 12.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
St. Louis Man Pleads Guilty to Committing Two Bank Robberies while on Parole for Bank RobberyRead the Press Release
St. Louis, MO – David T. McGee, 47, of St. Louis, pled guilty to two counts of committing a bank robbery. He appeared in federal court this morning before U.S. District Judge Audrey G. Fleissig.
According to court documents, on April 17, 2017, McGee entered the Great Southern Bank in Ferguson and slid a piece of paper to the teller stating that she should give him some money. McGee wanted large bills and provided a plastic bag for the teller to put the money in. The teller grabbed a large stack of U.S. Currency and asked if that was enough to which McGee responded yes and left the bank.
On May 8, 2017, McGee entered the Bank of America in St. Charles and handed a teller a plastic bag and a note, which read that he needed straps of $100s, $50s and 20s. The teller gave him the U.S. Currency and McGee left the bank. McGee was on supervised release for a bank robbery in Illinois.
McGee faces up to 20 years imprisonment, a $250,000 fine or both on each count. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Springfield Man Sentenced to 18 Years for Bank Robbery, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for his sixth bank robbery and for illegally possessing a firearm.
Anthony Carlton Dunlap, 42, was sentenced by U.S. District Judge Roseann Ketchmark to 18 years in federal prison without parole. Dunlap was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 15, 2017, Dunlap pleaded guilty to one count of bank robbery and one count of being a felon in possession of a firearm.
According to court documents, Dunlap entered Bank of America, 633 W. Kearney St., Springfield, at about 4:30 p.m. on Jan. 3, 2017. Dunlap, wearing his hoodie up covering his head, approached a teller and handed her a piece of paper that said, “stay calm.” Dunlap looked toward his hand that was in his coat pocket, causing the teller to believe he made the gesture to indicate he was armed.
The teller removed cash from her teller drawer and placed it on the counter in front of Dunlap. He then demanded more money, so the teller removed more cash from her teller drawer. Dunlap stuffed the cash into his pockets and left the bank. An audit of the victim teller’s drawer revealed that $3,910 was taken in the robbery.
Dunlap was found a short time later, hiding in the back seat of his girlfriend’s car, which was parked in front of a Springfield residence. As Dunlap was removed from the car, a large amount of loose cash was dragged out with him. Cash was also on the back floor boards of the car. The total amount recovered was $3,910. A loaded Hi Point .40-caliber pistol was also located on the backseat of the car. Dunlap told law enforcement officers that he robbed the bank in order to get money to buy heroin.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Dunlap has five prior felony convictions for five separate bank robberies committed between Nov. 19, 2001, and Feb. 19, 2002.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Slidell Couple Pleads Guilty to Violations of Federal Gun Control ActRead the Press Release
U.S. Attorney Duane A. Evans announced that CHRISTOPHER MAZUR, age 34, and REBECCA COMSTOCK, age 36, pleaded guilty today to violations of the Federal Gun Control Act. MAZUR pleaded guilty to one count of possession of a firearm by a prohibited person, in violation of Title 18, United States Code, Sections 922(g)(1), 922(g)(9), and 924(a)(2). COMSTOCK pleaded guilty to making a false statement to a federally licensed firearms dealer, or a straw purchase, in violation of Title 18, United States code, Sections 922(a)(6), 924(a)(2), and 2.
According to court documents, COMSTOCK falsely stated in paperwork submitted to a federally licensed firearms dealer that she was the actual purchaser of three firearms that were intended for MAZUR. MAZUR could not purchase the firearms for himself because of his previous felony convictions in Louisiana and Mississippi, and because of a previous Louisiana conviction for a misdemeanor crime of domestic violence. In addition to the three guns purchased from the federally licensed firearms dealer, federal agents seized seven firearms and 2,825 rounds of ammunition from MAZUR and COMSTOCK’S residence.
MAZUR and COMSTOCK face as to each count a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
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.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney J. Ryan McLaren is in charge of the prosecution.
Schenectady Man Arrested for Receipt and Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – Robert Kirk, age 35, of Schenectady, New York, appeared yesterday in federal court on charges that he received and distributed child pornography over the internet.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the federal criminal complaint, Kirk used an anonymous account on Kik Messenger, an instant messaging application, to receive and distribute child pornography. Kirk also had, on his cell phone, hundreds of image files and videos depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Kirk faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Kirk would be required to register as a sex offender.
Kirk appeared yesterday before United States Magistrate Judge Daniel J. Stewart. Kirk waived his detention hearing and was ordered detained pending further proceedings.
This case is being investigated by HSI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
This case is being prosecuted as part of Project Safe Childhood. 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), and is designed to marshal 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.
Salem Man Pleads Guilty to EscapeRead the Press Release
CONCORD - Liam Delorey, 37, of Salem, pleaded guilty in federal court to escape, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Delorey had been in federal custody since 2017. He was serving a sentence for violating the terms of his supervised release following a federal felony conviction for narcotics distribution. In May of 2018, he was transferred from a Bureau of Prisons facility to a residential reentry center in Manchester, New Hampshire, to start pre-release programming. On June 18, 2018, the defendant signed out of the center to go to work. Although he knew he was required to return by 8:00 p.m. that night, he did not do so. His whereabouts were unknown until he self-surrendered to the U.S. Marshals in Concord, New Hampshire on the evening of June 19, 2018.
Delorey is scheduled to be sentenced on November 8, 2018.
This matter was investigated by the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Russian Hacker Sentenced to Nearly 6 Years in Prison in Scheme that Caused $4.1 Million in Losses with Fraudulent Debit CardsRead the Press Release
LOS ANGELES – A Russian national was sentenced today to 70 months in federal prison for hacking into the accounts of two companies and issuing unauthorized debit cards associated with dependent care accounts to conspirators around the world, leading to losses of more than $4 million.
Mikhail Konstantinov Malykhin, 36, an illegal alien who was living in the Park La Brea district of Los Angeles, was sentenced by United States District Judge Dolly M. Gee after admitting to hacking into the accounts and conspiring to use the fraudulent debit cards.
In addition to the 70-month sentence, Judge Gee ordered Malykhin to pay $4,131,731 in restitution. Malykhin has agreed to forfeit approximately $1.3 million in cash and more than $22,000 in gift cards previously seized by FBI agents from Malykhin’s safe deposit boxes, as well as several gold bars, nearly $30,000 that Malykhin sent to a plastic surgery center, and a 1966 Ford Mustang.
Judge Gee today described Malykhin’s offenses as “reprehensible,” noting that he had “caused much pain” and “ruined the lives of many of his victims.”
Malykhin pleaded guilty in 2016 to two felony offenses – conspiracy to use unauthorized access devices (the stolen debit cards) and unauthorized access to a protected computer.
According to court documents, in late 2015 and early 2016, Malykhin used login credentials supplied to him by another hacker to illegally access the online software platform of a Massachusetts company, which other companies used to manage flexible spending accounts and dependent care accounts. Once he illegally accessed the platform, Malykhin reactivated dormant dependent care accounts associated with an Oregon company and issued debit cards from these accounts with limits of up to $5 million. Malykhin also illegally accessed the platform and issued debit cards linked to a Colorado company that later went out of business as the result of the losses suffered through the hack.
Malykhin caused the debit cards to be sent to conspirators around the world, including to people in the United States and Russia, where the cards were used to purchase big-ticket items at retail stores, such as Best Buy and Apple in the Los Angeles area. For his part, Malykhin received cash payments, luxury items, and gift cards obtained when items purchased with the fraudulent debit cards were returned.
Malykhin’s conduct resulted in over $4 million in losses, with the now-defunct Colorado company suffering the bulk of those loses, which had to be shouldered by the Massachusetts company in the wake of the primary victim’s insolvency. As a result of the losses caused by Malykhin, employees of the Oregon and Colorado companies lost their jobs, as well as investments in those small businesses and retirement savings.
Judge Gee today described some of the victim-impact letters submitted to the court as “heart-breaking” and noted the “lasting emotional harm” that Malykhin had caused the victims.
Last year, five local “runners” who used the fraudulent debit cards at retail locations were sentenced to federal prison.
The case against Malykhin was investigated by the Federal Bureau of Investigation.
The case against Malykhin was prosecuted by Assistant United States Attorney Anil J. Antony of the Cyber & Intellectual Property Crimes Section, with assistance provided by Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section.
Rochester Man Convicted by A Federal Jury of Bank Robbery SentencedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Joseph W. Peeples, III, 44, of Buffalo, NY, who was convicted following a jury trial of robbing the Chase Bank located at 1 South Clinton Avenue, Rochester, NY, was sentenced to 264 months in prison by Chief Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Melissa M. Marangola and Katelyn Hartford, who handled the prosecution of the case, stated that on January 5, 2017, the defendant robbed the Chase Bank. Peeples was tracked by law enforcement to Binghamton, NY where he was arrested approximately 13 hours later. The defendant left approximately $43,000 in a bathroom at the Trailways Bus Station and $10,000 in a taxi cab. Upon Peeples arrest, law enforcement officers searched his hotel room and found $52,000.The defendant had just been released from federal prison six days prior to robbing the Chase Bank for an unrelated bank robbery. During the trial, Peeples acted as his own attorney. A jury deliberated for under one hour and returned a verdict on March 30, 2018.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Police Department, under the direction of Police Chief Michael Ciminelli.
Revere Men Sentenced for Trafficking OxycodoneRead the Press Release
BOSTON – A father and son from Revere were sentenced yesterday in federal court in Boston for trafficking oxycodone.
Mario Scata, 71, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to three years in prison and two years of supervised release. His son, Manuele Scata, 45, was sentenced by Judge O’Toole to eight years and six months in prison and three years of supervised release. In December 2017, Mario Scata pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone and one count of possession with intent to distribute oxycodone. In February 2018, Manuele Scata pleaded guilty to conspiracy to distribute oxycodone, possession with intent to distribute oxycodone, and use of a firearm during and in relation to a drug trafficking offense.
In 2014 and 2015, agents observed foot and vehicle traffic consistent with street-level drug sales coming and going from the Scata home and from Manuele Scata’s business, D & M Auto Doctor, on Bennington Street in East Boston. While investigating the Scatas’ oxycodone trafficking, Scatas’ pill supplier, Bregu, was identified through surveillance and phone analysis. After obtaining a search warrant to track the precise location of Bregu’s phone, it was determined that every two-to-three weeks, Bregu drove his vehicle from Staten Island to Revere or East Boston, met with one or both of the Scatas, and then returned to Staten Island.
On July 16, 2015, a series of search warrants were executed after tracking Bregu’s phone from Staten Island to East Boston and then watching as Bregu met with Mario and Manuele Scata at D & M Auto Doctor. During the searches, a sophisticated hidden compartment was discovered in Bregu’s vehicle, which contained $37,800. In addition, approximately 1,900 oxycodone pills, a loaded firearm, and a machete were recovered from Manuele Scata’s vehicle and additional oxycodone pills, a hand-written drug ledger, and nearly $12,000 were recovered from the Scatas’ home.
On June 8, 2018, Bregu was sentenced to six years in prison and three years of supervised release after being convicted of conspiracy to possess with intent to distribute and to distribute oxycodone.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Revere Police Chief James Guido; Quincy Police Chief Paul Keenan; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorneys Christopher Pohl of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Redfield Man Sentenced to 210 Months in Prison for Drug, Weapons ChargesRead the Press Release
DES MOINES, Iowa – David James Lister, age 53, formerly of Redfield, Iowa, was sentenced on July 26, 2018, by United States District Judge Rebecca Goodgame Ebinger to 210 months in prison for charges related to the possession of methamphetamine with intent to distribute and the unlawful possession of firearms, announced United States Attorney Marc Krickbaum.
In August of 2016, law enforcement made two undercover purchases of methamphetamine from David Lister at his apartment in Redfield, Iowa. A search warrant was executed at the residence on August 23, 2016, where approximately 1.5 pounds of methamphetamine was discovered in Lister’s safe. Also seized from the safe was over $2,000 in currency, which Lister has admitted came from the sale of methamphetamine. Lister consented to search of a nearby storage facility, which resulted in the seizure of numerous firearms. Lister acknowledged being a multi-pound methamphetamine dealer, indicating that he typically would purchase 2 pounds of meth for $20,000 from his supplier every two weeks, and then distribute the drugs to 12 to 15 customers in the Redfield area. Lister also stated that the firearms in the storage unit were received in trade for methamphetamine.
This matter was investigated by the Des Moines Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Recidivist Securities Fraudster Charged with Multi-million Dollar Stock Manipulation SchemeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Howard M. Appel, 57, of Wayne, Pennsylvania, was charged today in a criminal information with one count of conspiracy to commit securities fraud.
The information alleges that Appel—a former licensed stockbroker with two prior securities-fraud related convictions—secretly acquired large blocks of stock in publicly traded companies, including Virtual Piggy, Inc. (ticker symbol “VPIG”), and Red Mountain Resources, Inc. (ticker symbol “RDMP”), to manipulate the market in those stocks. As alleged, Appel acquired title to the shares in the names of nominees in order to hide his ownership block from investors and made between $3,000,000 and $4,000,000 from his scheme. Using nominee accounts was necessary because he previously lost his license and was barred by the Financial Industry Regulatory Authority (“FINRA”) from selling securities or associating with any member firm.
The information further alleges that Appel and his co-schemers manipulated the stock price by taking numerous actions that were hidden from investors and security regulators including: working as a paid “consultant” to recruit investors, raise capital, and get the companies running; engaging in coordinated buying and selling, which he closely monitored, to raise the share price; and preventing co-conspirators from selling their shares without his permission. The information further alleges that Appel encouraged unwitting investors to buy large blocks of stock by touting the companies’ supposed impending success while, at the same time, selling off shares from his nominee accounts—sometimes to those same investors. Appel also allegedly traded on inside information that he obtained as a result of his “consulting” work for the companies, including the status of the companies’ efforts to get listed on NASDAQ. As alleged, none of these facts was disclosed to the investing public in any of the public filings the company and Appel were required to make.
Appel faces a maximum sentence of five years’ incarceration, a three-year period of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greatest, and a $100 special assessment.
“As alleged, Appel orchestrated an end run around his FINRA bar by conspiring with others, at least one of whom was a licensed stockbroker, to use nominee accounts to manipulate the market and turn an illegal multi-million dollar profit,” said U.S. Attorney McSwain. “Apparently undeterred, this habitual fraudster once again used his market know-how to further his own self-interest and to violate the law. The efforts of our Office and the Securities and Exchange Commission’s New York Office demonstrate our steadfast commitment to using all of the tools at our disposal—both civil and criminal—to enforce the federal securities laws.”
The criminal case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe. The parallel civil enforcement proceeding was filed by the Securities and Exchange Commission’s New York Regional Office, under the direction of Mark P. Berger.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty
Rankin County Man Sentenced to 5 Years in Federal Prison for Cocaine ConspiracyRead the Press Release
Jackson, Miss. – Leon Brown, 51, of Rankin County, was sentenced yesterday by Chief U.S. District Judge Daniel P. Jordan III to 60 months in federal prison, followed by four years of supervised release and a $1,500 fine, for conspiracy to possess with the intent to distribute more than 500 grams of cocaine, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith.
This case is the result of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed "Rock Bottom," which began as an operation targeting illegal narcotics distribution in the central Mississippi area. During the investigation, agents intercepted telephone calls wherein Brown was distributing kilogram amounts of cocaine. Based on his role in the conspiracy, Brown was responsible for as much as 15 kilograms of cocaine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives, with assistance from: the Hinds County Sheriff’s Office, the Ridgeland Police Department, the Jackson Police Department, the U.S. Marshals Service, the Federal Bureau of Investigation, the Mississippi Highway Patrol, the Madison County Sheriff’s Office, the Brandon Police Department, the Rankin County Sheriff’s Office, the Mississippi Department of Corrections, the Pearl Police Department, the Flowood Police Department, the Bureau of Customs and Border Patrol, and the DEA Houston Field Division. The case was prosecuted by Assistant United States Attorney Chris Wansley.
Postal Service Employee and His Half-Brother Face Charges in Scheme that Stole nearly $240,000 from USPS TrucksRead the Press Release
LOS ANGELES – A United States Postal Service employee and his half-brother were arraigned this morning after being indicted by a federal grand jury on charges of participating in a conspiracy that caused nearly a quarter million dollars in losses in two armed robberies and the burglary of USPS trucks carrying cash.
William Crosby, 31, the USPS employee, and Myron Crosby, 27, both of Inglewood, were named in a four-count indictment filed on Tuesday. At today’s arraignment, both men pleaded not guilty and were ordered to stand trial on September 18.
The Crosbys allegedly participated in the armed robbery of a USPS truck driver on March 1 after the vehicle was forced to stop on an off-ramp of the Harbor Freeway. The indictment also alleges that William Crosby participated in the February 1 armed robbery of a Postal Service driver, as well as the burglary of a Postal Service truck on August 1, 2017.
As a former supervisor, William Crosby knew when the USPS transported cash generated from the sale of money orders and USPS merchandise – information that is not known to all Postal Service employees, according to the indictment, which alleges that the burglary and two armed robberies caused cash losses of $238,457.
According to the indictment:
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On August 1, 2017, William Crosby told unknown co-conspirators that a Postal Service truck carrying a large amount of cash was on the loading dock at the Dockweiler Post Office in South Los Angeles. A man wearing a Postal Service shirt walked onto the loading dock and stole a container inside the truck that contained more than $128,000 in cash. About a month after this burglary, Myron Crosby allegedly used Instagram to send his half-brother a photo of stacks of $100, $50 and $20 bills with the caption “the count.”
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On February 1, William Crosby, then assigned to the Wagner Post Office in Los Angeles, provided information to unknown co-conspirators that a USPS truck carrying cash was leaving the facility. During an incident in which William Crosby acted as a lookout, a minivan blocked the USPS truck just outside the Wagner Post Office, a man threatened the truck driver at gunpoint, and the robber stole over $37,000 in cash.
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On March 1, William Crosby again acted as a source of information and a lookout in a robbery of a USPS truck that departed from the Dockweiler Post Office. Myron Crosby allegedly rented a Mercedes SUV and used that vehicle to box in the truck when it exited the southbound 110 Freeway at Slauson Avenue, which allowed another unidentified man to brandish a gun and steal over $72,000 in cash.
The indictment charges both Crosbys with conspiracy and robbery of United States property in relation to the March 1 incident. William Crosby is additionally charged with theft of government property and an additional count of robbery of United States property.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they were to be convicted of the crimes alleged in the indictment, William Crosby would face a statutory maximum sentence of 65 years in federal prison, and Myron Crosby would face up to 30 years in prison for the conspiracy count.
The case is being investigated by the United States Postal Inspection Service and the United States Secret Service.
The case is being prosecuted by Assistant United States Attorney Thomas Rybarczyk of the Public Corruption and Civil Rights Section.
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Olton Man Admits to Enticement of a MinorRead the Press Release
LUBBOCK, Texas — Jimmy Kit Fields, 37, of Olton, Texas, appeared today in federal court before U.S. Magistrate Judge D. Gordon Bryant, Jr., and pleaded guilty to enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Fields faces not less than 10 years and not more than life in federal prison, a $250,000 fine and not less than five years nor more than a lifetime of supervised release. Fields has been in custody since his arrest on June 15, 2018, and will remain in custody pending sentencing.
According to the plea agreement factual resume filed in the case, in March 2018, Fields gave Jane Doe, a 13-year-old minor, a cell phone. Jane Doe’s father had suspected an inappropriate relationship between his 13-year-old daughter and Fields, and reported the incident to the Roosevelt County Sheriff’s Office (RCSO) in New Mexico. The RCSO conducted a search on the contents of the cell phone given to Doe by Fields, but were unable to find any evidence of a crime.
On May 30, 2018, the RCSO responded to a call to investigate a report that Doe was missing. Doe’s parents believed their daughter may be trying to meet with Fields, and believed she had been communicating with him on her laptop computer. Doe later returned to the residence and provided the RCSO the password to her Facebook account.
A review of Doe’s Facebook account by the RCSO revealed Fields had numerous sexually explicit conversations with Doe since May 29, 2018, and leading up to their contact the following morning at 1:00 a.m. During that contact, Fields provided alcohol to Doe during their encounter. In the factual resume, Fields admitted to having sexual contact with Doe on four occasions.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Roosevelt County Sheriff’s Office (RCSO), the Lamb County Sheriff’s Office, the Federal Bureau of Investigation, and the Department of Homeland Security, investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
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Okmulgee Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brett Wayne Pigeon, age 32, of Okmulgee, Oklahoma, pled guilty to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment alleged that on or about March 23, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Charles Daly, 12 gauge pump action shotgun, serial number 950658, which had been shipped and transported in interstate commerce.The charges arose from an investigation by the Okmulgee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Nine Defendants from Ohio Arrested for Gun TraffickingRead 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 Deonte “Terry” Cooper, 23, Ricky Turner, 48, Argentis Albino Herrera, 24, Diones Bowens, 22, Shane Shumaker, 31, Victoria Orlando, 36, Vicky Hoffstetter, 37, Koree Runyan, 24, and Jenna Ann Redding, 31, all of Ashtabula, Ohio, were arrested and charged by criminal complaint with conspiracy to traffic in firearms. The charge carries a maximum penalty of five years in prison, and a 250,000 fine.
Assistant U.S. Attorney Emmanuel O. Ulubiyo, who is handling the case, stated that according to the complaint, in November 2017, defendant Herrera purchased 29 firearms in Ashtabula, Ohio. On March 23, 2018, one of those firearms, a Glock pistol, was recovered in Buffalo, NY.
In April and May of 2018, some of the defendants purchased guns for Robert L. Williams, Jr., who resides in Buffalo and who himself has been previously charged with firearms trafficking. Those individuals include:
• Defendant Bowens; who purchased 12 firearms for Williams from Gun Brothers, in Eastlake, Ohio; • Defendant Shumaker; who purchased 14 firearms for Williams from Point Blank Range & Gun Shop, in Mentor, Ohio; • Defendant Orlando; who purchased 16 firearms for Williams from Excalibur Outdoors LLC, in Circleville, Ohio; • Defendant Hoffstetter; who purchased 11 firearms for Williams in Eastlake, Ohio; • Defendant Runyan; who purchased 10 firearms for Williams in Perry, Ohio; and
• Defendant Redding; who purchased eight firearms for Williams from MGA Arms, in Perry, Ohio.All told, the defendants are accused of illegally purchasing a total of 100 firearms. 10 of those firearms have been recovered in Buffalo, and another firearm was recovered in Youngstown, Ohio.
In connection with the purchase of these firearms, defendants Cooper, Turner, Herrera, Bowens, Shumaker, Orlando, Hofstetter, Runyan, and Redding falsely represented on an ATF Form 4473 that they were the actual purchaser of the firearm, when, in fact, the defendants purchased the firearms for Williams and Deonte Cooper.
Defendants Herrera, Runyan, Hoffstetter, Shumaker, Orlando, and Cooper were arraigned this morning before U.S. Magistrate Judge Michael J. Roemer. All defendants, except for Orlando, were released on conditions. Defendant Orlando is being held pending a detention hearing on August 6, 2018 at 9:30 a.m.
The criminal complaint is the result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Nigerian Nationals Sentenced, Face Deportation Proceedings in Bank Fraud, Counterfeit Passport SchemeRead the Press Release
PROVIDENCE, RI – Two Nigerian nationals who participated in a large-scale bank fraud and counterfeit passport scheme, with an intended loss of more than $1.2 million dollars, were sentenced today to 13 months in federal prison, announced United States Attorney Stephen G. Dambruch and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
Olugboyega Akinloye Fasanya, 36, of Woonsocket and Anthony Chidozie Ezike, 36, of Pawtucket, previously admitted to the Court that they participated in a scheme to defraud banks in Rhode Island and Massachusetts by acquiring and altering lawfully passed checks between commercial entities. The checks were altered to be made out to aliases used by Fasanya, Ezike and others, and deposited into bank accounts opened using the aliases. The accounts were opened using counterfeit passports from Nigeria, Ghana and South Africa as forms of identification. The funds were removed from the accounts prior to the fraud being detected by the financial institutions.
According to information presented to the Court, participants in the scheme deposited fraudulent checks and wires totaling approximately $1,267,000 and successfully obtained approximately $487,000 through withdrawals and debit purchases.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Fasanya and Ezike to serve 3 years supervised release upon completion of their terms of incarceration. Additionally, Fasanya was ordered to pay restitution in the amount of $379,362 and Ezike was ordered to pay restitution in the amount of $228,730 to the banks they defrauded.
The U.S. Sentencing Guidelines range of imprisonment in the matter of the United States of America v. Olugboyega Akinloye Fasanya is 18-24 months. The government recommended the court impose a sentence of 21 months in prison. The U.S. Sentencing Guidelines range of imprisonment in the matter of the United States of America v. Anthony Chidozie Ezike is 21-27 months. The government recommended the court impose a sentence of 13 months in prison.
Fasanya and Ezike face deportation proceedings upon completion of their term of incarceration.
The case was prosecuted by Assistant United States Attorney Lee H. Vilker.
The matter was investigated by Homeland Security Investigations with the assistance of U.S. Customs and Border Protection, and the Woonsocket, Pawtucket and Warwick Police Departments.
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Nigerian National Sentenced to 14 Years in Federal Prison for Fraud and Money Laundering SchemesRead the Press Release
In Austin today, a federal judge sentenced 42-year-old Nigerian National and Canadian resident Ochuko Sylvester Eruotor to 168 months in federal prison for his leadership role in multi-million dollar fraud and money laundering schemes, announced United States Attorney John F. Bash and Special Agent in Charge Shane M. Folden, Homeland Security Investigations (HSI), San Antonio Division; Special Agent in Charge Richard D. Goss, Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office; and, Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service (USPIS), Houston Division.
In addition to the prison term, United States District Judge Sam Sparks ordered Eruotor to pay restitution in the amount of $1,672,805.51 and be placed under supervised release for a period of three years after completing his prison term.
“If you are a foreign national contemplating defrauding vulnerable Americans from abroad, know this: We will identify you, find you, bring you here, prosecute you, and punish you. Your location abroad will not save you,” said U.S. Attorney John F. Bash.
In December 2017, Eruotor was extradited from Germany to the United States after being arrested with assistance from Interpol. On February 1, 2018, Eruotor pleaded guilty to one count of conspiracy to commit money laundering in furtherance of the fraudulent schemes.
Court documents showed that this investigation targeted a money laundering network that laundered the proceeds of various fraud schemes perpetrated against U.S. victims by scammers based in Canada, Nigeria, and the United States. The schemes included: “grandson-in-jail” frauds over the phone targeting elderly victims; fake investment scams; business email compromise scams; Stolen Identity Refund Fraud (SIRF) tax filing scams; and, romance victim scams.
The money launderers opened bank accounts, sometimes using fraudulent passports in false names, or hired others to open bank accounts in order to facilitate their scheme. Those U.S.-based bank accounts would receive the fraudulently obtained funds from the victims. The U.S.-based conspirators quickly withdrew the money from the bank accounts with a portion of the fraud proceeds kept as a fee. Then the remainder of the funds were sent to Canada or Nigeria. To date, law enforcement has identified in excess of $3.5 million dollars of fraud proceeds from hundreds of victims laundered by the conspiracy.
“Financial crimes and identity theft have a devastating effect on the victims and our financial institutions. HSI and its enforcement partners will continue to do everything possible to stop this kind of fraud,” said Shane Folden, Special Agent in Charge for HSI San Antonio. “The defendant exploited people for his own personal gain.”
“The Postal Inspection Service takes it very seriously when the U.S. Mail is used to defraud innocent American citizens, especially our elderly. The sentence handed down today is the result of our ongoing mission to prosecute those who commit these types of fraud schemes. We would like to thank all of the other agencies that worked so diligently to bring justice to the victims of this criminal enterprise,” said USPIS Inspector in Charge Adrian Gonzalez.
Eruotor is the eighth defendant to be convicted and sentenced to federal prison as a result of this investigation. Other prison terms handed down range from ten months to 108 months.
Agents with HSI, IRS-CI, and UPSIS investigated this case. The U.S. Marshals Service and D.O.J.’s Office of International Affairs provided valuable assistance with respect to the extradition. Assistant U.S. Attorney Michael C. Galdo prosecuted this case on behalf of the Government.
Nigerian Man Sentenced to Federal Prison for Sweepstakes SchemeRead the Press Release
LOUISVILLE, Ky. – United States District Court Chief Judge Joseph H. McKinley, Jr. sentenced Kingsley I. Ekpendu, a Nigerian national, to 15 months in prison yesterday for his participation in a sweepstakes scheme that resulted in over 50 victims sending him cash in the mail, announced United States Attorney Russell M. Coleman.
Ekpendu, 42, was charged in an indictment and pleaded guilty to three counts of mail fraud. As part of the plea agreement, Ekpendu, who is a United States Permanent Resident, agreed to his removal from the United States after the completion of his 15-month prison sentence. Chief Judge McKinley also ordered Ekpendu to pay $257,916.15 in restitution to victims of the scheme.
According to the plea agreement, from on or about February 22, 2016, through October 4, 2017, Ekpendu participated in a scheme to defraud victims by making them believe they had won a sweepstakes or lottery. Ekpendu and others mailed letters to potential victims around the nation. Each letter stated the recipient had won a lottery or sweepstakes prize, listed a phone number for a “claims manager,” and included a check for several thousand dollars to cover “insurance and legal fees.” When the victim called the “claims manager,” the “claims manager” would tell the victim that in order to receive the prize, the victim needed to deposit the check and send several thousand dollars cash to an address in Louisville, Kentucky. The defendant would then pick up the parcels containing cash from the Louisville address, keeping a share of the cash for himself and sending the remainder to other participants in the scheme. Ultimately, the checks Ekpendu and others mailed to the victims were fraudulent, but the victims would not realize this until after they had sent cash to the Louisville address and it was too late for them to recover the funds.
Assistant United States Attorney Amanda Gregory prosecuted the case. The United States Postal Inspection Service and the Louisville Metro Police Department conducted the investigation.
Montgomery County Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Frank A. Dunn, Jr., age 60, of Burtonsville and Silver Spring, Maryland, pleaded guilty today to possession of child pornography.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Stephen Niemczak, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to the statement of facts that is part of Dunn’s plea agreement, on May 31, 2017, law enforcement executed search warrants at Dunn’s residences in Burtonsville and Silver Spring and recovered more than 14,000 images and 285 videos of children engaged in sexually explicit conduct. The images and videos included approximately 1,123 files involving minors identified as victims of child pornography by the National Center for Missing and Exploited Children, files depicting the abuse of infants and toddlers, and files depicting sadomasochism or violence against children.
Dunn also admitted that he distributed child pornography over the Internet from his Burtonsville residence using peer-to-peer file sharing software. Between April 2016 and August 2016, an undercover law enforcement officer downloaded approximately 500 images and 15 videos that Dunn made available for sharing over the Internet.
As part of his plea agreement, Dunn must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Dunn and the government have agreed that if the Court accepts the plea agreement, Dunn will be sentenced to between four and nine years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for November 14, 2018 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the HHS-OIG and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Joseph Baldwin, who are prosecuting the federal case.
Man Sentenced to Prison for Trafficking Cocaine through MailRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to six years in prison for using the United States Postal Service to traffic multiple kilograms of cocaine.
According to court documents, David T. Coffey, 26, distributed between five and 15 kilograms of cocaine from Texas into the Eastern District of Virginia. For two years, from 2015 to December 2017, Coffey received multiple shipments of cocaine from another individual in Texas, distributed the drug throughout the Virginia, and sent bulk shipments of cash back to Texas. When he was arrested, law enforcement found two kilograms of cocaine and $4,000 in cash in his possession.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Eric Shen, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorneys Troy A. Edwards, Jr. and Speare Hodges, and Assistant U.S. Attorney Mary K. Daly prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-64.
Man Sentenced to over Twenty-Seven Years in Federal Prison for Heroin DistributionRead the Press Release
A man who was involved in heroin distribution was sentenced on July 25, 2018, to more than 27 years in federal prison.
Donald Johnson also known as “Scony”, age 52, most recently from Cedar Rapids, and originally from Chicago, Illinois, received the prison term after a March 12, 2018, guilty plea to a three-count Information charging two counts of distribution of heroin causing serious bodily injury, and one count of distribution of heroin causing death. Johnson’s has been selling heroin in and around Cedar Rapids since at least 2015. Johnson received gram quantities of heroin, and broke them into smaller quantities for resale purposes. Johnson was fronted the drugs for resale on multiple occasions and had more than one supplier of heroin during his drug dealing activities. Johnson’s heroin distribution resulted in two victims suffering overdoses. Both received attention from emergency responders and were transported to the hospital where they each were revived by medical personnel. One of these victims later died from a second overdose after Johnson sold her drugs.
Johnson was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 325 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Johnson 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 Jack Lammers and investigated by the Cedar Rapids Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigation and the Drug Enforcement Administration Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-cr-97.
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Lexington Couple Sentenced for Drug Trafficking, Firearm OffensesRead the Press Release
LEXINGTON, Ky. — Brandi Stamper, 30, of Lexington, was sentenced yesterday to 15 years in federal prison, by Chief United States District Judge Karen K. Caldwell, for conspiring to distribute more than 40 grams of fentanyl, more than an ounce of crack cocaine, and more than half a kilo of cocaine. Stamper was also sentenced for being a felon in possession of firearms and for possessing a firearm in furtherance of her drug trafficking crime.
On Monday, Stamper’s co-defendant, Michael D. Jackson, 37, was sentenced to 25 years in federal prison after he pleaded guilty to the charges. Jackson’s convictions, combined with his criminal record, qualified him as both an Armed Career Criminal and Career Offender.
Jackson and Stamper previously admitted that, in early 2017, members of the Lexington Police Department (LPD), Narcotics Unit began an investigation into the residence they shared. The residence was located on Norway Street, near Lafayette High School. During the investigation, LPD stopped and searched Jackson’s vehicle, discovering a 9 mm firearm and large quantities of drugs. LPD detectives also executed a search on their residence where Stamper was located. LPD located quantities of a fentanyl mixture and cocaine, more than $80,000 in cash, a loaded Taurus handgun, a loaded Glock semi-automatic pistol, a loaded Cobra semi-automatic pistol, which was determined to have been stolen, and a vehicle that had been purchased with proceeds from Jackson and Stamper ’s drug trafficking.
Jackson admitted that he had prior drug trafficking convictions in Fayette Circuit Court. Stamper also admitted that she had prior felony convictions for Trafficking in Cocaine and Possession of Cocaine in Fayette Circuit Court. Jackson and Stamper pleaded guilty to these federal charges in April 2018.
“The Defendants’ drug trafficking activities, possession of firearms, and past criminal histories have led to this result,” stated Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The sentences imposed should serve as warning to those who engage in similar criminal activities. If you illegally possess firearms, particularly if you are engaged in drug trafficking, you are putting yourself at risk for a substantial stay in federal prison.”
“I want to commend the work of the ATF and the Lexington Police Department on this investigation and prosecution,” said U.S. Attorney Duncan. “The partnership between federal, state, and local law enforcement is vitally important in preventing violent crime and reducing the danger caused by drug trafficking activities.”
Under federal law, Jackson and Stamper must serve 85 percent of their respective prison sentences. Upon release, Jackson and Stamper will both be under the supervision of the United States Probation Office for eight years.
United States Attorney Duncan; Stuart Lowery, Special Agent in Charge, ATF; and Chief Lawrence Weathers of the Lexington Police Department, jointly made the announcement.
The investigation was conducted by the ATF and the Lexington Police Department. The United States was represented by Assistant United States Attorney Roger W. West.
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.
Lewiston Man Indicted for Bank RobberyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Keith Phillips, 57, of Lewiston, Maine, was charged by indictment in U.S. District Court with bank robbery.
According to court records, on June 6, 2018, Phillips entered Androscoggin Bank in Lewiston, approached a teller, passed a note that contained a demand for money and a threat of a gun, and absconded with $2,000.
If convicted, Phillips faces up to 20 years in prison and a $250,000 fine.
The case was investigated by the Lewiston Police Department; the FBI; the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Portland, South Portland, and Lewiston Police Departments; and the Central Maine Violent Crime Task Force.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Lake Charles woman sentenced to 22 months in prison for stealing more than $332,000 from law firmRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Lake Charles law firm employee was sentenced Thursday to one year and 10 months in prison for stealing more than $332,000 from the firm.
Pamela Ann Fayko, 54, of Lake Charles, was sentenced by U.S. District Judge Dee D. Drell on one count of wire fraud. She was also sentenced to three years of supervised release and was ordered to pay $332,110 restitution. According to the February 9, 2018 guilty plea, Fayko worked for a Lake Charles law firm as a bookkeeper and office manager from 2008 to 2016. As part of her job duties, she paid all the bills with a checkbook and had access to the company credit card. From 2011 to 2016, Fayko wrote fraudulent checks and made fraudulent purchases with the credit card, which cost the firm $332,110.30.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
Kenner Man Sentenced to Arson and Possessing a Destructive DeviceRead the Press Release
U.S. Attorney Duane A. Evans announced that RYAN SCOTT, age 40, of Kenner, was sentenced today after previously pleading guilty to one count of federal arson and one count of weapon violations.
U.S. District Judge Lance M. Africk sentenced SCOTT to 120 months incarceration as to each count, to run concurrently, to be followed by three years of supervised release.
According to court documents, SCOTT set fire to an apartment building in LaPlace, Louisiana, on August 13, 2017, in violation of Title 18, United States Code, Section 844(i). SCOTT also possessed a destructive device, a Molotov cocktail, in violation of Title 26, United States Code, Section 5861(d), on the same date. SCOTT threw the destructive device at a vehicle in Kenner, Louisiana, causing a fire.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Louisiana State Fire Marshal, the Kenner Police Department, and the Sheriff’s Office for St. John the Baptist Parish in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Myles Ranier.
Kansas City Area Laboratory Owner Convicted of Illegally Storing Hazardous WasteRead the Press Release
Yesterday, a federal judge found Ahmed el-Sherif, the owner, operator, and radiation safety officer for Beta Chem Laboratory in Lenexa, Kansas, guilty of illegally storing hazardous waste in violation of the Resource Conservation and Recovery Act, announced Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Stephen R. McAllister for the District of Kansas, and Jessica Taylor, Director of the Criminal Investigation Division of the U.S. Environmental Protection Agency (EPA).
The Honorable Julie A. Robinson issued a written verdict following the trial, which took place in February 2018. El-Sherif wanted, and was permitted, to waive his right to a jury trial and the case was heard by Judge Robinson in what is known as a “bench trial.”
El-Sherif, a trained chemist of Leawood, Kansas, started Beta Chem in the mid-1990s after having worked at several other radioactive synthesis laboratories. He used radioactive Carbon-14 and solvents in his operation, under license by the Kansas Department of Health and Environment (KDHE). KDHE has assumed regulatory authority for these purposes from the U.S. Nuclear Regulatory Commission under the Atomic Energy Act.
After Beta Chem was unable to provide KDHE with the required financial assurances regarding decommissioning the lab in the event that it was closed, KDHE inspected Beta Chem and discovered extensive radioactive contamination throughout the laboratory, including some parts of the lab with levels so high their instruments could not accurately read them. The radioactive contamination extended to the laboratory furniture, the equipment, including refrigerators, and containers of chemicals that were supposed to be non-radioactive. The next day, KDHE issued an Emergency Order of Suspension of License.
EPA conducted a hazardous waste inspection the same month, and subsequently notified el-Sherif of hazardous waste violations under the Resource Conservation and Recovery Act (RCRA). EPA also informed el-Sherif of his legal obligation to properly manage hazardous waste under RCRA. During the ensuing years, KDHE communicated with el-Sherif about the radioactive contamination at Beta Chem and they entered into a consent agreement in which he agreed to come up with a plan to remediate and dispose of the radioactive waste. While he engaged a number of consultants, el-Sherif never took any action to actually clean up the lab.
On October 4, 2013, after issuing an Emergency Order to Seize and Secure Radioactive Materials, KDHE took control of Beta Chem and secured the facility. EPA’s Criminal Investigation Division, assisted by the Federal Bureau of Investigation, executed a search warrant at Beta Chem on January 22, 2014, where agents discovered numerous containers containing hazardous wastes and contaminated with radiation. EPA determined there to be 1,138 containers at the lab, of which 886 had intact manufacturer labels with no handwriting, which showed many of those to be hazardous. The other containers were field tested for hazardous characteristics before being disposed of. In total, EPA determined there to be over two hundred pounds of hazardous waste, some of which was acute hazardous waste. All of the containers tested were radioactive, and forty-five percent of the contents tested were radioactive.
EPA’s Superfund program spent over $760,000 to remove and dispose of the hazardous waste.
“The public expects and deserves that those in the business of using dangerous radioactive materials do so in compliance with law,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “This defendant breached that trust, deliberately disobeyed the law, and ignored requests by KDHE and EPA to bring his laboratory into compliance with statutes and regulations designed to protect the public and the environment.”
“For years, the defendant knowingly stored hazardous waste with no regard to the serious public health and environmental dangers it posed,” said Special Agent in Charge of EPA’s criminal enforcement program for the EPA Regions covering Kansas Jeff Martinez. “Even when told to stop his dangerous practice, Mr. el-Sherif continued to ignore the risks. Yesterday’s guilty verdict should send a clear message that EPA will hold accountable those who willfully violate the law.”
Acting Assistant Attorney General Wood and U.S. Attorney McAllister thanked the U.S. EPA and the FBI for their work in this investigation. This case is being prosecuted by the Environmental Crimes Section of the Department of Justice. Senior Counsel Krishna S. Dighe and Trial Attorney John E. Arbab with the Department of Justice’s Environmental Crimes Section in Washington, D.C., aided by Assistant U.S. Attorney Anthony Mattivi, are in charge of the prosecution.
Justice Department Announces Resolution with Swiss Financial and Asset Management Firm Mirelis Holding S.A.Read the Press Release
The Department of Justice announced today that Swiss-based Mirelis Holding S.A. reached a resolution with the Tax Division.
“The agreement reached today demonstrates the Department’s resolve toward ending the practice of using Swiss bank accounts to evade one’s taxes,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The Department will continue to pursue culpable banks and asset management and investment advisory firms that assist U.S. clients in their concealment of assets and the evasion of their U.S. tax obligations.”
According to the terms of the non-prosecution agreement signed today, Mirelis Holding S.A. (formerly known as Mirelis InvestTrust S.A.) agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts, and pay $10.245 million to the United States, in return for the Department’s agreement not to prosecute this entity for tax-related criminal offenses.
Mirelis operated as a Geneva-based securities trading institution licensed by the Swiss Financial Market Supervisory Authority (“FINMA”). Mirelis was established in 1997 to provide independent portfolio and asset management services following the sale of a minority ownership interest held by Mirelis’s controlling family and associates in Société Bancaire Julius Baer S.A. After its establishment, Mirelis was initially permitted to offer its independent portfolio and asset management services to certain clients of the Geneva branch of Bank Julius Baer & Co. Ltd (which was formerly Société Bancaire Julius Baer S.A.) with whom the employees or officers of Mirelis had a previous relationship. The assets of clients who accepted the offer of Mirelis’s asset management services remained custodied at the Geneva branch of Bank Julius Baer & Co. Ltd. (“Julius Baer”), which has entered into a deferred prosecution agreement with the Department of Justice. In addition to providing services to individuals and entities based in Switzerland, at all relevant times, Mirelis provided custodial and independent portfolio and asset management services to U.S. taxpayer-clients.
At the end of 2012, Mirelis and Atlas Capital S.A. (“Atlas”), another securities trading institution based in Geneva licensed by FINMA, entered into a share purchase agreement, pursuant to which Mirelis acquired, and subsequently merged with Atlas effective in May of 2013. Mirelis continued to serve clients as both an independent asset manager and as a custodian until May of 2014 when Mirelis transferred its activities to Hyposwiss Private Bank Genève S.A. (“Hyposwiss”), a Swiss private bank that has entered into a non-prosecution agreement with the Department, pursuant to a reverse merger and acquisition of Hyposwiss by Mirelis.
During the Applicable Period, August 1, 2008, through December 31, 2014, the aggregate maximum balance of the assets under management of Mirelis’s U.S. taxpayer-clients was in 2008 and was approximately $315 million, consisting of both assets held in custody at Mirelis and assets held at third-party depository institutions. Mirelis provided custodial account services for approximately 177 U.S. Related Accounts and portfolio and asset management services to an additional approximately 95 U.S. Related Accounts that were custodied at third-party banks. Following the transfer of its activities to Hyposwiss in 2014, Mirelis ceased to conduct any of its former activities (including its provision of independent portfolio and asset management services and its custody of client assets) except for the custody of the accounts of 17 U.S. taxpayer-clients on a temporary basis prior to closure.
Since it began its operations, Mirelis was aware that its U.S. taxpayer-clients had a legal duty to report to the IRS, pay taxes on the basis of, all of the income, including income earned in accounts at Mirelis. Despite being aware of the obligations of its U.S. taxpayer-clients to report to the IRS and pay taxes on income earned in accounts maintained outside of the United States, Mirelis opened, maintained, and serviced accounts for U.S. taxpayer-clients where Mirelis knew or had reason to know that the U.S. taxpayer-clients were not complying with these obligations or were using their accounts outside of the United States to evade U.S. taxes and reporting requirements, filing false tax returns with the IRS, and/or concealing assets maintained outside of the United States from the IRS (hereinafter, “undeclared assets”).
On several occasions, Mirelis facilitated the concealment of U.S. taxpayer-clients’ undeclared accounts through the closure of accounts and transfer of account funds (in whole or in part and temporarily or permanently) to other accounts held at Mirelis where the named account holder and/or beneficial owner were not U.S. persons and may or may not have been related to the U.S. taxpayer-client.
On at least four occasions, in or about 2011 or 2012, Mirelis facilitated the introduction of U.S. taxpayer-clients to the Singapore-based representatives of a trust company, who advised the U.S. taxpayer-clients to create non-U.S. trusts and fund non-U.S. life insurance policies. Mirelis agreed to accept and effect the transfer of the funds held in the U.S. taxpayer-clients’ accounts pursuant to instructions despite knowing or having reason to know that these U.S. taxpayer-clients were likely to use the advice received from the trust company to conceal their ownership of undeclared assets. The funds were transferred to accounts at a third-party depository financial institution outside of Switzerland in the name of a non-U.S. life insurance company that had issued policies owned by the non-U.S. trusts created by Mirelis’s U.S. taxpayer-clients. Mirelis provided independent portfolio and asset management services for these accounts and listed the account holders and clients as the life insurance company. In all four instances, Mirelis believes that the U.S. taxpayer-clients subsequently entered into an offshore voluntary disclosure program (the “OVDP”) offered by the IRS.
In order to reduce the chances of undeclared accounts being discovered, Mirelis opened and falsely designated at least one account as a non-U.S. account when it knew the account holder was in fact a U.S. person. Prior to August 2008, Mirelis opened an account using the client’s U.S. passport. When this account was closed in 2009, the account holder withdrew all funds in cash. In 2010, Mirelis opened another account for the same client, but this time used the client’s non-U.S. passport. The account documents were completed without mention of the client’s U.S. citizenship, which was then known to Mirelis.
On at least five occasions, Mirelis effected the transfer of funds from one U.S. Related Account owned or beneficially owned by individual U.S. taxpayer-clients to other U.S. Related Accounts maintained at Mirelis owned by U.S. limited liability companies, which in turn were owned by U.S. trusts with U.S. beneficiaries. The accounts owned by the limited liability companies were all later closed and the custody of their funds transferred to another Swiss bank (a so-called Category 1 bank) while the independent portfolio and asset management services were provided by Mirelis Advisors, a wholly owned subsidiary that is a registered investment adviser with the SEC. Mirelis effected these transfers without knowing or checking whether the U.S. taxpayer-clients of the original accounts were compliant with their U.S. tax and reporting obligations.
In order to assist U.S. taxpayer-clients for whom Mirelis provided independent portfolio and asset management services, Mirelis agreed to accept custody of at least eight U.S. Related Accounts from Julius Baer, despite knowing that the beneficial owners of such accounts were U.S. taxpayers, that the accounts held undeclared assets, and that the accounts were being terminated by Julius Baer due to the U.S. taxpayer-client’s U.S. citizenship or residency. Mirelis agreed to accept these accounts at least in part on the assurances of its U.S. taxpayer-clients that they would enter into the OVDP. Mirelis’s Management Committee put in place a special policy for such accounts requiring the provision of IRS Forms W-9 and waivers of bank secrecy under the QI regime; however, in certain instances, the Form W-9 was not signed or the account did not hold U.S. securities. At least seven of the U.S. taxpayer-clients associated with these accounts ultimately entered into the OVDP.
Even after instituting a policy to only serve U.S. taxpayer-clients in full compliance with U.S. tax and securities laws in 2010, during a transition period of one year, Mirelis continued to provide both custodial and independent portfolio and asset management services to U.S. taxpayer-clients despite knowing or having reason to know that the U.S. taxpayer-clients were not in full compliance with their U.S. tax and information reporting obligations with respect to several accounts maintained at Mirelis and several accounts maintained at third-party banks.
The services provided by Mirelis to its clients also included a number of traditional Swiss banking services that Mirelis knew or had reason to know could and did in fact assist its U.S. taxpayer-clients in holding undeclared assets, including providing “hold-mail” services whereby Mirelis would hold all account correspondence and statements at its offices until physically retrieved by the client in Switzerland. In addition, Mirelis provided or assisted in the provision of “numbered” account services whereby the account holder’s name was replaced on all correspondence with just the account number or a code name even though Mirelis’s internal records would show the name and identity of the account holder. These services aided in reducing or eliminating paper trails and beneficial ownership information for undeclared accounts and assets of certain of Mirelis’s U.S. taxpayer-clients.
Mirelis also assisted in the establishment of trusts and entities (collectively, “structures”) for U.S. taxpayer-clients with both accounts maintained at Mirelis and accounts maintained at third-party depository financial institutions, in particular at a Category 1 Bank, by making referrals to known purveyors of such structures both within and outside of Switzerland. Mirelis knew or had reason to know that these purveyors often operated structures in contravention of corporate formalities and/or Mirelis’s own policies and procedures and that one purpose of these structures was to add an additional layer of nominal ownership to conceal the U.S. taxpayer-clients’ ownership of undeclared accounts.
With respect to at least 24 U.S. Related Accounts maintained by Mirelis, Mirelis obtained or accepted IRS Forms W-8BEN (or substitute self-certification forms) from these entity account holders that falsely indicated the beneficial owner of the undeclared account was the non-U.S. entity itself and not the U.S. taxpayer-client. These false Forms W-8BEN directly contradicted the Swiss Forms A that Mirelis obtained identifying the U.S. taxpayer-clients as the true beneficial owners of the accounts. Despite knowing that one of the purposes of these arrangements was to further conceal the ownership of undeclared accounts, Mirelis did not contest the claims made on the Forms W-8BEN or equivalent.
With respect to its asset management services to U.S. taxpayer-clients, Mirelis’s responsibility was solely to manage the investment of the assets of the external U.S. taxpayer-clients held on deposit at the third-party financial institutions. Those institutions undertook all other aspects of managing the client relationship, including the responsibility for procuring, updating, and maintaining all “know your customer” and anti-money laundering and terrorism financing information regarding account holder and beneficial owner.
Mirelis, in connection with the due diligence performed following the Atlas acquisition, learned, among other things, that Atlas provided hold mail and numbered account services, assisted in the establishment of structures for U.S. persons, accepted (or did not contest) false IRS Forms W-8BEN regarding the true beneficial ownership of the account; and opened at least 107 accounts in the names of Panamanian corporations in which the beneficial owners were U.S. persons. Most of those 107 accounts were established by one Swiss attorney.
Mirelis took remedial steps starting in 2011 with respect to its then-existing U.S. taxpayer-clients, including implementing a new cross-border policy in June 2011, encouraging clients to enter the OVDP, and shifting its declared clients to its then-newly SEC-registered subsidiary, Mirelis Advisors, S.A.
Mirelis submitted a letter of intent to participate as a Category 2 bank in the Department’s Swiss Bank Program in December 2013. Although it was ultimately determined that Mirelis was not eligible for the Swiss Bank Program due to its structure as both an asset management firm and a bank, Mirelis is required under today’s agreement to fully comply with the obligations imposed under the terms of that program. Mirelis has fully cooperated with the Department of Justice in this investigation, including undertaking a separate and thorough review of the provision of independent portfolio and asset management services to U.S. taxpayer-clients with accounts maintained at third-party depository financial institutions and encouraging a significant number of its remaining non-compliant U.S. taxpayer-clients to participate, or provide proof of prior participation, in OVDP covering many of the U.S. Related Accounts maintained by Mirelis during the Applicable Period.
While U.S. account holders at Mirelis who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased. Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. clients of Mirelis must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program. The IRS recently announced that the Offshore Voluntary Disclosure Program will close on September 28, 2018.
Principal Deputy Assistant Attorney General Zuckerman of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Principal Deputy Assistant Attorney General Zuckerman also thanked Trial Attorneys Charles M. Duffy and Henry C. Darmstadter, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis, and Attorney Kimberle E. Dodd.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jury Finds in Favor of ATF Agent in Civil SuitRead the Press Release
St. Louis, MO – A federal jury in St. Louis returned a verdict today in favor of a Bureau of Alcohol, Tobacco & Firearms (ATF) agent who was accused of using excessive force in shooting into a vehicle during an undercover operation in 2012. Myron Pollard of St. Louis was killed in the incident and his mother was seeking $6 million in damages from the agent and the United States. The case was tried before U.S. District Judge Stephen Limbaugh, Jr.
On August 29, 2012, Special Agent Bernard Hansen was part of an ATF Special Response Team undercover operation which was targeting subjects suspected of preparing a home invasion to rob the occupants of drugs and money. The SRT agents planned to arrest the subjects at the gathering point located near the intersection of Grand and Iron in the south city neighborhood of Holly Hills. As Special Agent Hansen emerged from the SRT truck to effect an arrest, one of the subjects, Dametrius Creighton, accelerated his Grand Prix in the direction of the special agent and the other members of the SRT team. Special Agent Hansen fired several times into the vehicle in an effort to stop it. One of the rounds fatally struck Myron Pollard who was riding in the front passenger seat of the Grand Prix. The Government argued that the agent’s use of deadly force was reasonable under all of the circumstances and the jury agreed. Creighton was convicted of conspiracy and firearms charges based on this incident and is serving a sentence at the federal prison facility in Marion, Illinois.
The case was tried by Karin Schute and Nicholas Llewellyn of the United States Attorney’s Office who were assisted by Stephen Brodsky who is an ATF area counsel.
Junction City Man Sentenced to 292 Months for Receiving Child PornographyRead the Press Release
LEXINGTON, Ky. – A Junction City man, Gene Paul Pendygraft, 46, has been sentenced to 292 months in federal prison, to be followed by a life term of supervised release, for knowingly receiving child pornography.
On Friday, United States District Judge Danny C. Reeves formally sentenced Pendygraft, who must serve 85 percent of his federal prison sentence.
Pendygraft previously admitted that, in November of 2016, he knowingly received images of child pornography on his laptop computer. A forensic examination of Pendygraft’s device revealed seven videos of child pornography, including some that depicted children under the age of 12 and some that depicted sadistic or masochistic conduct.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steve Igyarto, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI), and Rick Sanders, Commissioner, Kentucky State Police (KSP), jointly announced the sentence.
The investigation was conducted by HSI and the KSP. The United States was represented by Assistant United States Attorney David Marye.
Joplin Man Sentenced to 20 Years for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man and a Philippi, West Virginia, man were sentenced in federal court today for sexually abusing a child.
Ronald Lee Fields, 56, of Joplin, and Shannon Calhoun, 33, of Philippi, formerly of Joplin, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark. Fields was sentenced to 20 in federal prison without parole. Calhoun was sentenced to 30 years in federal prison without parole. The court also sentenced Fields and Calhoun to each spend the rest of his life on supervised release following incarceration.
Fields and Calhoun each pleaded guilty in November 2017 to one count of the sexual exploitation of a child.
Officers with the Southwest Missouri Cyber Crimes Task Force executed a search warrant at Fields’s residence on July 31, 2017, and seized various electronic devices, including a computer. Images of child pornography were found on those devices, which depicted Fields in a motel room with a child about five years old. Some photos depicted Fields and Calhoun sexually abusing the child. The photographs were taken at a variety of locations in Jasper and Newton Counties between April 20 and July 21, 2014.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crimes Task Force.
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."
Ingalls, Indiana fire chief faces federal child exploitation chargesRead the Press Release
Alleged to have had a sexual relationship with a 17 year old female under his supervision
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today that the former Fire Chief of Ingalls, Indiana has been charged with sexual exploitation of a child. Brian Cushman, 29, Ingalls, had his initial appearance in federal court last week and was released on GPS monitoring today.
“This office will not tolerate the sexual abuse of our children by those who are supposed to lead our children from positions of trust,” said Minkler. “Giving a child a learning opportunity, career guidance, or athletic training should not come at a cost of a child’s innocence.”
Indiana State Police received information from the Madison County Prosecutor’s Office that there were allegations of underage alcohol consumption and sexual misconduct at Cushman’s residence in Ingalls during a time when Cushman was the fire chief of the Ingalls Fire Department.
After interviewing several witnesses and victims, law enforcement officials determined that Cushman allegedly provided alcohol to Minor Victim 1 and another child. Police also learned that Cushman had sexual contact with Minor Victim 1 in the course of his employment with the Fire Department. Search warrants were obtained for Cushman’s residence and cell phone. Forensic examiners discovered sexually explicit images of Minor Victim 1 and Cushman on his cell phone dating back to January 2018.
This case was investigated by the FBI and the Indiana State Police.
“The sexual victimization of a child is a heinous crime,” said Indiana State Police Superintendent Doug Carter. “And in this particular case, it’s even worse the crime is alleged to have been committed by a public safety official that we encourage our youth to seek out when they need help.” Carter concluded, “I’m grateful to the dedicated state police forensic computer experts that were able to aid in the recovery of evidence of the alleged crimes.”
According to Assistant United States Attorney Kristina M. Korobov who is prosecuting this case for the government, Cushman could face up to 30 years imprisonment if convicted.
A criminal complaint is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit or harm children and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1.
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Illegal alien from Mexico arrested in Calcasieu Parish sentenced for illegally re-entering U.S.Read the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that an illegal alien from Mexico was sentenced Thursday to six months in prison for re-entering the United States after being deported.
Raul Delacruz-Valdez, 31, of Fresnillo, Zacatescas, Mexico, was sentenced by U.S. District Judge Dee D. Drell on one count of illegal re-entry of a previously deported alien. According to the March 13, 2018 guilty plea, Louisiana State Police conducted a traffic stop on Delacruz-Valdez’s vehicle on March 20, 2017 in Calcasieu Parish. He was arrested for suspicion of driving while intoxicated. After his arrest, law enforcement agents discovered that he was an illegal alien who had re-entered the United States without obtaining permission. He had previously been removed on October 18, 2010.
Homeland Security Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.