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Thursday 7 June 2018
Jamaican Indicted for Operating Telephone Scams Targeting Senior Citizens in the U.S.Read the Press Release
PITTSBURGH, PA – A Jamaican national has been indicted by a federal grand jury in Pittsburgh on charges of violating federal wire and mail fraud laws, United States Attorney Scott W. Brady announced today.
The seven-count indictment, returned on June 5, charged Kristoff Cain, age 22, of Jamaica, with one count of conspiracy to commit wire fraud, one count of mail fraud, and five counts of wire fraud.
“Kristoff Cain is charged with conducting a series of ‘Jamaican Lottery’ telephone scams targeting senior citizens in the United States. Cain and others called victims and, through misrepresentations such as telling the victim he or she needed to pay taxes on a lottery jackpot or by claiming to be a police officer, caused these victims to part with their hard-earned savings,” stated U.S. Attorney Brady. “The U.S. Attorney’s Office is committed to protecting all Pennsylvanians, especially seniors, from becoming victims of financial exploitation. As this indictment demonstrates, we will even go beyond borders to identify and bring to justice the perpetrators of fraud schemes. Thanks to the outstanding collaboration between federal and state law enforcement, including the Pennsylvania Attorney General, our seniors are safer today from these scams.”
“Kristoff Cain is in custody thanks to strong law enforcement collaboration with our federal and state partners,” Attorney General Josh Shapiro said. “Because of our cooperation, the international ringleader in a lottery scam that has stolen hundreds of thousands of dollars from seniors across our Commonwealth and the country has been federally indicted by U.S. Attorney Scott Brady’s office. We’re proud of the partnership and I applaud U.S. Attorney Brady for his outstanding leadership.”
According to the indictment, from in and around September 2013 to in and around April 2018, Cain and other individuals conspired to defraud victims in the United States by making false representations over the telephone. In some instances, members of the conspiracy falsely told victims that they had won large cash prizes in a lottery and needed to send money in order to pay taxes or other assessments on those prizes. In other instances, members of the conspiracy pretended to be law enforcement officers and instructed victims to send cash to specified addresses in connection with purported investigations involving their bank accounts. The indictment states that an unindicted co-conspirator, a Western Pennsylvania resident, received packages containing cash sent by some victims of the scheme, and wired more than $210,000 via MoneyGram and Western Union wire transactions to recipients in Jamaica and other foreign countries between September 2013 and December 2016.
As further described in the indictment, in December 2015, Cain contacted an 82-year-old victim in South Carolina, claiming to be an FBI agent named “Trooper Phillips” investigating purported discrepancies with the victim’s bank account. Cain’s false representations induced the victim to send a package containing $25,000 in cash to the Pittsburgh co-conspirator via UPS in connection with the purported investigation. After receiving the package, the Pittsburgh co-conspirator sent $8,000 in MoneyGram wire transactions to a member of the conspiracy in Jamaica.
“Elder fraud is a serious and growing threat,” said Special Agent in Charge Bob Johnson. "We understand how devastating these schemes can be, not just financially, but emotionally, mentally and even physically. The FBI urges people to check with law enforcement before sending money to anyone they don't know.”
“The U.S. Postal Inspection Service will continue to actively investigate fraudulent lottery schemes based in Jamaica directed at ripping off victims in the United States,” said Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service’s Pittsburgh Division. “Lottery scams tied to Jamaica are targeting victims in the United States, and we will not allow fraudsters to use the U.S. Mail to commit their crime.”
“Homeland Security Investigations and our state, local, and federal law enforcement partners are committed to investigate and bring to justice individuals perpetrating these lottery schemes,” said Special Agent in Charge Marlon V. Miller. “Fraud schemes, targeting vulnerable individuals within our communities, are simply appalling and will not be tolerated.”
Cain was arrested on a Pennsylvania state complaint in Fort Lauderdale, Florida, on April 21, 2018, after law enforcement learned he was visiting the United States. Cain was subsequently charged by criminal complaint in federal court on May 9, 2018. Cain is expected to make his initial appearance in Federal Court this week.
The law provides for a maximum total sentence of 140 years in prison, a fine of either $1,750,000 or an alternative amount depending on the victims’ losses, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the U.S. Postal Inspection Service, Homeland Security Investigations, and the Office of the Pennsylvania Attorney General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Sentenced for Unlawfully Re-Entering the United StatesRead the Press Release
Jackson, Miss. - Cristobal Marin-Lopez, 22, an illegal alien from Mexico, was sentenced today by U.S. District Judge Tom S. Lee to 15 months in prison, followed by three years of supervised release, for illegally re-entering the United States after having previously been deported, announced U.S. Attorney Mike Hurst and David D. Rivera, Director of the Bureau of Customs Enforcement (ICE) New Orleans Field Office.
On December 22, 2017, ICE agents arrested Cristobal Marin-Lopez after he lost control of a van on Highway 43 and Tom Coke Road, in Simpson County, Mississippi. ICE was contacted after witnesses to the accident reported seeing numerous individuals running into the woods fleeing the scene. Marin-Lopez admitted to law enforcement that he was traveling from Huston, Texas, with fourteen (14) illegal aliens that he was transporting to Alabama, in violation of Title 8, United States Code, §1326. It was further determined that Marin-Lopez was being paid $125.00 per alien to transport them from Houston, Texas, to Alabama.
This case was investigated by Deportation Officers with Immigration and Customs Enforcement Agency, and prosecuted by Assistant U.S. Attorneys Glenda R. Haynes.
Illegal Alien Previously Convicted of Drug Conspiracy Sentenced for Unlawfully Re-Entering United StatesRead the Press Release
Gulfport, Miss. – Eugenio Delgado-Rivera, 48, an illegal alien from Mexico, was sentenced on Tuesday, June 5, 2018, to 21 months in federal prison followed by three years of supervised release for unlawfully re-entering the United States as an alien previously convicted of an aggravated felony, announced U.S. Attorney Mike Hurst and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Delgado-Rivera was sentenced by U.S. District Judge Sul Ozerden, following his guilty plea and conviction on February 22, 2018. Delgado-Rivera pled guilty to unlawfully returning to the United States after being convicted of an aggravated felony. In 2007, he was convicted in the U.S. District Court for the Eastern District of North Carolina, for conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine. After imprisonment for his drug trafficking crime, he was removed from the United States in 2009.
After completion of his prison sentence, Delgado-Rivera will be subject to Department of Homeland Security removal proceedings. Thereafter, if he were to again unlawfully re-enter the U.S. during the 3-year period following his prison sentence, he would be subject to a separate, further penalty in addition to any other prosecution.
On December 28, 2017, a rented Nissan Altima that Delgado-Rivera was driving, was stopped by a member of the South Mississippi Metro Enforcement Team on Interstate-10 in Jackson County, Mississippi, for speeding in a construction zone. Delgado-Rivera did not have a driver’s license and provided a Mexican identification document with a different name. The U.S. Border Patrol was notified, and a Border Patrol Agent responded to the scene.
Delgado-Rivera admitted that he was illegally present in the United States. Official record checks revealed that he originally was ordered removed by a U.S. Immigration Judge, and had been physically removed from the United States on October 5, 2000. Thereafter, Delgado-Rivera unlawfully returned to the United States, and, was formally removed again in 2009, after serving time in federal prison for his 2007 drug trafficking conviction. Record checks also revealed that Delgado-Rivera had used, or been known by, over 10 different names during his time illegally present in the United States.
New Orleans Sector Border Patrol Chief Joseph Banco stated: "Our goal is to enhance border security in the Gulf Coast Region through our continue efforts with our federal, state and local law enforcement partners."
The case was investigated by the U.S. Department of Homeland Security, the U.S. Border Patrol, and the Gautier Police Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Houston Man Sentenced after Pleading Guilty to Drug ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that U. S. District Judge Eldon E. Fallon sentenced FRANK GARDNER, age 54, of Houston, Texas, to 48 months’ imprisonment and one year of supervised release after GARDNER pled guilty to conspiracy to distribute and possess with intent to distribute one hundred grams or more of cocaine hydrochloride.
According to court documents, on February 11 2015, Louisiana State Troopers conducted traffic stops on two vehicles in Hammond, Louisiana headed eastbound on Interstate 10. In one vehicle were two individuals, identified as Derrick Wesley and James Williams. Driving the second vehicle was an individual identified as Quardarell Robinson. All three individuals were from Florida. After issuing Wesley and Robinson, the drivers of the respective vehicles, traffic citations, the Troopers obtained probable cause to search both vehicles. Inside the vehicle driven by Wesley, Troopers found seven kilograms of cocaine hydrochloride and $47,990.00 in cash. Also in both vehicles were vehicle rental documents. The documents revealed that Robinson rented the vehicle driven by Wesley and that Wesley rented the vehicle driven by Robinson. After seizing the drugs and money, the Troopers arrested all three individuals.
Further investigation by Special Agents of the Drug Enforcement Administration revealed that Williams, Wesley and Robinson were returning from Houston, Texas where they met with GARDNER, who arranged the drug transaction. Agents also learned that GARDNER had arranged three prior cocaine transactions with Williams, Wesley, and Robinson.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant United States Attorneys André Jones and Nicholas D. Moses were in charge of the prosecution.
Honduran National Pleads Guilty to Illegal Reentry of a Removed AlienRead the Press Release
U.S. Attorney Duane A. Evans announced that JOSE MARTINEZ-OSWALDO, age 33, a citizen of Honduras, pleaded guilty today to a one-count Bill of Information for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to the court documents, MARTINEZ-OSWALDO was found in the United States on or about February 21, 2018, after having been previously removed on October 15, 2012.
At sentencing, MARTINEZ-OSWALDO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. Sentencing is set for July 12, 2018 before United States District Judge Jane Triche Milazzo.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.
Hilliard Man who Pretended to be Bounty Hunter & Federal Agent Pleads Guilty to Kidnapping, Other CrimesRead the Press Release
COLUMBUS, Ohio – Shane Ryan Hammond, 26, of Hilliard, Ohio, pleaded guilty in U.S. District Court to impersonating a federal agent, kidnapping, wire fraud and interstate transportation of a stolen vehicle.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Michael B. Stuart, United States Attorney for the Southern District of West Virginia, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered today before U.S. Magistrate Judge Norah McCann King.
According to court documents, from at least March 2016 until May 2017, Hammond owned and operated “Midwest Fugitive Task Force” located in Columbus. In this capacity, he was often referred to as Commander or Lieutenant Hammond and sought out employment opportunities as a bail recovery agent for himself and other employees.
Hammond was not actually licensed as a bounty hunter, nevertheless, on at least nine occasions, Hammond knowingly and unlawfully kidnapped a person for reward. All of these individuals were considered “bail skips” and Hammond had been hired by a bail bondsman in West Virginia to apprehend the individuals and return them to a designated jail facility for a monetary reward.
“Hammond would often dress in an all-black tactical uniform with a black ballistic vest,” U.S. Attorney Glassman said. “He typically carried multiple handguns, throwing knives, a Taser and usually one or two law-enforcement-style badges with ‘SWAT’ shoulder patches and a large back patch reading ‘AGENT.’ But he was absolutely not a federal agent – or a law enforcement officer of any kind.”
For example, in May 2017, Hammond kidnapped an individual outside of the individual’s grandmother’s home in Columbus. He pushed himself into the grandmother’s residence, heavily armed, and ran to the male individual with his AK47 up and pulled out his Taser (Hammond does not have any formal training with either of these weapons). He ordered the individual to the ground, kicked the individual’s drink and threatened the individual not to do “anything stupid” or he would get hurt.
As another example, when searching for a female in Canton, Ohio in September 2016, Hammond handcuffed the individual’s mother after forcibly entering the home and pointing a rifle at her. He indicated he was a Federal Bounty Hunter and told her she had the right to remain silent.
He then handcuffed the female’s father and said he was taking the father with him to help look for his daughter. Hammond reiterated that if the father did not go with him, he would take his wife to jail.
Hammond placed the handcuffed father into his vehicle and did not return him until the following morning – still in handcuffs. In fact, on the drive back, Hammond was pulled over for speeding and Hammond told the Trooper he was working for a federal agency.
Hammond routinely represented himself to others as a member of law enforcement, pretending to be a member of the FBI Joint Terrorism Task Force, working with Homeland Security, a SWAT officer and a federal agent, generally.
For example, in March 2017 in the Cincinnati area, Hammond told a female “you realize lying to a federal agent is a crime” and then, “don’t lie to a federal agent, that’s four years in jail.” He then added, “Don’t get an attitude. I’m just letting you know if I come back and I find out you’re involved I’m going to arrest you, you got me.” Making false statements to an official of the United States is actually a crime punishable by up to five years in prison.
In the same month, Hammond also visited an apartment complex in Jackson, Ohio and called one of the managers to explain that he had a warrant and was seeking a fugitive involved in the shooting of a Huntington, W.Va. police officer, although all of this statement was untrue. He told management he had called the Jackson Police and that the police would stay out of his way because he was a federal investigator and he knew what to do.
His false representations at the apartment complex led to the apartment management sharing H.U.D. files with Hammond and Hammond’s search of the apartment of an elderly female, to whom he identified himself as “Commander Hammond with the U.S. Government Fugitive Task Force.”
Hammond was charged by a Bill of Information in October 2017 and, in January 2018, failed to appear for his arraignment.
Through their efforts to locate Hammond, FBI agents uncovered additional criminal activity – namely, wire fraud and interstate transportation of a stolen vehicle.
Hammond devised a scheme to defraud investors of more than $48,000, telling investors he had secured a government contract for $79 million to provide physical security to the Norfolk Naval Base in Virginia. Hammond represented that he needed start-up money for the business and legal costs until he would receive the $79 million a few months later.
One investor also allowed Hammond to borrow his Chevrolet truck. Hammond then re-registered the truck into his own name, stole it and drove it to West Virginia, where he was later arrested.
He pleaded guilty to a Superseding Bill of Information, which included one count each of kidnapping, impersonating an agent of the United States and interstate transportation of a stolen vehicle, and two counts of wire fraud. Hammond also pleaded guilty to one additional count of kidnapping, as charged by the Southern District of West Virginia in a Bill of Information.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica W. Knight, who is representing the United States in this case.
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Hattiesburg Man Pleads Guilty to Possession with Intent to Distribute CocaineRead the Press Release
Hattiesburg, Miss. – John Foster, 42, of Hattiesburg, pled guilty yesterday before United States District Judge Keith Starrett to possession with intent to distribute cocaine, announced United States Attorney Mike Hurst and Assistant Special Agent in Charge J. Derryle Smith with the Drug Enforcement Administration.
On September 19, 2016, Foster sold 27.8 grams of cocaine to a confidential source. As a result, he was indicted for conspiracy and possession with intent to distribute cocaine.
Foster will be sentenced on September 18, 2018 by Judge Starrett, and faces a maximum penalty of 20 years in prison and a $1 million fine.
The case was investigated by the Drug Enforcement Administration with assistance from the Mississippi Bureau of Narcotics. The case is being prosecuted by Assistant United States Attorney Shundral H. Cole.
Hattiesburg Man Pleads Guilty to Methamphetamine ChargesRead the Press Release
Hattiesburg, Miss. – Roderick Simpson, 43, of Hattiesburg, pled guilty yesterday before U.S. District Judge Keith Starrett to possession with intent to distribute 50 grams or more of methamphetamine, announced United States Attorney Mike Hurst and Assistant Special Agent in Charge J. Derryle Smith with the Drug Enforcement Administration.
On October 10, 2016, Simpson sold 55.4 grams of methamphetamine to a confidential source. As a result, he was indicted for conspiracy and possession with intent to distribute methamphetamine.
Simpson will be sentenced on September 18, 2018 by Judge Starrett and faces a maximum penalty of life in prison and a $10 million fine.
The case was investigated by the Drug Enforcement Administration with assistance from the Mississippi Bureau of Narcotics. The case is being prosecuted by Assistant United States Attorney Shundral H. Cole.
Harrisburg Financial Services Consultant Sentenced to Prison for Causing $374,000 in Illegal Transfers to His Bank AccountsRead the Press Release
PITTSBURGH - A Pennsylvania resident has been sentenced in federal court to 41 months imprisonment followed by three years supervised release on his conviction of wire fraud and damaging a computer, United States Attorney Scott W. Brady announced today. Sullivan, Jr. was also ordered to pay $374,198.73 in restitution.
United States District Judge Cathy Bisson imposed the sentence yesterday on William Simon Sullivan, Jr., 45, Harrisburg, Pennsylvania.
According to information presented to the court, Sullivan worked as a consultant for Triangle Payroll Services, Inc. (TPS), a Pennsylvania corporation that provides clients with various financial services including payroll and tax escrow processing services. Using the software program CyberPay, TPS created daily batch files that were uploaded to a national financial services company. The batch files contained specific instructions regarding the transfers of funds for TPS clients. From January 12, 2013, and continuing to January 24, 2014, Sullivan executed a scheme to defraud TPS and its clients. Using his position as a consultant to TPS, his knowledge of the CyberPay software, and his remote access to TPS’s computer network, Sullivan fraudulently altered TPS’s daily batch files and caused more than $374,000 to be transferred via wire transfers from bank accounts of TPS and its clients to Sullivan’s personal bank accounts, without the knowledge, approval or authorization of TPS or its clients.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Sullivan, Jr.
Hannibal Couple Steals Identity of Nursing Home Patient, Goes ShoppingRead the Press Release
St. Louis - Brandon Williams, 33, and Laree Dunning, 30, both formerly of Hannibal, Missouri were indicted by a Grand Jury sitting in St. Louis today of mail fraud in association with a scheme to steal from a resident of the elder care facility at which they worked. Williams was the administrator of the Blessing Center of Edina, Missouri in 2016 when it is alleged he and his girlfriend Dunning stole the personally identifiable information of a resident there and applied for a credit card in the resident’s name. Soon after the card arrived at the elder care facility, the Indictment alleges the pair took and card and began making unauthorized purchases with the card.
If convicted, Williams and Dunning face up to 20 years’ imprisonment, a fine of up to $250,000 or both on the mail fraud count. Restitution to the victim is also mandatory. Additionally, Williams faces a minimum of two years’ imprisonment, consecutive to any term on the mail fraud count, for the aggravated identity count returned against him.
The case was investigated by the FBI – Kirksville, Missouri Resident Agency and the Edina (Missouri) Police Department. Tom Albus is handling the case for the U.S. Attorney’s Office.
"It is particularly egregious when people abuse their position of trust to take advantage of our most vulnerable," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "If there are other victims of this alleged crime, please contact the FBI."
The Department of Justice Elder Justice Initiative is dedicated to investigating and prosecuting financial crimes targeting older adults. The Eastern District of Missouri Identity Theft Task Force is a group of federal, state and local law enforcement agencies working together to combat identity theft and its related crimes across the St. Louis Community.
Glendale Man Sentenced to Prison for EmbezzlementRead the Press Release
PHOENIX – Yesterday, Senior U.S. District Judge James A. Teilborg sentenced David Dwight Reynolds, 30, of Glendale, Ariz., to 57 months in prison and three years of supervised release. The Court also ordered him to pay nearly $2.2 million in restitution. Reynolds had previously pleaded guilty to embezzlement.
Evidence showed that between 2013 and 2016, Reynolds in his capacity as an Information Technology (IT) network engineer for Swift Transportation Company used his position to embezzle millions of dollars. Reynolds did so by using a corporate credit card to make fraudulent purchases. Reynolds altered invoices to conceal his fraudulent purchases. Reynolds purchased IT equipment for personal use and had it shipped to his office at Swift. Eventually, Reynolds began purchasing personal items like cellphones, office furniture, televisions, cameras, computers, welding and manufacturing equipment, and gun accessories. Reynolds then had items shipped to his home. Reynolds also set up a shell company to fraudulently have payments made to the company. He had a debit card attached to the account and used the fraudulently diverted money to pay his personal credit card bills, his wife’s tuition, among other personal and family expenses. In total, Reynolds embezzled nearly $2.2 million. In addition, he failed to report the embezzled money on his taxes. Based upon unreported taxable income, he owed an income tax in the amount of $355,720.
“The defendant breached his position of trust to illicitly enrich himself and his family,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “Embezzlement may be a more refined way of stealing, but it is still stealing and a serious crime that our office will vigorously prosecute. We applaud the efforts of the IRS-Criminal Investigation and FBI in bringing this defendant to justice.”
“Reynolds orchestrated a sophisticated scheme to embezzle over $2 million from his employer then took steps to conceal his theft,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “We hope this investigation is a wake-up call to all businesses, whether large or small, to be sure they have precautions in place to prevent this from happening to them."
Corporate embezzlement causes serious harm to businesses, investors, and the overall economy. The FBI will continue to investigate and work with the United States Attorney's Office to prosecute those who steal or divert funds from their intended use," said Michael DeLeon, Special Agent in Charge of the FBI Phoenix Field Office.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation. The prosecution was handled by Kevin M. Rapp Assistant United States Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00764- JAT-PHX
RELEASE NUMBER: 2018-078_ Reynolds
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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.
Ghanaian National Sentenced for False Statements and Unlawful Attempt to Procure CitizenshipRead the Press Release
BOSTON - A Ghanaian national was sentenced today in federal court in Boston for making false statements in order to obtain citizenship and for attempting to procure citizenship.
Samer El-Sayed, 33, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years of supervised release with the first six months to be served on home confinement with electronic monitoring and a 7:00pm curfew. El-Sayed will be subject to deportation proceedings. In January 2018, El-Sayed was convicted by a federal jury of one count of willfully and knowingly making false statements; one count of making false statements under oath relative to naturalization, citizenship or alien registry; and one count of unlawful attempted procurement of citizenship or naturalization.
In June 2008, El-Sayed entered the United States on a non-immigrant visa. In February 2009, El-Sayed entered into a sham marriage with an 18-year-old United States citizen to whom he paid several thousand dollars. Thereafter, El-Sayed began filing various petitions and applications with the U.S. Citizenship and Immigration Services (USCIS) in order to obtain immigration benefits, and in March 2010, El-Sayed was granted conditional permanent resident status. In 2012, El-Sayed submitted false statements on a petition filed with USCIS and subsequently provided false statements under oath to USCIS during an interview that occurred in January 2014. Then, in May 2014, El-Sayed submitted an application for United States citizenship to USCIS and provided false information and statements in that application.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement. Assistant U.S. Attorney Suzanne Jacobus Sullivan of Lelling’s Major Crimes Unit prosecuted the case
Gang Member Sentenced for Methamphetamine and Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Chuck Mordecai Cumberland, age 31, of Waveland, was sentenced yesterday by U.S. District Judge Sul Ozerden to 39 months in federal prison, followed by 3 years supervised release, for possession of methamphetamine with intent to distribute and for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Cumberland also was ordered to pay a $5,000 fine.
Cumberland pled guilty on February 23, 2018. Yesterday’s sentence will run consecutive to Cumberland’s current sentence for which he is now in prison on an unrelated state conviction.
On July 27, 2016, Waveland police officers arrested Cumberland as a felon-in-possession of three handguns and related ammunition. Police also seized less than one ounce of marijuana, a paraphernalia pipe, and three pills of prescription pain killers for which Cumberland did not have a prescription. A member of the Simon City Royals Gang, Cumberland had been convicted of Felony Driving Under the Influence (DUI) by the Hancock County Circuit Court in February 2016. Cumberland had been on state supervision after serving a prison sentence for Felony DUI. After his arrest for being a felon in possession of a firearm, his state supervision was revoked and he was returned to state prison.
Thereafter, on January 26, 2017, after Cumberland’s release from the Mississippi Department of Corrections, Harrison County Sheriff’s Department deputies arrested Cumberland in the Saucier Community during an attempted narcotics transaction. Cumberland attempted to flee and, when caught by deputies, he was found with a loaded .38 caliber revolver, three plastic baggies of methamphetamine and a digital scale on his person. A fourth baggie of methamphetamine had fallen to the ground next to the vehicle Cumberland had been using. The Mississippi State Crime Lab determined that the four baggies contained a total weight of approximately 2.9 grams of methamphetamine.
The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Waveland Police Department and the Harrison County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Stan Harris.Fort Dodge Man Pleads Guilty to Meth and Firearm OffensesRead the Press Release
A man who conspired to distribute methamphetamine while possessing a firearm pled guilty June 6, 2018, in federal court in Sioux City.
Carl Douglas Lambert, Jr. 47, from Fort Dodge, Iowa, was convicted of one count of conspiracy to distribute methamphetamine, one count of distribution of methamphetamine and one count of possession of a firearm in furtherance of drug trafficking.
At the plea hearing, Lambert, Jr. admitted that from January 2017 through December 2017 he and others distributed over three pounds of pure methamphetamine in the Fort Dodge, Iowa area. On November 4, 2017, Lambert, Jr. possessed a .22 caliber pistol in his waistband and over 46 grams of methamphetamine. Lambert, Jr. admitted he intended to distribute the methamphetamine to other person(s) and that he carried the pistol for protection.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Lambert, Jr. remains in custody of the United States Marshal pending sentencing. Lambert, Jr. faces a mandatory minimum sentence of 10 years’ imprisonment, in addition to a consecutive 5 years’ mandatory minimum sentence of imprisonment on the firearm conviction, and a possible maximum sentence of life imprisonment, a $15,250,000 fine, and five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Fort Dodge Police Department, Webster County Sheriff’s Office, Iowa Division of Narcotics Enforcement and Iowa Department of Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3056. Follow us on Twitter @USAO_NDIA.
Former U.S. Senate Employee Indicted on False Statements ChargesRead the Press Release
WASHINGTON – A former staff employee of the Senate Select Committee on Intelligence (SSCI) has been indicted and arrested on charges of making false statements to special agents of the FBI during the course of an investigation into the unlawful disclosure of classified information, announced Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, and Timothy M. Dunham, Special Agent in Charge of the Counterintelligence Division of the FBI’s Washington Field Office.
James A. Wolfe, 57, of Ellicott City, Md., was indicted by a federal grand jury on three counts of violating Title 18, United States Code, Section 1001. At the time he made the alleged false statements to the FBI, Wolfe was Director of Security for the SSCI, a position he held for approximately 29 years. As SSCI Director of Security, Wolfe was entrusted with access to classified SECRET and TOP SECRET information provided by the Executive Branch, including the U.S. Intelligence Community, to the SSCI. In this position, Wolfe was responsible for safeguarding all classified information in the possession of the SSCI.
Wolfe is alleged to have lied to FBI agents in December 2017 about his repeated contacts with three reporters, including through his use of encrypted messaging applications. Wolfe is further alleged to have made false statements to the FBI about providing two reporters with non-public information related to the matters occurring before the SSCI.
“The Attorney General has stated that investigations and prosecutions of unauthorized disclosure of controlled information are a priority of the Department of Justice. The allegations in this indictment are doubly troubling as the false statements concern the unauthorized disclosure of sensitive and confidential information,” said Assistant Attorney General Demers. “Those entrusted with sensitive information must discharge their duties with honesty and integrity, and that includes telling the truth to law enforcement.”
“Mr. Wolfe’s alleged conduct is a betrayal of the extraordinary public trust that had been placed in him,” said U.S. Attorney Liu. “It is hoped that these charges will be a warning to those who might lie to law enforcement to the detriment of the United States.”
“All individuals in positions of trust must be held to the highest of standards, as the American public deserves no less,” said Special Agent in Charge Dunham. “As alleged in this indictment, Mr. Wolfe failed to meet those standards in his repeated lies to federal agents concerning the unauthorized disclosure of information. His arrest demonstrates that this conduct will not be tolerated, and those that engage in it will be held accountable.”
Wolfe was arrested on June 7, 2018, and is expected to make his first appearance Friday, June 8, in the U.S. District Court for the District of Maryland. The case is entitled United States v. James A. Wolfe, and the matter has been assigned to the Honorable Ketanji Brown Jackson in the U.S. District Court for the District of Columbia.
The charges in the indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The maximum penalty for each count of making a false statement to federal law enforcement agents is five years in prison. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes. The sentencing of the defendant, if he is later convicted, will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
The investigation into this matter is being conducted by the FBI’s Washington Field Office. The case is being prosecuted by Assistant U.S. Attorneys for the District of Columbia, with assistance from the Counterintelligence and Export Control Section, National Security Division of the U.S. Department of Justice.
Former Richland County Employee Pleads Guilty to Federal Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Senior United States District Judge Joseph F. Anderson sentenced James Anthony Brown Jr., a former employee of the Richland County Recreation Commission, to 135 months of incarceration as a result of his conviction for Possessing with Intent to Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
Evidence presented in court established that on the May 27, 2016, Richland County Sherriff’s deputies stopped Brown after deputies observed him retrieving a package, suspected of containing narcotics, from the front porch of an address in Columbia, S.C. After encountering Brown, deputies searched the package and found 11.9 pounds of marijuana. A subsequent search was done of Brown’s home and deputies found a second package with approximately 775 grams of methamphetamine (street value of approximately $20,000). This package was addressed to Brown and had the same return address as the previous package which contained the 11.9 pounds of marijuana. Additionally, deputies found more marijuana, drug paraphernalia, ecstasy and an assault rifle throughout Brown’s home.
The case was investigated by the Federal Bureau of Investigation, Richland County Sherriff’s Office, South Carolina Law Enforcement Division, and the South Carolina Attorney General’s Office. Assistant United States Attorneys Will Lewis and Alyssa Richardson of the Columbia office prosecuted the case.
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Former High-Ranking Louisiana Army National Guardsman Pleads Guilty to False StatementsRead the Press Release
U.S. Attorney Duane A. Evans announced that RANDY M. KILEY, SR. (“KILEY”), age 64, of Baton Rouge, Louisiana, former Sergeant Major in the Louisiana Army National Guard, pled guilty today to one count of making a false statement to the Louisiana Army National Guard.
According to court documents, KILEY misrepresented his marital status to the Louisiana Army National Guard to receive increased Basic Allowance for Housing and Family Separation Allowance pay. Specifically, KILEY knowingly submitted false documents to receive pay to which he was not entitled.
In or about July 2005, KILEY and his former spouse divorced and KILEY failed to immediately notify officials at the Louisiana Army National Guard of the change in his marital status as required. In or about November 2012, KILEY submitted forms requesting Basic Allowance for Housing and Family Separation Allowance pay and falsely claimed that he was either married or not divorced. Based on these misrepresentations, which KILEY knew to be false at the time, he received more Basic Allowance for Housing and Family Separation Allowance pay than he was entitled.
KILEY faces a possible sentence of up to five (5) years of imprisonment, a $250,000 fine, and/or three years of supervised release. KILEY will be sentenced on September 6, 2018 by United States District Court Judge Jane Triche Milazzo.
U.S. Attorney Duane A. Evans praised the work of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans is in charge of the prosecution.
Former Harris County Deputy Sentenced on Federal Child Pornography ChargesRead the Press Release
HOUSTON – A 31-year-old former law enforcement official has been ordered to federal prison for more than 27 years following his convictions of production and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Andrew Craig Sustaita, of Spring, pleaded guilty as charged March 15, 2018. He was previously a Harris County deputy sheriff at the time of the offense, but is no longer employed there.
Today, U.S. District Judge Sim Lake sentenced Sustaita to 240 and 87 months for the production and possession convictions, respectively. The sentences will run consecutively for a total 327-month term of imprisonment. Additional information was also presented today, including a victim impact statement presented by victim’s mother in the production count. She detailed how Sustaita’s acts have victimized her daughter/family/friends and that what has happened to them encompasses the true meaning of the term evil. In handing down the sentence, the court noted that this was one of the most disturbing cases over which he had presided. Sustaita will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
There were 70 known series of child pornography identified on Sustaita’s devices. The court granted the government 90 days to determine if any of those victims are seeking restitution.
At the time of his plea, Sustaita admitted he posted child erotica images to a known child pornography website and had commented on other similar images on that same site. The investigation led to Sustaita whose online presence included a pay-to-play bestiality website. Further information presented to the court included discussions of the amount and types of images authorities have discovered on two devices attributable to Sustaita. Other images contain Sustaita’s genitalia placed on or near the identified young female victim’s head while she appears to be sleeping and others that include Sustaita attempting to expose that child’s genitalia.
Further investigation led to the discovery of the identified victim’s images on a computer in Milwaukee, Wisconsin. It was learned that Sustaita had distributed the images via the internet.
A U.S. magistrate judge had previously ordered Sustaita into custody after finding him to be a danger to the community and a risk of flight. He has remained in custody since that time and will continue to do so pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Harris County Sheriff’s Office and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which 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."
Former GTTF Baltimore City Sergeant Sentenced to 25 Years in Prison for Racketeering, Robberies, Overtime Fraud and Planting EvidenceRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Sergeant Wayne Earl Jenkins, age 37, of Middle River, Maryland today to 25 years in federal prison, followed by 3 years of supervised release, for one count of racketeering conspiracy, one count of racketeering, two counts of robbery, one count of destruction, alteration, or falsification of records in a federal investigation, and four counts of deprivation of rights under color of law.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Jenkins joined the Baltimore Police Department (BPD) on February 20, 2003 and was promoted to Sergeant on November 20, 2013. On June 13, 2016, Jenkins became the Officer in Charge of the Gun Trace Task Force (GTTF,) a specialized unit within the Operational Investigation Division of the BPD. According to the plea agreement, Jenkins schemed to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Jenkins prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that Jenkins and his co-conspirators had stolen money, property, and narcotics from individuals.
According to his plea agreement, Jenkins admitted that he participated in seven separate robberies between May 2011 and August 2016. Jenkins also stole dirt bikes from individuals who were riding them illegally on city streets and then sold them through an associate.
In addition to the robberies, Jenkins also admitted to stealing 4-5 boxes, containing approximately 12 pounds, of high-grade marijuana that had been intercepted by law enforcement from the U.S. mail, as well as prescription medicines that he had stolen from someone looting a pharmacy during the April 2015 riots. Jenkins admitted he gave D.S. drugs he stole from detainees and arrestees, including cocaine, marijuana and heroin. D.S. was able to sell the drugs and shared the proceeds with Jenkins. In total, D.S. paid Jenkins $200,000 to $250,000 of drug proceeds.
In an effort to conceal his true identity, Jenkins told detainees and arrestees that he was a federal task force officer, which he was not, and told his co-defendants to identify him as the U.S. Attorney.
Jenkins admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct. Jenkins learned that Gondo and Rayam were under investigation from other BPD officers, then shared this information with his co-defendants. When Jenkins, Gondo, Hendrix, Hersl, Rayam, Taylor and Ward were detained in the Howard County Detention Center, Jenkins directed the defendants to “keep their mouths shut” and “stick to the story,” or words to that effect, in an effort to obstruct justice.
Jenkins has also pleaded guilty to planting evidence and authoring a false police report which resulted in the conviction and imprisonment of two Baltimore City men in 2010.
According to the plea agreement, Jenkins admitted that he routinely submitted false and fraudulent individual overtime reports, thereby defrauding the Baltimore Police Department and the citizens of the State of Maryland. On these reports, Jenkins falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours. Jenkins also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted these Organized Crime Drug Enforcement Task Force cases.
Former Employee of Insurance Company Pleads Guilty to $300,000 Phony Refund Check Scheme and Tax EvasionRead the Press Release
NEWARK, N.J. – A Hunterdon County, New Jersey, woman today admitted stealing outstanding customer refund checks and failing to report that income on her individual tax returns, U.S. Attorney Craig Carpenito announced.
Salomé Woolford, 49, of Lebanon, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with one count of conspiracy to commit wire fraud and one count of filing a false income tax return.
According to documents filed in this case and statements made in court:
Between May 2014 and April 2015, while working as a customer service representative for the victim company, Woolford and other employees devised a scheme to steal money by identifying outstanding refund checks that had not yet been cashed. Woolford and others then accessed the accounts for those customers in the victim company’s computer system, electronically changed the payee information to that of one of their associates and requested new checks.
As a result, the victim company reissued the refund checks in the name of the new payees. Once the checks had been received and cashed, Woolford and others changed the payee information back to the original customers’ information to conceal the fraud. As a result of the scheme, the victim company suffered losses of at least $300,000.
Woolford failed to report the money she received as part of the scheme on her tax returns for years 2013 through 2015.
The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The false tax filing charge carries a maximum potential penalty of three years in prison and a $250,000 fine. As part of her plea agreement, Woolford must also pay restitution to the victim company. Sentencing is scheduled for Oct. 17, 2018.U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Judy Ramos, and special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Keith Hirschorn Esq., Hoboken, New Jersey
Former Defense Contractor Sentenced to Six Years in Prison for Engaging in Commercial Sex with a Minor in the PhilippinesRead the Press Release
A U.S. citizen was sentenced to 72 months in prison for paying a 14-year-old girl for sex on multiple occasions in 2007.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., Special Agent in Charge Tracy Corimer of HSI St. Paul, Minnesota and Attaché Ransom J. Avilla of HSI Manila, Philippines made the announcement.
On April 19, James Marvin Reed, 62, pleaded guilty to engaging in illicit sexual conduct in a foreign place. According to court documents, from in or about September 2007 until in or about December 2007, Reed, then 52 years old, engaged in commercial sexual intercourse on multiple occasions with the then 14-year-old victim, and impregnated her, while he was working in the Philippines as a contractor for the U.S. Department of Defense. In 2016, he was arrested by Philippine authorities and returned to the United States for prosecution.
Senior U.S. District Judge Donovan Frank for the District of Minnesota sentenced Reed to serve 72 months in prison followed by 15 years of supervised release, and ordered Reed to pay $6,000 in restitution to the victim in the case.
The case was investigated by HSI. Trial Attorneys Ralph Paradiso and James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case. CEOS Trial Attorney Kathryn Furtado also served as a vital member of the prosecution team at earlier stages of the litigation. The U.S. Attorney’s Office for the District of Minnesota also provided substantial assistance in this prosecution.
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.
Former City of Hampton Employee Sentenced for Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A former City of Hampton employee was sentenced today to 16 years in prison and a lifetime of supervised release for distribution of child pornography.
According to court documents, Robert Dobbins, 36, of Hampton, was discovered after federal law enforcement received information from a foreign law enforcement agency regarding the user “DEATHLYROSE55” on Website A. In September 2017, the user responded to a foreign law enforcement officer working in an undercover capacity and indicated that he had committed a hands on offense against a child. He also sent the investigator a mega link, which contained child pornography. Law enforcement linked the email address to a residence in Hampton, and determined that Dobbins was previously convicted of receipt and possession of child pornography in January 2005, while he was employed by the U.S. Navy.
During the execution of a federal search warrant, Dobbins, who at the time was a city of Hampton employee, acknowledged accessing child pornography from his city-issued Samsung smartphone using the internet. Dobbins admitted to agents that he cut and pasted photographs from Facebook of his friends’ daughters and re-posted them on his Website A account, “DEATHLYROSE55.” Dobbins also stated that he “traded” links to child pornography images and videos with other individuals who he met online utilizing Website A.
This case is 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 and click on the tab “resources” for more information about Internet safety education.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Megan M. Cowles prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-129.
Former Chief Executive Officer of Health Care Company Charged with Giving Kickbacks to Pill Mill Doctor, Health Care Fraud, and Money LaunderingRead the Press Release
Montgomery, Ala. – On Thursday, June 7, 2018, a William “Ed” Henry, 47, of Hartselle, Alabama, was arrested on charges stemming from his role in a medical kickback scheme, announced United States Attorney Louis V. Franklin, Sr.
According to court documents, from 2015 through 2017, Henry was an owner of a health care company, MyPractice24, Inc. (MyPractice24). During some of that time, Henry also served as the company’s chief executive officer (CEO). MyPractice24 provided non-face-to-face chronic care management services to Medicare beneficiaries who had two or more chronic conditions. The company did so pursuant to contracts into which it entered with primary care physicians. Under those contracts, the doctors would pay Henry’s company to provide these chronic care management services to the doctors’ patients, the company would provide the services, the doctors would bill Medicare for the services, and then the doctors would pay Henry’s company a share of the reimbursements received from Medicare.
The indictment alleges that in 2016, Henry entered into an agreement with Dr. Gilberto Sanchez, a Montgomery physician who has subsequently pleaded guilty to drug distribution, health care fraud, and money laundering charges. Under that agreement, MyPractice24 would provide various kickbacks to Dr. Sanchez and his staff in return for the providers at Dr. Sanchez’s practice referring Medicare beneficiaries to MyPractice24 for chronic care management services. Among the kickbacks provided were direct payments to a member of the staff, free chronic care management services, free medical billing services, and free clinical services unrelated to the provision of chronic care management services. Additionally, Henry assisted Dr. Sanchez in paying kickbacks to patients who enrolled in the chronic care management program. Dr. Sanchez paid these kickbacks by systematically waiving copays—copays which Medicare required Dr. Sanchez to collect.
The indictment charges Henry with one count of conspiring to pay kickbacks and to defraud the United States. It then alleges six counts of paying unlawful kickbacks—each count is based on a different type of kickback Henry paid to Dr. Sanchez and those who worked at Dr. Sanchez’s practice. Next, the indictment charges Henry with one count of conspiring to commit health care fraud and five counts of health care fraud. Those counts are based on Henry’s assisting Dr. Sanchez in unlawfully waiving copay obligations and then failing to report the copay waivers to Medicare. Last, the indictment alleges that Henry conspired to commit money laundering. The money laundering charge results from Henry’s using the proceeds of health care fraud to make payments to Dr. Sanchez’s staff members.
If convicted of the most serious offense, Henry faces a maximum sentence of 10 years in prison, significant monetary penalties, asset forfeiture, and restitution.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Department of Health and Human Services – Office of Inspector General, the Drug Enforcement Administration’s Tactical Diversion Squad, and the Internal Revenue Service’s Criminal Investigation Division. The Montgomery County Sheriff’s Office, the Alabama Board of Medical Examiners, the Montgomery Police Department, and the Opelika Police Department assisted in the investigation. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Former Charity Executive Pleads Guilty to Bribery and Embezzlement SchemeRead the Press Release
A former executive of a Springfield, Missouri charity, who was also an Arkansas lobbyist, pleaded guilty in federal court today to bribing Arkansas elected officials in a multi-million-dollar scheme, and then along with other charity executives, embezzling millions of dollars from the Springfield health care organization.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Timothy A. Garrison for the Western District of Missouri made the announcement.
Milton Russell Cranford, aka “Rusty,” 57, of Rogers, Arkansas, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of federal program bribery. Cranford was an executive at Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a nonprofit corporation headquartered in Springfield, and oversaw the charity’s operations and lobbying efforts in the state of Arkansas. Cranford also operated three lobbying firms: The Cranford Coalition, The Capital Hill Coalition and Outcomes of Arkansas.
By pleading guilty today, Cranford admitted that he and other Preferred Family Healthcare executives paid bribes to Arkansas State Senator Jonathan Woods, Arkansas State legislator Henry Wilkins IV, a person identified in court documents as “Arkansas Senator A,” and others, to provide favorable legislative action for Cranford, his clients, and Preferred Family Healthcare. In exchange for the bribes paid by Cranford, the officials identified in the Information steered Arkansas General Improvement Fund (GIF) money to Preferred Family Healthcare and other Cranford clients; held up agency budgets; requested legislative audits; and sponsored, filed and voted for legislative bills that favored the charity and Cranford clients.
The additional income gained by Preferred Family Healthcare from Cranford’s bribes enabled Cranford and other executives of the charity to engage in multiple schemes to embezzle, steal, and unjustly enrich themselves at the expense of the charity, including, but not limited to, diverting charity funds to for-profit companies owned by the executives, causing the charity to make rental payments to properties owned by Cranford and the executives; paying for their personal expenses using corporate credit cards; and causing the charity to lend significant funds to Cranford personally, and to for-profit companies owned by other charity executives. The executives also caused the charity to misapply its funds for unlawful contributions to the campaigns of elected public officials and causing the charity to spend substantial amounts of funds on lobbying and political advocacy.
In addition, Cranford entered into an illegal kickback scheme whereby Cranford paid over $600,000 in illegal kickbacks to a charity executive in exchange for more than $3.5 million in payments made to The Cranford Coalition. Cranford also acknowledged his role in a second illegal kickback scheme involving the charity’s contract with Philadelphia, Pennsylvania-based political operative Donald Andrew Jones, also known as “D.A.” Jones, and another charity employee, former Arkansas State Representative Eddie Wayne Cooper. In exchange for Cranford’s role in facilitating the charity’s contract with Jones for lobbying and political advocacy, under which the charity paid Jones almost $1 million, Cranford received kickbacks totaling $219,000 from Jones, $18,000 of which Cranford provided to Cooper, and Cooper received another $45,000 directly from Jones. In separate but related cases, both Jones and Cooper previously entered guilty pleas acknowledging their roles in that kickback scheme.
A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case was investigated by IRS-Criminal Investigation, the FBI and the Offices of the Inspectors General from the Departments of Labor, Health and Human Services, Housing and Urban Development, Veterans Affairs, and the Federal Deposit Insurance Corporation. This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas, and the Eastern District of Pennsylvania. This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Missouri and Trial Attorneys Marco A. Palmieri and Sean F. Mulryne of the Criminal Division’s Public Integrity Section.
Former Charity Executive Pleads Guilty to Bribery and Embezzlement SchemeRead the Press Release
SPRINGFIELD, Mo. – A former executive of a Springfield, Missouri charity, who was also an Arkansas lobbyist, pleaded guilty in federal court today to bribing Arkansas elected officials in a multi-million-dollar scheme, and then along with other charity executives, embezzling millions of dollars from the Springfield health care organization.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Tim Garrison for the Western District of Missouri made the announcement.
Milton Russell Cranford, aka “Rusty,” 57, of Rogers, Arkansas, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of federal program bribery. Cranford was an executive at Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a nonprofit corporation headquartered in Springfield, and oversaw the charity’s operations and lobbying efforts in the state of Arkansas. Cranford also operated three lobbying firms: The Cranford Coalition, The Capital Hill Coalition and Outcomes of Arkansas.
By pleading guilty today, Cranford admitted that he and other Preferred Family Healthcare executives paid bribes to Arkansas State Senator Jonathan Woods, Arkansas State legislator Henry Wilkins IV, a person identified in court documents as “Arkansas Senator A,” and others, to provide favorable legislative action for Cranford, his clients, and Preferred Family Healthcare. In exchange for the bribes paid by Cranford, the officials identified in the Information steered Arkansas General Improvement Fund (GIF) money to Preferred Family Healthcare and other Cranford clients; held up agency budgets; requested legislative audits; and sponsored, filed and voted for legislative bills that favored the charity and Cranford clients.
The additional income gained by Preferred Family Healthcare from Cranford’s bribes enabled Cranford and other executives of the charity to engage in multiple schemes to embezzle, steal, and unjustly enrich themselves at the expense of the charity, including, but not limited to, diverting charity funds to for-profit companies owned by the executives, causing the charity to make rental payments to properties owned by Cranford and the executives; paying for their personal expenses using corporate credit cards; and causing the charity to lend significant funds to Cranford personally, and to for-profit companies owned by other charity executives. The executives also caused the charity to misapply its funds for unlawful contributions to the campaigns of elected public officials and causing the charity to spend substantial amounts of funds on lobbying and political advocacy.
In addition, Cranford entered into an illegal kickback scheme whereby Cranford paid over $600,000 in illegal kickbacks to a charity executive in exchange for more than $3.5 million in payments made to The Cranford Coalition. Cranford also acknowledged his role in a second illegal kickback scheme involving the charity’s contract with Philadelphia, Pennsylvania-based political operative Donald Andrew Jones, also known as “D.A.” Jones, and another charity employee, former Arkansas State Representative Eddie Wayne Cooper. In exchange for Cranford’s role in facilitating the charity’s contract with Jones for lobbying and political advocacy, under which the charity paid Jones almost $1 million, Cranford received kickbacks totaling $219,000 from Jones, $18,000 of which Cranford provided to Cooper, and Cooper received another $45,000 directly from Jones. In separate but related cases, both Jones and Cooper previously entered guilty pleas acknowledging their roles in that kickback scheme.
A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case was investigated by IRS-Criminal Investigation, the FBI and the Offices of the Inspectors General from the Departments of Labor, Health and Human Services, Housing and Urban Development, Veterans Affairs, and the Federal Deposit Insurance Corporation. This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas, and the Eastern District of Pennsylvania. This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Missouri and Trial Attorneys Marco A. Palmieri and Sean F. Mulryne of the Criminal Division’s Public Integrity Section.
Former Canadian County Jailer Sentenced to Weekend Incarceration for Violating Civil Rights of Pretrial DetaineeRead the Press Release
OKLAHOMA CITY – JASON BARBER, 42, of Bethany, Oklahoma, was sentenced today to serve a total of 30 days in prison during a one-year term of probation for his use of excessive force against a pretrial detainee, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On October 31, 2017, the United States filed an information charging Barber with a criminal civil rights offense stemming from his conduct as a ranking Lieutenant and Correctional Officer at the Canadian County Jail in El Reno, Oklahoma in 2014. On December 23, 2014, according to the information, L.T. was an individual held at the jail after an arrest but before conviction of a crime. The information alleges that Barber willfully deprived L.T. of his constitutional right to due process of law when he struck L.T. during a disciplinary hearing. Because Barber was acting under color of law, his unreasonable use of force violated federal criminal law. In the absence of bodily injury, the offense was a misdemeanor, punishable by up to one year in prison. On November 16, 2017, Barber pleaded guilty to the misdemeanor charge in the information.
At today’s hearing, United States Magistrate Judge Shon T. Erwin sentenced Barber to one year of probation, with a total of 30 days during weekends to be spent in the custody of the Federal Bureau of Prisons ("BOP"). Beginning on Friday, August 10, Barber will spend weekends at a BOP facility until he serves a total of 30 days’ incarceration. Judge Erwin ordered Barber not to possess a firearm during the one-year probationary term, and further ordered Barber to submit to anger management counseling as determined by the United States Probation Office.
This case was the result of an investigation by the Federal Bureau of Investigation and the Investigations Division of the Canadian County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Julia E. Barry. Reference is made to court records for further information.
Former Branch Manager Embezzled Funds from Beaver Falls BankRead the Press Release
PITTSBURGH, PA - A resident of Beaver Falls, Pennsylvania, pleaded guilty in federal court to a charge of embezzlement by a bank employee, United States Attorney Scott W. Brady announced today.
Robin Chiappetta, age 63, pleaded guilty to one count before United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that Chiappetta, who was employed as an Assistant Branch Manager at First National Bank, located at 1703 Seventh Avenue in Beaver Falls, embezzled funds belonging to and entrusted to the custody and care of the bank, resulting in a loss of $20,513.80.
Judge Ambrose scheduled sentencing for October 9, 2018 at 11 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Robin Chiappetta.
Former Baltimore City GTTF Police Officer Sentenced to 18 Years in Prison for RacketeeringRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced former Detective Marcus Roosevelt Taylor, age 30, of Glen Burnie, Maryland today to 18 years in prison, followed by 3 years of supervised release for racketeering conspiracy and racketeering offenses, including robbery and overtime fraud.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Taylor and co-conspirator Detective Daniel Thomas Hersl, age 47, of Joppa, Maryland were convicted by a federal jury on February 12, 2018 for racketeering conspiracy, racketeering, and Hobbs Act Robbery.
According to evidence presented at the three-week trial, former detectives Hersl and Taylor stole money, property, and narcotics from victims, some of whom had not committed crimes; swore out false affidavits; submitted false official incident reports; and engaged in large-scale overtime and attendance fraud.
In some cases, there was no evidence of criminal conduct by the victims and the officers stole money that had been earned lawfully. In other instances, narcotics and firearms were recovered from arrestees. In several instances, the defendants did not file any police reports. The amounts stolen ranged from $200 to $200,000.
It was proven at trial that Hersl and Taylor stole money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, the defendants prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents.
Hersl is scheduled to be sentenced by Judge Blake on June 22, 2018.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted these Organized Crime Drug Enforcement Task Force cases.
Former Attorney Sentenced to 15 Years’ Imprisonment for Conspiring to Transport 1,500 Kilograms of Cocaine on Private JetRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Todd Macaluso, a former attorney, was sentenced by United States District Judge I. Leo Glasser to 15 years’ imprisonment, following his November 2017 jury trial conviction for participating in an international cocaine distribution conspiracy. Macaluso was also ordered by the court to pay a $10,000 fine.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Robert F. Lasky, Special Agent-in-Charge, Federal Bureau of Investigation, Miami Field Office (FBI); Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division; James P. O’Neill, Commissioner, New York City Police Department (NYPD); and George P. Beach, Superintendent, New York State Police (NYSP), announced the sentence.
“Todd Macaluso orchestrated a scheme with drug cartel members to smuggle 1,500 kilograms of cocaine worth tens of millions of dollars from Ecuador to Honduras in his private jet for ultimate distribution here in the United States,” stated United States Attorney Donoghue. “Today’s sentence puts international drug traffickers and their associates on notice that we will bring the full weight of the law to bear on those that play any role in bringing dangerous drugs into our communities.”
“There is no doubt that Macaluso was driven by greed when he decided to transport 1,500 kilograms of cocaine in his private jet,” stated FBI Special Agent-in-Charge Lasky. “Instead of profiting from this poison, his illicit career was brought to an abrupt end through close cooperation with our law enforcement partners.”
“Macaluso’s illegal actions are indicative of his ignorance in knowing the law. And, this sentencing shows that there is no difference if you are a drug dealer, pilot or attorney when you have been arrested and convicted on federal drug charges,” stated DEA Special Agent-in-Charge Hunt. “This sentencing is a result of hard work by multiple law enforcement agencies at a local, federal and international level.”
“Macaluso’s crime is made even more egregious by the fact that he knew the law better than most as a former attorney, and yet chose to participate in an international conspiracy to distribute cocaine,” stated HSI Special Agent-in-Charge Melendez. “HSI used its multifaceted investigative authorities with its partners to pursue and dismantle this drug trafficking operation, in the process showing that no individual is above the law.”
“Today’s sentencing proves again that our multi-agency, multi-jurisdictional partnerships have a very long reach,” stated NYPD Police Commissioner O’Neill. “When a crime is committed, particularly one of this size and scope, we are relentless in bringing those responsible to justice.”
“This individual is someone who was sworn to uphold the law and conspired to break it,” stated NYSP Superintendent Beach. “I applaud our law enforcement officials at all levels for their strong police work in this case and for their continued dedication to preventing the trafficking of cocaine and other harmful narcotics within our communities. The culmination of this investigation and the disruption of this international illegal drug trafficking operation sends a clear message that we will find and punish the people who are responsible for putting these illegal substances in the hands of our youth and others.”
The evidence at trial established that in exchange for $200,000 Macaluso agreed with members of an international drug cartel to provide and pilot a private Falcon 10 airplane to transport 1,500 kilograms of cocaine worth tens of millions of dollars from Ecuador to Honduras, where the cocaine would be sold to Mexican drug traffickers and then imported into the United States. In furtherance of the scheme, Macaluso met repeatedly with drug traffickers in Tijuana, Mexico. On November 2016, Macaluso flew his jet to Haiti, met with the drug traffickers and agreed to transport the cocaine the following day. However, before Macaluso could transport the drugs, he was arrested and extradited to the United States for prosecution.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Ryan C. Harris, Hiral D. Mehta and Keith D. Edelman are in charge of the prosecution.
The Defendant:
TODD MACALUSO
Age: 55
Residence: San Diego, CaliforniaE.D.N.Y. Docket No. 16-CR-609
Fitzgerald Man Convicted of Possession of CocaineRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on June 6, 2018, a jury convicted 42-year-old Patrick Leigh Burnham of Fitzgerald, Georgia of Possession of Cocaine and Possession of Cocaine Base occurring on July 20, 2017 at 128 Jacksonville Highway in Fitzgerald. Each offense carries a maximum possible term of incarceration of three (3) years and a fine in the range of $5000 to $250,000.
This case was investigated by the Ben Hill County Sheriff’s Office. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Federal Jury Convicts Webster County Woman of Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Webster County woman was convicted yesterday following a two-day trial, announced United States Attorney Mike Stuart. The jury convicted Jaclyn Burkholder, 30, of conspiring to distribute methamphetamine between January and February 2017, returning its verdict late yesterday evening. The investigation was conducted by the Metropolitan Drug Enforcement Network Team (MDENT), with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Burkholder was the final nail in the coffin,” said United States Attorney Mike Stuart. “This meth ring of dealers that wrought havoc in our communities and among our people has been shut down. I applaud the excellent work of Assistant United States Attorneys Haley Bunn and Eric Bacaj and the rest of my team, as well as the investigators in this case.”
Jaclyn Burkholder is the sixth person to be convicted of distributing methamphetamine in related cases. Burkholder, along with Quinton Funk, Carl Clark, and Jamie Harmon, brought approximately four kilograms of crystal methamphetamine from Atlanta to Charleston. On January 12, 2017, officers with MDENT executed a search warrant at a hotel room and found over 130 grams of methamphetamine, scales, baggies, and a gun. The methamphetamine was part of the approximately four kilograms Burkholder and others brought back from Atlanta, and it was lab-tested and confirmed to be over 90% pure.
Burkholder faces a possible sentence of up to 20 years in prison when she is sentenced on August 30, 2018. Assistant United States Attorneys Eric Bacaj and Haley Bunn represented the government during the trial. United States District Judge Joseph R. Goodwin presided over the trial.
Five other defendants involved in this methamphetamine conspiracy have been sentenced to federal prison. Quinton Funk, of Webster Springs, was sentenced to 21 years and 10 months in prison for conspiracy to distribute methamphetamine. Carl Clark, of South Charleston, was sentenced to 135 months in prison for distributing methamphetamine. Jamie Harmon, of South Charleston, was sentenced to 8 years for distributing methamphetamine. Christopher Carte, of St. Albans, was sentenced to three years in prison for conspiracy to distribute methamphetamine. Holly Doub, of South Charleston, was sentenced to five days in federal prison for aiding and abetting the distribution of methamphetamine.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###Federal Grand Jury IndictmentRead the Press Release
United States Attorney Sherri A. Lydon stated today that a Federal Grand Jury in Columbia, South Carolina, returned an indictment against the following:
Conway Man Charged in Federal Indictment for Gun and Drug Charges. Eron Jordan, age 26, of Conway, South Carolina, was charged in a three-count Indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g); possession of controlled substances with intent to distribute, a violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c). The maximum penalty Jordan could receive is life imprisonment. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, assisted by the Conway Police Department and the Horry County Police Department. The case is assigned to Assistant United States Attorney Lauren Hummel of the Florence office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
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Father and Son Sentenced in Conspiracy to Make Payments and Gratuities to City of Buffalo Police OfficersRead 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 James Mazzariello, Jr., 63, and his son, Adam Mazzariello, 38, both of Alden, NY, who were convicted of conspiring to pay bribes to City of Buffalo police officers, were sentenced to serve 12 months and six months in federal prison respectively by U.S. District Judge Richard J. Arcara. James Mazzariello, Jr. was also convicted of making and subscribing a false tax return.
Assistant U.S. Attorneys Russell T. Ippolito, Jr., and Maura K. O’Donnell, who handled the prosecution, stated that James Mazzariello, Jr. owned and operated Jim Mazz Auto, Inc. (“Jim Mazz Auto”) and National Towing, Inc. (“National Towing”). The companies were involved in all aspects of the automobile towing and repair business, including collision repair work, mechanical repair work, towing and storage work, and the sale of used automobiles. Adam Mazzariello supervised the towing services aspect of his father’s businesses.
Between January 2009 and May 2012, Jim Mazz Auto tow truck operators, at the direction of the defendants, made payments to certain City of Buffalo police officers for their assistance in enabling the drivers to tow motor vehicles damaged in accidents in the City of Buffalo. The tow truck operators made these payments from their own personal funds and were then reimbursed by the defendants. James Mazzariello, Jr. and Adam Mazzariello also directed and authorized others to make reimbursement payments to tow truck operators for payments.
The investigation examined and substantiated 19 different payments made by Jim Mazz Auto tow truck operators to City of Buffalo Police Officers. Approximately $500 in payments were made to City of Buffalo police officers while the gross revenue Jim Mazz Auto derived from making such payments totaled $43,022.74. The gross revenue consisted of payments made to Jim Mazz Auto for towing, as well as for mechanical and collision repair work.
In addition, James Mazzariello, Jr. filed false corporate tax returns and individual tax returns for tax years 2009 and 2010. He also significantly underreported the total amount of gross revenue for his business in order to pay less in federal taxes. The total tax loss was $125,311.
The sentencings are the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Internal Revenue Service Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office; the New York State Department of Motor Vehicles’ Division of Field Investigation, under the direction of Owen McShane, Director of Investigations; the New York State Department of Taxation and Finance Criminal Investigations Division, under the direction of Upstate Chief of Investigations Pat Simet; the New York State Department of Financial Services Criminal Investigations Unit, under the direction of Director Frank Orlando; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Egg Harbor Township, New Jersey, Man Charged with Receipt of Child PornographyRead the Press Release
TRENTON, N.J. – An Egg Harbor Township man was arrested by federal agents today for allegedly receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Matthew Wolny, 40, is charged by complaint with two counts of receiving child pornography. Wolny is expected to appear this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
According to the complaint:In September 2013, Wolny, who was then living in Jackson, New Jersey, used peer to peer file sharing software on his computer to download video files containing images of child sexual abuse from the internet. When law enforcement officers searched Wolny's Jackson residence and his car in September 2013, they seized numerous electronic devices containing approximately 2,000 images and 1,600 videos of suspected child pornography.
Each charge of receiving child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, with the investigation. He also thanked the Little Egg Harbor Police Department, under the direction of Chief Richard J. Buzby Jr, for its assistance.
The government is represented by Assistant U.S. Attorney Molly Lorber of the Criminal Division in Trenton.
Eddy County Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Stephanie Murray, 30, of Loving, N.M., pled guilty today in federal court in Las Cruces, N.M., to narcotics trafficking charges arising out of the sale of methamphetamine to an undercover law enforcement agent.
Murray and co-defendants Jimmy Myers, 24, of Lockhart, Texas, and Jesus Sanchez, 31, of Carlsbad, N.M., were charged with methamphetamine trafficking offenses in an indictment filed on Dec. 13, 2017. The three-count indictment charged Murray, Myers and Sanchez with participating in a methamphetamine trafficking conspiracy and distributing methamphetamine on April 28, 2017. It also charged Myers with distributing methamphetamine on May 18, 2017. According to the indictment, the defendants committed the crimes in Eddy County, N.M.
During today’s proceedings, Murray pled guilty to conspiracy and distributing methamphetamine. In entering the guilty plea, Murray admitted that on April 28, 2017, she provided methamphetamine to an individual who then distributed the methamphetamine to an undercover law enforcement agent.
Myers previously entered a guilty plea on May 8, 2018. At sentencing, Murray faces a maximum penalty of 20 years in federal prison, and Myers faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. They both remain in custody pending sentencing hearings, which have yet to be scheduled.
Sanchez has entered a plea of not guilty to the charges in the indictment. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Special Assistant U.S. Attorney Joni Autrey of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Dunkirk Man Pleads Guilty to Selling CocaineRead 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 Fred Santiago, 30, of Dunkirk, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and distribution of, five kilograms or more of cocaine. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between July 2016 and May 2, 2017, the defendant conspired with co-defendant Michael Pacheco to distribute kilogram quantities of cocaine in and around the Western District of New York. Santiago obtained the cocaine from a source of supply in New York City for sale and distribution to others.
On May 2, 2017, a state search warrant was executed at the defendant’s residence on Lincoln Avenue in Dunkirk. Approximately 640 grams of cocaine was seized from a safe, and approximately 39 grams of marijuana was seized from the kitchen counter. In addition, law enforcement officers seized four drug scales, $44,000 in cash, $2,000 in money orders, a heat sealer, plastic bags, and a metal kilo drug press.
Charges are pending against co-defendant Michael Pacheco. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Evans Police Department, under the direction of Chief Douglas Czora; the Dunkirk Police Department, under the direction of Chief David Ortolano; and the Chautauqua County Drug Task Force, under the direction of Sheriff Joseph Gerace.
Sentencing is scheduled for September 20, 2018, before Judge Geraci.
Drug Dealer Indicted for Fentanyl Distribution Resulting in OverdoseRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Dumfries man with distributing Fentanyl, a very potent pain killer used in the medical profession, that resulted in the non-fatal overdose of a Virginia woman.
According to the indictment, since November 2017, Christopher Sorensen, 31, engaged in a conspiracy to distribute Fentanyl, distributed Fentanyl, distributed oxycodone, and possessed Fentanyl and oxycodone with the intent to distribute such substances.
Sorensen is charged with one count of Fentanyl distribution causing serious bodily injury as well as six other drug-distribution counts. If convicted, Sorensen faces a mandatory minimum of 20 years in prison and a maximum sentence of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant United States Attorney James L. Trump and Special Assistant U.S. Attorneys Matthew Reilly and Kaitlin Paulson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are 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-237.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Dominican National Charged with Illegal ReentryRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Luis Marcial Peguero-Espinal, 38, was indicted on one count of illegal reentry of a deported alien.
According to court documents, Peguero-Espinal was previously deported on June 16, 2011, and Sept. 19, 2017. When law enforcement officers discovered Peguero-Espinal on May 23, 2018, they determined him to be unlawfully present in the United States.
Peguero-Espinal faces a sentence of no greater than 20 years in prison, up to three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Deputy Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Departments of Justice and Homeland Security Release Quarterly Alien Incarceration Report Highlighting the Negative Effects of Illegal Immigration and the Need for Border SecurityRead the Press Release
President Trump’s Executive Order on Enhancing Public Safety in the Interior of the United States requires the Department of Justice (DOJ) and the Department of Homeland Security (DHS) to collect relevant data and provide quarterly reports on data collection efforts. On June 7, 2018 DOJ and DHS released the FY 2018 1st Quarter Alien Incarceration Report, complying with this order.[1] The report found that more than one-in-five of all persons in Bureau of Prisons custody were known or suspected aliens, and 93 percent of confirmed aliens in DOJ custody were in the United States unlawfully.
"The illegal immigrant crime rate in this country should be zero," said Attorney General Sessions. "Every crime committed by an illegal alien is, by definition, a crime that should have been prevented. It is outrageous that tens of thousands of Americans are dying every year because of the drugs and violence brought over our borders illegally and that taxpayers have been forced, year after year, to pay millions of dollars to incarcerate tens of thousands of illegal aliens. That is another reason why the Department of Justice under President Trump's leadership has instituted a zero tolerance policy for illegal entry on our Southwest border. Today's report is yet another reminder that we must continue this policy and help fulfill President Trump's goals of restoring lawfulness to our immigration system and ensure that immigration serves the good of this country."
“Bad actors know well our legal loopholes which act as a magnet for illegal immigration,” said Secretary Nielsen. “As DHS continues to carry out President Trump’s immigration priorities to keep America safe, Congress must urgently act to close dangerous loopholes that attract criminal aliens and also inhibit our ability to remove them.”
Section 16 of the Executive Order directs the Secretary of Homeland Security and the Attorney General to collect relevant data and provide quarterly reports regarding: (a) the immigration status of all aliens incarcerated under the supervision of the Federal Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees under the supervision of the United States Marshals Service; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States.
A total of 57,820 known or suspected aliens were in in DOJ custody at the end of FY 2018 Q1, including 38,132 persons in BOP custody and 19,688 in USMS custody. Of this total, 42,284 people had been confirmed by U.S. Immigration and Customs Enforcement (ICE) to be aliens (i.e., non-citizens and non-nationals), while 15,536 aliens were still under investigation by ICE to determine alienage and/or removability.
Among the 42,284 confirmed aliens, 39,413 people (93 percent) were unlawfully present. These numbers include a 62 percent unlawful rate among 38,132 known or suspected aliens in BOP custody and a 78 percent unlawful rate among 19,688 confirmed aliens in USMS custody.
Approximately 16,233 aliens in USMS custody required housing in state, local, and private facilities, which cost $1,458,372.72 a day.
For the first time, the Quarterly Alien Incarceration Report included examples of newly sentenced or incarcerated aliens in BOP custody. These examples include, but are not limited to:
- Anibel Rondolpho Rodriguez, an illegal alien from Honduras who was residing in Freeport, NY, was sentenced to 45 years in prison after he pled guilty to racketeering charges, two murder conspiracies, two attempted murders, and threatening to commit assault.
- Eduardo Martinez, an illegal alien who was residing in Fort Wayne, Indiana, was sentenced to 324 months in prison after he pled guilty to possession with intent to distribute more than a kilogram of heroin, distribution of over 50 grams of methamphetamine, and possession of a firearm.
- Pedro Quintero-Enriques, an illegal alien from Mexico who was residing in Summerdale, Alabama, was sentenced to 108 months in prison after he pled guilty to illegal reentry after deportation and felon in possession of firearms.
This report does not include data on the alien populations in state prisons and local jails because state and local facilities do not routinely provide DHS or DOJ with comprehensive information about their inmates and detainees—which account for approximately 90 percent of the total U.S. incarcerated population.
Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons
The Department of Justice’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a quarterly basis, BOP supplies this information to U.S. Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that information to determine the immigration status of each inmate and provides that information back to BOP.
Out of the 183,058 inmates in BOP custody, 38,132 (twenty-one percent) were reported by BOP as known or suspected aliens. Further details regarding these 38,132 known or suspected aliens are as follows:
- 20,976 (55 percent) were unauthorized aliens who are subject to a final order of removal;
- 11,698 (31 percent) remain under ICE investigation;
- 2,850 (seven percent) were unlawfully present and now in removal proceedings;
- 2,484 (approximately seven percent) were lawfully present aliens but are now in removal proceedings; and
- 124 were aliens who have been granted relief or protection from removal.
Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees
USMS identified 19,688 confirmed aliens under ICE investigation detained at USMS facilities. Further details regarding these 19,688 confirmed aliens are as follows:
- 13,858 (70 percent) were aliens who are subject to a final order of removal;
- 3,838 (19 percent) remain under ICE investigation;
- 1,560 (7.9 percent) were unlawfully present and now in removal proceedings;
- 387 (approximately two percent) were lawfully present but are now in removal proceedings; and
- 45 were aliens who have been granted relief or protection from removal.
Pending Charges Against Confirmed Aliens in USMS Custody
Of the 19,688 confirmed aliens in USMS custody, 10,971 (56 percent) were in custody for an immigration related offense. Additionally, 4,665 (nearly 24 percent) aliens were in custody for drug related offenses. Further details regarding the related charges of these inmates are as follows:
- 974 (approximately five percent) were in custody for supervision violations;
- 889 (approximately five percent) were in custody for property offenses;
- 391 (approximately five percent) were in custody for weapons violations;
- 378 (approximately two percent) were in custody for violent crimes;
- 745 (approximately four percent) in custody were material witnesses.
Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States
Some state and local jurisdictions already take proactive measures to make this data available to the public. For example, the Texas Department of Public Safety publishes data online regarding criminal alien arrests and convictions. These data do not account for all aliens in the Texas criminal justice system, as they are limited to criminal alien arrestees who have had prior interaction with DHS resulting in the collection of their fingerprints.
As reported by the Texas Department of Public Safety (DPS), 251,000 criminal aliens have been booked into local Texas jails between June 1, 2011 and April 30, 2018, according to DHS status indicators. These criminal aliens were charged with:
- More than 663,000 criminal offenses;
- 1,351 homicides;
- 7,156 sexual assaults;
- 9,938 weapons charges;
- 79,049 assaults;
- 18,685 burglaries;
- 79,900 drug charges;
- 815 kidnappings;
- 44,882 thefts;
- 4,292 robberies.
Additional conviction data can be found in the report.
The Departments continue to progress towards establishing data collection of the immigration status of convicted aliens incarcerated in state prisons and local detention centers through the Department of Justice’s Office of Justice Programs, Bureau of Justice Statistics and the Department of Homeland Security’s Office of Immigration Statistics.
Department of Justice Announces New DEA Division Office in OmahaRead the Press Release
The Drug Enforcement Administration will establish the Omaha Field Division – its 23rd division office in the United States – on July 8, 2018. The division will include Nebraska, Iowa, Minnesota, North Dakota and South Dakota.
"In January, DEA reorganized its field divisions for the first time in nearly 20 years. Today, just five months later, we are adding another new field division," said Attorney General Jeff Sessions. "That’s because we are facing a drug threat today the likes of which we have never seen before—but we are rising to the challenge. The Omaha Division will help us address the methamphetamine and opioid threat in Nebraska, Iowa, Minnesota, North Dakota, and South Dakota. The people of these states can rest assured that, in the face of an unprecedented crisis, we are taking steps to be more effective and put the traffickers and crooked doctors where they belong—behind bars."
“This action converts the existing Omaha District Office into a division in an effort to enhance DEA enforcement efforts within the Great Plain states region and unify drug trafficking investigations under a single Special Agent in Charge,” said DEA Acting Administrator Robert W. Patterson.
“DEA anticipates that this change will produce more effective investigations on methamphetamine, heroin, fentanyl and prescription opioid trafficking, all of which have a significant impact on the region,” said DEA Omaha’s Special Agent in Charge Matthew R. Barden.
The division will also better align DEA with the U.S. Attorneys’ Offices districts in those areas, similar to current ATF and FBI offices, and also to the Midwest High Intensity Drug Trafficking Areas (HIDTA) Program.
The Omaha Division will be led by Special Agent in Charge Matthew R. Barden, who comes from the St. Louis Division where he served as Associate Special Agent in Charge.Cross Lanes Man Sentenced to Federal Prison for Receiving Child PornographyRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man was sentenced today to 78 months in federal prison for a child pornography crime, announced United States Attorney Mike Stuart. Charles William Lourett, 62, previously entered his guilty plea in February to receiving child pornography. U.S. Attorney Stuart commended the investigative efforts of the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Parkersburg Police Department, the FBI, and the FBI Violent Crimes Against Children Task Force.
“We have a great team of investigators and prosecutors working tirelessly to identify those who use the Internet to target and exploit children,” said United States Attorney Mike Stuart. “Sex offenders like Lourett need to be locked up.”
Lourett previously admitted that on September 22, 2016, he received a video of a prepubescent minor engaged in sex acts. The video was received on Lourett’s computer located at his residence. The investigation revealed that Lourett was using a peer-to-peer file sharing program to download, receive, and distribute child pornography. Lourett further admitted to possessing over 600 images and videos of minors engaged in sex acts.
Upon Lourett’s release from prison, he will be required to serve a term of supervised release of 15 years and will be required to register as a sex offender.
First Assistant United States Attorney Lisa G. Johnston and Assistant United States Attorney Jennifer Rada Herrald were in charge of the prosecution. The sentencing hearing was held before United States District Judge John T. Copenhaver, Jr..
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Company Owner and Bookkeeper Indicted on Wire Fraud Conspiracy Charges in Connection with Unemployment Insurance Benefits SchemeRead the Press Release
ASHEVILLE, N.C. – A grand jury sitting in Asheville returned a federal criminal indictment today, charging Marion Kent Covington, 63, and Diane Mary McKinny, 65, both of Rutherfordton, N.C., with a conspiracy to commit wire fraud in connection with an unemployment insurance benefits scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; and Rafiq Ahmad, Special Agent in Charge of the Department of Labor-Office of the Inspector General, join U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, at all relevant times, Covington was the president, owner, and registered agent of Diverse Corporate Technologies, (“DCT”), a plastics manufacturing company located in Rutherford County, N.C. McKinny worked for Covington at DCT. The indictment alleges that, in late 2008, DCT was struggling financially, so the co-defendants developed and implemented a scheme to defraud the State of North Carolina by placing DCT employees on Unemployment Insurance Benefits (“UI Benefits”), while those employees continued to work at the business in excess of what was permitted by the program eligibility requirements. The indictment alleges that the scheme allowed DCT to reduce the cost-of-labor component of its cost-of-goods-sold, thereby increasing its net profitability.
The indictment alleges that in November or December 2008, in order to accomplish the scheme, the co-defendants “laid off” nearly all of the employees at DCT. The co-defendants provided some employees with separation notices and instructed them as to how to file their own claims for UI Benefits. Those employees received UI Benefits based on their asserted “totally unemployed” status. Next, the indictment alleges, Covington called a business meeting at DCT and informed the remaining DCT employees that the company could no longer afford to pay their wages, and that they therefore would be placed on UI Benefits, but that Covington expected the employees to continue to work at DCT, just as they had before they were laid off, in order to help the business survive. The indictment alleges that Covington used his position of authority within his church community, which included most, if not all, of the employees at DCT, to coerce the employees to comply. Around the same time, McKinny filed claims for UI Benefits on behalf of the employees whom Covington had required to continue working at DCT while they received UI Benefits. In filing the necessary information for UI Benefits, McKinny certified the claimants’ initial and continuing eligibility to receive those benefits.
The indictment alleges that, at Covington’s direction, at least five of the employees for whom McKinny made claims for UI Benefits then continued to work at DCT on a full-time or near-full-time basis while collecting UI Benefits every week. Through the operation of the scheme outlined above, the co-defendants obtained more than six months of free labor for DCT, paid for by the government, instead of by the business itself.
The indictment further alleges that by September 2009, several other businesses run by members of the same church community to which Covington and McKinny belonged, and employing many members of that same church community, were facing their own financial struggles related to the economic downturn. According to the indictment, the co-defendants then began to promote the fraud that they had devised at DCT to other members of the church community.
In addition to promoting the scheme to other business owners, Covington implemented the scheme a second time, with McKinny’s help, at Integrity Marble, Inc., d/b/a Integrity Marble & Granite, another for-profit company that Covington owned and managed, in or about March of 2010. Covington then implemented a variation of the scheme a third time at Sky Catcher Communications, Inc., a company he managed, in or about May of 2011.
In total, between November 2008 and March 2013, the scheme resulted in over $250,000 in fraudulent claims for UI Benefits by employees who continued to work full-time or near-full-time at businesses owned or managed by co-conspirators, and who were therefore ineligible to claim those UI Benefits.
Covington and McKinny are charged with conspiracy to commit wire fraud affecting a financial institution, which carries a maximum prison term of 30 years and a maximum fine of $1,000,000. They have been ordered to appear on a summons in federal court.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray commended HSI, SBI, and the Department of Labor for their investigation of the case. U.S. Attorney Murray also thanked District Attorney Ted Bell, of the Rutherford County District Attorney’s Office, for his assistance and support throughout the investigation.
Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Comanche Woman Pleads Guilty to Embezzling More Than $280,000Read the Press Release
OKLAHOMA CITY – ANNETTE M. STRAILY, of Comanche, Oklahoma, pleaded guilty yesterday to bank fraud and signing a false federal income tax return, in connection with a $283,000 embezzlement scheme from a Duncan dental office, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On May 24, 2018, Straily was charged by information with one count of bank fraud and one count of filing a false federal income tax return. From April 2012 until June 2017, Straily worked as the office manager of a dental office in Duncan, Oklahoma. According to the information, as part of her job, she prepared checks, paid invoices, managed the accounting system, and maintained the petty cash fund. Yesterday, Straily pleaded guilty to preparing an unauthorized office check, in the amount of $1,266.80, made payable to herself in February 2017. Straily admitted that she forged the signature on the dental office’s check and later presented that check for payment against the dental office’s bank account at a local bank. As part of her plea, Straily further admitted that she embezzled funds from her former employer from around April 2012 through June 2017. Straily stipulated in a plea agreement that the total restitution due to the Duncan dental office from the embezzlement scheme is $283,005.11.
In addition to pleading guilty to bank fraud, Straily pleaded guilty to signing a false tax return. She admitted that on April 13, 2016, she signed a personal federal tax return for the 2015 calendar year that she knew was false because it reported only $49,127 in total income. At yesterday’s plea hearing, Straily admitted that she omitted on the 2015 return more than $100,000 of embezzled income for that year from the dental office. As part of her plea agreement, Straily agreed that she owes $54,286 in restitution to the Internal Revenue Service for the tax loss.
At sentencing, Straily faces up to 30 years in prison on the bank fraud count, plus five years of supervised release, and a $1,000,000 fine. Straily also faces up to three years in prison on the tax count, in addition to one year of supervised release, and a $250,000 fine. Straily will be sentenced in approximately 90 days. Reference is made to the public filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Rozia McKinney-Foster.
Columbia Man Sentenced for Possessing a Firearm and Selling CocaineRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that Caster Delaney Whetstone was sentenced in federal court in Columbia, South Carolina, for being a felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1) and 924(e) and possession with the intent to distribute cocaine, in violation 21 U.S.C. § 841(a)(1). United States District Judge Joseph F. Anderson, Jr. of Columbia sentenced Whetstone to 180 months (15 years) incarceration followed by 5 years of supervised release and $100 special assessment.
Evidence presented at the change of plea hearing established that on June 10, 2014, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department (CPD) used an informant to purchase a half an ounce of cocaine from Whetstone. The informant met Whetstone at a local store in Five Points. Whetstone gave the informant the cocaine and the informant paid Whetstone $600 cash.
On June 24, 2014, ATF and CPD used another informant to attempt to make a purchase of a half-ounce of cocaine and a firearm from Whetstone. They met and Whetstone sold the informant a .32 caliber Harrington and Richardson model 632 revolver with 6 rounds of ammunition and what he represented was 14 grams of cocaine. The cocaine was later determined to be fake.
Whetstone is prohibited under federal law from possessing firearms based upon his prior separate state convictions for armed robbery (2 counts), kidnapping, discharging a firearm into a dwelling, and assault with intent to kill.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Columbia Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney William K. Witherspoon of the Columbia office handled the case.
Project CeaseFire is 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.
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Columbia Man Pleads to Federal Firearm Charge and Misprison of FelonyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Jokari T. Jones, age 36, of Columbia, plead guilty today in federal court to being a felon in possession of firearms and ammunition and misprison of a felony, all in violation of Title 18, United States Code, Sections 4, 922(g)(1), 924(a)(2), and 924(e). United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on July 29, 2017, Jones’ brother Shamari Delresse Jones, a/k/a “Amari, was arrested on state charges, including felon in possession of ammunition. Thereafter, Jokari T. Jones, who was on a state ankle monitor at the time, moved firearms and ammunition belonging to his brother from Columbia to their mother’s residence in Heath Springs, which is in Lancaster County. On July 30, 2017, the Lancaster County Sheriff’s Office responded to Jones’ mother’s home in reference to a shooting. No one was injured, but while at the home, a number of firearms and rounds of ammunition were recovered by law enforcement, including a Bushmaster .223 caliber rifle with an extended magazine and two 12 gauge shotguns. Jones’ brother, a known gang member, had attended an offender notification meeting in October 2015, in which he, and others, were advised by law enforcement officials that should they be found in possession of firearms and ammunition, their case would be considered for federal prosecution in light of their extensive prior record. Jones moved the firearms in an effort to keep law enforcement from finding the firearms following his brother’s arrest for ammunition.
Jones is prohibited under federal law from possessing firearms and ammunition and has prior South Carolina state convictions for unlawful carrying of a pistol (2003), assault with intent to kill and unlawful carrying of a pistol, wherein he shot at someone (2005), and carrying weapons on school property and possession of a firearm by a person convicted of a crime of violence, wherein he shot a handgun on the premises of a local elementary school (2012).
Jones faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of firearms and ammunition charge. He faces a maximum of 3 years imprisonment, a fine of $250,000, and 1 year of supervised release on the misprison of a felony charge.
Jones’ brother Shamari Delresse Jones, a/k/a “Amari,” entered a guilty plea in federal court in earlier this year to being a felon in possession of firearms and ammunition, and is currently awaiting sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Columbia Police Department, and the Lancaster County Sheriff’s Office and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Chelsea Gang Member Sentenced on Racketeering and Drug Trafficking ChargesRead the Press Release
BOSTON – An East Side Money Gang (ESMG) member was sentenced yesterday in federal court in Boston on racketeering and drug trafficking charges.
Henry Del Rio, a/k/a “Junior,” a/k/a “JR,” 21, of Chelsea, was sentenced by U.S. District Court Judge Richard G. Stearns to five years in prison and four years of supervised release. In February 2018, Del Rio pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly known as RICO, one count of conspiracy to distribute cocaine and cocaine base, one count of conspiracy to distribute heroin, and one count of possession of a firearm with an obliterated serial number.
Del Rio is a self-admitted member of the ESMG, a Chelsea-based street gang, which uses violence to further its criminal activities and enforce its internal rules. Specifically, ESMG uses violence to protect its members/associates, target rival gang members/associates and intimidate potential witnesses. The ESMG is also involved in drug trafficking, including cocaine, cocaine base (a/k/a crack) and heroin in Chelsea and surrounding communities.
Del Rio conspired with other gang members and associates to distribute heroin and other drugs in Chelsea. Additionally, Del Rio sold a confidential informant a .45 caliber semi-automatic handgun with an obliterated serial number and a 30-round, high-capacity magazine from Del Rio’s residence on Gerrish Street in Chelsea.
Del Rio is one of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that had created alliances to traffic weapons and drugs throughout Massachusetts and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Street Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
Central Georgia Individuals Plead Guilty to Offenses Related to Human Trafficking EnterpriseRead the Press Release
COLUMBUS: United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that guilty pleas were entered on June 7, 2018, in front of United States District Judge Marc T. Treadwell by Curtis Hall, age 37, of East Dublin, Georgia, Lantesia Lanier, age 41, of Dublin, Georgia, and Jackie Fields, age 47, of Cochran, Georgia to offenses related to a human trafficking enterprise spearheaded by co-defendant Jessie Lee Hall, Jr. Fields and Lanier each entered a plea to one count of misprision of a felony for misleading law enforcement about their knowledge of the enterprise, while Curtis Hall entered a plea to a single count charging him with interstate travel in aid of a racketeering enterprise for his role in the criminal endeavor.
Jessie Lee Hall, Jr., age 38, of Dublin, Georgia previously entered a guilty plea on May 9, 2018 in front of Judge Treadwell to one (1) count of conspiracy to commit sex trafficking by force, fraud, or coercion, five (5) counts of transportation for illegal sexual activity, and one (1) count of inducement to travel to engage in criminal sexual activity.
Jessie Lee Hall, Jr., acted as a pimp for the several victims known to law enforcement. The first victim of the conspiracy was encountered by law enforcement on June 12, 2016, at a hotel in Macon. The victim stated that Hall was her pimp and she met him through the internet. In May 2016, Mr. Hall convinced the victim to travel from Ohio and work as a prostitute for him in Georgia. The victim was forced by Hall to perform commercial sex acts in hotels throughout Central Georgia.
During the investigation, Bibb County Sheriff’s Office received information that Jessie Lee Hall, Jr., was trafficking other women for sex. A second victim confirmed that Jessie Lee Hall, Jr., was her pimp and that she had worked for him from approximately July, 2013, until February, 2016. Mr. Hall advertised her services on Backpage.com and transported her to hotels inside and outside Georgia for commercial sex acts.
A third victim was also identified and was required to perform commercial sex acts throughout central Georgia.
All three victims stated that a combination of threats of force, fraud, or coercion had been used by Mr. Hall to cause them to perform commercial sex acts. They additionally stated that defendants Curtis Hall, Lantesia Lanier, and Jackie Fields had knowledge of the operation and participated in it to varying degrees.
Curtis Hall is facing a maximum of 5 years imprisonment, while Fields and Lanier are facing a maximum 3 years prison sentence. All are subject to a maximum fine of $250,000.00.
“Human trafficking is a crime that literally trades in the bodies and souls of its victims. The investigation and prosecution of these crimes are among the highest priorities of the Department of Justice and of my office,” said United States Attorney Peeler.
“The FBI and its law enforcement partners have made human trafficking a top priority, and this case is an example of our determination,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “Human trafficking is an unspeakable crime against some of the most vulnerable in our society and we will continue to devote significant resources toward these reprehensible crimes.”
Sentencing will be scheduled for late September or early October of 2018.
This case was investigated by the Federal Bureau of Investigation and Bibb County Sheriff’s Office, with support from the Laurens County Sheriff’s Office and the Bleckley County Sheriff's Office. Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Casselberry Resident Sentenced to 25 Years for Sexually Exploiting A ChildRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Oscar Luis Burgos (32, Casselberry) to 25 years in federal prison for production and receipt of child pornography. He pleaded guilty on March 9, 2018.
According to court documents, Burgos initially met the child victim online in May 2017. Although the victim told Burgos that she was 14 years old, he still engaged her in highly sexualized online chat conversations. He also persuaded her to produce and send to him images of herself engaging in sexually explicit conduct. At one point during their conversations, Burgos also discussed murdering the girl’s father and having sex with her next to his corpse.
This case was investigated by the Federal Bureau of Investigation and the Lawrence (Kansas) Police Department. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
California Man Pleads Guilty to Heroin ConspiracyRead the Press Release
Hattiesburg, Miss – Juan Pablo Zamora Gomez, 32, of Modesto, California, pled guilty yesterday before U.S. District U.S. District Judge Keith Starrett to conspiracy to possess with intent to distribute 100 grams or more of heroin, announced U.S. Attorney Mike Hurst and DEA Assistant Special Agent in Charge J. Derryle Smith.
Zamora Gomez pled guilty to conspiring to possess with intent to distribute heroin from August 2017 through December 13, 2017. He will be sentenced on September 18, 2018, by Judge Starrett, and he faces a maximum penalty of 40 years in prison and a $5 million fine.
The investigation into Zamora Gomez started after agents with the DEA executed a search warrant at Jermaine Newell’s property in Soso, Mississippi. Agents located 951 grams of heroin in Newell’s possession. After Newell’s arrest, agents learned that he received the heroin from Zamora Gomez and Vincente Manuel Ruiz. Agents had recorded phone calls in which Zamora Gomez was heard discussing the heroin and set up a meeting to further the conspiracy.
Jermaine Antonio Newell, 32, of Gautier, Mississippi, was sentenced on May 10, 2018, to 60 months in federal prison followed by five years of supervised release for conspiracy to possess with intent to distribute 100 grams or more of heroin. Vincente Manuel Ruiz will be sentenced by Judge Starrett on July 17, 2018. He faces a maximum penalty of 40 years in prison and a $5 million fine.
This case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics and the Jones County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
California Man Pleads Guilty to Pornography ChargeRead 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 Loren Glen Warner, 28, of Fresno, CA, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to production of child pornography. The charges carry a mandatory minimum penalty of 15 years, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in early January, 2017, the defendant met the 14 year-old victim at her family’s church in Cattaraugus County, NY, and the two began communicating via Facebook and Snapchat. During those communications, Warner, who knew the victim was 14 years-old, began making sexual references and statements, and sent sexually explicit images of himself to the victim. The defendant also asked for and received nude photographs of the victim.
Warner also met a 13 year-old victim at a church in Fresno, California. Over several years, the defendant requested and received child pornography images and videos from that victim as well.
In March 2017, the defendant pleaded guilty to Rape in the Second Degree, and Endangering the Welfare of a Minor in Cattaraugus County Court and was sentenced to seven years in prison.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major Edward Kennedy; and the Cattaraugus County District Attorney’s Office, under the direction of Lori Rieman.
Sentencing is scheduled for October 25, 2018, at 12:00 p.m. before Judge Wolford.