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Tuesday 15 May 2018
Two Delaware Residents Charged with Sex Trafficking of MinorsRead the Press Release
Dkyle Jamal Bridges, 32, and Kristian Jones, 24, both of Claymont, Delaware, have been charged with multiple counts of sex trafficking of minors in an indictment unsealed May 11, announced United States Attorney William M. McSwain.
Specifically, the defendants are charged with conspiracy to engage in forcible sex trafficking of minors, two counts of forcible sex trafficking, and three counts of forcible sex trafficking of minors. According to the indictment, Bridges and Jones committed the various sex trafficking offenses between 2012 and 2017.
“The indictment alleges that the defendants and their associates operated a violent sex-trafficking enterprise in which women and several minor children were sold for commercial sex,” said U.S. Attorney McSwain. “Stopping human exploitation, and particularly child exploitation, is a priority for the Department of Justice, and we are working very hard with our law enforcement partners to find and prosecute all such offenders. In this case, we worked with the FBI and local police in both Pennsylvania and Delaware. That’s what it’s going to take to stop the unconscionable exploitation of these young victims.”
If convicted as charged, each defendant faces a maximum possible sentence of 1life imprisonment, a mandatory minimum term of fifteen years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $1,500,000 dollar fine, mandatory restitution, and a maximum $30,600 special assessment.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, the Tinicum Township Police Department, and the Newark (DE) Police Department. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
Treatment Center Owners Sentenced to Prison for Multi-Million Dollar Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Two treatment center owners were sentenced to prison for their participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Tovah Lynn Jasperson, a/k/a Tara, 48, of Wellington, was sentenced to 78 months in prison, to be followed by 3 years of supervised release. Alan Martin Bostom, 75, of Wellington, was sentenced to 30 months in prison, to be followed by 3 years of supervised release. Both were also ordered to pay restitution of $4,045,364.98. Jasperson previously pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1347; all in violation of Title 18, United States Code, Section 1349. Bostom previously pled guilty to one count of making false statements related to a health care matter, in violation of Title 18, United States Code, Section 1035(a)(1).
According to court documents, Jasperson and Bostom were the owners of Angel’s Recovery, a business with multiple locations in Palm Beach County that purportedly operated as a licensed substance abuse service provider (or treatment center) offering clinical treatment services for persons suffering from alcohol and drug addiction. Angel’s Recovery also offered medication-based treatment for opioid addiction.
At different times, the defendants managed all aspects of Angel’s Recovery, including hiring and firing personnel, admitting and discharging patients, and making financial decisions. To secure a steady stream of patients, the defendants established illegal kickback/bribe relationships with owners of sober homes, in exchange for referring the sober homes’ insured residents to Angel’s Recovery for treatment. Sober homes were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. The defendants provided the money used to purchase or rent several properties used as “sober homes,” although the purchase agreements or leases would bear the names of third parties.
The defendants and co-conspirators provided kickbacks and bribes, in the form of free or reduced rent, insurance premium payments, and other benefits to individuals with insurance who agreed to reside at the sober homes and attend drug treatment, which included regular and random drug testing (typically three or more times per week), so that members of the conspiracy could bill the testing and treatment to the residents’ insurance plans. To disguise kickbacks and bribes to patients, the defendants used a separate entity to pay insurance premiums for patients of Angel’s Recovery so that Angel’s Recovery could continue to bill the patients’ insurance companies for treatment expenses.
Jasperson and Bostom hired a doctor to serve as the medical director of Angel’s Recovery who frequently pre-signed prescriptions that were used to dispense controlled substances to patients of Angel’s Recovery by other employees. After the doctor’s medical license was suspended, the defendants continued to employ him and failed to inform the Florida Department of Children and Families because it could not continue to operate as a licensed facility without a licensed medical director.
The defendants and co-conspirators caused the submission of insurance claims that: falsely stated the testing and treatment were medically necessary, failed to disclose that patients were referred to Angel’s Recovery in exchange for kickbacks and bribes, failed to disclose that patients were not asked to pay kickbacks and deductibles, failed to disclose that the defendants paid some patients’ insurance premiums, and failed to disclose that the prescribing physician’s license was suspended.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak-OIG, DOL-EBSA, and NICB. This matter and related cases are being prosecuted by Assistant United States Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Men Charged in Scheme to Purchase Firearms in Kentucky and Illegally Re-Sell Them in Chicago AreaRead the Press Release
CHICAGO — Three men have been charged with federal firearms violations for scheming to purchase dozens of guns in Kentucky and illegally re-sell them in the Chicago area.
On several occasions in 2016 and 2017, CHRISTOPHER HENDERSON and JOHN L. PHILLIPS purchased firearms from private sellers in Kentucky and brought them to the Chicago area, according to a criminal complaint and affidavit filed in federal court in Chicago. The pair then worked with JAIQAIL WRIGHT to re-sell the guns to buyers in Chicago and the surrounding suburbs, the charges allege. Many of the guns were recovered by law enforcement during criminal investigations, the complaint states. Authorities estimate that 80 to 90 firearms recovered by law enforcement in the Chicago area are associated with the defendants’ firearms trafficking.
All three defendants were arrested last week. The complaint charges Henderson, 23, of Louisville, Ky., Phillips, 23, of Hillside, and Wright, 23, of Chicago, with dealing firearms without a license. Phillips, who was previously convicted of a firearm-related felony, also faces a charge of illegal possession of a firearm by a felon. Detention hearings are scheduled for May 17, 2018, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Valuable assistance was provided by the Louisville, Ky., ATF Field Division, Chicago Police Department, Illinois State Police, and the Chicago High Intensity Drug Trafficking Area (HIDTA).
According to the charges, Henderson and Phillips bought the guns in Kentucky from individuals they met on Armslist.com, a website dedicated to the sale or trade of firearms and firearm-related items, such as ammunition and gun parts. Using various names and email addresses, the pair contacted sellers on the website and arranged to meet them in Kentucky, the complaint states. After the purchases, Phillips and Henderson transported the guns to the Chicago area, where they worked with Wright to re-sell them, the charges allege.
Wright allegedly acted as a broker, using Facebook and other means to advertise the weapons. In one transaction described in the complaint, Wright brokered a deal to sell six handguns to a documented gang member. The complaint also describes a purchase by Henderson of a .45-caliber pistol on or about Dec. 23, 2016. The gun was recovered by law enforcement less than three months later while investigating a vehicular hijacking in the western suburbs, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Dealing firearms without a license is punishable by a maximum sentence of five years in prison. The felon-in-possession charge against Phillips carries a maximum sentence of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Elizabeth Pozolo and Kalia Coleman.
Ten Individuals Charged for Conspiring to Traffic Contraband Through the Dallas/Ft. Worth International AirportRead the Press Release
DALLAS — A federal grand jury has returned an Indictment charging ten individuals for their role in conspiring to traffic contraband through Dallas Fort Worth International (DFW) Airport, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas, at a press conference today. The law enforcement operation was led by the Federal Bureau of Investigation, the Dallas Police Department, the Internal Revenue Service Criminal Investigation, and the Dallas Fort Worth International Airport Police Department.
The Indictment, returned last week and unsealed this morning, charges Nelson Pabon, 47, Jean Loui Vargas-Malave, 28, Juan Camacho Melendez, aka “Kendo Kaponi” and “Anthony,” 22, Ruben Benitez-Matienzo, 45, Jose Luis Gaston-Rolon, 24, Joshua Israel Pagan Zapata, 21, Domingo Villafane Martinez, III, 30, Luis Javier Collazo Rosado, aka “Luisito,” 21, Michael LNU, and Cristian David Cruz-Rodriguez, 23, with one count of conspiracy to possess with intent to distribute a schedule II controlled substance. The defendants were arrested yesterday and will make their initial appearances before a United States Magistrate Judge later this week.
“We have zero tolerance for employees who seek to undermine and evade the security protocols at airports,” said U.S. Attorney Erin Nealy Cox. “Smugglers are constantly seeking new ways to move illegal contraband across the country and we will do whatever necessary to thwart these criminals at every turn. Working together with federal and local law enforcement partners, we continue to prioritize efforts to help mitigate the insider threat to aviation security.”
According to the Indictment and beginning in August 2016, the defendants acquired a substance that they believed to be methamphetamine. They arranged for the transportation and delivery of the counterfeit drugs through the DFW Airport and onto commercial airline flights. The defendants utilized their position of employment with companies at DFW Airport to bypass security measures and in return, they accepted payment for the transportation and delivery of the counterfeit drugs. The defendants would also act as “look-outs” or engage in counter-surveillance to undermine police presence.
Also during the investigation, one of the defendants stated he could transport guns via commercial airlines. There were also discussions about transporting C-4 but the fees for transporting this type of contraband would be higher than what was charged for the smuggling of illegal narcotics. All told, the defendants facilitated the transportation of 66 kilograms of counterfeit drugs. The counterfeit drugs were transported to various locations throughout the United States, including Newark Liberty International Airport in Newark, New Jersey, Charlotte Douglas International Airport in Charlotte, North Carolina, and Sky Harbor Airport in Phoenix, Arizona.
“The FBI would like to thank its local and federal partners that assisted in this investigation. This joint operation allowed us to successfully arrest ten individuals who used their positions of employment and access to compromise an aspect of airport security,” said Eric K. Jackson, FBI Dallas Special Agent-In-Charge. “We at the FBI will continue to work diligently with our partners to ensure we aggressively investigate anyone who poses a threat to or attempts to compromise any aspect of U.S. aviation security.”
"DFW and the FBI have a strong partnership that is focused on keeping our customers and employees safe and secure, and these arrests demonstrate how well we work together,” said DFW Airport Police Chief Charles Cinquemani. “There will always be people who attempt to access the airport for illegal activities, but we will remain vigilant by investing in security and collaboratively sharing information and resources with the FBI, TSA, Customs and Border Protection and other federal, state and local agencies.”
A federal criminal Indictment is a written statement of the essential facts of the offense charged. A defendant is entitled to the presumption of innocence until proven guilty. If convicted, the defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
Assistant U.S. Attorneys George Leal, John De La Garza and John Kull are prosecuting the case.
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Taylor County Convicted Felon Pleads Guilty to Narcotics and Gun Charges Under Project Safe NeighborhoodsRead the Press Release
COLUMBUS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on May 14, 2018, Andre Hendricks, aged 39, of Woodland, Georgia, entered a guilty plea to Possession with Intent to Distribute Cocaine Base and Possession of a Firearm by a Convicted Felon before Chief United States District Judge Clay D. Land in Columbus.
At his plea hearing, Mr. Hendricks admitted that he sold narcotics from his residence to a confidential informant on two occasions in December 2016. A subsequent search of his residence revealed nine (9) firearms, ammunition, crack cocaine, a quantity of pills containing methamphetamine, hydrocodone pills, powder cocaine, marijuana and drug paraphernalia.
Mr. Hendricks is prohibited from possessing a firearm after having been convicted of Possession of Cocaine with Intent to Distribute in Superior Court in Talbot County in 2003; Possession of Cocaine with Intent to Distribute Cocaine in Superior Court in Meriwether County in 2005; Possession of a Firearm by a Convicted Felon, Possession of Ecstasy and Possession of Cocaine in Muscogee County Superior Court in 2006; and Possession of a Firearm by a Convicted Felon in Talbot County Superior Court in 2009.
Mr. Hendricks faces a maximum penalty of forty (40) years imprisonment, a $5 million fine, or both, for the narcotics charge and a maximum of ten (10) years imprisonment, a $250,000 fine or both, on the firearms charge. His sentencing hearing will take place following a pre-sentence investigation. There is no parole in the federal system.
“Mr. Hendricks had both a virtual pharmacy and arsenal when arrested. His past record of drug and weapons possession charges, together with his current charges, make it clear that only incarceration will prevent the same conduct from him in the future. Fortunately, that is what he now faces,” said United States Attorney Peeler.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Taylor County Sheriff’s Office, the Georgia Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Crawford Seals is prosecuting 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.
Sumter Men Sentenced on Federal Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Brandon Leroid Cummings, age 28, and Brandon Christopher Craft, age 31, both of Sumter, were both sentenced today in federal court in Columbia by Chief United States District Judge Terry L. Wooten after pleading guilty earlier this year to various firearm and drug charges.
Cummings was sentenced to a total of 108 months imprisonment with 6 years of supervised release on charges of possession with intent to distribute and distribution of heroin and cocaine base (commonly known as “crack cocaine”) and conspiracy to use/carry/possess a firearm during a drug trafficking crime, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 924(o).
Craft was sentenced to a total of 63 months imprisonment with 3 years of supervised release to follow on charges of felon in possession of a firearm and conspiracy to use/carry/possess a firearm during a drug trafficking crime, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(o).
Evidence presented in court during the guilty plea hearings established that May 17, 2017, Cummings distributed crack cocaine and four baggies of heroin to a confidential informant and undercover officer in exchange for $400. The transaction, which occurred in Sumter, was recorded on audio/video. Thereafter, on May 25, 2017, Cummings made arrangements to sell a firearm and heroin to the confidential informant in exchange for $800. When Cummings arrived to meet the confidential informant and the undercover officer, he was accompanied by Craft. Cummings provided the confidential informant what he said was heroin. Craft produced a Taurus .38 caliber revolver from a bag hidden in his waistband and gave it to the confidential informant. The investigation revealed that the firearm had been previously reported as stolen. Additionally, the heroin sold by Cummings on this occasion, while packaged like the previously sold heroin, was found to be cocaine during a laboratory analysis.
Cummings had prior state convictions for possession with distribution of marijuana, possession of crack cocaine (2 counts), and possession schedule I/schedule II controlled substance 2nd offense. Craft had prior state convictions for burglary 2nd degree (2 counts), possession of crack cocaine, possession of a firearm, assault and battery 2nd degree, and forgery (2 counts).
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and the Sumter County Sheriff’s Department 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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Statement of United States Attorney Mike Stuart on the Appointment of Hank Dial as Chief of Police for the Huntington Police DepartmentRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement:
“I congratulate Hank Dial on the removal of the word “Interim” from his official title and his appointment as Chief of Police for the Huntington Police Department,” said United States Attorney Mike Stuart. “Hank has done an excellent job while serving as Interim Chief, and I expect nothing less from him and his Department moving forward. I look forward to our continued partnership and making Huntington the safest city in America. Mayor Steve Williams has placed the Huntington Police Department in good hands.”
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Statement of United States Attorney Mike Stuart on Passing of W. Warren Upton, former United States Attorney for the Southern District of West Virginia (1970 – 1972)Read the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement:
“It is a sad day for West Virginia and the Department of Justice family to learn about the passing of our esteemed colleague, W. Warren Upton. I offer prayers and condolences to his family and friends. Upton served as an Assistant United States Attorney in the Southern District of West Virginia from 1965 to 1970 before being appointed as Acting United States Attorney, and honorably served in that position from 1970 to 1972. I have the utmost respect and gratitude for his service to the United States and the Southern District of West Virginia.”
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Statement of U.S. Attorney John H. Durham in Recognition of National Police WeekRead the Press Release
In my 40-year career as a state and federal prosecutor, I have had the pleasure of working side by side with hundreds of federal, state and local law enforcement officers in the cause of justice. As a group, they are the finest people anyone could hope to know and work with. I have the greatest respect and admiration for these men and women, whose mission encompasses the most dangerous work undertaken in our communities.
A quote attributed to George Orwell reminds us of the debt we owe to members of law enforcement: “We sleep safe in our beds because rough men stand ready in the night to visit violence on those who would do us harm.”
In 1962, President Kennedy signed a proclamation designating today, May 15, as Peace Officers Memorial Day, and the week surrounding this date as National Police Week, to honor federal, state and municipal officers who made the ultimate sacrifice in the line of duty. So far this year, 53 brave men and women of law enforcement have lost their lives in service to the citizens of the United States. That figure includes Connecticut State Police Trooper First Class Kevin M. Miller, who was tragically killed in a vehicle crash on I-84 in Tolland on March 29.
Please take a moment today to remember them, and their families and loved ones who live with their loss.
I also encourage all to take some time this year to visit the Connecticut Law Enforcement Memorial, located at the Connecticut Police Academy in Meriden. The Memorial, which was dedicated in 1989, recognizes the sacrifice of 139 men and women of law enforcement who died in service to the people of Connecticut. This year, three more names will be added to the memorial, including Trooper Miller.
While most of us are fortunate to be able to live our lives freely without fear for our physical safety, too many of us take for granted that, in times of trouble, the police will be there to protect us from harm. For this, we owe a debt of gratitude to all officers, detectives, troopers and agents, who put themselves at risk every day for the safety of our communities, for our peace of mind, and for the security of our loved ones. It has been, and continues to be, my great honor to be able to work with all of them.
Statement from U.S. Attorney Bob Troyer in Support of National Police WeekRead the Press Release
“The partnerships among federal, state and local law enforcement in Colorado are unparalleled and set a gold standard of which we all can be proud,” said U.S. Attorney Bob Troyer. “The U.S. Attorney’s Office is truly thankful for everything Colorado Law Enforcement does to make this state such a great place to live.” National Police Week runs from May 13 through May 19. For information about National Police Week events, please visit www.policeweek.org.
Statement by U.S. Attorney Andrew E. Lelling Regarding Peace Officer’s Memorial DayRead the Press Release
BOSTON – Today marks the 55th anniversary of Peace Officer’s Memorial Day. It is the one day of the year when we are called upon to recognize those who preserve law and order, particularly those who have been injured in the line of duty or who have made the ultimate sacrifice to keep our communities safe. In truth, we should be keeping our peace officers – federal agents, state troopers, police officers, probation officers, corrections officers and others – in our daily thoughts and prayers.
Being a peace officer is neither easy nor without risk. The number of firearms-related law enforcement officer fatalities is up 56% in comparison to this time last year. This is a trend that we must stop, through aggressive enforcement and by encouraging respect for the law.
Our peace officers are also at a higher risk than ever of exposure to traumatic events, resulting in a steady increase in post-traumatic stress and suicidal behavior among those who keep us safe. I cannot over-emphasize the need for improved support, training and equipment for these brave men and women. The least we can do is give them the resources they need to do their jobs. While the federal government will do its part in this area, state and local government must also prioritize the safety and well-being of their officers. Local law enforcement agencies cannot bear this responsibility alone.
To the peace officers in this Commonwealth – today and every day – you have my deepest regard and admiration. The U.S. Attorney’s Office supports you, respects you and has the greatest appreciation for what you do. To the families and loved ones of those who have died or been injured in the line of duty, we remember, and we will not forget the sacrifices that have been made on our behalf.
Somerset County Man Possessed Sexual Images and Videos of Prepubescent MinorsRead the Press Release
JOHNSTOWN, Pa. – A Somerset County resident pleaded guilty in federal court in Johnstown to a charge of possession of child pornography, United States Attorney Scott W. Brady announced today.
Robert G. Landsbach, 36, of Stoystown, Pa., pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on October 5, 2016, Landsbach knowingly possessed pictures and videos in individual computer graphic files, which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for Oct. 1, 2018, at 1:30 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
The Department of Homeland Security, Child Exploitation, the Pennsylvania Attorney General’s Office, and the Pennsylvania State Police, Somerset, conducted the investigation that led to the prosecution of Landsbach.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better 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.
Roswell Felon Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Shane Mann, 30, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws by being a felon in possession of a firearm and ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosive arrested Mann in Feb. 2018, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Aug. 9, 2017, in Chaves County, N.M. According to the complaint, law enforcement officers found multiple firearms and ammunition, and drug paraphernalia in Mann’s residence while executing a state search warrant. Mann was prohibited from possessing firearms or ammunition because of his prior felony convictions for shooting from a motor vehicle, aggravated fleeing a law enforcement officer, and possession of a controlled substance.
During today’s proceedings, Mann pled guilty to a felony information charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Mann admitted that on Aug. 9, 2017, law enforcement officers found firearms and ammunition in his residence, including a loaded handgun that was under a pillow in the bed in which Mann was laying, during the execution of the warrant. Mann acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Mann faces a maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roswell Police Department and the HIDTA Chaves County Metro Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Recidivist Securities Fraudster Edward Durante Sentenced to 18 Years in Prison for Securities Fraud, Money Laundering, and Perjury OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EDWARD DURANTE, a/k/a “Ted Wise,” a/k/a “Efran Eisenberg,” a/k/a “Yulia,” a/k/a “Ed Simmons,” was sentenced today to 216 months in prison for defrauding at least 100 investors of more than $15 million. DURANTE was also sentenced for his perjurious testimony during an SEC deposition. DURANTE pled guilty on August 23, 2016, to conspiracy to commit securities fraud, securities fraud, money laundering, and perjury. DURANTE was sentenced today by United States District Judge Andrew L. Carter Jr.
U.S. Attorney Geoffrey S. Berman said: “The fraud scheme for which Edward Durante was sentenced today began while he was still in prison from a prior securities fraud conviction. Durante returned to what he knew best, lying to investors – many of whom were retirees who lost their life savings – about how their money would be used, and concealing his manipulation of the securities market. Edward Durante is now a twice-sentenced securities fraud felon.”
According to the allegations contained in the Indictment filed against DURANTE and his co-conspirators, and statements made in related court filings and proceedings:
2001 Securities Fraud Conviction
In December 2001, DURANTE was convicted in federal court of conspiracy to commit securities fraud, wire fraud, and money laundering, as well as making false statements in connection with a market manipulation scheme in which the defendant also used the alias “Ed Simmons.” The defendant was sentenced to 121 months in prison and was released in or about 2009, the year he began the current scheme. In connection with that scheme, DURANTE was ordered to pay disgorgement and prejudgment interest totaling over $39 million. DURANTE was also barred from certain activities in connection with the securities industry, including the sale of securities.
Private Placement Securities Fraud Involving VGTL
After being released from prison, between 2009 and in or about March 2015, DURANTE and his co-conspirators fraudulently induced victims to invest in private shares of VGTL by, among other things, concealing from investors that DURANTE controlled the entities selling the shares; that DURANTE was prohibited from any association with the sale of securities; and that DURANTE was previously convicted of crimes related to a similar scheme to defraud. Furthermore, DURANTE and certain of his co-conspirators lied to investors by (a) representing that their investments would be used to fund the operations and growth of VGTL in connection with potential reverse mergers, when in reality no reverse mergers were ever consummated and investor funds were instead used primarily to benefit the defendants personally; and (b) representing that the investors would receive an eight percent dividend on their investments until their private shares could be sold at a promised premium on the public market, when, in reality, no interest payments were ever provided to the investors and many investors never obtained VGTL stock certificates or the ability to sell the stock. In order to fund his illegal scheme, DURANTE used a network of brokers, including co-conspirators Larry Werbel and Abida Khan, investment advisers in Cleveland, Ohio, and Los Angeles, California, respectively, to induce investors to buy shares of VGTL.
Manipulation of the Market for Shares of VGTL
DURANTE also engaged in a scheme to control and manipulate the publicly traded stock of VGTL in order to artificially inflate the stock price and trading volume so as to profit from his own sales of VGTL stock and to further induce investments in private shares of VGTL. To that end, through entities he controlled, DURANTE held a majority of the publicly traded stock of VGTL. DURANTE recruited co-conspirator Christopher Cervino, a broker, to open brokerage accounts associated with DURANTE-controlled entities and investors who were clients of Werbel and Khan, many of whom did not know that brokerage accounts under their names had been opened with Cervino. Werbel and Khan, along with DURANTE, induced their clients to purchase VGTL stock through Cervino – sometimes without the clients’ knowledge or permission – while DURANTE and Cervino ensured that many of these purchases were matched with sales of VGTL stock by DURANTE-controlled accounts. The result of these transactions was that DURANTE and his co-conspirators were effectively taking both sides of a single transaction in VGTL stock in order to artificially control VGTL’s stock price. The efforts of DURANTE and his co-conspirators to artificially inflate the market for VGTL increased the stock price from approximately $.25 per share in April 2012 to as much as $1.90, and dramatically inflated the trading volume, which increased DURANTE’s ability to raise private investments in VGTL. To compensate Cervino for his efforts to control and manipulate the market in VGTL, DURANTE made at least two cash payments to Cervino totaling $35,000. Moreover, DURANTE then laundered proceeds from the scheme to accounts controlled by him and his co-conspirators, concealing the true nature of these transactions by utilizing wire transfers among multiple accounts in the names of other individuals.
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In addition to the 18-year prison term, DURANTE, 64, was sentenced to three years of supervised release and ordered to forfeit $15,404,231.
Abida Khan and Christopher Cervino, each of whom was found guilty after trial of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud, and – with respect to Khan only – aggravated identity theft and investment adviser fraud, were sentenced on January 18, 2018. Khan was sentenced to 53 months in prison; Cervino was sentenced to one year and one day in prison. Larry Werbel, who pled guilty to conspiracy to commit securities fraud and to investment adviser fraud, does not have a final date for sentencing. Walter Reissman, another co-conspirator, pled guilty to conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and making false statements to federal officers. Co-conspirator Kenneth Wise pled guilty to conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Reissman and Wise were sentenced, on February 23, 2018, and March 6, 2018, respectively, to time served.
Mr. Berman praised the work of the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and thanked the Securities and Exchange Commission for its assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold and Rebecca Mermelstein are in charge of the prosecution.
Recidivist Defendant Pleads Guilty to Defrauding A Native American Tribe and Various Investors Through the Fraudulent Issuance and Sale of More Than $60 Million of Tribal BondsRead the Press Release
Robert Khuzami, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that GARY HIRST pled guilty today to defrauding a Native American tribal entity and various investment advisory clients of tens of millions of dollars in connection with the issuance of bonds by the tribal entity and the subsequent sale of those bonds through fraudulent and deceptive means. HIRST pled guilty to conspiracy to commit securities fraud, securities fraud, investment adviser fraud, and conspiracy to commit investment adviser fraud before U.S. Magistrate Judge Barbara Moses.
Mr. Khuzami said: “Today, Gary Hirst admitted that he and his co-conspirators placed tens of millions of dollars of Native American bonds with clients of an investment advisory firm, without telling those clients about numerous conflicts of interest surrounding the issuance and placement of the bonds. In addition, Hirst and his co-conspirators then misappropriated the bond proceeds, by failing to invest the money as promised and instead using it to finance their other business endeavors and to pay personal expenses. Now, thanks to the dedicated work of the U.S. Postal Inspection Service and the FBI, Hirst will have to answer for his crimes.”
According to the allegations contained in the Superseding Indictment filed against GARY HIRST and his co-conspirators and statements made in related court filings and proceedings[1]:
From March 2014 through April 2016, HIRST, along with his co-conspirators Jason Galanis, John Galanis, a/k/a “Yanni,” Hugh Dunkerley, Michelle Morton, Devon Archer, and Bevan Cooney, engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity (the “Tribal Bonds”), and to use funds in the accounts of clients of asset management firms controlled by HIRST and others to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market.
The WLCC was convinced to issue the Tribal Bonds through false and fraudulent representations by John Galanis. Once the Tribal Bonds were issued, HIRST and Morton used funds belonging to clients of two related investment advisers, Hughes Capital Management, Inc. (“Hughes”) – where HIRST served as Chief Investment Officer – and Atlantic Asset Management, LLC (“Atlantic”), to purchase the Tribal Bonds, even though HIRST and Morton were well aware that material facts about the Tribal Bonds had been withheld from clients in whose accounts they were placed, including the fact that the Tribal Bond purchases fell outside of the investment parameters set forth in the investment advisory contracts of certain Hughes clients and of the Atlantic pooled investment vehicle in which the Tribal Bonds were purchased. In addition, HIRST and his co-defendants failed to apprise clients of Hughes and Atlantic regarding substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
Hughes and Atlantic clients were provided no prior notice that HIRST and Morton caused them to purchase the Tribal Bonds. When these clients learned about the purchase of the Tribal Bonds in their accounts, several of them demanded that the Tribal Bonds be sold. However, because there was no ready secondary market for the Tribal Bonds, no Tribal Bonds have been sold from any Hughes or Atlantic client accounts.
Documents governing the Tribal Bonds specified that an investment manager would invest the proceeds of the Tribal Bonds in investments that would generate annuity payments sufficient to pay interest on the Tribal Bonds and provide funds to the WLCC to be used for tribal economic development purposes. In fact, none of the proceeds of the Tribal Bonds were turned over to the investment manager specified in the closing documents. Instead, significant portions of the proceeds were misappropriated by the defendants for their personal and professional use.
Specifically, the proceeds of the Tribal Bonds were deposited into a bank account in the name of Wealth Assurance Private Client Corporation (“WAPCC”), an entity controlled by HIRST and Dunkerley. Dunkerley transferred more than $38 million from the WAPCC account to an account controlled by Jason Galanis, who then misappropriated more than $8.5 million of the proceeds for his personal use, including for expenses associated with his home, jewelry and clothing purchases, travel and entertainment, and restaurant meals.
In addition, a portion of the misappropriated proceeds were recycled and provided by Jason Galanis to entities affiliated with Archer and Cooney in order to enable Archer and Cooney to purchase subsequent Tribal Bonds issued by the WLCC. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase.
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GARY HIRST, 65, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; one count of conspiracy to commit investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which also which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
Jason Galanis, 47, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; and one count of conspiracy to commit investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. On August 11, 2017, Galanis was sentenced principally to a term of 173 months in prison.
Hugh Dunkerley, 44, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; one count of bankruptcy fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and one count of falsification of records with the intent to obstruct a Government investigation, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Trial against the remaining defendants is scheduled to begin on May 22, 2018, before U.S. District Judge Ronnie Abrams.
The guilty plea in this matter is HIRST’s second conviction in this District on charges of securities fraud. On September 28, 2016, HIRST was convicted following a jury trial before U.S. District Judge P. Kevin Castel for several offenses relating to a scheme to manipulate the market for shares of Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange. In that case, HIRST was sentenced to a term of 78 months in prison.
Mr. Khuzami praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Brendan F. Quigley, and Negar Tekeei are in charge of the prosecution.
[1] As for the defendants who have not pled guilty (John Galanis, Michelle Morton, Devon Archer, and Bevan Cooney) the description of the charges set forth herein constitute only allegations.
Registered Sex Offender Sentenced to 30 Years in Prison for Sex Offenses Against Wisconsin MinorRead the Press Release
WASHINGTON - James A. Huskisson, aka Jason Desantes, 45, of Ozone Park, New York, was sentenced yesterday to 30 years in federal prison by Chief District Judge William C. Griesbach, announced United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin.
Huskisson, a registered sexual offender in the state of New York, initiated an online relationship with a Shawano, Wisconsin, 15 year-old using a popular online messaging system to correspond with the minor. Shortly after establishing contact, he began sending digital images of his genitalia, as well as demanding sexually explicit photographs from the child. Within two weeks of establishing contact, Huskisson travelled from his home in New York City to Shawano and engaged in illicit sexual activity with the minor victim.
Huskisson was convicted of first degree rape in 1997 and again in 1999 in New York, for which he was sentenced to seven years in prison, but was released after serving approximately five years. He was also required to register as a sexual offender for the remainder of his life.
In handing down the sentence, Chief Judge Griesbach noted the defendant’s “horrendous” record of sexual assaults. He further stated his belief that a 30 year sentence was both “just” and lengthy enough to protect the community, noting the uncertainty of Mr. Huskisson ever walking out of prison given his current age.
This case was investigated by the F.B.I.’s offices in Green Bay and New York City, the Shawano County Sheriff’s Office, the Shawano Police Department, the Brown County Internet Crimes Against Children (ICAC) Task Force, the New York Police Department, and the U.S. Marshal’s Service. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Prince George’s County Man Pleads Guilty to Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Greenbelt, Maryland – Jayron Khalil Foster, age 21, of Riverdale, Maryland, has pled guilty to production of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, between at least August 2016 through January 2017, Foster allegedly engaged in sexually explicit conduct with a 7-year-old female, in order to produce visual depictions documenting the abuse. In April 2017, Maryland State Police (MSP) began investigating ten tips that were sent to the MSP Internet Crimes Against Children (ICAC) task force from the National Center for Missing and Exploited Children in reference to possible child pornography. On April 25, 2017, investigators executed a search warrant at Foster’s residence and seized a hard drive, which contained numerous images and videos depicting Foster engaged in sexually explicit conduct with the minor victim.
Foster faces a mandatory minimum of 15 years in prison and up to 30 years in prison for the one count of production of child pornography. Foster is currently detained in Prince George’s County on related state charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI, Maryland State Police, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kelly O’Connell Hayes, who is prosecuting the case.
Port St. Lucie Resident Pleads Guilty to International Firearms TraffickingRead the Press Release
A Port St. Lucie resident pled guilty today to unlawfully exporting firearms, firearm accessories, and ammunition from South Florida to Rio de Janeiro, Brazil.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Ken J. Mascara, Sheriff, St. Lucie County Sherriff’s Office, made the announcement.
Frederik Barbieri, 46, of Port St. Lucie, Florida, pled guilty to one count of conspiracy to commit offenses against the United States, in violation of Title 18, United States Code, Section 371, and one count of unlicensed exportation of defense articles, in violation of Title 22, United States Code, Section 2778. Barbieri faces a possible maximum statutory sentence of 25 years in prison. Barbieri is scheduled to be sentenced on July 19, 2018, at 9:30 a.m., by United States District Court Judge Federico A Moreno.
According to stipulated facts filed in court, from May of 2013 through February of 2018, Barbieri conspired with others to: possess firearms with obliterated serial numbers; deliver packages containing those firearms to contract carriers for international shipment without providing notice that the packages contained firearms; and smuggle firearms, firearm accessories, and ammunition from the United States to Rio de Janeiro, Brazil.
During this period, a shipment sent by Barbieri was intercepted in Rio de Janeiro by Brazilian law enforcement and found to contain approximately thirty AR-15 and AK-47 rifles and firearm magazines, all concealed in four 38-gallon Rheem water heaters. The water heaters were hollowed out and loaded with the contraband, and the serial numbers on each of the firearms had been obliterated. The same day that Brazilian authorities intercepted his shipment, Barbieri called and requested that the freight forwarder destroy the related paperwork.
Documentation provided by the freight forwarder revealed Barbieri’s historical shipments. In addition to shipping the four Rheem water heaters in which he concealed approximately thirty rifles, Barbieri also shipped to Brazil an additional 120 Rheem water heaters, as well as 520 electric motors and 15 air conditioning units, from May of 2013 to May of 2017, using that freight forwarder. These items are all consistent with objects used to conceal the illegal international shipment of firearms and ammunition.
In February 2018, federal agents executed a warrant to search a storage unit rented by Barbieri in Vero Beach, Florida. In the storage unit, law enforcement discovered 52 rifles, 49 of which were wrapped for shipment with obliterated serial numbers. In addition, law enforcement discovered dozens of high capacity firearm magazines, over 2,000 rounds of ammunition, and packaging materials. Barbieri was arrested the following day.
It is illegal for civilians to possess firearms in Brazil. According to Brazilian law enforcement, AK and AR rifles have a black market value of approximately $15,000 to $20,000 in the black market. The retail cost of those firearms in the United States is approximately $700 to $1,000.
Neither Barbeiri, nor any of his coconspirators, obtained a license or written approval from the United States Department of State to export any defense articles. Non-automatic firearms, firearm accessories, and ammunition are articles designated as “defense articles,” pursuant to federal regulations.
Mr. Greenberg commended the investigative efforts of ICE-HSI, ATF, and CBP in connection with this matter. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pine Ridge Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Involuntary Manslaughter was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Brent Janis, age 22, was sentenced on May 8, 2018, to 37 months’ custody, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Janis was indicted for the charge by a federal grand jury in June 2016. The charge related to Janis driving a vehicle, while under the influence of alcohol, on April 8, 2016, at Pine Ridge. Janis lost control of the vehicle, which went into the ditch and rolled. Two individuals were ejected and killed in the crash.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Janis was ordered to self-report to a Bureau of Prisons facility upon designation of the facility where Janis will serve his sentence.
Physician, Nurse Practitioner, and Nurse Plead Guilty in Montgomery “Pill Mill” CaseRead the Press Release
Montgomery, Alabama – During the past few weeks, three more health care providers have pleaded guilty in the ongoing “pill mill” prosecution arising out of a now-closed Montgomery medical office, announced United States Attorney Louis V. Franklin, Sr. That medical practice was known as “Family Practice” and was located at 4143 Atlanta Highway in Montgomery. In November of last year, the practice’s owner, Dr. Gilberto Sanchez, pleaded guilty to drug distribution, health care fraud, and money laundering charges. The details of each new guilty plea are as follows.
On Friday May 11, 2018, Dr. Julio Delgado, 56, of Homewood, Alabama, pleaded guilty to aiding and abetting the fraudulent acquisition of controlled substances. According to court documents, Dr. Delgado worked for Sanchez at Family Practice during 2015 and 2016. During that time, Dr. Delgado saw some of Dr. Sanchez’s patients when Dr. Sanchez was too busy. In open court on May 11, Dr. Delgado admitted to writing a prescription for someone who was never his patient and without ever examining the person.
On Monday, April 23, 2018, Elizabeth Cronier, 70, of Montgomery, Alabama, also pleaded guilty to aiding and abetting the fraudulent acquisition of controlled substances. Court documents show that Cronier was a certified registered nurse practitioner and that she worked for Sanchez at Family Practice from 2016 to 2017. When she pleaded guilty, Cronier admitted to aiding and abetting a patient in obtaining a fraudulent prescription for buprenorphine.
On Monday, April 30, 2018, Stephanie Michelle Ott, 42, of Fairhope, Alabama pleaded guilty to conspiring to make false statements related to health care matters. The charging document states that Ott, a registered nurse, worked for Sanchez during 2015 and 2016, serving as a practice management consultant. Through her work, Ott helped to implement a new medical billing system for the practice. Ott did so knowing that the system she was implementing would cause the practice to report medical services provided by nurse practitioners as though physicians had provided the services. By doing so, the practice collected 15 percent more for each service than it would have had it accurately reported the qualifications of the health care providers.
Each defendant will be scheduled for a sentencing hearing over the next several months. At sentencing, Delgado and Cronier will face maximum sentences of four years in prison, as well as substantial monetary penalties. Ott will face a maximum sentence of five years in prison, along with the monetary penalties.
These guilty pleas now make eight defendants who have pleaded guilty to offenses arising out of the operation of this pill mill. The five defendants who pleaded guilty previously are: (1) Dr. Sanchez, as noted above; (2) Dr. Sanchez’s former partner, Dr. Shepherd A. Odom, who pleaded guilty to drug distribution and money laundering charges; (3) nurse practitioner Steven Cox, who pleaded guilty to drug distribution and health care fraud charges; (4) Misty Fannin, the practice’s former office manager, who pleaded guilty to money laundering; and (5) Farley Pugh, another former office manager, who pleaded guilty to conspiring to make false statements related to health care matters.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Internal Revenue Service’s Criminal Investigation Division, and the Department of Health and Human Services – Office of Inspector General. The Montgomery County Sheriff’s Office, the Alabama Board of Medical Examiners, the Montgomery Police Department, and the Opelika Police Department all assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross and R. Rand Neeley are prosecuting the case.
Phoenix Woman Sentenced to 51 Months in Prison for $852,000 Embezzlement Scheme, Filing a False Tax Return, and Failure to Appear in CourtRead the Press Release
PHOENIX - On May 11, 2018, Tara Kathleen Valencia, 38, of Phoenix, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 51 months’ imprisonment, followed by three years of supervised release. Valencia had previously pleaded guilty to filing a false tax return with the Internal Revenue Service, wire fraud, and failure to appear in court (bail jumping). Valencia was also ordered to pay $852,253 in restitution.
Between 2006 and 2012, Valencia had been employed in Phoenix by Arizona Exterminating Company (AEC) as the HR Administrator. During this time, she embezzled $852,253 from the company by using business credit cards and checks for her own personal use. Some of her unlawful personal expenses included a home, medical and insurance expenses, food, maid services, salon and fitness expenses, home renovations, and a swimming pool and spa for her personal residence. Valencia concealed her scheme to defraud by doctoring credit card and checking account records to make it appear as if these expenses were legitimate expenses incurred by the company.
In addition, Valencia filed false federal income tax returns for the 2008 through 2011 tax years wherein she failed to report her proceeds from the scheme to defraud.
Following her arrest on the indictment on July 20, 2015, Valencia was released on her own personal recognizance to reappear in Court, as required. In the Fall of 2015, Valencia fled to Mexico where she remained a fugitive from justice. The U.S. Marshals Service eventually located Valencia in Mexico where she was arrested by the Mexican authorities on Nov. 5, 2017, and was returned to the United States.
Valencia was ordered to pay $852,253 in restitution to AEC and $252,806 to the Internal Revenue Service in back income taxes plus penalties and interest.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation in Tucson, the United States Postal Inspection Service in Tucson, and the U.S. Marshals Service in Phoenix. The prosecution was handled by Wallace H. Kleindienst and Carolyn Nedder, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBERS: CR 15-0314-PHX-DJH/CR 16-1097-PHX-DJH
RELEASE NUMBER: 2018-065_Valencia
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.
Parmelee Man Sentenced for Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man convicted of Abusive Sexual Contact was sentenced on May 14, 2018, by U.S. District Judge Roberto A. Lange.
Harlan James Two Eagle, age 34, was sentenced to 12 months and 1 day in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Two Eagle was indicted by a federal grand jury on October 12, 2016. He pled guilty on February 8, 2018.
The conviction stems from an incident on December 22, 2015, when Two Eagle and the victim were drinking alcohol with several people in the White Horse Community, in Todd County, South Dakota. At one point, Two Eagle tried to touch the victim in a sexual manner. The victim told Two Eagle to stop, but he touched her in the groin and inner thigh area with his hand without the victim’s permission, and then stopped.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Two Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Northshore Contractor Charged with Conspiracy to Defraud First NBC BankRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JEFFREY DUNLAP, age 44, a resident of Slidell, Louisiana and owner of Phoenix Civil Contractors was charged yesterday with conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the Bill of Information, from March 2009 through April 2017, Phoenix Civil Contractors (“PCC”) and JEFFREY DUNLAP had a banking relationship with First NBC Bank. During that timeframe, Bank President A acted as the loan officer for PCC and JEFFREY DUNLAP, reviewing and approving new loans, lines of credit, and advances and incremental increases for PCC and JEFFREY DUNLAP. The largest loan was a revolving line of credit (“LOC”) secured by a borrowing base of eighty-percent of PCC’s accounts receivable. At the direction of Bank President A, JEFFREY DUNLAP submitted false financial statements and inflated accounts receivable on behalf of PCC to justify incremental increases on the LOC. Bank President A caused these false supporting documents to be placed in First NBC Bank’s records.
As alleged in the Bill of Information, the purpose of the conspiracy was for the defendant, JEFFREY DUNLAP, Bank President A, and others to unjustly enrich themselves, disguise the true financial status of PCC, and conceal the accurate performance of PCC’s LOC. The defendant, JEFFREY DUNLAP, Bank President A, and others sought to obtain money from First NBC Bank, in part, so that Bank President A and Owner B could continue using PCC on projects involving Company A, which was co-owned by Bank President A and Owner B. As a result, Bank President A and Owner B benefited by not having to use their own funds to pay PCC for work involving Company A.
The false and fraudulent financial statements, accounts receivable, and other documents submitted by JEFFREY DUNLAP disguised PCC’s true financial condition from First NBC Bank, bank regulators, investors, and others. By April 28, 2017, First NBC Bank had advanced approximately $22 million to PCC on the LOC, based on these false statements.
If found guilty, JEFFREY DUNLAP could face up to 30 years’ imprisonment, a fine of more than $1 million, five years of supervised release, and a special assessment of $100.
U.S. Attorney Duane A. Evans stated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation, Office of Inspector General, and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman and Hayden Brockett are in charge of the prosecution.
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Norridgewock Man Sentenced to 70 Months on Gun and Ammunition ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Vance Cayford, 47, of Norridgewock, Maine was sentenced today in U.S. District Court by John A. Woodcock, Jr. to 70 months in prison and three years of supervised release for possession of ammunition and attempted possession of a firearm by a felon. The defendant pled guilty on November 3, 2017.
According to court records, on May 29, 2016, state troopers went to the defendant’s Norridgewock residence to investigate a domestic disturbance. Soon after they arrived, the defendant ran toward one of the troopers and attempted unsuccessfully to take the trooper’s rifle. During a search of Cayford’s residence, troopers recovered 92 rounds of .45-caliber ammunition. The defendant was prohibited from possessing ammunition and firearms because of previous Maine felony convictions for domestic violence assault and illegal possession of a firearm.
The investigation was conducted by the Maine State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
New Haven Man Pleads Guilty to Distributing Heroin and FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEX BORRERO, also known as “Red,” 50, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession with intent to distribute, and distribution of, heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on February 28, 2017, the Wallingford Police Department and emergency medical personnel responded to a report of an untimely death of a 25-year-old male at a residence in Wallingford. At the scene, officers seized drug and non-drug evidence, including the victim’s cellphone and six empty wax folds bags that contained a white powder residue.
The Connecticut Office of the Chief Medical Examiner determined that the victim’s death was caused by a combination of fentanyl and alprazolam (Xanax).
The investigation revealed that BORRERO, who had been selling heroin and fentanyl in the New Haven area, was the source of the fentanyl involved in the overdose death of the victim. The investigation also revealed that another of BORRERO’s drug customers, a 31-year-old male, died of an overdose in Branford on May 18, 2017.
BORRERO was arrested on a federal criminal complaint on October 23, 2017. At the time of his arrest, he possessed approximately 30 grams of heroin and approximately $1,900 in cash.
Judge Underhill scheduled sentencing for August 7, 2018, at which time BORRERO faces a maximum term of imprisonment of 30 years. BORRERO is released on a $50,000 bond pending sentencing.
BORRERO’s criminal history includes multiple convictions, including a federal conviction for conspiracy to possess with intent to distribute heroin. In 1998, he was sentenced in the U.S. District Court for the Middle District of Florida, in Orlando, to 188 months of imprisonment. He was released from federal prison in 2011.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Wallingford and Branford Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Michael S. McGarry.
Morris County Man Admits Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey man today admitted distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Mark Derzko, 74, of Mine Hill, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of distribution of child pornography. Derzko remains on bail pending sentencing.
According to documents filed in the case and statements in court:
Derzko used a peer-to-peer file-sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. In May, August and September of 2016, law enforcement downloaded more than two dozen videos of child sexual abuse from Derzko’s computer. After executing a search warrant at Derzko’s home in October 2016, agents located more than 2,000 videos and over 8,000 images of child sexual abuse on Derzko’s computers. Derzko admitted that he was making available for others to download videos he had previously saved on his computer.
The distribution of child pornography charge to which Derzko pleaded guilty carries a maximum potential penalty of 20 years in prison, a mandatory minimum sentence of five years in prison and a $250,000 fine. Derzko will be required to register as a sex offender. Sentencing is scheduled for Aug. 28, 2018.U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Newark Acting Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea. He also thanked the Morris County Prosecutor’s Office and the Wharton, New Jersey, Police Department for their assistance with the case.
The government is represented by Senior Litigation Counsel Mark J. McCarren of the U.S. Attorney’s Special Prosecutions Division in Newark.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
Missouri Woman Sentenced in Birmingham to 19 Years in Prison for 2016 Multi-State Crime SpreeRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Missouri woman to more than 19 years in prison for conspiracy and armed carjackings connected to a four-state crime spree in 2016 that ended with her partner’s death in a shoot-out with police in Florida, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Judge Madeline Hughes Haikala sentenced BRITTANY NICOLE HARPER, 32, of Joplin, Mo., to 19 years and three months in prison on one count of conspiracy to transport a stolen vehicle across state lines, two counts of transporting a stolen vehicle across state lines, three counts of carjacking and one count of brandishing a gun during a crime of violence. Harper pleaded guilty to the charges in January. In exchange for Harper’s plea, the government agreed to drop a second count of brandishing a gun during a crime of violence.
“Harper and her companion crossed four states violently threatening the lives of innocent people,” Town said. “This was a rampage, not a crime spree, and the 20 years Harper will spend behind bars compares well to the grave fate suffered by her co-conspirator as a result of their shared malevolence.”
“Harper, who with her partner moved through four states carjacking vehicles and terrorizing citizens, thankfully, no longer poses a threat,” Sharp said. “Today’s sentence guarantees Harper will spend many years behind bars to face the consequences of her actions.
“For days the world watched as Harper and her boyfriend, Blake Fitzgerald, acted out some criminal fantasy of being a modern day Bonnie and Clyde, but the consequences of their actions in the Northern District of Alabama were very, very real,” said Assistant U.S. Attorney Erica Williamson Barnes. “Early on a Sunday morning, Harper and Fitzgerald kidnapped a young motel clerk in Tuscaloosa and forced him to ride along with them for over an hour; they pointed a gun at a restaurant employee trying to get to work in a busy shopping district; and they invaded a normally sleepy residential neighborhood and kidnapped a mother in her nightgown away from her two young children,” Barnes said. “Harper did not wield the gun, but she played an active role in terrorizing these three victims and the Northern District as a whole. The sentence imposed today holds her accountable for that and sends the message that there is nothing romantic about violent crime.”
The conspiracy between Harper and her male companion was “to unlawfully obtain vehicles, by whatever means necessary,” including acts of violence, and then to use the stolen vehicles as transportation between various states, according to federal court records.
Police arrested Harper in Milton, Fla., on Feb. 5, 2016, after a face-off with police in which her partner was shot and killed and she was wounded.
The couple launched a 10-day crime spree in Webb City, Mo., on Jan. 26, 2016, when they took a 2009 Cadillac on a test drive from a dealership and never returned. Before arriving in Alabama, the couple burglarized a home in Missouri, where they parked the stolen Cadillac in the garage and stole a 2007 Chevrolet Trailblazer parked at the home.
The crimes Harper and her co-conspirator committed in Alabama, according court records, included:
Stealing an air pump at the Walmart in Bessemer on Jan. 30, 2016, before driving the Trailblazer to Tuscaloosa, where they forced a motel clerk at gunpoint into the backseat of his 2011 Volkswagen Jetta. Harper and her companion drove the Jetta to Hoover on Jan. 31, 2016, and tried, unsuccessfully, to take a Camaro from a McDonald’s employee, and then released the motel clerk in Vestavia Hills.
Soon after releasing the clerk, Harper’s companion entered a home on Monte Vista Drive in Vestavia Hills, where he encountered one of the home owners and his minor children. The co-conspirator put a gun to the man’s neck and began forcing him toward the garage, but the man got free and went for help. The co-conspirator then forced the man’s wife at gunpoint into the homeowners’ 2010 Ford Edge and drove away.
Harper and her companion released the woman near the Grandview Medical Center on Cahaba River Road in Birmingham, and then drove the stolen Ford Edge to Perry County, Ga.
The indictment lists other crimes in Georgia and Florida before Harper’s arrest following a high-speed chase through neighborhoods in Milton, Fla., after police confronted the couple.
The FBI investigated the case, which Barnes and Assistant U.S. Attorney Brad Felton prosecuted.
Missouri Man Pleads Guilty in $3.4 Million Real Estate Investment Scheme that Targeted Orange County InvestorsRead the Press Release
SANTA ANA, California – A Missouri man who formerly served as a law enforcement reservist has pleaded guilty to a federal fraud offense and admitted operating a real estate scheme in Orange County that bilked dozens of Southern California investors who collectively suffered approximately $3.4 million in losses.
Shawn Patrick Watkins, 48 – who resided in Layton, Utah during the course of the fraud, but has since relocated to Branson, Missouri – pleaded guilty on Monday to one count of mail fraud.
Watkins pleaded guilty before United States District Judge Cormac J. Carney, who scheduled a sentencing hearing for November 19.
A second person involved in the scheme – Angel Bronsgeest, 55, of Lake Forest – previously pleaded guilty to one count of wire fraud and is also scheduled to be sentenced by Judge Carney on November 19.
According to court documents, Watkins promoted himself as a real estate expert with a background in law enforcement and engineered a scheme that defrauded more than 50 victims. Watkins admitted in his plea agreement that he conducted monthly seminars in which he offered investments in his company, The Equity Growth Group (TEGG) from at least 2007 to at least October 2013. Victims were told their money would be used to acquire or to repair properties. Some investors were asked to provide “bridge loans” to allow TEGG to acquire certain properties when money from another investor had not been received.
Watkins made a number of false promises to investors. For example, investors were falsely advised that TEGG controlled hundreds of properties that generated rental income and that TEGG would continue its growth by acquiring new properties. Investors were led to believe that they would receive substantial interest payments and that their money would be secured by collateral through the filing of deeds of trust on properties.
In reality, over the course of several years leading up to the collapse of TEGG, the company was not acquiring new properties and had a negative cash flow. Investor money was not used to acquire new properties, nor were investments secured by collateral, and many victims did not receive interest payments. In fact, money that was paid to some victims as purported interest or a return on their investment came from investments made by other victims. Investor funds also were used to pay salaries and other expenses, including mortgages on three homes Watkins purchased and were being occupied by Watkins, his parents and his estranged wife and children.
As a result of his guilty plea, Watkins faces a statutory maximum penalty of 20 years in federal prison.
The cases against Watkins and Bronsgeest are the result of an investigation by the Federal Bureau of Investigation.
The prosecution of these cases is being handled by Assistant United States Attorney Greg Staples of the Santa Ana Branch Office.
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Jeronimo Alvarez-Santiago, age 19, and a citizen of Mexico, was sentenced today to time served (4 months in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Alvarez-Santiago admitted that he was removed from the United States to Mexico on May 30, 2017. On January 9, 2018, ICE Officers arrested Alvarez-Santiago in Albany.
Following his sentencing today, Alvarez-Santiago was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Abel De Jesus-Gonzalez, age 24, and a citizen of Mexico, was sentenced today to time served (19 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, De Jesus-Gonzalez admitted that he was removed from the United States to Mexico on January 22, 2018. On April 26, 2018, ICE Officers arrested De Jesus-Gonzalez in Albany.
Following his sentencing, De Jesus-Gonzalez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Maryland Man Pleads Guilty to Exploiting 12-Year-Old Girl over the InternetRead the Press Release
A Rockville, Maryland man pleaded guilty today to exploiting a 12-year-old Virginia girl by using the Internet to coerce and entice her to engage in illegal sexual activity.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Washington, D.C., made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia.
Jose Adalberto Sandoval Quinonez, 26, pleaded guilty to one count of coercion and enticement of a minor to engage in sexual activity. According to admissions made in connection with his guilty plea, Sandoval initiated contact with the 12-year-old victim over Instagram and the two later began chatting over Google Hangouts. Over the course of several months in 2017, Sandoval used Google Hangouts to groom, persuade, and entice the minor to engage in sex acts, including sexual intercourse. In addition, he repeatedly asked her to produce and send him sexually explicit photos of herself, and he succeeded in persuading her to send him such a photo. Sandoval also sent the victim an image of his penis. During these interactions, Sandoval, who was 25 at the time, pretended to be 16 years old.
Sentencing is scheduled for Aug. 10.
HSI investigated the case with the assistance of the City of Manassas Park Police Department. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney D. Russell of the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Man Pleads Guilty to Exploiting 12-Year-Old Girl over InternetRead the Press Release
ALEXANDRIA, Va. – A Rockville, Maryland man pleaded guilty today to exploiting a 12-year-old Virginia girl by using the Internet to coerce and entice her to engage in illegal sexual activity.
According to court documents, Jose Adalberto Sandoval Quinonez, 26, initiated contact with the 12-year-old victim over Instagram and the two later began chatting over Google Hangouts. Over the course of several months in 2017, Sandoval used Google Hangouts to groom, persuade, and entice the minor to engage in sex acts, including sexual intercourse. In addition, he repeatedly asked her to produce and send him sexually explicit photos of herself, and he succeeded in persuading her to send him such a photo. Sandoval also sent the victim an image of his penis. During these interactions, Sandoval, who was 25 years old at the time, pretended to be 16 years old.
Sandoval Quinonez pleaded guilty to one count of coercion and enticement of a minor to engage in sexual activity, and faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison when sentenced on August 10. 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.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Washington, D.C., made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Whitney Doherty Russell and Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
HSI investigated the case with the assistance of the City of Manassas Park Police Department.
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 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-145.
Larry Wayne Price Jr. Arrested on Federal Criminal ComplaintRead the Press Release
Abingdon, VIRGINIA – A Bluefield, Virginia man, who was reported missing by his wife in April, has been arrested and charged in a federal criminal complaint filed in U.S. District Court in Abingdon with making false statements regarding claims he was kidnapped, United States Attorney Thomas T. Cullen announced today.
Larry Wayne Price Jr., 38, was arrested Thursday, May 10, 2018 on a federal criminal complaint and charged with one count of knowingly and willfully making materially false, fictitious and fraudulent statements and representations. At the conclusion of a lengthy hearing on Friday, May 11, 2018, Hon. Pamela Meade Sargent ordered that the defendant remain in custody until he posts a $500,000 secured bond and arrangements are made to allow for GPS tracking of his whereabouts.
According to the criminal complaint and affidavit, Price’s wife reported him missing at 1:58 a.m. on April 14, 2018 to the Bluefield, Virginia Police Department. The Bluefield PD, along with the Tazewell County Sheriff’s Office began an intense missing person’s investigation that would later include the Virginia State Police’s helicopter resources, canine resources and hundreds of federal, state, and local investigative man-hours.
At approximately 9:00 p.m. on April 14, 2018, Price was located by a driver who noticed him on the side of the road on Route 61 near Gratton, Virginia. Price was taken to the hospital and interviewed by a Bluefield Police Department detective. Price told the detective he was kidnapped by two, unknown white males, drugged and held against his will until he was thrown out of a van near where he was found. In addition, Price told the detective he was taken from Tazewell County, Virginia to a business he owns, Hawg Pit Cycles in West Virginia, where he believed his keys were taken and the store’s safe was robbed. Price said the unknown men pointed a gun at him, searched his pockets, and took his pocketknife and his 9 mm Sig firearm.
According to the affidavit, these statements of the defendant and other statements that he made to federal law enforcement agents were false because Price was, in fact, consensually with another person during the time period he claimed to be kidnapped.
The investigation of the case was conducted by the Bluefield Virginia Police Department, Tazewell County Sheriff’s Office, Virginia State Police, Federal Bureau of Investigation, the U.S. Marshal’s Service and Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Randy Ramseyer will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Kansas U.S. Attorney Honors National Police WeekRead the Press Release
KANSAS CITY, KAN. – National Police Week is a time for all Kansans to stop and remember the federal, state and local law enforcement officers who do the difficult and dangerous work of keeping making our communities safer, U.S. Attorney Stephen McAllister said today.
“Law enforcement officers don’t run from danger – they run toward it,” McAllister said. “I want to commend them for their courage, skill and professionalism. They make sacrifices to benefit us all, sometimes the ultimate sacrifice. The excellent men and women in blue deserve our support and gratitude.”
McAllister called on Kansans to join him in honoring the memories of the law enforcement officers fallen in the line of duty and to pray for their families. According to the FBI’s national statistics, 93 law enforcement officers were killed in the line of duty in 2017.
In October 1962, Congress passed, and President Kennedy signed, a joint resolution declaring May 15 as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is being observed this year from May 13 through May 19, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
Last week, Attorney General Jeff Sessions made a statement to law enforcement officers.
“My goal is to support you, to empower you, and to unleash you and your law enforcement partners to apply the good and lawful policies that are proven to make our communities safer,” Sessions said. The attorney general went on to talk about the need to focus on proven policies that reduced crime all over this country: community-based policing, incarcerating serious repeat criminals, new technologies, more officers, and more prosecutors.
Justice Department Reaches Agreement with the City and County of Denver to Resolve Disability Discrimination ComplaintRead the Press Release
The Justice Department today announced that it reached an agreement with the City and County of Denver, Colorado, (Denver) to resolve its lawsuit alleging that the Denver Sheriff Department discriminated against a long-time Deputy Sheriff on the basis of his disability, insulin-dependent diabetes. The Justice Department’s complaint alleges that Denver failed to engage in an interactive process with the employee to determine an appropriate accommodation, failed to reasonably accommodate his disability, and then terminated him, in violation of the Americans with Disabilities Act (ADA).
Under the agreement, Denver will revise its reasonable accommodation policies and procedures, and will conduct training on the ADA for Sheriff Department supervisors, command staff, and human resources personnel. In addition, Denver will pay $100,000 in compensatory damages to the employee.
“The ADA generally requires employers to provide reasonable accommodations to employees with disabilities, including those with chronic conditions like insulin-dependent diabetes,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We commend the City and County of Denver Sheriff Department for committing to changing its policies, training its staff, and compensating the employee.”
This matter was based on a referral from the Equal Employment Opportunity Commission’s Denver Office, which completed the initial investigation of the facts.
To read the settlement agreement, please click here, and to read the complaint, please click here. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the Civil Rights Division’s Disability Rights Section, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Announces Improvements to Public Safety Officers’ Benefits ProgramRead the Press Release
Today, the U.S. Department of Justice announced improvements to the Public Safety Officers’ Benefits Program (PSOB), including provisions that address claims involving fatal heart attacks, strokes, and vascular ruptures, and claims involving officers injured in the attacks on September 11, 2001.
"At this Department of Justice, we back the blue," said Attorney General Sessions. "Officers killed or wounded in the line of duty and their families deserve our gratitude and our support. That's why we are determined to make improvements to the Public Safety Officers' Benefits Program, which provides for them when they need it most. We are making it simpler to apply for benefits for those who are injured. We have already made significant progress in reducing the time for application processing. Now, we are also doing our part to help some of the brave first responders who are suffering from the effects of the September 11th terrorist attacks. We will continue our efforts to improve officer safety and well-being—because these heroic Americans put their lives on the line for us every day."
The Public Safety Officers’ Benefits (PSOB) Program provides death and education benefits to the eligible survivors of fallen law enforcement officers, firefighters, and other first responders, and disability benefits to officers catastrophically injured in the line of duty.
The final rule announced today streamlines provisions related to claims for certain heart attack, stroke, and vascular rupture cases, and clarifies that injuries sustained by certain law enforcement and firefighter trainees are covered by the Program. The rule also aligns the PSOB Program with certain provisions under the World Trade Center (WTC) Health Program and the September 11th Victim Compensation Fund (VCF), in addition to addressing other gaps in regulations, and improving the efficiency of the PSOB Program claims process.
Improvements and updates to the Program include:- Heart Attack, Stroke, and Vascular Rupture Claims: The new rule helps implement a change in the law that reduces the need in many cases for families to submit difficult-to-find and costly medical records for their loved ones. This regulatory change alone positively impacts nearly one-third of the PSOB death claims filed each year.
- Filing Process: The new rule includes administrative updates to make filing claims more straightforward and less burdensome for survivors and public safety agencies.
- Law Enforcement and Firefighter Trainees: Recognizing the dangerous nature of law enforcement and fire suppression, and the rigorous training required to help keep communities safe, the new rule clarifies the coverage of certain individuals fatally or catastrophically injured during formal training provided by law enforcement and fire academies.
- September 11th Exposure Claims: The new rule facilitates the PSOB Program’s medical examiners’ review of the nearly 150 claims pending for certain public safety officers who responded to the September 11th attacks to assist in rescue, recovery, and clean-up efforts, and who were exposed to hazards and toxins resulting from the attacks.
The final rule can be found here: https://www.federalregister.gov/documents/2018/05/15/2018-09640/public-safety-officers-benefits-program.Jury Convicts Texas Man of $19 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Texas man was convicted by a federal trial jury today of his role in an elaborate, multi-million-dollar fraud scheme in which conspirators impersonated North Kansas City-based Cerner Corporation in business and legal activities.
Suresh Mitta, also known as Suresh Reddy or Mitta Suresh, 50, of Richardson, Texas, was found guilty of the single count of conspiracy to commit wire fraud contained in a Nov. 16, 2016, federal indictment.
Mitta was the chief technology officer (CTO) for several related entities owned and operated by Albert Davis, 57, also of Richardson. Conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor. Multiple victims suffered millions of dollars in losses from Aug. 25, 2008, to Feb. 19, 2015.
Criminal conduct involved perjured testimony, doctored trial exhibits, a manipulated multi-million dollar civil verdict, the use of fake people with fake email accounts, impersonated companies, fake business documents and a phalanx of over 70 entities with more than 50 bank accounts.
Davis, who pleaded guilty to leading the conspiracy in a separate but related case, was sentenced to 12 years in federal prison on April 24, 2017. The court also ordered Davis to pay $19,151,555 in restitution to the victims of his fraud scheme. Four additional co-conspirators (in separate but related cases) also have pleaded guilty and been sentenced.
In order to impersonate Cerner Corporation, Conspirators created a fake Cerner business entity for a similarly-named company, Cerner, LLC. Conspirators opened a fake Cerner bank account, registered a fake Cerner Internet domain and leased virtual office space for a fake Cerner address in Kansas City, Mo. They created fictitious employees from Cerner Corporation – including both fictitious identities and impersonating actual employees – to communicate with others. Conspirators fabricated documents, price quotes, agreements and invoices, which were all made to appear to be authentic Cerner Corporation documents, when they were not.
Conspirators impersonated Cerner Corporation in the fraudulent sale of a purported newly developed MRI system to Dallas Medical Center (DMC), which paid over $1 million to what they believed was Cerner Corporation, but which turned out to be nothing more than one of Davis’ shell companies.
Evidence introduced during the trial indicated that Mitta, impersonating a Cerner employee, represented himself as the company’s senior physicist in meetings with the president of DMC and their attorneys.
When DMC was not acting quickly enough on the deal, conspirators created fake e-mail accounts for prominent cardiologists in Dallas. Conspirators then used these fake email accounts to draft e-mails, which stated that these cardiologists could not wait to get the MRI system at DMC. Conspirators then forwarded these e-mails to DMC, which created the impression of demand for the system at DMC. Conspirators also provided “references” for DMC to check, which turned out to be more fake doctors and co-conspirators playing the role of satisfied business partners.
Conspirators provided false and misleading information and testimony during the litigation of several lawsuits. The false and misleading testimony was regarding business deals where the conspirators had impersonated Cerner Corporation.
For example, when Dallas Medical Center learned of the fraud, Davis sued them (iHeart Care DMC Holdings, LLC. v. Dallas Medical Center, LLC., et al., Cause No. 13-09460, in Dallas County, Texas). Davis, Mitta, and others then provided false testimony in depositions in the resulting lawsuit.
According to court documents, the Dallas Medical Center scheme was just a sliver of the fraud Davis, Mitta and their co-conspirators committed.
In another example, conspirators brought a lawsuit against Korean company ISOL Technology. After testifying falsely about business dealings with Cerner Corporation and offering fake exhibits to support his claim of damages, conspirators received a jury award of $24 million in the 2014 trial in LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428-LED, in the Eastern District of Texas. When the fraud was discovered, attorneys for ISOL Technology filed an emergency motion for sanctions against LBDS (Davis’ company).
In addition to impersonating Cerner Corporation, conspirators used additional e-mail accounts to impersonate business entities and physicians in order to send communications designed to manipulate others in business transactions.
Additionally, conspirators solicited investments using fabricated communications and documents from entities they created, including the entity created to impersonate Cerner Corporation. Those misrepresentations included false financial documents, altered MRI images and false claims that used MRI systems were newly developed technology. Conspirators solicited millions of dollars in investments from physicians and other investors.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about two hours before returning the guilty verdict to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, May 7, 2018.
Under federal statutes, Mitta is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Matthew P. Wolesky and Paul S. Becker, in cooperation with Assistant U.S. Attorney Nathaniel Kummerfeld of the Eastern District of Texas. It was investigated by the FBI.
Judge Sentences Coraopolis Woman to Two Years in Prison for Conspiring to Distribute PainkillersRead the Press Release
PITTSBURGH, Pa. – An Allegheny County resident has been sentenced in federal court to 25 months of incarceration and three years of supervised release on her conviction of conspiring to possess and distribute opiate painkillers, oxycodone and oxymorphone, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Chani Watkins, 26, of Coraopolis, Pennsylvania.
According to information presented to the court, Watkins participated in a criminal network of drug dealers that obtained opiate pain killers and then illegally distributed them to users in the Pittsburgh area. Watkins distributed opiate pills to, and collected money from, Kavon Dawkins, one of the primary dealer in the conspiracy. Dawkins is presently awaiting sentencing.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Watkins.
Joplin Man Sentenced to 12 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for receiving and distributing child pornography.
Michael Eden, 36, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole. The court also sentenced Eden to 10 years of supervised release following incarceration.
On Dec. 4, 2017, Eden pleaded guilty to receiving and distributing child pornography.
According to court documents, the investigation began on June 20, 2016, when a Joplin police officer responded to a call involving the sexual exploitation of a 12-year-old child. The child victim had been receiving text messages from Eden, who indicated he had romantic feelings for the child. The child’s mother was told about the text messages after Eden asked the child victim to send him pictures. A forensic examination of the child’s phone revealed numerous inappropriate text messages sent by Eden to the child.
After Eden was interviewed by investigators, law enforcement officers seized his cell phone as well as a laptop computer, nine hard drives and a USB flash drive from his home. Eden admitted that he received images and videos of child pornography from another person through the Kik application on his phone, and that he had also transmitted child pornography to others via Kik.
Investigators discovered 70 images of child pornography on Eden’s cell phone and several hundred images of child pornography on his computer. The images depicted children as young as toddlers engaged in sexually explicit conduct.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Joplin, Mo., Police Department and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jefferson County man indicted for bank robberiesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Charles Town, West Virginia man was indicted by a federal grand jury today on bank robbery charges, United States Attorney Bill Powell announced.
Ryan Stepanian, age 26, was indicted on two counts of “Bank Robbery.” Stepanian is accused of taking $530 from the BB&T Bank in Ranson, West Virginia on January 19, 2018. He is also accused of taking $14,890 from the City National Bank of Charles Town, West Virginia, on January 22, 2018.
Stepanian faces up to 20 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the cases on behalf of the government. The Federal Bureau of Investigation, the Ranson Police Department, and the Charles Town Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Indiana Man Sentenced to 66 Years in Prison for Child Sexual Exploitation, Travel to Illinois to Engage in ExploitationRead the Press Release
URBANA, Ill. – A Crawfordsville, Ind., man has been ordered to serve 66 years in federal prison for sexual exploitation of a child and travelling to Vermilion county, Ill., to engage in sexual activity with a minor. On May 14, Nehemiah Lafoe, 23, was sentenced to three consecutive sentences of 22 years for a total sentence of 66 years in federal prison. Upon release from prison, Lafoe was ordered to remain on supervised release for life. Lafoe has remained in the custody of the U.S. Marshals Service since his arrest on Sept. 27, 2017.
On Jan. 16, 2018, Lafoe pleaded guilty to two counts of sexual exploitation of a child and one count of travel with intent to engage in illicit sexual conduct. Lafoe admitted that in June 2017, on two occasions, he enticed a minor to engage in sexually explicit conduct to produce an image of the conduct and to transmit the image in interstate commerce. Lafoe further admitted that on May 23, 2017, he traveled from Indiana to Illinois for the purpose of engaging in sexual acts with a minor. According to documents filed with the court, Lafoe communicated with the minor through a popular social networking application.
Lafoe is the fourth defendant sentenced for child exploitation and child pornography offenses since early April in federal court in Urbana. The four unrelated cases were investigated by the FBI and the Illinois State Police. Assistant U.S. Attorney Elly M. Peirson prosecuted the cases.
Three east central Illinois men, also charged as the result of investigations led by the FBI, have been sentenced for child pornography crimes as follows:
Gary F. Beals, 44, of Trilla, in Coles county, sentenced April 13, to 60 months (five years) in prison, followed by five years of supervised release. On Oct. 24, 2017, Beals pleaded guilty to distribution of child pornography, and has remained in custody since his June 28, 2017, arrest.
Michael J. Mann, 47, of Momence, in Kankakee county, sentenced April 9, to 121 months (10 years, 1 months) in prison for distributing, receiving, and possessing child pornography. Following Mann’s prison term, he was ordered to remain on supervised release for 15 years. In December 2017, Mann entered a plea of guilty to the indictment, and has remained in custody since his Aug. 4, 2017, arrest.
Joshua L. Hazelbaker, 41, of Fithian, a rural Vermilion county community, sentenced April 6, to 126 months (10 years, 6 months) in federal prison, followed by 15 years of supervised release, for receiving and possessing child pornography. Hazelbaker pleaded guilty to the charges on June 22, 2017, and has remained in custody since he was arrested on Nov. 16, 2016.
The cases were 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 the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Illinois Man Pleads Guilty to Unlawfully Possessing a Gun in DubuqueRead the Press Release
An unlawful user of cocaine and marijuana who possessed a loaded handgun and shot at a building in Dubuque, Iowa, pled guilty today in federal court in Cedar Rapids.
Ricardo Sanchez, age 32, from for Forest City, Illinois, was convicted of one count of possession of a firearm by an unlawful user of controlled substances.
At the plea hearing, Sanchez admitted that he was in Dubuque on November 27, 2017. He further admitted that he possessed a 9mm pistol and at least
9 rounds of ammunition. Sanchez was an unlawful user of both cocaine and marijuana.
Evidence at a prior detention hearing showed that in the early morning hours of November 27, 2017, Sanchez arrived at a club in downtown Dubuque. After entering the club, Sanchez got into an argument with the club owner. He then left the club and returned to his vehicle. Sanchez is then seen on traffic camera video retrieving something from his vehicle. He then returned to outside the club, which was occupied, and fired a handgun towards the building multiple times. Police later recovered 9 spent 9mm shell casings from the area of the shooting. After firing the handgun, Sanchez returned to his vehicle and drove from Dubuque into Illinois. He was arrested later on November 27 in Galena, Illinois. Police recovered the 9mm pistol from along the road outside of Galena.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Sanchez remains in custody of the United States Marshal. Sanchez faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tony Morfitt and was investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, and Firearms, the Galena Police Department, and the Jo Daviess County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1003.
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Harrison County men face methamphetamine chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremiah R. Dodrill, of Spelter, West Virginia, and Jacob Renard White, of Clarksburg, West Virginia appeared today before a federal magistrate judge to face charges involving methamphetamine distribution, United States Attorney Bill Powell announced.
Dodrill, age 36, and White, age 30, were indicted on May 1, 2018 by a federal grand jury sitting in Clarksburg. Dodrill and White were each indicted on one count of “Conspiracy to Possess with Intent to Distribute and Distribute Methamphetamine,” and two counts of “Distribution of Methamphetamine.” Dodrill is facing an additional count of “Distribution of Methamphetamine.”
Dodrill and White are accused of selling methamphetamine in February of 2017 in Harrison County. Dodrill is also accused of selling methamphetamine in March 2017 in Harrison County.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the cases on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge Michael John Aloi presided.
Harrison County man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Wayne Wiles, Jr., of Clarksburg, West Virginia, has admitted to a firearm charge, United States Attorney Bill Powell announced.
Wiles, age 31, pled guilty to one count of “Unlawful Possession of a Firearm.” Wiles, having previously been convicted of three felonies, admitted to having a 9mm pistol, a .380-caliber pistol, and .243 caliber rifle in January 2018 in Harrison County.
Wiles faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrison County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Raquel De Jesus Mendez-Vasquez, age 28, and a citizen of Guatemala, was sentenced today to time served (57 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Mendez-Vasquez admitted that he was removed from the United States to Guatemala on April 4, 2013. On March 19, 2018, ICE Officers arrested Mendez-Vasquez in Hillsdale, Columbia County, New York. Mendez-Vasquez was also removed to Guatemala on May 5, 2008.
Following his sentencing, Mendez-Vasquez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Glendale Police Officer Arrested on Federal Charges of Lying to Federal Agents Investigating His Ties to Organized CrimeRead the Press Release
LOS ANGELES – Agents and officers associated with an FBI-led task force late this afternoon arrested a Glendale Police officer on federal charges of making false statements during interviews with investigators who were probing his connections to the Mexican Mafia and Armenian organized crime.
Detective John Saro Balian, 45, of Seal Beach, was taken into custody without incident at his residence.
Balian, who is charged in a criminal complaint with making false statements to investigators during an interview last year, is expected to make his initial appearance Wednesday afternoon in United States District Court in Los Angeles.
According to the complaint, which was filed Monday and unsealed after his arrest, Balian was interviewed by several law enforcement agencies over a six-month period in 2017 and repeatedly made false statements and misrepresentations about his links to criminal figures.
For example, Balian lied during an April 2017 interview with an FBI agent and Los Angeles Police Detectives “in an effort to hide his associations and criminal collaborations with gang members, the Mexican Mafia and Armenian organized crime,” according to an affidavit signed by a special agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
The complaint alleges that Balian lied to mislead investigators about his relationship with a gang member – Jose Loza, a Mexican Mafia member and the “shotcaller” of the Canta Ranas street gang, who is currently facing federal racketeering charges – even though at the time “Balian was communicating with Loza via a burner cell phone to discuss jointly undertaken criminal activities.”
During a second interview in June 2017 with the FBI and the Department of Homeland Security, Office of the Inspector General, Balian allegedly lied about accepting money to locate individuals who may have been associated with a burglary at the offices of a convicted felon who later became an informant. According to the affidavit, not only did the informant report paying Balian to locate two men who may have stolen property from the informant’s office, Balian sought to obtain information about one of the men from a deputy United States marshal, and text messages between the informant and Balian documented the arrangement.
The complaint also accuses Balian of lying during an August 2017 interview with authorities who asked about his receipt of money from the informant and Balian’s relationships with several Hispanic gang members. Balian not only knew Hispanic gang members, including Loza, he also “texted them, provided them pre-paid cellular phones, and met with them in person,” the affidavit states.
During a fourth interview in October 2017 with an HSI agent and an FBI task force officer, Balian allegedly lied, among other things, about previously having met Loza, the complaint alleges. This conduct forms the basis for the false statements charge alleged in the complaint.
“Cases involving corrupt public officials – and particularly those involving crimes allegedly committed by police officers – are among the most difficult and troubling matters we see,” said United States Attorney Nicola T. Hanna. “We rely on law enforcement officers to uphold their oaths to faithfully serve their communities. If the allegations in this case are proven, this police officer provided meaningful support to criminal enterprises, and his attempts to cover up his associations served to obstruct justice.”
“The defendant swore to uphold an oath to enforce the law, but instead chose to break the law,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Balian moved in criminal circles and operated as though he was above the law by repeatedly lying to hide his criminal activity and that of others. His alleged actions impeded legitimate investigations into organized violent crime and consequently presented a threat to public safety.”
“Enforcing the laws of our nation and our communities is a calling like no other. All law enforcement professionals are held to a higher standard,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations in Los Angeles. “HSI stands with all of our partners in our commitment to ensuring that corrupt law enforcement officers who break our laws, violate public trust and compromise safety are prosecuted to the fullest extent. The public deserves no less.”
In addition to the false statements Balian allegedly made over the course of several months last year, the affidavit contains allegations that the police officer worked with a local street gang member and Mexican Mafia associate after Loza was taken into federal custody. This gangster provided information to authorities indicating that Balian disclosed information about another federal racketeering case that allowed the lead defendant to avoid arrest during the takedown and remain a fugitive for a month, according to the affidavit. Balian regularly communicated with the gangster-turned-informant though pre-paid “burner” cell phones, with Balian relaying law enforcement information about planned searches at marijuana grows and instructing the gangster to “hit them” before law enforcement executed the search warrants, the affidavit states. The gangster also reported that Balian was involved in disposing of a firearm used in a shooting, extortion plots, and the gangster said he acted as the bagman on at least two extortions.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If Balian were to be convicted of the charge of making false statements to federal investigators, he would face a statutory maximum sentence of five years in federal prison.
The case against Balian is the result of an ongoing investigation by the Eurasian Organized Crime Task Force, which is made up of special agents with the FBI, HSI, IRS Criminal Investigation and the Department of Health and Human Services’ Office of Inspector General, as well as officers with the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the Glendale Police Department, the Burbank Police Department and the California Department of Health Care Services.
This matter is being prosecuted by Assistant United States Attorney Jeff Mitchell of the Violent and Organized Crime Section.
Garyville Man Pleads Guilty to Drug ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that BRAD BLANK, age 42, of Garyville, pled guilty Thursday, May 10, 2018 to charges relating to narcotics trafficking.
According to court documents, BLANK conspired to distribute at least 50 grams of methamphetamine. For that charge, BLANK faces a term of imprisonment of at least ten years and up to life, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment,
Judge Mary Ann Vial Lemmon set sentencing for August 16, 2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorneys Nicholas D. Moses and Jonathan L. Shih are in charge of the prosecution.
Frederick County Man Indicted for Distribution of Controlled Substances Resulting in DeathRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Michael Lee King, age 31, of Mt. Airy, Maryland, on the charge of Distribution of a Controlled Substance with Death Resulting.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent Don A. Hibbert of the Drug Enforcement Administration – Baltimore; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Edward G. Hargis of the Frederick County Police Department; and Sheriff James T. DeWees of the Carroll County Sheriff’s Office.
According to the indictment, on November 5, 2017, King distributed controlled substances containing heroin, fentanyl, and cocaine to an individual, which resulted in an overdose death in Frederick County, Maryland.
King faces a mandatory minimum sentence of 20 years in prison with a maximum sentence of life in prison if found guilty. King had his initial appearance in front of United States Magistrate Judge Thomas M. DiGirolamo in District Court in Greenbelt on May 14, 2018.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, the DEA, the Montgomery County Police Department, the Frederick County Police Department, and the Carroll County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the case.
Franklin Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Brian Sanborn, 53, of Franklin, New Hampshire, pleaded guilty to methamphetamine trafficking.
According to court documents and statements in court, on December 8, 2017, the New Hampshire State Police executed search warrants at Sanborn’s residence in Franklin and located approximately 17 grams of nearly pure methamphetamine in the basement of the house. On the same day Sanborn, who previously had been convicted of felonies, possessed seven firearms, including four revolvers, two shotguns, and an SKS rifle.
Sanborn pleaded guilty to possession of methamphetamine with intent to distribute. He will be sentenced on September 4, 2018.
“Methamphetamine trafficking continues to pose a serious threat to the health of our citizens and the safety of our community,” said U.S. Attorney Murray. “We will continue to work closely with our law enforcement partners to stop the distribution of this dangerous drug and to protect our neighborhoods. I want to thank the law enforcement officers whose work shut down and disarmed this drug trafficker.”
This matter was investigated by the New Hampshire State Police, the Franklin Police Department, the Drug Enforcement Agency, and ATF. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Former Springfield YMCA Employee Sentenced to 10 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former Springfield YMCA employee was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Benjamin Goodwin, 28, of Springfield, was sentenced by U.S. District Judge Beth Phillips to 10 years and one month in federal prison without parole. The court also sentenced Goodwin to 10 years of supervised release following incarceration.
Goodwin, who was employed as a childcare worker at the Springfield YMCA at the time of the offense, pleaded guilty on Nov. 7, 2017. Goodwin admitted that he received and distributed child pornography over the Internet between June 11, 2016, and Aug. 3, 2017. Goodwin was employed by the YMCA for more than a decade and also served as a special education paraprofessional until shortly before he was arrested.
According to court documents, Goodwin initially came to the attention of law enforcement after the administrators of Chatstep submitted a Cyber Tipline Report regarding his use of its services to post images depicting child pornography. During the course of another investigation, an individual told investigators that he and Goodwin had been trading images depicting child pornography.
On Aug. 3, 2017, investigators contacted Goodwin outside his place of employment, the Springfield YMCA. Goodwin admitted that he had sent approximately 25 images depicting child pornography to the other individual and had received approximately the same number in return. Goodwin was aware, according to court documents, that the images he received depicted a child who was being actively sexually abused.
A forensic examination of Goodwin’s cell phone and iPad yielded the discovery of a number of files containing images of child pornography. Investigators also recovered dozens of photographs of children taken at the YMCA and other venues. The Internet history contained on Goodwin’s iPad indicated that he frequently visited Internet sites known to host child pornography and actively sought out child pornography. More disturbingly, the forensic examiner recovered dozens of message exchanges between Goodwin and other individuals, discussing their sexual interest in children. During one such exchange, Goodwin transmitted a picture of one of the children he supervised at the YMCA.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."