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18 June 2018
Second Winnemucca Tax Return Preparer Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
RENO, Nev. – A Winnemucca tax return preparer pleaded guilty today for her role in a tax fraud conspiracy, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.
Ginger Bidegary, 58, pleaded guilty to one count of conspiracy to defraud the United States. United States District Judge Robert C. Jones received her guilty plea and scheduled a sentencing hearing on September 17, 2018.
According to court documents, Bidegary was a co-owner of Winnemucca Tax and Bookkeeping Service, a tax preparation and bookkeeping services business. She admitted that, from at least 2011 through at least December 2013, she conspired with her co-defendant to prepare and file fraudulent individual income tax returns on behalf of a client who is identified in court paperwork by initials only. She admitted she advised the client that by making small “investments” into various businesses she owned, the client could decrease her annual taxable income and increase her tax refunds. As part of the scheme, Bidegary would prepare false tax forms for the corresponding tax year that included large fictitious business losses in order to reduce the client’s taxable income and obtain a larger refund than what the client was entitled to receive. As a result of the false tax return she participated in drafting and filing on behalf of the client, Bidegary caused a tax loss of approximately $39,588, for tax years 2011 and 2012.
The statutory maximum penalty is five years in prison for conspiracy to defraud the United States. Bidegary also faces a term of supervised release, restitution, and monetary penalties.
The case was investigated by the IRS Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Carla Higginbotham.
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Second Federal Conviction for Drug Trafficking Leads to 10 Years in Federal PrisonRead the Press Release
A man who sold “ice” methamphetamine, PCP, and synthetic drugs was sentenced on June 12, 2018, to ten years in federal prison.
Jeffrey Simmermaker, age 46, from Iowa City, Iowa, received the prison term after a December 20, 2017 guilty plea to conspiracy to distribute methamphetamine. Evidence at the sentencing hearing established that Simmermaker was selling methamphetamine, PCP, and synthetic drugs in Tipton, Iowa. Simmermaker was previously convicted of conspiracy to distribute methamphetamine in federal court on October 12, 2004.
Simmermaker was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Simmermaker was sentenced to 120 months’ imprisonment. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system. Simmermaker is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and Special Assistant United States Attorney Drew O. Inman and investigated by the Tipton Police Department, the Cedar County Sheriff’s Office, the Iowa State Patrol, the Iowa Division of Narcotics Enforcement, and the Muscatine County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-88-LRR.
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Retired Federal Air Marshal Charged with Threatening Former CoworkersRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a former federal air marshal with the Newark, New Jersey field office has been charged by indictment with making various threats against his former colleagues.
An indictment was unsealed today charging Julian Terrell Turk, 47, of Levittown, PA, with interstate communication of threats. Turk, who filed multiple Equal Employment Opportunity complaints against the Federal Air Marshal Service, and more specifically against FAM Executive Management of the Newark Field Office, allegedly contacted a retired Navy SEAL for information on how to make and use explosives and also to provide a list of books and resources on long range rifle shooting.
In an April 13 email to a former coworker, Turk wrote:
“There comes a time in one's life that he has to take a stand against what's ‘right’ and not ‘white’ here, now, is my chance to do that. These (expletive) have gone out of their way to (expletive) with me in the worst way possible. And frankly, I've had a Got Damn nuff of it. So, I've decided to (expletive) with them. I'm going to take the fight to these (expletive)!”… “I'd never ask one of yall to take-on something that would get any of you in trouble. But sometimes enough is enough and you have to take a stand. These (expletive) think they're untouchable and that they can't be gotten to. I'm going to show them how to (expletive) with someone.” . . . “As I've said, I'm taking the fight to these (expletive) now. Know that, I'd never take my own life, my children are always a for-thought on my mind. But what kind of man would I be if I didn't live up to my motto and creed of ‘Being a Man for Others!’ So I've come up with a plan to get them for what they've done to me.”
Turk also sent a series of emails to a former marshal in which he said, among other things, “I've come up with a plan to get them for what they've done to me. In the event that something happens to me, please make sure to look after my children.”
If convicted, the defendant faces a maximum possible sentence of five years in prison, three years’ supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by FBI and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.
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.
Police Officer Convicted of Wrongful ArrestRead the Press Release
Officer illegally arrested citizen after the citizen attempted to file complaints against him
The Justice Department today announced that William Dukes, Jr., a former sergeant with the Providence, Kentucky, Police Department, was found guilty Friday in federal court on one count of willfully arresting a citizen without probable cause.
After five days of trial, the jury convicted Dukes of arresting the victim, knowing that he did not have probable cause to believe that the victim had committed a crime, in violation of his 4th Amendment rights. The jury heard testimony that Dukes arrested the victim because the victim had called several law enforcement agencies seeking to file a complaint against him. The defendant was acquitted of another civil rights charge for violating the victim’s 1st Amendment rights and was also acquitted of an obstruction of justice charge.
“Police officers across the country have an important duty to protect and safeguard the rights of members of their communities,” said Acting Assistant Attorney General John Gore. “Dukes did not use that authority within the boundaries of the law when he violated the 4th Amendment rights of an individual, and his actions will not be tolerated.”
“The men and women of Kentucky law enforcement represent the very best of our Commonwealth,” stated U.S. Attorney Russell Coleman. “But when they treat the rule of law as optional as did Mr. Dukes, they will be held responsible like any other citizen.”
Sentencing is set for Sept. 13. The statutory maximum on the charge is 120 months in prison.
This case was investigated by the Louisville Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Seth Hancock of the Western District of Kentucky, and Trial Attorney Zachary Dembo of the Civil Rights Division’s Criminal Section.
Pittsburgh man admits to heroin chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher A. Cobbs, of Pittsburgh, Pennsylvania, has admitted to a drug charge, United States Attorney Bill Powell announced.
Cobbs, also known as “Bro-Bro,” age 25, pled guilty to one count of “Distribution of Heroin.” Cobbs admitted to selling heroin in July 2015 in Harrison County.
Cobbs faces up 20 years incarceration and a fine of up to $1,000,000. 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.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, are investigating.
U.S. Magistrate Judge Michael John Aloi presided.Philadelphia Personal Injury Law Firm Agrees to Start Compliance Program and Reimburse the United States for Clients’ Medicare DebtsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a Philadelphia personal injury law firm, Rosenbaum & Associates, and its principal, Jeffrey Rosenbaum, Esq., have entered into a settlement agreement with the United States to resolve allegations that they failed to reimburse the United States for certain Medicare payments the government had previously made to medical providers on behalf of firm clients who sought medical care.
The government’s investigation arose under the Medicare Secondary Payer provisions of the Social Security Act, which authorizes Medicare, as a secondary payer, to make conditional payments for medical items or services under certain circumstances. When an injured person receives a settlement or judgment, Medicare regulations require entities who receive the settlement or judgment proceeds, such as the injured person’s attorney, to repay Medicare within 60 days for its conditional payments. If Medicare does not receive timely repayment, these same regulations permit the government to recover the conditional payments from the injured person’s attorney and others who received the settlement or judgment proceeds.
At various points before March 2017, Medicare made conditional payments to healthcare providers to satisfy medical bills of nine of the firm’s clients, at least one of whom had declared bankruptcy. Between May 2011 and March 2017, Medicare demanded repayment of the Medicare debts incurred from those conditional payments.
Under the terms of the settlement agreement, Rosenbaum agreed to pay a lump sum of $28,000. Rosenbaum also agreed to (1) designate a person at the firm responsible for paying Medicare secondary payer debts; (2) train the designated employee to ensure that the firm pays these debts on a timely basis; and (3) review any outstanding debts with the designated employee at least every six months to ensure compliance. In addition, Rosenbaum acknowledged that any failure to submit timely repayment of Medicare secondary payer debt may result in liability for the wrongful retention of a government overpayment under the False Claims Act.
This settlement agreement should remind personal injury lawyers and others of their obligation to reimburse Medicare for conditional payments after receiving settlement or judgment proceeds for their clients. “When an attorney fails to reimburse Medicare, the United States can recover from the attorney—even if the attorney already transmitted the proceeds to the client,” said U.S. Attorney William M. McSwain. “Congress enacted these rules to ensure timely repayment from responsible parties, and we intend to hold attorneys accountable for failing to make good on their obligations.”
The case was handled by Assistant U.S. Attorney Michael S. Macko, with assistance from the United States Department of Health and Human Services, Office of the General Counsel, Region III.
Peach Springs Man Sentenced to Federal Prison for ArsonRead the Press Release
PHOENIX – Today, Antwan Raoul Crook, 21, of Peach Springs, Ariz., and a member of the Hualapai Indian Tribe, was sentenced by U.S. District Judge Diane J. Humetewa to 41 months in prison, followed by a term of five years of supervised release. Crook had previously pleaded guilty to arson.
On March 25, 2017, Crook who was intoxicated became angry with the victim and intentionally set fire to her home. The fire caused extensive fire and water damage and rendered the home uninhabitable. The victim is also a member of the Hualapai Indian Tribe, and the arson occurred on the Hualapai Indian Reservation.
The investigation in this case was conducted by the Hualapai Nation Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08204-PCT-DJH
RELEASE NUMBER: 2018-085_Crook
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Police Officer Convicted of Wrongful ArrestRead the Press Release
The Justice Department today announced that William Dukes, Jr., a former sergeant with the Providence, Kentucky, Police Department, was found guilty Friday in federal court on one count of willfully arresting a citizen without probable cause.
After five days of trial, the jury convicted Dukes of arresting the victim, knowing that he did not have probable cause to believe that the victim had committed a crime, in violation of his 4th Amendment rights. The jury heard testimony that Dukes arrested the victim because the victim had called several law enforcement agencies seeking to file a complaint against him. The defendant was acquitted of another civil rights charge for violating the victim’s 1st Amendment rights and was also acquitted of an obstruction of justice charge.
“Police officers across the country have an important duty to protect and safeguard the rights of members of their communities,” said Acting Assistant Attorney General John Gore. “Dukes did not use that authority within the boundaries of the law when he violated the 4th Amendment rights of an individual, and his actions will not be tolerated.”
“The men and women of Kentucky law enforcement represent the very best of our Commonwealth,” stated U.S. Attorney Russell Coleman. “But when they treat the rule of law as optional as did Mr. Dukes, they will be held responsible like any other citizen.”
Sentencing is set for Sept. 13. The statutory maximum on the charge is 120 months in prison.
This case was investigated by the Louisville Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Seth Hancock of the Western District of Kentucky, and Trial Attorney Zachary Dembo of the Civil Rights Division’s Criminal Section.
Owner of Meriden Transportation Broker Firm Sentenced to Prison for $600,000 Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIGBY KERR, 50, of Meriden, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for defrauding four manufacturing companies of more than $600,000.
According to court documents and statements made in court, KERR owned and operated Transportation Cost Management, LLC (“TCM”), which was in the business of brokering shipping contracts between manufacturers and trucking companies. As part of its business, TCM would receive shipping invoices from trucking companies, process the invoices, and forward the billing information to the manufacturers. The manufacturers would transmit the payment funds to TCM for remittal to the trucking companies. TCM would then remit payment to the trucking companies and send confirmation reports to the manufacturers indicating that payment had been made to the trucking companies. The manufactures compensated TCM for providing this service.
Between approximately December 2016 and April 2017, KERR and TCM failed to remit $603,489.30 in payment funds that TCM received from four manufacturers to the trucking companies that transported goods for those victim manufacturers. TCM, at KERR’s direction, e-mailed confirmation reports to the victim manufacturers that falsely represented that the manufacturers’ payments had been properly forwarded to the trucking companies.
Judge Meyer ordered KERR to pay restitution of $603,489.30.
On March 26, 2018, KERR pleaded guilty to one count of wire fraud.
KERR, who is released on a $100,000 bond, was ordered to report to prison on July 23.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Avi M. Perry.
Ohio Man Sentenced to Time Served and Ordered to Participate in a Residential Drug Treatment Program for July 2016 FBI Gate Crashing IncidentRead the Press Release
PITTSBURGH, PA - A resident of New Waterford, Ohio, has been sentenced in federal court to time served on his conviction of willfully injuring or committing depredation against any property of the United States, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Thomas Ross, age 50, formerly of New Waterford, Ohio. Ross has been imprisoned since July 26, 2016, five months of which had been allocated to a separate state conviction on simple assault, fleeing and eluding, and failing to stop at traffic signals, committed on the same date as this offense. Ross was also ordered to a six-month to 12-month residential drug treatment program as part of a three-year term of supervised release. Additionally, Ross was ordered to pay $45,000 in restitution: $25,000 to the property owner of 3311 East Carson Street, Pittsburgh, Pennsylvania, and $20,000 to the Federal Bureau of Investigation.
According to information presented to the court, on July 26, 2016, Ross drove his vehicle, a large dump truck, through the gate of the FBI Pittsburgh Field Office, located at 3311 East Carson Street, Pittsburgh, PA. Ross proceeded to ram through the security barriers at a high rate of speed, inflicting extensive damage on the gate and security barriers and causing the vehicle to become airborne. Upon hitting the ground, the vehicle struck a nearby light post in the interior parking lot of the FBI Pittsburgh.
Additional information presented to the court indicated that Ross’s actions caused a financial loss of $248,019.45, including $228,019.45 in property damage to the gate, barriers, and light post, as well as costs to the FBI associated with hiring additional security while the gate and barriers were being repaired.
"Unfortunately, the weaponization of large-scale vehicles is becoming increasingly commonplace," said U.S. Attorney Brady. "Thomas Ross’ drug-fueled attack of the FBI’s Pittsburgh facility represented a serious threat that put the lives of others at risk. Thanks to the quick response of the Pittsburgh Bureau of Police a potential tragedy was averted."
"The FBI Pittsburgh Division highly commends the actions of the Pittsburgh Bureau of Police officer who responded to an incident at our facility on July 26, 2016," said Acting Special Agent in Charge Chad Yarbrough. "Officer Wester's diligence and quick-thinking prevented the incident from escalating into a more dangerous situation and protected our staff from additional harm. We appreciate his efforts and the efforts of the entire Pittsburgh Bureau of Police to protect all of us in this community."
Assistant United States Attorney Adam N. Hallowell prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Thomas Ross.
Ohio Man Sentenced for Role in a Conspiracy to Distribute Counterfeit $100 BillsRead the Press Release
PITTSBURGH, PA - A resident of Columbus, Ohio, has been sentenced in federal court to time served, approximately eight months incarceration, and three years supervised release on his conviction of conspiracy to utter and pass counterfeit Federal Reserve notes, and for possession of counterfeit Federal Reserve notes, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Nathaniel Lee, age 35, of Columbus, Ohio.
According to information presented to the court, it was part of the conspiracy that Lee and his co-conspirators obtained counterfeit Federal Reserve notes in the denomination of $100 dollars in Ohio and transported the counterfeit Federal Reserve notes into the Western District of Pennsylvania. It was further a part of the conspiracy that on numerous occasions, Lee and his co-conspirators passed, and attempted to pass, counterfeit $100 bills at various retail store locations in the Western District of Pennsylvania and received legitimate currency as change. Lee also possessed several counterfeit Federal Reserve notes in the denomination of $100.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
The United States Secret Service, the Scott Township Police Department, the North Fayette Police Department, and the Bethel Park Police Department conducted the investigation leading to the conviction in this case.
Ohio Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – A Zanesville, Ohio man who possessed methamphetamine and a firearm in Huntington in 2017 pled guilty today to federal gun and drug charges, announced United States Attorney Mike Stuart. Rico Rodriquez Allen, 43, entered his guilty pleas to possessing with the intent to distribute methamphetamine and possessing a firearm during and in relation to a drug trafficking crime. Stuart praised the work of the Huntington Police Department.
“Yet another armed, out-of-state drug dealer caught peddling poisons in Huntington,” said United States Attorney Mike Stuart. “And yet another armed, out-of-state drug dealer that my office has prosecuted to the fullest extent of the law. It will be a long time before Allen has a chance to step foot in Huntington again.”
On September 16, 2017, an officer with the Huntington Police Department was dispatched to a 911 call of a man slumped over his steering wheel on a private driveway in Huntington. When officers arrived, Allen refused to exit the vehicle. As Allen was removed from the vehicle, a Glock 22 pistol fell from underneath Allen. Officers then obtained a search warrant for the vehicle. Officers recovered approximately 162 grams of methamphetamine from a void in the center console. Officers also recovered approximately 100 baggies, two digital scales, and four telephones.
Allen faces not less than 5 years nor more than 40 years in federal prison for the drug charge, and a mandatory minimum consecutive term of at least 5 years in federal prison for the gun charge, when he is sentenced by United States District Judge Robert C. Chambers on September 17, 2018. Assistant United States Attorney Stephanie S. Taylor is responsible for the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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North Hollywood Man Pleads Guilty to Conspiracy to Sell Stolen Credit Card InformationRead the Press Release
SACRAMENTO, Calif. — Oganes Emirzyan, 54, of North Hollywood, pleaded guilty today to a scheme to traffic in and possess stolen credit card numbers and the account holders’ information, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, Emirzyan pleaded guilty to conspiring to traffic in at least one unauthorized access device and to possess at least 15 access devices.
According to court documents, on April 28, 2016, Emirzyan conspired with co-defendant Mkrtych “Mike” Robertovic Sargsyan to obtain and sell stolen credit card information. Emirzyan obtained an electronic storage device containing 199 stolen credit card numbers and corresponding account holder information. He then met with a buyer at his home in North Hollywood. During that meeting, Emirzyan sold the stolen credit card information to the buyer for $8,700.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
Charges are pending against Sargsyan. The charges against him are allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Emirzyan is scheduled to be sentenced by U.S. District Judg William B. Shubb on November 5, 2018. Emirzyan faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
North Carolina Man Sentenced to 295 Months on Gun and Drug Conspiracy ChargesRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen announced today that Grandy Nester, 33, of Pilot Mountain, N.C., was sentenced last week in the United States District Court in Abingdon as a result of Operation Rolling Thunder, an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and local law enforcement in Virginia and North Carolina.
The collaborative law enforcement effort has resulted in twenty-two defendants entering guilty pleas related to the distribution of methamphetamine and firearms possession in Southwest Virginia and North Carolina. Nester was sentenced to 295 months imprisonment last week. He previously pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and conspiracy to distribute 500 grams of methamphetamine.
“Operation Rolling Thunder has made the communities of Southwest Virginia safer by taking large amounts of methamphetamine off the streets and getting firearms out of the hands of drug dealers,” United States Attorney Cullen stated today. “I am grateful for the leadership of ATF on this important initiative, as well as the critical support of our state and local law-enforcement partners.”
“ATF is dedicated to removing armed criminals from our streets. We will continue to target criminals who illegally possess and use firearms as a tool of their drug trade,” ATF Acting Special Agent in Charge R. Shawn Morrow said today. “Operation Rolling Thunder is another great example of how ATF collaborates with state and local law enforcement and federal prosecutors to keep our communities safe.”
According to evidence presented at numerous hearings by Assistant United States Attorney Zachary T. Lee, Nester was a member of a drug trafficking organization responsible for the transportation of large quantities of methamphetamine from Greensboro, N.C. to be distributed in Galax, Va., Grayson County, Va., Carroll County, Va., and Surry County, N.C. Additionally, many of the members of the organization possessed and used firearms to further their drug trafficking activities. At the time of his arrest in June 2017, Nester was found to be in possession of methamphetamine and a firearm. As a result of the investigation, the following defendants have been sentenced:
- Amy Hoyt, 46, of Mt. Airy, N.C., was sentenced to 228 months imprisonment for conspiracy to distribute 500 grams or more of methamphetamine and possess a firearm in furtherance of a drug trafficking.
- Amber Bilyeu, 32, of Mt. Airy, N.C., was sentenced to 252 months imprisonment for conspiracy to distribute 500 grams or more of methamphetamine.
- Karen Hawks, 45, of Low Gap, N.C., was sentenced to 262 months imprisonment for conspiracy to distribute 500 grams or more of methamphetamine.
- Walter “Butch” Sexton, 64, of Galax, Va., was sentenced to 87 months imprisonment for conspiracy to distribute 500 grams or more of methamphetamine.
- Brittany Cochran, 28, of Fries, Va., was sentenced to 87 months imprisonment for conspiracy to distribute methamphetamine.
- Timothy Bowman, 46, of Cana, Va., was sentenced to 300 months imprisonment for conspiracy to distribute 500 grams or more of methamphetamine and possess a firearm in furtherance of a drug trafficking offense.
- Annette Freeman, 32, of Cana, Va., was sentenced to 235 months imprisonment for conspiracy to distribute 500 grams or more of methamphetamine.
- Brad Hunley, 29, of Galax, Va., was sentenced to 134 months imprisonment for conspiracy to distribute 500 grams or more of methamphetamine.
- Shawanna Phipps, 37, of Independence, Va., was sentenced to 120 months imprisonment for conspiracy to distribute 50 grams or more of methamphetamine.
- Brian Graff, 33, of Independence, Va., was sentenced to 120 months imprisonment for conspiracy to distribute 50 grams or more of methamphetamine.
- Riley Alley, 26, of Cana, Va., was sentenced to 52 months imprisonment for conspiracy to distribute methamphetamine.
- Calvin Jermaine Maxwell, 34, of Galax, Va., was sentenced to 188 months imprisonment for conspiracy to distribute methamphetamine.
- David Norman, 29, of Galax, Va., was sentenced to 57 months imprisonment for conspiracy to distribute methamphetamine.
- Jonathan Choate, 34, of Independence, Va., was sentenced to 240 months imprisonment for conspiracy to distribute 500 grams or more of methamphetamine.
- Kevin Humphries, 38, of Cana, Va., was sentenced to 120 months imprisonment for conspiracy to distribute 50 grams or more of methamphetamine.
- Jackie Christopher Parson, 39, of Mouth of Wilson, Va., was sentenced to 120 months imprisonment for conspiracy to distribute 50 grams or more of methamphetamine.
- Jessilyn Jones, 26, of Independence, Va., was sentenced to 70 months imprisonment for conspiracy to distribute methamphetamine.
- Vickie Grose, 48, of Galax, Va., was sentenced to 51 months imprisonment for conspiracy to distribute methamphetamine.
- Stacey Jerome Sawyers, 30, of Galax, Va., was sentenced to 57 months imprisonment for conspiracy to distribute methamphetamine.
- Travis Brian Anders, 35, of Sugar Grove, Va., was sentenced to 158 months imprisonment for conspiracy to distribute 500 grams or more of methamphetamine.
The investigation of this case was conducted by the Grayson County Sheriff’s Office, Carroll County Sheriff’s Office, Surry County Sheriff’s Office, Virginia State Police, North Carolina State Bureau of Investigation, Galax Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Marshals Service, United States Secret Service. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Nebraska Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
A Nebraska man was sentenced to six years in prison today for possessing child pornography in May 2017, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly for the District of Nebraska.
Douglas Goldsberry, 46, of Elkhorn, Nebraska, pleaded guilty on March 19 to one count of possessing child pornography. Goldsberry was sentenced by Chief U.S. District Court Judge Laurie Smith Camp of the District of Nebraska, who ordered him to serve 10 years of supervised release following his prison sentence and ordered him to pay $2,500 in restitution. Goldsberry will serve his federal sentence concurrent with a state prison sentence for pandering for which he is currently incarcerated.
According to admissions made in connection with his guilty plea, in May 2017, the Douglas County Sheriff’s Office arrested Goldsberry after he was suspected of ordering escorts to his neighbors’ home without their knowledge. Law enforcement seized Goldsberry’s digital devices for evidence of pandering and discovered child pornography images on two of the seized devices. The material included images and videos from 81 known child pornography series, and also included depictions of infants and depictions involving bondage of children.
The FBI Cyber Crimes Task Force is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Moundsville man sentenced for marijuana distributionRead the Press Release
WHEELING, WEST VIRGINIA – Christopher M. Delauder, of Moundsville, West Virginia, was sentenced today to 12 months incarceration for distributing marijuana, United States Attorney Bill Powell announced.
Delauder, age 28, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Marijuana” in February 2017. In April 2016, Delauder distributed a significant amount of marijuana in Marshall County, West Virginia.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Modesto Real Estate Attorney Sentenced to Two Years in Prison for Fraudulent Short-Sale SchemeRead the Press Release
FRESNO, Calif. — Robert Farrace, 54, of Modesto, was sentenced today to two years in prison for a fraudulent short-sale scheme, U.S. Attorney McGregor W. Scott announced.
On November 14, 2017, a jury found Farrace guilty of three counts of wire fraud in connection with the scheme. According to court documents, Farrace, an attorney specializing in real estate law and the former president of the Stanislaus County Bar Association, owned two properties in Modesto with substantial mortgage loans. By early 2010, Farrace was in default and received foreclosure notices for the two properties. In order to keep the properties and avoid foreclosure, Farrace formed an entity called “Dignitas LLC” to purchase the properties.
According to evidence presented at trial, Farrace controlled Dignitas, but listed a friend’s name on the paperwork as a nominal manager because he knew the bank would not sell the property to a related party. Farrace then submitted short sale offers to the bank that serviced the loans on both properties, listing Dignitas and the nominee manager as the purchaser. Farrace misrepresented his relationship to Dignitas to induce the bank to approve the short sale. Because the servicing bank did not know of the true relationship, it went forward and completed one of the short sales. The short sale on the second property was stopped after law enforcement informed the bank of Farrace’s scheme.
This case was the product of an investigation by the Federal Housing Finance Agency–Office of Inspector General, the Federal Bureau of Investigation, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorneys Michael G. Tierney and Shelley D. Weger prosecuted the case.
McKees Rocks Man Sentenced to Two More Years in Prison for Escaping from Renewal CenterRead the Press Release
PITTSBURGH, PA. - A resident of McKees Rocks, PA, has been sentenced in federal court to 24 months’ imprisonment on his conviction of escape from custody, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Devon Johnson, age 29.
According to information presented to the court, on August 31, 2016, the defendant escaped from the Renewal, Inc. Residential Reentry Center, where he had been confined pursuant to a judgment and commitment order of the United States District Court for the Northern District of West Virginia..
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Marshals Service for the investigation leading to the successful prosecution of Johnson.
Maryland woman sentenced for selling cocaineRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shelley Kay Snyder-Windle, of Westernport, Maryland, was sentenced today to 12 months incarceration for distributing cocaine, United States Attorney Bill Powell announced.
Snyder-Windle, age 54, pled guilty to one count of “Distribution of Cocaine” in March 2018. Snyder-Windle admitted to selling cocaine in October 2016 in Mineral County.
Special Assistant U.S. Attorney Elizabeth Grant, also with the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The case was investigated by the Potomac Highlands Drug & Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigations.
Chief U.S. District Judge Gina M. Groh presided.Maryland Man Sentenced to Seven Years in Prison for Role in Scheme That Used Stolen Identities to Fraudulently Seek Tax RefundsRead the Press Release
WASHINGTON – A Maryland man was sentenced today to seven years in prison for his involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds.
The announcement was made by Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; U.S. Attorney Jessie K. Liu for the District of Columbia; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Acting Inspector in Charge Eric Shen of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Antonio Cooper, 47, of Oxon Hill, Md., pled guilty in May 2016 to charges of conspiracy to commit theft of government funds, theft of public money, and aggravated identity theft.
Cooper was part of a massive sophisticated stolen identity refund fraud scheme that involved a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia. According to court documents, the overall case involved the filing of at least 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty, and three have been convicted by a trial jury.
According to the government’s evidence, Cooper actively participated in the scheme from approximately February 2010 through July 2012. He also recruited others to do so. As he admitted in Court, Cooper played an integral part in the overall conspiracy; he, his friends, and his family members defrauded the IRS out of more than $2 million through the receipt of fraudulently obtained income tax refund checks. Among other things, Cooper used others’ addresses to receive checks, bought personal identifying information needed to complete tax forms, and cashed some of the fraudulently-obtained tax refund checks.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Cooper to serve three years of supervised release and to pay $2,420,241 in restitution to the IRS. She also ordered a forfeiture money judgment $806,747.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Liu, Acting Special Agent in Charge Jackson, Acting Inspector in Charge Shen and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Aisha Keys and Donna Galindo; former Paralegal Specialists Jessica Mundi and Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Services Coordinator Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Martinsburg man sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Charles Leroy Palmer, III, of Martinsburg, West Virginia, was sentenced today to 24 months incarceration for distributing heroin, United States Attorney Bill Powell announced.
Palmer, age 24, pled guilty to one count of “Possession with the Intent to Distribute Heroin” in March 2018. Palmer admitted to distributing more than 100 grams of heroin in June 2017 in Berkeley County.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The case was investigated by the Jefferson County Sheriff’s Office and the Martinsburg City Police Department.
Chief U.S. District Judge Gina M. Groh presided.
Man Sentenced to over 17 Years in Federal Prison for Selling Methamphetamine Near SchoolRead the Press Release
A Cedar Rapids man who sold methamphetamine from his home near Wilson Middle School was sentenced on June 12, 2018, to more than 17 years in federal prison.
Daniel Wayne Melsha, age 26, from Cedar Rapids, Iowa, received the prison term after a February 22, 2018 guilty plea to possession with intent to distribute methamphetamine within 1,000 of a school and possession of firearms in furtherance of a drug trafficking crime.
Evidence at the sentencing hearing showed that Melsha lived in a residence in Cedar Rapids, which was within 1,000 feet of Wilson Middle School. On September 28 and October 4, 2017, Melsha sold another person a half an ounce of methamphetamine at Melsha’s home. On October 5, 2017, police investigators executed a search warrant at Melsha’s residence, where they found over 70 grams of “ice” methamphetamine and 41 guns, including revolvers, semi-automatic handguns, rifles, and shotguns. Police arrested Melsha the same day.
On October 10, 2017, Melsha was released pending trial and ordered to wear a GPS-monitoring bracelet on his ankle to monitor his location. Melsha cut off the GPS monitoring bracelet in November and failed to appear for a hearing on his case. On January 16, 2018, the United States Marshals Service found Melsha hiding out in a camper, parked within a barn in Fairfax, Iowa.
Melsha was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Melsha was sentenced to 211 months’ imprisonment and must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Melsha is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ravi T. Narayan and Special Assistant United States Attorney Drew O. Inman and investigated by the Iowa Division of Narcotics Enforcement, Cedar Rapids Police Department, Muscatine County Drug Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-86-LRR.
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Long Island Man and Queens Rabbi Arrested in $7 Million Extortion AttemptRead the Press Release
A complaint was unsealed earlier today in federal court in Brooklyn charging Igal Haimoff, a rabbi, and Mark Weissman with engaging in a scheme to extort $7 million from an individual in exchange for not providing purportedly incriminating information to law enforcement authorities. Haimoff and Weismann were arrested today and made their initial appearance this afternoon before United States Magistrate Judge Cheryl L. Pollak. The defendants were each released on a $250,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged, Haimoff and Weissman attempted to characterize the millions of dollars they expected to receive from their extortionate threat as a charitable donation,” stated United States Attorney Donoghue. “This Office, along with our law enforcement partners, will vigorously investigate and prosecute those who seek to hide their criminal conduct behind the cloak of a charity.”
“Charity of all kinds, especially related to children, is esteemed to be noble, honest, and true,” stated FBI Assistant Director-in-Charge Sweeney. “By allegedly attempting to extort and blackmail this victim in the name of charity, Haimoff and Weissman gravely undermined these values. By the arrests of these individuals, it is clear that regardless of cunning cover-ups, all injustices will ultimately be revealed.”
“IRS Criminal Investigation takes criminal actions that undermine confidence in the Internal Revenue Code seriously. Disguising illegally obtained funds as charitable donations is disgraceful,” stated IRS-CI Special Agent-in-Charge Robnett. “The allegations outlined in this criminal complaint are serious and we are obligated to use our financial expertise to unravel the scheme devised by Rabbi Haimoff and Mr. Weissman.”
According to the complaint, beginning in early 2017, Weissman advised the Victim that unless he paid $6 million, another individual (Person A) would provide incriminating information to law enforcement. Weissman enlisted Rabbi Haimoff to allow his charity to receive the extorted funds, as a way to disguise the purpose of the transaction. Haimoff and Weissman ultimately created and transmitted a fraudulent charitable donation letter to the individual they believed would be sending the extorted funds from overseas. The letter, on the charity’s letterhead from Haimoff, stated:
Thank you so much for your pledge of $6,000,000 towards our building campaign. Your generous donation will enable us to complete the construction of our Yeshiva building which is so vital for the continued growth of our Queens community. It is the generosity of donors such as yourself that provide us with the strength and ability to continue being there for the community. Thank you for being our partner in this most important endeavor. For your convenience, you can fire (sic) the funds to our bank account as follows [bank account details].
In fact, when transmitting the letter, Haimoff and Weissman were actually communicating with an FBI agent acting in an undercover capacity.
Haimoff later indicated that Person A was increasing the demand to $7 million. The victim indicated that he could provide these funds and Haimoff requested to be provided with a letter indicating why the “donation” was increasing to $7 million. On or about June 6, 2018, Haimoff and the undercover FBI agent, exchanged the following emails, which read in part:
Undercover FBI Agent: Dear Rabbi Haimoff, I have learned that there is additional structural work required for the construction of the Yeshiva building for the Charity. As such I would like to increase my pledge from $6,000,000 to $7,000,000 to assist you with the project…Kind regards…
Haimoff: …Thank you very much … that you doing with our yeshiva because of your good heart open hart (sic) for mitzvahs we will be able to expand our bldg to the maximum capacity now we don't have any more space for new kid’s (sic) to come after the construction will be done we will be able to double the amount of children!!...thank you so much. Rabbi haimoff.
The charges in the complaint are merely allegations, and the defendants are presumed to be innocent unless and until proven guilty. If convicted, Haimoff and Weissman each face up to 5 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendants:
IGAL HAIMOFF
Age: 67
Flushing, New YorkMARK WEISSMAN
Age: 54
Lawrence, New YorkE.D.N.Y. Docket No. 18-MJ-54
Long Island Man Pleads Guilty to Distributing Heroin That Caused Death of A College StudentRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Richard Jacobellis pleaded guilty to distributing heroin, further admitting that he distributed heroin that resulted in the death of 20-year-old Nicholas Weber in 2016 and serious bodily injury to Frances Theiling in 2015. As part of his guilty plea, Jacobellis agreed to a specific sentence of 192 months’ imprisonment, to be followed by five years of supervised release, subject to the Court’s approval. Today’s proceeding was held before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“Jacobellis admitted to poisoning people on Long Island by distributing heroin for years, even after his drugs took one life and nearly took another,” stated United States Attorney Donoghue. “The defendant’s conviction in this case will not bring back Nicholas Weber, but it will send a message to others who may consider selling drugs that this Office will bring to justice those who contribute to the opioid epidemic and hold them accountable for the harm they cause.” Mr. Donoghue thanked the Drug Enforcement Administration and the Suffolk County Police Department (“SCPD”) for their partnership and outstanding work on the case.
According to court filings and the defendant’s statements during his guilty plea, Jacobellis was selling narcotics as early as 2012. In 2015, the defendant provided heroin that nearly killed then-18-year-old Frances Theiling, who was saved by SCPD officers. One year later, knowing that he had almost killed Theiling, Jacobellis sold the heroin that killed Nicholas Weber, a 20-year-old student. Although Jacobellis was aware that his heroin had killed Weber, the defendant continued to sell heroin until shortly before his arrest in February 2017.
Weber, a graduate of Kings Park High School, was a champion wrestler who attended Suffolk County Community College. Before his death in May 2016, Weber had been admitted to Stony Brook University, where he intended to study physics, for the fall 2016 semester.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone and Nicholas Moscow are in charge of the prosecution.
The Defendant:
RICHARD JACOBELLIS
Age: 24
Ridge, New YorkE.D.N.Y. Docket No. 17-CR-052 (S-1)(JS)
Local Tax Preparer Pleads Guilty to Filing False Claims with the IRSRead the Press Release
Memphis, TN – A local tax preparer has pleaded guilty to filing false claims in the Memphis area. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty plea today.
According to the charging instrument, from calendar years 2014 to 2016, Gina Holley filed false and fraudulent tax returns when she included false Fuel Tax credits. She did so claiming tax payers were entitled to a tax credit, when in fact, Holley knew taxpayers were not entitled to a tax credit claimed. As a result of Holley’s acts, the Internal Revenue Service (IRS) suffered a loss of over $400,000.
U.S. Attorney D. Michael Dunavant said: "One of the primary functions of this office is to protect the United States Treasury and individual taxpayers. Whenever there is fraud against our tax system, we will use all available resources to punish and deter such dishonest criminal behavior."
Holley pleaded guilty to three counts of presenting false claims to the United States. The maximum penalty is 3 years in prison and a $100,000 fine. Sentencing is scheduled on September 20, 2018 before U.S. District Judge Thomas Parker.
This case was investigated by the IRS.
Assistant U.S. Attorney Damon Keith Griffin is prosecuting the case on the government’s behalf.
Lincoln County Man Sentenced to 18 Months in Prison for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – William Shelton, 49, of Lincoln County, was sentenced last week by United States District Judge David Bramlette III to 18 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced United States Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF"). Shelton was also ordered to pay a $1,500 fine.
On September 27, 2017, William Shelton, a convicted felon, sought to sell a new Ruger pistol for $225. The next day, agents with the Southwest Mississippi Narcotics Enforcement Unit set up a controlled buy using a confidential informant. The informant traveled to Shelton’s home in Lincoln County, Mississippi, and asked to buy the gun. Shelton went into his home, retrieved the pistol, and sold it for $225. Before completing the sale, Shelton asked to shoot the gun "one more time." He then fired the gun five times in rapid succession, emptying it of all of its ammunition.
Shelton has a lengthy criminal history, including multiple felony convictions from California. The case was investigated by ATF and the Southwest Mississippi Narcotics Enforcement Unit.
Jury Convicts Kansas Sex Offender of Sexual AssaultsRead the Press Release
SPRINGFIELD, Mo. – An Emporia, Kansas man has been convicted by a federal trial jury of sexually assaulting two victims, including a 5-year-old who was assaulted at Fort Leonard Wood, Mo.
Craig Ralston, 39, was found guilty on Friday, June 15, 2018, of one count of the aggravated sexual abuse of a child less than 12 years of age and one count of crossing state lines with the intent to commit rape.
Ralston is currently incarcerated in Kansas after being sentenced to nine years and two months in state prison. Ralston pleaded no contest in a 2009 Kansas case to two counts of aggravated indecent liberties involving a 12-year-old victim.
Ralston met both of his victims in the federal case while attending a church in St. Roberts, Mo. Ralston was serving in the United States Army and was stationed at Fort Leonard Wood when he sexually abused a 5-year-old child, which occurred between Nov. 1, 2003, and May 20, 2005. Ralston has been discharged and is no longer active in the military.
In 2008, while living in Kansas City, Mo., Ralston raped an 18-year-old victim multiple times. Ralston also took the 18-year-old victim to Knoxville, Tenn., where he was picking up a vehicle that had been purchased for his then-wife to have upon her return from a missionary trip to India. Ralston raped the victim again while they were in Tennessee.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for seven hours before returning the guilty verdicts to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, June 11, 2018.
Under federal statutes, Ralston is subject to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller and Randall Eggert. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Joshua Adam Schulte Charged with the Unauthorized Disclosure of Classified Information and Other Offenses Relating to the Theft of Classified Material from the Central Intelligence AgencyRead the Press Release
John C. Demers, Assistant Attorney General for National Security, Geoffrey S. Berman, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Joshua Adam Schulte was charged in a 13-count Superseding Indictment (the “Indictment”) in connection with his alleged theft of classified national defense information from the Central Intelligence Agency (“CIA”) and the transmission of that material to an organization that purports to publicly disseminate classified, sensitive, and confidential information (“Organization-1”). The Indictment also charges Schulte with the receipt, possession, and transportation of child pornography, as well as criminal copyright infringement. Schulte, who is presently detained on the child pornography charges, will be arraigned by U.S. District Judge Paul A. Crotty.
“Leaks of classified information pose a danger to the security of all Americans,” said Assistant Attorney General Demers. “It adds insult to injury when, as alleged here, the leaks come from former government officials in whom Americans placed their sacred trust. The National Security Division, alongside our partners in the Intelligence Community, will not waver in our commitment to pursue and hold accountable these officials, and I commend all those at the Department of Justice and the FBI who have worked diligently to investigate this matter and bring these charges.”
"Joshua Schulte, a former employee of the CIA, allegedly used his access at the agency to transmit classified material to an outside organization,” said Manhattan U.S. Attorney Geoffrey S. Berman. “During the course of this investigation, federal agents also discovered alleged child pornography in Schulte’s New York City residence. We and our law enforcement partners are committed to protecting national security information and ensuring that those trusted to handle it honor their important responsibilities. Unlawful disclosure of classified intelligence can pose a grave threat to our national security, potentially endangering the safety of Americans.”
“As alleged, Schulte utterly betrayed this nation and downright violated his victims. As an employee of the CIA, Schulte took an oath to protect this country, but he blatantly endangered it by the transmission of Classified Information.” said Assistant Director-in-Charge William F. Sweeney, Jr. “To further endanger those around him, Schulte allegedly received, possessed, and transmitted thousands of child pornographic photos and videos. In an effort to protect this nation against crimes such as these, the FBI's Counterintelligence Division in New York will continue to keep our mission at the forefront of our investigations in protecting the American public."
According to the Indictment, other court filings, and statements made during court proceedings: On March 7, 2017, Organization-1 released on the Internet classified national defense material belonging to the CIA (the “Classified Information”). In 2016, Schulte, who was then employed by the CIA, stole the Classified Information from a computer network at the CIA and later transmitted it to Organization-1. Schulte also intentionally caused damage without authorization to a CIA computer system by granting himself unauthorized access to the system, deleting records of his activities, and denying others access to the system. Schulte subsequently made material false statements to FBI agents concerning his conduct at the CIA.
Schulte was previously arrested on August 24, 2017, on charges relating to his receipt, possession, and transportation of approximately ten thousand images and videos of child pornography. In March 2017, members of the FBI had searched Schulte’s residence in New York, New York, pursuant to a search warrant and recovered, among other things, multiple computers, servers, and other portable electronic storage devices, including Schulte’s personal desktop computer (the “Personal Computer”). On the Personal Computer, FBI agents found an encrypted container (the “Encrypted Container”), which held over 10,000 images and videos of child pornography. The Encrypted Container with the child pornography files was identified by FBI computer scientists beneath three layers of password protection on the Personal Computer. Each layer, including the Encrypted Container, was unlocked using passwords previously used by Schulte on one of his cellphones. Moreover, FBI agents identified Internet chat logs in which Schulte and others discussed their receipt and distribution of child pornography. FBI agents also identified a series of Google searches conducted by Schulte in which he searched the Internet for child pornography.
Schulte, 29, of New York, New York, is charged with one count each of (i) illegal gathering of national defense information, (ii) illegal transmission of lawfully possessed national defense information, (iii) illegal transmission of unlawfully possessed national defense information, (iv) unauthorized access to a computer to obtain classified information, (v) theft of Government property, (vi) unauthorized access of a computer to obtain information from a Department or Agency of the United States, (vii) causing transmission of a harmful computer program, information, code, or command, (viii) making material false statements to representatives of the FBI, (ix) obstruction of justice, (x) receipt of child pornography, (xi) possession of child pornography, (xii) transportation of child pornography, and (xiii) copyright infringement. A chart containing the charges and maximum penalties is below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative efforts of the FBI.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sidhardha Kamaraju and Matthew Laroche are in charge of the prosecution, with assistance from Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section.Joshua Adam Schulte Charged with the Unauthorized Disclosure of Classified Information and Other Offenses Relating to the Theft of Classified Material from the Central Intelligence AgencyRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that JOSHUA ADAM SCHULTE was charged in a 13-count Superseding Indictment (the “Indictment”) in connection with his alleged theft of classified national defense information from the Central Intelligence Agency (“CIA”) and the transmission of that material to an organization that purports to publicly disseminate classified, sensitive, and confidential information (“Organization-1”). The Indictment also charges SCHULTE with the receipt, possession, and transportation of child pornography, as well as criminal copyright infringement. SCHULTE, who is presently detained on the child pornography charges, will be arraigned by U.S. District Judge Paul A. Crotty.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Joshua Schulte, a former employee of the CIA, allegedly used his access at the agency to transmit classified material to an outside organization. During the course of this investigation, federal agents also discovered alleged child pornography in Schulte’s New York City residence. We and our law enforcement partners are committed to protecting national security information and ensuring that those trusted to handle it honor their important responsibilities. Unlawful disclosure of classified intelligence can pose a grave threat to our national security, potentially endangering the safety of Americans.”
Assistant Attorney General John C. Demers said: “The National Security Division, alongside our partners in the Intelligence Community, will not waver in our commitment to pursue and hold accountable these officials, and I commend all those at the Department of Justice and the FBI who have worked diligently to investigate this matter and bring these charges.”
Assistant Director-in-Charge William F. Sweeney, Jr. said: “As alleged, Schulte utterly betrayed this nation and downright violated his victims. As an employee of the CIA, Schulte took an oath to protect this country, but he blatantly endangered it by the transmission of Classified Information. To further endanger those around him, Schulte allegedly received, possessed, and transmitted thousands of child pornographic photos and videos. In an effort to protect this nation against crimes such as these, the FBI's Counterintelligence Division in New York will continue to keep our mission at the forefront of our investigations in protecting the American public."
According to the Indictment, other court filings, and statements made during court proceedings:[1]
On March 7, 2017, Organization-1 released on the Internet classified national defense material belonging to the CIA (the “Classified Information”). In 2016, SCHULTE, who was then employed by the CIA, stole the Classified Information from a computer network at the CIA and later transmitted it to Organization-1. SCHULTE also intentionally caused damage without authorization to a CIA computer system by granting himself unauthorized access to the system, deleting records of his activities, and denying others access to the system. SCHULTE subsequently made material false statements to FBI agents concerning his conduct at the CIA.
SCHULTE was previously arrested on August 24, 2017, on charges relating to his receipt, possession, and transportation of approximately ten thousand images and videos of child pornography. In March 2017, members of the FBI had searched SCHULTE’s residence in New York, New York, pursuant to a search warrant and recovered, among other things, multiple computers, servers, and other portable electronic storage devices, including Schulte’s personal desktop computer (the “Personal Computer”). On the Personal Computer, FBI agents found an encrypted container (the “Encrypted Container”), which held over 10,000 images and videos of child pornography. The Encrypted Container with the child pornography files was identified by FBI computer scientists beneath three layers of password protection on the Personal Computer. Each layer, including the Encrypted Container, was unlocked using passwords previously used by SCHULTE on one of his cellphones. Moreover, FBI agents identified Internet chat logs in which SCHULTE and others discussed their receipt and distribution of child pornography. FBI agents also identified a series of Google searches conducted by SCHULTE in which he searched the Internet for child pornography.
* * *
SCHULTE, 29, of New York, New York, is charged with one count each of (i) illegal gathering of national defense information, (ii) illegal transmission of lawfully possessed national defense information, (iii) illegal transmission of unlawfully possessed national defense information, (iv) unauthorized access to a computer to obtain classified information, (v) theft of Government property, (vi) unauthorized access of a computer to obtain information from a Department or Agency of the United States, (vii) causing transmission of a harmful computer program, information, code, or command, (viii) making material false statements to representatives of the FBI, (ix) obstruction of justice, (x) receipt of child pornography, (xi) possession of child pornography, (xii) transportation of child pornography, and (xiii) copyright infringement. A chart containing the charges and maximum penalties is below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative efforts of the FBI.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sidhardha Kamaraju and Matthew Laroche are in charge of the prosecution, with assistance from Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section.
Count Number
Description
Maximum Penalty
One
Illegal Gathering of National Defense Information
18 U.S.C. §§ 793(b) and 2
10 years in prison
Two
Illegal Transmission of Lawfully Possessed National Defense Information
18 U.S.C. §§ 793(d) and 2
10 years in prison
Three
Illegal Transmission of Unlawfully Possessed National Defense Information
18 U.S.C. §§ 793(e) and 2
10 years in prison
Four
Unauthorized Access to a Computer To Obtain Classified Information
18 U.S.C. §§ 1030(a)(1) and 2
10 years in prison
Five
Theft of Government Property
18 U.S.C. §§ 641 and 2
10 years in prison
Six
Unauthorized Access of a Computer to Obtain Information from a Department or Agency of the United States
18 U.S.C. §§ 1030(a)(2) and 2
5 years in prison
Seven
Causing Transmission of a Harmful Computer Program, Information, Code, or Command
18 U.S.C. §§ 1030(a)(5) and 2
10 years in prison
Eight
Making False Statements
18 U.S.C. §§ 1001 and 2
5 years in prison
Nine
Obstruction of Justice
18 U.S.C. §§ 1503 and 2
10 years in prison
Ten
Receipt of Child Pornography
18 U.S.C. §§ 2252A(a)(2)(B), (b)(1), and 2
20 years in prison
Eleven
Possession of Child Pornography
18 U.S.C. §§ 2252A(a)(5)(B), (b)(2), and 2
10 years in prison
Twelve
Transportation of Child Pornography
18 U.S.C. § 2252A(a)(1)
20 years in prison
Thirteen
Criminal Copyright Infringement
17 U.S.C. § 506(a)(1)(A) and 18 U.S.C. § 2319(b)(1)
5 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, the description of the Indictment set forth herein, as well as the other statements described herein, constitute only allegations, and every fact described should be treated as an allegation.
Jefferson County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Edwin Rogers, of Kearneysville, West Virginia, was sentenced today to 63 months incarceration for a firearms violation, United States Attorney Bill Powell announced.
Rogers, age 28, who had previously been convicted of a felony offense in Jefferson County, is prohibited from possessing a firearm. He pled guilty today to one count of “Unlawful Possession of a Firearm” in March 2018. The crime occurred on April 27, 2016 in Berkeley County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Adam Joseph Plauche, of Harpers Ferry, West Virginia, was sentenced today to 18 months incarceration for selling a stolen firearm, United States Attorney Bill Powell announced.
Plauche, age 38, pled guilty to one count of “Possession and Sale of Stolen Firearm” in March 2018. Plauche admitted to having a stolen firearm and shipping it across state lines in September 2015 in Jefferson County, West Virginia.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Paul T. Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jackson Man Gets 5 years in Prison for Illegally Possessing Firearm under Project EJECTRead the Press Release
Jackson, Miss. – Jason Lewis, 33, of Jackson, was sentenced on June 11, 2018, by United States District Judge Carlton W. Reeves, to 5 years in federal prison, followed by 3 years of supervised release, for illegally possessing a gun, announced United States Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF"). Lewis was also ordered to pay a $1,500 fine.
On November 26, 2017, Jason Lewis, a convicted felon, possessed a gun inside his jacket pocket at Union Station, a train station in Jackson. Lewis has several previous felony convictions, including multiple convictions for aggravated assault and a conviction for possession of cocaine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with ATF agents and Project EJECT task force members in the investigation of this case.
Irish National Admits to Improper Use of A PassportRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Adam Doumbouya, 30, of Ireland, pleaded guilty to improper use of another person’s passport before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that the defendant attempted to enter the United States at the Amtrak Train Station Port of Entry in Niagara Falls on November 19, 2017. Doumbouya presented an Irish passport to a Customs and Border Protection Officer bearing the name Mariame Kourouma. The defendant also told the officer she was traveling to New York City to visit relatives.
An officer entered Doumbouya’s fingerprints into a Fingerprint Identification System and determined that she was in fact Adam Doumbouya, a citizen of Ireland, and not Mariame Kourouma. The investigation further revealed that the defendant was previously denied entry to the United States at the Rouses Point, New York Port of Entry, and had been refused a visa at the United States consulate in Dublin.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.Sentencing is scheduled for August 8, 2018, at 1:00 p.m. before Judge Arcara.
Hope Arkansas Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Lacortney D. Sanders (aka “Supreme”), age 36, of Hope, Arkansas was sentenced today to 121 months in federal prison followed by five years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, in November 2013, during the course of an investigation into the distribution of methamphetamine in Hampstead County, Arkansas and elsewhere in the Western District of Arkansas, the FBI and the FBI Task Force identified Sanders as a source of supply of methamphetamine. During the investigation, agents were able to purchase methamphetamine from Sanders utilizing a confidential informant. The suspected methamphetamine was subsequently submitted to the Arkansas State Crime Laboratory where it was tested and determined to be a mixture or substance containing methamphetamine.
Sanders was indicted by a federal grand jury in February 2015 and pled guilty in January 2017.
This case was investigated by The FBI and the FBI Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Holden Man Pleads Guilty to Marijuana Conspiracy and StructuringRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Christopher Ruhlin, 49, of Holden, pleaded guilty today in U.S. District Court to conspiring to manufacture, distribute, and possess with intent to distribute marijuana and to structuring cash transactions to evade federal cash transaction reporting requirements.
According to court records, between October 2010 and August 2016, the defendant conspired with others to illegally grow marijuana at a facility in Frankfort, Maine and to distribute it at the Owl’s Club, in Bangor in violation of federal law, and under the cover of, but in violation of, Maine’s Medical Marijuana program. The defendant and others operated the Frankfort facility until 2013. Thereafter, others operated it. In May 2016, agents searched the Frankfort facility and seized marijuana in various stages of harvest and cultivation, together with paraphernalia and items used to manufacture and process marijuana. In August 2016, agents searched property owned by the defendant in downtown Bangor, including the Owl’s Club, and seized processed marijuana. At the time of the searches, the defendant was not registered as a medical marijuana caregiver with the Maine Department of Health and Human Services (DHHS), and the location of the Frankfort facility was not reported to DHHS as required.
Under federal law, financial institutions that receive more than $10,000 in cash from a customer are required to report the transaction to the Internal Revenue Service (IRS). Structuring occurs when a customer breaks up cash transactions into multiple increments of less than $10,000, to avoid these cash transaction reporting requirements. On May 28, 2013, the defendant structured cash deposits into his bank account in order to cause the bank not to file a currency transaction report.
The defendant faces up to 20 years in prison, between three years and life of supervised release, and a $1,000,000 fine for the drug conspiracy. He faces up to five years in prison, a $250,000 fine, and up to three years of supervised release for structuring. In a plea agreement, the defendant agreed to forfeit $115,000. The defendant will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Drug Enforcement Administration.
Hancock County man sentenced for child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Michael Dziatkowicz, of Weirton, West Virginia, was sentenced today to 24 months incarceration for possessing child pornography, United States Attorney Bill Powell announced.
Dziatkowicz, age 36, pled guilty to one count of “Possession of Child Pornography” in March 2018. Dziatkowicz admitted to having child pornography in February 2015 in Hancock County, West Virginia.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Hancock County Sheriff’s Office investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Hagerstown Heroin Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Joseph King, age 25, of Hagerstown, Maryland today to 10 years in prison, followed by three years of supervised release, for distribution of heroin and furanyl fentanyl resulting in serious bodily injury to an individual who suffered two overdoses and died after using the drugs.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Scott Hoernke of the Drug Enforcement Administration - Washington Field Division; Sheriff Charles A. “Chuck” Jenkins; and Hagerstown Police Chief Victor Brito and Washington County Sheriff Doug Mullendore of the Washington County Narcotics Task Force.
According to King’s plea agreement, on June 1, 2016, he distributed heroin to Nicholas Perry on two separate occasions at a gas station in Hagerstown, Maryland. The second batch Perry received from King was laced with furanyl fentanyl. After using the second batch of heroin, Perry suffered a non-fatal overdose. First responders were able to revive Perry after administering two doses of Narcan before taking him to the hospital. Perry left the hospital against medical advice, and early the next morning he suffered a second overdose and died at his residence in Frederick, Maryland. Investigators seized some folded paper with heroin residue at the scene, as well as a small packet of heroin from the dumpster. The residue and heroin were analyzed and found to be heroin and furanyl fentanyl. The Maryland Office of the Chief Medical Examiner ruled the cause of death as mixed drug intoxication, specifically, heroin, fentanyl and despropionyl fentanyl.
On three separate occasions between June 3, and June 13, 2016, King distributed heroin, and heroin laced with furanyl fentanyl, totaling 2.3 grams, to a cooperating individual. On November 9, 2016, King was interviewed by law enforcement after waiving his rights. King admitted that he twice sold heroin to Perry on June 1, 2016.
United States Attorney Robert K. Hur praised the DEA, Frederick County Sheriff’s Office, and Washington County Narcotics Task Force, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Burden H. Walker, who prosecuted the case.
Georgia couple sentenced to prison for scheme to steal tax refunds using stolen identitiesRead the Press Release
ATLANTA - Raphael Menard and Leshanda Hunte have been sentenced to federal prison for running a tax refund scheme using the stolen identities of disabled and elderly taxpayers and causing more than a $250,000 loss to the government.
“Menard and Hunte preyed on elderly and disabled citizens who were the most vulnerable and the least likely to report the defendants’ crimes,” said U.S. Attorney Byung J. “BJay” Pak. “As those who perpetrate these types of crimes become more creative, citizens must closely monitor their own personal information to avoid becoming another victim of their schemes.”
“The defendants purposefully targeted our more vulnerable citizens and used that to their advantage in perpetrating the fraud scheme,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “The defendants’ lack of compassion and disregard for this segment of the citizenry continues to drive our commitment to investigating these matters as we partner with the United States Attorney’s Office in the reduction of identity theft crimes in the area.”
According to U.S. Attorney Pak, the charges and other information presented in court: Starting in 2011, Menard and Hunte ran a fraud scheme that involved filing fraudulent federal income tax returns in the names of other people. This scheme netted over $250,000 for the defendants. Menard and Hunte targeted disabled and elderly victims who did not file income tax returns and would not report the theft of their identities to the IRS. Some of the tax returns were filed using the identities of people who had recently died.
Menard and Hunte shared responsibility for perpetrating their illegal scheme and used the ill-gotten proceeds to finance a lavish personal lifestyle, including travel and large retail purchases. The scheme unraveled after employees at Chase Bank noticed the suspicious deposits and froze the couple’s joint accounts. This led Hunte to go to the bank and demand the release of the stolen money, telling bank employees that she was a tax preparer and the refunds belonged to her clients. In reality, none of the victims knew Hunte or Menard, and the defendants were not registered tax preparers.
On October 31, 2012, Hunte brought a relative to the bank who presented fake identification in the name of one of Hunte’s victims, causing the bank to release over $8,500 in cash to Hunte. Two days later, Menard attempted to pull off the same scheme, but was arrested after bank employees spotted the fake identification. Menard’s arrest led to the seizure of the money that remained in the defendants’ bank accounts and launched an IRS investigation that uncovered the extent of their scheme.
Raphael Menard, 33, of Marietta, Georgia has been sentenced to three years, 10 months in prison to be followed by three years of supervised release. Menard pleaded guilty to conspiracy and theft of government money on January 10, 2018.
Leshanda Hunte, 34, of Marietta, Georgia has been sentenced to two years, six months in prison to be followed by two years of supervised release. Hunte was found guilty of conspiracy and theft of government money by a jury on February 16, 2018.
Menard and Hunte were ordered to pay restitution to the government in the amount of $206,564.04.
This case was investigated by the Internal Revenue Service Criminal Investigation Division.
Assistant U.S. Attorneys Trevor Wilmot and Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gardiner Man Pleads Guilty to Producing and Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Richard Bailey, 67, of Gardiner, Maine, pleaded guilty today in U.S. District Court to production and possession of child pornography.
According to court records, law enforcement agents received information that the defendant was uploading images of child pornography to various websites. Based on this information, they obtained a search warrant for the defendant’s home in Gardiner. During the execution of the search warrant, the defendant admitted that agents would find multiple images of child pornography involving underage boys on his electronic devices. The investigation revealed that the defendant produced child pornography by encouraging adults in the Philippines during online chats to engage in sexual activity with children that was videotaped, photographed, and disseminated in real time over the internet. A forensic examination of the defendant’s electronic devices revealed multiple images and videos of child pornography including images obtained from the Philippine sex shows.
The defendant faces between 15 and 30 years in prison on the production count and up to 20 years on the possession count. He faces supervised release for life and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Maine State Police Computer Crimes Unit. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fulton Woman Sentenced to 30 Years for Child Pornography ProductionRead the Press Release
SYRACUSE, NEW YORK – Tammy Lamere, age 47, of Fulton, New York, was sentenced today to serve 30 years in prison for conspiracy to sexually exploit and sexual exploitation of a child, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Division of Homeland Security Investigations (HSI).
The sentencing follows Lamere’s earlier plea of guilty in which she admitted to conspiring with Cilf Seaway to sexually abuse a child from 2010-2013, when the child was between the ages of 5 and 9 years old. Lamere admitted that the abuse was photographed on at least 11 occasions, in which approximately 225 images and videos were produced.
Senior United States District Judge Norman A. Mordue sentenced Lamere to 30 years on each of her two counts of conviction, to run concurrently to one another. Following her sentence, Lamere will be on supervised release for 15 years, and will be required to register as a sex offender.
Co-defendant Clif Seaway was sentenced to serve 360 years in prison in connection with his convictions for two counts of Conspiracy to Sexually Exploit Children and ten counts of Sexual Exploitation of a Child, following a four-day jury trial in December 2017. In a related case, Tammy Martin of Carthage, New York, was sentenced to serve 90 years in prison for her conviction by guilty plea on three counts of sexual exploitation of a child that involved three different children.
Lamere’s case was investigated by the New York State Police, and the United States Department of Homeland Security, Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorneys Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Carina Schoenberger.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former LAPD Officer Sentenced to 60 Months in Federal Prison After Illegal Drug Lab Exploded in His GarageRead the Press Release
LOS ANGELES – A former Los Angeles Police Department officer whose garage explosion revealed the makeshift lab where he used butane to extract hashish oil containing tetrahydrocannabinol, or “THC,” from marijuana plants, was sentenced to five years in federal prison.
Joseph Jay Spadafore, 64, of Menifee was sentenced this morning by United States District Judge John F. Walter after a federal jury found him guilty of maintaining drug involved premises.
During the trial in March, 2018, a jury heard evidence that Spadafore, who was an LAPD officer from 1976 to 1991, converted a house into a drug lab where he extracted hashish oil containing THC from marijuana plants using a dangerous process involving butane, a highly flammable gas. A Los Angeles Fire Captain testified about the 911 calls from neighbors reporting a loud explosion just before midnight on November 3, 2017, and a call from Spadafore himself at the house in a residential neighborhood in Lake Elsinore.
At the time of the explosion and subsequent fire, Spadafore was the only person living at the house, which the homeowner believed had been rented to a different man residing in Florida. When the firefighters arrived to combat the blaze, the entire garage was engulfed in flames and Spadafore was the only person present. When the firefighters swept the house for additional occupants, they instead found what they immediately recognized as potentially hazardous lab equipment and chemicals in almost every room. Law enforcement subsequently seized at least 22 propane tanks in the garage, dozens of soda kegs and other large containers filled with extracted THC, jars of THC powder, butane and trash bags filled with marijuana. In total, law enforcement found over 28 liters of hashish oil containing THC scattered in virtually every room of the residence, which had been converted almost entirely into a drug lab.
The jury heard testimony that the only room in the home that appeared occupied was the master bedroom, which was filled with Spadafore’s mail and personal belongings, including two firearms. One firearm was loaded and found underneath Spadafore’s pillow.
At sentencing, Judge Walter rejected Spadafore’s argument that he was simply “crashing” at the house because he needed a place to sleep, finding that he was involved in the manufacture of hashish oil at the house and that Spadafore possessed the two firearms to protect himself and the drugs, which were valued at between $300,000 and $500,000. Among the factors Judge Walter cited as influencing his sentence were Spadafore’s lack of any acceptance of responsibility or remorse for failing to warn first responders about the dangerous quantities of butane and propane inside the home and garage before they entered to conduct a safety sweep when responding to the fire.
This case was investigated by the DEA’s Riverside Field Office. The case was prosecuted by Assistant United States Attorneys Jehan M. Pernas and Frances S. Lewis of the General Crimes Section and Kathy Yu of the Organized Crime Drug Enforcement Task Force Section.
Former IRS-CI Special Agent Convicted of Filing False Tax Returns, Theft of Government Money and Obstruction of JusticeRead the Press Release
A former special agent for the Internal Revenue Service Criminal Investigation (IRS-CI) Division was convicted on June 15 after a jury in Sacramento, California found her guilty of filing false tax returns, obstruction of justice and stealing government money, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Alex G. Tse for the Northern District of California.
According to court documents and evidence introduced at trial, Alena Aleykina, who is also a Certified Public Accountant and holds a master’s degree in business administration, filed six false tax returns: three personal tax returns for years 2009, 2010, and 2011 and three in the names of trusts she created for years 2010 and 2011. On her personal tax returns, Aleykina fraudulently claimed the head of household filing status, false dependents, and deductions for education expenses to which she was not entitled. On her trust tax returns, she failed to report rent she received from the tenants of her rental property and falsely claimed to be paying wages to her mother and her sister to care for her son and for her father.
Additionally, Aleykina stole government funds and obstructed justice during the investigation. She stole from the IRS’s Tuition Assistance Program by falsely claiming $4,000 in tuition reimbursement for classes that she did not take. When criminal investigators approached Aleykina to retrieve her government laptop, Aleykina lied to the agents about the location of the laptop and began deleting files from the computer after the agents left. The total loss to the government from Aleykina’s conduct is more than $60,000.
Sentencing has been scheduled for Sept. 25 before Judge John A. Mendez. Aleykina faces a maximum statutory penalty of three years in prison for each false tax return count, 10 years in prison for theft of government funds, and 20 years in prison for obstruction of justice as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Tse thanked special agents of the Treasury Inspector General for Tax Administration and IRS-CI, who conducted the investigation, and Assistant U.S. Attorney William Frentzen and Tax Division Trial Attorneys Arthur Ewenczyk and Charles O’Reilly, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former IRS-CI Special Agent Convicted of Filing False Tax Returns, Theft of Government Money and Obstruction of JusticeRead the Press Release
SAN FRANCISCO – Alena Aleykina, former special agent for the Internal Revenue Service Criminal Investigation (IRS-CI) Division, was convicted on June 15 after a jury in Sacramento, Calif., found her guilty of filing false tax returns, obstruction of justice, and stealing government money, announced Acting U.S. Attorney Alex G. Tse and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. The verdict followed a two-week trial in the district court in the Eastern District of California before the Honorable John A. Mendez, U.S. District Judge.
According to court documents and evidence introduced at trial, Aleykina, of Sacramento, is a Certified Public Accountant and holds a master’s degree in business administration. She filed six false tax returns: three personal tax returns for years 2009, 2010, and 2011 and three in the names of trusts she created for years 2010 and 2011. On her personal tax returns, Aleykina fraudulently claimed the head of household filing status, false dependents, and deductions for education expenses to which she was not entitled. She also falsely claimed on a trust tax return to be paying wages to her mother and her sister to care for her son and for her father.
Additionally, Aleykina stole government funds and obstructed justice during the investigation. She stole from the IRS’s Tuition Assistance Program by falsely claiming $4,000 in tuition reimbursement for classes that she did not take. When criminal investigators approached Aleykina to retrieve her government laptop, Aleykina lied to the agents about the location of the laptop and began deleting files from the computer after the agents left. The total loss to the government from Aleykina’s conduct is more than $60,000.
Sentencing has been scheduled for September 25, 2018, before Judge Mendez. Aleykina faces a maximum statutory penalty of three years in prison for each false tax return count, 10 years in prison for theft of government funds, and 20 years in prison for obstruction of justice. In addition, the court may order Aleykina to serve an additional period of supervised release, and pay restitution and monetary penalties. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant U.S. Attorney William Frentzen and Tax Division Trial Attorneys Arthur Ewenczyk. The United States Attorney’s Office in San Francisco, California, is prosecuting this case with the Tax Division; the United States Attorney’s Office for the Eastern District of Califonia is recused from this matter.
Former Crockett County 911-Director Convicted of EmbezzlementRead the Press Release
Jackson, TN – After a two-week trial in federal court, on Friday, June 15, 2018, Brian Black, 42, of Dyersburg, Tennessee, was convicted of embezzlement. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty verdict today.
According to information presented in court, Black embezzled at least $178,000 from the trust account of Oleen H. Fewell Estate. Black was the Chancery Court appointed trustee for the trust, which had been set up by the will of Oleen Fewell for benefit of her daughter, Sharon Connor of Alamo, Tennessee. Instead of using the trust’s money for the benefit only of Sharon Connor, Black spent a large part of the trust’s funds for his own personal benefit. Among other things, Black wrote over $70,000 in trust checks directly to himself, spent almost $6,000 of trust money to take a vacation trip to Florida to attend the St. Louis Cardinals baseball team fantasy camp, and used over $12,000 of trust money to buy items for his own home in Dyersburg.
U.S. Attorney D. Michael Dunavant said: "This office is committed to exposing and holding accountable any persons who use their position of trust and authority to prey upon innocent victims. Across the rural communities of the Western District of Tennessee, including Crockett County, we will always aggressively prosecute cases involving financial fraud and exploitation of the elderly. We are pleased with the jury verdict in this case, and commend the United States Postal Inspection Service for their outstanding investigation in this complex matter."
David M. McGinnis, the Inspector In Charge of the Charlotte Division of the United States Postal Inspection Service, stated "Protecting vulnerable victims is a top priority for the Postal Inspection Service. Postal Inspectors are committed to protecting the sanctity of the United States Mail and will hold those accountable that steal from innocent victims."
By the time United States Postal Inspectors learned of the fraud and began an investigation, Black had spent all of the money in the trust account. Black was the former 911 director for Crockett County.
Sentencing is scheduled for September 18, 2018 at 10:00 a.m. before Chief U.S. District Judge S. Thomas Anderson. Black faces a possible maximum sentence of 90 years imprisonment.
The United States Postal Inspection Service investigated this case.
Assistant U.S. Attorney Tony Arvin is prosecuting this case on the government’s behalf.
Former Arkansas State Senator Sentenced to Prison for Wire Fraud, Money Laundering, and Bank FraudRead the Press Release
Former Arkansas State Senator Jake C. Files was sentenced to 18 months in prison for orchestrating a scheme to obtain approximately $46,500 in state government funds through fraudulent means and for obtaining approximately $56,700 in loan proceeds, also through fraudulent means.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Duane A. Kees for the Western District of Arkansas made the announcement.
Files, 46, of Fort Smith, Arkansas who represented Arkansas’s state legislative district No. 8 in the Arkansas State Senate until his resignation in January 2018 following his guilty plea in this matter, was sentenced by Chief U.S. District Court Judge P. K. Holmes III of the Western District of Arkansas. Judge Holmes ordered Files to serve three years of supervised release following his prison sentence as well as pay restitution in the amount of $83,903.77. Files was ordered to surrender to the U.S. Marshals Service to begin serving his sentence on Aug. 2.
Files pleaded guilty to wire fraud, money laundering, and bank fraud on Jan. 29. According to admissions made in connection with his guilty plea, between August 2016 and December 2016, while serving in the Arkansas State Senate, Files used his senate office to obtain government money known as General Improvement Funds (GIF) through fraudulent means and for personal gain. Specifically, Files authorized and directed the Western Arkansas Economic Development District, which was responsible for administrating the GIF in Files’s legislative district, to award a total of $46,500 in GIF money to the City of Fort Smith. To secure the release of the GIF money, Files prepared and submitted three fraudulent bids to the Western Arkansas Economic Development District. Files then instructed an associate to open a bank account under that person’s name to conceal his role as the ultimate beneficiary of the GIF award. When a first installment of approximately $25,900 was wire transferred from the City of Fort Smith to the associate’s bank account, the associate withdrew approximately $11,900 of the funds in a cashier’s check made payable to FFH Construction, Files’s construction company, and the rest in cash. The associate then hand-delivered the check and the cash to Files who, in turn, deposited the check into his personal bank account.
Files also admitted to submitting a materially false loan application in November 2016 in connection with a loan application for approximately $56,700 from First Western Bank.
The FBI investigated the case. Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas prosecuted the case.
Former Arkansas State Senator Sentenced to 18 Months in Federal Prison for Wire Fraud, Money Laundering, and Bank FraudRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that Jake C. Files, age 46, of Fort Smith, Arkansas, was sentenced today to 18 months in federal prison followed by three years of supervised release. Files was also ordered to pay $83,903.77 in restitution, on one count each of Wire Fraud, Money Laundering and Bank Fraud. Files was ordered to surrender to the U.S. Marshals Service to begin serving his sentence on Aug. 2. The Honorable Chief Judge P. K. Holmes III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, between August 2016 and December 2016, while serving in the Arkansas State Senate, Files used his senate office to obtain government money known as General Improvement Funds (GIF) through fraudulent means and for personal gain. Specifically, Files authorized and directed the Western Arkansas Economic Development District, which was responsible for administrating the GIF in Files’s legislative district, to award a total of $46,500 in GIF money to the City of Fort Smith. To secure the release of the GIF money, Files prepared and submitted three fraudulent bids to the Western Arkansas Economic Development District. Files then instructed an associate to open a bank account under her name to conceal his role as the ultimately beneficiary of the GIF award. When a first installment of approximately $26,900 was wire transferred from the City of Fort Smith to the associate’s bank account, the associate withdrew approximately $11,900 of the funds in a cashier’s check made payable to FFH Construction, Files’s construction company, and the rest in cash. The associate then hand-delivered the check and the cash to Files who, in turn, deposited the check into his personal bank account.
Files also admitted to submitting a materially false loan application in application in November 2016 as part of a scheme to secure approximately $56,700 from First Western Bank.
Files plead guilty in January 2018.
This case was investigated by the Federal Bureau of Investigations. Assistant United States Attorney’s Kyra Jenner and Aaron Jennen from the Western District of Arkansas and Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section prosecuted the case for the United States.
Former Allen County Sheriff indicted for soliciting bribes, extortion, making false statementsRead the Press Release
The former Allen County Sheriff was indicted in federal court for asking for and taking bribes from drug dealers, people arrested in prostitution stings, suspected gamblers and others.
Samuel A. Crish, 54, was charged in a six-count indictment with multiple counts of extortion, soliciting bribes and making false statements to the FBI.
“The conduct described in these charges is as offensive as it is audacious,” U.S. Attorney Justin E. Herdman said. “Demanding bribes from drug dealers, gamblers and johns arrested in prostitution stings reads like something out of a bad movie. This defendant let down the people of Allen County and the men and women who served with him at the Sheriff’s Office. He does not represent the vast majority of law enforcement, and he will now be held accountable for his crimes.”
“Mr. Crish tarnished his badge when he chose to use his official capacity to influence criminal investigations and to protect his self-interests,” said FBI Special Agent in Charge Stephen D. Anthony. “He further exacerbated the situation by lying to the FBI in an attempt to conceal his criminal conduct. As Mr. Crish was a law enforcement officer and county sheriff -- sworn to uphold the law -- his conduct is particularly egregious.”
The charges detail Crish extorting or soliciting nearly $100,000 from five people between 2012 and 2016.
According to the indictment:
Crish joined the Allen County Sheriff’s Office in 1991, where he held numerous positions, including commander of the office’s Investigative Division and the West Central Ohio Crime Task Force (WCOCTF). He was elected sheriff in 2008, 2012 and 2016.
In June 2012, Crish approached a person identified in the charges as Person 1 and asked Person 1 for $8,000, falsely stating he needed the money to cover medical bills. Person 1 gave Crish the money in cash in an alley behind the sheriff’s office in July 2012.
Two months later, Person 1 applied for the position of nurse at the Allen County Jail, which Crish oversaw. Based on conversations with Crish, Person 1 understood the job was theirs. Crish stated in October 2012 he would try to hire Person 1 as nurse. In the same conversation, he stated he needed $42,000 to pay his debts and asked if Person 1 could help.
Person 1 took out a home equity line of credit and, on Oct. 12, 2012, gave Crish a check for $42,000 in the alley behind the sheriff’s office. Crish agreed to repay the money in monthly increments of $480. On Dec. 15, 2012, Person 1 was hired by the Allen County Sheriff’s Office to work as the nurse at the county jail.
In 2011, the WCOCTF was investigating Person 2 for drug offenses. That investigation did not result in criminal charges. In 2013, Person 2 called Crish and asked that he not send deputies for a two-day party Person 2 planned in which he charged a cover, sold liquor and generated a profit of up to $15,000.
Crish then sent Person 2 numerous messages asking about money. At some point in February or March 2013, Person 2 gave Crish $20,000 in cash. Crish promised to repay the money plus $5,000 in interest within a few weeks.
Crish and Person 2 met on April 22, 2013 to discuss an undercover operation, and Crish told Person 2 he was “going to get indicted.” Crish also stated he would “take care of it” if Person 2 would forgive half of the $20,000 debt.
Crish made small repayments to Person 2 in April and May 2013. The WCOCTF investigated Person 2 for drug trafficking and Person 2 was arrested on Dec. 5, 2013. Crish was named as a defense witness. Person 2 pleaded guilty in Allen County Court of Common Pleas on Sept. 23, 2014 and was sentenced to 24 years in prison on Dec. 2, 2014.
Person 3 operated a used car business and was arrested by members of the sheriff’s office and WCOCTF on Aug. 19, 2015 during a prostitution sting. He was charged with solicitation in Lima Municipal Court.
Crish visited Person 3’s business several times in August and September 2015, at one point asking Person 3 for a $7,000 loan. Person 3 gave Crish a check for $7,000 on Sept. 25, 2015.
Crish met with prosecutors and law enforcement officials about Person 3’s case on Nov. 24, 2015, and demanded the Lima City Attorney’s Office drop the charges. The solicitation case was dismissed on Feb. 18, 2016. Eight days later, Crish texted Person 3 to meet, where they discussed the dismissal of Person 3’s case.
Person 4 operated a used car business in Elida, Ohio. Crish asked Person 4 in September 2015 to work as an informant. He also asked Person 4 to loan him $10,000.
Person 4 gave Crish $10,000 in cash on Nov. 3, 2015. The next day, Person 4 was arrested at a motel in Lima as part of a prostitution sting operation. Following his arrest, Person 4 asked to speak to Crish. All of the other men arrested were charged.
Crish visited Person 4’s business on Nov. 5, 2015, and told him not to worry about the arrest because he was working for Crish.
Crish visited Person 4’s business again on Nov. 17, 2015, and asked for $500. Person 4 insisted Crish would have to pay back the $500, unlike the previous $10,000. Crish called Person 4 in May 2016 and told him he was “fine” referring to the charges for the prostitution arrest.
Person 5 owned a grocery store in Allen County. Crish stopped by Person 5’s business in October 2015 to ask for a loan. Crish inferred during the visit that an agency was coming to investigate Person 5’s business for suspected illegal gambling operations, but that Crish could stop the investigation if Person 5 provided Crish with a loan.
Person 5 gave Crish a $2,000 loan in October 2015, which Crish repaid without interest.
This case was investigated by the FBI and the Ohio Bureau of Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Noah Hood and Gene Crawford.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Eighth Member of Reading-Area Bank Fraud Ring ChargedRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a Reading, Pennsylvania woman—the eighth member of a Reading-area bank fraud ring—has been charged with fraud.
A criminal information has been filed charging, Xavanna Olivera, 19, with one count of bank fraud. Olivera is alleged to be a member of a bank fraud ring operated by Steven Ronald Randall of Philadelphia.
Randall previously pleaded guilty on March 15, 2018, to one count of bank fraud and five counts of aggravated identity theft before U.S. District Judge Joseph F. Leeson, Jr. As part of his guilty plea, Randall admitted that he was a leader of a scheme to defraud First National Bank. Randall further admitted that as a result of this scheme, FNB sustained actual losses in excess of $76,519, with intended losses of in excess of $115,782. Randall also admitted that he transferred funds to inmates incarcerated within the Pennsylvania Department of Corrections via accounts opened by others involved in the scheme.
The information alleges that in return for a share of the fraud proceeds, Olivera opened an account at FNB that she knew would be used to deposit fraudulent checks and to withdraw cash before the bank discovered that the checks were fraudulent.
Olivera faces a maximum sentence of 30 years’ incarceration, a five-year period of supervised release, and a fine of $1,000,000.
Olivera is the eighth member charged as part of this group. In addition to Olivera and Randall, the other members of the bank fraud ring previously charged are Jaylen Jefferson, 19, of Reading, Dawson Thomas, 19, of Mohnton, Rebecca Ilie, 25, of Reading, Linda Pacheco, 40, of Reading, Angel Ocasio, Jr., 20, of Reading, and Jair Peralta, 19, of Kenhorst.
The case was investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Cumru Township Police Department and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Detroit Man Sentenced to Twenty Years in Prison for Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who led a multi-year conspiracy to distribute heroin in the Huntington area was sentenced today to 20 years in federal prison, announced United States Attorney Mike Stuart. Charles Duncan Pippins, 49, was previously convicted following a jury trial in January 2018 of conspiracy to distribute 100 grams or more of heroin. Pippins also pled guilty to the other indicted charges – one count of distributing heroin and one count of possessing heroin with intent to distribute. Stuart commended the investigation conducted by the Cabell County Sheriff’s Department.
“This sentence should put other Detroit drug dealers on notice,” said United States Attorney Mike Stuart. “If you come into our communities selling dangerous drugs like heroin and fentanyl, we will lock you up for a very long time.”
During the trial, witnesses for the United States testified that from the summer of 2013 to September 2016, Pippins conspired with others to distribute over 100 grams of heroin in the Huntington area. The evidence showed that during the course of the conspiracy, Pippins recruited multiple co-conspirators who transported heroin on his behalf from his residence in Detroit to Huntington. Witnesses testified that Pippins used the same individuals to distribute heroin, and to rent hotel rooms in their names, which he used for selling heroin. The evidence further showed that Pippins would front heroin to individuals to sell, and that they would bring the cash proceeds back to him at hotels in Huntington or at his residence in Detroit.
Pippins also pleaded guilty to the other indicted charges, admitting that on September 12, 2016, deputies with the Cabell County Sheriff’s Department used a confidential informant to make a controlled purchase of heroin from Pippins. The informant traveled to the Days Inn Hotel located on U.S. Route 60 in Huntington, where Pippins distributed heroin to the informant. Deputies executed a search warrant on his room, and as agents entered, Pippins flushed heroin down the toilet. During the search of the room, deputies seized approximately six grams of heroin that Pippins admitted he intended to sell. An analyst with the West Virginia State Police Forensic Laboratory confirmed that the heroin was mixed with fentanyl, a powerful opiate painkiller.
At today’s sentencing hearing, the Court found that Pippins was responsible for the distribution of at least 3 kilograms of heroin during the conspiracy. The Court also imposed an increased sentence based on Pippins’ role as an organizer and leader of the conspiracy.
Assistant United States Attorneys Joseph F. Adams and Matt Davis handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case was part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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