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Monday 30 April 2018
Upshur County woman admits to role in a stolen firearms conspiracy and sentencedRead the Press Release
ELKINS, WEST VIRGINIA – Kimberly A. Warner, of Buckhannon, West Virginia, has admitted to her role in a stolen firearms and methamphetamine operation and was sentenced today to five years probation for her participation, United States Attorney Bill Powell announced.
Warner, also known as “Kimmie,” age 27, pled guilty to one count of “Conspiracy to Possess Stolen Firearms.” Warner admitted to being a part of a conspiracy to steal approximately 120 firearms from a cabin in Upshur County, and barter and sell those firearms for methamphetamine and money from October 2016 to September 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
U.S. District Judge John Preston Bailey presided.
United States Attorney Announces the Hiring of New Assistant United States AttorneyRead the Press Release
U.S. Attorney Trent Shores announced today the appointment of Richard M. Cella as an Assistant United States Attorney in the Criminal Division of the United States Attorney’s Office for the Northern District of Oklahoma. As a Criminal Division AUSA, Mr. Cella will represent the United States of America in the prosecution of criminal cases. He is scheduled to be sworn in today at 3:00 p.m. at the United States District Courthouse by Chief United States District Court Judge Gregory K. Frizzell.
Mr. Cella joins the U.S. Attorney’s Office from the international law firm of Akin Gump Strauss Hauer & Feld LLP, where he was counsel in the firm’s litigation practice. Previously, he also served as a prosecutor with the Dallas County District Attorney’s Office through the D.A.’s Lawyer on Loan program. Mr. Cella received his undergraduate degree from Georgetown University magna cum laude and his J.D. with honors from the University of Texas School of Law.
“I am proud that Rick has joined our team here in the Northern District of Oklahoma.” said U.S. Attorney Shores. “He possesses the talent, passion, and know-how to make a positive impact in our office and for our community.”
Two Texas Men Sentenced to 20 and 15 Years in Prison for Hate Crime Assault Based on Victim’s Sexual OrientationRead the Press Release
Anthony Shelton, 20, and Cameron Ajiduah, 19, were sentenced today to 20 and 15 years in prison, respectively, for assaulting a man because of the victim’s sexual orientation, in violation of 18 U.S.C. § 249, announced the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Dallas Division.
According to the plea agreements, Shelton and Ajiduah both admitted that they and another defendant, Nigel Garrett, used Grindr, a social media dating platform for gay men, to arrange to meet the victim at his home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted him, and made derogatory statements about the victim’s sexual orientation. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously had returned an eighteen-count superseding indictment that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged Shelton, Ajiduah, along with other defendants, Nigel Garrett and Chancler Encalade, with conspiring to cause bodily injury because of their victims’ sexual orientation during home invasions in Plano, Frisco, and Aubrey, Texas, from Jan. 17 to Feb. 7, 2017. All four defendants subsequently pleaded guilty to hate crime charges from this indictment, and admitted that they targeted victims because of their sexual orientation. Earlier this year, Garrett was sentenced to 15 years in prison, and Encalade was recently sentenced to 10 years in prison.
“The Department of Justice will not tolerate any act of violence targeting individuals based on their sexual orientation, gender identity, race, color, religion, disability, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department will continue to investigate and prosecute hate crimes cases.”
“This case highlights the danger of the internet and specifically, online apps,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “In this case, the defendants misused the internet for sinister purposes in order to target an innocent man based on his sexual orientation, causing him bodily harm and damage to his property.”
The investigation was conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, and the Frisco Police Department. The case was prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Two Mexican Nationals Sentenced for Conspiring to Distribute Methamphetamine in the Metro EastRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Christian Renteria-Espinoza, age 32, and Raul Salazar-Ortega, age 35, both Mexican citizens, were sentenced on Friday, April 27, 2018, for Conspiracy to Distribute Methamphetamine. Renteria-Espinoza was sentenced to 90 months imprisonment, and Salazar-Ortega to 78 months.
Both men admitted that they had been active members of an organization which shipped large quantities of "ICE" (99% pure meth) from San Diego, California, to the Metro East region in 2016. Drug Enforcement Administration agents seized 15 pounds of ICE in San Diego from Salazar at the time of his arrest.
The investigation which resulted in the arrest and conviction of the two men was conducted by the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Three Waterloo Men Convicted of Drug Trafficking OffensesRead the Press Release
Three Waterloo men who were distributing cocaine and crack cocaine were convicted by a jury on April 27, 2018, after a five-day trial in federal court in Cedar Rapids.
Alston Campbell, Sr., age 64, and his two sons, Alston Campbell, Jr., age 34, and William Campbell, age 43, all from Waterloo, Iowa, were convicted of conspiracy to distribute cocaine and crack cocaine. Alston Campbell, Sr. was also convicted of distributing crack cocaine. Alston Campbell, Jr. was also convicted of one count possession of cocaine with the intent to distribute. William Campbell was also convicted of one count of distributing crack cocaine and one count of distributing cocaine. The verdicts were returned following about six hours of jury deliberations.
The evidence at trial showed that the father and sons were working together with others to distribute cocaine and crack cocaine in the Waterloo area. Evidence showed that both the DEA and FBI did multiple wiretaps on phones being used to communicate about the drug trafficking. From these wiretaps, law enforcement determined that the Campbells and others were bringing pounds of cocaine into Iowa from out of state and then selling the cocaine as both powder and crack cocaine in Waterloo.
Sentencings before United States District Court Judge Linda R. Reade will be set after a presentence reports are prepared. Alston Campbell, Sr. was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Alston Campbell, Jr. and William Campbell were previously detained and remain in the custody of the United States Marshal. Alston Campbell, Sr. and William Campbell face a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and 10 years of supervised release following any imprisonment. Alston Campbell, Jr. faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Emily K. Nydle and Rich Murphy and was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2045.
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Two Texas Men Sentenced to 20 and 15 Years in Prison for Hate Crime Assault Based on Victim’s Sexual OrientationRead the Press Release
WASHINGTON — Anthony Shelton, 20, and Cameron Ajiduah, 19, were sentenced today to 20 and 15 years in prison, respectively, for assaulting a man because of the victim’s sexual orientation, in violation of 18 U.S.C. § 249, announced the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Dallas Division.
According to the plea agreements, Shelton and Ajiduah both admitted that they and another defendant, Nigel Garrett, used Grindr, a social media dating platform for gay men, to arrange to meet the victim at his home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted him, and made derogatory statements about the victim’s sexual orientation. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously had returned an eighteen-count superseding indictment that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged Shelton, Ajiduah, along with other defendants, Nigel Garrett and Chancler Encalade, with conspiring to cause bodily injury because of their victims’ sexual orientation during home invasions in Plano, Frisco, and Aubrey, Texas, from Jan. 17 to Feb. 7, 2017. All four defendants subsequently pleaded guilty to hate crime charges from this indictment, and admitted that they targeted victims because of their sexual orientation. Earlier this year, Garrett was sentenced to 15 years in prison, and Encalade was recently sentenced to 10 years in prison.
“The Department of Justice will not tolerate any act of violence targeting individuals based on their sexual orientation, gender identity, race, color, religion, disability, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department will continue to investigate and prosecute hate crimes cases.”
“This case highlights the danger of the internet and specifically, online apps,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “In this case, the defendants misused the internet for sinister purposes in order to target an innocent man based on his sexual orientation, causing him bodily harm and damage to his property.”
The investigation was conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, and the Frisco Police Department. The case was prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
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Sulphur man pleads guilty to storing child pornography onlineRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Sulphur man pleaded guilty last week to storing child pornography online.
Cameron Deshown Fairley, 27, of Sulphur, Louisiana, pleaded guilty Wednesday before U.S. Magistrate Judge Kathleen Kay to one count of possession of child pornography. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Fairley maintained an online data storage account from September 2016 to February 2017 where he possessed images and videos of child pornography. He used the account to access and view child pornography. Some of the images involved children under the age of 12.
Fairley faces up to 20 years in prison, five years to life of supervised release registration as a sex offender and a $250,000 fine. The court set the sentencing date for July 26, 2018.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Springfield Doctor Convicted by Jury of Illegally Sharing Patient Medical FilesRead the Press Release
BOSTON – A Springfield gynecologist was convicted today in connection with allowing a pharmaceutical sales representative to access patient records and lying to federal investigators.
Rita Luthra, M.D., 67, of Longmeadow, was convicted by a federal jury of one count of violation of the Health Information Portability and Accountability Act and one count of obstruction of a criminal health care investigation. U.S. District Court Judge Mark G. Mastroianni has not yet scheduled sentencing.
From January 2011 through November 2011, Luthra allowed a pharmaceutical company sales representative from Warner Chilcott to access protected health information in her patients’ medical files. She later provided false information to federal agents when interviewed about her relationship with Warner Chilcott.
The charge of violation of the Health Information Portability and Accountability Act provides for a sentence of no greater than one year in prison and/or a fine of $50,000 and one year of supervised release. The charge of obstructing a criminal health care investigation provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, made the announcement today. Assistant United States Attorneys Miranda Hooker and Young Paik of Lelling’s Criminal Division are prosecuting the case.
South Park Man Sentenced for Distributing Fentanyl that Caused his Friend’s DeathRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 5 years’ probation, the first year of which will require him to spend every weekend in jail, on his conviction of violating the federal drug laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Jacob Palaski, age 28, of Pittsburgh, PA.
According to information presented to the court, on July 9, 2016, Palaski distributed 10 stamp bags containing fentanyl to his friend, Jesse Iwanonkiw. The use of that fentanyl resulted in the overdose death of Mr. Iwanonkiw the following day.
Prior to imposing sentence, Judge Conti acknowledged that the amount of drugs involved in Palaski’s crime was not large, but that when fentanyl is involved "one touch can kill." "Nothing can compensate [the Iwanonkiw family] for the loss of Jesse," Judge Conti stated, and "they will suffer the rest of their lives." As part of his sentence, Palaski was ordered to pay $16,965 in restitution to the Iwanonkiw family for funeral and burial expenses.
Judge Conti also rejected Palaski’s counsel’s request for no incarceration, stressing that a death resulted from Palaski’s actions, and that the crime required "serious consequences." Accordingly, Judge Conti lengthened the probationary sentence from 3 years to 5 years, and imposed intermittent confinement: for the first year of his probation, Palaski must report to jail every Friday evening, and stay in jail until Sunday evening. During the week, Palaski is required to maintain full-time employment, and must fulfill his restitution obligations.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
United States Attorney Brady commended the Peters Township Police Department and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Jacob Palaski.
Six Foreign Nationals Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – Six individuals have been arrested and charged in federal court in Boston with illegally reentering the United States after being deported.
According to six separate indictments unsealed today, the following individuals were each charged with one count of unlawful reentry of a deported alien:
Marco Lopez-Chavez, 24, a Guatemalan national, was encountered by law enforcement in Lynn on Sept. 2, 2017, and determined to be illegally present in the United States. Lopez-Chavez was previously deported on April 28, 2016.
Bulmaro Enriquez, 32, a Mexican national, was encountered by law enforcement in Framingham on Nov. 23, 2017, and determined to be illegally present in the United States. Enriquez was previously deported in March 2006.
Milton Mejia-Padilla, 36, a Honduran national, was encountered by law enforcement in Chelsea on Jan. 7, 2018, and determined to be illegally present in the United States. Mejia-Padilla was previously deported on Aug. 16, 2010.
Leandro Guimaraes, 38, a Brazilian national, was encountered by law enforcement in Framingham in July 2015, and determined to be illegally present in the United States. Guimaraes was previously deported on Dec. 28, 2003.
Virgilio Pedro Vicente-Lopez, 39, a Guatemalan national, was encountered by law enforcement in Salem on Aug. 13, 2017, and determined to be illegally present in the United States. Vicente-Lopez was previously deported on Feb. 12, 2009.
Nivaldo Gomes, 57, a Brazilian national, was encountered by law enforcement in March 2018, and determined to be illegally present in the United States. Gomes was previously deported on Nov. 14, 2012.
The charges of illegal reentry provide for sentences of no greater than 20 years in prison, up to three years of supervised release, a fine of $250,000, and each of the defendants will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorneys Kenneth G. Shine and David G. Tobin of Lelling’s Major Crimes Unit are prosecuting the cases.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Scarborough Woman Pleads Guilty to Health Care and Social Security FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Carrie Caporino, 46, of Scarborough, Maine, pleaded guilty today to two counts of embezzlement from health care providers and one count of social security number fraud.
According to court records, between 2014 and 2016, the defendant embezzled approximately $295,000 from a dental practice by making personal charges on office credit cards, using office funds to pay a personal credit card and her PayPal account, and by writing office checks to pay for personal expenses, including her rent.
In 2016 and 2017, the defendant worked for a Falmouth physician and embezzled approximately $253,000 by mobile depositing numerous checks made payable to her employer from patients and insurance into her personal bank accounts, and by writing office checks to herself that were not authorized by her employer.
The defendant also used a social security number that was not assigned to her on an application for health insurance when she worked for the dental practice.
The defendant faces up to ten years in jail on the embezzlement counts and up to five years on the social security count. The maximum fine for each count is $250,000.
She will be sentenced after the completion of a presentence report by the U.S. Probation Office.
The FBI and the U.S. Social Security Administration, Office of Inspector General investigated this case.
Reno Lawyer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
RENO, Nev. – A Reno, Nevada, attorney was sentenced today to 25 months in prison for filing false federal income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman, U.S. Attorney Dayle Elieson for the District of Nevada, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.
Delmar Hardy was convicted, following a jury trial in September 2017, of filing false individual income tax returns for the years 2008, 2009 and 2010.
According to documents and evidence presented to the court, Hardy falsified his 2008 through 2010 returns by not reporting more than $400,000 in cash income his law practice received. Hardy’s practice of not reporting cash dated back to at least 1999, which resulted in a total tax loss of more than $250,000.
In addition to the term of imprisonment, U.S. District Court Judge Miranda M. Du ordered Hardy to serve one year of supervised release and to pay a fine in the amount of $10,000.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Elieson, and SAC Sullivan thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney James E. Keller and Tax Division Trial Attorney Lee F. Langston, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Puerto Rico Supreme Court Justice Addresses Latin American Judges at Department of Justice’s Judicial Studies InstituteRead the Press Release
Today, at the Supreme Court of Puerto Rico, Justice Edgardo Rivera García gave the keynote address to 29 judges from Costa Rica, the Dominican Republic, Guatemala, Haiti, Honduras, Mexico, Panama and Peru in San Juan, Puerto Rico as part of the Judicial Studies Institute (JSI) training program, a collaborative effort between the Department of Justice and Department of State to build the capacity of the judiciaries of the Western Hemisphere.
As a frequent contributor to the JSI program, Justice Rivera García stressed the importance of the judges’ contribution to rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice.
With the support of U.S. Supreme Court Justice Sonia Sotomayor, and in partnership with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Department of Justice’s Office of Prosecutorial Development Assistance and Training (OPDAT) launched JSI in 2012 as a response to the wave of justice sector reforms in Latin America that saw many countries transition to an adversarial system.
Through instruction conducted in Spanish, practical exercises, and observations of courtroom proceedings, the JSI program provides judges with an opportunity to enhance their understanding of the fundamental principles, benefits, and challenges of the adversarial system. This capacity building is critical to the region as the judge’s role in the adversarial system is different from that in the inquisitorial system. In the inquisitorial system, the judge is actively involved in investigating the facts of the case, whereas in the adversarial system, the role of the judge is primarily that of an impartial referee between the prosecution and the defense.
Throughout 2018, judges from 10 Latin American countries will participate in JSI courses covering topics such as the development of rules of evidence, proportionality in sentencing, and opinion writing. While each country’s transition to the adversarial system has been unique, the judges who have participated in the JSI program have displayed the same dedication to improving and strengthening the transparency and efficiency of their respective criminal justice systems.
“The Judicial Studies Institute’s work with Latin American judges as their justice systems transition to adversarial systems is pivotal to ensure the fair and effective administration of justice throughout the hemisphere, which in turn promotes security throughout the region,” said Faye S. Ehrenstamm, Director of OPDAT. “This would not be possible without both the deep commitment of the judiciaries from participating countries and the tremendous contributions by the U.S. federal and state judiciaries. OPDAT is proud to be associated with JSI and its many contributions to the region.”
Since 2012, JSI, with its partners at the University of Puerto Rico and Inter-American University law schools, has hosted over 700 Latin American judges from 12 countries. The program continues to expand with the introduction of a mentoring component for JSI alumni in 2017, and new course offerings on special topics including digital and electronic evidence, opinion writing, and asset forfeiture added to the curriculum each year.
Providence Man Sentenced for Dealing Kilo of HeroinRead the Press Release
BOSTON – A Providence, R.I., man was sentenced today in federal court in Boston for distributing a kilogram of heroin to an undercover agent.
Dennys Villalona, a/k/a Xavier Martinez-Gonzalez, 30, was sentenced by United States District Court Judge Douglas P. Woodlock to 66 months in prison and eight years of supervised release. In September 2017, Villalona pleaded guilty to one count of possession with intent to distribute and distribution of heroin and one count of possession with intent to distribute and distribution of more than 100 grams of heroin.
In November 2016, a cooperating source introduced an undercover officer to Villalona for the purpose of supplying heroin to the undercover officer. On Nov. 17, 2016, Villalona and the undercover officer met in a restaurant parking lot in Foxboro where Villalona agreed to sell the undercover officer one kilogram of heroin for $55,000. Villalona stated that if the undercover officer kept coming back and business was good, the price would drop to $50,000 or even less per kilogram. Two days later, Villalona and the undercover officer met again, and Villalona supplied the undercover officer with a nearly 10-gram sample of heroin. On Nov. 22, 2016, Villalona and the undercover officer met at a restaurant in Wrentham, where Villalona delivered a package containing 992 grams of heroin to the undercover officer. All three meetings were recorded.
United States Attorney Andrew E. Lelling and Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Assistant U.S. Attorney Linda Ricci, Chief of Lelling’s Narcotics and Money Laundering Unit, prosecuted the case.
Pollock prisoner from Opelousas sentenced to 12 months in prison for possessing an improvised knifeRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Pollock prisoner from Opelousas was sentenced last week to 12 months and one day in prison for possessing an improvised knife.
Torrey Griffin, 27, of Opelousas, Louisiana, was sentenced Friday by U.S. District Judge Dee D. Drell on one count of possessing contraband in a prison. He was also sentenced to one year of supervised release. According to the January 19, 2018 guilty plea, Griffin was searched at the U.S. Penitentiary in Pollock, Louisiana, on July 30, 2017. A prison guard discovered that Griffin could not clear the metal detector, and during a pat down, the guard removed a knife from Griffin’s pants. The knife was approximately 6 and a half inches long and made of metal sharpened on one end.
The FBI and the U.S. Bureau of Prisons-Special Investigative Services conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
Panasonic Avionics Corporation Agrees to Pay $137 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
Panasonic Avionics Corporation (PAC), a subsidiary of multinational electronics company Panasonic Corporation (Panasonic), has agreed to pay a $137.4 million criminal penalty to resolve charges arising out of a scheme to retain consultants for improper purposes and conceal payments to third-party sales agents, in violation of the accounting provisions of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Acting Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division made the announcement.
“When Panasonic Avionics Corporation caused its publicly-traded parent company to falsify its books and records, it distorted the information available to legitimate investors,” said Acting Assistant Attorney General Cronan. “The Criminal Division will take all appropriate action to ensure that the investing public is able to trust the accuracy of the financial statements of companies that avail themselves of American securities exchanges.”
“Enforcement of the Foreign Corrupt Practices Act is critical in maintaining a fair and competitive international market to which all businesses are entitled,” said Acting Assistant Director Hacker. “Along with our federal partners and the Department of Justice, the FBI will continue to aggressively investigate violations of the Foreign Corrupt Practices Act.”
PAC, based in Lake Forest, California, designs and distributes in-flight entertainment systems and global communications services for airlines and airplane manufacturers. According to admissions and court documents, PAC knowingly and willfully caused Panasonic to falsify its books and records with respect to PAC’s retention of consultants for improper purposes. The consultants, which did little or no actual consulting work for PAC, were retained through a third-party service provider and were paid for out of a budget over which a senior PAC executive had complete control and discretion, without meaningful oversight by anyone at PAC or Panasonic. One such individual was offered the consulting position by PAC at the time that he was employed by a state-owned airline and involved in negotiating a lucrative contract amendment on behalf of the airline with PAC. According to court documents, that consultant was subsequently paid $875,000 by PAC over a six-year period and PAC earned over $92 million in profits from portions of the contract over which the consultant had some involvement or influence while employed with the airline. PAC admitted that it mischaracterized these payments as “consultant payments” on its general ledger, which it knew caused Panasonic to incorrectly designate those payments as “selling and general administrative expenses” on Panasonic’s books, records, and accounts.
PAC also admitted that employees in its Asia region concealed PAC’s use of certain sales agents, which did not pass the Company’s internal diligence requirements. According to admissions and court documents, PAC formally terminated its relationship with these sales agents, as required by its compliance policies, but PAC employees then secretly continued to use the agents by having them rehired as sub-agents of another company, which had passed PAC’s due diligence checks. Through this process, PAC employees hid more than $7 million in payments to at least 13 sub-agents.
By mischaracterizing the payments made to consultants and sales agents and providing false or incomplete representations and Sarbanes-Oxley subcertifications to Panasonic about PAC’s financials and financial controls, PAC caused Panasonic to falsify its books, records, and accounts in violation of the FCPA.
PAC entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed today in the U.S. District Court for the District of Columbia, charging the company with one count of knowingly and willfully causing the falsification of the books, records, and accounts of its parent company Panasonic. As part of the DPA, PAC will pay a total criminal penalty of $137,403,812. PAC also agreed to continue to cooperate with the department’s investigation, enhance its compliance program, implement rigorous internal controls and retain an independent corporate compliance monitor for at least two years.
In a related proceeding, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against Panasonic, whereby the company agreed to pay approximately $143 million in disgorgement to the SEC, including prejudgment interest. Thus, the combined total amount of U.S. criminal and regulatory penalties to be paid by Panasonic and PAC is over $280 million.
The Criminal Division’s Fraud Section reached this resolution based on a number of factors, including the fact that PAC did not timely voluntarily self-disclose the conduct, but did cooperate with the department’s investigation after receiving a request for documents from the SEC. PAC received a 20 percent discount off the low end of the U.S. Sentencing Guidelines fine range because of its cooperation and remediation, which, although untimely in certain respects, did include causing several senior executives who were either involved in or aware of the misconduct to be separated from PAC or Panasonic. Because many of the company’s compliance enhancements were more recent, and therefore have not been tested, the DPA imposes an independent compliance monitor for a term of two years, followed by an additional year of self-reporting to the department.
The case is being investigated by the FBI’s International Corruption Squad in Los Angeles. Fraud Section Trial Attorneys Dennis R. Kihm and Jeremy R. Sanders prosecuted the case. The Fraud Section appreciates the significant cooperation and assistance provided by the SEC in this matter. The Criminal Division’s Office of International Affairs also provided assistance during the investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Palm Bay Man Sentenced for Defrauding the Department of Veterans AffairsRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced Armando Lafuente (56, Palm Bay) to 12 months and 1 day in federal prison for theft of government money. As part of his sentence, the court also entered a money judgment for $157,471.57, the proceeds of the offense. Lafuente pleaded guilty on November 27, 2017.
According to court documents, between December 2009 and January 2017, Lafuente obtained various disability benefits from the Department of Veterans Affairs (VA) by claiming that he had completely lost the use of both of his feet due to a prior, service-connected injury. An investigation conducted by the VA Office of Inspector General confirmed that Lafuente had not completely lost the use of his feet; on the contrary, he could perform a wide range of normal activities—including walking, driving, climbing ladders, and mowing his lawn. The disability benefits Lafuente had received included special monthly compensation payments, transportation services, and an automobile grant.
This case was investigated by the Department of Veterans Affairs, Office of Inspector General. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Panasonic Avionics Corporation Agrees to Pay $137 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
WASHINGTON – Panasonic Avionics Corporation (PAC), a subsidiary of multinational electronics company Panasonic Corporation (Panasonic), has agreed to pay a $137.4 million criminal penalty to resolve charges arising out of a scheme to retain consultants for improper purposes and conceal payments to third-party sales agents, in violation of the accounting provisions of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Acting Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division made the announcement.
“When Panasonic Avionics Corporation caused its publicly-traded parent company to falsify its books and records, it distorted the information available to legitimate investors,” said Acting Assistant Attorney General Cronan. “The Criminal Division will take all appropriate action to ensure that the investing public is able to trust the accuracy of the financial statements of companies that avail themselves of American securities exchanges.”
PAC, based in Lake Forest, California, designs and distributes in-flight entertainment systems and global communications services for airlines and airplane manufacturers. According to admissions and court documents, PAC knowingly and willfully caused Panasonic to falsify its books and records with respect to PAC’s retention of consultants for improper purposes. The consultants, which did little or no actual consulting work for PAC, were retained through a third-party service provider and were paid for out of a budget over which a senior PAC executive had complete control and discretion, without meaningful oversight by anyone at PAC or Panasonic. One such individual was offered the consulting position by PAC at the time that he was employed by a state-owned airline and involved in negotiating a lucrative contract amendment on behalf of the airline with PAC. According to court documents, that consultant was subsequently paid $875,000 by PAC over a six-year period and PAC earned over $92 million in profits from portions of the contract over which the consultant had some involvement or influence while employed with the airline. PAC admitted that it mischaracterized these payments as “consultant payments” on its general ledger, which it knew caused Panasonic to incorrectly designate those payments as “selling and general administrative expenses” on Panasonic’s books, records, and accounts.
PAC also admitted that employees in its Asia region concealed PAC’s use of certain sales agents, which did not pass the Company’s internal diligence requirements. According to admissions and court documents, PAC formally terminated its relationship with these sales agents, as required by its compliance policies, but PAC employees then secretly continued to use the agents by having them rehired as sub-agents of another company, which had passed PAC’s due diligence checks. Through this process, PAC employees hid more than $7 million in payments to at least 13 sub-agents.
By mischaracterizing the payments made to consultants and sales agents and providing false or incomplete representations and Sarbanes-Oxley subcertifications to Panasonic about PAC’s financials and financial controls, PAC caused Panasonic to falsify its books, records, and accounts in violation of the FCPA.
PAC entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed today in the U.S. District Court for the District of Columbia, charging the company with one count of knowingly and willfully causing the falsification of the books, records, and accounts of its parent company Panasonic. As part of the DPA, PAC will pay a total criminal penalty of $137,403,812. PAC also agreed to continue to cooperate with the department’s investigation, enhance its compliance program, implement rigorous internal controls and retain an independent corporate compliance monitor for at least two years.
In a related proceeding, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against Panasonic, whereby the company agreed to pay approximately $143 million in disgorgement to the SEC, including prejudgment interest. Thus, the combined total amount of U.S. criminal and regulatory penalties to be paid by Panasonic and PAC is over $280 million.
The Criminal Division’s Fraud Section reached this resolution based on a number of factors, including the fact that PAC did not timely voluntarily self-disclose the conduct, but did cooperate with the department’s investigation after receiving a request for documents from the SEC. PAC received a 20 percent discount off the low end of the U.S. Sentencing Guidelines fine range because of its cooperation and remediation, which, although untimely in certain respects, did include causing several senior executives who were either involved in or aware of the misconduct to be separated from PAC or Panasonic. Because many of the company’s compliance enhancements were more recent, and therefore have not been tested, the DPA imposes an independent compliance monitor for a term of two years, followed by an additional year of self-reporting to the department.
The case is being investigated by the FBI’s International Corruption Squad in Los Angeles. Fraud Section Trial Attorneys Dennis R. Kihm and Jeremy R. Sanders prosecuted the case. The Fraud Section appreciates the significant cooperation and assistance provided by the SEC in this matter. The Criminal Division’s Office of International Affairs also provided assistance during the investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Omaha Man Sentenced to 20 years for Selling Methamphetamine Out of His South Omaha Auto ShopRead the Press Release
United States Attorney Joseph P. Kelly announced that Baldemar Arambul, 43, of Omaha, Nebraska, was sentenced on April 30, 2018, to 20 years in prison by Chief United States District Judge Laurie Smith Camp. Arambul had previously been found guilty after a 3 day Omaha jury trial where numerous witnesses testified and the evidence revealed that Arambul had used his South Omaha Auto Shop to dispense hundreds of pounds of methamphetamine of over a three year period. After serving his sentence, Arambul will be required to serve a Term of Supervised Release of 5 years.
This case was the result of an investigation by the Homeland Security Investigations.
Olympian Village Alderman Indicted on Wire Fraud ChargesRead the Press Release
St. Louis, MO – Gary Keith Atchley, 53, of Jefferson County, Missouri, surrendered this morning in federal court to an Indictment charging him with five counts of wire fraud in connection with his scheme to defraud the citizens of Olympian Village.
The indictment alleges that, between March 2013 and December 2016, Atchley was an alderman for Olympian Village located in Jefferson County, Missouri. At no time was Atchley an authorized signatory on the Olympian Village account. He used the account to pay personal expenses, including making checks to cash and writing checks directly to himself. Approximately $58,000 was bought in personal merchandise using pre-authorized debit transactions and the $127,000 of checks he wrote to himself were not authorized by the Olympian Village government.
"This is a double blow for Olympian Village," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "The financial loss alone is devastating for a small community. The addition of public corruption causes an even deeper impact when people lose trust in their government."
If convicted, Atchley faces up to 20 years’ imprisonment, a fine of more than $250,000 or both on each count. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis division of the FBI and the Jefferson County Sheriff’s Department. Gwen Carroll is handling the case for the U.S. Attorney’s office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Ohio Man Pleads Guilty in Scheme to Pass Counterfeit $100 Bills at Western PA StoresRead the Press Release
PITTSBURGH – A resident of Columbus, Ohio, pleaded guilty in federal court to a charge of conspiracy, United States Attorney Scott W. Brady announced today.
Brian Maurice Carr, age 30, pleaded guilty to one count before Chief United States District Court Joy Flowers Conti.
In connection with the guilty plea, the court was advised that it was a part of the conspiracy that Carr 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 Carr and his co-conspirators passed, and attempted to pass, counterfeit $100 bills at various retail store locations in the Western Pennsylvania and received legitimate currency as change.
Chief Judge Conti scheduled sentencing for August 20, 2018 at 3:30 p.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting 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.
Norwalk Landscaper to Serve Federal Prison Time for Filing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CANDIDO VALADARES, also known as Candide Valadares, 57, of Norwalk, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to two months of imprisonment, followed by one year of supervised release, for filing false tax returns.
According to court documents and statements made in court, VALADARES operates two Norwalk-based landscaping businesses, Candide’s Landscaping and Water Gardens, LLC and Candide Contractor & Natural Pools, LLC. He also provides snow-removal services to his clients during winter months. An investigation revealed that VALADARES deposited receipts from his businesses into both his business and personal bank accounts. He also substantially underreported employee wages by paying certain employee wages out of his personal accounts.
VALADARES used a tax return preparer to prepare his yearly tax returns. The tax preparer took figures from certain profit-and-loss statements obtained from VALADARES or his bookkeeper to prepare the relevant federal tax returns. VALADARES knew that the profit-and-loss statements did not reflect all revenues deposited in VALADARES’ business and personal bank accounts, and substantially underreported payroll. As a result, VALADARES’ federal tax returns for 2009, 2010 and 2011 tax years underreported $488,182 in gross receipts, underreported his business payroll by approximately $350,000, and resulted in a loss of $165,763.52 to the U.S. Treasury.
VALADARES is required to pay $165,763.52 in restitution, and cooperate with the IRS to pay any additional civil penalties and interest that have accrued on his unpaid taxes.
On November 16, 2017, VALADARES pleaded guilty to one count of filing a false tax return.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
New Jersey Man Who Traveled Overseas to Join ISIS Sentenced to 10 Years in PrisonRead the Press Release
Nader Saadeh, 23, of Rutherford, New Jersey, was sentenced today to 10 years in prison, to be followed by a lifetime of supervised release, for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
The announcement was made by Assistant Attorney General for the National Security John C. Demers, U.S. Attorney Craig Carpenito for the District of New Jersey and Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark, New Jersey Division. Saadeh previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring with others to provide material support to ISIS. Judge Wigenton imposed the sentence today in Newark federal court.
“ISIS is a threat to the people of the United States, both here and abroad, and the National Security Division will aggressively investigate and prosecute all who seek aid it,” said Assistant Attorney General Demers. “I applaud the dedication of the agents at the FBI and the Newark Joint Terrorism Task Force and the prosecutors here at the Department of Justice, who together thwarted the defendant’s attempt to fight for ISIS against the U.S. and its allies.”
“Saadeh traveled overseas for the sole purpose of joining and fighting for ISIS, an international terrorist organization that has repeatedly taken and threatened to take the lives of our citizens and allies all over the world,” said U.S. Attorney Carpenito. “Thanks to the intervention of the FBI-Newark Joint Terrorism Task Force and federal prosecutors on this case, Saadeh’s criminal aspirations were never realized. Instead of joining ISIS’ ranks, he will spend the next several years in prison.”
“I want to commend the work of the FBI's Joint Terrorism Task Force investigators and prosecutors in the U.S. Attorney's office who worked countless hours throughout this investigation to protect the community in their execution of the FBI's Counterterrorism strategy to detect, penetrate and disrupt potential acts of terrorism in the United States and abroad,” said Special Agent in Charge Ehrie.
According to documents filed in this and related cases and statements made in court:
Saadeh admitted that prior to his arrest on Aug. 10, 2015, by the FBI-Newark Joint Terrorism Task Force (JTTF), he planned to travel overseas to join ISIS along with others. Saadeh discussed his plans to join ISIS with his brother, Alaa Saadeh, Samuel Rahamin Topaz, Munther Omar Saleh and Fareed Mumuni, and admitted that at various times each of them indicated that they wanted to join ISIS. Saadeh also admitted that he and these other men watched ISIS-related videos, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIS as enemies.
On May 5, 2015, Saadeh departed the United States with plans to travel overseas to join ISIS in furtherance of the conspiracy, according to his statements in court. Saadeh admitted that once he reached ISIS-controlled territory he intended to fight on behalf of ISIS. Saadeh further admitted that Saleh assisted him by giving him a contact who would facilitate his travel from Turkey to ISIS in Syria.
Saadeh admitted that prior to his departure from the United States, Saleh showed him technical drawings for making homemade bombs. Saadeh admitted that Saleh and Mumuni discussed plans to carry out an attack in ISIS’ name using homemade bombs at locations in New York City, including Times Square, the World Trade Center, and Vaughn College of Aeronautics and Technology, in Queens, New York.
Saadeh admitted knowing that ISIS was a designated terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes and executing individuals who did not obey ISIS’ commands.
Topaz and Alaa Saadeh have also pleaded guilty to conspiring to provide material support to ISIS. Alaa Saadeh was sentenced to 15 years in prison on May 10, 2016. Topaz is set to be sentenced on May 1. Saleh and Mumuni have both pleaded guilty to related charges brought by the U.S. Attorney’s Office for the Eastern District of New York. Saleh was sentenced to 18 years in prison on Feb. 6. Mumuni was sentenced to 17 years in prison on April 26.
Assistant Attorney General Demers and U.S. Attorney Carpenito credited the special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and the Newark Joint Terrorism Task Force with the successful investigation. The JTTF is comprised of agents and officers from the U.S. Department of Homeland Security’s Homeland Security Investigations, Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, New Jersey State Police, Paterson Police Department, and the NYPD, among other federal, state and local law enforcement agencies.
This case is being prosecuted by Assistant U.S. Attorneys Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance from Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.
Nevada Lawyer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Reno, Nevada attorney was sentenced today to 25 months in prison for filing false federal income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Dayle Elieson for the District of Nevada.
Delmar Hardy was convicted, following a jury trial in September 2017, of filing false individual income tax returns for the years 2008, 2009 and 2010.
According to documents and evidence presented to the court, Hardy falsified his 2008 through 2010 returns by not reporting more than $400,000 in cash income his law practice received. Hardy’s practice of not reporting cash dated back to at least 1999, which resulted in a total tax loss of more than $250,000.
In addition to the term of imprisonment, U.S. District Court Judge Miranda M. Du ordered Hardy to serve one year of supervised release and to pay a fine in the amount of $10,000.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney James E. Keller and Tax Division Trial Attorney Lee F. Langston, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Nassau County Repeat Offender Sentenced to 100 Months in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Vincent J. Jones, Jr. (47, Fernandina Beach) to eight years and four months in federal prison for distributing cocaine. He pleaded guilty on January 23, 2018.
According to court documents, Jones sold cocaine to a confidential informant on three separate occasions in October 2017. When law enforcement officers witnessed him driving and attempted to arrest him pursuant to a warrant, he refused to pull over. The officers witnessed him throw a bag of crack cocaine out of the window before he eventually stopped his car. At the time of this incident, Jones had 10 prior felony drug convictions.
This case was investigated by the Nassau County Sheriff’s Office and the FBI. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Nashville Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Ironelly Mora, 39, a Nashville resident and tax return preparer, pleaded guilty in U.S. District Court today, to one count of preparing a false tax return, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
According to court documents, Mora owned and operated Latinos Unidos tax preparation business located in Nashville, Tennessee. Mora admitted that from 2013 through 2017, she prepared and filed false tax returns for her clients to help grow her business. Mora inflated her customers’ returns by claiming false child tax credits, exemptions and false filing statuses. Mora admitted that she also filed her own false tax returns for tax years 2014 through 2016 by underreporting her income from Latinos Unidos. In total, Mora caused a tax loss of $379,540 to the Internal Revenue Service.
Mora will be sentenced on August 3, 2018, and faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution, and monetary penalties.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ryan R. Raybould is prosecuting the case on behalf of the United States.
Myrtle Beach Woman Pleads Guilty in Federal Court to Tax Fraud ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Stephanie M. Campellone, age 46, of Myrtle Beach, SC, pled guilty in federal court in Florence, to Filing a False Tax Return, a violation of Title 26, United States Code, Section 7206(1). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that Campellone owns and operates Mastercare Contracting, Inc., a lawn care/landscaping business in Myrtle Beach. During the years 2012, 2013 and 2014, Campellone diverted a large portion of Mastercare’s income into personal bank accounts and substantially underreported the business’s taxable gross receipts on tax returns. By understating the business’s gross income, Campellone also substantially underreported her income on her personal tax returns. Specifically, for the three years in question, Campellone understated over $1,460,000.00 in gross receipts. As a result of this conduct, Campellone owes over $447,000.00 of additional income taxes.
Ms. Drake stated the maximum penalty Campellone can receive is imprisonment for 3 years and a fine of $100,000.
The case was investigated by agents of the Internal Revenue Service. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Missouri Man Charged with Production and Possession of Child PornographyRead the Press Release
Joseph Michael Willard, 54, of Missouri, was indicted April 26 for the production and possession of child pornography, announced United States Attorney William M. McSwain. The indictment alleges that Willard produced and possessed images of minors – including one under age 12 – engaged in sexually explicit conduct.
“The young victims in cases like these are victimized over and over again because the horrific images stay in circulation forever,” U.S. Attorney McSwain said. “We are working diligently with our law enforcement partners to stop child exploitation, which is a national problem.”
If convicted the defendant faces a maximum possible sentence of lifetime incarceration, a mandatory minimum twenty-five years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $1,750,000 fine, a $35,700 in special assessments.
The case was investigated by the Bethlehem Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Milwaukee Man Sentenced to 107 Years in Prison for Five Armed RobberiesRead the Press Release
United States Attorney Matthew D. Krueger has announced that last Friday, United States District Judge J.P. Stadtmueller sentenced Otis Hunter to 107 years in prison after a jury found Mr. Hunter guilty of conspiracy to commit robberies, three business robberies, two carjackings, and five counts of brandishing a firearm during a crime of violence. Judge Stadtmueller sentenced Mr. Hunter’s co-defendant, Deshawn Evans, to 32 years in prison after a jury found Mr. Evans guilty of conspiracy, a business robbery, a carjacking, and two counts of brandishing a firearm during a crime of violence. Each defendant was sentenced to the mandatory minimum sentence imposed by Congress for the use of firearms during crimes of violence.
The evidence presented at trial showed that between November 17, 2016, and December 4, 2016, Mr. Hunter and Mr. Evans were part of a robbery crew that committed three business robberies and two carjackings, all at gunpoint. Most of the crimes occurred on the south side of Milwaukee. The evidence established that the defendants brandished handguns, robbed employees and customers, and, on two occasions, pistol-whipped their victims.
U.S. Attorney Krueger stated, “The lengthy sentences imposed in this case are sobering. Mr. Hunter and Mr. Evans embarked on a cruel robbery spree and terrorized numerous innocent victims. As a result, they will spend decades in federal prison. Men and women who are inclined to use guns to commit robberies and carjackings need to know they face stiff mandatory minimum sentences. Together with federal, state, and local partners, we are committed to prosecuting gun violence and working to make our neighborhoods safer.”
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorneys Margaret B. Honrath and Rebecca L. Taibleson.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Milwaukee Man Indicted for Sex Trafficking OffensesRead the Press Release
United States Attorney Matthew D. Krueger has announced that Dameion D. Wyatt (age 40) of Milwaukee, Wisconsin, appeared in federal court on Friday April 27th for an arraignment on multiple offenses related to sex trafficking.
U.S. Attorney Krueger explained that last week, a grand jury returned a ten-count indictment against Wyatt. Counts One, Two, Six, Seven, and Nine allege that at times from September 2011 to July 2014, Wyatt used force, fraud, and coercion to cause five different adult victims to engage in commercial sex acts, and attempted to do so, in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(1) and 1594(a). Counts Three, Eight and Ten relatedly allege that Wyatt knowingly transported these women across state lines with the intent that they engage in prostitution, in violation of Title 18, United States Code, Section 2421(a).
Counts Four and Five relate to a minor victim. Count Four alleges that Wyatt trafficked the minor, who was 14 years old at the time, for commercial sex in July 2012 in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(2), 1594(a), and 2. Count Five alleges that during the same time period, Wyatt transported the minor across state lines with the intent that the minor engage in prostitution and unlawful sexual activity in violation of Title 18, United States Code, Section 2423(a).
Counts Three, Eight, and Ten each carry a maximum penalty of 10 years in prison, while the other counts each carry a maximum penalty of life in prison. Both of the counts involving the minor victim also carry 10-year minimum mandatory prison sentences, and the five counts of sex trafficking by force, fraud or coercion each carry 15-year mandatory minimum prison sentences. All of the charges in Wyatt’s indictment carry additional possible penalties of up to a life term of supervised release following any term of imprisonment, and up to $250,000 fine.
U.S. Attorney Krueger commented, “Sex trafficking inflicts horrific trauma upon its victims, and these charges are especially heart-breaking because they allege the exploitation of a child. This Office is committed to prosecuting sex trafficking. We commend the victims in this case for speaking out and helping to ensure that additional women do not become victims of trafficking. We also commend the Wisconsin Department of Justice’s excellent investigative work.”
“For more than a year, DOJ led a complex sex trafficking investigation of the Wyatts that spanned multiple states,” said Wisconsin Attorney General Brad Schimel. “The indictment announced today, which is the result of great investigative work, finally brings this case closer to a conclusion and is the first steps in delivering justice to the victims.”
This case was investigated by the Wisconsin Department of Justice’s Division of Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Laura S. Kwaterski and Erica J. Lounsberry.
The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Miami-Dade Juvenile Detention Officer Charged with Civil Rights Offenses for Role in Inmate’s Beating and DeathRead the Press Release
Acting Assistant Attorney General John Gore, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, today announced federal charges against juvenile detention officer Antwan Lenard Johnson arising from his role in the August 2015 beating and death of a 17-year-old juvenile inmate (E.R.) at the Miami-Dade Regional Juvenile Detention Center (JDC) in Miami, Florida.
“The Justice Department will continue to aggressively prosecute corrections officers who exploit their position of power and violate the civil rights of individuals in their custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
“The United States Constitution protects every person in this country, including those who are detained in juvenile detention facilities,” said U.S. Attorney Benjamin G. Greenberg. “It is an honor and privilege to work with the many outstanding agents and officers who are part of our law enforcement community. These brave individuals put their lives on the line every day to protect us all and make our communities safer. But we are committed to bringing to justice the small minority of law enforcement officials when they abuse their authority and violate the civil rights of another.”
“Violations of civil rights by government officials cannot be tolerated as it undermines the public’s trust,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “The FBI is committed to working with our partners to safeguard the civil rights of all.”
Johnson, 35, of Miami-Dade County, was charged with conspiracy to violate E.R.’s civil rights under color of law, which resulted in E.R.’s death, in violation of Title 18, United States Code, Section 241; and deprivation of E.R.’s civil rights, under color of law, which resulted in bodily injury and E.R.’s death, in violation of Title 18, United States Code, Section 242. If convicted, Johnson faces a maximum statutory sentence of life in prison for each charge.
E.R. was a 17-year-old juvenile who had been arrested and was subsequently taken to the JDC on Aug. 28, 2015. He was being detained pending further order of the State Court and had not been convicted of the crime for which he had been arrested.
The indictment alleges that Johnson operated a commonly utilized bounty system in order to help ensure obedience and officer respect at the JDC. Johnson encouraged and induced juvenile detainees, in exchange for rewards and privileges, to forcibly assault E.R. In exchange for attacking E.R., Johnson rewarded the juveniles with extra recreational time and snacks. As a result of being held at the JDC, witnessing events at the facility, and in some cases being actual victims of the bounties, the juveniles were aware of the bounty culture. They knew that they would not be punished or disciplined by Johnson, but in fact rewarded, if they followed his directives.
The indictment alleges that, on Aug. 30, 2015, Johnson worked in Module 9 at the JDC, during the 3:00 p.m. to 11:00 p.m. shift. Based on E.R.’s statements and behavior during dinner at the JDC cafeteria, Johnson communicated to juveniles that he wanted them to forcibly assault E.R. Various juveniles agreed, which caused E.R. to fear for his immediate safety and stand away from the other juveniles prior to, and while returning, from the JDC cafeteria to Module 9.
According to the indictment, Johnson directed juveniles to delay the attack on E.R. until they all returned to Module 9. Upon returning to Module 9 with the juveniles, Johnson promptly walked out of view of E.R. and the other juveniles. At the same time, a juvenile punched E.R. in the face as he attempted to sit down in a chair. Numerous other juveniles immediately joined the attack and punched and kicked E.R., continuing their assault, even when E.R. fell to the ground.
The indictment further alleges that after E.R. was escorted out of Module 9 to the JDC medical department, Johnson promptly released the juveniles in Module 9 from their cells and allowed them to watch television as a reward and privilege. Johnson also bumped fists with the juvenile who initiated the attack on E.R. Johnson later caused certain Module 9 juveniles to receive snacks as a reward and privilege for participating in the attack on E.R.
According to the indictment, E.R. was later transported from the JDC to Holtz Children’s Hospital in Miami, Florida. On Aug. 31, 2015, E.R. was pronounced dead due to bodily injuries suffered during the attack.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI Miami Area Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin and Trial Attorney Samantha Trepel of the Civil Rights Division.
Miami-Dade Juvenile Detention Officer Charged with Civil Rights Offenses for Role in Inmate’s Beating and DeathRead the Press Release
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John Gore, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, today announced federal charges against juvenile detention officer Antwan Lenard Johnson arising from his role in the August 2015 beating and death of a 17-year-old juvenile inmate (E.R.) at the Miami-Dade Regional Juvenile Detention Center (JDC) in Miami, Florida.
“The United States Constitution protects every person in this country, including those who are detained in juvenile detention facilities,” said U.S. Attorney Benjamin G. Greenberg. “It is an honor and privilege to work with the many outstanding agents and officers who are part of our law enforcement community. These brave individuals put their lives on the line every day to protect us all and make our communities safer. But we are committed to bringing to justice the small minority of law enforcement officials when they abuse their authority and violate the civil rights of another.”
“The Justice Department will continue to aggressively prosecute corrections officers who exploit their position of power and violate the civil rights of individuals in their custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
“Violations of civil rights by government officials cannot be tolerated as it undermines the public’s trust,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “The FBI is committed to working with our partners to safeguard the civil rights of all.”
Johnson, 35, of Miami-Dade County, was charged with conspiracy to violate E.R.’s civil rights under color of law, which resulted in E.R.’s death, in violation of Title 18, United States Code, Section 241; and deprivation of E.R.’s civil rights, under color of law, which resulted in bodily injury and E.R.’s death, in violation of Title 18, United States Code, Section 242. If convicted, Johnson faces a maximum statutory sentence of life in prison for each charge.
E.R. was a 17-year-old juvenile who had been arrested and was subsequently taken to the JDC on Aug. 28, 2015. He was being detained pending further order of the State Court and had not been convicted of the crime for which he had been arrested.
The indictment alleges that Johnson operated a commonly utilized bounty system in order to help ensure obedience and officer respect at the JDC. Johnson encouraged and induced juvenile detainees, in exchange for rewards and privileges, to forcibly assault E.R. In exchange for attacking E.R., Johnson rewarded the juveniles with extra recreational time and snacks. As a result of being held at the JDC, witnessing events at the facility, and in some cases being actual victims of the bounties, the juveniles were aware of the bounty culture. They knew that they would not be punished or disciplined by Johnson, but in fact rewarded, if they followed his directives.
The indictment alleges that, on Aug. 30, 2015, Johnson worked in Module 9 at the JDC, during the 3:00 p.m. to 11:00 p.m. shift. Based on E.R.’s statements and behavior during dinner at the JDC cafeteria, Johnson communicated to juveniles that he wanted them to forcibly assault E.R. Various juveniles agreed, which caused E.R. to fear for his immediate safety and stand away from the other juveniles prior to, and while returning, from the JDC cafeteria to Module 9.
According to the indictment, Johnson directed juveniles to delay the attack on E.R. until they all returned to Module 9. Upon returning to Module 9 with the juveniles, Johnson promptly walked out of view of E.R. and the other juveniles. At the same time, a juvenile punched E.R. in the face as he attempted to sit down in a chair. Numerous other juveniles immediately joined the attack and punched and kicked E.R., continuing their assault, even when E.R. fell to the ground.
The indictment further alleges that after E.R. was escorted out of Module 9 to the JDC medical department, Johnson promptly released the juveniles in Module 9 from their cells and allowed them to watch television as a reward and privilege. Johnson also bumped fists with the juvenile who initiated the attack on E.R. Johnson later caused certain Module 9 juveniles to receive snacks as a reward and privilege for participating in the attack on E.R.
According to the indictment, E.R. was later transported from the JDC to Holtz Children’s Hospital in Miami, Florida. On Aug. 31, 2015, E.R. was pronounced dead due to bodily injuries suffered during the attack.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI Miami Area Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin and Trial Attorney Samantha Trepel of the Civil Rights Division.
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.
Mexican National Pleads Guilty to Illegally Reentering the United StatesRead the Press Release
Defendant had four prior deportations from the United States
HUNTINGTON, W.Va. – Victor Santa Maria-Cleofas pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. He also faces removal proceedings at the conclusion of any sentence of incarceration. United States Attorney Mike Stuart praised the work of Immigration and Customs Enforcement (ICE).
“Another reason for the proposed wall. Maria-Cleofas has 4 previous deportations and keeps coming back,” said United States Attorney Mike Stuart. “He will soon face deportation a 5th time. Everyone hates line skippers. This is a nation that welcomes new immigrants but every immigrant must respect our country and follow our laws.”
Santa Maria-Cleofas , 47, of Mexico, faces up to 2 years of incarceration, a 250,000 dollar fine, supervised release for one year, and a special assessment when he is scheduled to be sentenced on May 29, 2018 by United States District Judge Robert C. Chambers.
On March 15, 2018, Santa Maria-Cleofas was arrested by ICE agents who observed defendant biking to a restaurant in Hurricane, West Virginia where he worked. ICE already had information that defendant was in the United States illegally, and were able to stop him as he rode by. After confirming his identity and with defendant admitting he was not in the United States legally, he was placed under arrest. ICE agents submitted Santa Maria-Cleofas’s fingerprints, forensically matching him to four prior deportations in 2001, 2004, 2008, and 2010. Santa Maria-Cleofas reentered the United States a total of five separate occasions without legal permission from the Secretary of Homeland Security. Santa Maria-Cleofas is a citizen of Mexico.
Assistant United States Attorney Erik S. Goes is handling the prosecution.
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Longs Man Sentenced to 24 Months in Federal Prison on Gun and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Quavon Melik Bellamy, age 22, of Longs, SC, was sentenced in federal court in Florence, South Carolina, for Possession of a Stolen Firearm and Ammunition and Possession with Intent to Distribute Marijuana. United States District Judge Bryan Harwell, of Florence, sentenced Bellamy to 24 months in federal prison with 3 years of supervised release to follow.
The evidence presented at the guilty plea hearing established that on February 14, 2017, law enforcement responded to a call about a man with a gun. The 911 caller provided officers with Bellamy’s name and a vehicle tag number. Officers ran the tag and identified the address on the vehicle’s registration. Officers responded to the address and located the vehicle in the front yard. When the officers arrived at the residence, Bellamy exited the house, and officers informed him of the victim’s report. Bellamy stated that he ran into the victim and they had “words,” but he denied possessing or presenting a firearm. Officers confirmed the vehicle was registered to Bellamy and inquired about firearms in the vehicle. Bellamy responded there were no firearms in the vehicle and gave consent to a search of the vehicle. Upon opening the vehicle door, the officer immediately smelled marijuana. Officers searched the vehicle and located a black purse on the back seat that contained two glass jars of marijuana and a scale. Officers also found a Springfield Armory 9mm handgun on the rear floorboard, fully loaded with fifteen rounds of ammunition, including one in the chamber. After being advised of his rights and agreeing to speak with law enforcement, Bellamy initially claimed he did not know anything about the firearm, only later to admit that it was his and that he presented it to the victim. After running the firearm’s serial number through dispatch, officers confirmed that the firearm was stolen.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Horry County Police Department, the Horry County Sheriff’s Office, and the South Carolina Highway Patrol. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
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.
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Lockport Woman Charged with Threatening A WitnessRead 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 Chanel Riggs, 27, of Lockport, NY, was arrested and charged by criminal complaint with threatening a witness scheduled to testify in a trial. The charge carries a maximum penalty of 20 years and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, Riggs is the girlfriend of defendant Rico Freeman who is facing drug conspiracy charges and scheduled to go to trial on May 8, 2018. Late on April 26, 2018, Riggs called a witness for the Government and threatened to kill the witness and the witness’s child by putting a bullet through their head. Riggs further told the witness that she knew the witness was “snitching.” During a follow up recorded phone call, Riggs threatened the witness by saying, “(expletive) you had to have cooperated. It’s black and white that you told.”
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a preliminary hearing scheduled for May 10, 2018 at 11 a.m.
The criminal complaint is the result of an investigation by: the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Niagara County Drug Task Force, under the direction of Sheriff James Votour; and the Lockport Police Department, under the direction of Chief Michael Niethe.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Local Doctor Arrested for Illegally Dispensing and Distributing Controlled Substances by PrescriptionsRead the Press Release
U.S. Attorney Duane A. Evans announced the unsealing of an indictment against WAYNE JEROME CELESTINE, age 57, a physician who practices in Gretna, Louisiana and resides in the New Orleans area. On Monday, April 30, 2018, DR. CELESTINE was arrested on charges of distribution of controlled substances. According to court records, DR. CELESTINE illegally dispensed and conspired with others to illegally dispense controlled substances, including oxycodone, oxycodone/acetaminophen, oxycontin HCL, oxymorphone HCL, hydromorphone, opana, fentanyl, suboxone, and morphine sulfate, a Schedule II drug controlled substances; hydrocodone/acetaminophen, a Schedule III drug controlled substance until October 6, 2014, thereafter, a Schedule II drug controlled substance; and alprazolam, diazepam, and carisoprodol, Schedule IV drug controlled substances.
CELESTINE made his initial appearance before U.S. Magistrate Court Judge Daniel E. Knowles, III, on Monday, April 30, 2018. A detention hearing is scheduled for May 1, 2018.
If convicted of the charge in the criminal complaint, CELESTINE will face a maximum of not more than 20 years in prison on the drug conspiracy charge, pursuant to Title 21, United States Code, Sections 841(a)(1) and 846. CELESTINE will also be subject to a fine of not more than one million dollars and a minimum term of supervised release of three years, following any term of imprisonment.
U.S. Attorney Evans praised the work of the Special Agents of the Drug Enforcement Administration, Internal Revenue Service, Jefferson Parish Sheriff’s Office, Harahan Police Department, Westwego Police Department, Louisiana State Police, St. Bernard Parish Sheriff’s Office, New Orleans Police Department, and New Orleans District Attorney’s Office in investigating this matter. Assistant United States Attorney John F. Murphy is in charge of the prosecution.
Lake Jackson Area Attorney Convicted in Scheme to Commit Bank FraudRead the Press Release
HOUSTON ‐ A Lake Jackson area attorney has entered a guilty plea to bank fraud for his role in a mortgage fraud scheme, announced U.S. Attorney Ryan K. Patrick.
Kirk Lawrence Brannan, 64, admitted to conspiring with others from 2005 to 2009 to execute a scheme to defraud Wells Fargo Bank and other lenders.
Brannan sold 10 beach homes in the Freeport/Surfside area to “straw buyers” at exorbitant prices. Other co-conspirators recruited straw buyers who created loan applications with misrepresentations that lenders relied upon in deciding to make the mortgage loans. The applications contained misrepresentations of the buyer’s address, employer, income and expenses. The applications also suggested the buyers were much better credit risks than they actually were. Brannan admitted he paid kickbacks to co-conspirators each time one of the beach homes was sold to a straw buyer.
The beach properties were sold at two to three times the appraised values. The mortgage lenders, including Wells Fargo Bank, were induced to lend the inflated amounts for the purchases through flawed or fraudulent appraisals which were based on comparisons Brannan manufactured to further the scheme.
Brannan created settlement statements that suggested he sold three of his properties to his children at exorbitant prices. Appraisers relied upon these “sales” as comparable sales in appraising Brannan’s remaining properties sold to straw buyers. As a result of the fraudulent appraisals, he and his co-conspirators were able to inflate the values for his properties and deceive the lenders into approving home loans at those exorbitant amounts.
All of the straw buyers defaulted on the mortgages, and all 10 of the beach properties ended up in foreclosure.
The fraudulent mortgage loan scheme resulted in a loss of $5,317,350 to Wells Fargo Bank and the other lenders. Brannan paid $2,401,368 to his co-conspirators as part of the scheme.
U.S. District Judge Lee Rosenthal accepted the plea and set sentencing for Aug. 29, 2018, at which time Brannan faces up to 30 years in federal prison and a possible $1 million maximum fine. He was permitted to remain on bond pending that hearing.
Co-conspirators Chucoboie Lanier, 41, David Lee Morris, 55, and Derwin Jerome Blackshear, 50, all of Houston, previously pleaded guilty for their roles in the scheme. They are set for sentencing Sept. 26, 2018.
The Texas Department of Public Safety and the FBI conducted the investigation. Assistant U.S. Attorneys Robert Johnson and Michael Day are prosecuting the case.
Kansas Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Kansas man who was caught with crystal methamphetamine and a firearm in Hurricane in November of 2017 pled guilty today to federal drug and gun charges, announced United States Attorney Mike Stuart. Bunthia Can Thach, 39, entered his guilty pleas to possession with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. U.S. Attorney Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Hurricane Police Department.
“Another dangerous, drug dealing, gun-toting criminal off the streets,” said United States Attorney Mike Stuart. “My Office is working with our federal, state and local law enforcement partners to prosecute repeat offenders like Thach.”
Around midnight on November 10, 2017, an officer with the Hurricane Police Department observed a vehicle parked just off the Interstate 64 exit ramp at Hurricane. The officer noted the vehicle had Kansas registration plates, was not running, and approached the vehicle to see if it contained a stranded motorist. The officer located Thach and another individual in vehicle. The officer also observed that Thach was wearing a gun holster and saw a loose bullet in the floorboard of the vehicle. Thach subsequently told the officer he hid a handgun under the passenger seat when the officer was approaching the vehicle. Officers then recovered a loaded Glock .45 caliber handgun with a 30-round extended magazine from under the seat. Officers also located approximately 54 grams of methamphetamine from a bag in the rear of vehicle.
Thach admitted that he traveled from Kansas to purchase a large quantity of marijuana which he was going to transport to North Carolina. Thach further admitted that he intended to sell the methamphetamine and that he brought the handgun from Kansas for protection during the trip. Officers also discovered that Thach had previously been convicted of multiple felony offenses and was prohibited from possessing a firearm.
Thach faces up to 20 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 on August 13, 2018.
Assistant United States Attorney Joseph F. Adams is responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as 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 illegal drugs, including methamphetamine. 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 illegal drugs in communities across the Southern District.
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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Jacksonville Man Sentenced to Federal Prison for Manufacturing and Possessing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – U.S. District Judge Maria Morales Howard has sentenced James Edward Langford, IV (30, Jacksonville) to 33 months in federal prison for manufacturing and possessing counterfeit Federal Reserve notes.
According to court documents, in late July 2017, law enforcement officers received information that Langford was manufacturing counterfeit Federal Reserve notes at a hotel in Jacksonville. On July 25, 2017, U.S. Secret Service agents surveilled the hotel room and observed Langford and two others leave the room. Langford and one of the individuals discarded full trash bags by the hotel’s trash area. A search of the bags revealed several uncut sheets of wadded paper with printed images of counterfeit $20 bills.
Later that day, agents observed Langford leave the room and exit the hotel parking lot. Surveillance teams observed him driving erratically, cutting across three lanes of traffic, speeding, and entering an intersection and then making a sudden U-turn. Law enforcement initiated a traffic stop and, during a search of Langford, multiple counterfeit $20 Federal Reserve notes were recovered from Langford’s wallet. A subsequent search of Langford’s hotel room revealed numerous counterfeit notes and the computer media used to manufacture them, along with chemicals commonly used to remove the ink from genuine bills during the counterfeiting process.
This case was investigated by the United States Secret Service - Jacksonville Field Office and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Grant County man sentenced for role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Gary Smith, of Maysville, West Virginia, was sentenced today to five years probation for his participation in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Smith, 66, pled guilty to one count of “Unlawful Use of a Communication Facility” in July 2017. Smith admitted to using a communication facility to possess methamphetamine in Grant County in November 2016.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The United States Postal Inspection Service and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Georgia woman sentenced to 8 years in prison for mail fraud charge in stolen vehicle title schemeRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that a Georgia woman was sentenced last week to 96 months in prison for her role in a scheme to illegally obtain Louisiana titles for stolen vehicles.
Quinetta Grant, 45, of Suwanee, Georgia, was sentenced Tuesday by U.S. District Judge S. Maurice Hicks Jr. on one count of mail fraud. She was also sentenced to three years of supervised release and was ordered to pay $300,000 restitution. According to the October 25, 2016 guilty plea, Grant sent a title application and supporting documents for a stolen vehicle in May of 2015 to a resident in Monroe who then submitted the documents to an Office of Motor Vehicles authorized automobile title processor in West Monroe, Louisiana. The title processor was a private business contracted to work with the Louisiana Office of Motor Vehicles to process title applications.
The FBI conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Former Loan Broker Sentenced for Defrauding Small BusinessesRead the Press Release
BOSTON – A Saugus loan broker was sentenced today in federal court in Boston for operating a scheme that defrauded small businesses from across the country in connection with their efforts to obtain business loans.
Joseph L. Angelo Jr., 59, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 40 months in prison, three months of supervised release and ordered to pay restitution of $1.1 million. In September 2017, Angelo Jr. pleaded guilty to 11 counts of wire fraud.
From November 2011 to March 2015, Angelo defrauded 10 small business owners of more than $1 million by representing that his companies – Lease One Corp. and Palmtree Finance & Funding LLC – were brokers for obtaining loans for small businesses. Angelo required the customers to deliver to him what he said were fully refundable deposits, aggregating over $1.1 million for loans that he said had been approved and would be funded within a few days. In fact, none of the loans had been approved, and there were no funds available. When the small business owners complained about delays in receiving funds, Angelo promised that their deposits would be refunded, but he did not refund any of the deposits or secure funding for any of the requested loans.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Victor A. Wild of Lelling’s Economic Crimes Unit prosecuted the case.
Former Autonomy CFO Convicted of Wire FraudRead the Press Release
SAN FRANCISCO – Sushovan Hussain, the former Chief Financial Officer of Autonomy Corporation plc, was convicted of one count of conspiracy, fourteen counts of wire fraud and one count of securities fraud by a federal jury today, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The verdict follows a two-month trial before the Honorable Charles R. Breyer, U.S. District Judge.
“The jury verdict affirms that corporate criminals who cook their company’s books to the detriment of victims in the United States, and specifically this district, will be held to account in our courts,” said Acting United States Attorney Alex G. Tse. “From 2009 to 2011, Sushovan Hussain misused his special skills in accounting to falsely inflate Autonomy’s revenues. The defendant then touted Autonomy’s false and misleading financial statements to senior executives at Hewlett-Packard Company, and eventually defrauded HP of over $11.7 billion. Corporate citizens and their shareholders, just like all citizens, deserve the full protection of our criminal laws. I am proud of the sustained investigative commitment by our partners at the FBI and appreciate the cooperation of the Financial Reporting Council and Serious Fraud Office in the United Kingdom.”
“Today's verdict is a massive victory for the victim company, our community and for the American people," said FBI San Francisco Division Special Agent in Charge John F. Bennett. "Such egregious dishonesty in business practice violates the trust of our citizens and will not be tolerated by the FBI and our law enforcement partners.”
In 2011, Hewlett-Packard Company acquired Autonomy, the former software technology company, for about $11.7 billion. The evidence at trial demonstrated that for more than two years prior to the sale, Hussain, 54, a citizen and resident of the United Kingdom, falsely inflated Autonomy’s revenues to make it appear Autonomy was growing when it really was not. Specifically, Hussain used backdated contracts, roundtrips, channel stuffing, and other forms of accounting fraud to inflate Autonomy’s publicly-reported revenues by as much as 14.6% in 2009, 17.9% in 2010, 21.5% in the first quarter of 2011, and 12.4% in the second quarter of 2011.
In addition, Hussain, and his co-conspirators, fraudulently concealed from investors and market analysts the scale of Autonomy’s hardware sales, which were used to boost the company’s reported top-line revenue. Autonomy’s total revenues included re-sold hardware of approximately $53.3 million in 2009, $99.08 million in 2010, $20.09 million in the first quarter of 2011, and $20.85 million in the second quarter of 2011. The evidence at trial demonstrated that Hussain falsely suggested to Autonomy investors and analysts that the loss-generating hardware revenue was really high-margin software revenue.
On November 10, 2016, a federal grand jury indicted Hussain charging him with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and 14 counts of wire fraud, in violation of 18 U.S.C. § 1343. On May 4, 2017, the federal grand jury handed down a superseding indictment adding one count of securities fraud. The Jury convicted the defendant on all counts in the superseding indictment.
Until its acquisition by HP on October 3, 2011, Autonomy Corporation plc was a company incorporated in England and Wales with a registered office in Cambridge, United Kingdom. Autonomy was the holding company of a group of companies engaged in software development and distribution. Autonomy maintained dual headquarters in San Francisco, California, and Cambridge. Autonomy’s major subsidiaries included Autonomy, Inc., with offices in San Francisco and San Jose; Interwoven, Inc., with offices in San Jose; and ZANTAZ, Inc., with offices in Pleasanton. Until 2011, Autonomy was a public company whose shares were listed on the London Stock Exchange under the trading symbol “AU” and were bought, held, and sold by individuals and entities throughout the United States. Autonomy reported total revenues of approximately $739 million in 2009 and approximately $870 million in 2010.
Judge Breyer scheduled Hussain’s next court appearance for Friday, May 4, 2018, at which time the court will consider conditions for the defendant’s continued release and a schedule for sentencing. The defendant faces a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for the conspiracy count and each of the wire fraud counts. The defendant faces a maximum sentence of twenty-five (25) years in prison, and a fine of $250,000, plus restitution, for the securities fraud count. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robert S. Leach, Adam A. Reeves, and William Frentzen are prosecuting the case with the assistance of Beth Margen, Phillip Villanueva, Bridget Kilkenny, and Allen Williams. The prosecution is the result of investigations by the FBI and the United States Securities and Exchange Commission.
Former Arkansas State Senator and Representative Pleads Guilty to Conspiracy and BriberyRead the Press Release
LITTLE ROCK—Former Arkansas State Senator and State Representative Henry (Hank) Wilkins IV pleaded guilty today to conspiring to accept over $80,000 in bribes in exchange for influencing Arkansas state legislation and transactions, including steering approximately $245,000 in Arkansas General Improvement funds to his co-conspirators. Wilkins also pleaded guilty to devising a scheme to conceal the bribe payments as donations to St. James United Methodist Church in Pine Bluff, Arkansas, where Wilkins also served as a pastor.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Cody Hiland, United States Attorney for the Eastern District of Arkansas, and FBI Special Agent in Charge Diane Upchurch made the announcement following a hearing before Chief United States District Judge Brian S. Miller.
“By misusing his elected office to line his own pockets, Henry Wilkins undermined the integrity of our political process and abused the public’s trust,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to rooting out such corruption and holding those responsible accountable for their actions.”
“Public corruption destroys the trust that is necessary for our republic,” Hiland said. “In this case, the citizens of Arkansas were betrayed by Mr. Wilkins, and elected officials who abuse their position for personal gain must be held accountable for that violation of the public trust. Investigating and prosecuting individuals such as Mr. Wilkins is essential to restoring confidence in elected officials. This office will continue to relentlessly pursue anyone who tries to undermine our system of government.”
Wilkins, 64, of Pine Bluff, who represented Arkansas’s House District 17 as a state Representative from 1999 to 2001 and again from 2011 to 2015, and District 5 in the Arkansas Senate from 2001-2011, pleaded guilty before Judge Miller to an information charging him with one count of conspiracy to commit offenses against the United States, namely honest services fraud and bribery.
As part of his plea, Wilkins admitted that from 2010 to 2014, while serving in the Arkansas General Assembly, he accepted a series of bribes from lobbyists and non-profit organizations that were transmitted both in the form of cash and checks funneled from lobbying firms to a discretionary fund held in St. James’ name where Wilkins had access to the deposited funds. In exchange for the cash and check bribes, Wilkins performed, and agreed to perform, official acts in his capacity as an Arkansas legislator including filing shell bills, sponsoring bills, voting in favor of specific legislation, and steering approximately $245,000 in General Improvement funds to entities that funneled bribes to Wilkins through his church.
“Wilkins took an oath to uphold the law and protect the citizens of Arkansas,” SAC Upchurch said. “Instead, Wilkins betrayed the community he swore to protect. We appreciate the commitment made by our partners, the Public Integrity Section of the Department of Justice and the United States Attorneys’ Offices for the Eastern District of Arkansas, the Western District of Arkansas, and the Western District of Missouri.”
The charge of conspiracy to commit crimes against the United States carries a maximum penalty of not more than five years’ imprisonment, not more than a $250,000 fine, and not more than three years supervised release. Judge Miller will sentence Wilkins at a later date.
The FBI investigated this case. Trial Attorney Marco A. Palmieri of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorneys Stephanie Mazzanti and Patrick C. Harris of the Eastern District of Arkansas, and Ben Wulff of the Western District of Arkansas are prosecuting the case. This is a combined investigation with the Public Integrity Section of the Department of Justice, the Eastern District of Arkansas, Western District of Arkansas, and the Western District of Missouri.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line athttp://www.justice.gov/edar
Plea Agreement Information
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@EDARNEWSFormer Arkansas State Senator and Representative Pleads Guilty to Conspiracy and BriberyRead the Press Release
Former Arkansas State Senator and State Representative Henry (Hank) Wilkins IV pleaded guilty today to conspiring to accept over $80,000 in bribes in exchange for influencing Arkansas state legislation and transactions, including steering approximately $245,000 in Arkansas General Improvement funds to his co-conspirators, and to devising a scheme to conceal the bribe payments as donations to St. James United Methodist Church in Pine Bluff, Arkansas, where Wilkins also served as a pastor.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Cody Hiland for the Eastern District of Arkansas made the announcement.
Wilkins, 64, of Pine Bluff, Arkansas, who represented Arkansas’s House District 17 as a state Representative from 1999 to 2001 and again from 2011to 2015, and District 5 in the Arkansas Senate from 2001 to 2011, pleaded guilty before Chief U.S. District Judge Brian S. Miller to an information charging him with one count of conspiracy to commit offenses against the United States.
“By misusing his elected office to line his own pockets, Henry Wilkins undermined the integrity of our political process and abused the public’s trust,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to rooting out such corruption and holding those responsible accountable for their actions.”
“Public corruption destroys the trust that is necessary for our republic,” said U.S. Attorney Cody Hiland for the Eastern District of Arkansas. “In this case, the citizens of Arkansas were betrayed by Mr. Wilkins, and elected officials who abuse their position for personal gain must be held accountable for that violation of the public trust. Investigating and prosecuting individuals such as Mr. Wilkins is essential to restoring confidence in elected officials. This office will continue to relentlessly pursue anyone who tries to undermine our system of government.”
As part of his plea, Wilkins admitted that from 2010 to 2014, while serving in the Arkansas General Assembly, he accepted a series of bribes from lobbyists and non-profit organizations that were transmitted both in the form of cash and checks funneled from lobbying firms to a discretionary fund held in St. James’ name where Wilkins had access to the deposited funds. In exchange for the cash and check bribes, Wilkins performed, and agreed to perform, official acts in his capacity as an Arkansas legislator including filing shell bills, sponsoring full bills, voting in favor of specific legislation, and steering approximately $245,000 in General Improvement funds to entities that funneled bribes to Wilkins through his church.
The FBI investigated this case. Trial Attorney Marco A. Palmieri of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Stephanie Mazzanti and Patrick C. Harris of the Eastern District of Arkansas and Ben Wulff of the Western District of Arkansas are prosecuting the case. This is a combined investigation with the Public Integrity Section of the Department of Justice, the Eastern District of Arkansas, Western District of Arkansas, and the Western District of Missouri.
Fifth Nigerian Co-Conspirator Sentenced to Federal Prison in Nationwide Identity Theft and IRS Tax Fraud SchemeRead the Press Release
EUGENE, Ore. – On April 30, 2018, U.S. District Court Judge Ann Aiken sentenced Oluwamuyiwa Abolad Olawoye, 32, a Nigerian citizen and recent resident of Georgia, to 108 months in federal prison for his role in a conspiracy to commit mail and wire fraud and aggravated identity theft. Olawoye’s sentence includes a two-year mandatory minimum for possessing or using a victim’s identity to commit fraud. He was also ordered to pay more than $3.2 million in restitution and will be subject to deportation when released from prison.
Four other co-conspirators, Oluwaseunara Osanyinbi, Oluwatobi Dehinbo, Lateef Animawun and Michael Kazeem, previously received federal prison sentences for their roles in the same conspiracy. In August 2017, the conspiracy’s leader, Emmanuel Kazeem, was convicted by a federal jury of 19 counts of mail and wire fraud, aggravated identity theft, and conspiracy to commit mail and wire fraud and will be sentenced on May 17, 2018.
IRS agents recovered over 111,000 stolen taxpayer identities from Olawoye’s email and instant messenger accounts. More than 13,000 identities were from an Oregon company’s database that included over 5,500 Oregon residents. Olawoye received the database identities directly from Kazeem and obtained thousands of additional stolen identities from other unknown sources. In total, Olawoye was linked to more than 1,300 fraudulent federal tax returns seeking over $11.5 million. A review of his email account showed he wired over $387,000 in tax refund proceeds overseas.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and Homeland Security Investigations with support provided by the Department of Treasury, Inspector General for Tax Administration, the U.S. State Department, and the Oregon Department of Revenue Policy and Systems Unit. The case is being prosecuted by Byron Chatfield and Gavin Bruce, Assistant U.S. Attorneys for the District of Oregon.
Fifth Federal Inmate at Fort Dix Admits Possessing Images and Videos of Child Sexual Abuse While in PrisonRead the Press Release
CAMDEN, N.J. – A Fredericksburg, Virginia, man today admitted possessing images of child sexual abuse while imprisoned at Federal Correctional Institution Fort Dix for a previous offense involving the distribution of child pornography, U.S. Attorney Craig Carpenito announced.
Jacob S. Good, 26, pleaded guilty before Senior U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
Good admitted that he possessed a micro SD Card which contained numerous images of child pornography, some of which depicted prepubescent children. In connection with his plea, Good also admitted that he used a smart phone and access to the dark web to view and possess child pornography.
Good and seven other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that Good and other inmates utilized contraband cellphones, micro SD cards, and access to the internet to obtain, view, and distribute child pornography within the prison. A co-defendant organized and helped facilitate this criminal activity by maintaining cloud accounts that were used as repositories for child pornography.
At sentencing, Good faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Sentencing is scheduled for Aug. 7, 2018.
Four other inmates – Erik M. Smith, 36, of Iron Mountain, Michigan, Anthony C. Jeffries, 32, of Orange, Virginia, Jordan T. Allen, 31, of Plain City, Ohio, and Brian J. McKay, 47, of Brookhaven, Pennsylvania – have also pleaded guilty to possession of child pornography and await sentencing.
Charges remain pending against Christopher D. Roffler, 30, of Virginia Beach, Virginia; William H. Noble, 52, of Lowell, Massachusetts; and Charles Wesley Bush, 38, of Knoxville, Tennessee, all of whom were serving sentences for prior child pornography offenses while committing the alleged crimes in this case. The pending charges and allegations are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: David M. Simon, Esq., Camden
Felon from San Juan County Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Romualdo Munoz, 37, of Bloomfield, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal firearms laws by being a felon in possession of firearms and ammunition.
Munoz was arrested in Jan. 2018, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 30, 2017, in San Juan County, N.M. According to the indictment, Munoz was prohibited from possessing firearms or ammunition because of his prior felony convictions for possession of a controlled substance, receiving stolen property, aggravated fleeing from a law enforcement officer, and being a felon in possession of a firearm or destructive device.
During today’s proceedings, Munoz pled guilty to the indictment charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Munoz admitted that on May 30, 2017, law enforcement officers found a firearm and multiple rounds of ammunition inside Munoz’s vehicle during a consensual search. Munoz further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Munoz faces a maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the HIDTA Region II Task Force. Assistant U.S. Attorney Peter J. Eicker is prosecuting the case.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal, State, and Local Law Enforcement Officials Announce Results of Project Safe Neighborhoods Initiative to Fight Violent Crime in Yellowstone CountyRead the Press Release
Yellowstone County PSN Fact Sheet BILLINGS – Today, United States Attorney Kurt Alme and Yellowstone County Attorney Scott Twito announced the preliminary results of collaborative efforts to reduce violent crime in Yellowstone County under the Project Safe Neighborhoods initiative, including the court appearances and arrests of 17 subjects facing federal or state charges for armed robbery, trafficking methamphetamine, and illegally possessing firearms.Last fall, United States Attorney General Jeff Sessions directed all United States Attorneys to reinvigorate the Department of Justice initiative known as Project Safe Neighborhoods to reduce violent crime in communities. Since that time, federal, state, and local law enforcement agencies launched a Project Safe Neighborhoods initiative for Yellowstone County. Participating agencies include the Billings and Laurel Police Departments; Yellowstone County Sheriff’s Office; Montana Department of Justice Highway Patrol and Division of Criminal Investigation, Montana Department of Corrections Probation and Parole Division, U. S. Marshal’s Service, U.S. Alcohol Tobacco and Firearms, Drug Enforcement Administration, Federal Bureau of Investigations, and Homeland Security Investigations. The initiative also calls for prosecutors from the Yellowstone County Attorney’s Office, Montana Department of Justice Prosecution Services Division and the U. S. Attorney’s Office to prosecute defendants in both state and federal courts.
“As I said in Billings on Friday, Project Safe Neighborhoods is proven to work,” Attorney General Sessions said. “Under PSN, I've directed our U.S. Attorneys to target the most violent criminals in the most high-crime areas, and to work with people in the community to develop a customized crime-reduction plan. That's exactly what U.S. Attorney Kurt Alme has done in Yellowstone county and across Montana. I want to thank him, our federal agents, and all of our fabulous state and local law enforcement partners who have made this initiative a success for the people of Montana. This initiative is more proof that this local, community-based model really works.”
County Attorney Twito said: “The message of Project Safe Neighborhoods is clear, if you commit armed robbery, push methamphetamine or commit a firearms offense, you will be arrested and you will be prosecuted to the full extent of the law.”
A second part of the Project Safe Neighborhoods initiative is to support methamphetamine substance abuse prevention and treatment. Attorney General Tim Fox, whose office is implementing the AID Montana initiative, stated, “Combating the effects of Montana’s growing substance abuse crisis will take comprehensive and collaborative efforts across the state. I want to thank U.S. Attorney Alme, Chief St. John, County Attorney Twito and Sheriff Linder for their incredible work in Yellowstone County to crack down on violent crime. My office’s Aid Montana initiative will continue to strategically target all aspects of substance abuse in our state, and I look forward to what we will accomplish.”
U. S. Attorney Alme said: “In addition to violent crime, meth is causing our jails to fill, overwhelming our foster care system, overcrowding our treatment facilities, burdening our hospitals, and leaving many in our community with little more than addiction. All of us in law enforcement want to support the drug courts, probation offices, treatment facilities, schools, health and mental health care facilities, foster care providers, drug prevention groups and other governmental and community organizations in creating a community response to address this problem. Our goal is to help keep our community safe by supporting those who keep people from using methamphetamine and help users become sober.”
According to the FBI’s Uniform Crime Reports, violent crime in Montana is up almost 35 % through 2016 from its low in 2010. According to data from the Billings Police Department, violent crime in Billings increased 75 % from 2010 through 2017. Violent crimes include murder, rape, robbery and aggravated assault.
In response, last month, federal, state and local law enforcement began a concerted effort in Yellowstone County to arrest armed robbers, methamphetamine dealers and traffickers, and felons and other prohibited persons not allowed to possess firearms under federal law.
The following suspects have recently been arrested under the Project Safe Neighborhoods Yellowstone County initiative and have appeared in federal and state courts on the following charges:
- Christopher Alan Esrey, 31, from Billings, for robbery;
- Dante King, 35, from Oakland, California, for possession of a firearm by a prohibited person;
- Dustin Houston, 35, from Billings, for trafficking methamphetamine and carrying or possessing a firearm;
- Maurice Joseph Fregia, AKA Frosty, 31, from Manteca, California, for trafficking methamphetamine;
- Chad Allen Beres, 31, from Manteca, California, for trafficking methamphetamine;
- Daniel Ellis Pappas, 51, from Billings, for trafficking methamphetamine;
- Molly May Fogle, 19, from Billings, for trafficking methamphetamine;
- John Cameron Swift 51, from Billings, for trafficking methamphetamine and carrying a gun;
- Scott Allen Wortman, 46, from Billings, for trafficking methamphetamine and heroin, and carrying a gun;
- Brian Pretty Weasel, 29, from Billings, for possession of a firearm by a prohibited person;
- Lance Ratcliff, 32, from Natrona County Wyoming, for possession of a firearm by a prohibited person;
- Lionel Duane Bennett, 54, from Billings, for trafficking methamphetamine and carrying a firearm;
- Joshua Allen Kroll, 37, from Billings, for endangering the welfare of a child and trafficking and possessing multiple controlled substances including methamphetamine, cocaine, oxycodone, hashish, mushrooms, marijuana, zolpidem, methylphenidate, diazepam, tramadol, and temazepam;
- Tabitha Lydia Marie Delao, 34, for endangering the welfare of a child and trafficking and possessing multiple controlled substances including methamphetamine, cocaine, oxycodone, hashish, mushrooms, marijuana, zolpidem, methylphenidate, diazepam, tramadol, and temazepam.
In addition, the United States Marshal’s Violent Crime Task Force has arrested three additional subjects on Yellowstone County warrants related to Project Safe Neighborhood offenses, i.e., those involving methamphetamine trafficking, armed robbery, or various federal gun crimes.
All defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Alme thanked all of the members Project Safe Neighborhoods – Yellowstone County for their work to make the community safer.
Environment and Natural Resources Division Releases Accomplishments Report for FY2017Read the Press Release
Today, the Department of Justice’s Environment and Natural Resources Division (ENRD) released its Accomplishments Report for Fiscal Year (FY) 2017. The report, which is published annually by ENRD, highlights the division’s strong enforcement of our nation’s environmental laws, defense of government programs that strengthen the country’s energy independence and national security, and close collaboration with states and tribes.
“It has been a true honor and privilege to serve as the Acting Assistant Attorney General for the Environment and Natural Resources Division (ENRD) since January 2017, under the leadership of Attorney General Jeff Sessions and alongside the extraordinary public servants of the division,” said Acting Assistant Attorney General Jeffrey H. Wood. “ENRD is a powerful force for good in our country — both through our enforcement of the environmental laws to protect clean land, clean air, clean water, and wildlife, and our defense of the rule of law and good governance by the federal agencies that ENRD represents.”
This year, ENRD focused on several key objectives: vigorously enforcing the environmental laws of the United States; promoting energy independence and economic growth by reducing regulatory burdens and supporting infrastructure development; strengthening national security; promoting cooperative federalism by partnering with states and tribes; and responsibly protecting taxpayer dollars.
In 2017, ENRD obtained a number of court orders requiring responsible parties to clean up hazardous waste and to reimburse the government for cleanups conducted by federal agencies. The division also concluded landmark civil and criminal cases against Volkswagen AG, which used “defeat devices” to cheat our air emissions laws. The division also continued to work with federal and state partner agencies to investigate other possible bad actors in the auto industry and to bring similar violators to justice.
Among other successes this year, ENRD secured the largest-ever penalty for crimes involving deliberate vessel pollution — $40 million — against Princess Cruise Lines, a subsidiary of the world’s largest cruise company. In another settlement announced in early 2018 (FY2018), the division required Denver-based PDC Energy to spend approximately $19.7 million to reduce emissions of volatile organic compounds from 650 tank batteries and pay a $2.5 million civil penalty. The division also negotiated the cleanup of 94 abandoned uranium mines on Navajo Nation lands. In addition, the division criminally prosecuted more than 20 wildlife traffickers who harmed protected species.
The change in administration also brought changes in policy priorities for the agencies that the division represents. Through its representation of the United States in legal challenges to new policy initiatives at partner agencies such as the Environmental Protection Agency (EPA), the Department of Interior (DOI), the Department of Defense, and the Department of Homeland Security, the division has played a critical role in paving the way for investments in infrastructure and energy security projects that will strengthen the U.S. economy, as well as facilitating more robust border control and military operations to protect our national security. For example, ENRD defended the federal permits issued for several energy infrastructure projects, including the Dakota Access Pipeline (which is now operational), and has resolved a number of critical cases to acquire land for improved border protection and for expansion or development of military installations.
The Trump Administration is undertaking an ambitious agenda of regulatory reform, and ENRD supports this effort by advising partner agencies, including EPA and DOI, on high-priority rulemakings and ensuring the effective defense of regulatory actions in court. The division also is managing a number of cases challenging agency regulations promulgated under previous administrations that are under review pursuant to President Trump’s Executive Orders. Notable examples are challenges to the Clean Power Plan and the Clean Water Rule.
“Our aim at ENRD is to avoid unnecessary litigation, support the integrity of the administrative process, and conserve the resources of the courts, the agencies, and other litigants, while also defending the rightful prerogative of the Administration to review the costs and benefits of regulations and to chart a new direction where appropriate,” Acting Assistant Attorney General Wood added.
In FY2017, ENRD worked on 3,943 cases and matters, while maintaining a robust docket of nearly 7,000 cases and matters. In addition, ENRD obtained over $4.8 billion in civil and criminal fines, penalties, and costs recovered, and the estimated value of federal injunctive relief obtained — clean-up and pollution prevention actions funded by private parties — exceeded $18.7 billion. ENRD also saved the government an estimated $360 million in the successful defense of claims brought against the government. The division is also implementing recent policy directives by the Attorney General, including restrictions on third party payments in settlement agreements.
The report also recognizes the important contributions of ENRD’s front office leadership: Deputy Assistant Attorneys General Jean Williams, Bruce Gelber, Eric Grant, and Jonathan Brightbill, as well as Counsel and Chief of Staff Corinne Snow.