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24 May 2018
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Bradley Makes Room For Them, age 33, was indicted on May 15, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Makes Room For Them was convicted of Aggravated Sexual Abuse in September 2003. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 6, 2018, and April 28, 2018, Makes Room For Them, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Makes Room For Them is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Makes Room For Them was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Patrick Black Spotted Horse, age 28, was indicted on May 15, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Black Spotted Horse was convicted of Sexual Abuse of a Minor in March 2010. As a result of this conviction, he is required to register as a sex offender. It is alleged that between March 11, 2018, and May 3, 2018, Black Spotted Horse, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Raleigh Man Sentenced to More Than 21 Years for Manufacturing Child PornographyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced ADAM GEOFFREY FRANKEL, 33, of Cary, North Carolina, to 295 months of imprisonment followed by ten years of supervised release for production of multiple videos containing child pornography.
FRANKEL was named in a twelve-count Superseding Indictment on September 8, 2017. On December 11, 2017, FRANKEL pled guilty pursuant to a plea agreement to manufacturing child pornography.
In October of 2014 Cary Police Department began an online investigation relating to the distribution and receipt of child pornography through file sharing programs. During the course of the investigation, FRANKEL was identified downloading and distributing child pornography from an IP address associated with his home. A search warrant was issued for FRANKLE’s home and law enforcement seized multiple computers, external hard drives, cellular phones and media storage devices. The forensic examination of the items collected contained multiple videos created by FRANKEL, he communicated with underage females and solicited them to perform sexual acts on video. The forensic examination also uncovered the defendant’s collection of child pornography of a least 136,350 images.
In addition to the prison sentence, FRANKEL agreed to the forfeiture of his residence located on Belrose Drive in Cary along with several pieces of computer equipment, all of which were used to commit the charged offense.
Mr. Higdon commented: “The twenty-one and a half year sentence imposed by the Court certainly matches the horrible nature of the crime in this case. This defendant victimized several children with his production of pornography as well as his distribution and receipt of an incredible volume of pornography produced by others. This sentence should be a warning to others engaged in this horrendous conduct – we will not tolerate the victimization of our children and we will seek lengthy sentences as punishment for this behavior and as a means of ensuring you cannot prey upon others.”
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The Cary Police Department conducted the criminal investigation of this case. Assistant United States Attorney Melissa Belle Kessler handled the prosecution of this case for the United States.
Raleigh Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court, Chief United States District Judge James C. Dever, III sentenced STEPHEN GLENN BATTS, 48, of Raleigh, North Carolina, to 151 months of imprisonment followed by 10 years of supervised release.
BATTS was named in a ten-count Indictment on September 8, 2017. On January 23, 2018, BATTS pled guilty to nine counts of Receipt of Child Pornography and one-count of Possession of Child Pornography.
In December 2016, a detective with the Cary Police Department, conducted an online investigation looking for offenders sharing child pornography. The investigation focused on an Internet Protocol (IP) because it was sharing known images of child pornography. The detective located files being shared by this IP address. Officers connected to the target computer and downloaded 735 files. A review of those files showed that 598 were child pornography while the other were child erotic in nature but not sexual conduct. The majority of the 598 files downloaded by investigators were of sexual acts with infants, toddlers, and children under 6 years old. This information was relayed to Homeland Security Investigations in Raleigh for further investigation. Further along in the investigation, agents identified the address associated with that IP address and obtained a search warrant.
On February 1, 2017, a search warrant was executed by agents at BATTS’ residence. BATTS was present at the time of the search. During their search, investigators found several computer devices belonging to BATTS. BATTS provided a statement to agents, first denying but later admitting, that he searched and downloaded child pornography from his laptop computers. BATTS advised agents that he began looking at child pornography in 2002. BATTS said he also viewed child pornography in webinars. He acknowledged that he received child pornography over the internet.
A complete forensics examination of the files obtained from BATTS’ computer devices revealed approximately 962 videos and 39,078 images of child pornography. A review of the hard drive included numerous known internet search terms associated with child pornography.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The Cary Police Department and Homeland Security Investigations conducted the criminal investigation of this case. Assistant United States Attorney James C. Kurosad handled the prosecution of this case for the United States.
Ponchatoula Man Indicted for Receipt of Materials Involving the Sexual Exploitation of MinorsRead the Press Release
NEW ORLEANS – DANIEL JUSTIN MAHAN, age 42, a resident of Ponchatoula, Louisiana, was indicted today for receipt of materials involving the sexual exploitation of minors, announced U.S. Attorney Duane A. Evans.
MAHAN was arrested on March 15, 2018, by Special Agents of the Federal Bureau of Investigation (FBI) subsequent to the execution of a search warrant at his home. The FBI’s investigation revealed that MAHAN was in possession of a laptop computer which contained images depicting the sexual victimization of prepubescent children.
If convicted, MAHAN faces a mandatory minimum five-year term of imprisonment and a maximum sentence of 20 years imprisonment to be followed by up to a life term of supervised release, and a $250,000.00 fine.
U. S. Attorney Duane A. Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Tracey N. Knight.
Pfizer Agrees to Pay $23.85 Million to Resolve Allegations that it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company Pfizer Inc. has agreed to pay $23.85 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
As part of today’s settlement, the government alleged that Pfizer used a foundation, which claims 501(c)(3) status for tax purposes, as a conduit to pay the co-pay obligations of Medicare patients taking three Pfizer drugs, Sutent and Inlyta, which both treat renal cell carcinoma, and Tikosyn, which treats arrhythmia in patients with atrial fibrillation or atrial flutter. The government alleged that, in order to generate revenue and instead of giving Sutent and Inlyta to Medicare patients who met the financial qualifications of Pfizer’s existing free drug program, Pfizer worked with a third-party specialty pharmacy to transition some portion of those patients to the foundation, which covered the patients’ Medicare copays and caused Medicare claims to result from the filling of the patients’ Sutent and Inlyta prescriptions. In connection with this initiative, according to the government’s allegations, Pfizer made donations to the foundation and thereafter received data from the foundation, via the specialty pharmacy, confirming that the foundation funded the Medicare copays of Sutent and Inlyta patients. With respect to Tikosyn, Pfizer raised the wholesale acquisition cost of a package of forty .125 mg capsules of the drug by 44 percent during the last three months of 2015. Knowing the price increase would increase Medicare beneficiaries’ copay obligations for Tikosyn, which could result in more Medicare patients needing financial assistance to fill their Tikosyn prescriptions, Pfizer allegedly worked with the foundation to create and finance a fund for Medicare patients being treated for arrhythmia with atrial fibrillation or atrial flutter. According to the allegations in the settlement agreement, Pfizer coordinated the timing of the opening of the fund for these patients with the implementation of a Tikosyn price increase, and Pfizer then began referring to the foundation any Medicare patients who needed financial assistance to meet their newly-increased copays for the drug. For the next nine months, Tikosyn patients accounted for virtually all of the beneficiaries of the fund.
“Pfizer used a third party to saddle Medicare with extra costs,” said United States Attorney Andrew E. Lelling. “According to the allegations in today’s settlement agreement, Pfizer knew that the third-party foundation was using Pfizer’s money to cover the co-pays of patients taking Pfizer drugs, thus generating more revenue for Pfizer and masking the effect of Pfizer’s price increases. The Anti-Kickback Statute exists to protect Medicare, and the taxpayers who fund it, from schemes like these. At the same time, we commend Pfizer for stepping forward to resolve these issues in a responsible manner.”
“Kickbacks undermine the independence of physician and patient decision-making, and raise healthcare costs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “As today’s settlement makes clear, the Department will hold accountable drug companies that pay illegal kickbacks—whether directly or indirectly—to undermine taxpayer funded healthcare programs, including Medicare.”
“Today’s settlement demonstrates the FBI’s commitment to making sure patients receive, and the government pays for, health care that is not compromised by kickbacks,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “What Pfizer is accused of doing in this case—masking charitable contributions to increase company profits-- violates the basic trust patients extend to the healthcare system and threatens the financial integrity of the Medicare program.”
Pfizer also has entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The five-year CIA requires, among other things, that Pfizer implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, compliance-related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Our corporate integrity agreement promotes independence between Pfizer and any patient assistance programs to which it may donate,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and human Services. “Without true independence, as we have seen in this case, drug companies may use patient assistance programs as conduits for improper payments that harm Medicare.”
U.S. Attorney Lelling, Acting Assistant Attorney General Readler, HHS-OIG Chief Counsel Demske, and FBI SAC Shaw made the announcement today. This matter was investigated by HHS-OIG, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Department of Veterans Affairs Office of Inspector General. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro, Abraham George, and Deana El-Mallawany of Lelling’s Office, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Pensacola Tax Preparer Found Guilty of Preparing False Tax ReturnsRead the Press Release
PENSACOLA, FLORIDA – Benell English, 57, of Pensacola, was found guilty of 18 counts of preparing false tax returns yesterday following a three-day federal jury trial in Pensacola. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
English, the tax return preparer at Select Tax Service on E Street in Pensacola, was found guilty of preparing and filing false tax returns with the Internal Revenue Service between 2013 and 2017. English fraudulently represented that the taxpayers had Schedule A itemized deductions, Schedule C business losses or profits, and/or household employee income without the taxpayers’ knowledge. English earned approximately $10,600 for preparing the 18 false returns. As a result, the Internal Revenue Service paid $182,887 in refunds that should not have been paid.
The maximum penalty for each count is three years in prison. Sentencing is scheduled for August 19, 2018, at the United States Courthouse in Pensacola.
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation and the Social Security Administration-Office of Inspector General. Assistant United States Attorney Alicia H. Forbes is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Owner of Milton Roofing Business Pleads Guilty to Failing to Report $2.1 Million in Business ReceiptsRead the Press Release
BOSTON – The owner of George H. Richard & Son Roofing in Milton, Mass., pleaded guilty today in federal court in Boston to filing a false tax return which failed to disclose substantial business receipts.
Harry S. Richard, 68, pleaded guilty to one count of filing a false individual tax return. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for Sept. 11, 2018.
Richard owned and operated Richard Roofing, a business established by his great-grandfather in 1865. From 2010 through 2013, Richard deposited the bulk of the payments he received for roofing services into his personal bank accounts and failed to disclose those receipts to his tax return preparer or on his tax returns. Many of the checks he received from his customers were made payable to Richard personally, at his direction. Over the course of four years, Richard failed to report more than $2.1 million in business receipts on his tax returns, and thereby avoided paying taxes totaling about $353,246.
The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.
Operator of bogus charity pleads guilty to defrauding multiple companiesRead the Press Release
ATLANTA – Kai Brockington pleaded guilty in federal court to mail fraud and tax fraud for running a bogus charity that duped multiple large corporations into sending him hundreds of thousands of dollars.
“Brockington defrauded a number of companies that were seeking to better their communities through charitable donation matching programs,” said U. S. Attorney Byung J. “BJay” Pak. “Rather than using the money to provide healthcare for low- income individuals, he selfishly spent the money on himself and his family.
“Legitimate charities rely on the generosity of donors to carry out their humanitarian missions. Because of his audacity to seek personal benefit, Brockington’s undermined the benevolent intentions of every charity,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI hopes his upcoming sentencing will send a message to anyone with similar intentions.”
“It is our mission to deter the illegal use of the mail for any criminal activity,” said Craig Goldberg, Postal Inspector in Charge of the Denver District. “We are committed to working together with our law enforcement partners to bring to justice those who would attempt to mask their criminal activity through the use of the mail.”
“Conspiring to defraud the government with an elaborate scheme to falsify charitable deductions is unlawful,” stated Gabriel L. Grchan, Acting Special Agent in Charge of the IRS Criminal Investigation St. Paul Field Office. “Mr. Brockington’s plea serves as an important reminder that the U.S. Attorney's Office and IRS Criminal Investigation are committed to bringing to justice those who commit and undertake such fraudulent schemes. Corporate officials hold positions of trust not only in their companies, but also in the eyes of the public. IRS CI will do everything we can to hold individuals accountable to the same tax laws that they are subject to, ensuring that our tax system is fair to everyone."
According to U.S. Attorney Pak, the charges, and other information presented in court: Brockington was the primary operator of “Our Genesis Project,” a non-profit entity that supposedly provided healthcare to underprivileged recipients. In reality, Our Genesis Project never conducted actual charitable work. Beginning in 2013, Brockington caused employees of several large companies to falsely tell their employers that they had donated money to Our Genesis Project. These large companies had programs that permitted their employees to donate money to a charity and request that the company match those donations.
From 2013 through 2017, these large companies donated approximately $668,000 to Our Genesis Project through charitable matching programs. Instead of using the donations for charitable endeavors, Brockington spent the funds on himself and his family members to purchase jewelry, expensive clothing, trips to Italy and Disney World, as well as making renovations to his family home and paying for other living expenses.
During this time period, Brockington repeatedly filed false tax returns with the IRS. This included false federal income tax returns that failed to account for the money he was earning from this scheme, as well as charity returns that falsely claimed Our Genesis Project was donating these funds for community grants, community activities, and community expenses. Additionally, Brockington filed for personal bankruptcy in 2015 and failed to disclose the substantial sums of money he earned from this fraud scheme.
Kai Brockington, 36, of Dallas, Georgia, pleaded guilty on May 23, 2018 to mail fraud and willfully filing a false federal income tax return. His sentencing is scheduled for August 22, 2018.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case. Assistant U.S. Attorney Timothy C. Rank, of the District of Minnesota, provided invaluable assistance during the course of the investigation.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ocala Man Sentenced to 20 Years in Prison for Conspiracy to Traffic Methamphetamine and FentanylRead the Press Release
Ocala, Florida – Senior U.S. District Judge James D. Whittemore today sentenced Tirso Hernandez-Astudillo (35, Ocala) to 20 years in federal prison for conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine and possession with the intent to distribute 400 grams or more of fentanyl. A federal jury found him guilty on February 21, 2018. Also, co-conspirator Simon Rodriguez-Flores (48, Ocala) was sentenced to 11 years in federal prison for conspiracy to possess with intent to distribute 500 grams of more of methamphetamine. He pleaded guilty on February 7, 2018.
According to court documents, on May 24, 2017, in a parking lot in Ocala, Rodriguez-Flores sold approximately 4 ounces of crystal methamphetamine to a cooperating witness. On June 2, 2017, at the same location, Rodriguez-Flores delivered 2 kilograms of crystal methamphetamine to the same individual and was arrested by DEA agents. At the time of the incident, Hernandez-Astudillo was a passenger in Rodriguez-Flores’s car.
Immediately after the arrest, a search warrant was executed at the residence Hernandez-Astudillo shared with his cousin and co-defendant, Gilberto Astudillo-Carbajal (34, Ocala), during which agents recovered items used in the manufacture and packaging of crystal methamphetamine. From another trailer across the street, where Hernandez-Astudillo had been earlier in the day, agents recovered a suspicious package containing approximately 1 kilogram of an undetermined powdery substance. Subsequent analysis of the substance revealed that it contained fentanyl. The sentencing hearing for Astudillo-Carbajal has not yet been set.
This case was investigated by the Gainesville Resident Office of the Drug Enforcement Administration, assisted by task force officers from the Gainesville Police Department, the Alachua County Sheriff’s Office, the Ocala Police Department, the Levy County Sheriff’s Office, and the Union County Sheriff’s Office. The Marion County Unified Drug Enforcement Strike Team assisted in the execution of the search warrant and the arrests. The case is being prosecuted by Assistant United States Attorney Dale R. Campion.
Non-Indian Man from Albuquerque Sentenced for Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Daniel A. Mendoza, 21, a non-Indian man from Albuquerque, N.M., was sentenced today in federal court to 33 months in prison for assaulting a federally commissioned tribal police officer. Mendoza will be on supervised release for two years after completing his prison sentence.
The BIA arrested Mendoza on Nov. 22, 2016, for assaulting a federal officer based on his assault of an officer of the Pueblo of Isleta Tribal Police Department, who was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Mendoza assaulted the officer by running his vehicle into the officer’s vehicle while attempting to evade arrest. Mendoza committed the offense on Sept. 22, 2016, on the Isleta Pueblo in Bernalillo County, N.M.
Mendoza subsequently was indicted on Dec. 20, 2016, and was charged with assaulting a federal officer with a deadly and dangerous weapon, a vehicle, on Sept. 22, 2016, in Bernalillo County.
On Dec. 13, 2017, Mendoza pled guilty to the indictment and admitted that on Sept. 22, 2016, in order to avoid arrest, he backed his truck into an Isleta Pueblo Police patrol vehicle that was being operated by an Isleta Pueblo Police Sergeant who was commissioned as a Special Law Enforcement Officer by the BIA. Mendoza admitted intentionally driving his truck forward and reversing a second time at a high rate of speed into the Isleta Pueblo Police Sergeant’s patrol vehicle.
This case was investigated by the Pueblo of Isleta Tribal Police Department and the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Newport Man Sentenced to 150 Months for Conspiracy to Distribute Heroin and FentanylRead the Press Release
COVINGTON, Ky. – Frederick D. Lewis, 38, of Newport, Kentucky, was sentenced today to 150 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute heroin and fentanyl.
Lewis pled guilty, in February 2018, and admitted that he led a conspiracy of five or more people responsible for distributing more than 100 grams of heroin and more than 160 grams of fentanyl. Lewis was on federal supervised release, for a 2011 conviction for conspiracy to distribute crack cocaine, when he committed his new offense. The 150-month prison term includes a sentence of 30 months for violation of the terms of his supervised release.
Under federal law, Lewis must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for ten years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Robert Nader, Chief of the Covington Police Department, jointly made the announcement.
The investigation was conducted by the Covington Police Department and the Federal Bureau of Investigation’s Safe Streets Task Force. The United States was represented by Assistant United States Attorney Tony Bracke.
New York City Man Pleads Guilty to Trafficking Heroin, Fentanyl, Cocaine and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ambrose Wan, a/k/a “Ambrose Won,” a/k/a “Bruno,” 33, of New York, New York, pled guilty today in U.S. District Court to conspiracy to distribute heroin, fentanyl, cocaine and cocaine base, commonly known as “crack;” possession with the intent to distribute cocaine, crack and heroin; and possession with intent to distribute fentanyl, heroin and cocaine.
According to court records, between July and September 2017 Wan conspired with others to distribute the drugs in Central Maine. The drugs were obtained from sources in New York and distributed throughout Central Maine by a network of dealers. On September 6 and 28, 2017, police recovered drugs from two hotel rooms in Waterville intended for distribution by Wan and others.
The defendant faces between 10 years and life in prison, a $10,000,000 fine and between eight years and life on supervised release. Wan faces enhanced penalties by virtue of a prior conviction for a felony drug offense. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Waterville Police Department and the U.S. Drug Enforcement Administration, with the assistance from the Maine Drug Enforcement Agency, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Orleans Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that PATRICK SCHEXNAYDER, a/k/a “Pat,” a/k/a “Red,” age 27, of New Orleans, was charged on May 24, 2018 in a one-count Indictment with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
According to the Indictment, PATRICK SCHEXNAYDER was found in possession of a .45 caliber semi-automatic Beretta handgun on February 23, 2018. PATRICK SCHEXNAYDER had previously been convicted in Orleans Parish of a state-law felony.
If convicted, PATRICK SCHEXNAYDER faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department. Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne are in charge of the prosecution.
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New Orleans East Resident Indicted in Heroin-Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that ARTHUR JOHNSON, age 40, of New Orleans East, has been charged in a seven-count Indictment. The lead charge (Count 1) is a conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. If found guilty of this offense, JOHNSON faces a mandatory minimum sentence of ten years imprisonment, a maximum life sentence, a fine of up to $10,000,000, and at least five years of supervised release.
JOHNSON is also charged with five counts (Counts 2-6) of distributing a quantity of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). If found guilty of any of these offenses, JOHNSON faces a maximum sentence of twenty years in prison, a fine up to $1,000,000, and at least three years of supervised release.
Finally, JOHNSON is charged with one count (Count 7) of possessing with intent to distribute one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). If found guilty of this offense, JOHNSON faces a mandatory minimum sentence of ten years imprisonment, a maximum life sentence, a fine of up to $10,000,000, and at least five years of supervised release.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the FBI’s New Orleans Gang Task Force in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Navajo Man from Breadsprings, N.M., Sentenced to 15 Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Brian Lee, 31, an enrolled member of the Navajo Nation who resides in Breadsprings, N.M., was sentenced today in federal court in Albuquerque, N.M., to 15 years in prison for his conviction on child sexual abuse charges. Lee will be on supervised release for ten years after completing his prison sentence. He also will be required to register as a sex offender.
Lee was arrested on July 13, 2017, on a two-count indictment charging him with sexually abusing a child under the age of 12 on two separate occasions between July 2012 and July 2016, on the Navajo Indian Reservation in McKinley County, N.M.
On Sept. 18, 2017, Lee pled guilty to a two-count felony information charging him with aggravated sexual abuse and sexual abuse. In entering the guilty plea, Lee admitted that between July 2012 and July 2016, he engaged in sexual acts with the victim on two separate and distinct occasions at his home in Breadsprings on the Navajo Indian Reservation.
This case was investigated by the Gallup office of the FBI. Assistant U.S. Attorney Kyle T. Nayback prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Mortgage Loan Officer Sentenced for Role in Sweeping Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A mortgage loan officer was sentenced yesterday in federal court in Boston in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley.
Vanessa Ricci, 41, of Methuen, a mortgage loan officer, was sentenced to six months in prison, three years of supervised release and ordered to pay restitution of $963,730. In March 2018, Ricci pleaded guilty to one count of conspiracy to commit bank fraud.
Co-defendants Jasmin Polanco, 37, a real estate closing attorney, previously pleaded guilty to one count of conspiracy to commit bank fraud and is scheduled to be sentenced on June 21, 2018; Greisy Jimenez, 50, pleaded guilty to two counts of bank fraud and one count of conspiracy to commit bank fraud and is scheduled to be sentenced on June 6, 2018; Hyacinth Bellerose, 51, a real estate closing attorney, was sentenced in March 2017 to time served and one year of supervised release to be served in home detention after pleading guilty to conspiracy to commit bank fraud.
The charges arose out of a scheme to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen in which the purported sellers remained in their homes, with their debt substantially reduced. A short sale is a sale of real estate for less than the value of any existing mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender. Generally, the lender absorbs a loss on the loan and releases the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.
The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater” with homes worth less than the mortgage debt they owed. As part of the scheme, Jimenez, Polanco, Ricci, Bellerose and others submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales, thereby releasing the purported sellers from their unpaid mortgage debts, while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in their homes, with their debt substantially reduced.
The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties; in fact, the buyers and sellers were frequently related, and the sellers retained control of (and frequently continued to live in) the properties after the sale. The conspirators also submitted phony earnings statements in support of loan applications that were submitted to banks in order to obtain new financing for the purported sales. In addition, the defendants submitted phony “HUD-1 Settlement Statements” to banks that did not accurately reflect the disbursement of funds in the transactions. (HUD-1 Settlement Statements are standard forms that are used to document the flow of funds in real estate transactions. They are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)
United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program, made the announcement. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Economic Crimes Unit, and Assistant U.S. Attorneys Sara Miron Bloom and Victor A. Wild, also of the Economic Crimes Unit, prosecuted the cases.
Mishawaka Man ConvictedRead the Press Release
SOUTH BEND –Carlos Maez, age 40, of Mishawaka, Indiana was convicted of all counts, early evening on Wednesday, before District Court Judge Jon E. DeGuilio, announced U.S. Attorney Kirsch.
The jury convicted Maez on one count of armed bank robbery, one count of using a firearm during a crime of violence and one count of being a felon in possession of a firearm.
According to records in the case, on October 16, 2015, Maez robbed a bank located in South Bend using a firearm while having previous felony convictions.
This case was investigated by the FBI with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly and Frank E. Schaffer.
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Middlesex County, New Jersey, Man Sentenced to One Year in Prison for Stealing $184,936 in Social Security Benefits Paid to Deceased RelativeRead the Press Release
TRENTON, N.J. – A Perth Amboy, New Jersey, man was sentenced today to 12 months and one day in prison for stealing Social Security benefits that were mistakenly paid to his deceased great aunt, U.S. Attorney Craig Carpenito announced.
Lance D. Nelson, 56, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count 1 of an indictment charging him with theft of government funds. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Nelson’s great aunt received Social Security retirement benefits that were sent to a joint bank account that she shared with Nelson. The Social Security Administration, unaware of her death in February 1998, continued to issue her monthly retirement benefits.
Nelson admitted that he intentionally failed to notify the Social Security Administration of her death so that he could continue to receive her benefits, which he withdrew from their joint account and used for his personal benefit. In total, Nelson, who was employed as an assistant zoning officer for the City of Perth Amboy through the end of 2017, admitted that he took $184,936 in Social Security benefits to which he was not entitled.
In addition to the prison term, Judge Thompson sentenced Nelson to three years of supervised release and ordered him to pay restitution of $184,936.
U.S. Attorney Carpenito credited special agents with the Social Security Administration - Office of the Inspector General, under the direction of Special Agent in Charge John F. Grasso of the New York Field Division, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Microcap Company CEO Convicted of Securities Fraud for Falsely Claiming Millions in Revenue from Contracts with Foreign CountriesRead the Press Release
NEWARK, N.J. – The chief executive officer of a publicly traded microcap company was convicted at trial for orchestrating a multi-million securities fraud scheme using false reports with the U.S. Securities and Exchange Commission, U.S. Attorney Craig Carpenito announced today.
Cary Lee Peterson, 38, of Phoenix, Arizona, was found guilty of all three counts of an indictment charging him with two counts of false certification in SEC filings and one count of securities fraud. He was convicted following a two-week trial before U.S. District Judge Anne E. Thompson in Trenton federal court. The jury deliberated for approximately an hour before returning its verdict on May 23, 2018.
According to documents filed in this case and evidence presented at trial:
Peterson, as CEO of RVPlus Inc., filed numerous false reports with the SEC, including:
- On Aug. 21, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $1.8 billion with the Ministry of Environment for Katsina State within the Federal Republic of Nigeria to provide unspecified green energy products and services.
- On Nov. 16, 2013, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $90 million with the Commission of the Foreign Affairs to the Senate for the Republic of Haiti.
- On Dec. 21, 2012, Peterson falsely certified on Form 10-Q that RVPlus held $8,653,846 in short-term accounts receivable for services rendered under the Nigeria agreement, despite prior warnings from RVPlus’ auditors that reporting these receivables as revenue was improper.
- On Dec. 27, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $10.5 million with the Federal Ministry of Planning & Economic Affairs for the Republic of Liberia.
- On March 28, 2013, Peterson falsely certified on SEC Form 10-Q that RVPlus held $17,590,837 in short-term accounts receivable from, among other sources, the Haiti and Liberia agreements.
The SEC suspended trading in RVPlus on July 19, 2013, due to questions concerning the accuracy of RVPlus’ periodic financial filings, including reported accounts receivable, assets, and operations.
Peterson also claimed that ECCO2 Corp., a not-for-profit owned by Peterson was an “affiliate organization” of the U.N. Convention on Climate Change. Peterson claimed that “[t]his status held with the sectors of the United Nations opens many windows of opportunity to over $100 billion in financial aid to fund ECCO2 projects.” ECCO2 was never an affiliate of the U.N. Convention on Climate Change. In fact, the U.N. wrote to Peterson on two separate occasions demanding that ECCO2 stop claiming that it was.
The false certification counts each carry a maximum potential penalty of 10 years in prison and a $1 million fine. The securities fraud count carries a maximum penalty of 20 years in prison and $5 million fine. Sentencing will be scheduled at a later date.
The SEC has a pending civil complaint against Peterson in New Jersey federal court alleging multiple counts of securities fraud.
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 FBI special agents under the direction of Special Agent in Charge John F. Bennett in San Francisco for their assistance with Peterson’s arrest, and the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Marc P. Berger and Senior Associate Regional Director Sanjay Wadhwa, for its assistance.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Criminal Division and Executive Assistant U.S. Attorney Zach Intrater.
Defense counsel: Eric J. Marcy Esq., Woodbridge, New Jersey
- On Aug. 21, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $1.8 billion with the Ministry of Environment for Katsina State within the Federal Republic of Nigeria to provide unspecified green energy products and services.
Men Plead Guilty for Roles in Bi-Coastal Marijuana Distribution RingRead the Press Release
COLUMBIA –Jeremy David Grove, 30, Tyler James Durney, 36, both of Greenville, and Jaspal Singh Grewall, 40, of Anaheim, California, have all pleaded guilty in federal court for their roles in a marijuana distribution conspiracy operating between the East Coast and California. On December 12, 2017, the men were charged in a seven-count indictment with conspiracy to distribute marijuana, in violation of Title 21 U.S.C. Section 846, conspiracy to launder drug proceeds, in violation of Title 18 U.S.C. Section 1956(h) and conspiracy to structure financial transactions, in violation of Title 18 U.S.C. Section 371.
The men devised multiple schemes to pay for and to transport the California sourced high-grade marijuana to South Carolina for distribution, including the United States Postal Service and commercial carriers. According to the indictment, beginning in November 2014, the defendants deposited hundreds of thousands of dollars in drug proceeds into “funnel” bank accounts, in amounts at or under $10,000. The indictment alleges the transactions were designed to circumvent the bank’s reporting requirements and conceal the nature of the transactions and source of the money. During the plea hearings, the defendants admitted using multiple bank accounts in a coordinated manner to funnel the illicit bulk currency from South Carolina for immediate withdrawal in California.
As part of his plea agreement, Grewall has agreed to forfeit to the government $500,000 in cash plus property located in Vista, California. The maximum penalties for the defendants range from 5 to 20 years imprisonment, depending on the offense(s) of conviction. All three defendants await sentencing.
The investigation was conducted by the United States Marshals Service, the Federal Bureau of Investigation and the Greenville City Police Department. The case is being prosecuted by Assistant United States Attorney Leesa Washington.
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Mary Elgin Sentenced to PrisonRead the Press Release
HAMMOND – Mary Elgin, 73, of Gary, Indiana was sentenced before U.S. District Court Judge Joseph S. Van Bokkelen to 12 months and 1 day in prison and ordered to pay $21,311 in restitution, announced U. S. Attorney Kirsch.
Elgin entered a plea of guilty to 2 counts of wire fraud, 1 count of conspiracy to commit wire fraud and 1 count of willful failure to file a tax return in April of 2017.
According to documents in this case, Ethel Shelton was convicted of two federal criminal conspiracy charges after a 10-day jury trial and is awaiting sentencing. Co-defendant, Alex Wheeler was found not guilty during the same trial. Elgin’s son, Steven Hunter plead guilty to 2 counts of wire fraud and 1 count of conspiracy to commit wire fraud in April of 2017 and is awaiting sentencing. Elgin created an environment whereby employees believed that retaining their jobs hinged on purchasing tickets to her political fundraising events. She used the resources of Calumet Township Trustee’s Office to further her campaign rather than the way they were intended. The Calumet Township Trustee’s Office is a local government entity whose primary mission is to provide emergency relief and assistance to needy individuals and families.
U.S. Attorney Kirsch said, “Public corruption cannot and will not be tolerated at any level. Today’s sentence of imprisonment should send a strong message of deterrence. Citizens expect and deserve officials to act in the best interest of the public, free from self-dealing and illegal self-enrichment. My office, together with our law enforcement partners, will continue to pursue matters involving public corruption. I encourage anyone with information concerning corrupt public officials to contact my office or the FBI.”
This case was investigated by the Federal Bureau of Investigation with the assistance of Internal Revenue Service. This case was prosecuted by Assistant United States Attorneys Maria Lerner, Abizer Zanzi and Philip Benson.
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Manchester Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - William Looney, 55, of Manchester, pleaded guilty in federal court to a fentanyl trafficking charge, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in July 2017, the Manchester Police Department received information that Looney was driving from New Hampshire to Massachusetts to purchase large quantities of drugs. On July 28, 2017, law enforcement officers observed Looney travel from Manchester to Massachusetts. When he returned to Massachusetts, officers conducted a traffic stop of a vehicle operated by Looney, who was the subject of an outstanding arrest warrant. In the center console of the vehicle was a package containing approximately 285 grams of fentanyl.
Looney pleaded guilty to one count of possession of 40 grams or more of fentanyl with intent to distribute. He is scheduled to be sentenced on August 30, 2018.
“Fentanyl is a deadly drug that is threatening the safety of our community,” said U.S. Attorney Murray. “The U.S. Attorney’s Office continues to work closely with our law enforcement partners to investigate and prosecute those who are distributing this dangerous substance in New Hampshire. I am grateful to the law enforcement officers who successfully prevented this significant amount of fentanyl from being distributed in the Granite State.”
This matter was investigated by the Manchester Police Department, with assistance from the New Hampshire State Police and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Shane Kelbley.
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Man Who Had Pipe Bombs in Downtown Denver Hotel Pleads GuiltyRead the Press Release
DENVER – Adam Nauveed Hayat, age 36, of Denver, Colorado, pled guilty yesterday before U.S. District Court Judge R. Brooke Jackson to three counts of possessing unregistered firearms, after being caught possessing pipe bombs in Downtown Denver hotel, U.S. Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers, ATF Denver Field Division Special Agent in Charge Debbie Livingston and Denver Police Department Chief Robert White announced. Hayat was charged by criminal complaint on February 16, 2017, and was subsequently indicted by a federal grand jury on March 15, 2017. He pled guilty to an Information today. The defendant, who appeared at the change of plea hearing in custody, was remanded at its conclusion. He is scheduled to be sentenced by Judge Jackson on August 14, 2018.
According to court documents, on February 15, 2017, personnel from the Sheraton Hotel located at 1550 Court Place contacted the Denver Police Department to report a suspicious incident. Upon arriving, the Denver Police Department (DPD) went to room 1902 and found the word “explosives” written on the closet door mirror. The officer then opened the closet, opened the safe, and found a closed ammunition case. Also found in the hotel room were several metal pipes and empty rifle shell casings. The DPD officer immediately contacted their bomb squad. The DPD Bomb Squad carefully examined the ammunition case and found pipe bombs. The Bomb Squad safely removed the ammunition case from the hotel room and transported it to their bomb range, where they rendered it safe.
It was determined during the course of the investigation that Adam Nauveed Hayat rented room 1902 at the downtown Denver Sheraton Hotel. An arrest warrant was issued first by the Denver Police Department and then later by federal authorities. He was located and arrested at a hotel near the Los Angeles International Airport.
This case was investigated by the FBI, ATF, and the Denver Police Department. The Los Angeles Police Department, as well as personnel from the FBI and ATF Los Angeles were involved in the arrest.
The defendant is being prosecuted by Assistant U.S. Attorney Judith Smith, Chief of the Cybercrime and National Security Section and Assistant U.S. Attorney Julia Martinez.
Man Sentenced for Sex Trafficking of a MinorRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today that United States District Judge Louise W. Flanagan sentenced KENNETH CORVON WARD, 39, of Wilson, North Carolina, in a sex trafficking case. WARD was sentenced to 160 months’ imprisonment followed by 5 years of supervised release. On April 11, 2017, WARD pled guilty to Sex Trafficking of a Minor and Aiding and Abetting from May 30, 2015, to December 5, 2015.
In December 2015, the Federal Bureau of Investigation (FBI) and the Raleigh Police Department (RPD) investigated the sex trafficking of a minor. Agents identified a minor female (Victim) who was reportedly being sexually exploited by several individuals. The investigation revealed that William Maurice Saddler, previously convicted by a federal jury on November 30, 2017, began an illicit dating relationship with the Victim while she was thirteen or fourteen years old. Around 2015, when the Victim was fifteen years old, Saddler forced her to prostitute at migrant camps around Wilson, North Carolina. Among other tactics, Saddler used violence, fear, and manipulation to force the Victim to continue prostituting to support Saddler’s crack cocaine habit.
WARD was identified as Saddler’s crack supplier. Shortly after WARD and his girlfriend Yadyra Brown met the Victim around late September or early October 2015, they began prostituting her. WARD and Brown promoted the fifteen-year-old Victim by posting multiple advertisements of her on Backpage.com (Backpage). WARD and Brown took multiple photographs of the Victim for the advertisements posted on Backpage. WARD kept the money the Victim earned.
On December 5, 2015, the RPD determined that WARD and Brown were prostituting the Victim in a hotel in Garner, North Carolina. The RPD and FBI executed an operation to rescue the Victim. They found her there with Brown; WARD was observed at the hotel but fled and was later arrested.
Mr. Higdon commented: “I want to thank agents of the FBI and NCSBI and officers of the Raleigh Police Department, the Wilson Police Department and the Wilson County Sheriff’s Department for their hard work and for their commitment to fighting those who would traffic our children. This case represents just how low some among us will go to victimize others, for personal gain and for profit. Today’s 13-plus year sentence is a small comfort for the young victim but it should send a message to those who victimize our children that we will not allow it.”
Investigation of this case was conducted by the Federal Bureau of Investigation, the Raleigh Police Department, the N.C. State Bureau of Investigation, the Wilson Police Department and the Wilson County Sheriff’s Office. Assistant United States Attorneys Erin C. Blondel and Eleanor Morales represented the United States.
Lumberton Man Sentenced for Possession of a Stolen Firearm and Felon in Possession ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Chief United States District Judge James C. Dever, III sentenced MARVIN EARL BLANKS, JR., 33, of Lumberton, North Carolina, to 84 months imprisonment followed by 3 years of supervised release.
BLANKS was named in a two-count Indictment on June 15, 2017 charging him with one count of Possession of Stolen Firearms and one count of Possession of a Firearm by a Felon. On December 21, 2017, BLANKS pled guilty to those charges.
On August 12, 2016, officers of the Elizabethtown Police Department took a report as to the theft of a .38 caliber Taurus firearm. The victim advised that he had a vehicle washed earlier in the day at The Car Wash in Elizabethtown, North Carolina, and his firearm had been in the vehicle’s center console. When he looked in the center console that evening, the firearm was no longer there. Officers interviewed employees that had washed the vehicle, including BLANKS. BLANKS denied taking a firearm.
On September 8, 2016, officers with the Lumberton Police Department responded to a robbery call. The victim informed officers that he had been walking from church to the Shop & Save convenience store to get a soda when a group of individuals began yelling at him from a parking lot. On his way back to the church after visiting the store, two individuals, one later identified as BLANKS, approached the victim and began asking questions. BLANKS then pointed a gun at the victim. The victim attempted to run, but BLANKS and his accomplice caught the victim and pushed him to the ground. BLANKS pointed the gun to the victim’s head while the other man took the victim’s cellphone and money. After the robbery, the victim called 911 from the church. He advised law enforcement that he had been robbed and that he had seen BLANKS walk into the Shop & Save.
Lumberton Police Officers responded and located BLANKS inside the convenience store based on the victim’s description. Officers ordered BLANKS to place his hands on the counter and initiated a search. In BLANKS’ pocket, they found the victim’s stolen cell phone and a .38 caliber Taurus. Law enforcement transported the victim to the store, and the victim positively identified BLANKS as the one who robbed him. The Taurus handgun was identified by serial number as the same one stolen from The Car Wash on August 12, 2016, less than a month before the robbery.
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.
The investigation of this case was conducted by the Elizabethtown Police Department, the Lumberton Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Jake D. Pugh handled the prosecution of this case for the government.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for illegally possessing a firearm.
Bryan Abascal, 25, of Kansas City, was sentenced by U.S. District Judge Beth Phillips on Wednesday, May 23, 2018, to 15 years in federal prison without parole. Abascal was sentenced as an armed career offender due to his prior felony convictions.
On July 10, 2017, Abascal pleaded guilty to being a felon in possession of a firearm. When Abascal was arrested during a traffic stop, a Kansas City police officer searched his vehicle and found a Bersa .380-caliber semi-automatic handgun with an extended clip magazine loaded into it.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition. Abascal has two prior felony convictions for sale of a controlled substance and three prior felony convictions for domestic assault.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jamaican Man Sentenced to 51 Months’ Imprisonment on “Sweepstakes Fraud” Charges Targeting Senior CitizensRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tackya Whyte, age 41, a Jamaican citizen who formerly resided in Richmond, Virginia, was sentenced today to 51 months’ imprisonment and to serve two years’ supervised release by United States District Court Judge John E. Jones, III, for his role in an international “sweepstakes scam” that defrauded seven American victims out of $459,881.
According to United States Attorney David J. Freed, Whyte pled guilty on August 28, 2017, to one count of mail fraud pursuant to a plea agreement with the government. Whyte and unidentified fraudsters perpetrated a scheme that defrauded at least seven U.S. senior citizens, including at least one victim who resided in the Middle District of Pennsylvania. The victims were falsely told they had won multi-million dollar international sweepstakes prizes. The purported winners were directed to send Western Union and MoneyGram money transfers payable to Whyte, and others, to pre-pay taxes and other fictitious expenses in order to collect the non-existent cash prizes. Whyte then re-transferred a portion of the fraud proceeds to conspirators in Jamaica, thereby serving as a “money mule” for the fraudsters.
During the sentencing hearing, Judge Jones noted Whyte and his co-conspirators deliberately preyed upon the elderly and that most of the victims had suffered substantial financial hardship as a result of the scam. Five of the victims were in their 80’s, one was 74, and the youngest was 68. Many lost their life savings and retirement accounts. One victim lost $171,379, another lost her home to foreclosure, and a third had her electricity turned off during the winter months.
Judge Jones also ordered Whyte to pay $459,881 in restitution to the victims.
The case was investigated by the Harrisburg Office of the United States Postal Inspection Service. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
The United States Attorney and United States Postal Inspectors remind all citizens that they should never make an advance payment of any kind on the promise of a sweepstakes prize, loan, job or grant.
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Hawaiian Fishing Companies, Managers, and Operators Will Perform Corrective Measures and Pay Civil Penalties to Address Illegal Ocean PollutionRead the Press Release
Two Honolulu-based fishing companies, Triple Dragon, LLC, and Capt. Millions III, LLC, along with the company managers and vessel operators, have each agreed to implement operational improvements and other compliance measures and pay civil penalties to settle claims stemming from numerous discharges of oily bilge waste from the commercial fishing vessels Triple Dragon and Capt. Millions III, the Department of Justice and Coast Guard announced today.
In two separate complaints, filed in the U.S. District Court for the District of Hawaii today and on April 27, 2018, along with notices of lodging of consent decrees filed today, the United States alleges that the vessel owners, company managers, and vessel operators are each liable for civil penalties under the Clean Water Act for discharging oily mixtures into the waters off Hawaii. Both complaints also include civil penalty claims under the Clean Water Act for violations of the Coast Guard’s spill prevention and pollution control regulations, including failure to provide sufficient capacity to retain oily mixtures on board. The complaints further allege that in order to extend the length of the Triple Dragon’s and Capt. Millions III’s fishing voyages, the defendants routinely pumped a mixture of fuel oil, lubricating oils, water, and other fluids from the vessels’ engine room bilges into the Pacific Ocean rather than retain the waste on board.
To resolve the claims in the United States’ complaints, the consent decrees require the companies and vessel operators to perform corrective measures, including: (1) repairing the vessels to reduce the quantity of oily waste generated during a fishing voyage; (2) providing crewmembers with training on the proper handling of oily wastes; (3) documenting proper oily waste disposal after returning to port; and (4) submitting compliance reports to the Coast Guard and the Department of Justice.
Additionally, the consent decrees require each vessel owner, company manager, and vessel operator to pay a civil penalty. For the discharges from the Triple Dragon, the vessel owner, Triple Dragon, LLC, must pay a civil penalty of $15,000; the company manager, Trung Anh Quach, must pay a civil penalty of $10,000; and the vessel operator, Aukusitino Lui Maui, must pay a civil penalty of $500. For the discharges from the Capt. Millions III, the vessel owner, Capt. Millions III, LLC, must pay a civil penalty of $10,000; the company manager, Brian Nguyen, must pay a civil penalty of $5,000; and the vessel operator, Kha Van, must pay a civil penalty of $7,000. These penalty amounts were set considering each defendant’s limited ability to pay a higher penalty, as demonstrated through documentation submitted to the United States and analyzed by a financial expert.
“Law-abiding vessel owners and operators know the importance of complying with our Nation’s environmental laws,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Members of the fishing fleet who disregard those laws put the public’s health and our Nation’s natural resources in jeopardy. The Justice Department and Coast Guard will continue to work together to hold companies and individuals who violate the Clean Water Act accountable.”
“All vessels, including commercial fishing vessels like these, must comply with the long-standing Clean Water Act environmental protection requirements as part of their normal operations," said Rear Adm. Brian Penoyer, Commander, Coast Guard 14th District. "As a steward of the marine environment, the Coast Guard will not tolerate illegal dumping of oily waste into the ocean."
“These settlements will serve to protect Hawaii’s citizens and our state’s unique natural resources,” said United States Attorney for the District of Hawaii Kenji M. Price. “Those who pollute the ocean should know that we will continue to vigorously pursue and prosecute these types of violations to the fullest extent of the law.”
Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. Under the act, the Coast Guard also has promulgated spill prevention and pollution control regulations for vessels and other facilities. Overboard discharges of oily mixtures, whether by directly pumping out oily bilge water that has not been properly treated, or by attempting to pump only the portion of the oily bilge water beneath a floating oil layer in the bilge (so-call “decanting”), has long been unlawful under federal law. Eliminating oil discharges into the ocean helps protect people, birds, fish, marine mammals, sea turtles, and other natural resources.
Under the terms of the Clean Water Act, the penalty paid for these discharges will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decrees, lodged in the District of Hawaii, are subject to a 30-day public comment period and court review and approval. Copies of the consent decrees are available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Hawaiian Fishing Companies, Managers, and Operators Will Perform Corrective Measures and Pay Civil Penalties to Address Illegal Ocean PollutionRead the Press Release
HONOLULU — Two Honolulu-based fishing companies, Triple Dragon, LLC, and Capt. Millions III, LLC, along with the company managers and vessel operators, have each agreed to implement operational improvements and other compliance measures and pay civil penalties to settle claims stemming from numerous discharges of oily bilge waste from the commercial fishing vessels Triple Dragon and Capt. Millions III, the Department of Justice and Coast Guard announced today.
In two separate complaints, filed in the U.S. District Court for the District of Hawaii today and on April 27, 2018, along with notices of lodging of consent decrees filed today, the United States alleges that the vessel owners, company managers, and vessel operators are each liable for civil penalties under the Clean Water Act for discharging oily mixtures into the waters off Hawaii. Both complaints also include civil penalty claims under the Clean Water Act for violations of the Coast Guard’s spill prevention and pollution control regulations, including failure to provide sufficient capacity to retain oily mixtures on board. The complaints further allege that in order to extend the length of the Triple Dragon’s and Capt. Millions III’s fishing voyages, the defendants routinely pumped a mixture of fuel oil, lubricating oils, water, and other fluids from the vessels’ engine room bilges into the Pacific Ocean rather than retain the waste on board.
To resolve the claims in the United States’ complaints, the consent decrees require the companies and vessel operators to perform corrective measures, including: (1) repairing the vessels to reduce the quantity of oily waste generated during a fishing voyage; (2) providing crewmembers with training on the proper handling of oily wastes; (3) documenting proper oily waste disposal after returning to port; and (4) submitting compliance reports to the Coast Guard and the Department of Justice.
Additionally, the consent decrees require each vessel owner, company manager, and vessel operator to pay a civil penalty. For the discharges from the Triple Dragon, the vessel owner, Triple Dragon LLC, must pay a civil penalty of $15,000; the company manager, Trung Anh Quach, must pay a civil penalty of $10,000; and the vessel operator, Aukusitino Lui Maui, must pay a civil penalty of $500. For the discharges from the Capt. Millions III, the vessel owner, Capt. Millions III, LLC, must pay a civil penalty of $10,000; the company manager, Brian Nguyen, must pay a civil penalty of $5,000; and the vessel operator, Kha Van, must pay a civil penalty of $7,000. These penalty amounts were set considering each defendant’s limited ability to pay a higher penalty, as demonstrated through documentation submitted to the United States and analyzed by a financial expert.
“Law-abiding vessel owners and operators know the importance of complying with our Nation’s environmental laws,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Members of the fishing fleet who disregard those laws put the public’s health and our Nation’s natural resources in jeopardy. The Justice Department and Coast Guard will continue to work together to hold companies and individuals who violate the Clean Water Act accountable.”
“All vessels, including commercial fishing vessels like these, must comply with the longstanding Clean Water Act environmental protection requirements as part of their normal operations," said Rear Adm. Brian Penoyer, Commander, Coast Guard 14th District. "As a steward of the marine environment, the Coast Guard will not tolerate illegal dumping of oily waste into the ocean."
“These settlements will serve to protect Hawaii’s citizens and our state’s unique natural resources,” said United States Attorney for the District of Hawaii Kenji M. Price. “Those who pollute the ocean should know that we will continue to vigorously pursue and prosecute these types of violations to the fullest extent of the law.”
Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. Under the act, the Coast Guard also has promulgated spill prevention and pollution control regulations for vessels and other facilities. Overboard discharges of oily mixtures, whether by directly pumping out oily bilge water that has not been properly treated, or by attempting to pump only the portion of the oily bilge water beneath a floating oil layer in the bilge (so-call “decanting”), has long been unlawful under federal law. Eliminating oil discharges into the ocean helps protect people, birds, fish, marine mammals, sea turtles, and other natural resources.
Under the terms of the Clean Water Act, the penalty paid for these discharges will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decrees, lodged in the District of Hawaii, are subject to a 30-day public comment period and court review and approval. Copies of the consent decrees are available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Hastings Man Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on May 24, 2018, Francisco Diaz Vargas, 22, of Hastings, Nebraska, was sentenced to three years and one month (37 months) in prison for distribution of five grams or more of methamphetamine actual. Following the prison term, Diaz Vargas will serve three years on supervised release.
On July 19, 2016, a confidential informant met with Diaz Vargas in Hastings, Nebraska, and purchased at least six grams of actual (pure) methamphetamine. On July 21, 2016, Diaz Vargas sold an additional 23 grams of actual methamphetamine to the same confidential informant.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Hartford Man Pleads Guilty to Selling Heroin and Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOSE GONZALEZ, also known as “Montana,” “Beat Montana” and “Carl Montana,” 22, of Hartford, pleaded guilty yesterday in Hartford federal court to one count possession with intent to distribute, and distribution of, heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, at approximately 10:30 a.m., on April 26, 2017, East Hartford Police and emergency medical personnel were dispatched to a residence on Main Street in East Hartford on a report of an unconscious male who was not breathing. First responders located 20-year-old male on the couch in the living room and pronounced him deceased. At the scene, investigators located and collected drug paraphernalia, several empty wax baggies, and the victim’s cellphone.
The Office of the Chief Medical Examiner subsequently determined that the victim’s death was caused by “acute intoxication due to the combined effects of alprazolam, fentanyl and heroin.”
The investigation, which has included witness interviews and analysis of the victim’s cellphone, revealed that the victim traveled to Hartford the night before his death and purchased heroin/fentanyl from GONZALEZ. Analysis of another individual’s cellphone revealed that GONZALEZ sold heroin and fentanyl from at least December 2016 through April 2017.
GONZALEZ was arrested on a federal criminal complaint on November 30, 2017.
GONZALEZ is scheduled to be sentenced by U.S. District Judge Michael P. Shea on August 15, 2018, at which time he faces a maximum term of imprisonment of 20 years. He has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration’s Hartford Task Force, East Hartford Police Department and Monroe Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Greenville Man Sentenced to 5 Years Imprisonment for Being a Felon in Possession of Firearm and AmmunitionRead the Press Release
Columbia, South Carolina ---- Napoleon Isaac Mansell, age 35, of Greenville, South Carolina, was sentenced to 60 months imprisonment, followed by 3 years of supervised release, after pleading guilty to being a felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(1). United States District Judge Bruce Howe Hendricks of Greenville sentenced Mansell on May 23, 2018.
At an earlier guilty plea hearing, Assistant U. S. Attorney Jeanne Howard, established that on March 1, 2016, Greenville County Sheriff’s Deputies executed a search warrant at Mansell’s residence on Old Buncombe Road. The deputies found a .380 caliber firearm and ammunition inside Mansell’s residence. Because of his prior criminal history, including felony convictions for distribution of crack cocaine and pointing and presenting a firearm, Mansell is prohibited from possessing a firearm and ammunition.
The case was investigated by agents of the Safe Street Task Force of the FBI, Greenville County Sheriff’s Office, and ATF and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Jeanne Howard of the Greenville office handled the case.
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Granite Bay Man Indicted for Illegal Firearm PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Tamaran Edward Bontemps, 20, of Granite Bay, charging him with possessing a firearm as a felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 18, 2018, law enforcement officers stopped a group of four men in Vallejo after officers noticed a gun-shaped object in one of the men’s clothing. The officers found a 9 mm handgun in the first man’s sweater. During the encounter, one of the officers also saw an object inside Bontemps’ sweatshirt that the officer believed was a gun. Officers searched Bontemps and located a .40 caliber pistol holstered inside Bontemps’ sweatshirt. Bontemps cannot lawfully possess firearms or ammunition because he has previously been convicted of a felony offense.
This case is the product of an investigation by the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force and the Vallejo Police Department.
If convicted, Bontemps faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Goldsboro Man Sentenced to More Than 21 Years for Hobbs Act Robbery and Gun ChargeRead the Press Release
NEW BERN – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced that today, DEVON WATERS, 38, of Goldsboro, was sentenced by United States District Judge Louise W. Flanagan to 261 months’ imprisonment followed by 5 years of supervised release.
WATERS was named in a three-count indictment on March 7, 2017. On November 14, 2017, WATERS pled guilty to Conspiracy to Commit Interference with Commerce by Robbery and Discharging a Firearm during and in relation to a Crime of Violence and Aiding and Abetting.
On May 9, 2016, WATERS and codefendant O’Brien Shaquille Hooker, who pled guilty and was previously sentenced to 166 months of imprisonment followed by 5 years of supervised release, committed an armed robbery at a Family Dollar located in Goldsboro, North Carolina. The men forced two employees, who were closing the business, into the store at gunpoint. Hooker brandished a firearm and ordered the employees onto the floor. WATERS then ordered one of them to open the safe. When she had difficulty, WATERS took the firearm from Hooker, fired a shot at her feet, and threatened to kill her. WATERS and Hooker stole currency totaling $800 and cigarettes. Seeing a Goldsboro Police Department (GPD) vehicle pull into the parking lot, the defendants forced an employee at gunpoint to the rear of the business, where they exited. As they fled, they fired additional shots at the pursuing officer.
WATERS and Hooker fled the scene in a vehicle driven by a third person. The vehicle drove to a residential neighborhood, where WATERS and Hooker jumped out of the vehicle and fled on foot. A GPD Officer with the K9 unit found and arrested them in a nearby backyard.
Mr. Higdon commented: “Today the Court imposed a sentence of more than 20 years on an offender who thought so little of human life that he shot at an innocent store clerk and at members of our law enforcement community over $800 and some cigarettes. This sentence should be a warning to those who would commit violent acts that we will pursue you and we will see you removed from the communities you are victimizing and terrorizing. We will ‘Take Back North Carolina’ from the violent criminals.”
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.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The case was investigated by the Goldsboro Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Georgia Man Convicted of Attempted Enticement and Traveling to Have Sex with a MinorRead the Press Release
TALLAHASSEE, FLORIDA – Yesterday afternoon after a two and a half day trial, Frantisek Pribyl, 48, of Snellville, Georgia, was convicted in the U.S. District Court in Tallahassee of attempted enticement of a minor and travel with intent to engage in illicit sexual conduct. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2017, undercover investigators conducted “Operation Cupid’s Arrow” to identify individuals seeking to engage in sexual activity with minors. Pribyl responded to a Craigslist advertisement in which an undercover officer posed as the mother of a 14-year-old girl and then as the daughter. Over two days, Pribyl continued his conversation with the “girl” via e-mail, discussed sexual activity with her over e-mail and during a controlled telephone call, and traveled more than 250 miles to Tallahassee to meet her to have sex. Pribyl was arrested after arriving at the designated meeting location.
For the attempted enticement charge, Pribyl faces a minimum of 10 years and a maximum of life in prison. For traveling to have sex with a minor, Pribyl faces a maximum of 30 years in prison. The sentencing hearing is scheduled for September 14, 2018, at 9:30 a.m. at the United States Courthouse in Tallahassee.
The case was investigated by the Florida Department of Law Enforcement, the Panama City Police Department, the United States Immigration and Customs Enforcement Homeland Security Investigations, the U.S. Marshals Service, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fort Worth Man Convicted of Health Care Fraud SchemeRead the Press Release
FORT WORTH, Texas — Yesterday, following a two-day trial, a federal jury convicted David Williams, 54, of Fort Worth, Texas on four counts of Healthcare Fraud, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Each healthcare fraud count carries a statutory penalty of 10 years in federal prison and a $250,000 fine. Williams is scheduled to be sentenced by U.S. District Judge Reed O’Connor on August 27, 2018.
According to evidence presented at trial, between November 2012 through August 2017, Williams advertised on his website, getfitwithdave.com that he offered in-home fitness training and therapy through his company, “Kinesiology Specialists.” Williams identified himself as “Dr. Dave” and stated that he served clients in most of Texas, Las Vegas, Denver, Tucson, Seattle, and Orlando. Through his website, Williams told potential clients that he was accepting most health care insurance coverage plans.
In order to bill insurance companies for his services, Williams registered as a health care provider with the Centers for Medicare and Medicaid Services. In completing the application, Williams falsely certified that he was a health care provider. Williams enrolled as a health care provider at least twenty times under different names or variations of his name and his company names and falsely certified that he was a health care provider in each application. Williams would then bill the insurance companies as if he were a medical physician and as if he had provided care requiring medical decision making of high complexity when Williams actually provided fitness and exercise training to his clients.
Williams recruited potential clients through the use of flyers, the internet, and word-of-mouth, according to evidence presented at trial. Once recruited, Williams would typically meet with or speak with the new client over the phone and review their health history and goals for their planned fitness training. Williams would then typically assign a personal trainer to that individual. The personal trainer typically met with the client between one and three times a week for approximately one hour and provided fitness training. Williams would then bill insurance companies for each training session using inaccurate codes and on certain occasions, billed for services that neither he nor his staff, ever provided.
Between November 2012 through August 2017, Williams was paid in excess of $3.9 million in relation to his fraudulent billing of United HealthCare Services, Inc., Aetna, Inc., and Cigna.
The Federal Bureau of Investigation investigated the case jointly with the Texas Department of Insurance, Fraud Unit. Assistant U.S. Attorneys P.J. Meitl and Nicole Dana prosecuted.
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Fort Lauderdale Resident Sentenced to over 21 Years in Prison for Being a Felon in Possession of Firearms and Ammunition and Distributing Crack CocaineRead the Press Release
A Fort Lauderdale resident was sentenced yesterday to over 21 years in prison for being a felon in possession of a firearm and ammunition, and distributing crack cocaine.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
On March 14, 2018, John Edward Bradham, 50, of Fort Lauderdale, was convicted by a trial jury of distribution of crack cocaine and being a felon in possession of two firearms and ten rounds of ammunition. Yesterday, United States District Judge William P. Dimitrouleas ruled that Bradham was an armed career criminal and sentenced him to 240 months in prison for distribution of crack cocaine, to run concurrent to 262 months in prison for the unlawful possession of firearms and ammunition convictions.
According to the court record, including evidence presented at trial and sentencing, on October 17, 2017, Bradham unlawfully sold a Ruger .380 caliber semiautomatic pistol, loaded with five rounds of ammunition, and crack cocaine. Later the same day, law enforcement arrested Bradham and executed a search warrant at his storage unit, where they recovered a second firearm, a Smith & Wesson .357 caliber revolver that was loaded with five rounds of ammunition. At the time of the criminal conduct, Bradham was a convicted felon and thereby prohibited from possessing firearms and ammunition.
Mr. Greenberg commended the investigative efforts of ATF and Fort Lauderdale Police Department in this matter. This case was prosecuted by Assistant United States Attorney William T. Shockley.
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.
Former Roman Catholic High School Intern Sentenced to 5 Years in Prison for Transporting Child PornographyRead the Press Release
PHILADELPHIA - Kevin Budianto, 24, of Philadelphia, PA, was sentenced today by U.S. District Judge Gerald A. McHugh to five years imprisonment, following his guilty plea to one count of transportation and one count of possession of child pornography, announced United States Attorney William M. McSwain. In addition, the defendant was sentenced to 10 years’ supervised release and fined $25,000.
According to court papers, Budianto, who worked at a Roman Catholic High School as an intern in 2013 after having graduated from the school in 2012, was apprehended based on two tips from Instagram, a social media platform on which Budianto posted child pornography images. Investigators thereafter determined that Budianto’s computer contained hundreds of images and videos of child pornography depicting prepubescent children, including images of sadistic and masochistic abuse.
“The images in the defendant’s possession were horrific,” said U.S. Attorney McSwain. “There simply can be no tolerance or leniency for those who exploit children. In this case, and in others like it, a significant term of incarceration is appropriate and necessary.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Office of the Attorney General, and the Delaware County Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Former Prince George’s County Liquor Board Official Sentenced to Five Years in Prison for Conspiracy, Bribery, and Obstruction of JusticeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paula Xinis sentenced former Prince George’s County Liquor Board official David Dae Sok Son, age 41, of Bowie, Maryland, to five years in prison, followed by three years of supervised release for conspiracy, bribery, and obstruction of justice, in a scheme involving alcoholic beverage licenses in Prince George’s County, Maryland. The defendant also was ordered to forfeit $86,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service – Criminal Investigation; and Chief Henry Stawinski III of the Prince George’s County Police Department.
According to his plea agreement, Son was a Commissioner on the Prince George’s County Board of License Commissioners (“Liquor Board”) from 2005 through 2014. During the 2015 Maryland legislative session, Son served as a liaison to the Prince George’s County Senate delegation. He returned to the Liquor Board later in 2015, as its Administrator and then as Chief Liquor Inspector.
As described in the plea agreement and other court documents, Son solicited and facilitated bribes from lobbyists and business owners, including co-conspirators Young Jung Paig and Shin Ja Lee. The bribe recipients were elected state officials, including then-County Councilman and Delegate William Alberto Campos-Escobar (a/k/a “Will Campos”) and then-Delegate Michael Vaughn.
For example, during a meeting on April 4, 2014, Son informed an FBI Confidential Human Source (“CHS”) that Campos needed $10,000 to pay an expense related to Campos’s campaign for Maryland State Delegate. Son told the CHS that Son had spoken with Campos about the CHS giving cash to Campos in exchange for Campos arranging for another County grant to be awarded to a non-profit organization selected by the CHS.
On or about April 9, 2014, Son told the CHS that Son had told Campos to “hook [the CHS] up” with the developer of a new business in the County, so that the developer would retain the CHS’s business services. Son explained to the CHS that the business owed Campos, because Campos obtained a tax benefit for the business. Son and the CHS then walked to the coffee shop’s parking lot, where the CHS’s vehicle was located. The CHS then retrieved $3,000 in U.S. currency from the CHS’s vehicle.
The same day, Son gave Campos the $3,000 in U.S. currency that Son had received from the CHS. And later that day, Campos sent a text message to the CHS that stated, “I owe you big time my man.”
Beginning at least by early 2015, Son solicited and facilitated bribe payments from lobbyists and business owners who were interested in the “Sunday Sales Bill,” which established up to 100 Sunday liquor sales permits in Prince George’s County. The bribes were intended to influence public officials in the performance of their official duties. For example, in 2015, Son had asked Campos to assist in passing the Sunday Sales bill by talking to one of his colleagues about the bill; both subsequently voted in favor of the bill. On April 22, 2015, after the passage of the bill, Son arranged a lunch between Campos, Paig, and Lee. A lobbyist and attorney, Matthew Gorman, also attended. During the lunch, Son told Campos to meet Paig in the men’s bathroom, saying that Paig was “going to hook you up.” In the men’s bathroom, Paig handed Campos an envelope containing a total of $4,000 cash, which constituted a bribe from Son, Paig, Lee, and Gorman. In addition, on October 19, 2015, Son received a $4,000 bribe payment for his assistance in ensuring that certain businesses received Sunday Sales licenses.
Lee and Paig subsequently talked to Son about getting beneficial legislation introduced related to the Sunday Sales bill and indicated that they would be willing to pay $50,000 to make that happen. Son spoke with Delegate Vaughn, who agreed to introduce additional legislation in the 2016 legislative session. On November 10, 2015, Son arranged for Paig and Lee to meet with Vaughn so they could make a “down payment.” After the meeting, law enforcement observed Paig and Vaughn get into Vaughn’s car, while Lee and Son waited in the parking lot. Shortly after Paig got out of the car, Vaughn drove directly to a bank in the same shopping center. Bank surveillance video shows Vaughn pulling a stack of cash out of his right pocket and handing it to the teller, and then doing the same from his left pocket. Bank records show that Vaughn deposited a total of $4,000.
On December 17, 2016, after Son had been questioned by the FBI, he hand-wrote a letter to another subject of the FBI’s investigation informing the subject that Son had been “taken” by the “Feds” and was “wired” when he last visited the subject. In the letter, Son also listed names of individuals who had “flipped,” or cooperated with the FBI. Son further described devices used by the FBI for body wires and told the subject that the subject should assume meetings with Son were being recorded. Son also laid out means by which the subject and Son could communicate secretly.
Paig pleaded guilty to bribery and was sentenced earlier this month to 41 months in prison. Campos pleaded guilty to conspiracy and bribery and was sentenced earlier this month to 54 months in prison. Delegate Vaughn was convicted of bribery and conspiracy at a trial that concluded in March 2018, and is pending sentencing. Lee and Gorman have both pleaded guilty and also are pending sentencing.
United States Attorney Robert K. Hur commended the FBI, the IRS-CI, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Former Nashville Judge Pleads Guilty to Federal Obstruction and Theft ChargesRead the Press Release
A former Davidson County, Tennessee judge pleaded guilty today in U.S. District Court to five counts relating to obstruction of justice, witness tampering, and stealing money from an organization receiving federal funds, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran for the Middle District of Tennessee.
Cason “Casey” Moreland, 60, entered the plea this afternoon before Chief U.S. District Judge Waverly D. Crenshaw Jr.
According to admissions made in connection with Moreland’s plea agreement, in January 2017, the FBI began investigating whether Moreland solicited sexual favors in exchange for favorable judicial treatment while sitting as a General Sessions Court Judge in Nashville and Davidson County, Tennessee. Moreland admitted that in February 2017, he became aware that he was a target of an investigation and took steps to try to obstruct it. Specifically, he devised a scheme to pay a material witness to sign a false affidavit recanting her previous statements, which implicated his criminal conduct in trading judicial favors for sex. He also devised a scheme to have drugs planted in the witness’s car, and then to have her stopped by police, so that she would be arrested and her credibility would be destroyed. Moreland carried out these schemes by using a burner phone registered in the name of “Raul Rodriguez” and communicating with an individual who subsequently became an informant, working at the direction of the FBI.
Moreland also admitted to criminal conduct stemming from his involvement with the General Sessions Drug Treatment Court, a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he admitted that he exercised de facto authority over the Drug Court Foundation’s operations.
In connection with his plea agreement, Moreland admitted that beginning in spring 2016, he began embezzling cash from the Drug Court Foundation by directing the Drug Court Foundation’s director to deliver to his office envelopes of cash that she had collected from individuals seeking outpatient treatment for substance abuse. Then, in February 2017, after learning of the FBI’s investigation, Moreland instructed the Drug Court Foundation’s director to destroy all documents and records relating to the cash payments that he had embezzled. Finally, in February 2018, at a time when he was on pre-trial release for the original charges, Moreland admitted that he attempted to tamper with a witness by suggesting to the Drug Court Foundation’s director that she lie to the grand jury investigating his conduct.
Moreland will be sentenced on Aug. 31.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee.
Former Nashville General Sessions Judge Pleads Guilty to Federal Obstruction and Theft ChargesRead the Press Release
Former Davidson County General Sessions Judge Cason “Casey” Moreland, 60, pleaded guilty today in U.S. District Court to five counts relating to obstruction of justice, witness tampering, and stealing money from an organization receiving federal funds, announced U.S. Attorney Don Cochran for the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
Moreland entered the plea this afternoon before Chief U.S. District Judge Waverly D. Crenshaw, Jr.
Moreland was originally indicted in April 2017 and charged with five counts of obstruction of justice. This indictment resulted from an FBI investigation into whether Moreland solicited sexual favors in exchange for favorable judicial treatment while sitting as a General Sessions Court Judge in Nashville and Davidson County, Tennessee. According to admissions made in connection with Moreland’s plea agreement, in February 2017, Moreland became aware that he was a target of an investigation and took steps to try to obstruct it. Specifically, he devised a scheme to pay a material witness to sign a false affidavit recanting her previous statements, which implicated his criminal conduct in trading judicial favors for sex. He also devised a scheme to have drugs planted in the witness’s car, and then to have her stopped by police, so that she would be arrested and her credibility would be destroyed. Moreland carried out these schemes by using a burner phone registered in the name of “Raul Rodriguez” and communicating with an individual who subsequently became an informant, working at the direction of the FBI.
A superseding indictment returned on March 15, 2018, charged Moreland with five additional charges stemming from his involvement with the General Sessions Drug Treatment Court, a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he exercised de facto authority over the Drug Court Foundation’s operations.
Moreland also admitted that beginning in spring 2016, he began embezzling cash from the Drug Court Foundation by directing the Drug Court Foundation’s director to deliver to his office envelopes of cash that she had collected from individuals seeking outpatient treatment for substance abuse. Then, in February 2017, after learning of the FBI’s investigation, he instructed the Foundation’s director to destroy all documents and records relating to the cash payments that he had embezzled. Finally, in February 2018, at a time when he was on pre-trial release for the original charges, Moreland admitted that he attempted to tamper with a witness by suggesting to the Drug Court Foundation’s director that she lie to the grand jury investigating his conduct.
Moreland will be sentenced on August 31, 2018.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section.
Former Mountain Energy Co. Operations and Financial Manager Pleads Guilty to Defrauding his EmployerRead the Press Release
PITTSBURGH, PA – A resident of Waynesburg, Pennsylvania, pleaded guilty in federal court to charges of mail fraud and tax evasion, United States Attorney Scott W. Brady announced today.
Kevin C. Conklin, 56, pleaded guilty to two counts before United States District Court David S. Cercone.
In connection with the guilty plea, the court was advised that Conklin was employed by Mountain Energy Company, Ltd., an energy company headquartered in Aleppo Pennsylvania that operated oil and natural gas wells in the Western District of Pennsylvania. As part of his employment, Conklin oversaw the day-to day operations of Mountain Energy and managed the financial matters of Mountain Energy.
From January 2008 through December 2012, Conklin engaged in a scheme to defraud Mountain Energy and fraudulently obtained thousands of dollars of Mountain Energy’s funds. As part of the fraudulent scheme, Conklin used checks drawn on Mountain Energy’s business bank account to pay for personal expenses, including payments for Conklin' s home, personal credit card bills, college tuition for his daughter, an engagement ring for his son and automobile payments for a personal vehicle. Conklin falsely recorded in the financial database of Mountain Energy, the payee information and purpose of the Mountain Energy’s checks used by Conklin for his personal expenses. As part of the scheme, Conklin concealed from Mountain Energy’s tax preparer and the Internal Revenue Service, the expenditure of Mountain Energy’s funds to pay for his personal expenses.
Judge Cercone scheduled sentencing for October 4, 2018. The law provides for a maximum total sentence of 25 years in prison, a fine of $500,000 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 Attorneys Mary McKeen Houghton and Paul E. Hull are prosecuting this case on behalf of the government.
The United States Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, conducted the investigation leading to the conviction in this case.
Former Kentucky State Representative Sentenced to 2 Years for Aggravated Identity Theft for Aggravated Identity TheftRead the Press Release
PIKEVILLE, Ky. – Former Kentucky State Representative Wendell Keith Hall, 58, of Pikeville, was sentenced today to two years in prison, by Chief United States District Judge Karen K. Caldwell, for Aggravated Identity Theft. Judge Caldwell ordered that the sentence run consecutively, as required by law, to the 84-month prison sentence Hall is already serving for his 2015 conviction on bribery-related charges. In the bribery case, Hall, who owned coal mines and various coal industry-related businesses, was convicted by a Federal jury of paying a state mine reclamation inspector for favorable inspections and other favors related to the inspector’s job.
In February of this year, pursuant to a plea agreement, Hall pleaded guilty to one count of another, six-count indictment. The Aggravated Identity Theft offense was committed while Hall was pending trial and sentencing in the earlier case. The charge arose from Hall’s submission of fake documents to certify to another company, with which he had business contracts, that he had the required worker’s compensation and liability insurance coverage. Hall admitted that he caused the fake documents to be created and that they bore the forged name of an insurance executive, which was the basis of the identity theft charge.
Under federal law, Hall must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years to run concurrently with his other supervised release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau Investigation, jointly made the announcement.
The investigation was conducted by the FBI. The United States was represented by Assistant United States Attorneys Ken Taylor and Erin Roth.
Former Kentucky County Treasurer Indicted for Fraud and Identity TheftRead the Press Release
WASHINGTON – The former Treasurer of Jackson County, Kentucky was indicted today for stealing over $160,000 from the Jackson County government and misusing the identities of two other Jackson County employees to facilitate her thefts. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, Special Agent in Charge Amy Hess of the FBI’s Louisville, Kentucky Field Division and Richard Sanders, Commissioner of the Kentucky State Police, made the announcement.
Beth N. Sallee, 37, of McKee, Kentucky, was charged in a 10-count indictment with four counts of wire fraud, four counts of theft from a program receiving federal funds, and two counts of aggravated identity theft. A date for Sallee to appear in court has not yet been scheduled.
The indictment alleges that Sallee misused her position to write a number of checks payable to herself without the approval of the Jackson County Fiscal Court. Sallee allegedly deposited these checks into her own personal checking account or for cash. Over time, those unauthorized checks totaled approximately $161,808.23. To enable her scheme, Sallee allegedly forged the signatures of at least two other Jackson County employees on the checks, and later attempted to conceal her scheme by removing pages of Jackson County financial documents, obscuring page numbers with whiteout, and requesting the removal of check images from bank statements that were to be given to an auditor.
The investigation was conducted by the FBI and the Kentucky State Police. The case is being prosecuted by Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Andrew T. Boone of the Eastern District of Kentucky.
Any indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Kentucky County Treasurer Indicted for Fraud and Identity TheftRead the Press Release
The former Treasurer of Jackson County, Kentucky was indicted today for stealing over $160,000 from the Jackson County government and misusing the identities of two other Jackson County employees to facilitate her thefts. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, Special Agent in Charge Amy Hess of the FBI’s Louisville, Kentucky Field Division and Richard Sanders, Commissioner of the Kentucky State Police, made the announcement.
Beth N. Sallee, 37, of McKee, Kentucky, was charged in a 10-count indictment with four counts of wire fraud, four counts of theft from a program receiving federal funds, and two counts of aggravated identity theft. A date for Sallee to appear in court has not yet been scheduled.
The indictment alleges that Sallee misused her position to write a number of checks payable to herself without the approval of the Jackson County Fiscal Court. Sallee allegedly deposited these checks into her own personal checking account or for cash. Over time, those unauthorized checks totaled approximately $161,808.23. To enable her scheme, Sallee allegedly forged the signatures of at least two other Jackson County employees on the checks, and later attempted to conceal her scheme by removing pages of Jackson County financial documents, obscuring page numbers with whiteout, and requesting the removal of check images from bank statements that were to be given to an auditor.
The investigation was conducted by the FBI and the Kentucky State Police. The case is being prosecuted by Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Andrew T. Boone of the Eastern District of Kentucky.
Any indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Fugitive Pleads Guilty to Credit Card Fraud and Identity Theft ChargesRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces that Jose Ojeda Vera (28, formerly of Tampa) has pleaded guilty to committing aggravated identity theft and conspiring to commit credit card fraud and identity theft. He faces a maximum penalty of five years in federal prison on the conspiracy charge, followed by two years in federal prison for the aggravated identity theft charge. Vera, who was indicted on August 27, 2015, was first arrested on these charges on October 13, 2015, and thereafter released on bond. He violated his pretrial release in January 2016 and was a fugitive until his arrest on March 2, 2018.
According to court documents, Vera and his co-defendant, Yannier Arias, used a total of 45 counterfeit and unauthorized credit cards encoded and embossed with account information that had been obtained by, among other things, “skimming” credit cards at local gas stations. They used this stolen information to purchase merchandise at local merchants. Many of the victims were unaware their information had been stolen until they were notified by law enforcement.
On February 24, 2015, Vera and Arias had 18 counterfeit credit cards in their possession, all in the name “Angel Garcia,” along with two fraudulent Florida identification cards in the same name. One ID card had Vera’s photograph on it, and the other depicted Arias. The pair had made more than $6,300 in fraudulent charges two days prior. Agents also later recovered two more counterfeit credit cards from Vera’s home, along with receipts for purchases made with those cards.
On September 6, 2016, Arias was sentenced to eight years and six months in federal prison. He later unsuccessfully appealed that sentence.
This case was investigated by the Financial Crimes Task Force, which includes the United States Secret Service, the Florida Department of Law Enforcement, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Former Armenian Ambassador and a Russian National Charged in Foreign Bribery and Money Laundering SchemeRead the Press Release
Two employees of an international engineering consulting firm were charged in a superseding indictment filed today for their alleged participation in a scheme to launder bribe payments to foreign government officials for the benefit of a Columbus, Ohio-based subsidiary of Rolls-Royce plc, to secure a contract to supply equipment and services to power a gas pipeline from Kazakhstan to China.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Acting Inspector in Charge Nicole Davis of the U.S. Postal Inspection Service’s Criminal Investigations Group, Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division and Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office Criminal Division made the announcement.
Azat Martirossian, 62, a citizen of Armenia, and Vitaly Leshkov, 50, a citizen of Russia, were charged by a superseding indictment filed in the Southern District of Ohio with one count of conspiracy to launder money and 10 counts of money laundering. Petros Contoguris, 70, a citizen of Greece, was also charged on these counts, as well as one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), and seven counts of violating the FCPA. Contoguris previously had been charged on all of these counts in an indictment that was filed on Oct. 12, 2017 and unsealed on Nov. 7, 2017. Martirossian, Leshkov, and Contoguris are believed to be residing outside the United States.
“The charges announced today against Azat Martirossian and Vitaly Leshkov further demonstrate the Criminal Division’s unwavering resolve to prosecute those who facilitate corruption and launder illicit proceeds,” said Acting Assistant Attorney General Cronan. “Thanks to the coordinated efforts by our prosecutors and agents—working closely with their counterparts throughout the world—these defendants will face prosecution for their allegedly corrupt schemes.”
“The charges filed today reflect the continued determination of the United States to prosecute those who engage in foreign corrupt business practices,” said U.S. Attorney Glassman. “International actors should think twice before executing bribery schemes because the United States can and will discover and prosecute such schemes and their perpetrators.”
“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Acting Inspector in Charge Davis. “Corruption and bribery schemes such as this involving international corporations and conspirators are not victimless crimes. This type of conduct can damage competitive domestic and international markets, and cause immeasurable economic losses both here in the United States and around the world. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. The collaborative investigative work on this case conducted by Postal Inspectors and our domestic and international law enforcement partners illustrates our efforts to protect the United States and the international marketplace.”
“The allegations outlined today exemplify how a small group of individuals, who knowingly engage in illegal payments in an attempt to advance businesses dealings, create an uneven global marketplace,” said Acting Assistant Director Hacker. “The FBI with our partners continues to work these important cases in order to remove the notion that bribery, through backroom deals, is an acceptable way of doing business. This investigation demonstrates the importance of international cooperation amongst law enforcement in combatting fraud and money laundering on a global basis.”
“Today’s charges serve as a reminder of the important role the FBI plays in rooting out international corruption,” said FBI Special Agent in Charge DeSarno. “No one is above the law, so let today’s announcement be a warning to those who may try to perpetrate a similar scheme that the FBI will work with global partners in its mission to detect and prevent corrupt business practices, and we will continue to hold those who attempt to take advantage of international markets accountable.”
According to the superseding indictment, Contoguris, the founder and chief executive officer of Gravitas & CIE. International Ltd. (Gravitas), former Rolls-Royce employees and executives, and others, allegedly conspired to pay bribes to foreign officials in exchange for directing business to Rolls-Royce Energy Systems Inc. (RRESI). RRESI was a U.S.-based subsidiary of Rolls-Royce plc, the United Kingdom-based global manufacturer and distributor of power systems for the aerospace, defense, marine and energy sectors.
The superseding indictment alleges that Contoguris, working with employees of an international engineering consulting firm (Technical Advisor), including Martirossian and Leshkov, devised and executed a scheme with Rolls-Royce executives and employees, whereby Rolls-Royce would pay kickbacks to the Technical Advisor employees and bribes to at least one foreign official in Kazakhstan, and disguise these payments as commissions to Contoguris’s company, Gravitas, in exchange for helping Rolls-Royce win contracts with Asia Gas Pipeline LLP (AGP).
According to the superseding indictment, AGP was created to build and connect a gas pipeline between Central Asia and China, and the Technical Advisor purported to provide independent engineering consulting advice and other services to AGP. The superseding indictment further alleges that after AGP awarded Rolls-Royce a contract in November 2009, worth approximately $145 million, Rolls-Royce made commission payments to Gravitas, and Contoguris then passed a portion of those commission payments onto the Technical Advisor employees, including Leshkov and Martirossian, knowing that a portion of that money would be shared with a foreign official consistent with their corrupt agreement.
The charges announced today follow the Jan. 17, 2017 announcement of a deferred prosecution agreement (DPA) with Rolls-Royce plc and a more than $800 million total penalty as part of a global resolution to investigations by the Department of Justice, U.K., and Brazilian authorities related to the corrupt conduct. The charges also follow upon the Nov. 7, 2017 announcement, concerning Rolls-Royce former executives and employees James Finley, Keith Barnett and Louis Zuurhout, and Technical Advisor employee Andreas Kohler, each of whom have entered guilty pleas in connection with their respective roles in the bribery scheme. The DPA acknowledged Rolls-Royce’s cooperation in this case, including with the Department’s investigation into individuals, and significant remedial measures.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service and the FBI’s International Corruption Squad in Washington, D.C., investigated the case. Trial Attorneys Kevin R. Gingras and Vanessa Snyder of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys J. Michael Marous and Jessica Kim of the Southern District of Ohio are prosecuting the case.
The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The United Kingdom’s Serious Fraud Office provided assistance in this matter, as did law enforcement colleagues in Brazil, which both coordinated with the Department to reach simultaneous resolutions with Rolls-Royce. The Department also thanks its law enforcement colleagues in Austria, the Bahamas, Germany, the Netherlands, Singapore, Switzerland and Turkey.
The Criminal Division’s 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.
Five people indicted for illegally reentering the U.S. after deportationRead the Press Release
Five people were indicted for illegally reentering the United States.
Roberto Zuniga-Vega, 35, a citizen of Mexico, was found in Ohio after having been deported in September 2012, according to the indictment.
Ascencion Carrillo-Hernandez, 56, a citizen of Mexico, was found in Ohio after having been deported in 1995, according to the indictment.
Jorge Mauricio Astudillo-Jimbo, 43, a citizen of Ecuador, was found in Ohio after having been previously deported four different times, according to the indictment.
Uriel Perez-Gonzalez, 27, a citizen of Mexico, was found in Ohio after having been previously deported four different times, according to the indictment.
Wilson Cerrato-Moran, 30, a citizen of Honduras, was found in Ohio after having been previously deported twice, according to the indictment.
The cases are unrelated. They were investigated by U.S. Border Patrol and Immigration and Customs Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Five Defendants in Methamphetamine Distribution ConspiracyRead the Press Release
GREENEVILLE, Tenn. – During the week of May 21, 2018, five defendants in an east Tennessee methamphetamine (meth) conspiracy were sentenced by the Honorable R. Leon Jordan, Senior, U.S. District Court Judge to serve time in federal prison. James Dwayne Byington, 50, Rogersville, Tennessee, was sentenced to serve 210 months. Edward Smith, 52, Rogersville, Tennessee, was sentenced to serve 70 months. Frankie Benton, 34, Bulls Gap, Tennessee, was sentenced to serve 188 months. Clay Seals, Jr., Surgoinsville, Tennessee was sentenced to serve 120 months. Curtis Carpenter, 43, of Whitesburg, Tennessee, was sentenced to serve 172 months.
In 2016, local, state and federal law enforcement agencies working together began an investigation into an evolving meth distribution network that was distributing multiple kilogram quantities of meth in and around Hawkins County, Tennessee. David Jones, 61, who lived in Chatsworth, Georgia, supplied this organization with kilograms of meth that were distributed by members of the conspiracy, most of whom were from Hawkins County, Tennessee. Jones was sentenced in April 2018 to serve 180 months in federal prison.
The convictions of Byington, Smith, Carpenter, Benton, and Seals are the result of a 49-count indictment that also charged the following individuals for their roles in the conspiracy:
- David Jones, 61, of Chatsworth, Georgia;
- Jonathan Delph, 51, of Rogersville, Tennessee;
- Stephanie Bailey, 50, of Hawkins County, Tennessee;
- Donna Strong, 54, a/k/a Donna Dunbar, of Surgoinsville, Tennessee;
- Jerry Robinette, 48, of Rogersville, Tennessee;
- Tyler Delph, 25, of Rogersville, Tennessee;
- Scottie Delph, 49, of Rogersville, Tennessee;
- James Michael Whitaker, 55, of Rogersville, Tennessee;
- Paul Bledsoe Jr., 44, of Morristown, Tennessee
- William West, 58, a/k/a Bump, of Rogersville, Tennessee;
- Leonard Brad Eidson, 43, of Bull’s Gap, Tennessee
- Phillip Burton, 49, a/k/a Burger, of Rogersville, Tennessee; and
- Toby Jones, 40, of Chatsworth, Georgia;
All of the individuals charged in this case have been convicted of conspiring to distribute meth. Many have already been sentenced in U.S. District Court and the remainder are scheduled to be sentenced between now and June 12, 2018.
The ongoing investigation leading to the indictment was the product of a partnership between Hawkins County Sheriff’s Department, Third Judicial Drug Task Force, Hamblen County Sheriff’s Department, Tennessee Highway Patrol, Appalachian High Intensity Drug Trafficking Area - Rocky Top Task Force, Third Judicial District Attorney General’s Office, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Federal Bureau of Investigation. Assistant U.S. Attorney J. Christian Lampe represents the United States in court proceedings.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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