Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 May 2018
Supervisory U.S. Border Patrol Agent Arrested on Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Jason Christopher Davis, 45, of Las Cruces, N.M., made his initial appearance today in federal court on a criminal complaint charging him with receipt of material containing or constituting child pornography. Davis, who is employed as a Supervisory U.S. Border Patrol Agent, remains in federal custody pending a preliminary hearing and a detention hearing, which are scheduled for May 23, 2018.
The criminal complaint alleges that Davis received child pornography in April 2018, in Dona Ana County, N.M. According to the complaint, the Las Cruces Police Department executed a search warrant on an email account subscribed to Davis that allegedly was used to upload a video file containing child pornography. The complaint further alleges that on May 15, 2018, Homeland Security Investigations and the Las Cruces Police Department seized numerous items including digital media while executing a state search warrant at Davis’ residence.
The statutory penalty for a conviction on a receipt of child pornography charge is a statutory mandatory minimum penalty of five years and maximum penalty of 20 years of imprisonment. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Las Cruces office of HSI, the Office of Inspector General of the U.S. Department of Homeland Security, and the Las Cruces Police Department with assistance from the Office of Professional Responsibility of the U.S. Customs and Border Protection, the Management Inquiry Team of the U.S. Border Patrol, the FBI, and the New Mexico Attorney General’s Office.
Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the 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 information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437, or to contact Homeland Security Investigations at 1-866-DHS-2-ICE.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Davis Complaint
Sentencings for May 14 - May 17, 2018Read the Press Release
ROBERTO C. MONTIEL, 42, of Hidalgo, Mexico was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 14, 2018 for illegal re-entry of a previously deported alien into the United States. Montiel was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation hearings and ordered to pay a $100.00 special assessment to be remitted at the time of deportation. The U.S. Immigration and Customs Enforcement investigated this case.
JOSE RODOLFO MONTIEL-PEREZ, 20, of Hidalgo, Mexico was sentenced by Federal District Court Judge Alan B. Johnson on May 14, 2018 for illegal re-entry of a previously deported alien into the United States. Montiel-Perez was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation hearings and ordered to pay a $100.00 special assessment to be remitted at the time of deportation. The U.S. Immigration and Customs Enforcement investigated this case.
TORY RAE DIXON, 42, of Cheyenne, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on May 17, 2018 for transportation of child pornography. Dixon was arrested in Cheyenne, Wyoming. He received one hundred twenty months of imprisonment, to be followed by one hundred twenty months of supervised release, and ordered to pay $100.00 in special assessment. The Wyoming Division of Criminal Investigation investigated this case.
Salvadoran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that CARLOS ALBERTO ANDRADE, age 35, a citizen of El Salvador, was charged today in a one-count Indictment with illegal reentry of a removed alien after deportation, in violation of Title 8, United States Code, Section 1326(a).
According to the Indictment, on April 16, 2018, ANDRADE was found to have reentered the United States after having been previously removed.
If convicted, ANDRADE faces a term of imprisonment of up to two years, a fine of up to $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
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 United States Department of Homeland Security, Immigration and Customs Enforcement and the St. Tammany Parish Sheriff’s Department in investigating this matter. Assistant United States Attorney Spiro Latsis is in charge of the prosecution.
Salem Man Sentenced for Conspiracy to Commit Sex TraffickingRead the Press Release
ROANOKE, VIRGINIA – A Salem man, who believed he was enticing a 15-year-old girl to engage in prostitution while actually communicating online with an undercover Franklin County Sheriff’s Deputy, was sentenced yesterday in U.S. District Court in Roanoke on a federal sex-trafficking charge, United States Attorney Thomas T. Cullen announced.
Shawn Paul Paisley, 48, was sentenced yesterday in U.S. District Court in Roanoke to 96 months in prison. Paisley previously pleaded guilty to one count of conspiracy to commit sex trafficking.
“As this case indicates, it is imperative for parents, teachers, and caregivers to be vigilant and protect our children from the dangers that lurk on the internet,” U.S. Attorney Cullen stated today. “Fortunately, in this case, proactive enforcement by a local police officer stopped a predator before he could act.”
In August of 2016, while posing as a 15-year-old female, a Franklin County Sheriff’s Deputy responded to a Craigslist advertisement posted by Paisley seeking a “personal/casual” encounter. Paisley gave the “female minor” a cell phone number and the two exchanged text messages. During the course of their text message exchanges, Paisley told the “female minor” that he ran an escort service and that his girls made good money. Paisley provided standard prices for the services the escorts offered and the two arranged to meet in order for the “female minor” to perform oral sex on Paisley.
Paisley left his home in Salem, Virginia and drove to Franklin County, Virginia to meet the “minor female.” When Paisley arrived in Franklin County, he was arrested.
Paisley admitted that he helped run an escort service, which involved recruiting females to engage in sex for pay. He helped arrange for encounters between recruited female prostitutes and the customers and took a portion of the fees paid for making the arrangements. Paisley recalls that at least two females he previously helped recruit were 17-years-old.
The investigation of the case was conducted by the U.S. Department of Homeland Security and the Franklin County Sheriff’s Office. Executive Assistant United States Attorneys Laura Day Rottenborn and Matthew Miller prosecuted the case for the United States.
Safford Man Sentenced to over 17 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
TUCSON, Ariz. – On May 16, 2018, Wayne Montierth, 54, of Safford, Ariz., was sentenced by U.S. District Judge James A. Soto to serve 210 months in prison. After a trial, a jury found Montierth guilty of four counts of distribution of child pornography and one count of possession of child pornography. Montierth’s term of imprisonment will be followed by lifetime supervised release with stringent sex offender conditions, including the requirement that he register as a sex offender.
A 2015 investigation by the FBI revealed that Montierth had been distributing sexually explicit images of children online using file-sharing software. A search of Montierth’s computer revealed thousands of images and videos depicting child sex abuse. In handing down the sentence, the Court found that the evidence showed Montierth had engaged in an on-going pattern of activity involving sexual abuse of children.
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, 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 investigation in this case was conducted by the Federal Bureau of Investigation, Sierra Vista Office. The prosecution was handled by Carin C. Duryee, District of Arizona, Tucson.
CASE NUMBER: CR-15-02103-TUC-JAS
RELEASE NUMBER: 2018-066_Montierth
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Scam Targeting Local ResidentsRead the Press Release
United States Attorney Ron Parsons reported today that local law enforcement authorities have been receiving reports of residents being targeted in a telephonic and email scam in the Rapid City area.
Unsuspecting citizens have been receiving telephone calls and emails from persons claiming to be a police officer, clerk of courts personnel, and even a fictitious judge. The calls and emails claim the citizen was supposed to report for jury duty in federal or state court, and failed to report as directed. The citizen is being told by the bogus caller that they must send money to a specified account or person in order to avoid being arrested.
U.S. Attorney Parsons wants citizens to know the claims being made in these calls and emails are totally false and, if contacted, citizens should not send money to anyone as instructed in the fraudulent call.
If you feel you have been a target of this scam you should immediately contact the Rapid City Police Department at 605.394.4131 or the United States Marshal’s Service in Rapid City at 605.342-6331.
Raids on Multiple Illegal Grow Houses in Investigation of International Money Laundering and Interstate Marijuana TraffickingRead the Press Release
Over the last few days investigators executed search warrants at 17 different Puget Sound area locations, and a commercial property in New Jersey, in connection with an internationally funded drug trafficking organization sending thousands of pounds of marijuana grown in Washington to the New York City area, announced U.S. Attorney Annette L. Hayes. One defendant, 37-year-old XIAMIN HUANG of Seattle, is in custody and her husband and his brother are being sought by law enforcement. All three are charged in a criminal complaint with conspiracy to manufacture and distribute marijuana.
“The defendants are charged with growing thousands of pounds of marijuana in Western Washington and then shipping it to the East Coast to take advantage of black market prices,” said U.S. Attorney Annette L, Hayes. “As prosecutors made clear in court hearings today, hundreds of thousands of dollars have flowed in from China to pay for grow houses and the massive electric bills associated with them. In the meantime, the communities where these grow houses are located are dealing with a host of negative impacts including distortion of real estate markets with criminals making all cash payments at inflated prices.”
According to records filed in the case, in 2016 and 2017 investigators identified several homes in King and Pierce Counties being used for indoor marijuana production. The homes, such as one on S. 124th Street in Burien had unusually high electrical bills – as much as $2,500 in one two-month billing period. On another property, members of the conspiracy made cash payments of more than $37,000 for electricity in a three month period. On May 16, 2018, law enforcement served search warrants on locations in Seattle, Burien, Kent, Tacoma, and Renton. More than 3,000 marijuana plants were seized as well as business records and equipment associated with the marijuana trafficking.
At the detention hearing today, prosecutors revealed that some of the homes had been purchased with large wire transfers of funds from the People’s Republic of China (PRC). The source of the money is still under investigation. An analysis of the email accounts and bank accounts utilized by the criminal group show efforts to structure cash deposits in order of avoid bank reporting requirements on suspicious transactions. HUANG was determined to be a flight risk and was detained pending trial.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The Investigation was led by DEA and Homeland Security Investigation (HSI). Significant investigative assistance was also provided by the Seattle Police Department and FBI.
The case is being prosecuted by Special Assistant United States Attorney Joe Silvio and Assistant United States Attorney Marie Dalton. Mr. Silvio is an attorney with Homeland Security Investigations, specially designated to prosecute cases in federal court.
Rabobank NA Sentenced for Conspiring to Impair, Impede, and Obstruct Its Primary RegulatorRead the Press Release
Rabobank National Association (Rabobank), a Roseville, California subsidiary of the Netherlands-based Coöperatieve Rabobank U.A., was sentenced today by U.S. District Judge Jeffrey T. Miller of the Southern District of California for impairing, impeding and obstructing its primary regulator, the Department of the Treasury’s Office of the Comptroller of the Currency (the OCC), by concealing deficiencies in its anti-money laundering (AML) program and for obstructing the OCC’s examination of Rabobank. Rabobank was sentenced to a two-year term of probation, and ordered to pay the statutory maximum fine of $500,000. Additionally, as part of its guilty plea, Rabobank forfeited $368,701,259 to the United States as a result of allowing illicit funds to be processed through the bank.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Adam L. Braverman for the Southern District of California, Special Agent in Charge Dave Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Diego and Special Agent in Charge R. Damon Rowe of Internal Revenue Service Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
“Rabobank’s branches on the Mexican border processed hundreds of millions of dollars in suspicious transactions likely tied to international narcotics trafficking, organized crime, and money laundering,” said Acting Assistant Attorney General Cronan. “Instead of filing reports that would have alerted law enforcement to the suspicious activity, as required by law, the bank looked the other way and then compounded its misconduct by conspiring to cover-up its failures and deceiving its regulator. Today’s sentence and the related forfeiture demonstrate that the Department of Justice will use all the tools at our disposal to combat drug trafficking and transnational crime—including prosecuting financial institutions that turn a blind eye to illicit proceeds moving through their customers’ accounts.”
“The U.S. Attorney’s Office is intent on securing our border and preventing the laundering of narco-dollars through financial institutions like Rabobank,” said U.S. Attorney Braverman. “In doing so we will safeguard our communities and protect our citizens from drug traffickers and corporate criminals alike.”
“It is the responsibility of Homeland Security Investigations (HSI) to monitor and investigate illicit activity that exploits the global infrastructure, particularly in financial systems,” said HSI San Diego Special Agent in Charge, Dave Shaw. “This complex investigation revealed, and Rabobank admits, that Rabobank was aware of the extreme risk involved in processing million dollar financial transactions linked to transnational crime and international money laundering – activity which plagues the southwest border. Today’s sentencing and the significant forfeitures in this case sends a strong message to financial institutions that illicit financial activity inside banking institutions will not be tolerated.”
“Rabobank’s sentencing today is a victory for all Americans and sends a strong message about the need for transparency in banking and ultimately contributes to the fight against money laundering,” said IRS-CI Special Agent in Charge Rowe. “IRS-Criminal Investigation works diligently with our law enforcement partners to ensure funds obtained through illegal means do not find their way into our financial institutions.”
On Feb. 7, Rabobank pleaded guilty to conspiracy to defraud the United States and to corruptly obstruct an examination of a financial institution. Specifically, Rabobank admitted to conspiring with several former executives to defraud the United States by unlawfully impeding the OCC’s ability to regulate the bank and to obstruct the OCC’s 2012 examination of Rabobank’s Bank Secrecy Act (BSA)/AML compliance program. In connection with that guilty plea, Rabobank admitted that between 2009 and 2012 it implemented BSA/AML policies and procedures that precluded and suppressed its investigations into potentially suspicious transactions near the U.S.-Mexico border, much of which was conducted by customers and through accounts that Rabobank had previously designated “High-Risk.”
As a result of its BSA/AML failures, Rabobank admitted that certain customer accounts were involved in not less than $368,701,259 in suspicious transactions that were either unreported or untimely reported to the Financial Crimes Enforcement Network (FinCEN), as required by the BSA. These transactions included high-volume cash deposits and withdrawals, check transactions, electronic transfers, and wire transfers that were consistent with illegal activity such as trade-based money laundering, bulk cash smuggling, structuring, and the black market peso exchange.
According to its statement of facts, Rabobank’s branches in Imperial County, California were heavily dependent on cash sourced from Mexico – cash the bank knew was likely tied to narcotics trafficking and organized crime. In particular, Rabobank’s Calexico, California branch, located approximately two blocks from the U.S.-Mexico border, was the highest performing branch in the Imperial Valley region due to its receipt of cash from Mexico. Rabobank continued soliciting cash-intensive customers from Mexico, while failing to employ appropriate BSA/AML policies and procedures to address the heightened risk, until approximately May 2013, when Rabobank placed a moratorium on originating new account relationships for Mexico-based businesses entities.
Rabobank also admitted that the bank, through at least three executives, knowingly obstructed the OCC’s 2012 examination by responding to the OCC’s February 2013 initial report of examination with false and misleading information about the state of Rabobank’s BSA/AML program and by making false and misleading statements to the OCC regarding the existence of reports developed by a third-party consultant that described the deficiencies and resulting ineffectiveness of Rabobank’s BSA/AML program. In furtherance of the scheme to defraud the OCC, Rabobank also demoted or terminated two RNA employees who provided information to the OCC regarding Rabobank’s BSA/AML deficiencies.
The investigation was conducted by HSI, IRS-CI, and the Financial Investigations and Border Crimes Task Force (the FIBC), a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture (TEOAF). The investigation occurred in parallel with regulatory investigations by the OCC, Office of General Counsel, and FinCEN, Enforcement Division. The case is being prosecuted by Trial Attorneys Kevin G. Mosley and Maria K. Vento of the Criminal Division’s Money Laundering and Asset Recovery Section, Bank Integrity Unit, and Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher and David J. Rawls of the Southern District of California.
Postal Carrier Sentenced to 10 Months in Prison for Delivering Marijuana Packages to Drug DealersRead the Press Release
PHILADELPHIA — Felicia Charleston, 36, of Philadelphia, was sentenced on May 16 to 10 months in federal prison for using her position as a postal carrier to deliver packages containing marijuana to drug dealers in West Philadelphia, announced United States Attorney William M. McSwain. Charleston was sentenced by U.S. District Judge R. Barclay Surrick.
Charleston pled guilty to two separate indictments, both charging her with conspiracy to distribute at least 1,000 kilograms of marijuana, as well as one count of attempted possession with the intent to distribute 158 pounds of marijuana.
“The defendant exploited her position with the United States Postal Service by conspiring with drug dealers in order to line her own pockets,” said U.S. Attorney McSwain. “Her prison sentence is a reflection of the seriousness of her crimes.”
Charleston was a postal carrier at the West Market Post Office in Philadelphia and was responsible for delivering packages to addresses in West Philadelphia. As charged in this case, Charleston agreed to divert postal packages containing marijuana (which listed fictitious delivery addresses) and deliver them to drug dealers. Specifically, Charleston left her postal route in order to deliver the packages to two drug organizations. For one drug organization, Charleston delivered packages to members outside of 48 N. Hobart Street in West Philadelphia and even carried packages inside the residence. Charleston also routed packages to another drug dealer by hand-delivering the packages at various locations in West Philadelphia.
“The vast majority of the Postal Service’s 600,000 employees nationwide are dedicated, hard-working individuals worthy of America’s trust," said Monica Weyler, U.S. Postal Service Office of Inspector General Special Agent in Charge, Philadelphia. "However, a very small number of them choose to violate that trust by engaging in misconduct or criminal activity. Special agents with the U.S. Postal Service Office of Inspector General work with other law enforcement agencies to find those employees, investigate them, and seek their criminal prosecution and removal from the Postal Service, as we did in this case. To report criminal activity or serious misconduct by postal employees, contact USPS OIG special agents at 888-USPS-OIG or www.uspsoig.gov.”
The case was investigated by the United States Postal Service, Office of Inspector General (USPS-OIG), Homeland Security Investigations (HSI) Border Enforcement Security Taskforce (BEST), and the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations (BNI) and is being prosecuted by Assistant United States Attorneys Anita Eve and Tomika N.S. Patterson.
Pittsburgh Man Sentenced to 10 Years in Prison for Possessing a Stolen GunRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 120 months’ incarceration, followed by three years’ supervised release on his conviction of violating federal firearm laws, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Ryan Gainer, age 37. According to information presented to the court, on or about June 14, 2016, Gainer knowingly possessed a stolen firearm.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government. 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 United States Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Gainer.
Oklahoma Man Sentenced to 20 Years for Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A man whose crime spree began with a carjacking in Branson, Mo., and included terrorizing a grandmother and granddaughter at gunpoint in her apartment before he was tasered and arrested inside a Springfield, Mo., church, was sentenced in federal court today.
Alberto Colina, Jr., 35, of Muskogee, Oklahoma, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole, the statutory maximum penalty. The court also ordered Colina to pay $2,500 in victim restitution.
On Sept. 21, 2017, Colina pleaded guilty to one count of being a felon in possession of a firearm and one count of stealing a firearm.
According to court documents, Colina started his crime spree on Jan. 5, 2016, by stealing a truck in Branson, Mo. The truck, which had been left running by the owner, contained a double barrel rifle.
The next day, a witness reported Colina for a possible burglary at a residence in Branson. When law enforcement arrived, Colina attempted to flee the scene in the stolen truck; however, he rammed the reporting witness’s vehicle during his flight, while the witness was inside the vehicle, and then fled on foot.
Colina then found his way to an apartment complex where he forced his way into an apartment at gunpoint. The 63-year-old resident of the apartment, identified in court documents as E.R., was home alone with her 2-year-old granddaughter. Colina knocked at the door of E.R.’s apartment at about 1:30 p.m. When she opened the door, Colina – wearing a black mask and holding a rifle – pushed the rifle in her face. She grabbed the barrel but he pushed his way into her apartment. Colina struck her on the side of the face and head butted her, causing her to fall to the floor next to her granddaughter. E.R. attempted to reach the balcony to yell for help, but Colina forced her back into the apartment and hit her in the back of the head with the stock of the rifle.
For the next two hours, Colina terrorized E.R. and her two-year old granddaughter, and he ransacked her home. He forced E.R. to drink a liquid containing alprazolam and hydrocodone, which caused her to become very drowsy and occasionally lose consciousness. He stole numerous items from E.R., including cash, firearms, and prescription medications.
After Colina left her apartment, E.R. called the police and was taken to the hospital. She received staples to her scalp due to a laceration, and treatment for a fractured finger and possible fractured rib. Toxicology reports confirmed that E.R. had opiates and benzodiazepines in her blood.
Colina ended his crime spree by breaking into a church in Springfield, Mo. A stolen van, belonging to Springfield Pool and Spa, was parked outside the church. Colina was located inside the church. Colina refused to comply with law enforcement’s commands and had to be tasered.
Under federal statutes, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Colina has two prior felony convictions for tampering with a motor vehicle, two prior convictions for resisting arrest, and prior felony convictions for possessing burglary tools and unlawful use of drug paraphernalia.
Colina has pleaded guilty in a separate state case to robbery, two counts of armed criminal action and assault. Colina awaits sentencing in Taney County Circuit Court on those convictions.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Branson, Mo., Police Department and the Greene County, Mo., Sheriff’s Department.
Oklahoma City Man Pleads Guilty to "Lie-And-Try" Firearm FelonyRead the Press Release
OKLAHOMA CITY – LESEAN D. HARDY, 38, of Oklahoma City, has pleaded guilty to causing a false statement to be made to a licensed firearms dealer, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
On December 13, 2017, a federal grand jury indicted Hardy and SHENITA RENEE WILLIAMS, 43, of Oklahoma City, for making a false statement to Sooner State Pawn on May 11, 2016. According to the indictment, Hardy caused Williams to represent that she was purchasing a Walther .22 pistol when Hardy was in fact the purchaser. The grand jury also charged Williams with making a false declaration under oath on June 1, 2016, at a preliminary hearing in a separate federal criminal case against Hardy. During that hearing, according to the indictment, Williams testified falsely that she was by herself when she went to the pawn shop to buy the gun and that Hardy had nothing to do with the purchase and had no knowledge that she had purchased the firearm. Finally, the grand jury charged Hardy with suborning perjury in connection with Williams’s testimony. Hardy has been in federal custody since the grand jury handed down its indictment.
On May 17, 2018, Hardy pleaded guilty to causing Williams to make a false statement to Sooner State Pawn, a crime also known as "lie-and-try." The government has agreed to dismiss the charge of suborning perjury. On May 7, 2018, Williams pleaded guilty to giving testimony she knew was false about her role in buying a gun for Hardy. The government will dismiss the "lie-and-try" charge against her.
As a result his guilty plea, Hardy faces a maximum sentence of ten years in prison. Williams faces a maximum sentence of five years in prison. Both also face up to three years of supervised release and a fine of up to $250,000. Sentencings will take place in approximately ninety days.
This case is being prosecuted by Assistant U.S. Attorney Timothy W. Ogilvie. It is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to court records for further information.
North Side Man Will Spend 5 Years in Prison for Participating in Prescription Drug Distribution Scheme and Health Care FraudRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to five years of imprisonment and three years of supervised release on his convictions for conspiring to possess and distribute oxycodone and oxymorphone, health care fraud, and perjury, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Jeremiah Davidson, 62.
According to information presented to the court, Davidson participated in a criminal network of drug dealers that obtained opiate pain killers and then illegally distributed them to users in the Pittsburgh area. Davidson obtained opiate pills from various sources and provided them to a dealer for further distribution. One of Davidson’s sources of supply was his own prescriptions, which he obtained fraudulently and paid for through a taxpayer-funded health care benefit program.
While on bond for these offenses, law enforcement arrested him for continuing to sell fraudulently obtained prescription medication to dealers. In an ultimately successful attempt to avoid revocation of his federal bond, Davidson lied under oath about several important matters and thus committed perjury.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Davidson.
Newport News Man Convicted of Searching for Obscene Images Online While on Federal SupervisionRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Newport News man today of attempted receipt of obscene images depicting the sexual abuse of children, obstruction of justice, destruction of evidence, and penalties for a registered sex offender.
According to court records and evidence presented at trial, Elmer E. Eychaner, III, 46, previously was convicted in federal court of child pornography crimes in 2008. On June 13, 2016, the defendant began a period of federal supervision in the Eastern District of Virginia. The defendant originally was prohibited from having a computer, but he requested a computer so that he could look for a better job. The probation office allowed the defendant to have a computer that was monitored through a third-party company, RemoteCOM.
On November 17, 2016, the defendant went onto his government-monitored computer and searched for obscene cartoon images depicting the sexual abuse of minors. He utilized voice recognition software, Cortana, to try to evade the computer-monitoring software. After he was finished searching for the obscene images, he deleted his search history. The next day, he called his federal probation officer and confessed. When the probation officer told him she was coming to collect his computer, he admitted that he had removed the hard drive and thrown it down a storm drain.
Eychaner previously was convicted of promoting obscenity to minors in North Dakota on August 21, 1992, and gross sexual imposition in North Dakota on May 10, 1994.
Eychaner faces a mandatory minimum of 25 years in prison when sentenced on August 23, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Mark S. Davis accepted the verdict. Assistant U.S. Attorneys Lisa R. McKeel and Megan M. Cowles are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-76.
New York Man Pleads Guilty to Failing to Pay Child SupportRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Theodore S. Comando, 54, of Westbury, New York pled guilty yesterday in U.S. District Court to failing to pay court-ordered child support.
According to court records, in September 2005, a Maine District Court ordered Comando to make weekly child support payments of $131. Comando failed to do so as required and currently owes more than $10,000.
The defendant faces up to 2 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence report by the U.S. Probation Office.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General.
New Orleans Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that JORGE BOLANOS, age 33, of New Orleans, has pleaded guilty to one count of Conspiracy to Distribute One Kilogram or more of Cocaine.
JORGE BOLANOS admitted that in April 2017, he attempted to purchase approximately one kilogram of cocaine hydrochloride from co-defendant LEONARDO CASTILLO. Co-defendant GABRIEL CARRETO-SANCHEZ received that cocaine from CASTILLO in Houston, Texas, intending to transport it to BOLANOS in New Orleans. However, CARRETO-SANCHEZ was stopped by members of the Federal Bureau of Investigation on the way back to New Orleans. FBI Agents searched CARRETO-SANCHEZ’s vehicle and seized the kilogram of cocaine hidden inside the vehicle.
JORGE BOLANOS faces a mandatory minimum sentence of five years imprisonment, and a maximum term of imprisonment of forty years, a fine of up to $5,000,000, at least four years supervised release after imprisonment, and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
New Orleans Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Duane A. Evans announced that DEVIN WILLIAMS, age 23, of New Orleans, was charged yesterday in a two-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, DEVIN WILLIAMS was found in possession of a Taurus 9mm PT111 firearm on August 29, 2016 and a .40 caliber Smith and Wesson firearm on November 6, 2017. DEVIN WILLIAMS had previously been convicted of aggravated battery in Orleans Parish Criminal Court.
If convicted, DEVIN WILLIAMS faces a maximum term of imprisonment of ten years on each count, 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 an 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 Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
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.
New Mexico Man Sentenced to 15 Years in Prison for Directing Computer Attacks Against Websites of Dozens of Victims and for Firearms ChargesRead the Press Release
A New Mexico man was sentenced yesterday in St. Paul, Minnesota, for directing computer attacks against the websites of his prior employers, business competitors, law enforcement, and the Minnesota State Courts system, as well as for felon-in-possession of a firearm charges. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division; United States Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Jill Sanborn of the Federal Bureau of Investigation-Minneapolis Field Office made the announcement.
JOHN KELSEY GAMMELL was sentenced to serve 15 years in prison by District Judge Wilhelmina M. Wright of the District of Minnesota. GAMMELL pleaded guilty on January 17, 2018, to one count of conspiracy to cause intentional damage to a protected computer and two counts of being a felon-in-possession of a firearm.
“Gammell’s attacks on the websites of his victims had real consequences to small businesses, educational institutions, government entities, and others - for no reason other than that Gammell wanted to cause them harm,” said Assistant United States Attorney Timothy Rank. “Gammell used his technical knowledge and the internet’s cloak of anonymity to commit his crimes, all while knowing the damage he was causing and believing he would never be caught. Because of the FBI’s excellent investigation, he was wrong, and today's sentence sends a strong message of deterrence to others who consider committing similar crimes.”
According to admissions made in connection with his plea, from at least in or about July 2015 through in or about March 2017, GAMMELL engaged in a campaign of distributed denial of service (DDoS) attacks on websites throughout the United States. A DDoS attack is a malicious attempt to disable or interrupt service to a computer or website, usually by causing large amounts of Internet traffic to be directed to the computer or website. GAMMELL directed DDoS attacks at a number of victims’ websites, including websites operated by companies for which he worked previously, companies that declined to hire him, competitors of his business, and websites for law enforcement agencies and courts, among others.
GAMMELL admitted that he caused DDoS attacks by using computer programs on his own computers, as well as by directing “DDoS-for-hire” companies, from which he purchased services, to launch the DDoS attacks. He initiated attacks using these DDoS-for-hire companies against dozens of victims, including but not limited to Washburn Computer Group, the Minnesota State Courts, Dakota County Technical College, Minneapolis Community and Technical College, Hennepin County, and others. GAMMELL took a variety of steps to avoid detection and circumvent his victims’ DDoS attack mitigation efforts, such as using IP address anonymization services to mask his identity and location, using cryptocurrency in payment for DDoS-for-hire services, using multiple DDoS-for-hire services simultaneously to amplify his attacks, using spoofed emails to conceal his conduct, and using encryption and drive-cleaning tools to conceal digital evidence of his conduct on his computers.
GAMMELL, who is a convicted felon, also admitted that while living and working a temporary job in Colorado, he possessed parts for use in the building of AR-15 assault rifles, including upper and lower receivers, a pistol grip, a trigger guard, 15 high-capacity magazines, a buttstock, a buffer tube, as well as 420 rounds of 5.56 x 45mm full metal jacket rifle ammunition. He further admitted that he possessed a Heckler & Koch P2000 handgun; a Springfield Armory model 1911-A1, .45 caliber handgun; as well as hundreds of rounds of ammunition in New Mexico, where he had his permanent residence.
This case was investigated by the FBI’s Minneapolis Field Office.
Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. The U.S. Attorney’s Offices for the District of Colorado and the District of New Mexico also provided substantial assistance in this matter.
Defendant Information:
JOHN KELSEY GAMMELL, 55
Las Cruces, N.M.
Convicted:
- Conspiracy to commit intentional damage to a protected computer, 1 count
- Felon in possession of a firearm, 2 counts
Sentenced:
- 180 months in prison
- Five years of supervised release
- Restitution amount will be determined at a later date
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
New Brunswick Man Pleads Guilty to Importing Illegally-Harvested Moose Antlers and HideRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Daniel F. Dyer, 57, of Plaster Rock, New Brunswick, Canada pled guilty yesterday in U.S. District Court to importing illegally-taken moose antlers and a hide.
According to court records, on September 28, 2013, Daniel Dyer, a Canadian outfitter and guide, arranged for Richard Eaton, a West Virginia resident, to unlawfully harvest a moose in New Brunswick using a license issued to a New Brunswick resident. Dyer later brought the hide and antlers of the moose through Maine. Dyer delivered the hide to a taxidermist in Pennsylvania and the antlers to Eaton in West Virginia. In 2014, Eaton was convicted in federal court of receiving the illegally-taken moose.
The defendant faces up to 5 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence report by the U.S. Probation Office.
The investigation was conducted by the U.S. Fish and Wildlife Service and the Wildlife Enforcement Division of Environment Canada (New Brunswick).
Morgan City man sentenced to 63 months in prison for possessing child pornographyRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Morgan City man was sentenced Thursday to five years and three months in prison for using the internet to download and possess child pornography.
Joshua Landry, 40, of Morgan City, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of receiving child pornography. He was also sentenced to serve 10 years of supervised release following his incarceration, and upon his release from custody he will be required to register as a sex offender. According to the October 26, 2017 guilty plea, law enforcement agents identified Landry as downloading child pornography to an electronic device in his home. Agents searched Landry’s home on February 8, 2017, and found Landry’s cell phone, which contained child pornography videos. Landry also admitted to agents that he downloaded child pornography.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 262-2164.
The FBI conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Monongalia County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jason Perry, of Morgantown, West Virginia, was sentenced today to 21 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Perry, age 36, pled guilty to one count of “Unlawful Possession of a Firearm” in January 2018. Perry admitted to illegally possessing 9mm pistol in Monongalia County in March 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
McKinney Man Pleads Guilty to Scheme to Defraud Investors to Support Lavish LifestyleRead the Press Release
DALLAS — Gary Ronald Morris, 69, of McKinney, Texas, appeared in federal court yesterday before U.S. Magistrate Judge Rene Toliver and pleaded guilty to one count of wire fraud, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The filed Information alleged that during the period from at least 2008 through 2016, Morris owned and operated Greystone Digital Technologies, Inc. and Kiboga Systems Inc., based in Addison, Texas and registered in the state of Texas. Morris represented that Greystone developed and manufactured large bore cargo scanners capable of scanning cargo containers, and that Kiboga developed and maintained software that operated the large bore cargo scanners. It was also alleged that Morris falsely represented to investors that he completed his design and had actually built a fully functional “cargo scanner ”, and that this new “cargo scanner” had been built, tested and demonstrated a capacity to successfully scan vehicles, trucks, cargo containers, and other items for the detection of drugs, explosives and other contraband. In furtherance of the scheme, Morris made false representations to investors that he needed and used investor funds to finance the continued development of the software program for the cargo scanner.
The wire fraud count also alleged that the vast majority of the investor funds were used for Morris’ personal expenses and to support his lavish lifestyle. Among other things, Morris used investor funds for travel, to purchase luxury automobiles and two residences with a total value of nearly $1 million and as the source of funds for hundreds of thousands of dollars in cash withdrawals.
In his filed plea papers, Morris admitted that he engaged in a scheme to defraud investors for an extended period, from at least 2008 through 2016. Morris also admitted that as part of this scheme he made a series of false representations to investors in order to conceal from investors the true state of the business of Greystone Digital Technologies. Morris deceived investors in order to avoid demands for refunds of invested funds or possible lawsuits from investors. Specifically, Morris used a fraudulent email to falsely represent to investors that Greystone employees were physically on site and working on the cargo scanner project at the Federal Express facility in Memphis, Tennessee. In this fraudulent email, Morris also falsely represented that Greystone employees were engaged in ongoing activity with Federal Express employees focused on the development of a cargo scanner.
Morris faces a maximum penalty of imprisonment not to exceed twenty years and a $250,000 fine. Restitution could also be ordered. Sentencing has not been set.
The investigation was conducted by the Wichita Falls office of the Federal Bureau of Investigation and Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
# # #
MS-13 Member Pleads Guilty to RICO ConspiracyRead the Press Release
BOSTON – An MS-13 member pleaded guilty yesterday in federal court in Boston to racketeering conspiracy.
Modesto Ramirez, a/k/a “Snoopy,” 29, a Honduran national, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Aug. 21, 2018.
After a multi-year investigation, Ramirez was one of dozens of alleged leaders, members, and associates of MS-13 named in a superseding indictment unsealed in January 2016 that targeted MS-13’s criminal activities in Massachusetts. Ramirez is the 47th defendant to be convicted as part of that ongoing prosecution.
Ramirez was a member of the Trece Locos Salvatrucha or TLS clique of MS-13. The evidence against Ramirez included a secretly-taped recording made by a cooperating witness in which Ramirez discussed his intention to kill a gang rival.
At today’s hearing, the Court accepted Ramirez’s guilty plea but deferred acceptance of the plea agreement until the sentencing hearing. Under the terms of the proposed plea agreement, Ramirez will be sentenced to 97 months in prison. Ramirez will also be subject to deportation upon the completion of his sentence.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
The remaining defendants charged in this case are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Long Island Man Pleads Guilty to Conspiracy to Distribute OxycodoneRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Terrance Belford pleaded guilty to conspiracy to distribute oxycodone, a Schedule II controlled substance. Belford was arrested in June 2017 for his participation in an oxycodone distribution ring active on Long Island and elsewhere in 2016. The guilty plea was entered before United States District Judge Joanna Seybert. When sentenced, Belford faces up to 30 years in prison and a fine of up to $2 million.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, announced the guilty plea.
“Using stolen prescription forms to acquire his drug supply, Belford distributed opioids in our community and beyond, fueling the opioid crisis to his financial benefit,” stated United States Attorney Donoghue. “This Office will continue to vigorously prosecute opioid dealers like the defendant who are motivated by greed and have no respect for the lives of others.” Mr. Donoghue expressed his gratitude to all the alert and responsible pharmacists nationwide, including those in Enterprise, Alabama, whose reports of the suspicious prescription forms presented by Belford and his co-conspirators were integral to the success of this prosecution.
“Belford didn’t have too much to hide since he boldly posted his drug trafficking activities on social media,” stated DEA Special Agent-in-Charge Hunt. “Too often, criminal organizations try to hide behind new communication platforms with false bravado that no one is watching, but in this case, law enforcement was watching. Today’s plea is a result of drug law enforcement’s commitment to investigating those who enable drug addiction and misuse.”
According to court filings and facts presented during the plea proceeding, beginning in late 2016 and continuing into early 2017, the DEA learned of a large number of New York State prescription forms that had been stolen and later filled at various pharmacies located within the Eastern District of New York, as well as in North Carolina, South Carolina and Alabama, among other locations. Belford and his co-conspirators filled out the stolen prescription forms and used them to obtain controlled substances, typically 30 milligram oxycodone tablets. They then sold the fraudulently acquired opioids at a substantial profit.
In December 2016, Belford attempted to fill one of the stolen prescriptions in Enterprise, Alabama, under a false name. An employee of the pharmacy refused to fill the prescription and called the local police, resulting in Belford’s arrest. Further investigation revealed that, via his Facebook account, Belford boasted of his ability to obtain multiple controlled substances unlawfully, including oxycodone, Percocet and powder cocaine. Belford stated on Facebook that, if he had not been intercepted in Alabama, he would have made up to $2,000 for each forged prescription through the resale of oxycodone.
This case was investigated by the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department, Suffolk County Police Department, Port Washington Police Department and Internal Revenue Service.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney J. Matthew Haggans is in charge of the prosecution.
The Defendant:
TERRANCE BELFORD
Age: 36
Bellport, New YorkE.D.N.Y. Docket No. 17-CR-399 (JS)
Local Union Official Sentenced to Five Years’ Imprisonment for Extorting Business Owner into Hiring Union MembersRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Roland Bedwell, the business manager of United Plant and Production Workers Local 175, was sentenced by United States District Judge Nicholas G. Garaufis to five years’ imprisonment and three years’ supervised release, following his guilty plea to extorting a construction business owner. Bedwell was arrested on the charges in December 2016 and pleaded guilty in August 2017.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor, Office of Inspector General (DOL OIG), announced the sentence.
“Unions exist to protect workers, not to serve as vehicles for extortion. This sentence ends Bedwell’s career of extorting business owners and sends a clear message that others who attempt do so will suffer the same fate,” stated United States Attorney Donoghue. “This Office, working closely with our law enforcement partners, is committed to protecting hard-working business owners and ensuring that unions are not turned into criminal organizations.”
“For many of the cases investigated by our FBI New York Joint Organized Crime Task Force, the general public doesn’t see the real life impact of organized crime groups and their criminal acts,” stated FBI Assistant Director-in-Charge Sweeney. “But this case illustrates how extortion and threats stopped progress at a public works project at one of the busiest airports in our region. The subject boasted about how he didn’t understand why he wasn’t in jail. After an outstanding investigation with our law enforcement partners, that’s exactly where he is going.”
“As the top union official of United Plant and Production Workers Local 175, Business Manager Roland Bedwell abused his position by threatening business owners with physical harm if they did not sign collective bargaining agreements with Local 175,” stated DOL OIG Special Agent-in-Charge Mikulka. “The U.S. Department of Labor Office of Inspector General will continue to work with our law enforcement partners to ensure that union officials lawfully represent the interests of their members and that businesses can operate in a fair and just environment, free from illegal extortionate demands.”
According to court filings and statements made in court, the extortion for which Bedwell was sentenced today was partly captured during a recorded conversation the defendant had at a restaurant in Queens with an individual who owned a construction business (the “victim’). Bedwell explained to the victim the financial pain he had previously inflicted on others when, for example, a delivery truck transporting trees was blocked causing the trees to die. Bedwell then warned the victim that if he did not employ Local 175 members, Bedwell would use a crew of 15 “ex-military” men, who were unafraid to serve time in prison, to interfere with the victim’s business, resulting in the loss of a “tremendous amount of money.” Bedwell added, “Honestly, whatever they do or don’t do – pretty much up to them . . . either you’re gonna sign the contract . . . or these boys are gonna do it again.” The business owner relented, making his workers sign with Local 175.
In connection with his guilty plea, Bedwell also admitted that he attempted to extort another construction business owner, telling him that he would not get asphalt delivered to a LaGuardia Airport job site if he did not agree to employ Local 175 members. When the owner refused to sign an agreement with Local 175, Bedwell and his co-conspirators stopped the asphalt-delivery trucks, harassed the drivers and slashed their tires.
The extortion and attempted extortion were part of a pattern in which Bedwell referred to his ties to a member and then-associate of the Gambino organized crime family of La Cosa Nostra, as well as his own reputation as a “muscle man,” to intimidate businesses into signing labor contracts with Local 175. Bedwell’s co-conspirators also physically assaulted workers associated with contractors who refused to sign with Local 175.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia Shihata, Andrey Spektor and Nicholas J. Moscow are in charge of the prosecution.
The Defendant: ROLAND BEDWELL
Age: 57
Residence: Freeport, New YorkE.D.N.Y. Docket No. 16-CR-608 (S-2) (NGG)
Local Builder Heads to Party Cove: Leaves Investors in His WakeRead the Press Release
St. Louis, MO - Paul Creager, 39, of St Louis County, Missouri was sentenced to 60 months imprisonment for defrauding two investors in his failed construction business during 2016. Creager pleaded guilty to two counts of wire fraud on December 21, 2017 and appeared before Chief Judge Rodney W. Sippel in St. Louis today for sentencing.
According to court records, Creager solicited $724,000 from two investors in exchange for equity interests in his construction firm. Creager admitted that during his negotiations with the victims, he presented false financial records which omitted a massive debt owed by his company to a hard money lender which lender possessed a secured interest in virtually all of Creager’s business and personal assets. Soon after receiving victims’ investments, Creager’s business was not able to meet its financial obligations and stopped operating. By mid-2017, Creager’s primary lender foreclosed on virtually all of his assets rendering the investors’ equity stakes in his business worthless. While Creager’s business was failing and his subcontractors and vendors went unpaid, Creager maintained a luxurious lifestyle which included homes in Wildwood and the Lake of the Ozarks as well as a host of vehicles including a Bentley automobile and a 52-foot yacht.
"When you invest in a business, you are entitled to an honest representation of the financial health of the business, and to know how your money will be spent," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Paul Creager knowingly defrauded his investors so he could use their money to live a lavish lifestyle."
In addition to the term of imprisonment, Creager will serve three years of supervised release after release from imprisonment. The Court also ordered Creager to repay the victims $724,024.14 pursuant to the Mandatory Victims Restitution Act. The U.S. Attorney’s office has seized numerous items of Creager’s personal property and will seek to liquidate the seized assets to help pay restitution to the victims.
Creager faces a second fraud Indictment which was filed in 2018 alleging fraud in the solicitation of another investor of more than $2,000,000 as well as fraud upon a title agency in connection with the closing of one of his properties. Creager has pleaded not guilty to those charges which have yet to be resolved.
William Glaser, a former financial advisor and an associate of Creager, is accused in a third case of wire fraud for defrauding his clients in the course of raising more than $1,000,000 in capital for Creager’s business. Glaser is not implicated in either of the criminal cases against Creager nor is Creager implicated in the criminal case against Glaser. Glaser has pleaded not guilty to the criminal charges against him.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The St. Louis division of the FBI investigated this case. Tom Albus handled the case for the U.S. Attorney’s office.
Lawrence County Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that a Lead, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on May 15, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
AJ Bradshaw, age 31, was sentenced to 96 months in custody, followed by 3 years of supervised release and $100 special assessment to the Federal Crime Victims Fund.
Bradshaw was indicted for Possession of Unregistered Firearms, Prohibited Person in Possession of Firearm, Prohibited Possession of Explosives, and Possession with Intent to Distribute a Controlled Substance by a federal grand jury on September 12, 2017. He pled guilty to Count II on January 5, 2018.
On August 26, 2017, the Lawrence County Sheriff’s Office conducted a traffic stop on a vehicle operated by Bradshaw. Inside the vehicle, law enforcement found numerous firearms, methamphetamine, marijuana, $12,400 cash, and other drug paraphernalia. Law enforcement further searched the defendant’s residence and seized additional firearms, drugs and drug paraphernalia. A total of 41 firearms were seized.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Taskforce, South Dakota Division of Criminal Investigations, Rapid City Police Department, Lawrence County Sheriff’s Office, and Butte County Sheriff’s Office. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Bradshaw was immediately turned over to the custody of the U.S. Marshals Service.
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.
Las Vegas, Nevada Man Sentenced to Prison for E-Mail ThreatsRead the Press Release
COUNCIL BLUFFS, Iowa – On May 17, 2018, Glen S. Davis, age 48, of Las Vegas, Nevada, was sentenced by United States District Court Judge Stephanie M. Rose to one year and one day in prison for interstate communication of a threat, announced United States Attorney Marc Krickbaum. Following his prison term, Davis will serve three years of supervised release.
Davis pleaded guilty for sending emails that contained threats to injure another person. Davis sent the threatening e-mails to an individual who ordered the repossession of a vehicle leased by Davis, due to non-payment.
This matter was investigated by the Carter Lake Police Department and Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Kingsmen President, Regional President, and Member Convicted by A Federal Jury of Murder and Racketeering Following Four Month TrialRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - Following a four-month trial, a federal jury in Buffalo, New York, has convicted three leaders and members of the Kingsmen Motorcycle Club (KMC), including the National President, of multiple charges for their roles in a major racketeering operation that involved violence and murder.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney James P. Kennedy Jr. for the Western District of New York and Special Agent in Charge Gary Loeffert of FBI Buffalo made the announcement.
David Pirk, 67, KMC National President, and Andre Jenkins aka Little Bear, 39, KMC member and Nomad, were convicted of RICO conspiracy, possession of firearms in furtherance of crime of violence, murder in aid of racketeering, possession and discharge of a firearm in furtherance of a crime of violence, using and maintaining premises for drug dealing and possession of firearms in furtherance of a drug trafficking crime. Jenkins was also convicted of being a felon in possession of a firearm.
Timothy Enix, aka Blaze, 58, KMC member and Florida/Tennessee Regional President, was convicted of RICO conspiracy, possession of firearms in furtherance of a crime of violence, using and maintaining premises for drug dealing and possession of firearms in furtherance of a drug trafficking crime.
“The defendants and their associates transformed the Kingsmen Motorcycle Club into a vicious gang that terrorized the Buffalo area, engaging in senseless murders, brutal violence, robberies, and drug trafficking,” said Acting Assistant Attorney General Cronan. “But after today’s verdict, the Kingsmen Motorcycle Club’s reign of terror is coming to an end. The U.S. Department of Justice and our partners will aggressively pursue violent gangs wherever they are found and bring them to justice.”
“Today’s verdict demonstrates that the rule of law, as enforced by the dedicated men and women of this Office together with our partners in federal, state, and local law enforcement, is more powerful than even the murderous leaders of an outlaw biker gang,” said U.S. Attorney Kennedy. “Through the tireless work of our trial team, led by Assistant U.S. Attorneys Joe Tripi, Chief of the Strategic Operations and Prosecutions Section, and Brendan Cullinane, of the Office’s Narcotics and Violent Crime Section, together with prosecutor Marianne Shelvey of DOJ’s Organized Crime and Gang Section and case agents, HSI Special Agent Gregory Mango and FBI Special Agent Steven Donnelly, the full truth has finally been revealed. The ringleaders of the Kingsmen Motorcycle Club have been exposed as the murderous, drug-dealing, gun-toting, misogynistic thugs that they are, and all of those responsible for the senseless murders of Paul Maue and Daniel ‘DJ’ Szymanski have been finally brought to justice.”
“Motorcycle gangs have evolved over 70 years from bar-room brawlers to somewhat sophisticated criminals,” said FBI Special Agent in Charge Loeffert. “The Kingsmen's leadership not only voiced a desire to turn its club into a “one-percenter” gang, it acted on that desire when Paul Maue and DJ Szymanski were killed. Those murders told everyone that the Kingsmen do not want to be aligned with the vast majority of riders who are law-abiding citizens. With today’s verdicts, the repeated and regular acts of violence so inculcated into the culture of the Kingsmen Motorcycle Club are over.”
“The guilty verdicts issued today are a powerful example of justice being served against a ruthless and violent criminal gang,” said HSI Special Agent in Charge Kevin Kelly. “Cases like these demonstrate that the combined resolve of all of the participating law enforcement agencies is a vital force against criminal groups.”
According to court documents and evidence presented by the government at trial, beginning in 2013, certain KMC members, including defendant David Pirk, wanted to establish the KMC as a 1 percent club. The 1 percent refers to a previous statement by a representative of the American Motorcycle Association that 99 percent of motorcyclists were law-abiding citizens with the remaining 1 percent engaged in certain activities such as drug and firearm trafficking, and acts of violence. The defendants, and others, participated in, directly and indirectly, acts of murder, assault, robbery, kidnapping, drug trafficking, obstruction of justice, and witness tampering.Acts of violence committed by the KMC include:
• In September 2014, Pirk told defendant Jenkins to “take care of it.” This was in reference to KMC members Paul Maue and Daniel “DJ” Szymanski who were murdered behind the North Tonawanda KMC Chapter clubhouse on Sept. 6, 2014.
• On June 7, 2013, KMC forcibly shut down the Springville Chapter and strip members of their colors because they were non-compliant members. Brandishing firearms, KMC members struck a victim in the head with a blunt object and stole items from the Springville clubhouse. They then used bleach to clean areas where the victim bled and cut and removed portions of the rug, which contained blood.
• On Sept. 12, 2009, a female victim was punched repeatedly in the face by a KMC member and then held against her will for three days to conceal her facial injuries from police.
Sentencing is set for Sept. 25 before U.S. District Court Judge Elizabeth A. Wolford, who presided over the trial of the case.
The investigation was led by the FBI’s Safe Streets Task Force. Assisting in the investigation were the FBI Knoxville, Tennessee and Jacksonville, Florida Field Offices; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the Town of Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph Tripi and Brendan Cullinane for the Western District of New York prosecuted the case.Kingsmen Motorcycle Club Gang President, Regional President, and Member Convicted by A Federal Jury of Murder and RacketeeringRead the Press Release
Following a four-month trial, a federal jury in Buffalo, New York, has convicted three leaders and members of the Kingsmen Motorcycle Club (KMC), including the National President, of multiple charges for their roles in a major racketeering operation that involved violence and murder.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney James P. Kennedy Jr. for the Western District of New York, Special Agent in Charge Gary Loeffert of FBI Buffalo, and Special Agent in Charge Kevin Kelly of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
David Pirk, 67, KMC National President, and Andre Jenkins aka Little Bear, 39, KMC member and Nomad, were convicted of RICO conspiracy, possession of firearms in furtherance of crime of violence, murder in aid of racketeering, possession and discharge of a firearm in furtherance of a crime of violence, using and maintaining premises for drug dealing and possession of firearms in furtherance of a drug trafficking crime. Jenkins was also convicted of being a felon in possession of a firearm.
Timothy Enix, aka Blaze, 58, KMC Nomad, National Secretary/Treasurer, and Florida/Tennessee Regional President, was convicted of RICO conspiracy, possession of firearms in furtherance of a crime of violence, using and maintaining premises for drug dealing and possession of firearms in furtherance of a drug trafficking crime.
“The defendants and their associates transformed the Kingsmen Motorcycle Club into a vicious gang that terrorized the Buffalo area, engaging in senseless murders, brutal violence, robberies, and drug trafficking,” said Acting Assistant Attorney General Cronan. “But after today’s verdict, the Kingsmen Motorcycle Club’s reign of terror is coming to an end. The U.S. Department of Justice and our partners will aggressively pursue violent gangs wherever they are found and bring them to justice.”
“Today’s verdict demonstrates that the rule of law, as enforced by the dedicated men and women of this Office together with our partners in federal, state, and local law enforcement, is more powerful than even the murderous leaders of an outlaw biker gang,” said U.S. Attorney Kennedy. “Through the tireless work of our trial team, led by Assistant U.S. Attorneys Joe Tripi, Chief of the Strategic Operations and Prosecutions Section, and Brendan Cullinane of the Office’s Narcotics and Violent Crime Section, together with prosecutor Marianne Shelvey of DOJ’s Organized Crime and Gang Section and case agents, HSI Special Agent Gregory Mango and FBI Special Agent Steven Donnelly, the full truth has finally been revealed. The ringleaders of the Kingsmen Motorcycle Club have been exposed as the murderous, drug-dealing, gun-toting, misogynistic thugs that they are, and all of those responsible for the senseless murders of Paul Maue and Daniel ‘DJ’ Szymanski have been finally brought to justice.”
“Motorcycle gangs have evolved over 70 years from bar-room brawlers to somewhat sophisticated criminals,” said FBI Special Agent in Charge Loeffert. “The Kingsmen's leadership not only voiced a desire to turn its club into a “one-percenter” gang, it acted on that desire when Paul Maue and DJ Szymanski were killed. Those murders told everyone that the Kingsmen do not want to be aligned with the vast majority of riders who are law-abiding citizens. With today's verdicts, the repeated and regular acts of violence so inculcated into the culture of the Kingsmen Motorcycle Club are over.”
“The guilty verdicts issued today are a powerful example of justice being served against a ruthless and violent criminal gang,” said HSI Special Agent in Charge Kelly. “Cases like these demonstrate that the combined resolve of all of the participating law enforcement agencies is a vital force against criminal groups.”
According to court documents and evidence presented by the government at trial, beginning in 2013, certain KMC members, including defendant David Pirk, wanted to establish the KMC as a one percent club. The one percent refers to a previous statement by a representative of the American Motorcycle Association that 99 percent of motorcyclists were law-abiding citizens with the remaining one percent engaged in certain activities such as drug and firearm trafficking, and acts of violence. The defendants, and others, participated in, directly and indirectly, acts of murder, assault, robbery, kidnapping, drug trafficking, obstruction of justice, and witness tampering.
Acts of violence committed by the KMC include:
- In September 2014, Pirk told defendant Jenkins to “take care of it.” This was in reference to KMC members Paul Maue and Daniel “DJ” Szymanski who were murdered behind the North Tonawanda KMC Chapter clubhouse on Sept. 6, 2014.
- On June 7, 2013, KMC forcibly shut down the Springville Chapter and strip members of their colors because they were non-compliant members. Brandishing firearms, KMC members struck a victim in the head with a blunt object and stole items from the Springville clubhouse. They then used bleach to clean areas where the victim bled and cut and removed portions of the rug, which contained blood.
- On Sept. 12, 2009, a female victim was punched repeatedly in the face by a KMC member and then held against her will for three days to conceal her facial injuries from police.
- As part of the enterprise, members of the organization used women to deal narcotics and encouraged prostitution in the clubhouses as a way to entice members and the public to come to the clubhouses to further their profits.
Sentencing is set for Sept. 25 before U.S. District Court Judge Elizabeth A. Wolford, who presided over the trial of the case.
The investigation was led by the FBI’s Safe Streets Task Force. Assisting in the investigation were the FBI Knoxville, Tennessee and Jacksonville, Florida Field Offices; HSI Buffalo; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the Town of Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department and the Hamburg Police Department. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph Tripi and Brendan Cullinane for the Western District of New York prosecuted the case.
- In September 2014, Pirk told defendant Jenkins to “take care of it.” This was in reference to KMC members Paul Maue and Daniel “DJ” Szymanski who were murdered behind the North Tonawanda KMC Chapter clubhouse on Sept. 6, 2014.
Kinderhook Podiatrist Sentenced for Health Care FraudRead the Press Release
ALBANY, NEW YORK – Perrin D. Edwards, D.P.M., age 65, of Kinderhook, New York, was sentenced today to 1 year of probation, 50 hours of community service, and a $5,000 fine for committing health care fraud.
The announcement was made by United States Attorney Grant C. Jaquith; Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG).
As part of his guilty plea before United States District Judge Mae A. D’Agostino, Edwards admitted that he operated a podiatry practice with offices in Hudson and Albany, New York, and caused false and fraudulent claims to be submitted to Medicare and private insurance companies for podiatric medical services that he had not performed or that he knew would not be covered by insurance.
Edwards admitted that he performed routine foot care services that were not covered by insurers, and falsely represented that nail debridement services were performed for some patients. Nail debridement is the process of removing dead and diseased portions of a toenail in order to significantly reduce its thickness and length, with the aim of allowing the patient to move around without pain.
Edwards also submitted claims to insurers for the trimming of normal toenails for patients Edwards knew did not suffer from any systemic condition such that Medicare and other insurers would cover his services. In connection with these fraudulent claims, Edwards caused false information to be entered into the patients’ medical records indicating that the patients suffered from systemic conditions, and had reported symptoms that were not present.
In connection with a related False Claims Act civil settlement, Edwards has paid $410,000 to the United States and admitted that he submitted, or caused others to submit, false claims for payment to Medicare.
The criminal case was investigated by the FBI and HHS-OIG, and was prosecuted by Assistant United States Attorneys Richard Belliss and Joseph Giovannetti. The United States was represented in the civil case by Assistant United States Attorney Adam J. Katz.
Joplin Man Sentenced to 25 Years for Jewelry Store Armed RobberyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for the armed robbery of a local jewelry store and a carjacking.
Paul Lloyd, 34, of Joplin, was sentenced by U.S. District Judge Roseann Ketchmark to 25 years in federal prison without parole. The court also ordered Lloyd to pay $7,615 in restitution.
On Jan. 19, 2017, Lloyd pleaded guilty to one count of armed robbery, one count of being a felon in possession of a firearm, one count of discharging a firearm during a crime of violence and one count of transporting a stolen vehicle across state lines.
According to court documents, Lloyd entered Select Jewelers in Joplin on March 17, 2016. He approached an employee and asked to see several pieces of jewelry, selected a necklace for purchase, and walked to the cash register. Lloyd then produced a firearm and demanded that the clerk “give me all the jewelry.” Lloyd then stated “I’m not kidding,” and discharged the firearm into the wall. The clerk opened the cash register and gave him the money; Lloyd grabbed several pieces of jewelry from a display case and left the store.
The bullet fired by Lloyd penetrated the wall of the jewelry store and traveled into the adjoining restaurant, which was then occupied by a number of patrons. No one suffered any injuries.
Two days later, on March 19, 2016, Lloyd stole a Ford Mustang from its owner at gunpoint. The owner of the Mustang told law enforcement that Lloyd claimed his girlfriend had kicked him out of his home and that he needed a ride. The owner of the Mustang drove Lloyd to the intersection of Central and McKee in Joplin, where Lloyd asked to be dropped off. When the owner of the Mustang pulled to the side of the road, Lloyd produced a firearm and ordered him to get out. Lloyd then drove the vehicle away.
Law enforcement officers were able to determine that the vehicle was in Cherokee County, Kan., by tracing the location of the victim’s cell phone, which had been left in the Mustang. Cherokee County Sheriff’s deputies located the vehicle and attempted to conduct a traffic stop. Lloyd led the deputies on a chase until he crashed the vehicle into a fence and fled on foot. Deputies were able to apprehend Lloyd after his foot became entangled in a barbed wire fence and they deployed a taser. Deputies recovered a loaded SCCY 9mm firearm next to the driver’s side door of the Mustang.
Under federal law, it is illegal for anyone convicted of a felony to be in possession of any firearm or ammunition. Lloyd, who was released from prison six months prior to the jewelry store robbery, has three prior felony convictions for assault with a dangerous weapon, to prior felony convictions for attempting to elude a police officer, three prior felony convictions for tampering with a motor vehicle, and prior felony convictions for stealing a motor vehicle, burglary, escape from custody, running a roadblock and placing a bodily fluid on a police officer.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Joplin, Mo., Police Department, the Cherokee County, Kan., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jamaican Citizen Sentenced to 26 Months in Prison for Re-entering U.S. after being Deported Three TimesRead the Press Release
PHILADELPHIA – Vivian George Stewart, 49, who has used five aliases in his attempts to enter or remain in the United States, was sentenced May 16 to 26 months in prison for re-entering the country illegally, announced United States Attorney William M. McSwain. Stewart pled guilty in February.
Stewart had previously been convicted in 2006 of participating in a drug-trafficking conspiracy, and in 2009 of illegal reentry after deportation. In addition, Stewart has been deported on three separate occasions.
Most recently, Stewart was convicted of illegal reentry after deportation in the Southern District of Florida. Stewart was removed to Jamaica after serving his sentence, but he returned to the United States once again. In November 2017, the defendant was encountered in Philadelphia and identified from fingerprint analysis performed by agents with the Department of Homeland Security, Homeland Security Investigations, who concluded that Stewart had once again returned to this country unlawfully.
“This defendant has shown no regard for U.S. immigration laws and has been undeterred by prior criminal prosecution,” said U.S. Attorney McSwain. “This is a significant sentence and one that we hope will deter this kind of brazen disregard for U.S. law.”
The case was investigated by the Department of Homeland Security, Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Jennifer Jordan.
Irving Man Sentenced to 155 Months in Federal Prison for his Role in a String of Armed RobberiesRead the Press Release
DALLAS — An Irving man, David Rice, age 32, who admitted that he and his co-conspirator, Kevin Iles, committed the armed robberies of four grocery stores in June 2015, was sentenced Thursday by U.S. U.S. District Judge Jane J. Boyle to 155 months (13 years) in federal prison for conspiracy to commit Hobbs Act robbery and for a firearm offense related to the conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Rice pleaded guilty in July 2017, to one count of conspiracy to interfere with commerce by robbery and to one count of using, carrying and brandishing a firearm during and in relation to a crime of violence. He has been in custody since his arrest in October 2015.
According to the Factual Resume filed in the case, the two committed four armed robberies in Irving and Carrollton on June 4, 2015, at the following locations:
ALDI, Inc. 2926 North Beltline Road, Irving TX
TNL Superfoods 3113 North Beltline Road, Irving TX
Rainbow USA 2311 West Interstate Highway 20, Irving TX
Monaliza LLC 2625 Old Denton Road, Carrollton, Texas
All of these four robberies were committed in essentially the same manner, including Rice’s use and brandishing of a firearm to threaten and force store employees to comply with his demands. On June 4, 2015, Rice paid Iles cash from the robbery proceeds for Iles’ assistance in the above referenced robberies.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Irving Police Department. Assistant U.S. Attorneys Keith Robinson and Gary Tromblay prosecuted.
# # #
Inmate who Orchestrated Complex Tax Fraud Scheme from Multiple Corrections Facilities Sentenced to 8 Years in Federal PrisonRead the Press Release
PITTSBURGH, Pa. – A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 96 months of incarceration, followed by five years of supervised release, and payment of $246,170.03 in restitution, on his convictions for conspiracy to commit bank and mail fraud and conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Reginald Harris, 51.
According to information presented to the court, from around September 2009 through December 2012, Harris, while imprisoned on state offenses at SCI-Cresson and other correctional facilities, conspired with others to defraud the Internal Revenue Service by filing fraudulent tax returns and collecting refunds in the names of other people, many of whom were fellow inmates at state facilities. After his release from state prison, Harris was charged with a federal drug-related offense. When serving that sentence and while awaiting sentencing on the tax-related offenses, Harris continued to commit tax offenses while in federal custody at North East Ohio Corrections Center. While in federal custody, he arranged for the filing of fraudulent tax returns of other individuals in federal custody at NEOCC.
The Court concluded that Harris was the leader of the complex tax fraud scheme, and that he was responsible for the filing of hundreds of tax returns that sought hundreds of thousands of fraudulent refunds. He coordinated the scheme through several non-incarcerated individuals who established banks accounts, mailed the tax returns, and obtained the information for the tax returns. Harris also taught other inmates how to conduct the scheme.
Prior to imposing sentence, Judge Hornak recognized that Harris was the hub for a complicated and substantial tax fraud scheme that affected many people and was hard to detect. He further emphasized that Harris recruited others who did not appear predisposed to commit this type of crime without Harris’s substantial direction. Judge Hornak also described Harris’s substantial criminal history as a ‘buffet of criminal conduct’ that included a wide array of offenses involving fraud, theft, drug sales, and threats of violence, and expressed concern that a prison sentence alone seemed unlikely to deter Harris’s further criminal conduct.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended The Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service and the Department of Homeland Security – Homeland Security Investigations conducted the investigation that led to the prosecution of Harris.
Inmate Convicted of Conspiracy at Maryland’s Eastern Correctional InstitutionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal jury has convicted Ternell Lucas, a/k/a “T.L.,” a/k/a “Moon,” age 43, with racketeering at the Eastern Correctional Institution in Westover, Maryland. Lucas was found guilty of bribery conspiracy, bribery of a public employee, conspiracy to distribute and possess with intent to distribute suboxone and K2, and money laundering.
The conviction 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; and Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS).
The Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating since 1987 near Westover, in Somerset County, on Maryland’s Eastern Shore. ECI is a medium-security prison for men built as two identical compounds (East and West) on 620 acres, and housing more than 3,300 inmates. The East and West Compounds are further divided into Housing Units, 1 through 4 in the West and 5 through 8 in the East. Lucas was an inmate at ECI’s West Compound during the time of the conspiracy.
According to evidence presented at trial, from 2014 until October 5, 2016, correctional officers (COs) smuggled contraband into ECI, including narcotics, cell phones, pornographic DVDs, and tobacco. These items were distributed by inmates, and the COs managed the proceeds of the sales. The “going rate” for a CO to smuggle contraband into ECI was $500 per package, although some COs charged more and others charged less. According to evidence presented at trial, inmates and facilitators paid COs for smuggled contraband in cash, money orders, and through PayPal. Inmates were able to use contraband cell phones to pay COs directly using PayPal from within ECI. Inmates also received payments from other inmates for contraband through PayPal, often with the assistance of facilitators.
According to evidence presented at trial, Lucas acted as both a wholesaler and retailer of contraband and in the process made profits that far exceeded the profits that could be made by selling similar drugs on the street.
According to evidence presented at trial, ECI employees were required to pass through security screening at the entrance to ECI, but were able to hide contraband on their persons. Further, Cos took breaks during their shifts and returned to their cars to retrieve contraband. Once COs had the smuggled contraband inside the facility, they delivered it to: inmates in their cells; clerks’ offices, which were private offices within each housing unit where an inmate clerk worked; the officers’ dining room, where officers could interact with inmate servers and kitchen workers; and pre-arranged “stash” locations such as staff bathrooms, storage closets, laundry rooms, and other places where contraband could be hidden and then later retrieved by inmates.
Lucas faces a maximum sentence of 20 years in prison for the racketeering conspiracy, and for conspiracy to distribute and possess with intent to distribute drugs.
Correctional Officer Rozlyn Bratten, age 32, of Snow Hill, Maryland was acquitted of bribery conspiracy, and conspiracy to distribute and possess with intent to distribute K2.
United States District Judge Deborah K. Chasanow has scheduled sentencing for Lucas on August 13, 2018.
As of today’s conviction, 70 of the 80 defendants originally indicted in this case have pled guilty, including 14 of the 18 correctional officers who were charged.
United States Attorney Hur expressed appreciation to Secretary Moyer, whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation.
United States Attorney Hur commended the FBI, the U.S. Postal Inspection Service, the Department of Public Safety and Correctional Services, the Baltimore Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that MIGUEL ANGEL ORTIZ-GUEVARA, age 42, a citizen of Honduras, was charged yesterday in a one-count Indictment with illegal reentry of a removed alien after deportation, in violation of Title 8, United States Code, Section 1326(a).
According to the Indictment, on April 16, 2018, ORTIZ-GUEVARA was found to have reentered the United States after having been previously removed.
If convicted, ORTIZ-GUEVARA faces a term of imprisonment of up to two years, a fine of up to $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
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 United States Department of Homeland Security, Immigration and Customs Enforcement and the St. Tammany Parish Sheriff’s Department in investigating this matter. Assistant United States Attorney Spiro Latsis is in charge of the prosecution.
Holyoke Man Sentenced for Distributing HeroinRead the Press Release
BOSTON - A Holyoke man was sentenced yesterday in federal court in Springfield for distributing heroin.
Angel Baez, 28, was sentenced by U.S. District Court Judge Mark G. Mastroianni to four years in prison and three years of supervised release. In November 2017, Baez pleaded guilty to one count of distribution and possession with intent to distribute heroin.
Baez was arrested and charged following a five-month federal law enforcement investigation into drug trafficking in Springfield and Holyoke. Baez possessed and distributed heroin in Holyoke on April 20 and April 26, 2016.
According to court documents, Baez has three prior state court felony drug convictions, all including heroin: a 2014 conviction for possession with intent to distribute heroin and cocaine; a June 2011 conviction for distributing heroin; and a July 2011 conviction for possession with intent to distribute heroin and cocaine.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Health and Palliative Services of the Treasure Coast, Inc., the Hospice of Martin and St. Lucie, Inc., and Hospice of the Treasure Coast, Inc. Paid $2.5 Million to Settle False Claims AllegationsRead the Press Release
Health and Palliative Services of the Treasure Coast, Inc., The Hospice of Martin and St. Lucie, Inc., and Hospice of the Treasure Coast, Inc. have paid $2.5 million to settle allegations that they violated the False Claims Act by submitting false claims to Medicare for hospice patients.
“When individuals file false claims, they defraud Medicare’s hospice benefit program and divert taxpayer monies away from vital services,” stated U.S. Attorney for the Southern District of Florida Benjamin G. Greenberg. “The U.S. Attorney’s Office will continue to aggressively pursue all health care providers who violate statutory and regulatory provisions that are designed to protect the citizens who depend upon the legitimate care provided by government-sponsored healthcare programs.”
“Those who would exploit Medicare’s hospice benefit to boost their profits in lieu of patient care expropriate precious tax dollars intended for terminal patients in a time of great need,” said Special Agent in Charge Shimon R. Richmond of the U.S. Health and Human Services, Office of the Inspector General (HHS-OIG). “Our Special Agents will relentlessly pursue health care professionals who threaten the integrity of Federal health care programs."
According to the record, Health and Palliative Services of the Treasure Coast, Inc., The Hospice of Martin and St. Lucie, Inc., and Hospice of the Treasure Coast, Inc. (“the defendants”) are providers of hospice services, in that they, among other things, operate and maintain hospice care facilities and provide home hospice care and hospice services in assisted living facilities and skilled nursing homes throughout the "Treasure Coast” of Florida (an area located on the state's Atlantic coast, comprised of Indian River, St. Lucie, and Martin Counties). The settlement, recently made public, resolved allegations that between 2005 and 2011, the defendants knowingly submitted or caused to be submitted false claims to Medicare, for services to hospice patients who were not eligible for all or part of their hospice care under Medicare requirements. Medicare’s hospice benefit is available for patients who elect palliative treatment (medical care focused on the patient’s relief from pain and stress) for a terminal illness and have a life expectancy of six months or less if their disease runs its normal course. Patients who elect the hospice benefit forgo the right to curative care (medical care focused on treating the patient’s illness).
The allegations settled in this case arose from a lawsuit filed by whistleblowers, John Simons, M.D. and Lewis Cook, M.D., under the qui tam provisions of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistle blowers in this matter were medical doctors formerly employed by the defendants. The doctors alleged that the defendants’ hospice centers were submitting false claims to the United States in relation to hospice care for Medicare patients. The whistle blowers’ complaint alleged that the defendants billed for patients who were not terminally ill and thus did not qualify for the hospice benefit. The doctors received $476,373.73 from the announced recovery.
This case is captioned United States ex rel. John Simons and Lewis Cook v. Health and Palliative Services of the Treasure Coast, Inc., 11-14328-Martinez (S.D. Fla.). This matter was handled by Southern District of Florida Assistant U.S. Attorney Mark Lavine and HHS-OIG.
Related court documents may be found on the website of the District Court for the southern District of Florida at www.flsd.uscourts.gov. or http://pacer.flsd.uscourts.gov.
Harrison County man sentenced for health care fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Boyles, of Clarksburg, West Virginia, was sentenced today to six months incarceration and ordered to pay back more than $240,000 for health care fraud, United States Attorney Bill Powell announced.
Boyles, age 52, pled guilty to one count of “Health Care Fraud” in January 2018. Boyles admitted to falsely reporting symptoms related to his service in the United States Army Reserves to the Veterans Health Administration in order to fraudulently collect more than $224,000 in benefits. The crime occurred from 2008 to 2017 in Harrison County.
Boyles was ordered to pay $244,320.07 in restitution.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation investigated.
Senior U.S. District Judge Irene M. Keeley presided.Garland Man Pleads Guilty to Failing to Register as Sex OffenderRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Roger Edward Picard, 66, of Garland, Maine pled guilty yesterday in U.S. District Court to failing to register as a sex offender.
According to court records, in 1983, Picard was convicted in Massachusetts of Rape of a Child. As a result, he was required to register as a sex offender. On or before December 3, 2016, Picard moved to Garland but failed to register as required. He was arrested on March 1, 2018.
The defendant faces up to 10 years in prison, a $250,000 fine, and three years on supervised release. He will be sentenced after the completion of a presentence report by the U.S. Probation Office.
The investigation was conducted by the U.S. Marshals Service.
Fourth Bronx Man Sentenced in Tax Refund Conspiracy CaseRead the Press Release
SYRACUSE, NEW YORK – Ronnie E. Mejia, age 28, of the Bronx, New York, was sentenced yesterday to serve 120 months in prison for leading a conspiracy that attempted to defraud the U.S. Treasury of $2.8 million through the filing of false tax returns using stolen identities.
The announcement was made by United States Attorney Grant C. Jaquith; James Robnett, Special Agent in Charge, Internal Revenue Service (IRS)-Criminal Investigation New York Field Office; and Delany E. De Leon-Colon, Acting Inspector in Charge, U.S. Postal Inspection Service, Boston Division. In addition to his prison term of 10 years, Mejia was also sentenced to a 3-year term of supervised release following his release from incarceration and was ordered to pay restitution in the amount of $478,320.00. The sentence also included his guilty plea to two counts of aggravated identity theft.
In pleading guilty, Mejia admitted that he conspired to steal income tax refunds as part of a scheme involving fraudulent tax returns filed using stolen identities from residents of Puerto Rico. The IRS mailed refund checks generated from these false returns to residential locations (chosen by Mejia and his co-conspirators) of uninvolved residents in the Syracuse and Binghamton, New York areas. Mejia and three co-defendants were stopped by Town of Dewitt Police and U.S. Postal Inspectors on September 26, 2011, as they were in the process of stealing tax refund checks from mailboxes in Dewitt, New York. Mejia was driving a car that was later found to contain 8 unmailed fraudulent federal income tax returns as well as a laptop computer that was used to create false W-2 wage statements as part of the scheme to defraud the IRS. Following the discovery of the scheme, the IRS was able to prevent payment of many of the refunds. At sentencing it was determined that Mejia led the conspiracy and paid others for collecting addresses that were later used to file false tax returns using stolen identities.
Ronnie E. Mejia’s three co-defendants were previously sentenced as follows:
On May 2, 2018, Luis Morillo was sentenced to serve 45 months in prison to be followed by a 3-year term of supervised release and restitution.
On May 8, 2018, Cerrone Hall was sentenced to serve 60 months in prison to be followed by a 3-year term of supervised release and restitution.
On May 16, 2018, Jeffrey Carvajal was sentenced to serve 36 months in prison to be followed by a 3-year term of supervised release and restitution.
This case was investigated by Internal Revenue Service-Criminal Investigation (Syracuse, New York), the U.S. Postal Inspection Service (Syracuse, New York), and the Town of Dewitt Police Department, and was prosecuted by Assistant U.S. Attorney Richard Southwick.
Fort Edward Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
ALBANY, NEW YORK – James Mattison, age 46, of Fort Edward, New York, pled guilty yesterday to sexual exploitation of a child.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his guilty plea, Mattison admitted that in October 2016, he exchanged more than 7,100 text messages with a 13-year-old boy whom he had met online using the Live.me phone application. Mattison claimed to be a teenage girl named Megan Mattison, and coerced the victim into taking and sending sexually explicit photographs of himself by threatening to commit suicide if the victim refused.
Mattison, who has been in custody since his arrest on September 8, 2017, is scheduled to be sentenced by Senior United States District Judge Gary L. Sharpe on September 10, 2018. He faces at least 15 years and up to 30 years in prison, at least 5 years and up to lifetime post-imprisonment supervised release, and a maximum $250,000 fine. He will also have to register as a sex offender when he is released from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by the FBI, with assistance from the New York State Police and Washington County Probation Department, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Former U.S. Postal Worker and Dark Web Vendor Pleads Guilty to Conspiracy to Distribute Heroin, Cocaine, and BuprenorphineRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Cory Nicholas Skinner, age 32, of Pikesville, Maryland, pleaded guilty today to conspiracy to distribute and possess with intent to distribute 100 grams of more of heroin as well as quantities of cocaine and buprenorphine.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; and Postal Inspector in Charge Robert B. Wemyss of the United States Postal Inspection Service’s Washington Division.
According to his plea agreement, while investigating the death of a University of Arkansas police officer, a detective with the Conway (Arkansas) Police Department found an opened Priority Mail package shipped from Baltimore, Maryland, under the decedent’s head (the “Arkansas Package”).
During the United States Postal Inspection Service investigation of the Arkansas Package, Maryland postal inspectors learned about a Priority Mail package destined for a North Carolina address (the “North Carolina Package”) and another headed to an Arizona address (the “Arizona Package”) that they had identified in connection with the Arkansas Package. The recipient of the North Carolina Package told investigators that he used bitcoin to purchase heroin from DoggFood, an online vendor, on the Dream Market, a site on the dark web. The North Carolina Package contained approximately 2.8 grams of heroin, and the Arizona Package contained approximately four buprenorphine units. Fingerprints found on the packages belonged to Skinner.
During their surveillance of Skinner between September 2017 and January 2018, Maryland postal inspectors intercepted over 20 packages containing controlled substances that Skinner sent through the United States mail. The approximate aggregate drug weights were 47.5 grams of heroin and 81 buprenorphine units.
Additionally, Maryland postal inspectors discovered that Skinner did not act alone when distributing controlled substances through the United States mail. Instead, Skinner, knowing that certain individuals were unusually vulnerable due to a physical or mental condition, involved those individuals in dropping off packages containing heroin and cocaine at Baltimore post offices in July 2017 and August 2017, respectively.
By January 2018, Skinner had sold approximately 290.5 grams of heroin, 97.5 grams of cocaine, and 216 units of buprenorphine as the dark web vendor DoggFood on the Dream Market.
When officers searched Skinner’s residence, they found the laptop he used to run the dark web vendor DoggFood on the Dream Market, printed labels, approximately $6,600 in cash, plastic baggies, a digital scale, heat and bag sealers, a large amount of Priority Mail and Priority Mail Express shipping supplies, $23.75 in postal stamps, a loaded Smith & Wesson 9mm firearm, and 12 rounds of Luger 9mm ammunition.
Skinner faces a maximum sentence of 40 years in prison with a statutory mandatory minimum 5-year term of imprisonment. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for August 13, 2018 at 11:30 a.m.
United States Attorney Robert K. Hur commended the United States Postal Inspection Service’s Washington Division, which led the investigation, and the Postal Inspectors in other field divisions that provided assistance—including the Charlotte, San Francisco, Seattle, and Phoenix Divisions, as well as the Fort Worth Division - Little Rock Domicile, and the National Headquarters Cyber Crimes Unit—for their work in the investigation. Mr. Hur recognized the Conway (Arkansas) Police Department; the Brunswick County (North Carolina) Sheriff’s Office; the Baltimore County Police Department; the Maryland State Police; and the Drug Enforcement Administration’s Baltimore and Raleigh Field Offices for their contributions in the investigation. Mr. Hur thanked Assistant U.S. Attorney Samika N. Boyd, who is prosecuting the case.
Former Soldier Sentenced for Child Pornography CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Kaleb Lee Basey, 28, formerly assigned to Fort Wainwright, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline to 15 years in prison, followed by a life term of supervised release, for distribution and transportation of child pornography.
According to evidence presented at trial, in January 2014, Basey posted an advertisement in the “Casual Encounters” section of the Fairbanks Craigslist website that read: “any dads or moms want to share a daughter with me for the night?” Alaska State Troopers received a report about the ad and began an investigation, concerned that an actual minor might be in danger. In less than 24 hours, Troopers identified Basey as the person who posted. He was also identified as being an active duty solider on Fort Wainwright.
Troopers contacted Army Criminal Investigation Division (CID) agents and executed a search of the defendant’s barracks room. Law enforcement agents eventually contacted the FBI for assistance. FBI agents were able to identify additional sexually-explicit Craigslist postings by Basey in which he sought access to minor children, as well as email communications in which individuals had responded to these sexually-explicit posts. In one set of emails, the defendant included a picture of child pornography, and told the person with whom he was emailing that he enjoyed watching movies that showed “young girls 5-15yo” engaged in sexual acts with adults. To this email string, the defendant also attached a fully-nude selfie. In a second email, the defendant sent a picture of child pornography to himself.
In addition, the defendant’s computer contained multiple contacts with minors that the defendant made through social media platforms. In his conversations with underage girls, the defendant frequently propositioned the girls for sex, or to engage in sexual acts on camera for his benefit.
The defendant successfully enticed at least one 15-year-old to engage in sexual activity with him. On another occasion, the defendant met and paid a 17-year-old juvenile for sex, and asked this minor if he could film her engaged in sex acts.
At sentencing, Judge Beistline stated that his “primary concern [was] protection of the public.” “You are a pedophile,” Judge Beistline said, “someone who has an interest in having sex with children.” Judge Beistline went on to say that the defendant was “not just a voyeur…you actually seek to participate in it. That sets you apart from other people I have seen in this court.”
Judge Beistline also noted the impact the defendant’s crimes have upon their victims. “You victimize a young child just by looking at their pictures,” said Judge Beistline. “You have lost things because of choices you made,” Judge Beistline told the defendant, “the victims that you chose to victimize didn’t have these choices.” “[There was] no concern on your part for how this conduct impacted the victims,” said Judge Beistline.
This case was investigated by the Federal Bureau of Investigation, Alaska State Troopers, and Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Kyle Reardon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
Former Senior Living Facility Resident Pleads Guilty to Possession of RicinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Betty Miller, 70, formerly of Shelburne, Vermont, pled guilty today to a one count superseding information charging her with knowingly possessing Ricin in violation of 18 U.S.C. §175b(c). Miller’s plea came pursuant to a plea agreement filed by the parties which includes a binding sentencing recommendation of time served with a recommendation for a three year term of supervised release to include placement at a secure mental health treatment facility. The Hon. Christina Reiss deferred acceptance of the plea agreement until a pre-sentence report can be prepared. Sentencing in this matter is set for September 6, 2018.
AUSA Eugenia A. P. Cowles appeared for the government. Ms. Miller was represented by Paul S. Volk, Esq.
Former Rochester Man Indicted on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury returned an indictment charging David Roy Jones, 52, formerly of Rochester, NY, with two counts of production of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the indictment, on January 13, 2004, the defendant coerced minor Victim 1 to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. Jones saved and stored the pictures and videos on several electronic media devices.
Subsequently, on July 9, 2006, Jones once again coerced minor Victim 1, as well as a second victim, minor Victim 2, to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. Jones once again saved and stored the pictures and videos on several electronic media devices.
Members of the public who have specific information related to this case are urged to contact the FBI Buffalo Office at 716-856-7800. If any members of the public have general questions or concerns regarding sexual abuse of children or would like guidance on how to discuss this issue with children, please call the Bivona Child Advocacy Center at 1-585-935-7800.
The defendant was arraigned before U.S. Magistrate Judge Jonathan W. Feldman and is being detained.
The indictment is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Former New York City Department of Correction Investigator Sentenced to 10 Years’ Imprisonment for Transporting, Receiving and Possessing Child PornographyRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Fernando Clarke, a former investigator with the New York City Department of Correction, was sentenced by United States District Judge Arthur D. Spatt to 10 years’ imprisonment, following his March 2018 jury trial conviction on seven counts of transportation, receipt and possession of child pornography. Clarke was also sentenced to pay a $13,682.43 fine, a special assessment of $5,600 and five years’ supervised release to follow his prison sentence, during which time he must register as a sex offender and will not be allowed unsupervised contact with minors. A restitution request from one of the victims depicted in child pornography images Clarke collected will be determined by the Court on or before June 1, 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the sentence.
“As the trial established, Clarke collected child pornography at his home for years, using a peer-to-peer file sharing system that allowed others to download child pornography from him,” stated United States Attorney Donoghue. “When his crimes came to light, Clarke lied and attempted to hide behind his badge, claiming that he had accessed child pornography for his job as an investigator for the New York City Department of Correction. This Office is committed to aggressively investigating and prosecuting consumers of child pornography.” Mr. Donoghue extended his grateful appreciation to the New York City Department of Investigation, Inspector General, Board of Correction, and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section and High Technology Investigative Unit for their assistance in this case.
“For years, and while entrusted to serve and protect society, Fernando Clarke compiled and shared thousands of images and videos of children being sexually abused and exploited,” said Acting Assistant Attorney General Cronan. “With every horrific file Clarke downloaded or shared with others, he compounded the unspeakable harm endured by these vulnerable victims. Thanks to the outstanding efforts of our dedicated law enforcement partners and federal prosecutors, Clarke is now being held accountable for his crimes.”
“Individuals who take pleasure in watching videos and photos of children being sexually exploited should learn from the outcome of this case that we will find you and prosecute you to the fullest extent of the law, no matter who you are,” stated HSI Special Agent-in-Charge Melendez. “The fact that this individual used his law enforcement status to try to shield his crimes is particularly heinous, and a betrayal of all we stand for in protecting the children in our communities. But his knowledge of online sharing systems and assumption he could go undetected was undone by the excellent investigative team in this case.”
According to court filings and evidence introduced at trial, Clarke downloaded thousands of video files of the sexual abuse of pre-teen children, which he kept on computer equipment in his home. During a court-ordered search of his home on July 28, 2015, Clarke initially claimed that he was downloading child pornography in connection with his employment as a Department of Correction investigator. Clarke subsequently admitted during the search that he was not authorized to access or download child pornography for his employment. Clarke was fired from the Department of Correction after his conviction.
The government’s case is being prosecuted by Assistant United States Attorney Allen L. Bode of the Office’s Long Island Criminal Division and Department of Justice Trial Attorney Lauren Kupersmith.
The Defendant:
FERNANDO CLARKE
Age: 64
East Meadow, New YorkE.D.N.Y. Docket No. 15-CR-426(S-1) (ADS)(AKT)
Former New York City Correction Department Investigator Sentenced to 10 Years in Prison for Transporting, Receiving and Possessing Child PornographyRead the Press Release
Earlier today, an investigator with the New York City Correction Department was sentenced to 120 months in prison at the federal courthouse in Central Islip, New York following his March 5 jury trial conviction on seven counts of transportation, receipt and possession of child pornography involving conduct at his East Meadow, New York residence.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York and Special Agent-in-Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York, made the announcement.
Fernando Clarke, 64, of East Meadow, New York, was sentenced by U.S. District Judge Arthur D. Spatt, who also ordered him to pay a $13, 682.43 fine and serve a five year term of supervised release to follow his prison sentence, during which time he must register as a sex offender and will not be allowed unsupervised contact with minors.
“For years, and while entrusted to serve and protect society, Fernando Clarke compiled and shared thousands of images and videos of children being sexually abused and exploited,” said Acting Assistant Attorney General Cronan. “With every horrific file Clarke downloaded or shared with others, he compounded the unspeakable harm endured by these vulnerable victims. Thanks to the outstanding efforts of our dedicated law enforcement partners and federal prosecutors, Clarke is now being held accountable for his crimes.”
“As the trial established, Clarke collected child pornography at his home for years, using a peer-to-peer file sharing system that allowed others to download child pornography from him,” said U.S. Attorney Donoghue. “When his crimes came to light, Clarke lied and attempted to hide behind his badge, claiming that he had accessed child pornography for his job as an investigator for the New York City Department of Correction. This Office is committed to aggressively investigating and prosecuting consumers of child pornography.”
“Individuals who take pleasure in watching videos and photos of children being sexually exploited should learn from the outcome of this case that we will find you and prosecute you to the fullest extent of the law, no matter who you are,” said Angel Melendez, Special Agent in Charge, Homeland Security Investigations (HSI), New York. “The fact that this individual used his law enforcement status to try to shield his crimes is particularly heinous, and a betrayal of all we stand for in protecting the children in our communities. But his knowledge of online sharing systems and assumption he could go undetected was undone by the excellent investigative team in this case.”
According to court filings and evidence introduced at trial, over several years Clarke downloaded thousands of video files of the sexual abuse of pre-teen children, including sadistic material, which he kept on computer equipment in his home. Clarke knew that these video files, some of which he watched repeatedly, also were available on his computers for others to download. During a court-ordered search of his home on July 28, 2015, Clarke initially claimed that he was downloading child pornography in connection with his employment as a Correction Department investigator. Clarke admitted at the time of the search that he was not authorized to access or download child pornography for his employment. Clarke was arrested at the time of the search and subsequently fired from the Department of Correction after his conviction.
The New York City Department of Investigation, Inspector General, Board of Correction, and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and High Technology Investigative Unit assisted in the investigation. The government’s case is being prosecuted by Trial Attorney Lauren Kupersmith of the Criminal Division’s CEOS and Assistant U.S. Attorney Allen L. Bode of the U.S. Attorney’s Office’s Long Island Criminal Division.
Former National Director of Anti-Corruption in Colombia Extradited to the United States to Face Wire Fraud and Money Laundering Charges Related to Foreign BriberyRead the Press Release
The former National Director of Anti-Corruption in Colombia and an attorney from Colombia were extradited yesterday to the United States to face wire fraud and money laundering charges related to the promotion of foreign bribery.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Luis Gustavo Moreno Rivera, 36, the former National Director of Anti-Corruption in Colombia and Leonardo Pinilla Gomez, 31, an attorney practicing in Colombia, were charged by superseding indictment on August 3, 2017 in the Southern District of Florida. The superseding indictment charges the defendants with one count of conspiracy to commit wire fraud, two counts of wire fraud, one count of conspiracy to launder money in order to promote foreign bribery, and two counts of substantive money laundering. Both Rivera and Pinilla were arrested in Colombia pursuant to an Interpol Red Notice. Pinilla was arraigned this afternoon before U.S. Magistrate Judge Alicia M. Otazo-Reyes in Miami. Moreno is scheduled to be arraigned in Miami on May 30, 2018, before a U.S. Magistrate Judge.
According to the criminal complaint, previously filed in the case, and the superseding indictment, beginning in November 2016, a cooperating source of information (CS) was approached by Moreno and Pinilla who attempted to entice a bribe from the CS. Specifically, in exchange for 100 million Colombian pesos, Moreno and Pinilla offered to give the CS copies of sworn statements taken from cooperators who had testified against the CS. In June 2017, Moreno and Pinilla traveled to Miami, Florida and met with the CS who, under the direction of the DEA, provided Moreno and Pinilla with a $10,000 deposit of the bribe money. Recorded conversations revealed that Moreno and Pinilla discussed Moreno’s ability to control the investigation into the CS and that Moreno could inundate his prosecutors with work so that they would be unable to focus on the CS’s investigation. In exchange, Moreno and Pinilla were asking for a 400 million Colombian peso payment with an additional $30,000 to be paid prior to Moreno leaving the United States.
The criminal complaint further alleges that several of the $100 bills from the $10,000 paid to Moreno and Pinilla were found on Moreno and his family as they boarded their flight back to Bogota from Miami.
An indictment and a criminal complaint merely contain allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The defendants face a maximum of 20 years in prison, per count of conviction.
Mr. Greenberg commends the DEA for their investigative assistance with this case. Mr. Greenberg also thanked the Criminal Division’s Office of International Affairs and Office of Judicial Attaché in Colombia along with the DEA Bogota Country Office; the Internal Revenue Service, Criminal Investigations (IRS-CI), Miami Field Office and Attaché Office in Colombia; U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office and Attaché Office in Colombia; U.S. Customs and Border Protection, Miami Office of Field Operations; and Federal Bureau of Investigation (FBI), Legal Attaché Office in Colombia, for their assistance in this matter. Assistant U.S. Attorneys Juan Antonio Gonzalez and Lynn M. Kirkpatrick of the International Narcotics and Money Laundering Section in the Southern District of Florida are prosecuting this case.
The U.S. Attorney’s Office and our federal partners commend the Attorney General of Colombia and the Cuerpo Tecnico de Investigacion (CTI) for their cooperative efforts in this investigation.
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.