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8 May 2018
Maryland Man Found Guilty of First-Degree Murder While Armed in 2016 Slaying of His Ex-GirlfriendRead the Press Release
WASHINGTON – Donald R. Hairston, 51, of District Heights, Md., was found guilty by a jury today of first-degree murder while armed and other charges in the June 2016 slaying of his ex-girlfriend at her home in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Hairston also was found guilty of first-degree felony murder while armed, first-degree burglary while armed, temporary protection order violation, stalking, and related firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He is to be sentenced on July 20, 2018, by the Honorable Danya A. Dayson.
According to the government’s evidence, on Saturday, June 18, 2016, at approximately 1 a.m., the victim, Stephanie Goodloe, was in bed in her three-bedroom rowhouse in the 700 block of Kentucky Avenue SE. Her 11-year-old daughter, who was asleep in a nearby bedroom, awoke to her mother’s cry and the sound of “Pop… pop, pop, pop.” She then then saw a man walk by her open bedroom door. The man she observed was Hairston, her mother’s ex-boyfriend. Terrified, the girl waited a few minutes before checking on her mother because she was afraid the defendant would come after her next. When she finally gained the courage to go into her mother’s room, she found her 40-year-old mother dead, suffering from multiple gunshot wounds, including one to the head. Frantic, she called 911.
Prior to the murder, according to the government’s evidence, Hairston had engaged in a pattern of domestic violence against Ms. Goodloe. She had filed for a temporary protection order against him approximately two weeks earlier after he had slashed her tires and showed up at her house pounding on the door at all hours of the night. Additionally, in the weeks leading up to the murder, he stole her house keys from her front door, threatened to kill her, and generally stalked and harassed her. They were scheduled to go to court regarding the temporary protection order on Monday, June 20, 2016, just two days after the murder.
Hairston was arrested on the day of the murder and has been in custody ever since.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michelle D. Jackson, David Gorman, and Laura R. Bach; Victim/Witness Advocate Marcia Rinker; Victim/Witness Services Coordinator Katina Adams-Washington; Forensic Child Interview Specialists Karen Giannakoulias and Tracy Owusu; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Contract Specialist Marquetta Little; Lead Paralegal Specialist Meridith McGarrity; Paralegal Specialists Kelly Blakeney and Stephanie Gilbert; Criminal Investigators John Marsh and Zachary McMenamin, and Litigation Technology Specialist Leif Hickling.
Finally, she commended the work of Assistant U.S. Attorneys Alicia Long and John Timmer, who investigated, indicted, and prosecuted the case.
Marion County woman admits to taking mail, ordered to pay back victimRead the Press Release
CLARKSBURG, WEST VIRGINIA – Rochelle Pernell, of Fairmont, West Virginia, has admitted to obstructing mail, United States Attorney Bill Powell announced.
Pernell, age 32, pled guilty to one count of “Obstruction of Mails.” Pernell admitted to taking a $500 Visa gift card after it was deposited for mail and before it was delivered to its intended recipient. The crime occurred January 27, 2017 in Marion County.
Pernell was sentenced to 12 months probation and ordered to pay $790.00 in restitution.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The United States Postal Service Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Maine Man Pleads Guilty to Distributing HeroinRead the Press Release
CONCORD - Timothy G. Zani, 39, of Berwick, Maine, pleaded guilty in federal court to distribution of heroin, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in spring 2015, law enforcement officers received information that Zani was distributing heroin in the Berwick, Maine, and Somersworth, New Hampshire areas. On three occasions between May 7 and June 10, 2015, Zani sold heroin to cooperating individuals at locations in Somersworth, New Hampshire.
Zani is scheduled to be sentenced on September 4, 2018.
“The distribution of heroin and fentanyl pose a great threat to public safety,” said U.S. Attorney Murray. “We will continue to work closely with all of our law enforcement partners to investigate and prosecute those who are distributing these deadly substances.”
“Those suffering from the disease of opioid addiction need access to treatment and recovery,” said DEA Acting Special Agent in Charge Albert Angelucci. “But, those responsible for distributing lethal drugs like heroin to the citizens of New Hampshire need to be held accountable for their actions. DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
This matter was investigated by the Drug Enforcement Administration and Berwick (ME) Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Lorain man and federal prison inmate convicted for conspiracy to commit murder for hire and to distribute cocaineRead the Press Release
A Lorain man and an inmate at a federal prison in New Jersey were convicted by a jury for their conspiracy to commit murder for hire and to distribute cocaine.
Eduardo Rios Velasquez, 37, of Lorain, and Angel Cordero, 37, an inmate at Fort Dix Federal Correctional Institution, are scheduled to be sentenced Sept. 18. They were both convicted on one count of conspiracy to commit murder for hire and one count of conspiracy to distribute cocaine.
Velasquez and Cordero had previously been incarcerated together. Cordero was in contact with Velasquez in the summer of 2017 through a contraband cellular phone that had been smuggled into Fort Dix, according to court documents and trial testimony.
Cordero put Velasquez in contact with another inmate. Velasquez offered to pay the other inmate money if he could provide Velasquez with the address for a woman identified in court documents as T.G. Cordero told the inmate that Velasquez had been hired to kill T.G, according to court documents.
Additionally, another person supplied Velasquez with large shipments of cocaine, with Cordero serving as the broker in the deals. Federal law enforcement authorities intercepted a kilogram of cocaine in July that was being shipped to Velasquez, according to court documents and trial testimony.
“This case was an outstanding effort by investigators and prosecutors from multiple states and jurisdictions who came together to avert a tragedy,” U.S. Attorney Justin E. Herdman said.
“This case shows that no one is out of reach from being charged and prosecuted when a crime is committed. Even when serving a sentence, Cordero continued his criminal activity with little regard of the consequences,” said Angel M. Melendez, special agent in charge of HSI New York. “Now he and Valasquez were found guilty of their actions and will now face whatever sentence issued because of their reprehensible actions.”
DEA Special Agent in Charge James Hunt stated: “It is not uncommon for our investigations to unveil drug-related murders; but this significant murder-for-hire plot paved a twisted path from New York City to Lorain, Ohio. Law enforcement collaboration helped prevent another murder from occurring. I commend the dedicated and talented team of agents, detectives, investigators and prosecutors who worked on this investigation.”
“The FBI is pleased with the jury's verdict. Velasquez will spend significant time behind bars for his ruthless willingness to kill someone for money,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI Cleveland Division commends the collaboration between the law enforcement agencies involved in disrupting and prosecuting this murder for hire.”
The case is being prosecuted by Assistant U.S. Attorneys Brian McDonough, Brad Beeson and Special Assistant U.S. Attorney Hiral Mehta following an investigation by the U.S. Department of Homeland Security’s New York office, the DEA’s New York Drug Enforcement Task Force – which is comprised of agents, detectives and investigators of the U.S. Drug Enforcement Administration, New York City Police Department and the New York State Police -- and the Federal Bureau of Investigation’s Cleveland office, with assistance from the U.S. Attorney’s Office for the Eastern District of New York.
Lawrence Man Pleads Guilty to Heroin and Fentanyl Distribution ConspiracyRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Miguel Arias Velasquez, 21, of Lawrence, Massachusetts, pleaded guilty to participating in a heroin and fentanyl trafficking conspiracy.
According to court documents and statements made in court, from at least January of 2017 until July of 2017, Arias-Velasquez made deliveries of heroin and fentanyl to customers of a drug organization working out of a residence on Water Street in Lawrence. Customers, including customers from New Hampshire, would call to order drugs and Arias-Velasquez and others would drive to locations in Methuen and Salisbury, Massachusetts to deliver the drugs.
A sentencing hearing is scheduled for August 16, 2018.
“Those who choose to distribute heroin and fentanyl endanger their customers as well as the general public. Maintaining public safety requires that they be prosecuted aggressively,” said U.S. Attorney Murray. “We work closely each day with our law enforcement partners to target those who seek to profit from the sale of these deadly substances.”
This matter was investigated by the DEA, the Massachusetts State Police, the United States Marshals Service, the New Hampshire State Police, and the Lawrence Police Department. Assistant United States Attorney Donald A. Feith prosecuted the case.
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Lake Wales Man Sentenced to More Than Four Years on Tax Fraud ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Tedderick Fields to four years and three months in federal prison for filing false claims with the Internal Revenue Service. He was also ordered to pay $7,775 in restitution to the IRS. Fields pleaded guilty on February 1, 2018.
According to court documents, Fields admitted to filing false tax returns in his name from 2011 through 2013. He reported wages that he had not earned from a business that he had incorporated, Dew’s T-Shirts and Accessories, and falsely claimed that he withheld federal income tax. In 2011, Fields filed a false tax return in his name, claiming that he had earned over $50,000 in wages and had withheld more than $14,000. The false claims resulted in a fraudulent tax refund of $7,775. In 2012, he filed another false tax return in his name, claiming that he had earned $1 million in wages and had withheld $400,000. This false claim resulted in the issuance of a fraudulent tax refund check in excess of $400,000.
This case was investigated by Internal Revenue Service – Criminal Investigation, with assistance from the St. Lucie County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Korean National Sentenced to Nearly 4 Years in Prison for Role in Scheme that Avoided Paying Excise Taxes on Millions of CigarettesRead the Press Release
LOS ANGELES – A Korean national who was living in the United States as an illegal alien has been sentenced to 46 months in federal prison for participating in a scheme to defraud the United States by evading millions of dollars in federal excise taxes due on 143 million cigarettes.
Un Hag Baeg, 58, of Marina del Rey, was sentenced Monday for his role in a conspiracy that sold cigarettes domestically, but did not pay excise taxes after falsely claiming the cigarettes were leaving the United States on cargo ships sailing out of the ports of Los Angeles and Long Beach. At the time of the offense, Baeg operated Far East Marine Ship Supply Company, a ship chandler that provided supplies to cargo vessels.
United States District Judge S. James Otero imposed the prison sentence and additionally ordered Baeg to pay $7.26 million in restitution to the U.S. Alcohol and Tobacco Tax and Trade Bureau.
Baeg was sentenced after pleading guilty in October to conspiracy to defraud the Unites States.
Cigarettes sold in the United States are subject to a federal excise tax of $50.33 per one thousand cigarettes. This tax is generally paid by the manufacturer, but it may be avoided if the cigarettes are properly transferred to a bonded warehouse to be exported or consumed outside of the United States. Untaxed cigarettes sold for this purpose are known as “export-only” cigarettes. When export-only cigarettes are diverted and sold in the United States, federal and state taxing authorities suffer lost excise taxes.
According to court documents, between 2012 and 2015, Baeg and others conspired to divert approximately 143 million export-only cigarettes from an export warehouse near the Port of Los Angeles. Baeg purchased the cigarettes under the pretext that the cigarettes would be provided to various ships sailing out of the United States. In fact, the cigarettes were sold in the United States, which resulted in millions of dollars in lost federal and state excise taxes.
Baeg and his co-conspirators subsequently hid their fraud by preparing false paperwork indicating that the cigarettes had been delivered to the various ships. To make these bogus documents appear to be legitimate, the conspirators stamped the paperwork with fabricated rubber stamps bearing the names of cargo vessels.
Baeg’s “criminal conduct was neither passive nor passing,” according to a sentencing memorandum filed by prosecutors. “Rather, he played an active and crucial role in a long-operating criminal enterprise.”
The conspiracy resulted in the evasion of $7,260,203 in federal excise taxes and $5,986,458 in California excise taxes.
A man who assisted Baeg by picking up the duty-free cigarettes Baeg ordered several times a week, paying for them with money provided by Baeg, and transporting the cigarettes to distribution points has also pleaded guilty to a charge of conspiracy to defraud the United States. Isaac Rojas, 45, of El Monte, pleaded guilty last year to conspiring with Baeg and is scheduled to be sentenced by Judge Otero on May 29, at which time Rojas will face a statutory maximum sentence of five years in federal prison.
This case was investigated by the U.S. Alcohol and Tobacco Tax and Trade Bureau; IRS Criminal Investigation; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted by Assistant United States Attorney James Hughes of the Tax Division and Trial Attorney Christopher Strauss of the Justice Department’s Tax Division.
Justice Department Seeks to Revoke Citizenship of Convicted Felons Who Conspired to Defraud U.S. Export-Import Bank of More Than $24 MillionRead the Press Release
The Justice Department today filed denaturalization lawsuits against two individuals convicted of conspiring to defraud the United States Export-Import Bank (“Ex-Im Bank”) of more than $24 million, conduct they allegedly concealed during their naturalization proceedings. The civil complaints were filed in federal court in the Southern District of Florida.
“Criminals that seek citizenship in the United States and knowingly hide their criminal history have no right to keep their citizenship,” said Acting Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s complaints prove that the Department of Justice will continue to uphold the law and protect our immigration system against those who seek to cheat the United States out of our greatest immigration benefit.”
Guillermo Oscar Mondino, 55, a native of Argentina, and Norma Borgono, aka Norma Isabel Borgono Bedoya, 63, a native of Peru, were convicted in 2010 and 2011, respectively, for conspiracy to defraud the United States and to commit mail fraud, in violation of 18 U.S.C. § 371. Mondino was also convicted of money laundering, in violation of 18 U.S.C. § 1957. As admitted in their criminal proceedings, Mondino owned an exporting company headquartered in Miami, Florida, which was in the business of purchasing U.S. goods on behalf of clients in the Caribbean, Central America, South America, and other foreign countries, and shipping those goods overseas. Mondino conspired with Borgono and others to obtain from the Ex-Im Bank more than $24 million in fraudulent loan transactions by falsifying records. Mondino and Borgono knew and intended that all or some of the goods identified on the applications they falsified would not be purchased and/or would not be shipped. They misappropriated $14.1 million in loan proceeds that were guaranteed by the Ex-Im Bank, including by distributing portions of the loans to foreign co-conspirators in cash. Mondino and Borgono admitted in their criminal proceedings that more than $12.9 million of the amounts Ex-Im Bank paid on claims for defaulted loans remained unrecovered.
After their fraudulent conspiracy was discovered, Mondino and Borgono were criminally charged in the U.S. District Court for the District of Columbia. Although Mondino and Borgono’s criminal conspiracy and crimes began while they were permanent residents of the United States, their criminal proceedings did not occur until after they had both naturalized. The civil denaturalization complaints allege that Mondino and Borgono concealed and affirmatively misrepresented their criminal conduct throughout their naturalization proceedings, and that their applications would have been denied had immigration authorities known about the defendants’ fraud.
The cases were investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The cases are being prosecuted by Trial Attorney Michael Celone of OIL-DCS, with support from Senior Attorney Gina Garrett-Jackson of ICE’s Miami Office of the Chief Counsel and Special Agent David Jansen of ICE-HSI Fort Lauderdale.
The claims made in these complaints are allegations only, and there have been no determinations of liability.
Justice Department Reaches Settlement with Minnesota Bank to Resolve Allegations of Lending DiscriminationRead the Press Release
The Justice Department today settled its suit against KleinBank, resolving allegations that the bank engaged in lending discrimination by “redlining” predominantly minority neighborhoods in and around the Twin Cities of Minneapolis-St. Paul, Minnesota. “Redlining” is a term describing the illegal practice in which lenders intentionally avoid providing services to individuals living in predominantly minority neighborhoods because of the race or national origin of the residents of those neighborhoods.
As part of the settlement, the parties have agreed to jointly seek dismissal of the lawsuit, which the Department filed in the U.S. District Court for the District of Minnesota in 2017. The Department’s complaint alleged that KleinBank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race and national origin in their mortgage lending services. The lawsuit alleged that, from 2010 to at least 2015, KleinBank engaged in unlawful redlining in the Twin Cities area by intentionally avoiding providing lending services to residents of predominantly minority neighborhoods because of the race or national origin of the people living in those neighborhoods.
KleinBank is the largest family-owned bank in Minnesota with 19 branch offices in the Minneapolis-St. Paul area and assets of more than $1.9 billion. Under the settlement, KleinBank will take a number of steps to remedy the harm alleged in the complaint and to ensure that its mortgage lending services are made available on a non-discriminatory basis. The bank will expand its banking services in predominantly minority neighborhoods in the Minneapolis area in a variety of ways. For example, it will invest $300,000 in a loan subsidy fund to increase the amount of credit that KleinBank extends to residents of predominantly minority neighborhoods, and another $300,000 in advertising, outreach, financial education, and credit repair in order to improve the bank’s visibility in, and successful expansion into, its new service area. The bank will employ a community development officer to oversee the development of the bank’s lending in predominantly minority neighborhoods, and will conduct fair lending training, including training on redlining, for its employees and officers.
“Federal law prohibits lenders from discriminating against mortgage applicants and other potential customers based on race or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to use its enforcement authority to combat this illegal discrimination.”
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the Department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
A copy of the complaint and the settlement agreement, as well as additional information about fair lending enforcement by the Justice Department, can be found on the Justice Department’s website at www.justice.gov/fairhousing.
Jury convicts two Cleveland men for armed robberies of Dollar Tree stores in ClevelandRead the Press Release
A jury convicted two Cleveland men for their roles in armed robberies of Dollar Tree stores in Cleveland in May and June 2016.
Williams Holmes, 22, and Demon Carter, 25, are scheduled to be sentenced on Aug. 15.
Holmes was convicted of brandishing a firearm during robberies of the Dollar Tree store at 12900 Miles Road on June 4 and at 2892 East 116th Street on June 19, as well as robbing the Miles Road store on May 14.
Carter was convicted of violating the Hobbs Act by robbing the stores with Holmes on the May 14 and June 4. Carter is a former Dollar Tree employee.
Holmes entered the Miles Road store on the evening of June 4, 2016, held a handgun to an employee’s head and told the employee to disarm the alarm. Holmes took approximately $1,500 from the store, according to court documents and trial testimony
One day after that robbery, Holmes posted a photo of himself on Facebook holding a stack of money in one hand and a handgun in the other. The next day he posted a photograph of several stacks of money, a black pistol and candy laying on a table. Holmes captioned the photo: “Money guns n snacks is life,” according to court documents and trial testimony.
U.S. Attorney Justin E. Herdman said: “People who use firearms to rob others who are shopping or working belong in prison. We will continue to target these violent predators and work together to make our community a safer place to live, work and play.
“ATF and CPD are laser-focused on removing violent criminals from the streets of Cleveland,” said Trevor Velinor, ATF’s Special Agent in Charge for the Columbus Field Division. “These individuals used firearms to threaten innocent employees and steal from people who worked long hours. ATF, CPD, and all of our law enforcement partners are united in sending a clear message that our community is tired of firearms violence.”
Cleveland Police Chief Calvin Williams said: “Once again, a partnered effort between local and federal law enforcement and the federal justice system has resulted in the successful conviction of violent offenders. It is my hope that this sets an example for other young people in our communities considering committing offenses like these, as there are severe consequences for these actions.”
This case is part of Project Safe Neighborhoods, 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.
This case was prosecuted by Assistant U.S. Attorneys Carol M. Skutnik and Megan Miller following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cleveland Division of Police.
Jury Convicts KC Man of Child Sexual ObscenityRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man with a prior federal felony conviction for possessing child pornography was convicted at trial today of printing obscene images from a computer at a local public library.
David R. Buie, 63, of Kansas City, was found guilty of one count of possessing obscene images of the sexual abuse of children, contained in an Oct. 25, 2017, federal indictment.
Evidence introduced during the trial indicated that Buie printed images of child obscenity from a computer at a public library. On July 11, 2017, Buie printed about 50 pages from a computer he was using at the Mid-Continent Public Library at 9253 Blue Ridge Blvd., Kansas City, Mo. Buie didn’t realize that the printer stopped because it was out of toner, so his print jobs were interrupted and only about half of his pages were printed. After Buie left the library, the toner in the printer was changed and the remaining pages of his original print job were printed. As one of the librarians was cleaning up, she removed the remaining pages and observed they were color copies from a graphic sex comic.
Library staff contacted the Kansas City, Mo., Police Department to make a report. Buie was identified because his library card was associated with the print job. Security cameras within the library showed him using a computer at the time of the printing.
The U.S. Probation Office was also contacted, because Buie was on supervised release for a prior federal felony conviction for possessing child pornography. When probation officers searched Buie’s residence, they found the images of child obscenity that Buie had printed at the library. Buie told investigators that he visited various public libraries about once a week to view child obscenity anime. Buie said he often printed the images on the library’s printer.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for less than an hour before returning the guilty verdicts to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, May 7, 2018.
Under federal statutes, Buie is subject to a mandatory minimum sentence of 10 years in federal prison without parole due to a prior felony conviction for possessing child pornography, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Kansas City, Mo., Police Department and the U.S. Probation Office.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Johnstown Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
JOHNSTOWN, Pa. – A Cambria County resident was indicted by a federal grand jury in Johnstown on charge of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The indictment named Clarence M. Cosby, 36, of Johnstown, Pa.
According to the indictment presented to the court, on July 5, 2017, Cosby distributed less than 28 grams of cocaine base, commonly known as "crack," and on Oct. 6, 2017, he was found in possession of a loaded Remington Model RM-380, .380 caliber semi-automatic pistol. On Jan. 29, 2016, Cosby was convicted in Bedford Co., Pa., of drug trafficking, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum sentence of 30 years in prison and a fine of $1,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Cosby.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Man Charged with Distributing Heroin on Two Occasions in March 2018Read the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The indictment named Willie Gene Gulley, Jr., 49, as the sole defendant.
According to the indictment presented to the court, on each of the dates of March 1 and March 20, 2018, Gulley distributed less than 100 grams of heroin.
The law provides for a maximum sentence of 40 years in prison and a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Gulley.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing and Discharging a Firearm During Robbery of Waffle HouseRead the Press Release
Jackson, Miss. – Nicholas Thames, 20, of Jackson, pled guilty today before United States Chief District Judge Daniel P. Jordan III to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation.
On October 27, 2017, Jackson Police Department officers responded to the Waffle House restaurant located at 584 Beasley Road in reference to an armed robbery of a business. Employees advised that Thames had come into the restaurant about an hour earlier to eat and returned with a red bandana covering his mouth and brandishing a firearm. Thames demanded money from the clerk and fired one shot before pointing the gun at the clerk as she handed him all of the money in the register. Thames then ran out of the store. Store employees were able to provide a description to Jackson Police Department officers who found Thames in the area, wearing the same clothes described by the employees, including the red bandana he used to cover his face.
Thames was arrested and officers found a large sum of money and a black handgun on his person. Officers also found several other items that the defendant admitted taking from a vehicle that he had broken into in the area.
Thames is scheduled to be sentenced by Judge Jordan on August 7, 2018, and faces a minimum sentence of 10 years and a maximum sentence of life in federal prison and a $250,000 fine.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with FBI agents and Project EJECT task force members. AUSA Abe McGlothin, Jr. is prosecuting the case.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Groton Man Pleads Guilty to Selling Narcotics to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ULPIANO LUGO, 37, of Groton, waived his right to be indicted and pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of distribution of heroin and/or cocaine.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 22, 2017, at approximately 7:37 p.m., Groton City Police and emergency medical personnel responded to a residence in Groton and found an unresponsive 37-year-old male in the bedroom of the residence. The victim was pronounced deceased at the scene. Officers collected from the bedroom one used syringe that was one-third full of an unknown liquid, a bent metal spoon with an off-white residue on the surface, one plastic bag with powder residue, and the victim’s cellphone.
Subsequent analysis of the powder residue revealed the presence of heroin and cocaine, and text messages from the victim’s cellphone confirmed that the victim had ordered narcotics from LUGO in the days before the victim’s death.
Judge Covello scheduled sentencing for August 1, 2018, at which time LUGO faces a maximum term of imprisonment of 20 years. LUGO is detained pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Groton City Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Grand Jury Returns Tax Charges Against Celebrity Manager in Relation to OXYwater CaseRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Kevin R. Foster, 42, of Montclair, N.J. with charges related to a fraud scheme in a second superseding indictment returned here today.
Foster was charged in an original, seven-count indictment in July 2016. A superseding indictment containing 10 counts – including additional wire fraud, money laundering and bankruptcy fraud charges – as well as a second victim, was returned in November 2017. Today’s second superseding indictment adds six more charges – two counts of tax evasion and four counts of filing a false tax return.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Richard E. Zuckerman, Principal Deputy Assistant Attorney General, Tax Division, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the new charges.
This case stems from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who collected approximately $9 million from investors under false pretenses to start and market the sports beverage “OXYwater” through their company, Imperial Integrative Health Research and Development (“Imperial”). The two were convicted by a federal jury in March 2015 of multiple wire fraud, money laundering and tax fraud charges.
The original charges against Foster allege that he, as the principal of his management/accounting firm, Foster & Firm, Inc., and as business manager for Shaffer Smith (“Ne-Yo”), induced Smith to invest $2 million into OXYwater under false representations. Unbeknownst to Smith, Foster allegedly invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature.
The superseding indictment also alleges that Foster defrauded a second celebrity client, Brian McKnight, as a way to secure money to help keep Imperial solvent.
McKnight agreed to invest in the company, not knowing that Foster served as an officer/controller of Imperial. Foster allegedly withdrew more money from McKnight’s account than he had authorized, and transferred some of it to one of Imperial’s business associates in order to help keep Imperial afloat.
The latest indictment alleges that Foster failed to report on his 2012 and 2013 tax returns the millions of dollars that he stole from Ne-Yo and McKnight. Foster also allegedly claimed millions of dollars in bogus deductions in order to further reduce his tax liability.
U.S. Attorney Glassman and Principal Deputy Assistant Attorney General Zuckerman commended the investigation of this case by the IRS Criminal Investigation and FBI, and Assistant United States Attorney Jessica H. Kim and Department of Justice Tax Division Trial Attorney Jason M. Scheff, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Four Plead Guilty in Multi-State Drug, Money-Laundering ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Aaron M. Booker, 26, Joseph F. Booker Jr., 28, and Kaishawndra Lyons, 25, all of Pensacola, and Uy Nguyen, 34, of Vallejo, California, have pled guilty to charges arising from a multi-state drug and money laundering conspiracy. The guilty pleas were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Nguyen and the Booker Brothers pled guilty to conspiracy to distribute controlled substances. All four defendants pled guilty to conspiracy to commit money laundering. In addition to the money laundering conspiracy, Lyons also pled guilty to making false statements to federal agents.
Since 2015, federal, state and local law enforcement agencies have been investigating a multi-state drug trafficking and money laundering organization operating in Pensacola, Northern California, and elsewhere. The investigation disclosed that between February 2015, and December 2017, Nguyen shipped packages of cocaine and marijuana from California to the Booker Brothers in Pensacola. Using hidden social media, Nguyen sent his co-conspirators photographs of drug invoices and pictures of packages of cocaine and marijuana that he was shipping from California to Pensacola. Postal records show that the Booker Brothers and Lyons mailed more than two dozen currency-filled packages back to Nguyen as payment for the drugs. During the course of the investigation, law enforcement officers intercepted multiple packages of drugs that Nguyen shipped to his co-conspirators. Bank records revealed that the Booker Brothers and Lyons laundered drug monies by depositing proceeds from the sale of the marijuana and cocaine into bank accounts Nguyen opened in California.
In December 2017, law enforcement officers searched Nguyen’s residence and vehicle in northern California and located multiple kilograms of marijuana and a receipt for a newly mailed parcel heading to Pensacola. When law enforcement officers searched the Lyons/Booker residence, Aaron Booker’s cellular device was logged into the social media account that included drug invoices and mailing information for Nguyen. One of the images depicting mailing information was actually the receipt investigators recovered from Nguyen's vehicle at the time of his arrest. This parcel was intercepted by law enforcement officers and contained multiple pounds of marijuana. The search of the Lyons/Booker residence in Pensacola revealed over $300,000 in United States currency as well as over $300,000 in jewelry and high end clothing.
Based upon the drug invoices, law enforcement officers determined this conspiracy involved 250 kilograms of marijuana and more than 5 kilograms of cocaine. The conspirators laundered over a quarter million dollars through bank accounts and jewelry stores between Pensacola, Northern California, and other locations in the United States.
The defendants face 10 years to life in prison for the drug trafficking conspiracy and a maximum of 20 years in prison for the money laundering conspiracy. Lyons faces a maximum of 5 years in prison for making false statements.
Nguyen’s sentencing is scheduled for June 27, 2018. The sentencing for Aaron Booker is scheduled for July 17, 2018. Joseph Booker and Lyons will be sentenced on July 24, 2018.
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, the United States Postal Inspection Service, the Pensacola Police Department, the State Attorney’s Office – First Judicial Circuit, the U.S. Marshals Service, and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) program. Assistant United States Attorney David L. Goldberg is prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fort Wayne Man Sentenced to 108 Months ImprisonmentRead the Press Release
FORT WAYNE – Michael Howard, 54, of Fort Wayne, Indiana, was sentenced before Chief Judge Theresa L. Springmann on his plea of possession of methamphetamine with intent to distribute, announced U.S. Attorney Thomas L. Kirsch II.
Howard was sentenced to 108 months imprisonment followed by 1 year of supervised release.
According to documents in this case, in April 2016 Howard distributed methamphetamine to a confidential source. In May of 2016, police went to arrest Howard for the April deal and discovered over 1200 grams of methamphetamine in his backpack.
This case was investigated by the Drug Enforcement Administration and the Fort Wayne Police Department. This case was handled by Assistant U.S. Attorney Anthony Geller.
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Former South Bay Resident Convicted of Defrauding Japanese Investors in Almost $7 Million Ponzi SchemeRead the Press Release
SAN FRANCISCO – Kevin Kyes was convicted of one count of conspiracy to commit wire fraud, seventeen counts of wire fraud, one count of conspiracy to commit money laundering, and two counts of money laundering by a federal jury today, announced Acting United States Attorney Alex G. Tse, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and the Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The jury’s verdict followed a week-long trial before the Honorable Susan Illston, U.S. District Judge.
The jury found that Kyes, 69, formerly of Campbell, Calif. and currently of Roseville, Calif., conspired to commit wire fraud and committed wire fraud as part of a nearly $7 million Ponzi scheme in which the victims were a group of more than 60 Japanese investors. The jury also found that Kyes conspired to and did launder the proceeds of this fraud. The jury acquitted Kyes of one count of wire fraud.
The evidence at trial showed that, from December 2012 through July 2015, Kyes worked with John Holdaway, 73, of Sandy, Utah, to defraud the Japanese investors through a business that they referred to as “Money Management Strategies,” or MMS. Kyes and Holdaway told the investors their money would be invested in high-speed trading programs with historical returns of well over 100% annually. Kyes and Holdaway also told investors that their investments would be safe, in part because their principal investment would never leave the bank accounts into which the funds were sent, and that instead, MMS would draw a credit line secured by their funds and use that to fund trading. Kyes and Holdaway further explained that any trading losses would be borne by MMS. Based on the representations of Holdaway and Kyes, these investors wired money to bank accounts in Northern California controlled by Holdaway and Kyes. The Japanese investors sent approximately $6.8 million to Holdaway and Kyes during the scheme.
The evidence at trial demonstrated that, in reality, Holdaway and Kyes did not invest the money as promised. Instead, they spent the money themselves, used it to fund Ponzi-type payments back to investors, spent the money to pay back prior creditors to whom they owed funds, and spent it on gold-related businesses. In addition, Holdaway and Kyes told investors that they were receiving distributions or returns on their investment. To back up their claims, Holdaway and Kyes created and sent to investors fake documents, including phony account statements and forged letters from an accountant. Holdaway, with Kyes’s knowledge and participation, also sent emails to investors under fake names, to give the appearance that multiple people worked for Holdaway and Kyes, and lied about traveling to Europe or elsewhere to work on their investments.
On June 14, 2016, a federal grand jury indicted Kyes and Holdaway charging them with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; eighteen counts of wire fraud, in violation of 18 U.S.C. § 1343; one count of conspiracy to engage in monetary transactions in property derived from specified unlawful activity, in violation of 18 U.S.C. § 1956(h); and five counts of engaging in monetary transactions in property derived from specified unlawful activity, in violation of 18 U.S.C. § 1957.
On October 6, 2017, Holdaway pleaded guilty to one count of conspiracy to commit wire fraud. His next appearance is a status conference scheduled for October 5, 2018, at 11:00 a.m., before Judge Illston.
Kyes’s sentencing hearing on today’s convictions is scheduled for August 17, 2018, at 11:00 a.m., before Judge Illston, in San Francisco. The maximum statutory penalty for each count of conspiracy to commit wire fraud and wire fraud is 20 years in prison, a fine of $250,000, 3 years of supervised release, forfeiture, and restitution. The maximum statutory penalty for each count of conspiracy to commit money laundering and money laundering is 10 years in prison, a fine of $250,000, 3 years of supervised release, forfeiture, and restitution. Any sentence following conviction, however, will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Benjamin Kingsley and Helen Gilbert are prosecuting the case with assistance from Bridget Kilkenny and Patricia Mahoney. The prosecution is the result of an investigation by the FBI and the IRS, Criminal Investigation.
Former Mississippi Detention Officers Plead Guilty to Juvenile Assault and Cover-UpRead the Press Release
The Department of Justice announced that Edward Gibson, 28, an officer at a Mississippi juvenile detention facility, pleaded guilty yesterday in federal court to beating a juvenile in his custody. His supervisor, Dianne Williams, 60, pleaded guilty on April 17 to helping cover up the assault, a plea that had not been previously announced. Gibson’s indictment was unsealed in federal court on March 7 and a separate indictment unsealed on the same date charged Williams with writing a false report to cover up the assault.
Gibson was working as an officer at the Leflore County Juvenile Detention Center on June 16, 2016, when he assaulted a teenage victim who was in handcuffs and leg shackles. Gibson threw an electric fan at the victim, hitting him in the upper chest. Gibson then punched the victim multiple times before being pulled off of the victim by two other officers. The other officers had to step in twice more to prevent Gibson from further assaulting the victim.
According to admissions made by Gibson during the plea hearing, the victim was never physically aggressive toward Gibson, and Gibson assaulted him only because the victim made statements that angered him. Gibson weighed approximately 315 pounds; the victim weighed approximately 130 pounds.
Gibson faces a maximum sentence of ten years in prison. A sentencing date has not yet been scheduled.
Williams admitted that she was aware of the assault, failed to inform any responsible authority, and wrote a false report to cover it up. She pleaded guilty to misprision of a felony, which carries a maximum sentence of three years in prison. Her sentencing is set for Aug. 23.
“Detention officers have an important duty to protect juveniles from bodily harm or abuse while in custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “This Justice Department will not tolerate illegal acts of violence or attempts to obstruct justice by corrections officers, and will continue to protect the civil rights of all individuals.”
“Our Constitution and laws mandate that all prisoners and detainees be treated fairly and humanely and never face the excessive and unwarranted use of force employed in this case,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi. “I know that our brothers and sisters in law enforcement feel the same and are ashamed by the actions of the abhorrent few.”
After the assault of the juvenile was discovered, the Detention Center fired Gibson and Williams.
This case was investigated by the Jackson Division of the Federal Bureau of Investigation, with the cooperation of the Leflore County Detention Center and the Leflore County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorney Robert Mims of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Former Military Sealift Command Contractor Sentenced to 87 Months for Bribery and FraudRead the Press Release
A former contractor at the Military Sealift Command was sentenced to 87 months for his role in a bribery and fraud conspiracy through which he received nearly $3 million in bribes from approximately 1999 to approximately 2014.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting United States Attorney Tracy Doherty-McCormick for the Eastern District of Virginia; Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Special Agent in Charge Clifton J. Everton, III of the Naval Criminal Investigative Service (NCIS)’s Norfolk Field Office, made the announcement.
Scott B. Miserendino, Sr., 59, formerly of Stafford, Virginia, pled guilty on January 24, 2018, to one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery, and three counts of honest services mail fraud.
Miserendino was a government contractor at MSC, an entity of the U.S. Department of the Navy that provides support and specialized services to the Navy and other U.S. military forces. According to the plea agreement, Miserendino and Joseph P. Allen, the owner of a government contracting company, conspired to use Miserendino’s position at MSC to enrich themselves through bribery.
Specifically, beginning in or around 1999, Miserendino used his position and influence at MSC to help Allen and his company obtain and expand a commission agreement with a telecommunications company that sold maritime satellite services to MSC. With that agreement in place, for more than a decade, Miserendino used his influence at MSC to take official acts to benefit the telecommunications company, which, through the commission agreement, also benefited Allen and his company.
Unknown to MSC or the telecommunications company, Allen then paid half of the commission payments from the telecommunications company to Miserendino as bribes. In total, between approximately 1999 and approximately 2014, Allen received more than $6 million from the telecommunications company, and in turn paid more than $2.8 million to Miserendino in bribes.
For his role in the scheme, Allen, 57, formerly of Panama City, Florida, pleaded guilty to one count of conspiracy to commit bribery in April 2017, and was sentenced on July 28, 2017, to five years in prison by U.S. District Judge Arenda L. Wright Allen, in Norfolk.
The FBI, DCIS, and NCIS are investigating the case. Trial Attorneys Sean Mulryne and Molly Gaston of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Steve Haynie for the Eastern District of Virginia are prosecuting the case.
Former Lake Oswego Financial Advisor Pleads Guilty to Defrauding InvestorsRead the Press Release
PORTLAND, Ore. – Shayne Kniss, 42, formerly of Lake Oswego, Oregon, pleaded guilty today to one count of wire fraud for defrauding clients of his investment firm, Iris Capital Management Group, LLC (Iris Capital).
“Investment advisors are legally required to act in the best interest of the clients. This defendant did the exact opposite.” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Kniss lied to and took advantage of his clients, many of whom were over 65, to fund his own personal pursuits.”
“Kniss treated these victims - and their savings accounts - like his personal ATM,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “If you - or senior citizens in your family - are considering investments of any kind, make sure you do your research. Only invest with reputable firms and, if the promised returns sound too good to be true, they likely are.”
According to court documents, Kniss founded Iris Capital in October 2010 and offered real estate based investments in several different funds to investors. Through various means, including brochures, private placement memoranda, emails, and personal presentations, Kniss misrepresented how he would manage investor funds.
Between February 2011 and April 2013, 47 people invested approximately $4.3 million in Kniss’s funds. Kniss commingled investor money among the funds, used new investments to make payments to prior investors, and used more than $500,000 for person use, including investing in a retail marijuana enterprise.
Kniss faces a maximum sentence of 20 years in prison, a $250,000 fine or twice the gross financial gains or losses resulting from the offense if greater than $250,000, and three years of supervised release. He will be sentenced on Wednesday, August 22, 2018 before U.S. District Court Judge Michael W. Mosman.
The FBI investigated this case. It is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Former GBI inspector indicted for charging over $60,000 on her government credit cardRead the Press Release
ATLANTA - Sandra J. Stevens, f/k/a “Sandra J. Putnam,” has been charged with abusing her position as a high-ranking member of the Georgia Bureau of Investigation by ringing up more than 325 personal charges, totaling over $60,000, on her government credit card.
“Based on her position and years of service, the GBI and the law enforcement community placed great trust in Stevens,” said U.S. Attorney Byung J. “BJay” Pak. “Unfortunately, Stevens broke that trust for her own personal gain.”
“The GBI supports the strong stand the U.S. Attorney’s Office for the Northern District of Georgia has taken in this case,” said Georgia Bureau of Investigation Director Vernon Keenan. “This indictment sends a clear message that public corruption will not be tolerated no matter who commits the act. Sworn officers must obey the law while they enforce the law.”
According to U.S. Attorney Pak and the indictment: The Georgia Bureau of Investigation (“GBI”) is a statewide agency that provides assistance to the criminal justice system in the areas of criminal investigations, forensic laboratory services, and computerized criminal justice information.
In October 1994, Stevens joined the GBI as an Intelligence Technician. On June 3, 1999, after becoming a Special Agent, Stevens took an oath of office to support and defend the Constitutions of the U.S. and the State of Georgia; to maintain public trust and abide by the GBI’s Code of Ethics; and to obey the laws of the land and the regulations of the GBI.
As a Special Agent with the GBI, Stevens held several high-ranking leadership positions, including being the Special Agent in Charge of the Child Exploitation and Computer Crimes Unit, where she supervised approximately 25 GBI employees; and an Inspector of the Investigative Division, where she supervised approximately 55 GBI employees. As the Inspector of the Investigative Division, Stevens earned more than $100,000 per year.
As a state agency, the GBI participates in Georgia’s Visa Purchasing Card (“P-Card”) Program. P-Cards are credit cards provided to Georgia employees for official business purchases, such as supplies, materials, equipment, and services for official use. State policy expressly prohibits using P-Card for personal purchases. P-Card users are required to reconcile all purchases by electronically uploading receipts for each P-Card transaction.
In 1998, the GBI issued Stevens a P-Card for business-related purchases and expenses. As P-Card holder, Stevens signed an agreement stating that “under no circumstances will [she] use the Purchasing Card to make personal purchases, either for [her]self or for others.”
From approximately May 9, 2013 to August 17, 2016, Stevens allegedly used her P-Card and the P-Cards of least six other GBI employees to make more than 325 unauthorized purchases of goods and services for her personal benefit or the personal benefit of others, including a seven-piece dining set, a corn hole game set, two chaise lounge chairs, and a 65-inch ultra HD smart television.
Stevens also allegedly submitted altered receipts to the GBI in which she changed the description of the items purchased, the addresses to which the items were shipped, or both the item description and the shipping address. For example, on May 27, 2016, Stevens used another GBI employee’s P-Card to order a sofa from Amazon.com that was delivered to her home in Covington, Georgia. Subsequently, Stevens submitted a false receipt to the GBI in which she misrepresented the item description as 12 anti-spyware software discs, rather than a sofa, and misrepresented the shipping address as the GBI’s Headquarters in Decatur, Georgia, rather than her home address.
In total, the GBI paid over $60,000 for more than 325 unauthorized purchases made by Stevens on GBI P-Cards. As a result of Stevens’s scheme to defraud, federal money from the U.S. Department of Justice and U.S. Department of Homeland Security grants was impacted.
A grand jury has charged Sandra J. Stevens, f/k/a “Sandra J. Putnam, 46, of Covington, Georgia, with four counts of mail fraud and three counts of federal program theft.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Georgia Bureau of Investigation.
Assistant U.S Attorneys Jeffrey W. Davis and Jolee Porter are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former CIA Officer Charged with Conspiracy to Commit EspionageRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a former Central Intelligence Agency (CIA) case officer with one count of conspiracy to gather or deliver national defense information to aid the People’s Republic of China, and two counts of unlawfully retaining documents related to the national defense.
“The allegations in this case are troubling,” said Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia. “Conspiring with foreign agents poses a real and serious threat to our national security. The United States will hold accountable those who conspire to compromise our national security.”
Jerry Chun Shing Lee, 53, of Hong Kong, is a U.S. citizen who speaks fluent Chinese. According to allegations in the indictment, Lee was a case officer for the CIA until 2007. After leaving the CIA, Lee resided in Hong Kong. In April 2010, two Chinese intelligence officers (IOs) approached Lee and offered to pay him for information. The taskings allegedly requested that Lee provide documents and information relating to the national defense of the United States. According to the indictment, the IOs provided Lee with a series of email addresses so that he could communicate covertly with them. The indictment further alleges that Lee prepared documents responsive to the taskings, made numerous unexplained cash deposits, and repeatedly lied to the U.S. government during voluntary interviews when asked about travel to China and his actions overseas. Lee received taskings from the Chinese IOs until at least 2011.
“When government officials violate their oath to defend our nation and protect its secrets, the National Security Division will hold them accountable,” said John C. Demers, Assistant Attorney General for National Security. “Lee, a former CIA case officer, allegedly conspired to provide information to the Chinese government about the national defense of the United States. Lee’s alleged actions betrayed the American people and his former colleagues at the CIA. We will not tolerate such threats to our country or its national security.”
In August 2012, Lee and his family left Hong Kong to return to the United States to live in northern Virginia. While traveling back to the United States, Lee and his family had hotel stays in Hawaii and Virginia. During each of the hotel stays, FBI agents conducted court-authorized searches of Lee’s room and luggage, and found that Lee was in unauthorized possession of materials relating to the national defense. Specifically, agents found two books containing handwritten notes that contained classified information, including but not limited to, true names and phone numbers of assets and covert CIA employees, operational notes from asset meetings, operational meeting locations and locations of covert facilities. Agents also found a thumb drive on which was stored a document later determined to contain information classified at the Secret level. During voluntary interviews with the FBI, Lee admitted preparing the document in response to taskings from the IO.
“Espionage is a serious crime that can expose our country to grave danger” said Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office. “The FBI will continue to aggressively pursue all allegations of espionage.”
Lee is charged with one count of conspiracy to gather or deliver national defense information to aid a foreign government, and two counts of unlawfully retaining documents related to the national defense. He faces a maximum penalty of life in prison, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney Neil Hammerstrom of the Eastern District of Virginia, and Trial Attorneys Patrick T. Murphy and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-89.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former CIA Case Officer Charged with Conspiracy to Commit Espionage and Retention of National Defense InformationRead the Press Release
The Justice Department announced today that Jerry Chun Shing Lee, 53, of Hong Kong, was indicted by a federal grand jury sitting in the Eastern District of Virginia with one count of conspiracy to gather or deliver national defense information to aid a foreign government, and two counts of unlawfully retaining documents related to the national defense.
Assistant Attorney General for National Security John C. Demers, Acting U.S. Attorney Tracy Doherty-McCormick for the Eastern District of Virginia, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office announced the charges.
“When government officials violate their oath to defend our nation and protect its secrets, the National Security Division will hold them accountable,” said Assistant Attorney General Demers. “Lee, a former CIA case officer, allegedly conspired to provide information to the Chinese government about the national defense of the United States. Lee’s alleged actions betrayed the American people and his former colleagues at the CIA. We will not tolerate such threats to our country or its national security.”
“The allegations in this case are troubling,” said Acting U.S. Attorney Doherty-McCormick. “Conspiring with foreign agents poses a real and serious threat toward our national security. The United States will hold accountable those who conspire to compromise our national security.”
“Espionage is a serious crime that can expose our country to grave danger” said Assistant Director in Charge McNamara. “The FBI will continue to aggressively pursue all allegations of espionage.”
Lee is a U.S. citizen who speaks fluent Chinese. According to the indictment, Lee was a case officer for the Central Intelligence Agency (CIA) until 2007. After leaving the CIA, Lee resided in Hong Kong. The indictment alleges that in April 2010, two Chinese intelligence officers (IOs) approached Lee and offered to pay him for information. The indictment alleges that Lee received taskings from the IOs until at least 2011. The taskings allegedly requested that Lee provide documents and information relating to the national defense of the United States. According to the indictment, the IOs provided Lee with a series of email addresses so that he could communicate covertly with them. The indictment further alleges that Lee prepared documents responsive to the taskings, made numerous unexplained cash deposits, and repeatedly lied to the U.S. government during voluntary interviews when asked about travel to China and his actions overseas.
In August 2012, Lee and his family left Hong Kong to return to the United States to live in northern Virginia. While traveling back to the United States, Lee and his family had hotel stays in Hawaii and Virginia. During each of the hotel stays, FBI agents conducted court-authorized searches of Lee’s room and luggage, and found that Lee was in unauthorized possession of materials relating to the national defense. Specifically, agents found two books containing handwritten notes that contained classified information, including but not limited to, true names and phone numbers of assets and covert CIA employees, operational notes from asset meetings, operational meeting locations and locations of covert facilities. Agents also found a thumb drive on which was stored a document later determined to contain information classified at the Secret level. During voluntary interviews with the FBI, Lee admitted preparing the document in response to taskings from the IO.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, Lee faces a maximum sentence of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI’s Washington Field Office. The case is being prosecuted by Trial Attorneys Adam L. Small and Patrick T. Murphy of National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorney Neil Hammerstrom of the Eastern District of Virginia.
Former Belmont Resident Convicted of $6 Million Investment Fraud SchemeRead the Press Release
BOSTON – A former Belmont resident was convicted today by a federal jury in connection with a decade long Ponzi-style investment scheme in which he defrauded 15 investors of over $6 million.
John William Cranney, a/k/a Jack Cranney, 76, of El Paso, Texas, was convicted following a two-week trial of three counts of wire fraud, 12 counts of mail fraud, and three counts of money laundering. U.S. District Court Judge Indira Talwani scheduled sentencing for Aug. 2, 2018. Pending sentencing, Judge Talwani released Cranney on electronic monitoring and restricted his travel to El Paso County, Texas.
From 2001 through 2012, Cranney solicited money from people with whom he had personal and business relationships and represented that he would invest their money in an investment fund or a retirement plan he said he managed. However, instead of investing the money, Cranney spent his victims’ savings and retirement on his own bills and debts to fund his declining health and nutrition products distributorship. To carry out his scheme, Cranney created shell companies that he named specifically to sound like investment funds. He also set up a sham Employee Stock Ownership Plan to convince victims to transfer their IRA and 401k retirement funds to him. Cranney’s scheme ultimately collapsed in early 2012 when he could not obtain new investment money and initial investors began demanding return of their funds.
The mail and wire fraud charges provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain/loss, whichever is greater. The money laundering charge provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the amount of the criminally derived property in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration made the announcement today. The U.S. Attorney’s Office also received assistance from the Office of the Secretary of State of the Commonwealth of Massachusetts and the U.S. Trustee’s Office in Boston. Assistant U.S. Attorneys Mark J. Balthazard and Kriss Basil of Lelling’s Economic Crimes Unit are prosecuting the case.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Health Care Providers Indicted on Conspiracy and Health Care Fraud. Donna Becker, age 54, of Greenville, South Carolina; Marcela Dolores Farrer, age 53, of Columbia, South Carolina; and Carol Guardiola, age 65, of Columbia, South Carolina, were charged in a six-count Indictment. All three defendants were charged with Conspiracy, a violation of Title 18, United States Code, Section 371; Bribery of Public Officials and Witnesses, a violation of Title 18 , United States Code, Section 201(c)(1)(B); and Acts Affecting a Personal Financial Interest, a violation of Title 18, United States Code, Section 208(a). The maximum penalty the defendants could receive is a fine of $250,000 and/or five (5) years imprisonment. The case was investigated by agents of the Veterans Affairs, Office of Inspector General, and is assigned to Assistant United States Attorney William J. Watkins, Jr. of the Greenville office for prosecution.
Greenwood Resident Indicted on Murder for Hire. Brandon Cory Lecroy, age 25, of Hodges, South Carolina, was charged in a two-count Indictment with Solicitation to Commit a Crime of Violence, a violation of Title 18, United States Code, Section 373, and Use of Interstate Commerce Facilities in the Commission of Murder-For-Hire, a violation of Title 18, United States Code, Section 1958(a). The maximum penalty Lecroy could receive is a fine of $250,000 and/or ten (10) years imprisonment. The case was investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Two Individuals Charged with Possession of Contraband Cell Phones in Federal Prison. Megan Eileen Wall, age 22, of Salisbury, North Carolina, was charged in a two-count Indictment with knowingly providing a contraband cell phone to William Lewis Meeks, an inmate of Edgefield Federal Correctional Facility, a violation of Title 18, United States Code, Section 1791(a)(1). William Lewis Meeks, age 40, an inmate of Edgefield Federal Correctional Facility, was charged with knowingly possessing a contraband cell phone, a violation of Title 18, United States Code, Section 1791(a)(2). The maximum penalty Wall and Meeks could face is a fine of $100,000.00 and/or imprisonment of not more than one year. The case was investigated by the Federal Bureau of Investigation and Bureau of Prisons and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Individual Indicted for False Claim to be a US Citizen. Jose Rodolfo Morales Ruiz, age 20, was charged in a three-count Indictment with Fraud and Misuse of Visas, Permits and Other Documents, in violation of Title 18, United States Code, Section 1546(a), which carries a maximum penalty of a fine of $250,000 and/or ten (10) years imprisonment; False Claim to be a US Citizen, in violation of Title 18, United States Code, Section 911, which carries a maximum penalty of a fine of $250,000 and/or three (3) years imprisonment; and False Representation of a Social Security Number, in violation of Title 42, United States Code, Section 408(a)(7)(B), which carries a maximum penalty of a fine of $250,000 and/or five (5) years imprisonment. The case was investigated by agents of ICE-Homeland Security Investigations and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.
Townville Man Indicted on Federal Gun and Ammunition Charges. Devon Samuel Prater, age 23, of Townville, South Carolina, is charged in a one-count Indictment with Felon in Possession of firearms and ammunition, a violation of Title 18, United States Code, Section 922(g)(1). The maximum possible penalty Prater could receive, depending on his prior criminal history, is up to life imprisonment. The case was investigated by the Anderson Police Department and agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Essex County, New Jersey, Man Admits $2 Million Fraudulent Check Scheme Targeting Home-Improvement StoresRead the Press Release
NEWARK, N.J. – An Irvington, New Jersey, man today admitted his role in a phony check scheme that stole over $2 million in merchandise from multiple home-improvement stores throughout the country, U.S. Attorney Craig Carpenito announced.
Koreen Higgs, 44, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud.According to documents filed in this case and statements made in court:
Starting in December 2013 and continuing through February 2017, several individuals, including Higgs, conspired to obtain merchandise or store credit from home-improvement stores in locations along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.
Higgs and others entered home-improvement and other retail stores and gathered several high-value items like air conditioners or hardwood flooring. Higgs and others then typically “purchased” the items either by handing a cashier a fraudulent check with a phony name but authentic account and routing numbers, or by pretending to be an authorized signatory on a store credit account that Higgs and others had previously opened with a phony check.
During some of the transactions, Higgs and others displayed fake driver’s licenses that had been created by one of the other conspirators, which either duplicated the phony name imprinted on the fraudulent check they presented for payment or matched the name of an authorized signatory on a store credit account that they had previously opened.
In total, Higgs and others stole over $2 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, and South Carolina.
Higgs faces 20 years in prison and a $250,000 fine for the wire fraud conspiracy charge. Sentencing is scheduled for Sept. 17, 2018.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.Defense counsel: Alexander Booth Esq., Jersey City, New Jersey
Elmira Man Sentenced 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 Howard Edward Brooks, 40, of Elmira, NY, who was convicted of receipt, attempted distribution, and four counts of possession of child pornography involving prepubescent minors, was sentenced to 84 months in prison and 10 years of supervised release by U.S. District Court Judge David G. Larimer. The defendant must also register as a sex offender.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Brooks, a former teacher at the Elmira Christian Academy, was arrested in August of 2015 following the execution of a federal search warrant at his Elmira residence. During that search, FBI Agents found several digital items containing photos and videos of children as young as toddlers being raped.
When FBI Agents arrived to execute the search warrant, Brooks tried to flush several thumb drives down the toilet. The defendant stated that he did so because he saw the FBI in his driveway and knew the thumb drives contained child pornography. However, the thumb drives were recovered from the sewer under Brooks’ residence with the assistance of the Chemung County Department of Public Works. Those thumb drives were then forensically analyzed and hundreds of child pornography videos were recovered from each.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
El Departamento de Justicia Llega a un Acuerdo con un Banco de Minnesota para Resolver Alegatos de Discriminación en PréstamosRead the Press Release
WASHINGTON – El Departamento de Justicia llegó hoy a un acuerdo en su pleito contra KleinBank, para resolver alegatos de que el banco discriminó en los préstamos al tomar parte en “redlining”, predominantemente en los vecindarios habitados por minorías en las Ciudades Gemelas de Minneapolis-St. Paul, Minnesota, y en sus alrededores. “Redlining” es un término que describe la práctica ilegal llevada a cabo por prestamistas quienes deliberadamente evitan proporcionar servicios a individuos que viven en vecindarios habitados por minorías debido a la raza o el origen nacional de quienes residen en ellos.
Como parte del acuerdo, las partes han acordado solicitar conjuntamente la desestimación del pleito que el Departamento presentó en el Tribunal de Distrito de los EE. UU. para el Distrito de Minnesota en 2017. La demanda del Departamento alegaba que KleinBank violó la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito, las que prohíben a las instituciones financieras discriminar con base en la raza y el origen nacional al otorgar servicios de créditos hipotecarios. La demanda alegaba que, desde 2010 hasta 2015, como mínimo, KleinBank mantuvo una práctica discriminatoria en el otorgamiento de préstamos en la zona de las Ciudades Gemelas al deliberadamente evitar proporcionar estos servicios a los residentes de vecindarios habitados por minorías debido a la raza o a el origen nacional de quienes vivían en ellos.
KleinBank es el banco familiar más grande de Minnesota, ya que cuenta con 19 sucursales en la zona de Minneapolis-St. Paul y con activos de más de $1.9 mil millones. Según el acuerdo, KleinBank tomará una serie de medidas para remediar el daño que se alega en la demanda y para asegurar que sus préstamos hipotecarios se otorguen sin incurrir en prácticas discriminatorias. El banco ampliará sus servicios bancarios en los vecindarios habitados predominantemente por minorías en la zona de Minneapolis de diferentes maneras. Por ejemplo, invertirá $300,000 en un fondo de subsidios para préstamos con el objeto de aumentar el monto de los créditos que KleinBank brinda a los residentes de los vecindarios habitados predominantemente por minorías, y otros $300,000 en publicidad, promoción comunitaria, educación financiera y reparación crediticia para mejorar la visibilidad del banco en su nueva zona de servicio y lograr que la ampliación sea exitosa. El banco empleará a un oficial quien se encargará del desarrollo comunitario y supervisará el desarrollo del servicio de préstamos en los vecindarios habitados predominantemente por minorías, y proveerá capacitación sobre servicios de préstamos, incluyendo capacitación en redlining, para sus empleados y funcionarios.
“La legislación federal prohíbe a los prestamistas discriminar contra los solicitantes de créditos hipotecarios y otros clientes potenciales basándose en la raza u el origen nacional”, afirmó el Fiscal General Auxiliar en funciones General John Gore de la División de Derechos Civiles. “El Departamento de Justicia continuará usando su autoridad para hacer cumplir la ley en la lucha contra esta discriminación ilegal”.
La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del Departamento de Justicia es llevada a cabo por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. En los informes anuales que el Fiscal General presenta ante el Congreso sobre el cumplimiento de la Ley de Igualdad de Oportunidades de Crédito se destacan los logros del Departamento en lo referente al otorgamiento justo de préstamos. Dichos informes se pueden encontrar en www.justice.gov/crt/publications/.
Se encuentra disponible una copia de la demanda y del acuerdo conciliatorio, así como información adicional acerca de las medidas tomadas por el Departamento de Justicia para hacer cumplir las prácticas justas en el otorgamiento de créditos, en el sitio web del Departamento de Justicia en www.justice.gov/fairhousing.
Eastern Panhandle residents admit to drug and firearm chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg man and a Kearneysville woman have admitted to federal charges, United States Attorney Bill Powell announced.
Lante Jerrel Cook, age 29, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Base.” Cook admitted to possessing crack cocaine in October 2017 in Berkeley County.
Tiffany Rosalind Cole, age 29, pled guilty to one count of “Aiding and Abetting the Possession of Stolen Firearm.” Cole admitted to having a stolen .9mm caliber pistol in October 2017 in Berkeley County.
Cook faces up to 20 years incarceration and a fine of up to $1,000,000. Cole faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacoo, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Delaware County Man Sentenced to 30 Years in Federal Prison for Manufacturing and Possessing Child PornographyRead the Press Release
PHILADELPHIA – Kristopher Pylant, of Upper Darby, PA, was sentenced on May 3, 2018, to 30 years in federal prison for manufacturing thousands of sexually explicit images of his minor stepdaughter and for his possession of child pornography, announced U.S. Attorney William M. McSwain.
“This was a horrific crime in which a young victim endured an unimaginable ordeal for over three years,” said U.S Attorney McSwain. “The defendant victimized and sexually assaulted his stepdaughter beginning when she was just 13 years old, and he cruelly videotaped his assaults.”
U.S. District Judge Cynthia M. Rufe called the sexual assaults “sordid” and the defendant “dangerous and controlling.” Judge Rufe further characterized the defendant’s absolute control over his stepdaughter by noting, “You don’t need chains and whips to put someone in bondage.”
In addition to the term of imprisonment, the court imposed a lifetime of supervised release and ordered that the defendant have no contact with the victim or her family for the rest of his life.
The case was investigated by the FBI in conjunction with the Delaware County District Attorney’s Office and the Upper Darby Police Department. It was prosecuted by Assistant United States Attorney Michelle Rotella.
DEA New England Field Division Collects 44 Tons of Prescription Drugs During the 15th National Prescription Drug Take-Back DayRead the Press Release
(BOSTON) – The final tally is in from the 15th National Prescription Drug Take-Back Day on April 28th, 2018. The Drug Enforcement Administration’s New England Field Division (NEFD) and its partners, over the course of four hours, collected 88,182.07 pounds or 44 tons of expired, unused, and unwanted prescription drugs at 580 collection sites throughout New England. This is in comparison to the first National Prescription Drug Take-Back Day on September 2010, when the NEFD collected 25,810 pounds of unwanted drugs. It is estimated that 10% of the drugs collected are opioid pain killers which would represent approximately 8,818 pounds of opioids that are out of medicine cabinets and potentially off our streets.
“Another amazing effort by New Englanders to continue to make their homes safer for our youth,” said DEA Acting Special Agent in Charge Albert Angelucci. “Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. DEA thanks the citizens of New England and our dedicated Law Enforcement partners for their efforts in making this initiative a success.”
The following is a breakdown of collected weights for the six New England States:
CT 8,251.6 lbs.
MA 27,126.1 lbs.
ME 28,560 lbs.
NH 14,895 lbs.
RI 3,341.5 lbs.
VT 6,007.87 lbs.
TOTAL 88,182.07 lbs.
DEA Brings in Record Number of Unused Pills during National Prescription Drug Take Back DayRead the Press Release
Americans nationwide did their part to drop off a record number of unused, unwanted or expired prescription medications during the DEA’s 15th National Prescription Drug Take Back Day, at close to 6,000 sites across the country. Together with a record-setting amount of local, state and federal partners, DEA collected and destroyed close to one million pounds—nearly 475 tons—of potentially dangerous expired, unused, and unwanted prescription drugs, making it the most successful event in DEA history. This brings the total amount of prescription drugs collected nationwide by DEA since the fall of 2010 to 9,964,714 pounds, or 4,982 tons.
Oklahomans located in the 11 counties (Tulsa, Pawnee, Osage, Creek, Washington, Nowata, Rogers, Craig, Mayes, Ottawa, and Delaware Counties) which comprise the federal Northern District of Oklahoma also participated in record numbers, resulting in the collection of 1,160 pounds of expired, unused, and unwanted prescription drugs. United States Attorney Trent Shores and DEA Special Agent in Charge Clyde E. Shelley, Jr., championed the efforts of federal, state, local, and tribal community partners who helped make the event a success.
“I am thankful to the DEA and every Oklahoman who participated in National Prescription Drug Take Back Day. The simple act of safely disposing of outdated and unused prescription drugs helps to stop the spread of addiction and keeps those drugs out of the wrong hands. Far too many Oklahomans began their paths to addiction through the misuse of unneeded prescription drugs just sitting in a medicine cabinet at home,” said United States Attorney Shores.
“We know as a society, we cannot enforce our way out of the raging opioid crisis. I want to thank all of you in the communities who came out and did their part helping us to collect medications which are no longer needed and taking the curiosity out of the cabinets. Doing this may have saved someone from becoming an addict,” SAC Shelley stated. “We collected 1,160 pounds at NTBI XIII on April 28th in the Northern District of Oklahoma. It is an increase of 256 pounds collected from NTBI XII,” said SAC Shelley.Now in its 9th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is October 27, 2018.Connecticut Man Sentenced to Prison for Role in $5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. - A Fairfield, Connecticut, man was sentenced today to 19 months in prison for his role in a securities scheme that defrauded investors out of more than $5 million, U.S. Attorney Carpenito said.
James Trolice, 64, previously pleaded guilty before U.S. District Judge William J. Martini to a two-count information charging him with securities fraud and transacting in criminal proceeds. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Trolice was the president and owner of Trolice Consulting Services LLC and the president and chief marketing officer of eAgency, a California-based company that developed mobile security products. Trolice and Lee Vaccaro, 46, of Las Vegas, sold investors interests in Trolice Consulting Services and companies Vaccaro controlled and falsely represented to investors that those companies held warrants in eAgency. Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.
Trolice admitted that he made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies; the amount of money he had personally invested in and raised for eAgency; and his current position at eAgency.
Trolice also admitted that beginning in January 2011, the dollar amount of interests Trolice and Vaccaro sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies. Neither Trolice nor Vaccaro disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies. Altogether, Trolice and Vaccaro defrauded investors out of more than $5 million.
In addition to the prison term, Judge Martini sentenced Trolice to three years of supervised release and ordered him to pay $5,000,512.65 representing the proceeds of his offense.
Vaccaro previously pleaded guilty to his role in the scheme and was sentenced Feb. 17, 2017 to 78 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Marc P. Berger and Senior Associate Regional Director Sanjay Wadhwa, for its assistance.
The government is represented by Senior Litigation Counsel Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Executive Assistant U.S. Attorney Zach Intrater.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
Chicago Man Faces Federal Charges for Shooting an ATF AgentRead the Press Release
CHICAGO – ERNESTO GODINEZ, 27, of Chicago, was charged in connection with the shooting of an ATF Agent engaged in his official duties. A federal criminal complaint charges him with assault of a Federal Officer with a dangerous and deadly weapon.
Godinez made an initial court appearance today before United States Magistrate Judge Maria Valdez, who ordered him detained until a detention hearing on Thursday, May 17th at 11:00 am.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Eddie Johnson, Superintendent of the Chicago Police Department. Substantial assistance in the investigation of and search for Godinez was provided by the United States Marshals Service, the Federal Bureau of Investigation, the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the Illinois State Police, and several other local police departments.
The officials noted that the investigation continues.
"Violent assaults on law enforcement agents working to make the community safer will not be tolerated," remarked U.S. Attorney Lausch. "The U.S. Attorney’s Office is committed to holding such offenders accountable, as are our local, state, and Federal law enforcement partners, whose tireless investigation to identify and locate the defendant after the shooting made this prosecution possible."
"ATF is dedicated, determined and committed to making our community safer," said Special Agent in Charge Celinez Nunez. "We cannot let the people committing these violent acts to continue to terrorize our neighborhoods. We can make a difference if we stand together and hold them accountable."
"Each and every day members of law enforcement run toward the danger to keep Chicagoans safe, which is something we witnessed firsthand last Friday," said CPD Superintendent Eddie Johnson. "CPD was proud to work with our partner agencies to apprehend the individual responsible and I would like to thank the residents in the Back of the Yards community for their close cooperation in making our neighborhoods safer."
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Assault of a Federal Officer with a dangerous and deadly weapon carries a maximum sentence of 20 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorneys Kavitha Babu and Nicholas Eichenseer are representing the government.
Ernesto Godinez Complaint.pdfCharles Cole Memorial Hospital Agrees to Settle over Billing AllegationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on May 4, 2018, Charles Cole Memorial Hospital, a Pennsylvania nonprofit corporation in Coudersport, Pennsylvania, agreed to pay the United States $373,547.54 to settle allegations from two self-disclosures by Charles Cole to the Office of Inspector General for the United States Department of Health and Human Services (OIG) through the OIG’s Provider Self-Disclosure Protocol.
According to United States Attorney David J. Freed, the first self-disclosure and the investigation that followed, from August 1, 2007, through December 2013, alleged that Charles Cole failed to bill under a particular modifier to reduce the Medicare reimbursement amount for services provided by physician assistants and nurse practitioners in its pain management, orthopedics, gastroenterology, and medical oncology physician office practices. According to the second self-disclosure and the investigation that followed, Charles Cole allegedly failed to perform required face-to-face encounters with some of its Medicare hospice patients prior to the third benefit period recertification and every subsequent benefit period re-certification from January 1, 2001 through February 1, 2014. Charles Cole has since taken corrective action and voluntarily disclosed these matters. This settlement resolves the matter without the filing of litigation.
This case was investigated by the Office of Inspector General for the United States Department of Health and Human Services. This matter was handled by Assistant United States Attorney Melissa Swauger for the United States Attorney’s Office.
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CEO and President of New York Credit Union Charged with Embezzlement and FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KAM WONG, the chief executive officer and president of the oldest New York credit union (the “Credit Union”), a non-profit financial institution, was charged in Manhattan federal court with fraud, embezzlement, and aggravated identity theft offenses related to defrauding the Credit Union in connection with hundreds of thousands of sham expense reimbursements. WONG was arrested this morning and is scheduled to appear before U.S. Magistrate Judge James L. Cott in Manhattan federal court later today.
U.S. Attorney Geoffrey S. Berman said: “As alleged, the CEO and president of New York’s oldest credit union abused his position of trust as a guardian of municipal, state, and federal workers’ financial accounts to enrich himself. Kam Wong allegedly stole money from the credit union’s earnings that were intended to reward the credit union’s members, not line Wong’s pockets. I want to thank my Office’s Special Agents for their dedicated efforts in this ongoing investigation.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court and publicly available documents:
KAM WONG, the defendant, is the CEO and president of the Credit Union, a non-profit financial institution headquartered in New York, New York, which is federally insured. The Credit Union is the oldest credit union in New York State and one of the oldest and largest in the country, providing bank services to more than 425,000 members, including municipal, state, and federal workers in New York City. The Credit Union’s earnings are intended to be directed back to its members in the form of more favorable rates and fewer and lower fees for products and services.
From at least 2013 through January 2018, WONG engaged in a long-running multi-faceted scheme to obtain money from the Credit Union to which he was not entitled, and took steps to seek to conceal what he had done. Among other things, WONG allegedly embezzled from and defrauded the Credit Union by submitting sham invoices (the “Sham Invoices”) for dental work never performed on him or paid by him, and, as a result, obtained reimbursement for hundreds of thousands of dollars of such nonexistent dental work, as well as for his alleged personal tax liability for these and other payments or benefits.
In addition to the alleged fraud in connection with dental reimbursements, the ongoing investigation has revealed that WONG obtained numerous other payments from the Credit Union under suspicious or questionable circumstances. These include millions of dollars in cash payments in lieu of a long-term disability insurance policy, as well as millions more for taxes to cover those payments; reimbursement payments for repairs to a luxury vehicle the Credit Union leased to WONG, which repair work was already covered by insurance; cash withdrawals from a Credit Union business credit card for purportedly “testing” the Credit Union’s ATMs; substantial educational, housing, and living expenses for two of WONG’s friend’s relatives, whom the Credit Union hired at his direction to be interns; tens of thousands of dollars in annual cash advances, for which WONG provided no supporting documentation; and payments for 320 days of purportedly unused sick leave, in violation of WONG’s contract and the Credit Union’s policies.
WONG generally deposited the proceeds of his scheme into a Credit Union account, from which, between July 2013 and January 2018, he then withdrew approximately $1.9 million from ATMs, over the course of more than 2,500 transactions, an average of more than one-and-a-half transactions per day. From this account, WONG also spent at least approximately $3.55 million on New York State Lottery tickets.
In or about January 2018, after WONG learned about the investigation, WONG misled federal agents and Credit Union Board members in order to, after the fact, explain and justify some of these payments. On or about February 22, 2018, WONG was placed on leave by the Credit Union’s Board of Directors upon the recommendation of a Special Committee overseeing an internal investigation prompted by this criminal investigation.
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WONG, 62, of Valley Stream, Long Island, is charged with one count of embezzlement from a federally insured credit union, one count of bank fraud, one count of wire fraud, each of which carries a maximum penalty of 30 years in prison, and one count of aggravated identify theft, which carries a mandatory two-year consecutive term in prison.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the work of the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark and Daniel C. Richenthal are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Buffalo Man, Convicted Following A Jury Trial, Sentenced on Marijuana ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Arthur Clark, 29, of Buffalo, NY, who was convicted by a federal jury of conspiracy to possess with intent to distribute and to distribute marijuana, was sentenced to 24 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Laura A. Higgins and Patricia Astorga, who handled the prosecution of the case, stated that between April and September of 2015, the defendant, a courier for a commercial delivery service in Buffalo, conspired with Damarcus Hennings, Shaquata Hennings, Dashawn Abrams, Shahana Beaver and Janice Humphrey, to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo. After the marijuana was sold, the co-defendants would send the cash proceeds from their drug sales back to their marijuana source of supply in Denver.
All six defendants have been convicted in this case.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast.
Buffalo Man Sentenced on Fentanyl and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Antwone K. Dean, 37, of Buffalo, NY, who was convicted of possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm in furtherance of drug trafficking, was sentenced to 120 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that the defendant is on parole for a 2001 manslaughter conviction. On November 22, 2016, New York State parole officers visited Dean’s residence on East Eagle Street for inspection. Inside, they found the defendant, a loaded .45 caliber pistol, and a bag of powder containing fentanyl and butyryl fentanyl.
The sentencing is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in- Charge Ashan Benedict, New York Field Division.
Brazilian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Brazilian national pleaded guilty today and was sentenced in federal court in Boston for illegally reentering the United States after being deported.
Nivaldo Gomes, 57, pleaded guilty to one count of illegal reentry of a deported alien before U.S. Senior District Court Judge Rya W. Zobel, who sentenced Gomes to time served, nine days. Gomes will be subject to deportation proceedings.
In March 2018, Gomes was encountered by law enforcement and determined to be illegally present in the United States. Gomes was previously deported on Nov. 14, 2012.
United States Attorney Andrew E. Lelling and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Boston Woman Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A Boston woman pleaded guilty today in federal court in Boston to robbing two banks in the greater Boston area.
Tamea Chambers, 37, pleaded guilty to two counts of bank robbery. U.S. Senior District Court Judge George A. O’Toole scheduled sentencing for Sept. 17, 2018. Chambers was arrested on Oct. 24, 2017, charged in federal court, and has been in custody since.
On Oct. 17, 2017, a branch of the East Boston Savings Bank in Roxbury was robbed. The tellers stated that a black female entered the bank, demanded money and stated that she had a gun. The tellers gave the robber cash from their drawers and the robber exited the bank. Information, including pictures of the robber, was disseminated on various public websites and provided to local media. Two days later, on Oct. 19, 2017, a branch of Bank of America in Brookline was robbed. The tellers described the robber as a black female wearing a dark wig and reported that the robber entered the bank, stated that she had a gun and demanded cash. Based on the similar descriptions by the tellers at both banks, law enforcement suspected that the same individual was involved in both robberies.
Video footage from a business adjoining one of the banks captured images of the female robber, later determined to be Chambers, in the company of a man. The man, later determined to be Paul Landrum, and previously dubbed by law enforcement as the “Route 128 Bandit,” was the suspect in eight other bank robberies in the Greater Boston area.
On Oct. 24, 2017, Chambers and Landrum were arrested on unrelated charges and admitted their involvement in the various bank robberies
On May 1, 2018, Landrum pleaded guilty to bank robbery and is scheduled to be sentenced in August 2018.
Chambers faces a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. The Massachusetts State Police, and the Boston, Brookline, Medford, Somerville, and Wellesley Police Departments assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Boston Gang Member Sentenced for Cocaine DistributionRead the Press Release
BOSTON – A member of the Orchard Park Trailblazers Gang was sentenced yesterday in federal court in Boston for selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Tyree Draughn, a/k/a “TY,” 25, of Boston, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to 18 months in prison and six years of supervised release, during which time Draughn will be precluded from entering the Orchard Gardens Housing Development and from being in contact or associating with approximately 20 individuals from the same area. In January 2018, Draughn pleaded guilty to one count of distribution of cocaine base within 1,000 feet of a school.
On May 10, 2017, Draughn sold cocaine base to a cooperating witness near a school in Roxbury. Draughn was on pretrial release on two state drug distribution cases at the time of May 10th sale. Since that time, he has been convicted on one of those cases and has also been charged in a third case alleging that was attempting to smuggle drugs into a prison.
The arrests followed a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to area schools and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city, which has produced numerous crimes of violence.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.
Bossier City car dealer sentenced to 15 months in prison for $177,000 in fraudulent credit union loansRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Benton man was sentenced Monday to 15 months in prison for defrauding a local credit union out of $177,000.
Larry Wayne Toms Jr., 42, of Benton, Louisiana, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of bank fraud. He was also sentenced to five years of supervised release and was ordered to pay $161,066 restitution. According to the December 12, 2018 guilty plea, Toms, who is a car dealer in Bossier City, Louisiana, submitted fraudulent loan applications for the purchase of three cars from June 1, 2015 to July 23, 2015 to the Post Office Employees Federal Credit Union in Shreveport, and the credit union disbursed $177,000 to Toms. The three vehicles listed in loan applications did not exist.
The FBI conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Baltimore Man Pleads Guilty to CarjackingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Michael Awosika, age 39, of Baltimore, Maryland, pleaded guilty today to carjacking.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Commissioner Darryl De Sousa of the Baltimore Police Department.
According to his plea agreement, on April 8, 2017, Awosika carjacked the owner of a 2009 Chrysler Sebring on the 1900 block of West Lafayette Street in Baltimore. The carjacking victim was taking her five-month-old grandson out of the vehicle when Awosika got into the front passenger seat of the vehicle. Awosika slid over to the driver’s seat of the vehicle and pointed a revolver at the victim and her grandson. Awosika then fled with the victim’s vehicle.
As the victim reported the carjacking to the Baltimore Police Department (BPD), a BPD officer saw the stolen vehicle driving through a red light at a high rate of speed. The BPD officer began following vehicle to initiate a traffic stop but was unable to keep up with Awosika.
A Baltimore City Fire Department captain then observed Awosika driving down the road in a dangerous manner. The captain, thinking that the driver of the vehicle was in distress, turned on his vehicle’s lights and sirens and began following the stolen vehicle. The vehicle continued to weave through traffic until it crashed into several vehicles at another intersection.
As the fire captain approached the stolen vehicle, Awosika got out of the vehicle and fired two shots at the captain’s vehicle. Awosika then ran and threw the handgun onto the street. Another BPD officer on patrol heard the gunshots and responded to the area to assist. Upon arrival, the officer found the revolver that Awosika abandoned. The revolver contained three spent cartridges in the revolver’s cylinder. Awosika was apprehended a short distance away and identified on the scene.
Awosika faces a maximum sentence of 15 years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for July 3, 2018 at 3:00 p.m.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta and Special Assistant U.S. Attorney Robert Perkins, who are prosecuting the case.
Accounting Manager Sentenced to Two Years in Prison for Stealing $725,000 and Committing $193,000 in Tax Fraud and Tax EvasionRead the Press Release
LAS VEGAS, Nev. – A former Accounting Manager and Controller was sentenced today to 27 months in prison for committing $193,000 in tax evasion and stealing more than $725,000 from two different employers, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.
Nicole Marie Graziano, 42, of Las Vegas, was sentenced by U.S. District Judge Kent J. Dawson. She pleaded guilty on July 26, 2017, to three counts of wire fraud, two counts of filing a false tax return, and one count of attempt to evade or defeat tax.
“Nicole Graziano lived a lavish lifestyle at the expense of her employers and the American people,” said SAC Sullivan. “Today, justice was served and Ms. Graziano is being held accountable for her actions.”
According to information in the plea agreement, between May 2009 through November 2015, Graziano used several schemes, including manipulation of her employers’ payroll tax records, to conceal the thefts. She would transfer the stolen funds by wire to her own personal bank accounts. She used the stolen money to pay for luxury items for herself and family members, including cars, jewelry, and to pay her rent. Furthermore, Graziano admitted to filing false individual Federal income tax returns for tax years 2013 and 2014, and grossly underreporting her income and tax liability. She also failed to file an individual Federal income tax return for tax year 2015.
The case was investigated by the IRS Criminal Investigation. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
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7 May 2018
West Virginia Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - A resident of West Virginia has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of attempting to possess with intent to distribute 50 grams or more of methamphetamine, conspiracy to distribute 50 grams or more of methamphetamine, and unlawful possession of firearms and ammunition by an unlawful user of a controlled substance, United States Attorney Scott W. Brady announced today.
The three-count indictment, returned on March 31 and unsealed today, named Van Gregory Barrows, 26, of Bowden, West Virginia, as the sole defendant.
According to the indictment presented to the court, Barrows attempted to possess with intent to distribute 50 grams or more of methamphetamine in November 2017. The indictment further alleges that Barrows conspired to distribute and possess with intent to distribute 50 grams or more of methamphetamine between September 2017, and November 2017. Barrows, an unlawful user of methamphetamine, is also alleged to have unlawfully possessed firearms and ammunition on or about November 17, 2017.
The law provides for a maximum total sentence of not less than 10 years and up to life imprisonment, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, and Ross Township Police Department conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia Man Sentenced to Five Years in Prison for Receiving Child Pornography on Tor Network ForumRead the Press Release
A Purcellville, Virginia man, who was a member of a website dedicated to the advertising and sharing of child pornography on an online anonymous network, was sentenced today to 60 months in prison and 10 years of supervised release.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations HSI Washington, D.C. made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia.
Nikolai Bosyk, 40, a repair shop owner, was charged on Oct. 17, 2017, and pleaded guilty on Feb. 12, 2018. According to admissions made in conjunction with the guilty plea, Bosyk was a member of an online bulletin board dedicated to the sharing of child pornography, that operated on the TOR anonymity network. Bosyk admitted to downloading child pornography, from that website and other places on the Internet. A forensic review of his laptop discovered thousands of images and videos of child pornography.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case, with assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and the Northern Virginia-Washington, D.C. Internet Crimes Against Children Task Force.
CEOS Trial Attorney Lauren E. Britsch and Assistant U.S. Attorney Nathaniel Smith III of the Eastern District of Virginia prosecuted the case.
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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Attorney’s Office Reaches Agreement with Hudson Public Schools Regarding use of Classroom “Robot”Read the Press Release
BOSTON – The U.S. Attorney’s Office entered into a Voluntary Compliance Agreement today with Hudson Public Schools regarding its obligations to ensure effective communication for students with disabilities under the Americans with Disabilities Act (ADA).
The agreement addresses how the auxiliary aids and services provisions of the ADA can be used in a school to enable a student with a disability to use remote technology to effectively communicate with other students and teachers and to participate in classroom instruction and other school activities. Specifically, the student had requested to use a “robot” device capable of seeing, hearing and moving around the classroom under the student’s remote control, allowing the student to be able to communicate with teachers and students and participate in interactive classwork.
Per the terms of the agreement, Hudson Public Schools will implement a Disability Equal Opportunity Policy, provide training for staff, and ensure that the school will take appropriate steps to ensure that appropriate auxiliary aids and services are provided, as necessary, for students with disabilities.
“In addition to facts and figures, students learn important social and collaborative skills in the classroom. As new technologies emerge that enable students with disabilities to be able to communicate effectively in classroom discussions and share more fully in those learning experiences, we must ensure that unnecessary and unlawful barriers do not inhibit their ability to fully participate in the classroom environment,” said United States Attorney Andrew E. Lelling. “We commend Hudson Public Schools for the proactive steps they have already taken to meet this goal, including allowing the student to use the auxiliary aid ‘robot,’ and for their cooperation throughout our investigation.”
Among other things, Title II of the ADA requires public entities, such as public schools, to take those steps necessary to ensure that communications with individuals with disabilities are as effective as communications with others, including through the use of auxiliary aids and services. The goal is to afford individuals with disabilities an equal opportunity to participate in, and enjoy the benefits of a service, program or activity of a public entity.
This matter was handled by Assistant U.S. Attorney Torey Cummings of Lelling’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two-Month Operation Nets 71 Defendants, Takes 140 Guns Off N. Alabama StreetsRead the Press Release
BIRMINGHAM – A two-month operation focused on reducing violent crime in Birmingham and across north Alabama resulted in federal charges against 71 defendants, with about 140 guns seized, announced U.S. Attorney Jay E. Town, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson and Acting Birmingham Police Chief Henry Irby III.
The U.S. Attorney’s Office and ATF joined with local law enforcement in Birmingham, Jefferson County and across north Alabama in an intense effort in March and April to charge violent offenders and take guns off the streets.
"At the Department of Justice, we've increased violent crime prosecutions to 25-year highs and gun prosecutions to 10-year highs," U.S. Attorney General Jeff Sessions said. "Under our Project Safe Neighborhoods program, I've directed our U.S. Attorneys to target the most violent criminals in the most high-crime areas, and to work with people in the community to develop a customized crime-reduction plan. That's exactly what U.S. Attorney Jay Town has done in Northern Alabama. I want to thank him, Sheriff Mike Hale, ATF, Birmingham Police, and all of our other fabulous law enforcement partners who have made these arrests and firearm seizures possible. I have no doubt they have made my fellow Alabamians safer. This roundup is more proof that our targeted, community-based model really works."
“These indictments represent the hard work of many of our law enforcement partners, especially the ATF, and exemplify our global efforts to return our neighborhoods to their rightful, peaceful owners,” Town said. “The Department of Justice has reserved space in federal prison for gang members, trigger-pullers, violent offenders, and felons with guns … and we plan on filling it. We must shift our prosecutorial philosophy more towards Capone rather than Soprano, not conflating the level of crime with the level of criminal,” Town said.
“ATF and our partners are committed to removing the criminal element from the streets of Birmingham,” Watson said. “ATF Crime Gun Intelligence Centers are the driving force to reducing the violent crime that plagues our neighborhoods.”
“The Birmingham Police Department continues to pursue ways to help improve the quality of life for our citizens,” Irby said. “The Gun Round Up will have a huge impact on the City of Birmingham as it relates to violent crime. Violent crime is an epidemic that has no barriers. Our citizens deserve law enforcement’s combined efforts to ensure that they are safe and secure as they go about their daily lives,” he said. “Our children, in particular, are our future. They deserve a chance to grow into productive citizens and do incredible things.”
“This is only the beginning of what I believe will put an end to the gun violence we are seeing day in and day out,” Hale said. “Our partnership and commitment with all participating agencies has never been stronger. Our resolve has never been stronger. That’s good news for the law-abiding citizens who deserve a quality of life that doesn’t include fear of harm at the hand of these violent thugs,” he said. “We will be here as long as it takes. That’s a promise.”
Cases involving about 24 of the 71 defendants are based in Jefferson County, but the remaining cases range across north Alabama and include five Talladega defendants indicted in March on drug distribution and firearms charges. Law enforcement seized at least 15 firearms in the Talladega case.
The majority of the 71 defendants facing current gun charges have at least one prior felony conviction. The total number of prior convictions tops 160. There are at least 40 additional arrests among the defendants for violent offenses, including charges such as domestic violence, assault and attempted murder, and at least 13 of the 71 defendants are suspected of having a gang affiliation.
Law enforcement seized one firearm from the majority of the defendants charged during the operation in March and April, but five or more guns were seized from at least eight defendants. Among the 140 firearms seized, at least 30 were identified as stolen, according to ATF.
These cases are part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
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