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24 April 2018
U.S. Attorney’s Office Partnering with Community Organizations to Reduce RecidivismRead the Press Release
In recognition of “Second Chance Month,” the United States Attorney’s Office for the Northern District of Iowa is collaborating with local partners to reduce recidivism by helping individuals leaving prison. In a presidential proclamation, President Trump designated April 2018 as “Second Chance Month,” urging communities to raise awareness about crime prevention and providing those offenders who have served their time “an opportunity for an honest second chance.”
The United States Attorney’s Office for the Northern District of Iowa has been deeply involved with many community partners in crime prevention and reentry efforts for the past several years. Some recent initiatives surrounding “Second Chance Month” include:
- A partnership with the Sixth Judicial District Department of Correctional Services, Neighborhood Transportation Service, the RISE program, Cedar Rapids Police Department, the FBI, and neighborhood leaders, in which individuals coming from state prison into the Cedar Rapids area attend a mandatory gathering where they learn about resources available to them in the community as well as the consequences of continued criminal activity.
- A partnership with the FBI and the State Training School, Iowa Department of Human Services, to meet with juvenile offenders at the Eldora State Training School. During this meeting, these juveniles learn about resources available to them as they become adults. They also learn about the unfortunate paths that some State Training School alum took, leading to lifelong interactions with the adult criminal justice system.
- Hosting several recent “Reentry Simulations,” which provide participants an opportunity to “step inside the shoes” of someone being released from prison, to allow them to see the obstacles that exist in an ex-offender’s transition from prison back to the community. Recent simulations included area employers, education professionals, treatment professionals, and community members.
United States Attorney Peter Deegan indicated that the United States Attorney’s Office continues to be supportive of community reentry efforts, noting that, “Our number one goal as prosecutors is to increase public safety. A successful transition from prison back to the community is a critical component in reducing recidivism and keeping our communities safe.” Deegan encouraged community members and organizations to get involved, noting that “Second Chance Month provides a great opportunity for employers, local organizations, and community members to find out what role they can play in the effort to reduce recidivism and provide an opportunity for an honest second chance.”
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- A partnership with the Sixth Judicial District Department of Correctional Services, Neighborhood Transportation Service, the RISE program, Cedar Rapids Police Department, the FBI, and neighborhood leaders, in which individuals coming from state prison into the Cedar Rapids area attend a mandatory gathering where they learn about resources available to them in the community as well as the consequences of continued criminal activity.
Two Sentenced to Federal Prison on Drug ChargesRead the Press Release
Jackson, Miss. – Donte L. Evans, 43, of Biloxi, and Cedric Collum, 52, of Jackson, were sentenced by U.S. District Judge Henry T. Wingate yesterday for their roles in a drug distribution conspiracy, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
Evans was sentenced to five years in federal prison followed by four years of supervised release for conspiracy to possess with intent to distribute cocaine. He received a quantity of cocaine for distribution from a co-conspirator who traveled from Jackson, Mississippi to Biloxi, Mississippi. Evans also sold quantities of cocaine in Gulfport, Mississippi. He pled guilty on January 24, 2018.
Collum was sentenced to five years in federal prison followed by three years of supervised release for possession with intent to distribute cocaine. He purchased a quantity of cocaine from a co-conspirator in Jackson, Mississippi. Following the purchase of the cocaine, a traffic stop was conducted by the Jackson Police Department and the cocaine was recovered. Collum pled guilty on January 5, 2018.
This case is the result of an extensive investigation, dubbed AOperation Pipeline,@ targeting illegal narcotics distribution in central Mississippi. The distribution network encompasses the states of California, Texas and Mississippi.
The case was a joint investigation by Homeland Security Investigations and the Mississippi Bureau of Narcotics, with assistance from the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Highway Patrol, the Jackson Police Department, and the Hinds County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Three Press Conferences AnnouncedRead the Press Release
TUESDAY – April 24, 2018
MEDIA ADVISORY
WHEN: Wednesday, April 25, 2018 at 10:00 AM
WHERE: Pasquotank County Public Safety Building
200 East Colonial Avenue
Elizabeth City, NC 27909
WHEN: Wednesday, April 25, 2018 at 12:15 PM
WHERE: Ahoskie Police Department
705 West Main Street
Ahoskie, NC 27910
WHEN: Wednesday, April 25, 2018 at 3:30 PM
WHERE: Henderson Police Department
200 Breckenridge Street
Henderson, NC 27536
Re: Announcements of Take Back North Carolina Initiative
RALEIGH – The United States Attorney’s Office announces three press conferences to discuss the beginning of a new initiative to combat violent and drug crime in the Eastern District of North Carolina. This initiative will bring the full weight and resources of the federal court system in the fight against crime in those counties in partnership with District Attorneys’ Offices and federal, state, and local law enforcement. The initiative will also focus on the alarming level of opioid use and the deaths associated with it.
The first news conference in Elizabeth City will focus on, Chowan, Perquimans, Pasquotank, Camden, Currituck, Gates and Dare Counties.
The second news conference in Ahoskie will focus on Bertie, Halifax, Hertford and Northampton Counties.
The third news conference will focus on Granville, Vance, Warren, and Franklin Counties.
In addition to United States Attorney Robert J. Higdon, Jr. we anticipate members from the District Attorney’s Office and local, state, and federal law enforcement to be present at each event.
The U.S. Government and Pennsylvania Settle with MarkWest for Air Emission Violations at Natural Gas FacilitiesRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency, and the Pennsylvania Department of Environmental Protection announced a settlement today with MarkWest Liberty Midstream Resources, LLC and Ohio Gathering Company, LLC (MarkWest), which is expected to reduce emissions of volatile organic compounds (VOCs) by more than 700 tons per year from company facilities in eastern Ohio and western Pennsylvania. The settlement addresses alleged violations of the Clean Air Act and the Pennsylvania Air Pollution Control Act for failure to obtain permits and keep records associated with maintenance activities that resulted in VOC emissions. As part of the settlement, MarkWest will also perform three supplemental environmental projects (SEPs) and pay a $610,000 civil penalty.
Under the terms of the settlement, MarkWest is expected to spend approximately $2.6 million to install and operate technologies that minimize VOC emissions at its facilities throughout eastern Ohio and western Pennsylvania in the Utica and Marcellus shale formations. MarkWest will also implement two SEPs involving the installation and operation of ambient air monitoring stations located upwind and downwind of MarkWest compressor stations in eastern Ohio and western Pennsylvania; one SEP requiring the dissemination and demonstration of a proprietary MarkWest technology for reducing VOC emissions; and one community environmental project for emissions monitoring equipment under an agreement between MarkWest and the commonwealth of Pennsylvania. The total value of the SEPs under this settlement is more than $2.4 million.
“This Clean Air Act settlement will reduce harmful emissions from facilities located across western Pennsylvania and eastern Ohio,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “Today’s action also demonstrates our commitment to working with federal, state and local partners to ensure the health and safety of the American people.”
“Our legacy to future generations will be defined, in part, by our commitment to protecting the environment,” said U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. “This settlement agreement with MarkWest demonstrates the commitment of the U.S. Attorney’s Office to improving the quality of the environment and ensuring cleaner air for the residents of western Pennsylvania.”
“I’m pleased to announce that through this agreement, MarkWest will make improvements to more than 300 facilities in western Pennsylvania and eastern Ohio,” said EPA’s Assistant Administrator Susan Bodine for the Office of Enforcement and Compliance Assurance. “We estimate that these improvements will reduce VOC emissions from these facilities by more than 90 percent, helping bring cleaner air to surrounding communities.”
“Research, monitoring data, and compliance information help DEP refine and improve the effectiveness of our oversight, craft stronger regulations, and focus on minimizing air contaminants,” said Secretary Patrick McDonnell for the Pennsylvania Department of Environmental Protection. “The new methodology to measure emissions from pigging developed through this case will help us work with all operators in Pennsylvania to reduce emissions.”
MarkWest operates facilities in eastern Ohio and western Pennsylvania designed to gather and transport natural gas and natural gas condensates through pipelines. As part of regular maintenance activities, MarkWest uses devices called “pigs,” which are sent through the gathering pipeline to remove debris and push through accumulated liquids, in an operation known as “pigging.” Pigging a pipeline involves inserting and removing pigs from the pipeline, which requires the operator to depressurize and vent pipeline gas from equipment designed to launch and receive pigs. MarkWest is alleged to have failed to apply for, and comply with, the required permits and/or recordkeeping requirements under the Clean Air Act and the Pennsylvania Air Pollution Control Act for venting activities that released VOC emissions.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone, which is not emitted directly into the air, but is created by chemical reactions between oxides of nitrogen and volatile organic compounds in the presence of sunlight. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems.
This settlement is part of the EPA’s National Enforcement Initiative (NEI): Ensuring Energy Extraction Activities Comply with Environmental Laws.
The consent decree has been lodged with the U.S. District Court for the Western District of Pennsylvania and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will available for viewing at www.justice.gov/enrd/Consent-Decrees.
For more information on the settlement, please visit: https://www.epa.gov/enforcement/markwest-clean-air-act-settlement-information-sheet
Tennessee Man Pleads Guilty to Transportation Across State Lines of Money and Securities Taken by FraudRead the Press Release
BOWLING GREEN, Ky. –A Red Boiling Springs, Tennessee man pleaded guilty four counts of interstate transportation of stolen property yesterday, in United States District Court, before United States District Judge, Greg N. Stivers, to defrauding investors of $194,000 as part of a scheme to develop a call center in Tompkinsville, Kentucky, announced United States Attorney Russell M. Coleman. There is no parole in the federal prison system.
John Cook, age 57, pleaded guilty yesterday to four counts of interstate transportation of stolen property. According to a plea agreement entered in open court, Cook admitted that in September 2013, he solicited $194,000 in investment funds from four individuals in Monroe County, Kentucky, for the purpose of developing a call center. In exchange for the investment funds, Cook provided a written promissory note explaining that the money would be used for the call center and described an unrealistic return on investment.
Cook created Minority Holdings and Management LLC (“Minority Holdings”) in September 2013. The promissory notes were issued by Cook in the name of Minority Holdings. Cook also opened a bank account for Minority Holdings at the bank of Putnam County in Tennessee.
Cook cashed the checks, deposited the checks in the Minority Holdings accounts, or converted checks to cashier’s checks. Cook used a lot of the investment money to operate the Donoho Hotel located in Red Boiling Springs, TN. Cook spent a minimal amount of investment funds on call center related expenses. However a majority of the expenses of the account were used for the Donoho Hotel payroll and for his personal expenditures. There has been little to no development of a call center in Tompkinsville.
Cook transported and caused to be transported from Kentucky to Tennessee, stolen, converted, and fraudulently obtained checks and monies from investors that he knew he was stealing, converting and taking by fraud at the time. All payments exceeded $5,000. All payments were solicited in Monroe County in the Western District of Kentucky.
Cook is scheduled for sentencing before Judge Stivers on July 31, 2018 at 9:00 a.m. CDT in Bowling Green.
This case was prosecuted by Assistant United States Joshua Judd and was investigated by the Federal Bureau of Investigation (FBI).
State and Federal Law Enforcement Agencies to Hold Press Conference at U.S. Attorney's Office in Columbia on Wednesday, April 25, 2018Read the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced that a press conference will be held on Wednesday April 25, 2018 at 3:30 P.M. at the U.S. Attorney’s Office, located at 1441 Main Street, Suite 500, Columbia, South Carolina 29201.
Participating in the press conference will be members of the Federal Bureau of Investigation (FBI), the South Carolina Department of Corrections (SCDC), the South Carolina Law Enforcement Division (SLED), and the U.S. Attorney’s Office.
NOTE: Press inquiries regarding logistics should be directed to Lance Crick, 864-282-2105. All media must present government-issued photo ID (such as a driver’s license). All media should be in place 15 minutes prior to start. Paid parking will be available behind the building.
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St. John Man Sentenced to Five Years in Prison for Receipt of Child PornographyRead the Press Release
HAMMOND – Daniel Labuda, 39 years old, of St. John, Indiana, was sentenced by District Court Judge Joseph S. Van Bokkelen on his plea of guilty to receipt of child pornography, announced U.S. Attorney Thomas L. Kirsch II.
Labuda was sentenced to 60 months imprisonment followed by five years supervised release and ordered to pay $48,000 in restitution.
According to court documents, between November 2012 and January 2013, Labuda downloaded and received child pornography from various foreign websites. Over the course of the years he collected over 390,000 still images and over 1,900 videos of child pornography including numerous visual depictions of prepubescent minors engaging in sexually explicit conduct and child pornography depicting torture and violence against children. Labuda attempted to hide this criminal activity by using anonymizing software and encryption.
This case was investigated by the FBI and prosecuted by the Department of Justice’s Child Exploitation and Obscenity Section Trial Attorney Leslie Fisher and Assistant U. S. Attorney for the Northern District of Indiana Abizer Zanzi.
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St. Francis Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Gregory Paul Quigley, a/k/a Greg Paul Quigley, age 53, was indicted on April 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Quigley was convicted of Abusive Sexual Contact in July 2016. As a result of this conviction, he is required to register as a sex offender. It is alleged that between November 16, 2017, and March 15, 2018, Quigley, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Quigley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Quigley was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parson announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 19, 2018, by U.S. District Judge Roberto A. Lange.
David Marrowbone, age 55, was sentenced to 17 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Marrowbone was indicted by a federal grand jury on January 17, 2018. He pled guilty on February 20, 2018.
Between October 23, 2017, and November 25, 2017, Marrowbone, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, did knowingly fail to register and update his registration.
This case was investigated by the U.S. Marshals Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S. Marshals Service.
Shiprock Man Sentenced to More than Three Years’ Prison for Assault on Officer during High-Speed ChaseRead the Press Release
PHOENIX – Yesterday, Kendale Johnson, 28, of Shiprock, N.M., was sentenced by U.S. District Judge Steven P. Logan to 37 months’ imprisonment. Johnson had previously pleaded guilty to aiding and abetting an assault on a federal officer with a dangerous weapon.
On July 4, 2017, an Arizona DPS Officer, who was cross-commissioned with the Navajo Division of Public Safety, attempted to pull Johnson over for speeding on a stretch of State Route 98 near Kaibeto, Ariz., on the Navajo Nation Reservation. Johnson refused to pull over and instead instigated a high-speed chase that continued for at least 10 miles at speeds of 80-90 miles per hour. During the chase, Johnson and a passenger in his vehicle threw several rocks back at the pursuing patrol vehicle. Johnson initially escaped, but he was swiftly located and taken into custody. Johnson is a member of the Navajo Nation.
The investigation was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08175-SPL
RELEASE NUMBER: 2018-049_Johnson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Saturday is National Take Back Day -- a great opportunity to safely dispose of unwanted prescription drugsRead the Press Release
On Saturday, April 28, from 10 a.m. to 2 p.m. State and local law enforcement agencies and the Drug Enforcement Administration will give the public its 15th opportunity in seven years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. Bring your pills for disposal to any participating precinct, office or department. (The DEA cannot accept liquids or needles or sharps, only pills or patches.) The service is free and anonymous, no questions asked.
“We know of many cases where leftover pain pills have led to an opioid addiction,” U.S. Attorney Justin Herdman said. “Properly disposing of these pills is one important step anyone can take to get involved in turning the tide on the opioid epidemic that has caused so much pain here in Ohio.”
Last fall Americans turned in 456 tons (912,000 pounds) of prescription drugs at more than 5,300 sites operated by the DEA and almost 4,300 of its state and local law enforcement partners. Overall, in its 14 previous Take Back events, DEA and its partners have taken in more than 9 million pounds—more than 4,500 tons—of pills.
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. The Substance Abuse and Mental Health Services Administration’s National Survey on Drug Use and Health shows year after year that the majority of misused and abused prescription drugs are obtained from family and friends, including someone else’s medication being stolen from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
For more information about the disposal of prescription drugs, disposal locations or about the April 28 Take Back Day event, go to www.DEATakeBack.com.
Revere Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Revere man was sentenced today in federal court in Boston for failure to register as a sex offender.
Steven Veno, 55, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to time served and five years of supervised release, the first year of which must be served in home detention. In January 2018, Veno pleaded guilty to one count of failing to register as a sex offender.
Veno is required to register as a Level 2 sex offender in Massachusetts based on Massachusetts state court convictions for rape of a child in 1993. The federal Sex Offender Registration and Notification Act requires Veno to register in any jurisdiction where he lives or works.
Law enforcement officers learned that over the past several years Veno had been traveling from Massachusetts to Florida, where he lived and worked for periods of time without registering as a sex offender in that community.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
This case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Portola Valley Resident Sentenced in Bank Fraud SchemeRead the Press Release
SAN FRANCISCO – Mark Migdal was sentenced today to 18 months in prison for conspiracy to commit bank fraud and providing false statements to banks in connection with short sale and loan modification requests, announced Acting United States Attorney Alex G. Tse, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge, following Migdal’s entry of a guilty plea on July 25, 2017.
According to his guilty plea, between June 2009 and April 2016, Migdal, 72, of Portola Valley, Calif., conspired to defraud two federally-insured banks, now Bank of America and EverBank. Migdal admitted the conspirators sought the banks’ approval for a short sale of two condominiums owned by Migdal in Kihei, Maui. Midgal conspired to convince the banks to allow the properties to be sold in short sales to an individual who was, in reality, deceased. A short sale is a sale in which a lender allows a property to be sold at a price that is less than the amount owed on the loan. Thereafter, Migdal controlled and rented the properties using the deceased person’s identity, and later transferred the properties back to himself. Migdal further admitted that, between June 2009 and January 2010, he provided false statements to another federally-insured bank, JP Morgan Chase Bank, in an attempt to obtain mortgage modifications on his residence in Portola Valley, Calif., and a condominium owned by him in Mountain View, Calif.
On April 27, 2017, a federal grand jury issued a superseding indictment charging Migdal with one count of conspiracy to commit bank fraud, in violation of 18 U.S. C. § 1349; two counts of bank fraud, in violation of 18 U.S.C. § 1344(1) and (2); one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and two counts of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014. Pursuant to his guilty plea, Migdal pleaded guilty to the conspiracy count, and the two counts of making false statements to a federally insured institution. The remaining counts were dismissed.
In addition to the term of imprisonment, Judge Chhabria ordered Migdal to serve three years of supervised release and to pay restitution in the following amounts: $239,519 to Fannie Mae, successor to the deed of trust held by EverBank; $202,491 to Bank of America; and $18,205 to JP Morgan Chase. In addition, Migdal was also ordered to pay a $1,000,000 fine and to forfeit substitute assets totaling $539,784.98.
The case is being prosecuted by Assistant United States Attorneys Colin Sampson and Erin Cornell. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
Portland Man Pleads Guilty to 17 Counts of Video Voyeurism at Local Daycare FacilityRead the Press Release
PORTLAND, Ore. – On Monday, April 23, 2018, Jay Walter Jaacks, 50, of Portland, pleaded guilty to 17 misdemeanor counts of video voyeurism for placing a concealed video camera in the adult restroom of a Portland daycare facility.
"This defendant’s actions are inexcusable and grossly invaded the privacy of employees and fellow parents at a daycare facility where he took his own children," said Billy J. Williams, U.S. Attorney for the District of Oregon. "I hope this prosecution will deter others from illegally violating the privacy of others for their own personal satisfaction."
"The safety, privacy, and security of everyone working and doing business within our Federal workplaces are paramount to our efforts," said Federal Protective Service Region 10, Deputy Regional Director, Patrick Zitny. "The successful prosecution of this case is a tribute to the efforts and close coordination between the Federal Protective Service and the U.S. Attorney’s Office."
On or about July 29, 2016, Jaacks concealed a video camera in a small cosmetics bag and placed it in the adult restroom of a daycare facility in Portland. The video camera captured 17 adults, both daycare employees and other parents, in various stages of undress. A daycare employee found the camera and immediately notified law enforcement. Law enforcement officials seized the camera before Jaacks could retrieve it.
Jaacks faces a maximum sentence of one year in prison, a $100,000 fine, and one year of supervised release on each count. He will be sentenced on Monday, July 30, 2018 before U.S. District Court Judge Marco A. Hernandez.
The U.S. Department of Homeland Security Federal Protective Service (FPS) investigated this case. It is being prosecuted by Scott Kerin, Assistant U.S. Attorney for the District of Oregon.
Pittsburgh Man Sentenced to 5 Years in Prison for Distributing Heroin that Resulted in DeathRead the Press Release
PITTSBURGH, PA – Anthony McCullough was sentenced to 60 months in prison for conspiring to distribute heroin in January 2015, United States Attorney Scott W. Brady announced today.
McCullough, age 57 of Pittsburgh, was sentenced by United States District Judge Mark R. Hornak. Judge Hornak also ordered McCullough to serve three years of supervised release following his release from prison. As part of McCullough’s conviction and sentence, he accepted responsibility for causing the overdose death of one of his customers in January 2015 and agreed to pay restitution to the customer’s family for expenses related to the death.
The information presented to the Court in support of the conviction and sentence revealed that, during the evening of January 25, 2015, P.W., age 47, suffered a fatal drug overdose in a hotel room in the Oakland section of Pittsburgh. He died from heroin he and his friend purchased earlier that day. Detectives with the Pittsburgh Bureau of Police, in conjunction with members of the Drug Enforcement Administration, promptly investigated who was responsible for supplying the heroin that killed P.W. The investigation led to an undercover purchase of heroin from McCullough two days later. McCullough and Eddie Skrine, McCullough’s direct supplier, were arrested at that time and were subsequently indicted and convicted in federal court in Pittsburgh.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Drug Enforcement Administration, the Allegheny County Sheriff’s Office, and the Allegheny County Medical Examiner’s Office conducted the investigation leading to the conviction and sentence in this case.
Philadelphia Bank Teller Charged with Stealing Customer IdentitiesRead the Press Release
Elizabet Tskhadiashvili of Philadelphia, was charged April 20 by criminal information* with bank fraud and aggravated identity theft, announced United States Attorney William M. McSwain.
The information alleges that Tskhadiashvili, a teller at a Philadelphia branch of TD Bank, obtained bank customers’ personal identifying and account information from approximately January through March 2017, which she then provided to two other individuals who used the information to make withdrawals from the accounts of those customers.
“Thousands of dollars in withdrawals were made,” said U.S. Attorney McSwain. “Personal and account information of bank customers must be protected, first and foremost by bank employees themselves.”
If convicted the defendant faces a maximum possible sentence of 32 years.
The case was investigated by Homeland Securities Investigations, and is being prosecuted by Assistant United States Attorney Judy Smith.
Partner and Co-Founder of Private Equity Fund Found Guilty of Insider TradingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BENJAMIN CHOW, a/k/a “Ben Chow Zhou Bin,” a/k/a “Benjamin Bin Chow,” a/k/a “Bin Zhou,” was convicted today by a federal jury of conspiracy to commit securities fraud and seven counts of securities fraud in connection with an insider trading scheme relating to the securities of Lattice Semiconductor Corporation (“Lattice”). CHOW’s conviction followed a 10-day trial before U.S. District Judge Gregory H. Woods of the Southern District of New York. Sentencing has been scheduled for August 20, 2018, before Judge Woods.
U.S. Attorney Geoffrey S. Berman said: “As a unanimous jury found, Benjamin Chow tipped his friend about the potential acquisition of Lattice Semiconductor Corporation by private equity firms he managed. Chow’s illegal tips reaped multimillion-dollar profits for his friend. This illegal tipping erodes public confidence in our markets as well as being unlawful. Protecting the integrity of our financial markets remains a top priority of this Office.”
According to the Indictment filed against CHOW, other filings in Manhattan Federal Court, and the evidence admitted at trial:
From approximately March to November 2016, CHOW provided a friend and business associate (“CC-1”) with material, nonpublic information relating to a potential merger between Lattice and private equity firms managed by CHOW, one based in Beijing, China (“Firm-1”), and one based in Palo Alto, California (“Firm-2”). CC-1 in turn used such information to make millions of dollars in profitable securities trades through accounts opened in the names of family members and associates of CC-1.
Specifically, as Managing Director of Firm-1 and later Managing Partner of Firm-2, CHOW obtained material nonpublic information regarding potential merger agreements between Lattice and Firm-1, and later, Firm-2. Information concerning the potential merger agreements was subject, among other things, to nondisclosure agreements executed between Lattice and Firm-1, and later between Lattice and Firm-2.
In violation of these agreements, on multiple occasions, through meetings in Beijing, China, voice messages, and text exchanges, CHOW provided CC-1 with material nonpublic information regarding the potential merger between Lattice and Firm-1, and later, Firm-2. On multiple occasions, CC-1 made profitable trades in Lattice shortly after receiving the material nonpublic information from CHOW, yielding a total of at least approximately $5 million in profits for CC-1.
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CHOW, 45, of Los Altos, California, was convicted of one count of conspiring to commit securities fraud, which carries a maximum prison sentence of five years in prison, and seven counts of securities fraud, each of which carries a maximum sentence of 20 or 25 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the exceptional work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Max Nicholas, Scott Hartman, and Elisha J. Kobre are in charge of the prosecution.
Owners of Virginia Subcontracting Firm Sentenced to Prison for Tax EvasionRead the Press Release
A Virginia husband and wife were each sentenced today for tax evasion and conspiring to structure currency transactions, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Business owner Jeffrey Dalton was sentenced to 27 months in prison, and his wife and co-owner of the business, Karen Dalton, was sentenced to six months in prison.
According to the evidence presented at trial, Jeffrey and Karen Dalton owned Blue Ridge Stainless Inc. (BRS), a subcontracting business that provided labor to renovate large retail department and grocery stores. The Daltons operated BRS out of their home in Hillsville, Virginia. The Daltons filed their 2009 through 2014 personal tax returns with the Internal Revenue Service (IRS) reporting the income earned from BRS, but failed to pay the taxes, penalties, and interest owed. Despite an IRS revenue officer repeatedly contacting the Daltons over a period of years about their delinquent taxes and pending IRS liens, the Daltons refused to pay their outstanding tax liabilities, used nominees to conceal their ownership of property, and filed false documents with the IRS. After the IRS levied the Daltons’ personal bank accounts, they used funds from the BRS business bank account to start a cattle business and pay their children’s wedding expenses.
The evidence at trial also proved that during a six-month period in 2015 the Daltons repeatedly withdrew cash from BRS’s business bank account in amounts less than $10,000 to evade federal bank-reporting requirements, and structured more than $250,000 in withdrawals.
In addition to the terms of imprisonment imposed, U.S. District Court Judge James P. Jones ordered Jeffrey and Karen Dalton to serve two years of supervised release.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Daniel McGraw and Sean Beaty, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Operation Riptide Results in 17 Convictions, over 100 years in PrisonRead the Press Release
NORFOLK, Va. – Approximately 14 months ago over 150 law enforcement agents and officers executed a massive takedown, arresting dozens of individuals for their respective roles in selling drugs and guns in Norfolk.
Today, the 17th and final federal defendant, Kenneth Robinson, 51, of Norfolk, was sentenced to 37 months in prison. The Operation Riptide defendants have collectively been sentenced to a total of over 106 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began Operation Riptide in the Fall of 2016, and in collaboration with the Norfolk Police Department, Virginia State Police, and prosecutors from the U.S. Attorney’s Office and the Virginia Attorney General’s Office, identified more than 30 individuals throughout Hampton Roads who were illegally selling firearms, heroin, and/or other narcotics. Operation Riptide resulted in the recovery of over 60 firearms (including at least 3 assault rifles, 2 sawed off shotguns, and over 50 hand guns, 18 of which had obliterated serial numbers or were stolen), over 175 grams of heroin, 65 grams of powder cocaine, 337 grams of crack cocaine, over three pounds of marijuana, and two bulletproof vests.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the ATF’s Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr.
This case was investigated by the ATF’s Norfolk Field Office, the Norfolk Police Department, and the Virginia State Police with the assistance of the Virginia Beach and Chesapeake Police Departments, the Norfolk and Chesapeake Sheriff’s Offices, and the Virginia National Guard.
Special Assistant U.S. Attorney John F. Butler, Assistant U.S. Attorneys Andrew C. Bosse, Kevin M. Comstock, Joseph E. DePadilla, Kevin Hudson, William B. Jackson, William D. Muhr, and Daniel T. Young, Assistant Attorney General James F. Entas, Office of the Attorney General for the Commonwealth of Virginia, and Norfolk Assistant Commonwealth Attorney Catherine Paxson are prosecuting these cases.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:17-cr-21, 22, 24, 25, 26, 27, 28, 31, 32, 34, 35, 36, 37, 54, 64, 128.
Name, AKA
Age, Hometown
Pleaded Guilty to the Following Charge(s)
Sentence
Darryl Moore,
aka “Little Darryl”
28, Norfolk
Felon in Possession of a Firearm
60 months
Kejuan Dante Perry,
aka “KP”
25, Chesapeake
Distribution of a Controlled Substance; Possession of Firearms in Furtherance of a Drug Trafficking Crime
87 months
Maurice Owen Johnson,
aka “Dink”
28, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
120 months
Leonard Lee Brickhouse,
aka “Leo Brixx”
24, Norfolk
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
66 months
Evrick Speight
aka “P”
23, Virginia Beach
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
100 months
Jason Gilliard,
aka “Hoodro Wilson”
32, Virginia Beach
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin
50 months
Lamare Pierre Jordan,
aka “L”
30, Norfolk
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
84 months
James Andre Martin,
aka “Big Buff”
44, Norfolk
Distribution of a Controlled Substance; Felon in Possession of a Firearm
105 months
Keone Devon Perry
23, Chesapeake
Transfer of Firearm to Prohibited Person
18 months
Carl Lee Walton,
aka “CJ”
22, Virginia Beach
Felon in Possession of a Firearm
36 months
Demetrius Lamont, Davis
aka “Meat”
39, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
90 months
James Curtis Lamb
28, Chesapeake
Felon in Possession of a Firearm
84 months
Adrean Lamont Hall
25, Virginia Beach
Felon in Possession of a Firearm
46 months
James Edward Hill
43, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
93 months
Joseph Maurice Dobey
38, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
137 months
Michael Ovall Jackson
34, Norfolk
Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or More of Cocaine Base
60 months
Kenneth Robinson
51, Norfolk
Felon in Possession of a Firearm
37 months
Navy Sailor Arrested for Stealing Grenades from ShipRead the Press Release
Assistant U.S. Attorney Michelle Pettit (619) 546-7972
NEWS RELEASE SUMMARY – April 24, 2018
SAN DIEGO – Gunner's Mate Second Class Aaron Booker was arraigned in federal court today on charges that he possessed 20 stolen concussion hand grenades that went missing from San Diego-based guided-missile destroyer USS Pinckney.
Booker, who had been stationed in San Diego when the alleged crime took place, was taken into custody this morning at his new post in Great Lakes, Illinois by the Naval Criminal Investigative Service. The United States is seeking removal of Booker to face charges in San Diego.
According to a complaint, USS Pinckney personnel discovered 20 grenades missing from their storage crates during a routine inventory of explosives on February 8, 2017. Designated personnel are required to conduct regular temperature checks in the locker that houses the crates, but no personnel should have accessed the crates themselves outside of an inventory. Booker was a member of the ship’s Weapons Department, and between November 2016 and January 2017, he conducted temperature checks for that locker on five separate occasions. The United States alleges that Booker removed these grenades from their storage crate and transported them off the ship. He officially detached from the ship on February 14, 2017, at which point he left San Diego and drove to his new duty station in Great Lakes, Illinois.
On April 20, 2017, an off-duty law enforcement officer discovered a black backpack on the side of the road leaning against a guardrail on Interstate 15 in northwest Arizona. The bag was a standard military issued backpack with “GM2 BOOKER” handwritten on a tag inside the bag, and it contained 18 of the grenades that were missing from USS Pinckney. Law enforcement is searching for the two missing grenades.
According to the complaint, Booker acknowledged to investigators that he drove that route before reporting to his new duty station in early March. However, he provided conflicting statements related to if and how he had seen or touched the grenades.
“A backpack full of grenades on the side of the road is obviously extremely dangerous and could have had resulted in injuries or death,” said U.S. Attorney Adam L. Braverman said. “The theft of explosives is a very serious offense, particularly if it is carried out by an insider with access to military weapons and secrets.”
“Navy sailors are trusted with maintaining dangerous and sensitive equipment onboard naval vessels to ensure the Navy is always prepared to protect and defend the interests of the United States,” said Belinda Saunders, Special Agent in Charge of the NCIS Southwest Field Office. “It is a violation of that trust for any service member to steal from the United States Navy for any reason. This case is particularly troubling given the explosive nature of what was stolen, which could have seriously injured others.”
Booker is scheduled to appear for a detention hearing in the Northern District of Illinois before he is transferred to San Diego.
DEFENDANT Case No. 18MJ1873
Aaron Booker Age: 31 Waukegan, Illinois
SUMMARY OF CHARGE
Possession of Stolen Explosives, in violation of Title 18, United States Code, Sections 842(h) and 844(a)(1)
Maximum penalties: 10 years in prison and a $250,000 fine
INVESTIGATING AGENCY
Naval Criminal Investigative Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Meisum Bakery Inc. and Owner Sentenced for Food Stamp FraudRead the Press Release
BOSTON – Meisum Bakery Inc. and its owner, Xi Xian Lei, were sentenced today in federal court in Boston in connection with a more than $740,000 food stamp fraud scheme that Lei and his employees operated out of a Chinatown bakery.
Meisum Bakery Inc. was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year of probation and Lei was sentenced to one year and one day in prison and one year of supervised release. Lei and Meisum Bakery were also ordered to pay $747,134 in restitution. In November 2016, Meisum Bakery Inc. and Lei pleaded guilty to one count of conspiracy to commit SNAP (Supplemental Nutritional Assistance Program) benefits fraud and two counts of SNAP fraud.
SNAP, administered by the U.S. Department of Agriculture (USDA), provides eligible households with government subsidies for food and allows holders to exchange their SNAP benefits for food at authorized retail food stores.
From about October 2010 through April 2012, Lei and Meisum Bakery employees purchased SNAP benefits from legitimate SNAP beneficiaries for cash at a discounted value of approximately 50 cents for every SNAP dollar; however, neither Meisum Bakery Inc. nor Lei was authorized to accept SNAP benefits as payment for goods at the bakery. Lei and Meisum Bakery employees subsequently redeemed the SNAP benefits by using the beneficiaries’ EBT (Electronic Benefit Transfer) cards to buy goods and earn credit at stores that were authorized to accept SNAP benefits.
During the course of the conspiracy, Meisum Bakery Inc. and Lei defrauded the USDA of more than $740,000 in SNAP funds.
United States Attorney Andrew E. Lelling; Bethanne M. Dinkins, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. Assistant U.S. Attorneys Robert Richardson and Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Media AdvisoryRead the Press Release
CEDAR RAPIDS, IA – Opioid and prescription drug abuse is at an all-time high in the United States. Part of the opioid epidemic facing the country is the prevalence of counterfeit pills being sold as prescription drugs over the Internet. These pills often contain substances other than what is promised and lead to overdoses and deaths.
On April 26, 2018, at 10:00 a.m., the United States Attorney’s Office will hold a press conference to highlight and discuss the danger of these counterfeit pills. U.S. Attorney Peter E. Deegan, Jr. will be present at the press conference along with law enforcement officials from other agencies.
Event Details
When: Thursday, April 26, 2018
Where: Cedar Rapids Federal Courthouse (United States Attorney’s Office), 111 7th Ave. SE
Time: 10:00 a.m.
A press release will be provided and interview opportunities will be available. Please RSVP to Tony Morfitt at [email protected] if you plan to attend.
Follow us on Twitter @USAO_NDIA.
McKenzie Man Sentenced to 10 Years Imprisonment for Being a Felon in Possession of a Firearm in Connection with a Felony Drug OffenseRead the Press Release
Jackson, TN – Robert Hutchinson, Jr. 45, was sentenced to 10 years in federal prison for being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on September 23, 2016, a Carroll County Sheriff’s deputy executed a traffic stop on a 2002 red Saturn near Dollar General in Trezevant, TN. When asked for identification, Hutchinson told the officer he had left everything at home on the table. When asked for his name, Hutchinson gave the officer a false name – which was the name of another individual whom the officer happened to know. Hutchinson was asked out of the vehicle and patted down for officer safety. Officers located a 9 mm Beretta pistol in Hutchinson’s pocket, along with twelve bags of suspected methamphetamine and marijuana.
U.S. Attorney D. Michael Dunavant said: "As a convicted felon in possession of a firearm in furtherance of drug trafficking, the defendant in this case presents a danger to public safety in multiple ways. The statutory maximum sentence imposed in this case achieves justice by removing him from the community, and makes West Tennessee a safer place. If you are a dangerous felon with a firearm who is selling poison, you will be held accountable."
On April 24, 2018, the Honorable S. Thomas Anderson, Chief Judge, United States District Court, sentenced Hutchinson to the statutory maximum sentence of 10 years incarceration and 3 years supervised release. His sentence included a sentencing enhancement for possessing the firearm in connection with another felony offense, which was the possession of methamphetamine with intent to deliver.
Carroll County Sheriff Andy Dickson stated, "I appreciate the cooperation between the federal prosecutors, FBI, and local officers in getting career criminals off our streets."
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case was investigated by the Carroll County Sheriff’s Office, 24th Judicial Violent Crime and Drug Task Force; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution.
Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.
McHenry Man Charged in Federal Court with Bankruptcy CrimeRead the Press Release
ROCKFORD — JOSEPH F. RUIZ, 54, of McHenry, was indicted today by a federal grand jury in Rockford for concealment of an asset in a bankruptcy case.
As alleged in the indictment, Ruiz filed a Chapter Seven Bankruptcy Petition on January 25, 2013. The indictment alleges that Ruiz fraudulently concealed a personal injury claim from the bankruptcy trustee. The personal injury claim allegedly arose out of injuries suffered by Ruiz on March 19, 2009.
The charge in this case carries a maximum potential penalty of up to five years in prison, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater. The Court may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment 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.
The investigation was conducted by the United States Postal Inspection Service.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Acting Postal Inspector in Charge, Chicago.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Maryland Man Pleads Guilty to Money Laundering Charge in Scam Targeting Companies in U.S. and AbroadRead the Press Release
WASHINGTON - Emeka Ndukwu, 46, of Upper Marlboro, Md., pled guilty today to conspiring to launder the proceeds of scams that tricked seven companies in the United States and abroad into wiring more than $900,000 into accounts controlled by various co-conspirators.
The announcement was made by U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Ndukwu, a dual citizen of the United States and Nigeria, pled guilty in the U.S. District Court for the District of Columbia to one count of money laundering conspiracy. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Ndukwu faces a likely range of 46 to 57 months in prison and a fine of up to $200,000. Additionally, as part of the plea, Ndukwu agreed to the forfeiture of a 2014 Mercedes-Benz GL450 and the entry of a forfeiture money judgment in the amount of $429,848, representing the share of the criminal proceeds that Ndukwu personally obtained.
The Honorable Timothy J. Kelly scheduled sentencing for July 19, 2018.
According to documents filed at the time of the plea, Ndukwu participated in an ongoing conspiracy from 2013 through 2017 to receive and launder the proceeds of various cyber frauds, primarily arising from business e-mail (“BEC”) compromise schemes. In a typical BEC scheme, a co-conspirator tricks a company into transfering large sums of money into accounts controlled by others participating in the scheme. Using fake e-mails, often containing forged sender addresses, co-conspirators impersonate someone connected to the victim company and deceive an employee of that company into wiring funds. Soon after the wire transfers are completed, the co-conspirators drain the bank accounts and launder the criminal proceeds.
This particular conspiracy targeted at least seven companies in the United States and overseas, including victims in Texas, Illinois, the United Arab Emirates, the United Kingdom, India, Japan, and China. The victims were fraudulently induced into sending $916,056 in wire transfers to accounts controlled by Ndukwu and other co-conspirators. The funds were then laundered through transactions conducted in Washington, D.C. and other jurisdictions, including layering through shell company accounts and accounts controlled by co-conspirators.
According to the court documents, Ndukwu used false aliases and forged Nigerian passports to facilitate these schemes, and he used encrypted messaging to communicate with co-conspirators. Ndukwu was indicted in December 2017 and has been in custody since his arrest that month. A co-defendant, Chuka Mbonu, 33, of Nigeria, remains at large.
The case is being investigated by the FBI’s Washington Field Office, with assistance from the U.S. Marshals Service for the U.S. District Court for the District of Columbia. Assistant U.S. Attorneys Christopher B. Brown and Michael J. Marando are prosecuting the case, with assistance from Paralegal Specialist C. Rosalind Pressley. Former Assistant U.S. Attorney Natalia Medina participated in investigating the case.
Manchester Woman Sentenced to 78 Months in Prison for Conspiracy to Distribute CocaineRead the Press Release
CONCORD - Elizabeth Salinas-Roldan, 43, previously of Manchester, New Hampshire, was sentenced in federal court to 78 months in prison for conspiracy to distribute cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between May and July 2016, the defendant arranged with others to distribute cocaine to a cooperating individual in transactions that were audio and video-recorded.
Salinas-Reardon, who previously pleaded guilty on January 3, 2018, will be on supervised release after serving her sentence.
“The U.S. Attorney’s Office is committed to working closely with our law enforcement partners to identify and prosecute drug traffickers,” said U.S. Attorney Murray. “I am grateful to the law enforcement officers whose hard work led to this successful prosecution.”
“Ms. Salinas-Roldan dealt cocaine in her own backyard, profiting from the addiction of others. Her case is just one example of our ongoing efforts to rid communities across the Granite State of drug trafficking enterprises. Today’s sentence should send a message to others who are thinking about getting into the drug trafficking business. Don’t do it!” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI’s Safe Streets Gang Task Force will be relentless in hunting down anyone who chooses to engage in the distribution of illegal narcotics, and the violence that comes along with it.”
This matter was investigated by the FBI’s Safe Streets Gang Task Force, which consists of FBI Special Agents and members of the Manchester Police Department, the Hudson Police Department, the New Hampshire State Police, the Nashua Police Department, and the New Hampshire Department of Corrections Probation and Parole. It was also supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty yesterday in federal court in Boston to racketeering conspiracy involving the murder of a 16-year-old boy in East Boston.
Rigoberto Mejia, a/k/a “Ninja,” 32, a Salvadoran national, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 24, 2018.
During the multi-year investigation of MS-13, Mejia was identified as a “homeboy,” or full member, of MS-13’s Trece Locos Salvatrucha (TLS) clique. Evidence further showed that on Jan. 10, 2016, Mejia and other MS-13 members murdered a 16-year-old boy whom they believed to be a member of the rival 18th Street gang. Mejia’s alleged co-conspirators stabbed the victim multiple times while Mejia shot the victim.
After a multi-year investigation, Mejia was one of dozens of alleged leaders, members, and associates of MS-13 named in a superseding indictment targeting the gang’s criminal activities in Massachusetts. Mejia is the 44th defendant to be convicted as part of the ongoing prosecution. To date, all eight defendants who have gone to trial have been convicted, and 36 others have pleaded guilty.
Under the terms of the proposed plea agreement, Mejia will be sentenced to 330 months in prison. He will also be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today.
The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Conspiracy Trafficking Fentanyl, Heroin, Cocaine Sentenced to 21 Years in PrisonRead the Press Release
BIRMINGHAM – A federal judge today imposed a nearly 21-year sentence on the leader of a Birmingham-based conspiracy to distribute multiple kilograms of fentanyl, heroin and cocaine in Jefferson County in 2015 and 2016, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
ANTHONY LEVY “Amp” WARD, 37, of Chelsea, is the eighth of nine defendants sentenced in the case. The final defendant, JOSE AGUSTIN GUTIERREZ, 32, of Phoenix, Ariz., is scheduled for sentencing May 22.
U.S. District Judge L. Scott Coogler sentenced Ward to 20 years and 10 months in prison on multiple counts of conspiracy to distribute or possess with intent to distribute at least a thousand grams of heroin or at least five kilograms of cocaine and two counts of attempted possession with intent to distribute fentanyl. He also sentenced Ward on multiple counts of using a telephone to commit a drug trafficking crime, one count of carrying a firearm in furtherance of drug trafficking, and being a convicted felon in possession of a firearm. Ward pleaded guilty to the charges last year.
“A tiny fraction of a gram of fentanyl can be lethal and Ward was found with 17,000 pills cut with this illicit narcotic,” Town said. “It was his intent to make this poison available to an alarming number of people, which could have resulted in an equally alarming number of fatal and non-fatal overdoses. Judge Coogler’s sentence today justly sends the message that the death and destruction of this criminal behavior will not be tolerated, will not be excused, and will be severely punished.”
“For years, Anthony Ward has distributed poison in the form of cocaine, heroin and fentanyl to individuals in the Birmingham area,” Hamilton said. “There is no telling how many families have been destroyed by Ward’s actions. But with this sentence, the residents of Birmingham have one less drug dealer to worry about for years to come. I hope that those who looked up to ‘Amp’ will see the futility in the life Ward has lived thus far. Otherwise, DEA will not hesitate in giving them the opportunity to live in federal prison, too.”
The amount of fentanyl trafficked in the conspiracy was about 7.1 kilograms, or more than 350,000 doses of the drug.
Ward and the other defendants in the case are responsible for paying a $1.7 million judgment in the case as proceeds of illegal activity.
Throughout the investigation, agents seized 8.8 kilograms of cocaine intended to be delivered to Ward from Arizona, and 4.662 kilograms of pure fentanyl delivered from Mexico. Agents seized 254.9 grams of pure fentanyl from China that Ward had mailed to an address, other than his own, in the Birmingham area.
Besides Ward and Gutierrez, other defendants convicted in the conspiracy are: Anthony Levy Alexander, 58, and Betty Levy Alexander, 51, Ward’s father and aunt, Ferlando Carmise Mims, 20, Onandas Carmece Beard, 20, and Corey Darnelle Haynes, 38, all of Birmingham, and Jesus Ubaldo Montoya, 24, and Marahai Ardizo Enriquez, 26, both of Phoenix. The sentences for the seven previously sentenced defendants range from about two to 15 years in prison.
The DEA investigated the case in conjunction with the Birmingham and Hoover police departments and the U.S. Marshals Service. The U.S. Attorney’s Office for the Northern District of Alabama prosecuted the case.
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Kearney-Area Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joseph P. Kelly announced that Juan Adolpho Arredondo, who lived in the Kearney area prior to his arrest, was sentenced on April 24, 2018, by the Honorable United States Judge John M. Gerrard, in Lincoln, Nebraska, to 10 years in prison for possessing with intent to distribute 50 grams or more of methamphetamine. The sentence includes a five-year term of supervision after Arredondo is released from prison, and a forfeiture of more than $5,000 seized by law enforcement upon Arredondo’s arrest in Buffalo County in January 2017.
This case was investigated by the Buffalo County Sheriff’s Department and Central Nebraska Drug and Safe Streets Task Force.
Kanawha County Man Sentenced to 151 Months in Federal Prison for Distributing Child PornographyRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man was sentenced today to 151 months in federal prison for distributing child pornography, announced United States Attorney Mike Stuart. Christopher Chad Winnell, 36, of Marmet, will serve a term of 25 years on federal supervised release following his release from prison and will also be required to register as a sex offender. Winnell previously entered a guilty plea to two counts of distribution of child pornography. Stuart praised the work of Homeland Security Investigations, the West Virginia State Police, and the Royal Canadian Mounted Police.
“These crimes are horrific,” said United States Attorney Mike Stuart. “Winnell’s exploitation of children, including infants, is deplorable. We can all rest easier knowing that this guy has been removed from our community and will be spending a good number of years behind bars.”
Winnell admitted that on December 20, 2014, he engaged in an email conversation from his residence discussing the exchange of child pornography. Winnell further admitted that the email discussion resulted in the exchange of child pornography images involving infants. Winnell also admitted that on November 7, 2015, he used a messaging service to share an image of child pornography involving an infant with multiple individuals. The investigation determined that the image was received by at least one individual in Canada. The investigation further revealed that Winnell possessed hundreds of images and videos of child pornography stored in an online account.
Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution. The sentencing hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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###KC Man Sentenced to 15 Years for Illegal Firearm Used in ShootingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing the firearm he used to shoot another person.
Rico V. Gilliam, 34, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole.
On Nov. 2, 2017, Gilliam was found guilty at trial of two counts of being a felon in possession of a firearm. Evidence introduced during the trial indicated that Gilliam was in possession of a Glock .40-caliber semi-automatic handgun on Oct. 17, 2014, and again on Nov. 6, 2014.
Kansas City police officers responded to a residence at about 9:15 a.m. on Oct. 17, 2014, to investigate a shooting. The victim told officers that Gilliam, who had come into the victim’s home, fired two shots at him during an argument that occurred about 3 a.m. One shot had struck him in the leg. He also said Gilliam pointed the gun at him and threatened to shoot him in the face if he did not leave his own residence. The victim and his girlfriend then walked to a nearby car lot. They jumped a fence and hid inside a Jeep until they called the police later that morning. Investigators interviewed several witnesses who confirmed the victim’s account.
On Nov. 6, 2014, officers located Gilliam inside a Kansas City, Mo., apartment. The apartment’s resident and several guests left the building while officers attempted to contact Gilliam. Another apartment also was evacuated. A tactical squad negotiated with Gilliam through a loudspeaker to come out of the residence. After approximately 30 minutes, Gilliam left the residence and was arrested. Officers searched the apartment and found the Glock handgun in the attic.
Gilliam, while incarcerated, directed a female friend to draft an affidavit and falsely claim that she placed the Glock handgun in the attic. Additionally, during some of the other intercepted jail calls Gilliam repeatedly threatened to beat up several women he spoke to.
According to court documents, while incarcerated Gilliam beat another inmate so severely that he had to be hospitalized and placed on a ventilator. On another occasion during his incarceration, Gilliam heated up cleaning chemicals in a microwave and threw the heated chemicals on another inmate, who was admitted to the hospital due to his injuries.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Gilliam has two prior felony convictions for armed criminal action and prior felony convictions for unlawful use of a weapon, burglary, attempted robbery and robbery.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes and Special Assistant U.S. Attorney Kim Moore. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jamestown Brothers Plead Guilty to Drug 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 Matthew S. Jones, 33, and Beau K.C. Jones, 31, both of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and distribution of, methamphetamine. Matthew S. Jones pleaded guilty to a conspiracy involving five grams or more of methamphetamine and faces a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine. His brother, Beau K.C. Jones, pleaded guilty to a conspiracy involving 50 grams or more of methamphetamine and faces a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that the defendants were arrested on December 1, 2016, after a shipment of more than 360 grams of methamphetamine was delivered, via the U.S. mail, to the brothers at Matthew S. Jones’ residence at 70 Colfax in Jamestown. Shortly after the delivery, Beau K.C. Jones was arrested during a car stop by police and the parcel containing the methamphetamine was discovered in the backseat of his vehicle. Matthew S. Jones was arrested later that day during a separate car stop. A safe was found in the trunk of his car containing an additional quantity of approximately 80 grams of methamphetamine.
The pleas are 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 Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing for Matthew S. Jones is scheduled for July 30, 2018. Sentencing for Beau K.C. Jones is schedule for August 7, 2018.
Jackson Man Pleads Guilty to Tax Fraud in Connection with MDOC Bribery ScandalRead the Press Release
Jackson, Miss. – Guy E. "Butch" Evans, 64, of Jackson, pled guilty today before United States District Judge Henry T. Wingate to aiding and abetting tax fraud, announced U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and IRS-Criminal Investigation Acting Special Agent in Charge Ted A. Magee.
Evans was an insurance broker who served as Mississippi Department of Corrections’ (MDOC) insurance broker of record to provide health and dental policies for MDOC employees. Evans received commissions from the insurance companies that provided the policies he sold to MDOC employees and paid a portion of his commissions to MDOC Commissioner Christopher B. Epps. Epps received approximately $19,200.00 in cash payments from Evans during the 2013 tax year. Evans made the payments to Epps with the full knowledge that Epps would not report the money on his return. Epps requested cash payments during face-to-face meetings with Evans and would hoard or structure the cash payments received so they would go undetected for tax purposes. Epps and Evans discussed withholding a portion of the cash payments as a "fee" to cover the Defendant’s tax obligations on the unreported monies but ultimately failed to pay the tax owed.
Evans is scheduled to be sentenced by Judge Wingate on July 10, 2018 at 9:30 a.m., and faces a maximum sentence of 5 years in federal prison and a $100,000 fine.
U.S. Attorney Hurst praised the efforts of the FBI, IRS, Leake County Sheriff’s Office, and other law enforcement agencies who assisted in the investigation of this case. Assistant U.S. Attorneys Mary Helen Wall, Kristi Johnson and Abe McGlothin are prosecuting the case.
Iredell Co. Man Sentenced to 19 Years on Drug and Gun ChargesRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Frank D. Whitney has sentenced Jackson Suddreth Tyler, 22, of Troutman, N.C. to 228 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered Tyler to serve six years under court supervision after he is released from prison.
U.S. Attorney Murray is joined in making today’s announcement by Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Sheriff Darren Campbell of the Iredell County Sheriff’s Office.
According to filed court documents and court proceedings, on January 24, 2017, the Iredell County Sheriff’s Office received a 911 call for service at a residence located in Troutman. Upon arrival at the residence, law enforcement found Tyler and a deceased male who had sustained a gunshot wound. Law enforcement determined that approximately an hour had passed before the 911 call was made in regards to the shooting.
According to court records, Tyler told law enforcement he had not shot the victim. Tyler indicated that the victim had entered the residence armed with a pistol and wearing a mask, and that the victim had shot himself. Contrary to Tyler’s statement about the victim shooting himself, law enforcement determined that a different firearm was used to kill the deceased.
While executing a search warrant at the residence, law enforcement determined that Tyler was manufacturing ecstacy pills and firearms. Law enforcement seized from the residence large capacity magazines and 33 firearms, two of which were stolen and one with an obilerated serial number, gun parts, and 6,051 rounds of ammunition, as well as items used in manufactuing MDMA (ecstacy) pills, and more than two kilograms of MDMA pills. Law enforcement also located underneth the victim a firearm and an empty magazine. Also, according to court records, law enforcement determined that during the delay between the time the deceased was shot and 911 was called, the scene had been disturbed and items were removed from the home.
Tyler pleaded guilty in October 2017 to possession with intent to distribute MDMA and discharging a firearm during and in furtherance to a drug trafficking crime.
In sentencing Tyler, Judge Whitney said that Tyler was involved in a “deadly combination of criminal events,” noting the dangerousness of guns and drugs.
U.S. Attorney Murray thanked the ATF and the Iredell County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Indiana Man Sentenced on Child Pornography ChargeRead the Press Release
United States Attorney Ron Parsons announced that an Elkhart, Indiana, man was sentenced on April 17, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Brendan Leiter, age 26, was sentenced to 3 years of imprisonment, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Leiter was one of ten men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2016 Sturgis Motorcycle Rally, targeting persons seeking to pay to have sex with underage girls or boys obtained through the Internet. The conviction stemmed from Leiter communicating with someone he believed to be a minor for the purpose of engaging in sexual acts, and requesting the minor send him a nude image of herself.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Leiter was immediately remanded to the custody of the U.S. Marshals Service.
Husband and Wife Sentenced to Prison for Arson of Apartment BuildingRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that two people were sentenced to prison for their involvement in the arson of an 8-unit apartment building in Milwaukee in December 2014. The fire resulted in injuries to multiple people, including tenants and three firefighters with the Milwaukee Fire Department. On April 12, 2018, United States District Court Judge Pamela Pepper sentenced Levita Brewer to 120 months (10 years) in prison to be followed by five years of supervised release. On October 11, 2017, United States District Court Judge J.P. Stadtmueller sentenced Stepfonz Campbell to 92 months (7 years, 8 months) in prison to be followed by five years of supervised release.
The evidence reflected that in early December 2014, Brewer and Campbell, who are married, traveled from Tennessee to Milwaukee, where they had lived just a couple months earlier. Around 10:00 p.m. on December 2, 2014, Brewer poured gasoline in the common hallway of an occupied apartment building on West Eggert Place. Their motive in setting the fire was to retaliate against the landlord, who previously had evicted them.
As the fire progressed, multiple tenants were forced to break through windows and jump to the ground to escape the fire. Three firefighters who entered the building in the midst of the fire found themselves trapped in extreme heat on the second floor. They jumped from a second-story window to the ground and suffered significant injuries. At the sentencing hearings, the federal prosecutor discussed the significant physical and emotional injuries tenants and firefighters endured as a result of the arson.
According to United States Attorney Krueger: “The defendants committed a most heinous act of violence, setting fire to the homes of innocent people. We commend the bravery of the firefighters and tenants who survived this near-fatal arson. The United States Attorney’s Office is committed to combatting violent crime, including arsons, and will continue to seek substantial prison sentences for those who harm members of our community. This successful prosecution resulted from excellent collaboration between federal, state, and local law enforcement, the Milwaukee Fire Department, as well as officers from the Jackson, Tennessee, Police Department.”
“These arsons could have turned tragic very quickly,” said ATF Special Agent in Charge Kurt Thielhorn of the St. Paul Field Division. “Three firefighters suffered tremendously from their injuries incurred while responding to the blaze; we are thankful they are still with us. Let this case show that thoughtless acts like these will be brought to justice. We’re proud to work alongside the Milwaukee Police Department, Milwaukee Fire Department, and Wisconsin Department of Justice during this investigation. It is due to their diligence in the pursuit of justice that the truth was uncovered of who was responsible for these reckless acts.”
By virtue of its statutory authority under Title XI of the Organized Crime Control Act of 1970, ATF initiates investigations and assists in state and local bomb and arson investigations. Over nearly 40 years, ATF has developed scientifically proven investigative capabilities, expertise and resources and has proved that the cooperative effort between trained State and local officers and ATF results in more effective investigations.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wisconsin Department of Justice Division of Criminal Investigation, the Milwaukee Fire Department, the Milwaukee Police Department, and the Jackson, Tennessee, Police Department. The case was prosecuted by Assistant United States Attorneys Margaret B. Honrath and William J. Lipscomb.
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For additional information contact:
Public Information Officer Dean Puschnig, (414) 297‑1700
Hammond Man Who Advertised Minors for Sex on Backpage.com Sentenced to Life in PrisonRead the Press Release
HAMMOND – Ronnie Cosby, 42 years old, of Hammond, Indiana, was sentenced on April 23, 2018, by District Court Judge Philip Simon to life imprisonment following his convictions of one count of sex trafficking a minor, two counts of transporting a minor for prostitution and two counts of producing child pornography, announced U.S. Attorney Thomas L. Kirsch II.
U.S. Attorney Kirsch said, “Mr. Cosby engaged in horrific acts of sex trafficking involving minors. As demonstrated by the conviction and sentence in this case, such acts carry severe consequences for those who commit them. Sex trafficking and crimes involving minor victims will never be tolerated. My office and our law enforcement partners will continue to come after individuals who commit these horrible crimes to the fullest extent permitted by law.”
According to publicly available information in the case, between December 2014 and February 2015, Cosby caused two minor females to engage in prostitution at his apartment in Hammond, Indiana, and other nearby locations. Cosby met one victim, a 14 year-old homeless girl, on Badoo, an online dating website, and within hours began prostituting her out of his apartment in Hammond, Indiana. Cosby met the second victim, a 15 year-old high school student, through a friend, and within a day offered her sexual services online to men in exchange for money. Cosby transported this second minor victim from Hammond to a hotel in Lansing, Illinois, where he and another working at his direction kept her under constant surveillance while arranging for men to come to the hotel to have sex with her. Cosby took sexually explicit images of both minor victims using his mobile phone and uploaded the images to Backpage.com, a website he used to offer them up to strangers interested in paying for sex. Cosby also texted images of both victims to friends and repeat prostitution customers to drum up additional business.
In a coordinated law enforcement operation last month, the Justice Department seized Backpage.com, the Internet’s leading forum for prostitution ads, including ads depicting the prostitution of children.
This case was investigated by Homeland Security Investigations and the Hammond Police Department with the assistance of the Federal Bureau of Investigation and members of the Northwest Indiana Human Trafficking Working Group. This case was prosecuted by Assistant United States Attorneys Abizer Zanzi and Jill Koster.
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Glendale Woman Sentenced to Prison in Bank Fraud/Stolen Identity Fraud SchemeRead the Press Release
PHOENIX– Yesterday, Veronica Castro, 44, of Glendale, Ariz. was sentenced by U.S. District Judge G. Murray Snow to 20 months in prison and was ordered to pay $1,145,392 in restitution. Castro had previously pleaded guilty to conspiracy to commit bank fraud along with co-defendant Yomtov Scott Menaged. Menaged was previously sentenced to 17 years’ imprisonment for his role in the bank fraud and other associated schemes.
Castro was a long time employee of Menaged who owned and operated retail furniture stores in the Phoenix area. Castro helped Menaged operate an elaborate identity theft scheme involving purported customers of the various retail furniture stores. Menaged obtained personal identification information of recently deceased individuals and used their information to submit false credit card applications to banks. Castro created false and fraudulent credit applications and receipts listing the same names and personal identification information to submit to the banks in an attempt to conceal the fraud after payments were issued on the fraudulent accounts. In fact, no real furniture purchases ever took place. The scheme resulted in a more than $1 million loss to the bank.
The investigation in this case was conducted by Department of Homeland Security, Homeland Security Investigations and Internal Revenue Service-Criminal Investigation. The prosecution was handled by Monica B. Edelstein, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-000680-PHX-GMS
RELEASE NUMBER: 2018-047_Castro
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Fulton County Man Arrested for Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – Charles Guyer, age 59, of Johnstown, New York, was arrested today on a charge of distributing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Guyer made an initial appearance in Albany before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.
The complaint filed against Guyer alleges that in March and April 2018, he used file-sharing software to distribute child pornography over the Internet. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted on all charges, Guyer faces a minimum 15 years and up to 40 years in prison, a maximum $250,000 fine, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by HSI, with assistance from the Johnstown Police Department, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Fourth Federal Inmate at Fort Dix Admits Possessing Images and Videos of Child Sexual Abuse While in PrisonRead the Press Release
CAMDEN, N.J. – A Brookhaven, Pennsylvania, man today admitted possessing hundreds of images and videos of child sexual abuse while imprisoned at Federal Correctional Institution Fort Dix for previous offenses involving the distribution and possession of child pornography, U.S. Attorney Craig Carpenito announced.
Brian J. McKay, 47, pleaded guilty before Senior U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
McKay admitted that he possessed two micro SD Cards which together contained a total of approximately 593 images and 645 videos of child pornography, some of which depicted children being sexually abused and sadistic and masochistic sexual conduct involving infants and toddlers. In connection with his plea, McKay also admitted that he distributed child pornography to another inmate.
McKay and seven other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that McKay and other inmates utilized contraband cellphones, micro SD cards, and access to the internet to obtain, view, and distribute child pornography within the prison. A co-defendant organized and helped facilitate this criminal activity by maintaining cloud accounts that were used as repositories for child pornography.
At sentencing, McKay faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Sentencing is scheduled for Aug. 6, 2018.
Three other inmates – Erik M. Smith, 36, of Iron Mountain, Michigan, Anthony C. Jeffries, 32, of Orange, Virginia, and Jordan T. Allen, 31, of Plain City, Ohio – have also pleaded guilty to possession of child pornography and await sentencing.
Charges remain pending against Christopher D. Roffler, 30, of Virginia Beach, Virginia; Jacob S. Good, 26, of Fredericksburg, Virginia; William H. Noble, 52, of Lowell, Massachusetts; and Charles Wesley Bush, 38, of Knoxville, Tennessee, all of whom were serving sentences for prior child pornography offenses while committing the alleged crimes in this case. The pending charges and allegations are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: John B. Brennan Esq., Camden
Former Finance Director of Nonprofit Serving Underprivileged Youth Charged with FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the arrest of MICHELLE FOLEY, a former employee of a Manhattan-based nonprofit organization that provides arts and mentoring programs to underserved youth. FOLEY is charged with bank, wire, and access device fraud in connection with her theft of funds from the organization. FOLEY will be presented today in Manhattan federal court before the U.S. Magistrate Judge Stewart D. Aaron.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Michelle Foley allegedly used her position at a nonprofit to steal funds intended for disadvantaged youth. Rather than directing the organization’s funds to those in need, Foley allegedly used over $150,000 for her own selfish gain, including a trip to Disney World and a puppy. Today Michelle Foley is charged with serious federal crimes for her alleged conduct.”
According to the allegations in the Complaint sworn out today in Manhattan federal court:[1]
The nonprofit organization, founded in 1998, is based in New York, New York, and provides arts and mentoring programs to low-income, homeless, and neglected children. From at least in or about July 2017 up to and including in or about February 2018, FOLEY abused her position as the organization’s director of finance and operations by stealing more than $150,000 from the organization. FOLEY issued unauthorized checks on behalf of the organization to herself, totaling more than $56,000, and obtained two corporate credit cards, which were linked to the organization’s bank account and which she used to make personal, unauthorized purchases. During the course of her employment, FOLEY charged more than $100,000 to these credit cards, including by making payments for a puppy, home furnishings and appliances, and expenses associated with a trip to Disney World.
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FOLEY, 45, of Wilton, Connecticut, is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of access device fraud, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Special Agents for the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Elinor L. Tarlow is 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 herein constitute only allegations, and every fact described should be treated as an allegation.
Former Daycare Worker Pleads Guilty to Conveying A False Bomb Threat and Perpetuating A HoaxRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Jasmine Bradley, age 26, of Macon, GA entered a plea of guilty on April 23, 2018 to Conveying of False Information and Perpetuating a Hoax. Ms. Bradley entered her plea in Macon before District Court Judge Marc T. Treadwell.
Facts stipulated in the plea agreement show that on April 24, 2017, a bomb threat was made using Facebook to the Child Care Network School located at 3490 Northside Drive in Macon, Georgia. Specifically, the message indicated that a bomb had been planted and that someone would “blow up every little face in that center tomorrow.” An investigation led to the discovery that the device used to post the threat belonged to Ms. Bradley. Law enforcement arrested Ms. Bradley while she was at work at the Child Care Network School. She admitted to making threats to that daycare, as well as additional threats to other daycares in Bibb County.
Ms. Bradley faces up to five years imprisonment, a maximum fine of $250,000, or both and will be sentenced at a later date.
“Ms. Bradley’s actions on April 24, 2017, were terrifying to the children, parents, and employees of the Child Care Network School,” United States Attorney Charles Peeler said. “She caused disruption of school and work for many and caused law enforcement to expend precious time and money investigating this false bomb threat. Thankfully, no child was physically harmed due to her actions and she will now face the consequences of her decision by being sentenced in federal court.”
The case was investigated by the Bibb County Sheriff’s Office and the Macon Office of the Federal Bureau of Investigation (FBI). Assistant United States Attorney Shanelle Booker is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former City of Plymouth Official Charged in Illegal Bribery and Kickback SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced the filing of a felony information charging RONNIE EUGENE TAGGART, 50, for soliciting and receiving bribes and kickbacks in exchange for awarding City of Plymouth contracts. TAGGART will make his initial appearance in U.S. District Court at a later date.
According to the information, from approximately October 2012 through November 2016, TAGGART was the Facilities Supervisor for the City of Plymouth, Minnesota. In his position, TAGGART was responsible for the maintenance of all buildings owned and operated by the City of Plymouth, including the authority to award contracts for City projects such as building maintenance and cleaning, landscaping, and snow removal.
According to the information, from approximately 2014 through November 2016, TAGGART devised a scheme to defraud the City of Plymouth by soliciting and receiving bribes and kickbacks in exchange for awarding City contracts to various contractors outside of the competitive bidding process mandated by Minnesota state law and City of Plymouth procurement policy. TAGGART solicited and received cash kickbacks based on the total value of certain contracts. On other contracts, TAGGART received a flat cash kickback amount from the contractor. TAGGART also solicited and received non-cash bribes from certain City contractors, including items and services for TAGGART’S home, such as thousands of dollars in kitchen appliances, installation of new carpet, a concrete driveway, a garage door, a yard irrigation and sprinkler system, and extensive landscaping and electrical work. All of these items and services were provided to TAGGART at no cost.
According to the information, in order to conceal his failure to comply with the competitive bidding requirements, TAGGART instructed the bribe- and kickback-paying contractors to submit a second, fake quotation to give the false appearance that TAGGART had complied with the state statute and City policy. TAGGART also encouraged the bribe- and kickback-paying contractors to inflate the amount of their bids to cover the cost of the kickbacks and bribes. In total, TAGGART solicited and received bribes and kickbacks worth approximately $58,532.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
Assistant United States Attorney Joseph H. Thompson is prosecuting the case.
Defendant Information:
RONNIE EUGENE TAGGART, 50
Golden Valley, Minn.
Charges:
- Wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the information are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Former Assistant District Attorney Convicted in Manhattan Federal Court of Bribery and Fraud Relating to Gun LicensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of JOHN CHAMBERS for bribery, conspiracy to commit bribery, honest services fraud, and conspiracy to commit honest services fraud. The jury convicted CHAMBERS today on all four counts of the Indictment following a one-week trial before U.S. District Judge William H. Pauley III.
U.S. Attorney Geoffrey S. Berman said: “John Chambers, a former prosecutor, called himself a gun license ‘expediter.’ What a unanimous jury concluded today was that his expediting amounted to little more than bribing his contacts in the NYPD’s License Division. On behalf of his clients, Chambers acted as an intermediary for individuals who sought to circumvent the legitimate gun licensing process, and in some cases had criminal records or were otherwise precluded from owning firearms at all. The willingness of John Chambers to corrupt the gun License Division for his own benefit exposed the people of New York to unnecessary danger. This Office will continue to root out the corruption that undermines the public’s confidence in the law enforcement officers and institutions sworn to serve us all.”
According to the Indictment, other filings in Manhattan federal court, and evidence presented in court during the trial:
JOHN CHAMBERS, a former Assistant District Attorney in Kings County, is an attorney who represents individuals before the NYPD’s License Division, and who markets himself to potential clients as the “Top Firearms Licensing Attorney in NY.” From at least 2010 through 2015, CHAMBERS gave NYPD Sergeant David Villanueva numerous valuable items, including tickets to sporting and entertainment events for Villanueva and his family, free dinners and lunches for Villanueva, sports memorabilia, a wristwatch with a retail price of approximately $8,500, and over $2000 in cash.
In exchange, Villanueva assisted CHAMBERS’s clients in several ways. When licensees who were clients of CHAMBERS were subject to “incident investigations” – investigations by the License Division to determine whether a license should be suspended or revoked as a result of an incident – Villanueva would close these investigations more quickly and with more favorable outcomes than the applicants otherwise would receive. For example, on multiple occasions, Villanueva continued licenses for CHAMBERS’s clients – returning their ability to keep and carry firearms – even when the appropriate disposition would have been a license revocation, based on incidents such as domestic incidents or accidental firearms discharges. Villanueva also would modify the results of incident investigations after they were completed, such as changing a license revocation for multiple drunk driving arrests into a short suspension. Villanueva would also cause CHAMBERS’s clients to receive shorter suspension periods than they would otherwise receive. In addition, Villanueva ensured that renewal applications submitted by CHAMBERS’s clients, which typically take 30 to 40 days for approval, were renewed more expeditiously, sometimes as quickly as within one day. He also upgraded the licenses of clients of CHAMBERS to full concealed carry licenses on an expedited basis and without sufficient documentation to justify the upgrade.
Villanueva also helped CHAMBERS renew gun licenses for clients before the Pistol Section of the Nassau County Police Department, where Villanueva had contacts. Starting in or about 2012, CHAMBERS brought his clients’ renewal applications to Villanueva at One Police Plaza, and Villanueva mailed those applications to the Pistol Section using his NYPD License Division stationery. Villanueva did so knowing that because he was submitting the renewal applications using his NYPD License Division stationery, the renewals would be approved in a significantly faster time for CHAMBERS’s clients than for other applicants. In exchange, CHAMBERS gave Villanueva cash bribes, as well as tickets to sporting and entertainment events for Villanueva and his family. CHAMBERS typically mailed Villanueva the cash by taping it to the inside of a magazine.
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CHAMBERS, 63, who resides in Manhattan, New York, was found guilty of one count of bribery, which carries a maximum term of 10 years in prison, one count of conspiracy to commit bribery, which carries a maximum term of five years in prison, one count of honest services fraud, which carries a maximum term of 20 years in prison, and one count of conspiracy to commit honest services fraud, which carries a maximum of 20 years in prison.
CHAMBERS is scheduled to be sentenced on August 9, 2018.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Bureau, and noted that the investigation is continuing.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Alex Rossmiller and Paul M. Monteleoni are in charge of the prosecution.
Federal Officials Announce National Prescription Take Back DayRead the Press Release
Residents of Louisiana have an opportunity to safely and anonymously rid their homes of unused, unwanted, unneeded, or expired prescription medications, announced United States Attorney Brandon Fremin of the Middle District of Louisiana, and U.S. Drug Enforcement Administration (DEA) Assistant Special Agent in Charge Brad L. Byerley.
The National Prescription Take Back Day is Saturday, April 28, 2018, at more than 5 locations within the Middle District of Louisiana and over 30 locations across Louisiana. During this one-day event, federal and local law enforcement will, once again, partner together to increase awareness of prescription drug abuse and provide an opportunity to reduce the availability of prescription pain medications in local homes.
U.S. Attorney Brandon Fremin stated: “This program seeks to lessen the massive amount of prescription drugs available at the homes of unsuspecting families throughout our district. Reducing this available supply is an important component in our fight against opioid abuse, and it is something that many – if not most – residents can do something about.”
DEA Assistant Special Agent in Charge Brad Byerley stated: “The most common way that prescription drug abusers obtain their drugs is from their own family and friends. We can all do our part to potentially reduce substance abuse by being proactive and participating in the prescription drug take back program. Removing unwanted or expired medications from our home is a step we can all take to keep our families and community both healthier and safer.”
Prescription Take Back days have historically been very successful. For example, in October 2017, the 14th National Prescription Drug Take-Back Day, which involved almost 4,300 national, tribal, state, and local law enforcement partners, resulted in the collection of 912,305 pounds (456 tons) of prescription drugs at more than 5,300 collection sites. The program has resulted in the collection of more than 9 million pounds (more than 4,500 tons) since it began seven years ago.
The Prescription Drug Take Back is part of a nationwide effort sponsored by the DEA. Containers where unwanted and expired prescription medications may be safely disposed will be at locations across the Baton Rouge Metropolitan area on Saturday, April 28th from 10 a.m. to 2:00 p.m. (DEA cannot accept liquids, needles or sharps). The service is free and anonymous, with no questions asked.
A complete list of locations may be found at WWW.DEA.GOV by clicking on Drug Take Back and typing in your zip code.
Many Americans are unsure of how to properly dispose of their unused medications and often flush them down the toilet or throw them away. This poses safety and health hazards. More information on how to properly dispose of unused medicines can be found on the Drug Enforcement Administration website.
Federal Law Enforcement Agent Convicted of Criminal Charges Related to Helping Mexican National Enter the United StatesRead the Press Release
LOS ANGELES – A special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) has been found guilty of four federal offenses related to assistance he provided to a Mexican national with a criminal record to re-enter the United States.
Felix Cisneros Jr., 44, of Murrieta, an 11-year veteran of ICE who is now on indefinite suspension from the agency, was found guilty late Monday afternoon following a four-day trial in United States District Court.
The jury found Cisneros guilty of four felony counts: conspiracy to aid and assist the entry of an alien convicted of an aggravated felony into the United States, acting as agent of another person in a matter affecting the government, falsification of records in a federal investigation, and making false statements.
According to court documents and the evidence presented to the jury, Cisneros agreed to help a friend’s business associate re-enter the United States after traveling to Mexico City in September 2013. The business associate, Santiago Garcia-Gutierrez, was a lawful permanent resident of the United States, but because of prior criminal convictions and an outstanding warrant for his arrest, he was barred from being legally admitted into the United States upon his return. United States Customs and Border Protection (CBP) had seized Garcia’s Mexican passport and his “Green Card” when he attempted to enter the United States two months earlier, but he was paroled in –meaning he was temporarily allowed into the United States – pending the resolution of his criminal case.
As part of the conspiracy, Cisneros persuaded CBP officers to return Garcia’s passport, ensured that Garcia would be allowed to re-enter the United States after the September 2013 trip, and urged CBP to extend Garcia’s parole that allowed him to remain in the United States pending resolution of his immigration status. Cisneros provided assistance to Garcia knowing about his prior convictions.
As part of the conspiracy, Cisneros had queried a law enforcement database, which provided him information about Garcia’s prior convictions, as well as information that Garcia was suspected of participating in criminal activities.
The falsification of records and the false statements charges relate to Cisneros failing to disclose that he had a longstanding relationship with Garcia during a regular background investigation being conducted as part of his employment as an ICE agent.
Cisneros is scheduled to be sentenced by United States District Judge Christina A. Snyder on July 30, at which time he will face a statutory maximum sentence of 20 years in federal prison.
The jury that convicted Cisneros also acquitted him of two counts of obstruction of justice.
The case against Cisneros is the product of an investigation by the Federal Bureau of Investigation; the Department of Homeland Security, Office of Inspector General; and the ICE Office of Professional Responsibility.
This case is being prosecuted by Assistant United States Attorneys Patricia A. Donahue and Sheila Nagaraj of the Public Corruption and Civil Rights Section.
Federal Jury Convicts Wilson Man for Being a Felon in Possession of a FirearmRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today in Federal court, KELLY SHADROME ANDERSON, a 33-year-old resident of Wilson, was convicted following a two-day trial before Senior United States District Judge Malcolm J. Howard. The jury found ANDERSON guilty of being a felon in possession of a firearm.
The evidence at trial showed that in the early evening on September 24, 2016, the Wilson Police Department responded to a burglary in progress at a residence (716 Harper Street) in Wilson. The resident of the home advised that she was sitting on her front porch with a friend and observed ANDERSON run toward her with a firearm. ANDERSON entered the residence and locked the front door. ANDERSON held a three year old hostage inside the residence. ANDERSON later surrendered and the firearm ANDERSON brandished was found inside the residence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Wilson Police Department. Melissa Kessler prosecuted the case on behalf of the United States.
Federal Jury Convicts Texas Man of Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that Ira Alan Arias, age 42, of Fort Worth, Texas, and Sisseton, South Dakota, was found guilty of three counts of Aggravated Sexual Abuse of a Child, as a result of a federal jury trial in Aberdeen, South Dakota. The verdict was returned on April 18, 2018.
The charge carries a penalty of a mandatory minimum of 30 years up to life in custody and/or a $250,000 fine, a mandatory minimum term of five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Arias was indicted by a federal grand jury on April 4, 2018.
On or about May 3, 2015, Arias forcefully engaged in three sexual acts with the victim, who was 14 years old at the time of the sexual abuse. The sexual abuse occurred in a hotel room in Codington County.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri.
A presentence investigation was ordered and Arias will be sentenced on July 9, 2018. Arias was detained pending and during trial, and he remains in federal custody.
East Texas Hospital Self-Discloses and Resolves Health Care Compliance ConcernsRead the Press Release
PLANO, Texas – Gainesville Hospital District d/b/a North Texas Medical Center will pay the United States $1,320,000 to resolve concerns surrounding payment arrangements with a physician, announced United States Attorney Joseph D. Brown.
“The United States Attorney’s Office for the Eastern District of Texas is pleased that North Texas Medical Center voluntarily self-disclosed potential health care compliance concerns,” said U.S. Attorney Brown. “We continue to encourage health care providers to proactively identify and disclose compliance concerns to our office. This process is almost always more efficient and less costly than defending enforcement actions.”
On Sep. 26, 2017, North Texas Medical Center made a submission pursuant to OIG-HHS’s Self Disclosure Protocol. North Texas Medical Center then made a similar submission to the United States Attorney’s Office for the Eastern District of Texas seeking resolution under the federal False Claims Act.
Based on these self-disclosures, the United States agreed to resolve potential claims arising from remuneration paid by North Texas Medical Center to Dr. Ramin Roufeh that was allegedly above fair market value, not commercially reasonable, and/or not appropriately memorialized in writing. The United States contended that at least one purpose of the remuneration provided by North Texas Medical Center to Dr. Roufeh was to induce the referral of federal health care program patients and that the remuneration induced such referrals in violation of the federal Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b)(2).
This matter was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the United States Attorney’s Office for the Eastern District of Texas. The civil settlement was negotiated by Assistant U.S. Attorney Joshua M. Russ.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
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District Man Pleads Guilty to 2012 Armed Rape of Howard University Student, Sentenced to 48 Years in PrisonRead the Press Release
WASHINGTON – Demarco Myles, 24, formerly of Washington, D.C., pled guilty today to charges stemming from the armed rape of a Howard University student at a dormitory in November 2012, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Myles pled guilty in the Superior Court of the District of Columbia to felony counts of first-degree sexual abuse while armed, burglary while armed, kidnapping while armed, and two misdemeanor counts of assault and second-degree theft. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 48 years in prison. After accepting the plea, the Honorable Ronna L. Beck sentenced Myles accordingly. Once released from prison, Myles will be placed on supervised release for the rest of his life. He will also be required to register as a sex offender for the rest of his life.
The sentence imposed today will run concurrently with a 40-year prison term that Myles now is serving for a second attack that he committed in October 2012 in Northeast Washington.
According to the government’s evidence, in the early afternoon of Nov. 2, 2012, Myles snuck into the Bethune Annex – a women’s dormitory – in the 2200 block of Fourth Street NW, on the Howard University campus. Once inside, he went from room to room until he found the victim alone in her dorm room. While brandishing a very distinctive looking knife, Myles raped her. During the rape, when the victim was pleading with him to stop and saying that she did not even know who Myles was, Myles grabbed a piece of paper, wrote “Marco” and a cell phone number on it, and thrust it in her face, saying, “Now you know me, [expletive]!” Following the rape, Myles tried to scratch out the phone number, but left the piece of paper behind.
When the Metropolitan Police Department (MPD) arrived moments later in response to a 911 call, they were able to decipher the phone number that had been written down. Using subscriber information concerning that number, and other information they were able to develop, Myles was arrested later that night at his home, where the distinctive knife he had used during the attack was recovered. He has been imprisoned ever since.
One week earlier, on Oct. 26, 2012, and almost to the minute, Myles had broken into the apartment of another woman who lived in the Rhode Island Row Apartments across from the Rhode Island Avenue Metro stop in Northeast Washington. He attempted to sexually assault that woman, as well, but she fled into a walk-in closet and tried to prevent Myles from getting to her. Myles overpowered the woman, however, and, in a rage, stabbed her more than 20 times, leaving her for dead. Although Myles later told police that he thought he had killed that woman, she somehow survived and was able to call 911 to report the attack. For the next week, MPD conducted a manhunt, trying to find the assailant. It was not until Myles struck again – in the Howard University attack – that Myles was arrested.
Myles pled guilty in January 2015 to a total of 10 charges stemming from the attack at the Rhode Island Row Apartments. He was sentenced in June 2015 to a 40-year prison term.
In announcing today’s plea, U.S. Attorney Liu and Chief Newsham commended the work of members of MPD’s Sexual Assault Unit, Criminal Investigations Unit, and Fifth District, who investigated the cases. They acknowledged the efforts of those who worked on the cases from the U.S. Attorney’s Office, including Paralegal Specialists Jason Manuel, D’Yvonne Key, Joyce Arthur, and Brenda Williams; Victim/Witness Advocates Melissa Milam and Elsa Maltese; La June Thames and Katina Adams-Washington, also of the Victim/Witness Assistance Unit; Information Technology Specialist Jeanie Latimore-Brown; Intelligence Specialist Sharon Johnson, and Criminal Investigators Steve Cohen and Durand Odom. They also commended the work of Assistant U.S. Attorneys Lauren Bates, Elizabeth Danello, Colleen Kennedy, Chrisellen Kolb, Jodi Lazarus, and Elizabeth Trosman for assistance on legal issues. Finally, they commended the work of Assistant U.S. Attorneys Andrea Hertzfeld, John L. Hill, Nicholas G. Miranda and Peter V. Taylor, who investigated and prosecuted this case.