Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Saturday 3 March 2018
Little Eagle Man Charged with Domestic Assault Appears in Federal CourtRead the Press Release
United States Attorney Ron Parsons announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender.
Milo Reuben Red Tomahawk, age 38, was indicted on February 6, 2018. He appeared before U.S. Magistrate Judge William D. Gerdes on February 27, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, Red Tomahawk unlawfully committed a domestic assault upon the victim, when at the time of the domestic assault, he had a final conviction on at least two separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. This assault took place in May of 2017.
The charges are merely accusations and Red Tomahawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs-Office of Justice Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Red Tomahawk was ordered detained pending trial. A trial date has not been set.
Guardians Project Results in Multiple Defendants Facing New Federal Indictments and SentencingRead the Press Release
United States Attorney Ron Parsons announced the indictments and sentencing in cases, all of which are separately noted below, that were brought pursuant to the U.S. Attorney’s Office’s Guardians Project. The Guardians Project is a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities.
The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Six Individuals Facing Federal Charge for Retaliating Against Witness of a Previous Fraud Case
Tally Colombe, age 43, Fort Worth, Texas; Elnita Rank, age 81, Fort Thompson, South Dakota; Kristal Hawk, age 57, Fort Thompson; Ronda Hawk, age 60, Fort Thompson; Tiffany Monteau age 43, Chamberlain; and Stefan Monteau, age 26, Fort Thompson, were indicted on February 6, 2018, for Conspiracy to Retaliate Against a Witness. All of these defendants, except Tally Colombe, appeared before U.S. Magistrate Judge Mark A. Moreno in February 2018, and all pled not guilty to the Indictment.
Tally Colombe is currently serving a federal sentence of imprisonment in Texas, and she will make her appearance at a later date. Colombe was convicted for federal offenses giving rise to and preceding this new Indictment alleging retaliation. The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that from on or about September 8, 2017, and continuing through on or about September 12, 2017, at Fort Thompson and elsewhere, Tally Colombe, Elnita Rank, Kristal Hawk, Ronda Hawk, Tiffany Monteau, and Stefen Monteau conspired and agreed among themselves and each other to commit a certain offense, as follows: to knowingly take action harmful against a certain individual, which interfered with the lawful employment and livelihood of this individual, such conduct being taken with the intent to retaliate against this individual for providing to a law enforcement officer truthful information relating to the commission and possible commission of a federal offense, namely program fraud and wire fraud. The alleged retaliatory conduct took place on the Crow Creek Sioux Tribe’s reservation.
The charge is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann Hoffman is prosecuting the case.
Former Crow Creek Tribal Court Administrator Charged with Embezzlement
LeeAnn Piskule, age 53, was indicted on February 14, 2018, for Embezzlement and Theft from an Indian Tribal Organization. The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleged that from May through August 2017, Piskule embezzled and converted to her own use more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to the Crow Creek Tribal Court, Crow Creek Sioux Tribe, an Indian Tribal Organization. During the time of the embezzlement, Piskule was serving as the Crow Creek Tribal Court Administrator.
The charge is merely an accusation and Piskule is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Mission Man and Woman Charged with Wire Fraud
Mark Edward O’Leary, age 35, and Sharli Colombe, age 35, were indicted on February 14, 2018, for Conspiracy to Commit Wire Fraud and Wire Fraud. They appeared before U.S. Magistrate Judge Mark A. Moreno on February 15, 2018, and both pled not guilty to the Indictment. The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 4, 2011, through June 6, 2017, O’Leary and Colombe passed at least 544 checks drawn on a bank account not belonging to either of them. The checks were used for personal items for O’Leary and Colombe and the purchases or deposits were not authorized by the owner of the bank account. Much of the alleged conspiracy and fraud took place on the Rosebud Sioux Tribe’s reservation.
The charges are merely accusations and O’Leary and Colombe are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Former Director of Rosebud Tribal Ranch Sentenced for Embezzlement
Stormy Halligan, age 43, Winner, was sentenced on February 13, 2018, by U.S. Magistrate Judge Mark A. Moreno. Halligan was sentenced to 18 months of federal probation. He was ordered to pay approximately $10,000 in restitution.
According to court documents filed in Halligan’s case, between April 1, 2015, and March 31, 2016, he willfully and knowingly embezzled, misapplied, and converted to his own use monies, funds, credits, goods, assets, and other property belonging to the Rosebud Sioux Tribe Tribal Ranch, an Indian Tribal Organization.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Fort Thompson Man Charged with Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Darrell Touche, age 43, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 20, 2016, and October 21, 2016, Touche knowingly caused and attempted to cause a female victim to engage in a sexual act by the use of force.
The charge is merely an accusation and Touche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Touche was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Federal Jury Convicts Corson County Man of Domestic Assault and Tampering with VictimRead the Press Release
United States Attorney Ron Parsons announced that a Bullhead, South Dakota man, Alexander Oka, 27, was convicted by a federal jury for Domestic Assault by an Habitual Offender and for Tampering with a Victim. The jury returned the verdict on February 23, 2018.
According to court documents and evidence produced at trial, on July 5, 2017, Oka unlawfully committed a domestic assault upon the victim, when at the time of the domestic assault, Oka had a final conviction on at least two separate prior occasions, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner.
During this assault, Oka smacked the victim’s head, and then kicked the victim in the back while she was not looking, and while she was feeding the baby she shares with Oka. The kick caused the victim significant pain. After being arrested for the assault, Oka sent a letter from jail to the victim instructing her not to cooperate and not to show-up for court proceedings. Oka had been previously convicted in multiple cases of domestic abuse. These prior convictions took place in tribal and federal court.
The maximum penalty for Domestic Assault by an Habitual Offender is up to five years of imprisonment, and the maximum penalty for Tampering with a Victim is up to twenty years of imprisonment. Each conviction also carries a maximum $250,000 fine and/or imprisonment, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The investigation was conducted by the Bureau of Indian Affairs-Office of Justice Services. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Oka was ordered detained pending sentencing. A sentencing date has been tentatively set for May 14, 2018, in Pierre.
Eagle Butte Woman Charged with TheftRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Theft from Indian Tribal Organization.
Calynn Gunville, age 27, was indicted on February 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 20, 2017, and August 18, 2017, Gunville willfully and knowingly stole, embezzled, and converted to her own use, money and funds belonging to the Lakota Thrifty Mart, an Indian tribal organization.
The charge is merely an accusation and Gunville is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Gunville was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Charged with Drug and Firearm OffensesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Distribution of a Controlled Substance to Persons Under Age Twenty-One, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person.
Shaun Chayne Condon, age 32, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $750,000 fine, up to 9 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 25, 2017, Condon knowingly and intentionally possessed with intent to distribute and distributed marijuana, a Schedule I controlled substance, to minors. The Indictment also alleges that Condon, having been an unlawful user of, and addicted to a controlled substance, knowingly received and possessed a Smith & Wesson 9mm hand gun.
The charges are merely accusations and Condon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Condon was released on bond pending trial, which has been set to April 17, 2018.
Agency Village Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that an Agency Village, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Sylanus Flute, age 23, was indicted on February 6, 2018. He appeared before U.S. Magistrate Judge William D. Gerdes on February 13, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life imprisonment and/or a $250,000 fine, 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, between February and April of 2017, Flute engaged in sexual acts with a juvenile female. To perpetrate the sexual assault, Flute used force.
The charges are merely accusations and Flute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Sisseton-Wahpeton Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Flute was ordered detained pending trial. A trial date has been set for April 17, 2018.
Friday 2 March 2018
Woman Sentenced in Prison Bribery and Drug Trafficking CaseRead the Press Release
MISSOULA—Rachel Leanna Ross, 26, of Somerville Tennessee, was sentenced to 14 months in prison, 3 years supervised release, and a $100 surcharge by United States District Court Judge Dana L. Christensen on Friday, March 2, 2018 for conspiracy to possess with intent to distribute and to distribute controlled substances—methamphetamine and Suboxone—into the Montana State Prison The charges were part of a scheme where Erin Bernhardt, an employee in the prison laundry, smuggled the controlled substances into inmates at the prison in exchange for bribes. The crimes occurred between April and August 2015.
The court previously sentenced other members of the scheme to the following sentences: Cordero Robert Metzker, to three years’ imprisonment; Erin Bernhardt, to 14 months’ imprisonment; Ian Scott Barclay to 92 months’ imprisonment; and Lauren Hoskins to 14 months’ imprisonment.
The charge against Ross is the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, the Montana State Prison Warden and his staff, and the Montana Division of Criminal Investigations. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes prosecuted the case.
United States Attorney Kurt Alme stated, “I applaud the efforts of the Warden and his staff and the cooperative efforts of law enforcement involved in this investigation to keep drugs out of the Montana State Prison and root out corrupt employees. The sentences issued by the court send a powerful message that those who prey upon the addictions of inmates will be investigated, prosecuted, and imprisoned.”
Woman Sentenced for Injecting Adulterated Liquid SiliconeRead the Press Release
SAN JUAN, P.R. – Senior US District Court Judge Daniel Domínguez sentenced Rosa Betancourt-Farfán to 15 months in prison and one year of supervised release for injecting liquid silicone, an adulterated and misbranded device used for body-contouring, announced US Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Betancourt-Farfán was arrested and indicted in December 2016 and pled guilty on May 12, 2017. The US Food and Drug Administration’s (FDA’s) Office of Criminal Investigations (OCI) was in charge of the investigation.
According to the information gathered during the investigation, liquid silicone is sometimes injected into the body to “augment” tissues, such as the buttocks or breasts. When intended for tissue augmentation, liquid silicone is a “device” under the Federal Food, Drug, and Cosmetic Act, and is subject to FDA approval before it can legally be distributed and used for such use in the United States. FDA has not approved any liquid silicone products for injection to augment tissues anywhere in the body. In addition, the injection of liquid silicone into the body for tissue augmentation can result in serious adverse health consequences, including hardening of tissue at the injection site, embolization, and even death.
On or about May 23, 2016, Puerto Rico Board of Health, Legal Division, contacted the FDA-OCI to advise of a complainant who received medical procedures from a female individual who claimed to be a nurse. It was further indicated that the complainant received treatment to enlarge his/her buttocks and that the female individual was identified as “Rosa from Venezuela” (later identified as Rosa Betancourt-Farfán).
The complainant was interviewed by FDA-OCI agents and indicated that she had been injected in both glutes with one (1) vial by Betancourt-Farfán, for which she paid twelve hundred dollars ($1,200.00) in cash, but was having health problems during the summer of 2013. These problems consisted first with trouble breathing and back pain. Her health condition worsened on or about 2015, when she was hospitalized with tendonitis and back spasms.
“Your life is in danger if you have received any of these adulterated treatments. We urge people not to trust those who claim to be medical professionals and offer treatments outside of certified medical offices victimizing patients. The US Attorney’s Office is committed to protecting patients from medical frauds,” stated Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico.
“Liquid silicone injected into individuals’ bodies can cause serious harm and even death, and FDA has not approved any such product for body contouring,” said Justin D. Green, Special Agent in Charge, FDA’s Office of Criminal Investigations’ Miami Field Office. “We will continue to aggressively pursue and bring to justice those who endanger American consumers by offering these hazardous procedures.”
Assistant U.S. Attorney Myriam Fernández prosecuted the case. The case was investigated by the FDA, with assistance from Homeland Security Investigations.
# # #
Winter Haven Resident Convicted of Obtaining U.S. Citizenship by FraudRead the Press Release
Tampa, Florida – A federal jury yesterday found Enite Alindor a/k/a Odette Dureland (56, Winter Haven) guilty of obtaining her naturalization as a United States citizen contrary to law and making false statements in a proceeding relating to naturalization. Her sentencing hearing is scheduled for June 7, 2018.
According to the testimony and evidence presented at trial, Alindor, a citizen of Haiti, applied for asylum with the Immigration and Naturalization Service (INS) in Miami in February 1997. After the INS denied that application, the United States Immigration Court ordered her to be removed from the United States in absentia. Shortly thereafter, Alindor presented herself to the INS as “Odette Dureland” and filed for asylum protection under that new identity. She concealed the fact that she had previously applied for status in the United States as Enite Alindor, and concealed the fact that she was also under a final order of removal from the United States. U.S. Citizenship and Immigration Services personnel, unaware of the Alindor identity and order of removal, approved Dureland for citizenship in July 2012 and she was naturalized as a United States citizen under that name in July 2012.
“When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI places a high priority on investigating document and benefit fraud.”
“The integrity of our nation’s legal immigration system is paramount,” said USCIS Tampa Acting District Director Tracy Tarango. “This conviction sends a clear message that attempting to fraudulently obtain U.S. citizenship will not be tolerated. Our nation’s citizens deserve nothing less.”
The investigation that led to this prosecution was part of “Operation Second Look”, a nationwide investigation conducted by the U.S. Department of Homeland Security, which has reviewed multiple cases across the United States of aliens who gained citizenship by concealing from the INS their prior orders of deportation and orders of removal from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the U.S. Citizenship and Immigration Services Fraud Detection and National Security group in Tampa, and the USCIS Asylum Office in Miami, Florida. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Vicksburg Man Sentenced for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Jermaine Franklin, 36, of Vicksburg, was sentenced today by U.S. District Judge Carlton W. Reeves to 60 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On January 23, 2016, officers with the Vicksburg Police Department conducted a traffic stop on a vehicle driven by Jermaine Franklin. Following the traffic stop, Franklin fled the area on foot but was later apprehended. Officers recovered a loaded 9mm firearm, cocaine and a quantity of U.S. currency from the vehicle. Franklin was arrested and charged.
On June 21, 2017, a federal grand jury indicted Franklin on two counts – being a felon in possession of a firearm and possessing with intent to distribute cocaine hydrochloride. On December 7, 2017, Franklin pled guilty to illegally possessing a firearm as a felon. He had been previously convicted of Accessory After the Fact to Armed Robbery on March 1, 1999, and Being a Felon in Possession of a Firearm on November 19, 2004, in Warren County Circuit Court
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vicksburg Police Department. It was prosecuted by Assistant United States Attorney Erin Chalk.
Utah Man Sentenced to 59 Months for Defrauding Plattsburgh CompanyRead the Press Release
SYRACUSE, NEW YORK – Keith Eric Jergensen, age 58, of Salt Lake City, Utah, was sentenced today to 59 months in prison, to be followed by 3 years of supervised release, for conspiring to defraud a Plattsburgh, New York, company of $2.5 million.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
Jergensen and co-defendant Debashis Ghosh, age 53, of Chicago, Illinois, were convicted in October 2017 of wire fraud conspiracy following a 7-day trial presided over by United States District Judge Brenda K. Sannes.
In imposing sentence, Judge Sannes also ordered Jergensen to pay $2.5 million in restitution to his victims. Jergensen was taken into custody following the sentencing.
United States Attorney Grant C. Jaquith stated: “Jergensen stole $2.5 million from investors trying to bring an innovative business and jobs to Plattsburgh, and then tried to cover up his theft with years of lies. Today’s sentence holds Jergensen accountable for his greed and treachery.”
FBI Special Agent in Charge Vadim D. Thomas stated: “Jergensen and Ghosh abused their investors’ trust, as well as their money. The FBI is dedicated to investigating these crimes because of their lasting impact on the lives of the victims and our community as a whole.”
The evidence at trial demonstrated that Jergensen and Ghosh were Co-Chief Executive Officers of Verdant Capital Group, LLC (“Verdant”), based in Chicago.
Plattsburgh-based Laurentian Aerospace Corporation (“Laurentian”) retained Verdant to raise funds for the construction of an airplane maintenance, repair and overhaul facility to be built at the former United States Air Force base in Plattsburgh.
Jergensen and Ghosh asked Laurentian to invest $2.5 million as seed money for the project. They and Laurentian agreed that this money would remain in a Wells Fargo account and could not be moved without the authorization of Laurentian.
Laurentian, drawing on funds contributed by its board members and one outside investor, wired $2.5 million into the Wells Fargo account on December 3, 2010. Five days later, Jergensen and Ghosh began transferring the money out of the account without Laurentian’s authorization. By March 18, 2011 they had transferred all of the $2.5 million out of the account.
Jergensen and Ghosh used Laurentian’s $2.5 million to pay Verdant’s expenses including employees and contractors, and to pay others, including payments totaling $1.75 million to a now-defunct wind turbine company that Ghosh was a minority owner of; transfers of $96,500 to Jergensen’s company Contour Composites, Inc. of Utah; a $55,000 “loan” to a friend that the friend never repaid; and payments totaling $14,500 to an Arizona man who was promising them access to union pension funds.
Having spent the money, and as part of their conspiracy, Jergensen and Ghosh then spent several years falsely assuring Laurentian and its investors that their money was safe and secure, with Jergensen going so far as to forge a memorandum of understanding that purported to show that Laurentian’s money was in a secured bank account at Wells Fargo. The victim investors included a retired United States Air Force colonel, a former New York City Deputy Mayor, a retired law firm partner, and several retired executives from the financial and airline industries. To date, Laurentian has been unable to build the airplane facility in Plattsburgh.
The evidence at trial also demonstrated that Jergensen and Ghosh misappropriated an additional $2.4 million in funds that other businesses had entrusted to them.
Ghosh is scheduled to be sentenced on April 2 in Syracuse.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Union, Missouri Man Sentenced on a Non-Fatal Heroin Overdose ChargeRead the Press Release
St Louis, MO – Rickey Dee McGregory, 37, Union, Missouri, was sentenced to 78 months in prison for distributing heroin to another person causing a non-fatal overdose.
According to court documents, on February 9, 2016, members of the Franklin County Sheriff’s Department were investigating a non-heroin overdose. The victim of the overdose told a deputy that she obtained the heroin from Rickey Dee McGregory. Investigators went to McGregory’s residence where they found items consistent with the distribution of heroin. He admitted that he gave the victim the heroin which caused her overdose.
McGregory pled guilty in October to one felony count of distributing heroin and appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by the Franklin County Sheriff’s Department.
U.S. Attorneys Jay Town, Richard Moore and Donald Cochran to Speak at Friday Symposium at Alabama Law SchoolRead the Press Release
TUSCALOOSA – U.S. Attorney Jay E. Town will be among current and former U.S. Attorneys visiting the University of Alabama School of Law on Friday to discuss the role lawyers play in government.
The law school’s symposium, “The Role of Lawyers in Good Government,” will be from 8:30 a.m. to 1:30 p.m. in Room 287 of McMillan Lecture Hall on the University of Alabama campus.
Town will participate with current U.S. Attorneys Richard W. Moore of the Southern District of Alabama and Donald Q. Cochran of the Middle District of Tennessee in the first of the symposium’s three panels. Former Middle District of Alabama U.S. Attorney Leura Canary, now general counsel for the Retirement Systems of Alabama, will moderate the panel in which members will discuss their role as the chief federal law enforcement official in their respective districts.
“It is an honor to appear alongside my colleagues at the University of Alabama Law School,” Town said. “I think there is great benefit to those learning the law to have former and current United States Attorneys gather to discuss issues in criminal justice. I know I speak for all of us when I thank my predecessor for providing this platform and organizing such a first class symposium.”
Former Northern District of Alabama U.S. Attorney Joyce White Vance, now a Distinguished Visiting Lecturer in Law at the UA law school, will moderate the day’s second panel, which will address the role of lawyers as executive agency leaders. Leslie Proll, former director of the Departmental Office of Civil Rights for the U.S. Department of Transportation, Sarah R. Saldana, former director of U.S. Immigration and Customs Enforcement and former U.S. Attorney for the Northern District of Texas, and David K. Bowsher, a partner with Adams and Reese and former acting general counsel and deputy general counsel at the United States Department of Commerce will comprise the panel.
The third panel will address the role that U.S. Attorneys play in shaping criminal justice policy. Panelists will be Peter F. Neronha, former U.S. Attorney for Rhode Island and a candidate for Rhode Island attorney general, Emily Gray Rice, former New Hampshire U.S. Attorney, now city solicitor for Manchester, N.H., and Greg R. Davis, former Southern District of Mississippi U.S. Attorney, now a partner with Goss & Williams. Meg Reiss, executive director, Institute for Innovation in Prosecution, will moderate the panel.
The event is open to the media. For more information, contact Monique Fields at [email protected] or 205-348-5195.
###
U.S. Attorney Jay Town Providing LE Training on Warrant, Arrest and Trial IssuesRead the Press Release
TUSCALOOSA – U.S. Attorney Jay E. Town will conduct training Friday in Tuscaloosa for west Alabama law enforcement on constitutional protections concerning search warrants, arrests and trials.
The training will be from 1 p.m. to 3 p.m. in the Bedsole Moot Courtroom at the University of Alabama School of Law, 101 Paul Bryant Drive East.
“I consider it my responsibility to provide robust training to prosecutors and members of law enforcement regarding issues we are seeing in both state and federal courts,” Town said. “I consider it an honor to be amongst those who selflessly put themselves in harm’s way for the safety of all Alabamians and those prosecutors who ensure that our worst offenders find a bed in prison. This training will have the net effect of improving our investigations and strengthening our prosecutions at all levels.”
The U.S. attorney will provide an update for police officers, sheriffs and district attorneys on individual protections provided by the 4th, 5th and 6th Amendments of the U.S. Constitution, including matters related to search and seizure and right to counsel.
The 4th Amendment guarantees the right of individuals to be free from unreasonable search and seizure. The 5th Amendment in criminal cases provides the right to a grand jury, forbids double jeopardy, and protects against self-incrimination. The 6th Amendment protects the rights of criminal defendants, including the right to a public trial without unnecessary delay, the right to counsel and the right to an impartial jury. The 6th Amendment also guarantees defendants the right to know the nature of the charges and evidence against them, and who their accusers are.
The training is for law enforcement only and will be closed to the media. Town will be available to the media before the training, between 12:30 p.m. and 1 p.m., outside the moot courtroom.
For more information, contact Peggy Sanford at [email protected] or 205-244-2020, or Stacy Crane at [email protected], or 205-244-2015.
###
Two Men Convicted Following Trial Related to Extortion/Kidnapping PlotRead the Press Release
Fort Worth, Texas – Following a trial before U.S. District Judge Reed O’Connor, two men have been convicted for their role in an extortion and kidnapping scheme that occurred in Fort Worth in October 2017, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Nygul Anderson, 19, and Albert Gonzalez, 18, were each convicted of one count of a conspiracy to use an interstate facility to commit a travel act violation. Currently, they each face a maximum penalty of five years in prison and a fine of $250,000. Judge O’Connor reserved ruling on the two remaining counts, following the one-day bench trial.
According to the evidence presented at trial and the documents filed in this case, on September 22, 2017, a victim began receiving threatening calls from an unrecognizable Mexican telephone number. The caller stated he had kidnapped the victim’s two brothers in Rioverde, San Luis Potosi, Mexico and demanded $300,000 or they would be killed. The next day the ransom demand was lowered to $40,000 and then again to $20,000. Instructions were given to deliver the money, once the money was delivered the caller disclosed the location of the brothers and they were found tied up in a motel room in Rioverde, San Luis Potosi, Mexico.
On September 29, 2017, the same victim received another call from the same Mexican telephone number demanding an additional $100,000 or else they would kidnap the brothers again and kill them. The deadline for the second ransom drop was Friday, October 13, 2017.
On October 13, 2017, the kidnappers in Mexico and the victim agreed to a location at a Home Depot in Fort Worth for the money drop. At approximately 4:30 p.m., a controlled money drop was made at the agreed upon meeting location.
Shortly thereafter, four individuals – Anderson, Gonzalez, Fernando Cabrera (who previously pled guilty), and a 17 year-old minor – were arrested as they attempted to collect the ransom money.
During trial, the government proved that these four individuals believed that they were collecting $20,000 in unlawful proceeds. The four conspirators had met in McAllen, Texas, and then drove to Houston, then to Dallas, and then to Fort Worth in an attempt to collect the money. These four conspirators communicated with other conspirators in Mexico during the trip about the location of the money pick, the amount of money to be retrieved, and precautions that should be taken to avoid detection.
The FBI and the North Richland Hills Police Department investigated the case. Assistant U.S. Attorneys P.J. Meitl and Chris Wolfe prosecuted.
# # #
Two Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On February 28, 2018 a federal grand jury in the District of Puerto Rico returned an indictment against two defendants charged with conspiracy to import a controlled substance, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Caribbean Corridor Strike Force (CCSF) is in charge of the investigation, with the U.S. Coast Guard Investigative Services as the lead agency, and the collaboration of Customs and Border Protection, Caribbean Air and Marine Branch (CAMB) Marine Patrol Aircraft (MPA).
The indictment alleges that on or about February 20, 2018, defendants Jamaico Jedi, a.k.a. “Jan Michael Jedi”, and Rafael Britto Paulino, a.k.a. “Rafael Britto/Raffi Britto/Raffy Britto,” conspired to possess with intent to distribute five (5) kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States; and conspired to import five (5) kilograms or more of cocaine to Puerto Rico
The defendants are also facing one charge of conspiracy to destroy property subject to forfeiture. The defendants were navigating a 33ft “yola-type” vessel when agents from the U.S. Coast Guard detained them approximately four nautical miles from Rincon in Puerto Rico. The defendants threw overboard square objects that the USCG crewmembers identified as bales of suspected illegal narcotics. Upon further investigation, cocaine was found to be present both on the surface of the vessel and the defendants’ hands. Defendants are also facing a charge of attempted improper entry into the United States.
Assistant U.S. Attorney Laura Montes and Special Assistant U.S. Attorney Sean R. Gajewski are in charge of the prosecution of the case. If convicted, the defendants face a minimum sentence of 10 years up to life in prison for the drug conspiracy charges. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
# # #
Two Executives Arrested for Pump and Dump Securities Fraud SchemeRead the Press Release
Dennis Mancino, the President and Chief Executive Officer of HD View 360, Inc. (“HDVW”) and William Hirschy, the Chief Executive Officer of WT Consulting Group, LLC, were arrested yesterday on charges that they conspired to commit securities fraud by manipulating the price and trading volume of HDVW, a publicly-traded company that purported to distribute and install security surveillance systems. The defendants are scheduled to make their initial appearances this afternoon in the Southern District of Florida at the federal courthouse in Miami.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged in the complaint, the defendants engaged in a classic pump and dump designed to defraud the investing public and make millions of dollars for themselves by manipulating the price and volume of a publicly traded stock,” stated United States Attorney Donoghue. “The charges announced today demonstrate the commitment of this Office, together with our law enforcement partners, to protecting the investing public by prosecuting pump and dump fraudsters.” Mr. Donoghue thanked the Securities and Exchange Commission, both the New York Regional Office and the Washington, D.C. Office, for their significant cooperation and assistance during the investigation.
“As alleged, Mancino and Hirschy tricked their victims into investing in HDVW under false pretenses, profiting from an orchestrated loss to those who unwittingly participated in this scheme,” stated FBI Assistant Director-in-Charge Sweeney. “People have the right to trade in an uncorrupted market, and today’s charges are proof of the FBI’s continued determination to root out those who unlawfully interfere with this process.”
According to court filings, between July 2017 and February 2018, Mancino and Hirschy engaged in a scheme in which they agreed to artificially control the price and trading volume of shares in Mancino’s company, HDVW. As part of the scheme, the defendants conspired to “pump” HDVW’s stock price by executing fraudulent trades and having HDVW issue weekly press releases and then, once HDVW’s stock price had increased, to “dump” the stock for a multi-million dollar profit. The defendants further agreed to pay kickbacks to stock brokers who would execute manipulative trades designed to increase the price and trading volume of HDVW’s stock. In furtherance of the scheme, the defendants executed numerous fraudulent matched trades designed to create the false appearance that HDVW’s stock price had risen as a result of genuine market demand.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis, Michael T. Keilty and David Gopstein are in charge of the prosecution.
The Defendants:
DENNIS MANCINO
Age: 46
Residence: Miami, FloridaWILLIAM HIRSCHY
Age: 41
Residence: Ocala, FloridaE.D.N.Y. Docket No. 18-MJ-184
Tickfaw Man Pleads Guilty to Possession of Child PornographyRead the Press Release
VERNON SWEENEY, JR. (“SWEENEY”), age 52, of Tickfaw, Louisiana, entered a plea of guilty today for possession of child pornography, announced United States Attorney Duane A. Evans.
On October 12, 2017, law enforcement officers with the Louisiana State Police and the U.S. Department of Homeland Security, Homeland Security Investigations, arrested SWEENEY during the execution of a state search warrant at his Tickfaw home after finding that SWEENEY was in possession of several items, including a laptop computer, thumb drives and cellular phones that contained images depicting the sexual victimization of prepubescent children.
Court records also revealed that SWEENEY was previously convicted in Tangipahoa Parish Criminal District Court for pornography involving juveniles on August 1, 2012. Due to his prior conviction, if convicted, SWEENEY faces a mandatory minimum penalty of ten (10) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine.
Sentencing will be held on July 12, 2018 before U.S. District Judge Eldon E. Fallon.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations and the Louisiana State Police in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Texas Man Sentenced to Three Years in Prison for Defrauding Immigrants by Claiming He Could Provide Legal Status for MoneyRead the Press Release
A 50-year old El Paso, Texas man was sentenced today in U.S. District Court in Seattle to three years in prison and three years of supervised release for his scheme to defraud immigrants who he scammed out of more than $400,000, announced U.S. Attorney Annette L. Hayes. ALEJANDRO GURANY, collected thousands of dollars from immigrants across the U.S. after telling them he worked for a government immigration office and could provide the immigrants with legal status for a fee. GURANY was never employed by a federal immigration agency. Law enforcement identified more than 30 victims in Washington and Ohio. GURANY was ordered to pay them $140,550 in restitution.
“This defendant preyed on vulnerable people, exploiting their fear of deportation to line his pockets with their hard-earned wages,” said U.S. Attorney Hayes. “He stole not only their money, but their American dream of education and a better life for themselves and their children.”
According to records in the case, between at least December 2011 and March 2015, GURANY pretended to be an employee of the United States and told immigrants he could get them legal status in the U.S. in exchange for money. GURANY traveled to SeaTac, Washington, and met with immigrants at an airport hotel. GURANY took personal identifying information, including photographs and fingerprints from the immigrants seeking green cards or citizenship. Some of the immigrants paid GURANY thousands of dollars believing he would provide them legal status. When no legal status was provided, the victims were afraid to complain about GURANY, since he had all their personal information and they believed he could get them deported.
Judge Robert S. Lasnik accepted the defendant’s claim that Mexican cartels threatened him and his family, demanding that he pay them money. But added that such a claim does not excuse his conduct. “It was a very insidious and awful crime that Mr. Gurany committed. You cannot justify it by saying ‘I need to protect my family’ and then preying on other families.”
“Unscrupulous immigration practitioners not only exploit the trust of their often-unwitting victims,” said Shawn Fallah, resident agent in charge for ICE’s Office of Professional Responsibility, “but by filing fraudulent immigration applications, they create security vulnerabilities and compromise the integrity of our legal immigration system. We will continue to work tirelessly with our law enforcement counterparts to investigate criminals and imposters who manipulate and exploit the system for their own personal gain and see that they are brought to justice.”
The U.S. Immigration and Customs Enforcement Office of Professional Responsibility (ICE OPR) received information from a detainee in 2013 that GURANY was posing as an immigration official. Law enforcement began a financial investigation that revealed the extent of the fraud. The investigation revealed $412,775 had been paid in cash or funneled into GURANY’s bank accounts from Washington, Colorado, California, Arizona, Wyoming, Oregon, and New Mexico. Knowing of the cash payments, and the approximate dollar figures GURANY demanded, investigators believe the number of victims is likely far more than the 30 they have been able to identify.
The case was investigated by U.S. Immigration and Custom Enforcement’s Office of Professional Responsibility. The case is being prosecuted by Assistant United States Attorney Nicholas Manheim.
Tampa Woman Sentenced to More Than Four Years in Prison for Tax FraudRead the Press Release
Tampa, Florida – United States District Judge Elizabeth Kovachevich today sentenced Samika Garcia (39), formerly of Riverview, to four years and three months in federal prison on one count of wire fraud and one count aggravated identity theft in connection with income tax fraud. As part of her sentence, she was also ordered to pay restitution to the Internal Revenue Service. Garcia pleaded guilty to these charges on November 15, 2017.
According to court documents, in February and March 2014, Garcia electronically filed false and unauthorized tax returns in other peoples’ names from a laptop computer, claiming fraudulent tax refunds that were then deposited onto debit cards, in an amount totaling over $192,000. In doing so, Garcia unlawfully used those individuals’ personally identifying information, and kept track of this information in detailed ledgers at her residence.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
State Senator Pleads Guilty to Conspiracy and Theft ChargesRead the Press Release
A state senator pleaded guilty today to conspiracy and theft crimes, announced United States Attorney Matthew Schneider.
Joining Schneider in the announcement were Jeffery E. Peterson, Acting Special Agent in Charge, Detroit Division of the FBI and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
Pleading guilty was Bertram Johnson, Jr., 44, of Highland Park, Michigan
According to court records, from approximately March 2014 through January 2015, Johnson, Jr., a Senator for the State of Michigan, conspired to commit theft, and did commit theft, of monies under the care, custody, and control of the State of Michigan.
Johnson borrowed thousands of dollars in cash from an unnamed co-conspirator, and later placed that co-conspirator on the public payroll as a member of his staff, knowing that the co-conspirator was a “ghost employee” who contributed no work on behalf of Johnson’s staff. The indictment alleges that Johnson placed this “ghost employee” on the public payroll solely to pay off Johnson’s personal loan debt, and that the ghost employee was paid over $23,000 in taxpayer money.
“Public officials, especially those elected by the people, cannot treat the people’s money as their own,” stated United States Attorney Schneider. “The defendant in this case treated taxpayer money as his own, to repay his personal debt. Such an egregious abuse of power will not be tolerated.”
“This investigation and subsequent plea reinforces the FBI’s commitment to hold public officials accountable by exposing those who engage in criminal conduct at taxpayer expense,” said Jeffery E. Peterson, Acting Special Agent in Charge of FBI Detroit. “We ask that anyone who has information regarding similar actions by any public official contact Detroit or their nearest FBI field office.”
“Senator Johnson made a conscious decision to violate the trust and confidence of the constituents that he was elected to represent,” stated Special Agent in Charge Manny J. Muriel, IRS Criminal Investigation. “As today’s guilty plea shows, IRS-CI, along with our law enforcement partners will continue to hold those who use fraud and deceit to line their pockets by stealing from our nation’s taxpayers accountable.”
Johnson faces a statutory maximum penalty of ten years in prison and is scheduled to be sentenced on August 7, 2018.
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Lee Carlson
Six People Sentenced to Federal Prison for Fraud that Targeted Elderly VictimsRead the Press Release
Six people from the Dubuque, Iowa, area were sentenced on March 1, 2018, to federal prison for participating in a fraud that victimized more than 250 elderly victims across the United States.
Evidence at the sentencing hearings and prior court hearings showed that Tobey Hines, Tiffany Reynolds, Joshua Willis, Payton McCarville, Morgan Cornell, and Paul Chase were all involved in a scheme to defraud victims, who were generally elderly, around the country. All six previously admitted that while they never made calls to victims, other individuals involved in the scheme called victims on the phone and told these victims that a relative was in jail. The caller would then ask the victims to wire money via Western Union or Money Gram to get the relative released. They further admitted that the money was being wired to various participants in the fraud who would pick up the wire transfers. Each admitted that they were participants in and around Dubuque who received wire transfers from the victims. Hines and Reynolds also admitted they sent the proceeds of the fraud via wire transfer to other participants of the scheme located in the Dominican Republic. The scheme victimized more than 250 victims across the country. These victims lost more than $750,000 as a result of the fraud.
“The perpetrators of this scheme shamelessly preyed upon vulnerable individuals in our society by exploiting their generosity,” said United States Attorney Peter E. Deegan, Jr. “We will continue to work with our law enforcement partners to hold accountable those who seek to victimize and financially exploit the elderly.”
Tobey Hines, age 33, from Dubuque, Iowa, was sentenced to 33 months in federal prison after a October 19, 2017, guilty plea to one count of wire fraud. At his sentencing hearing, the judge found Hines had victimized at least 17 individuals and was responsible for nearly a $120,000 in loss. Between January 2016 and April 2016, Hines sent $119,985 via wire transfer to the Dominican Republic as part of the scheme. Hines was also ordered to pay $47,059.94 in restitution to the victims.
Tiffany Reynolds, age 33, from Dubuque, Iowa, was sentenced to 19 months in federal prison after a November 15, 2017, guilty plea to one count of wire fraud. At her sentencing hearing, the judge found that Reynolds was responsible for the losses of 15 victims, totaling nearly $40,000 in losses. In sentencing her, the judge also noted Reynolds’s extensive criminal history, including prior convictions for OWI and assault. The judge also ordered her to pay $37,587 in restitution to the victims.
Joshua Willis, age 21, from Dubuque, Iowa, was sentenced to 23 months in federal prison after a November 15, 2017, guilty plea to one count of wire fraud. At his sentencing hearing, the judge found that Willis was responsible for the losses of 26 victims, totaling more than $60,000 in losses. In sentencing Willis, the judge also noted his extensive criminal history, including multiple prior convictions for assault. The judge also ordered him to pay $64,302.80 in restitution to the victims.
Payton McCarville, age 23, from Dubuque, Iowa, was sentenced to 8 months in federal prison after a November 17, 2017, guilty plea to one count of wire fraud. At her sentencing hearing, the judge found that McCarville was responsible for the losses of 13 victims, totaling nearly $40,000 in losses. The judge also ordered her to pay $39,369.31 in restitution to the victims.
Morgan Cornell, age 21, from Dubuque, Iowa, was sentenced to 14 months in federal prison after a November 16, 2017, guilty plea to one count of wire fraud. At her sentencing hearing, the judge found that Cornell was responsible for the losses of 15 victims, totaling over $30,000 in losses. The judge also ordered her to pay $33,129.60 in restitution to the victims.
Paul Chase, age 34, from Dubuque, Iowa, was sentenced to 15 months in federal prison after a November 20, 2017, guilty plea to one count of wire fraud. At his sentencing hearing, the judge found that Chase was responsible for the losses of 14 victims, totaling more than $40,000 in losses. In sentencing Chase, the judge also noted his extensive criminal history, including multiple prior convictions for OWI. The judge also ordered him to pay $42,152.46 in restitution to the victims.
The prosecutions are part of the Elder Justice Initiative of the Department of Justice. In June 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/.
All four individuals were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Each must also serve a three-year term of supervised release after being released from prison. There is no parole in the federal system.
Hines, Reynolds, Willis, McCarville, and Cornell are being held in the United States Marshal’s custody until each can be transported to a federal prison. Chase was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Department of Homeland Security - Investigations and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1038.
Follow us on Twitter @USAO_NDIA.
Six Individuals and Four Corporate Defendants Indicted in $50 Million International Securities Fraud and Money Laundering SchemesRead the Press Release
A multi-count indictment was unsealed yesterday, in federal court in Brooklyn, against Panayiotis Kyriacou, Arvinsingh Canaye, Adrian Baron, Linda Bullock, Matthew Green, and Aristos Aristodemou; Beaufort Securities Ltd (“Beaufort Securities”), a brokerage firm located in London, United Kingdom; Beaufort Management Services Ltd (“Beaufort Management”), an off-shore management company located in Mauritius; Loyal Bank Ltd (“Loyal Bank”), an off-shore bank with offices in Budapest, Hungary and Saint Vincent and the Grenadines; and Loyal Agency and Trust Corp. (“Loyal Agency”), an off-shore management company located in Saint Vincent and the Grenadines.
The charges include conspiracy to commit securities fraud and money laundering conspiracy. Canaye was arrested yesterday and is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged in the indictment, the defendants engaged in an elaborate multi-year scheme to defraud the investing public of millions of dollars through deceit and manipulative stock trading, and then worked to launder the fraudulent proceeds through off-shore bank accounts and the art world, including the proposed purchase of a Picasso painting,” stated United States Attorney Donoghue. “The charges announced today reflect that this Office, together with our law enforcement partners, is committed to holding accountable those who defraud investors, regardless of the complex schemes they use to hide their ill-gotten gains.” Mr. Donoghue thanked the U.S. Securities and Exchange Commission (SEC), both the New York Regional Office and the Washington, D.C. Office, the City of London Police, the U.K.’s Financial Conduct Authority and the Hungarian National Bureau of Investigation for their significant cooperation and assistance during the investigation.
“As alleged, in a series of unscrupulous and illegal trading practices, the defendants contrived a scheme to defraud investors of U.S. publicly traded companies by manipulating stock prices and masking the true ownership of their clients’ financial interests,” stated Assistant Director-in-Charge Sweeney. “In order to discreetly receive their illegal proceeds, the defendants focused their efforts on laundering the money through a variety of means, including the art world, which they believed was a market free from direct regulation. Bringing to justice securities fraudsters and money laundering facilitators who engage in these types of schemes is and will remain a priority for the FBI and our law enforcement partners worldwide.”
“Since the Foreign Account Tax Compliance Act has been enacted, the financial expertise of our criminal investigators is needed now more than ever in this global economy,” stated IRS-CI Special Agent-in-Charge Robnett. “These allegations outline an intricate scheme to obscure beneficial ownership and launder illicit proceeds. This behavior harms the financial world abroad and here at home.”
Securities Fraud and Money Laundering Scheme
As alleged in the indictment, between March 2014 and February 2018, Beaufort Securities, Beaufort Management, and managers Kyriacou and Canaye, collectively the “Beaufort Defendants,” together with their co-conspirators, engaged in a scheme to defraud investors and potential investors in various U.S. publicly traded companies by concealing the true ownership of various U.S. publicly traded companies and manipulating the price and trading volume in the stocks of those companies.
Beginning in or about October 2016, an Undercover Agent contacted Kyriacou and stated that he was interested in opening brokerage accounts at Beaufort Securities from which he could execute trades in several multi-million dollar stock manipulation deals.
In furtherance of the scheme, the Beaufort Defendants opened brokerage accounts for their clients in the names of off-shore shell companies with nominee shareholders and directors, and then conducted manipulative trading of stocks of U.S. publicly traded companies listed on U.S. over-the-counter exchanges. Beaufort Securities facilitated at least ten “pump and dump” schemes involving U.S. publicly traded stocks, generating over $50 million in proceeds for its clients. Notably, Beaufort Securities had affirmed to the Financial Conduct Authority (“FCA”) in the United Kingdom in July 2016 that it had taken remedial measures to correct deficiencies in the firm’s financial crime controls and anti-money laundering processes.
Additionally, between January 2011 and February 2018, the Beaufort Defendants; Loyal Bank; Loyal Agency; Baron, the Chief Business Officer of Loyal Bank and a Director of Loyal Agency; and Bullock, the Chief Executive Officer of Loyal Bank and a Director of Loyal Agency, together with their co-conspirators, devised and engaged in a scheme to launder securities fraud proceeds for their clients. To facilitate this scheme, Beaufort Securities transferred funds to corporate bank accounts at Loyal Bank opened in the names of off-shore shell companies that were controlled by the bank’s clients. Loyal Bank then provided debit cards to its clients to withdraw funds from those accounts in an untraceable manner to hide the source of the money and facilitate ongoing securities fraud.
Money Laundering Through Purchase and Sale of Art
Separately, between October 2017 and February 2018, Kyriacou; Aristodemou, the uncle of Kyriacou; and Green, the owner of an art gallery in London, United Kingdom, together with their co-conspirators, agreed to launder £6.7 million, the equivalent of over $9 million dollars, which the Undercover Agent represented to be the proceeds of securities fraud. After initially proposing the use of real estate investments to launder the funds, the co-conspirators devised a scheme to “clean up the money” through the purchase and subsequent sale of art. Aristodemou described the art business as the “only market that is unregulated,” and that art was a profitable investment because of “money laundering.” The defendants proposed the Undercover Agent could purchase from Green a painting by Pablo Picasso entitled “Personnages, Painted 11 April 1965,” and provided paperwork for the painting’s purchase. The money laundering scheme was halted prior to the transfer of ownership of the painting.
The FCA also took regulatory action yesterday against Beaufort Securities and a related clearing firm, including halting all regulated activities and initiating insolvency proceedings against both firms. The SEC filed a civil complaint today against Beaufort Securities and Kyriacou
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis, Michael T. Keilty and David Gopstein are in charge of the prosecution. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
The Defendants:
PANAYIOTIS KYRIACOU, also known as “Peter Kyriacou”
Age: 26
Residence: London, EnglandARVINSIGH CANAYE, also known as “Vinesh Canaye”
Age: 30
Residence: MauritiusADRIAN BARON
Age: 63
Residence: Budapest, HungaryLINDA BULLOCK
Age: 57
Residence: St. Vincent/GrenadinesARISTOS ARISTODEMOU
Age: 49
Residence: London, EnglandMATTHEW GREEN
Age: 50
Residence: London, EnglandBEAUFORT SECURITIES LTD
London, EnglandBEAUFORT MANAGEMENT SERVICES LTD
MauritiusLOYAL BANK LTD
Budapest, Hungary and St. Vincent/GrenadinesLOYAL AGENCY AND TRUST CORP.
St. Vincent/GrenadinesE.D.N.Y. Docket No. 18-CR-102 (ENV)
Six Former Employees of Chicago Post-Secondary School Indicted for Allegedly Swindling Federal Financial Aid Program out of MillionsRead the Press Release
CHICAGO — Six former employees of a non-profit Chicago post-secondary education institute schemed to enroll fake students in classes as part of a conspiracy to swindle federal financial aid programs out of millions of dollars, according to an indictment returned in federal court in Chicago.
The six defendants were employed at the Chicago campus of the Center for Employment Training, a California-based institution of post-secondary, non-degree, vocational and technical education with campuses throughout the country. From 2005 to 2013, the defendants applied for and obtained federal grants and loans for students who were ineligible to receive the funds, the indictment states. One of the purported students was marked present at CET classes even though the student was deceased at the time, the indictment states.
The scheme caused the U.S. Department of Education to disburse to CET millions of dollars in fraudulent financial aid, the indictment states.
The indictment was returned Thursday. It charges the defendants with one count of conspiracy to fraudulently obtain federal financial assistance, one count of fraudulently obtaining federal financial assistance, and three counts of wire fraud. The defendants are MARIE PICKETT, 59, of Chicago; JANIE BLAKENEY, 63, of Chicago; DEBORAH WILLIAMS, 58, of Chicago; JENNY MORALES, 36, of Cicero; HEATHER SMITH, 43, of Cicero; and TAMAURA BALARK, 45, of Chicago. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Thomas D. Utz, Jr., Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office. The government is represented by Assistant U.S. Attorney John Mitchell.
According to the charges, Pickett served as the Director of CET’s Chicago campus; Blakeney was the Admissions Advisor; Williams and Morales were Financial Aid Officers; and Smith and Balark were instructors in the Medical Assistance Program. As part of the conspiracy, some of the defendants created and furnished to the Department of Education phony Free Application for Federal Student Aid (FAFSA) applications on behalf of purported students who were not eligible to receive financial aid because they had not graduated from high school or received an equivalency certificate, the charges state. For one purported student, the conspirators created a fictitious diploma that fraudulently alleged the student had graduated from a Chicago public high school, the indictment states. The fictitious diploma was then placed in the student’s CET file in an effort to meet the Department of Education’s requirements for financial aid, according to the indictment.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in prison, while the financial assistance fraud counts carry a maximum sentence of five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Seven Set to Appear in Court for Their Alleged Involvement in Violent Crimes Throughout Houston AreaRead the Press Release
HOUSTON – A grand jury in Houston has returned three separate indictments charging a total of eight Houston men with robbery and using firearms during these crimes of violence, announced U.S. Attorney Ryan K. Patrick. The indictments represent a joint initiative aimed at reducing violent takeover robberies of local businesses by organized crews of armed robbers.
The eight men had been in state custody on related charges. All but one - Joe Gutierrez, 19 - are set to appear today at 10:00 before U.S. Magistrate Judge Dena Palermo. The separate, but similar indictments were all returned Feb. 21, 2018.
Those charged in the first case include Gutierrez, Derrick Isaiah Stewart, 19, and Patrick Earl Cooper Jr., 20. A father and son are charged in a separate indictment - Marcus Hargove, 45, and Christopher Michael Carmon, 26, while the remaining three - Deamonta Frederick Taylor, 22, Joshua Marquise Turner, 22, and Kevin Eugene Harrison, 22 – are charged together in the third case.
The first indictment alleges four specific robberies of local pawn shops, during which the defendants stole firearms, cash and jewelry. Stewart, Gutierrez and Cooper are charged with aiding and abetting interference with commerce by robbery and aiding and abetting use, brandishing and discharging a firearm during and in relation to a crime of violence. Specifically, on Sep. 28, 2017, Cooper and others allegedly robbed the Cash America Pawn at gunpoint on 6015 Lyons Street, during which time a firearm was discharged. Six days later, Stewart and others allegedly robbed the Cash America Pawn at gunpoint on 5219 Airline Drive. The indictment alleges that later in October, Stewart and Cooper joined forces to rob the Cash America Pawn at 8223 North Freeway at gunpoint. Cooper, Stewart and Gutierrez were finally captured and arrested Oct. 31, 2017, after allegedly robbing the Cash America Pawn at 1816 North Durham Street at knifepoint.
Hargove and his son - Carmon - are charged in the second case with aiding and abetting interference with commerce by robbery and aiding and abetting use and brandishing a firearm during and in relation to a crime of violence. Specifically, they are suspected in multiple armed robberies of MetroPCS stores which occurred between October and November 2017. The son is charged in three robberies, two of which were allegedly committed with his father. The indictment alleges that during each of the robberies, they took turns going into the store and ordered employees to give them cash from the cash register.
In the final case, Taylor, Turner and Harrison are charged in connection with a spree of commercial robberies occurring in November 2017. Taylor is charged with five counts of interference with commerce by robbery and five counts of aiding and abetting use and brandishing a firearm during and in relation to a crime of violence, while Turner and Harrison are charged with one count each of these crimes. Between Nov. 2-8, 2017, Taylor is alleged to have robbed three different MetroPCS stores and one Subway restaurant in the Northwest Houston area, while Taylor, Turner and Harrison allegedly robbed a Cricket Wireless store in Northwest Houston on Nov. 9, 2017. Taylor, Turner and Harrison were apprehended Nov. 9, 2017, immediately after the commission of their last robbery, according to the indictment.
If convicted, the men face a sentence of up to 20 years on the robbery charges. The firearms offenses carry a minimum of seven years for the first conviction, while an additional conviction carries a 25-year minimum sentence. Those charges must also be served consecutively to any other sentence imposed. They also face up to $250,000 in fines for any of the offenses.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department were involved in all three of the investigations. The Harris County Precinct One Constable’s Office assisted with the Cash America robbery investigations, while the Harris County Sheriff’s Office and Texas Department of Public Safety were the co-investigators on the other two matters.
Assistant U.S. Attorneys Heather Winter, Jennie Basile and Richard Hanes are prosecuting the three cases, respectively.
The indictments are an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The cases are brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In late 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Port Allen Man Charged with Drug TraffickingRead the Press Release
U.S. Attorney Duane A. Evans announced that DEVONTA DUNN, age 23 of Port Allen, was indicted by a federal grand jury.
According to the indictment, DUNN possessed with intent to distribute five hundred grams or more of a mixture containing methamphetamine. If convicted, DUNN faces a term of imprisonment of at least 10 years and up to life, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration. Assistant United States Attorney Jeffrey Sandman is in charge of the prosecution.
Pittsfield Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Pittsfield man was charged in federal court in Springfield yesterday with failing to register as a sex offender.
Anthony Robertson, 36, was indicted on one count of failing to register as a sex offender. Robertson was arrested and originally charged by complaint in February 2018; he has been detained since.
According to court documents, Robertson is required to register as a sex offender as a result of two prior convictions: in 2001, second degree rape; and in 2006, third degree rape. In 2014, Robertson was convicted in a New York state court of failure to register as a sex offender.
In approximately May 2017, Robertson traveled from New York to Pittsfield, Mass., where he established residence. In June 2017, a New York detective informed Robertson that he was wanted in New York for failing to register as a sex offender and was advised to turn himself in. Robertson neither turned himself in, nor registered as a sex offender in Massachusetts until after he was arrested on Aug. 25, 2017, on unrelated drug and firearm charges.
The charge of failure to register provides for a sentence of no greater than 10 years in prison, up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pasadena Police Lieutenant Charged in Federal Indictment with Illegal Sales of ‘Off-Roster’ Guns and Other Weapons OffensesRead the Press Release
LOS ANGELES – A lieutenant in the Pasadena Police Department was taken into custody this morning on federal charges related to the illegal sale of approximately 100 firearms.
Vasken Kenneth Gourdikian, 48, of Sierra Madre, who is currently on administrative leave, self-surrendered this morning to federal authorities.
Gourdikian was named by a federal grand jury yesterday in a four-count indictment that accuses him of engaging in the business of dealing in firearms without a license, making false statements on ATF Forms, and possessing an unregistered short-barreled rifle.
The federal indictment charges that, from March 2014 through February 2017, Gourdikian sold over 100 firearms without a license. Gourdikian allegedly used his official status as a police officer to purchase firearms that were not available to the general public, and then sold the “off-roster” firearms through third-party transfers to members of the public, according to the indictment.
Gourdikian’s status as a police officer also enabled him to purchase more than one handgun in a 30-day period. Moreover, upon obtaining the requisite authorizations from his employer, Gourdikian’s status as a police officer allowed him to take possession of a firearm before the otherwise applicable ten-day waiting period lapsed.
“In these days of escalating gun violence, it is important to enforce our firearms laws vigorously,” said United States Attorney Nicola T. Hanna. “Those who sell guns illegally need to be held accountable, especially those who abuse a position of public trust.”
Gourdikian is also charged with twice having falsely certified on ATF forms that he was the actual buyer of a firearm, when at the time of the certification he had already agreed to sell the firearm to another person.
Special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a federal search warrant at Gourdikian’s residence in Sierra Madre in 2017 and seized approximately 62 firearms, including an unregistered short-barreled rifle. The indictment further charges Gourdikian with illegally possessing this unregistered weapon.
“This investigation started through routine analysis of multiple sales and trace reports by ATF’s LA Crime Gun Intelligence Center,” said Bill McMullan, Special Agent in Charge of the ATF Los Angeles Field Division. “As alleged in the indictment, Mr. Gourdikian used his position as a law enforcement officer to buy firearms from gun dealers that the general public could not. He then repeatedly sold those firearms at a profit. Bringing a case against a law enforcement officer is never pleasant, but we hold public safety and a commitment to justice above everything. We are grateful for the Pasadena Police Department’s cooperation in this case.”
Gourdikian is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If convicted of the charge of dealing firearms without a license, Gourdikian would face a statutory maximum sentence of five years. Convictions of making a false statement and possessing an unlicensed firearm each carry a maximum sentence of ten years. If convicted on all four counts, Gourdikian would face a statutory maximum sentence of thirty-five years in federal prison.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorneys Jennifer Chou of the Violent & Organized Crime Section and Elisa Fernandez of the Public Corruption & Civil Rights Section.
Owner and Operator of Carlsbad Smoke Shop Pleads Guilty to Sale of Drug Paraphernalia ChargesRead the Press Release
ALBUQUERQUE – Leon Conaway, 56, of Carlsbad, N.M., pled guilty today in federal court in Las Cruces, N.M., to charges arising out of the sale and offering for sale of drug paraphernalia. Conaway’s plea agreement recommends a sentence of three years of probation.
Conaway, the owner and operator of Twisted Roots, a smoke shop in Carlsbad, was arrested in Jan. 2018, on a two-count indictment charging him with selling and offering for sale drug paraphernalia on May 16, 2016 and July 12, 2016, in Eddy County, N.M.
During today’s proceedings, Conaway pled guilty to the charges in the indictment. In entering his guilty plea, Conaway admitted that on May 16, 2016, he sold three glass pipes that are designed for smoking methamphetamine to an undercover law enforcement agent. Conaway also admitted that on May 16, 2016 and June 12, 2016, he had a large quantity of drug paraphernalia displayed for sale at his business, Twisted Roots.
In his plea agreement, Conaway also admitted that on July 12, 2016, federal law enforcement agents seized the following items that Conaway displayed for sale at Twisted Roots: approximately 1,127 assorted smoking instruments, including bongs, glass pipes used for smoking marijuana and glass pipes used for smoking methamphetamine; 17 assorted marijuana grinders; seven roach clips; 22 scales; and a large quantity of jewel bags that are used in the distribution of controlled substances. Conaway admitted that he knew the merchandise he sold and offered for sale at Twisted Roots was likely to be used with illegal drugs.
A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force and is being prosecuted by Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Orlando Man Sentenced to More Than 12 Years for Scheme to Defraud RV Park and Immigration InvestorsRead the Press Release
Jacksonville, FL –U.S. District Judge Timothy J. Corrigan yesterday sentenced Karamchand “Raj” Doobay (44, Orlando) to 12 years and 7 months in federal prison for conspiracy to commit mail and wire fraud related to a scheme to defraud investors in an RV Park, and immigrant investors in a senior citizen facility, both located in Hamilton County. In addition, the Court ordered him to pay restitution to the 85 victim–investors in the amount of $8,663,264.58. Doobay was also ordered to forfeit real property that was used in the commission of the offenses.
Doobay pleaded guilty on January 31, 2017.
According to court documents, Doobay operated business entities in Hamilton County, Florida, through which he acquired a parcel of land located at 7516 SE 113th Boulevard, in Jasper, Florida. From in or about March 2009, through in or about December 2015, he solicited investors to purchase subdivided lots on the land, guaranteeing returns between 9 to 41 percent for investments in RV lots and other lots for sale by his entity (Florida Gateway Resort). Doobay utilized various bank accounts to collect funds for the purchase of RV lots that he purported to sell to investor–purchasers. However, Doobay failed to disclose that he had previously contracted to sell and purportedly sold the same lots to other investors.
Doobay was unable and failed to deliver the RV lots as promised. Despite being unable to deliver titles to the lots, he continued to represent to investors, through 2015, that “clean title is going to be provided” and that the land at Florida Gateway Resort was zoned and planned for an RV resort. Doobay routinely solicited new investor funds to pay previous investors returns while failing to disclose to the new investors that their funds would be used to pay pre-existing investors’ guaranteed returns.
Further, from about May 2011, through May 2016, Doobay conspired to commit wire fraud by promising immigrant investors, who were seeking permanent residence in the United States through the EB-5 Immigrant Investor Program, that he would use their investments for the development, renovation, and/or new construction of Senior Premier Living, a proposed retirement community in Jasper, Florida. Instead, Doobay used a portion of the immigrant investor funds to pay Florida Gateway Resort a small fraction of the promised returns and for his own personal use and enjoyment.
“Having no remorse or sympathy for those he stole from, Doobay continued to defraud victims even after his 2015 arrest,” said FDLE Tallahassee Special Agent in Charge Mark Perez. “I appreciate the efforts of investigators and the U.S. Attorney’s Office in stopping Doobay’s continued hunt for new victims.”
"This case demonstrates the lengths that some criminals will go to target and take advantage of innocent victims," said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division, "but the FBI will work equally hard to hold those criminals accountable and protect their victims both here and abroad."
This case was investigated by the Florida Department of Law Enforcement, Hamilton County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
Omaha Man Sentenced in Fentanyl Trafficking CaseRead the Press Release
Walter J. O’Donohue, III, sentenced for role in drug-related overdoses
Council Bluffs, IA – On February 27, 2018, Walter J. O’Donohue, III, age 35, of Omaha, Neb., was sentenced to 15 years in prison, fined $50,000, and ordered to serve five years of supervised release following his prison term by United States District Court Senior Judge James Gritzner for Conspiracy to Distribute a Fentanyl Analogue that caused death or serious bodily injury, announced United States Attorney Marc Krickbaum.
O’Donohue was part of a drug trafficking organization responsible for receiving and distributing fentanyl analogues obtained from a source in China to individuals in Western Iowa and Eastern Nebraska. The investigation began on June 28, 2015, when law enforcement officers were called to a Carter Lake, Iowa, residence regarding an unresponsive male. Law enforcement found the body of a 20-year old deceased male at the home. Law enforcement also discovered a second male had been transported to a local hospital, and placed on life support, from the same location prior to law enforcement’s arrival.
Subsequent investigation revealed co-defendant Charles Beuterbaugh provided acetyl fentanyl to both victims, which was determined to be the cause of death and the reason for the hospitalization. Beuterbaugh had obtained the acetyl fentanyl through an organization that began distributing fentanyl, or an analogue of fentanyl, in November of 2014 and continued to distribute into April of 2016. Further investigation into the overdose death revealed O’Donohue was responsible for the importation of the acetyl fentanyl ultimately distributed by co-defendant Beuterbaugh.
All members involved in the distribution of the acetyl fentanyl have entered guilty pleas. On October 26, 2017, Senior Judge Gritzner sentenced O’Donohue’s co-defendants, Dustin C. Sullivan, age 27, of Council Bluffs, to 162 months and Cody Lanus, age 31 of Omaha, Neb., to a term of imprisonment of 144 months. Michael David Redmond, Jr., who joined the conspiracy in December of 2015, was previously sentenced by Senior Judge Gritzner to 120 months in prison. Amalia N. Pandis is pending sentencing at a future date.
This investigation was conducted by the Carter Lake Police Department, Pottawattamie County Sheriff’s Office, Council Bluffs Police Department, Southwest Iowa Narcotics Task Force, Omaha Police Department, Iowa Division of Criminal Investigation, Iowa Division of Narcotic Enforcement, United States Postal Inspection Service and United States Drug Enforcement Administration-Nebraska. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
New York Man Pleads Guilty to Cyberstalking Cincinnati VictimRead the Press Release
CINCINNATI – Michael Chan, 34, of Bayside, New York, pleaded guilty in U.S. District Court to cyberstalking.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and University of Cincinnati Police Chief Maris Herold announced the plea entered into before U.S. District Judge Susan J. Dlott.
According to the statement of facts submitted as part of the plea agreement, Chan met a female in 2009 while using online gaming. In 2012, he traveled from New York to Cincinnati to stay at her residence for approximately one week, during which time the victim made clear that the two were just friends and nothing more.
Later in 2012, Chan visited the victim uninvited and left notes throughout her house. He eventually began to text, call and Facebook message the victim all throughout the day and night. The victim then blocked Chan’s phone number and social media accounts, at which point the victim began receiving anonymous calls and texts.
These anonymous messages continued for several more years. At the same time, the victim began receiving deliveries and subscriptions that she did not order.
In 2015, Chan began sending emails to local Cincinnati news media stating a subject was driving from Canada to Cincinnati to sexually assault and murder the victim. Later that year, the victim began receiving harassing and threatening emails. This continued through 2016 and she repeatedly reported the incidents to local authorities.
“Chan’s concerning conduct escalated in March 2017, when he sent a text message to a local detective working on the matter and said that he was coming to a pay a visit to the victim and there was nothing the detective could do about it,” U.S. Attorney Glassman said. “Chan indicated he was coming to Cincinnati to attack the victim on the University of Cincinnati campus. He sent threatening emails to University officials up through August 2017.”
Chan was charged by a federal criminal complaint in August 2017 and indicted by a grand jury in September 2017.
The parties involved in this case have recommended a sentence of 27 months in prison followed by a three-year term of supervised release. Judge Dlott will consider this recommendation at a future sentencing hearing.
U.S. Attorney Glassman commended the investigation of this case by the FBI and University of Cincinnati Police, as well as Assistant United States Attorney Christy L. Muncy, who is representing the United States in this case.
# # #
Morris County, New Jersey, Man Admits Conspiring to Commit Strong-Arm ExtortionRead the Press Release
NEWARK, N.J. – A Kenvil, New Jersey, man today admitted conspiring with a former Middlesex Borough fire inspector to use threats of violence to extort cash payments from the owner of a real estate development company, U.S. Attorney Craig Carpenito announced.
Joseph P. Martinelli, 64, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with conspiring to commit extortion using threats of force, violence, and fear.
According to the documents filed in this case and statements made in court:
From December 2016 through June 2017, Martinelli conspired with Billy A. Donnerstag, 49, of Hackettstown, New Jersey, then a fire inspector for Middlesex Borough and other New Jersey municipalities, to extort the owner and operator of a real estate development and construction company, referred to in the information as “Individual 1,” using threats of physical harm if Individual 1 did not pay Martinelli and Donnerstag thousands of dollars.
Martinelli and Donnerstag agreed that the pretext for demanding money would be that Individual 1 supposedly didn’t pay enough for a property he bought from Martinelli in 2007. In a series of telephone and in-person conversations with Individual 1, Martinelli and Donnerstag demanded money from Individual 1 by suggesting that Individual 1 would be physically harmed by Donnerstag if Individual 1 refused.
Martinelli and Donnerstag obtained $15,000 in cash from Individual 1 over two separate meetings. The cash had been provided by the FBI.
The count of conspiracy to commit extortion carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 12, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Donnerstag remains charged by indictment. The charge and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: Brian N. DiGiacomo Esq., Madison, New Jersey
Monterey Airbus, Inc. Agrees to Ensure Full Accessibility of Airport Shuttle ServiceRead the Press Release
SAN FRANCISCO – Monterey Airbus, Inc. has entered into a settlement agreement with the United States Attorney’s Office to resolve allegations that the Monterey-based company violated Title III of the Americans with Disabilities Act (ADA) by discriminating against customers with disabilities, announced Acting United States Attorney Alex G. Tse. As part of the settlement, Monterey Airbus will take steps to ensure that it provides equivalent service to individuals with disabilities.
Monterey Airbus, a private transportation company with its principal place of business in Monterey, provides airport shuttle service between the Monterey Peninsula, San Francisco International Airport, and San Jose International Airport. Customers may request rides through the company’s on-line reservation system and a Monterey Airbus vehicle stops at pre-determined locations for customers with a reservation. After the U. S. Attorney’s Office conducted an investigation, Monterey Airbus acknowledged that prior to 2017, it did not provide services for passengers who required wheelchair transportation. Monterey Airbus also admitted that from 2005 to 2015 it purchased at least five new 13-passenger vehicles and five new 24-passenger vehicles for use in its services in the San Francisco Bay Area, none of which were readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs.
“Passengers with disabilities are entitled to equal access to the different airport shuttle services that facilitate travel to and from the Bay Area,” said Acting United States Attorney Tse. “With the agreement being announced today, Monterey Airbus has pledged its commitment to ensure individuals with disabilities receive the same service as other passengers. We acknowledge Monterey Airbus’s cooperation throughout this investigation and are glad that we were able to reach this resolution without litigation.”
As a result of the U.S. Attorney’s Office’s investigation and this settlement, Monterey Airbus will make the following changes:
- Operate sufficient readily accessible vehicles to ensure individuals with disabilities receive equivalent service.
- Permit passengers with disabilities, including individuals who use wheelchairs, to book a Monterey Airbus trip either on-line or by phone.
- Conduct ADA training for employees to include instruction on the ADA requirements for private entities operating a transportation system and Monterey Airbus’s policies and practices regarding accommodation of individuals with disabilities.
Assistant U.S. Attorney Rebecca A. Falk is handling the matter on behalf of the U.S. Attorney’s Office for the Northern District of California.
Mexican National Pleads Guilty to Illegal Re-Entry ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Juan Jose Mejia-Contador, age 23, from Mexico pled guilty in federal court in Florence, South Carolina, to Illegal Re-Entry into the United States after deportation, a violation of 8 U.S.C. § 1326(a). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on November 26, 2017, ICE-ERO Officers assigned to the Pacific Enforcement Response Center discovered Mejia-Contador while he was in custody at the J. Reuben Long Detention Center in Horry County on state charges. Immigration records revealed that Mejia-Contador was a native and citizen of Mexico who had previously been deported from the United States on five occasions. Mejia-Contador has never received permission to enter or remain in the United States.
Ms. Drake stated the maximum penalty Mejia-Contador can receive is imprisonment for 2 years and a fine of $250,000.00.
The case was investigated by officers of the ICE-Enforcement and Removal Operations in Charleston, with the assistance of the Conway Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
#####
Mexican Man Sentenced for Immigration OffenseRead the Press Release
United States Attorney Duane A. Evans announced that JORGE GARCIA-HERNANDEZ, age 33, a native of Mexico, was sentenced today after pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Mary Ann Vial Lemmon sentenced GARCIA to time served (10 months), followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on September 15, 2017, GARCIA was found in the United States after having been previously deported from the United States on April 21, 2012.
U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Metropolitan Transportation Authority Employee Admits $5 Million Compounded Medication Prescription SchemeRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man today admitted his role in a scheme to use phony prescriptions for medically unnecessary compounded medications to defraud the Metropolitan Transportation Authority (MTA)’s health insurance plan and other insurers out of $5 million, U.S. Attorney Craig Carpenito announced.
Christopher Frusci, 33, an MTA bus driver, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Frusci admitted that from May 2015 through May 2017, he conspired to defraud health insurance plans, including the MTA’s privately-funded health plan, using fraudulent claims for compounded medications, such as scar creams, pain creams, and metabolic supplements marketed by a company referred to as “Company A” in the information.
In order to secure prescriptions for the compounded medications, Company A and its “sales representatives,” referred beneficiaries to telemedicine physicians who were paid by Company A or its affiliates.
Company A recruited Frusci as a sales representative and instructed him to target individuals with certain health plans, including the MTA’s health plan, that covered compounded medications. Frusci then convinced multiple MTA employees to obtain medically unnecessary medications by paying them monthly cash bribes of approximately $100 to $1,500. In order to increase his profits, Frusci also recruited other individuals to work as sales representatives under him.
As part of his plea agreement, Frusci must forfeit $724,448.73 in criminal proceeds he received for his role in the scheme and pay restitution of at least $5 million. He faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 4, 2018.
“In an era when many Americans worry about securing health insurance for their families, we’ve seen far too many instances where both private and publicly-funded insurance providers are being raided for millions in phony reimbursements on compounded medications,” U.S. Attorney Carpenito said. “Frusci admitted that he and others sought to defraud the MTA health plan and other insurers by recruiting the very people who enjoy that coverage, offering them cash bribes to get medications they didn’t need. His conviction should serve as a warning to those who would exploit their health coverage for financial gain.”
FBI Special Agent in Charge Timothy Gallagher said, "Christopher Frusci treated his own employer's health insurance plan of Metropolitan Transportation Authority as a vehicle to line his own pockets when he engaged in an elaborate scheme that resulted in defrauding insurers out of $5 million. The FBI, in conjunction with our law enforcement partners will continue to investigate and bring to justice criminals who defraud the system and cheat the American taxpayer."
“Our investigation is ongoing to determine the extent to which additional MTA employees may have participated in this fraudulent scheme,” said Inspector General Barry Kluger of the MTA Office of the Inspector General. “I applaud and am pleased to support the efforts of the U.S. Attorney, along with the FBI and the Department of Defense Office of Inspector General, to combat this nationwide epidemic of health care fraud that unfortunately, and at great cost, has infected the MTA as well.”
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the MTA Office of the Inspector General, under the direction of Inspector General Barry Kluger; and the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Erica Liu, Chief of the U.S. Attorney's Office Opioid Abuse Prevention and Enforcement Unit in Newark.
To date, the New Jersey U.S. Attorney’s Office has prosecuted over 20 individuals involved in various compounding pharmacy schemes across New Jersey to defraud health care benefit programs, and has recovered more than $4 million through forfeiture and restitution. These schemes have caused a total loss of more than $70 million to the health care industry, which has affected state, federal and private health care benefit programs.
The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.38 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Patrick V. Parrotta, Staten Island, New York
Martinsburg man admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg man has admitted to distributing heroin, United States Attorney Bill Powell announced.
Charles Leroy Palmer, III, age 23, pled guilty to one count of “Possession with the Intent to Distribute Heroin.” Palmer admitted to distributing more than 100 grams of heroin in June 2017 in Berkeley County.
Palmer faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The case was investigated by the Jefferson County Sheriff’s Office and the Martinsburg City Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Lafayette felon flees police, slams into post, firearm and ammo foundRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Lafayette man previously convicted of a felony pleaded guilty Thursday to possessing a .40 caliber pistol and ammunition.
Karlon Woods Jr., 22, of Lafayette, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of felon in possession of a firearm. According to the guilty plea, Lafayette Police were on patrol around the Simcoe Street area on October 20, 2016, when they encountered Woods. Officers observed Woods walking down a street with a red and black backpack, and when they approached, Woods fled. During the pursuit, Woods ran into a clothesline pole. During a medical evaluation on the scene, officers determined that Woods had an active warrant for his arrest. Officers located the red and black backpack they had previously seen on Woods in the yard where Woods was encountered. The backpack contained .40 caliber ammunition. Officers also recovered a .40 caliber Smith and Wesson pistol near the backpack. Officers later determined that the firearm recovered on the scene had previously been reported stolen on October 14, 2016, in Lafayette Parish. At the time of his arrest, Woods was a felon, having been previously convicted on January 14, 2016, in the 15th Judicial District of second-degree battery.
Woods faces up to 10 years in prison, three years of supervised release and a $250,000 fine.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Kershaw County Man Pleads Guilty to Federal Gun ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Michael Andrew Gary, age 27, of Camden, South Carolina, pled guilty in federal court to two counts of Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on January 17, 2017 officers of the Camden Police Department stopped Gary for a traffic offense, and arrested him for Driving Under Suspension. A search of the car that Gary was driving revealed a .32 caliber Colt pistol. Gary admitted the firearm was his. At the time of his arrest, Gary had previous felony convictions that prohibit him from possessing a firearm.
Approximately 6 months later, on June 16, 2017, officers of the Kershaw County Sheriff’s Department encountered Gary sitting in a car in a hotel parking lot. After officers smelled a strong odor of marijuana, they searched the car and found a Taurus 9 mm firearm in the trunk of the car. Again, Gary acknowledged that the firearm belonged to him.
Gary faces a maximum of 10 years , a fine of $250,000, and up to 3 years of supervised release on each count.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Camden Police Department and the Kershaw County Sheriff’s Office and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Nancy C. Wicker of the Columbia office handled the case.
Project Ceasefire is South Carolina’s continued application of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
#####
Kalamazoo Man Sentenced to Fifteen Years in Federal Prison for Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — Dennis Scott Kent, 54, of Kalamazoo, Michigan, was sentenced to 180 months (15 years) in federal prison for possessing child pornography, U.S. Attorney Andrew Birge announced. In addition to the prison term, U.S. District Judge Paul L. Maloney imposed a ten-year term of supervised release that will commence once Kent is released from imprisonment. Kent will also be required to register as a sexual offender.
Kent pled guilty on October 23, 2017, to possessing child pornography. He came to the attention of law enforcement in February 2017, after his landlord discovered child pornography while evicting Kent from an apartment. Police subsequently discovered a significant collection of child pornography while searching Kent’s computer. The material depicted young children engaged in sex acts, as well as prepubescent children being bound and gagged. Further investigation revealed that Kent had a prior conviction for Criminal Sexual Conduct – Third Degree. The conduct underlying that conviction spanned years and involved a vulnerable minor victim. The defendant was released from prison in 2003, but he violated his parole in 2004 by committing another predatory offense.
At sentencing, the U.S. Attorney’s Office stressed the need to protect the public from Kent. In its sentencing memorandum, the U.S. Attorney’s Office wrote: "The possession of child pornography is a very serious offense in any case, and it is all-the-more serious in this case given the defendant’s history. The possession, receipt, transportation, and distribution of child pornography perpetuates the harm to the victims depicted in images, validates and normalizes the sexual exploitation of children, and fuels a market, thereby leading to further production of images."
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Federal Bureau of Investigation (FBI), Kalamazoo County Sheriff’s Office, and Michigan State Police Computer Crimes Unit investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
James Fitzgerald “Boogie” Simonton Convicted of Crack Cocaine and Firearms OffensesRead the Press Release
GREENEVILLE, Tenn. - On March 2, 2018, following a three-day trial before the Honorable J. Ronnie Greer, U.S. District Judge, a jury convicted James Fitzgerald Simonton, a/k/a Boogie, 50, of Kingsport, Tennessee, of conspiracy to distribute 280 grams or more of crack cocaine, possession of firearms in furtherance of a drug trafficking offense, three counts of being felon in possession of firearms, and witness intimidation.
Sentencing is set for1:30 p.m., on June 11, 2018, in U.S. District Court in Greeneville. Simonton faces a minimum of 15 years, up to a maximum life sentence in prison. There is no parole in the federal system.
Evidence presented at trial revealed that an investigation began following the appearance of two young males at Indian Path Hospital in May 2016 with gunshot wounds. One of the victims was Simonton’s son. Detectives developed Simonton as a suspect in the shooting of these two individuals. When officers went to his residence, they found a Glock pistol with extended magazine, which the ATF traced to Simonton’s neighbor. Through the trace, detectives learned the firearm had been purchased at Academy Sports in Johnson City. Academy provided paperwork for the transaction and surveillance video from its store, which reflected Simonton had been present along with a co-defendant during the purchase of the firearm. Additional surveillance video showed that Simonton was present when his then girlfriend purchased another firearm. As the investigation progressed, two co-defendants, one of whom was another son of Simonton, were arrested in possession of crack cocaine. This led to information about Simonton’s involvement in trafficking crack cocaine from a source in Georgia into Sullivan County, Tennessee. Ultimately, the investigation successfully uncovered the firearm used in the shooting of the two young males, an AK63, 7.62 caliber rifle.
After his arrest, and while in federal custody, Simonton threatened a cooperating witness against him in an effort to influence the testimony of the witness. The jury found him guilty of intimidation of that witness.
Law enforcement agencies participating in this joint investigation were the Kingsport Police Department, Sullivan County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
###
Jacksonville Man Arrested and Charged with Aggravated Sexual Abuse by Force on Cruise ShipRead the Press Release
Jacksonville, FL – Brian Holland (23, Jacksonville) has been arrested and charged by criminal complaint with aggravated sexual abuse by force. He faces a maximum penalty of life in federal prison and a potential lifetime of supervision. Holland made his initial appearance in federal court today and was temporarily detained pending a detention hearing on Tuesday, March 6, 2018.
According to the complaint, agents with the Federal Bureau of Investigation were notified by the security department of the Carnival Cruise Line vessel Elation that a passenger onboard the ship had been involved in an incident of sexual abuse on February 27, 2018. The victim stated that she was in the Jacuzzi with Holland on the cruise ship when he kept attempting to put his arm around her and she attempted to move further away from him. Holland then tried to put his hand on her shoulder and pull her back toward him. The victim stated that Holland touched her on her genitals over her bathing suit and then under her bathing suit, digitally penetrating her by force. The victim left the Jacuzzi and immediately reported what happened to family, who then reported it to ship security. The victim was examined by medical personnel on the ship, who found abrasions on her genitals consisted with digital penetration by force.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ashley Washington and Jay Taylor.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that JOSE REYES-GABRIELES, age 33, a native of Honduras, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien.
According to the court documents, REYES-GABRIELES was previously removed from the United States on April 17, 2008. He was later found in the Eastern District of Louisiana on December 7, 2017, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
REYES-GABRIELES faces a maximum term of imprisonment of two years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. U.S. District Judge Lance M. Africk set sentencing for April 19, 2018.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Honduran Man Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
JOSE ALBERTO SANTOS-MONTALVAN, age 42, a citizen of Honduras pleaded guilty to a one-count indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court documents, SANTOS-MONTALVAN used a social security number that was not assigned to him by the Social Security Administration to register for a safety training course that he was required to complete before he could begin working for a local construction company on various job sites in the local area. At sentencing, which is set for June 7, 2018 at 2:00 p.m. before U.S. District Judge Eldon E. Fallon, SANTOS-MONTALVAN faces a maximum term of imprisonment of not more than five (5) years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, SANTOS-MONTALVAN is subject to a period of supervised release after imprisonment of up to three years.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hartsville Man Pleads Guilty to Drug Trafficking and Firearm Charges in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Tyrez Lavor Johnson, age 31, of Hartsville, entered a guilty plea in federal court in Florence to possession with intent to distribute and distribution of cocaine base, a violation of Title 21, United States Code, Section 846, and felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g). United States District Judge R. Bryan Harwell, of Florence, accepted the plea and will impose sentence after a pre-sentence report is prepared by the U.S. Probation Office.
This case was part of an investigation conducted by state and federal agents into the sale of illegal drugs in the Hartsville, South Carolina area. In October 2017, investigators made a controlled purchase of a quantity of cocaine base from Johnson. Johnson was later found in possession of a .357 caliber revolver during his arrest on the drug distribution charge. Johnson was prohibited from possessing the firearm due to a prior conviction for a controlled substance offense.
Ms. Drake stated the defendant faces a maximum term of imprisonment of 20 years and a fine of $1,000,000.
The case was investigated by agents of the Hartsville Police Department, the Darlington County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Christopher D. Taylor of the Florence office handled the case.
#####
Ghillie Suit Wearing Drug Dealer SentencedRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on March 1, 2018, Senior United States District Court Judge W. Louis Sands sentenced Keith Gaines, age 43, of Bainbridge, GA, to 176 months imprisonment for the offense of possession with intent to distribute cocaine. Gaines plead guilty to the offense on December 18, 2107.
The evidence supporting the plea showed that on April 22, 2016, agents of the Bainbridge Department of Public Safety executed a search warrant at in Decatur County, Georgia. During the search, agents located a cookie tin which contained crack cocaine and powder cocaine weighing 38.51 grams. An arrest warrant was issued for Keith Gaines.
On May 3, 2016, agents received a call about a man wearing a ghillie suit walking in the area of the City of Bainbridge purchasing department warehouse. Concerned that the man might be planning to burglarize the warehouse, agents attempted to make contact with him. As officers began to walk toward the man, he bent down and placed something on the ground before ducking behind a nearby rail car and taking flight on foot. Agents located this person, identified as Keith Gaines, laying on the ground on his stomach in a densely wooded area. The officers took Mr. Gaines’ wallet to verify his identity and located a small quantity of cocaine inside it.
The next day, Mr. Gaines made a phone call from the Decatur County Jail to an unknown male on the jail’s recorded phone line. In this call, Mr. Gaines informed the male that he had buried something near the big tree where he been taken into custody. Agents travelled back to the area and located two sandwich bags which had been buried. The bags contained powder and crack cocaine.
Agents discovered that during the booking process, Mr. Gaines had given the number to which the call had been placed as the number of a relative. They interviewed the relative, who stated that Mr. Gaines had called him and asked him to go retrieve the drugs but that he had not attempted to do so. The substances seized from the residence at the time of the search warrant and located in the wooded area near where Gaines was arrested were submitted for chemical analysis and determined to be 64.13 grams of cocaine.
“Mr. Gaines was designated a career offender based on at least five prior cocaine convictions” said United States Attorney Peeler. “He has made a career of almost 25 years of peddling this poison on the streets of our communities. We hope that this sentence will not only end that career for Mr. Gaines but deter others who might consider following the same path.”
This case was investigated by the Bainbridge Department of Public Safety. Assistant United States Attorney Leah E. McEwen prosecuted 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 Iberia Parish Sheriff’s Office captain pleads guilty to aiding and abetting assault on a detaineeRead the Press Release
LAFAYETTE, La. – The Justice Department and the Western District of Louisiana U.S. Attorney Alexander C. Van Hook today announced that Mark Frederick, a former Captain of the Iberia Parish Sheriff’s Office (IPSO), pleaded guilty to aiding and abetting an assault on a pre-trial detainee at the Iberia Parish Jail (IPJ).
According to the charges and other information presented in court, Mark Frederick was a Captain at IPSO and served as the assistant warden at the IPJ. On Sept. 27, 2011, E.M., a pre-trial detainee, resisted deputies at the IPJ. E.M. was restrained and removed from the scene. Frederick and other senior IPSO staff agreed to retaliate against E.M. by taking him to the chapel, a place that was not covered by the jail’s video surveillance system, and assaulting him.
Frederick, along with the other senior IPSO staff, went to the chapel with the unlawful intent to beat E.M. in retaliation for E.M.’s previous altercation with jail deputies. Inside the chapel, officers assaulted E.M. while he was handcuffed, compliant, and not posing a threat to anyone. One officer took a baton, placed it between E.M.’s legs and in a sharp motion, raised the baton into E.M.’s testicles hard enough to knock E.M. off of his feet and to inflict pain. Frederick recognized that he had a duty to intervene and stop the unjustified use of force on inmate E.M. Nevertheless, Frederick willfully chose not to intervene to stop the beating, despite having the opportunity to do so.
“Individuals incarcerated in jails have the right to be free from unjustified assaults by corrections officers,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We will continue to vigorously prosecute officers who abuse their authority and violate their oath of office and federal law by assaulting inmates in their custody.”
Mark Frederick, 47, of St. Martinville, La., will be sentenced by U.S. District Court Judge Donald Walter at a later date.
This case was investigated by the Lafayette Resident Agency of the FBI, and was prosecuted by Trial Attorney Tona Boyd of the Civil Rights Division and Assistant U.S. Attorney Mary Mudrick of the Western District of Louisiana.
Former Desoto District Attorney’s Office employee pleads guilty to stealing program fundsRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a former employee of the Desoto Parish District Attorney’s Office pleaded guilty Thursday to stealing money intended to be paid to the District Attorney’s Office.
Melanie Barber, 36, of Converse, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of mail fraud. According to the guilty plea, Barber worked for the DeSoto Parish District Attorney’s Office from April 1, 2002 until she was fired on February 25, 2014 as the Issuing Worthless Checks/Arraignment Secretary. The DeSoto Parish District Attorney’s Office runs several programs including pretrial diversion, traffic diversion and a worthless checks program to allow participants to avoid court appearances if they meet conditions including keeping their record clean for a year and paying a fee via money order or cashier’s check made out to DeSoto Parish District Attorney’s Office. Barber negotiated at least 580 money orders made payable to, and/or intended for, the 42nd Judicial (Desoto Parish) District Attorney’s Office from 2004 to 2014. Barber negotiated at the DeSoto Parish Sheriff’s Office, banks and other retailers where she lied to the employees stating the District Attorney’s Office was dropping the charges against the payee of the money order and she needed to refund their money. The employees believed Barber and cashed the money orders, and Barber stole the money for her own personal use. In addition, Barber obtained blank money orders from program participants on which Barber put her name as the payee and deposited into her bank account. To cover the theft, Barber marked the cases in district attorney’s office records as nolle pros, charges rejected or as paid.
Barber faces up to 20 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of July 2, 2018.
The FBI conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.