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Friday 2 March 2018
Former Congressional Staffer Found Guilty on Federal Bribery and Extortion Charges for Demanding $5,000 from Compton Marijuana ShopRead the Press Release
LOS ANGELES – A former staffer for a Member of the United States Congress was found guilty today of bribery and attempted extortion after demanding and accepting $5,000 to prevent the closure of a marijuana shop in the City of Compton.
Michael Kimbrew, 44, of Carson, was convicted by a federal jury of two felony counts related to his shakedown of the shop in March through May 2015.
The evidence presented during the three-day trial in United States District Court showed that Kimbrew attempted to extort a marijuana dispensary in Compton, threatening to shut down the shop if the owners did not pay him a $5,000 bribe. In exchange for the payoff, Kimbrew also promised to help the shop obtain a lucrative permit to continue operating.
According to the defendant’s statements, Kimbrew claimed to “oversee all activities in Compton,” and threatened the shop’s owners, an employee of the shop, and later an undercover FBI agent in recorded meetings that he was going to shut down the shop unless he received the money. He claimed that, by virtue of his federal employment for the Congress member, he had “authority” and “jurisdiction” over what Compton public officials and departments did. In exchange for the $5,000, he promised to exercise that authority and jurisdiction to keep the shop in business.
Ultimately, during a lunch meeting in Compton, Kimbrew accepted $5,000 in cash hidden inside of a restaurant menu from the undercover agent. When he pocketed the cash, Kimbrew pledged his “undying support” to protect the shop.
After approximately four hours of deliberation, the jury convicted Kimbrew of bribery and attempted extortion.
United States District Judge R. Gary Klausner is scheduled to sentence Kimbrew on June 4, at which time he will face a statutory maximum penalty of 18 years in federal prison.
This case was investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Former Cartersville police officer pleads guilty to obstructing an FBI wiretap investigationRead the Press Release
ROME, Ga. – Former Cartersville police officer Bryson-Taylor Wayne Banks, who notified drug traffickers that the FBI was conducting a court-authorized wiretap, has pleaded guilty to a felony charge of Unlawful Notification of Electronic Surveillance.
“The defendant made a decision to side with the drug dealers and sabotage an FBI investigation,” said U.S. Attorney Byung J. “BJay” Pak. “He placed his fellow law enforcement officers in imminent danger, and sold out his oath to uphold the law.”
“It is disheartening to learn that one of our own decided to take the side of law breakers, putting fellow officers and agents in danger while violating the trust of law abiding citizens in his community,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “It is only fitting that Banks will now have time to reflect on his decision, as he more than likely will spend time in prison, alongside the drug dealers he chose to side with.”
“Mr. Banks actions do not reflect the values or culture of the Cartersville Police Department,” said Lieutenant Michael Bettikofer, Cartersville Police Department.
According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, Banks, then an officer with the Cartersville Police Department and member of the Bartow-Cartersville Drug Task Force, was investigating a number of drug traffickers operating in the Cartersville area, including Tomas Pineda Mendoza, using a female confidential source (“CS”) to obtain information about the network. In cultivating his relationship with the CS, Banks improperly gave her information from law enforcement databases and illegally sent her a picture of another cooperating source.
Separately, the FBI was investigating an inmate in a Georgia state prison, Francisco Palacios Baras, also known as “Shorty,” who was using contraband cell phones to coordinate methamphetamine transactions outside of the prison. Using a court-authorized wiretap on two of Shorty’s cell phones, the FBI learned that Mendoza was one of Shorty’s associates, and that Mendoza was scheduled to pick up two kilograms of methamphetamine. The FBI planned to arrest Mendoza after he picked up those drugs.
The morning of the planned arrest, in the interest of sharing information and coordinating operations with fellow law enforcement agencies, an FBI agent informed Banks of the wiretap investigation and the plan to arrest Mendoza. Banks, knowing that the drug trafficker he had been investigating was about to be arrested by a different agency, contacted his CS and instructed her to tell Mendoza to not pick up drugs that day because the FBI planned to arrest him. Banks also told the CS that the FBI knew about Mendoza because they were wiretapping Shorty’s phones.
Mendoza did not pick up the methamphetamine as planned, but was intercepted over the wiretap calling Shorty and telling him that “one of the girls” had warned Mendoza not to pick up the drugs. He said that he had identified the agents watching his apartment, as “the girl” had warned, and that law enforcement was listening to Shorty’s phones. Following this, Shorty stopped using the phones being wiretapped by the FBI.
With the arrest plan compromised, the surveillance team identified, and the wiretap exposed, the FBI agents had to take precautions for agents’ personal safety and try to rebuild the investigation. However, the renewed investigation was ultimately successful, resulting in Shorty and Mendoza being arrested and sentenced to 9 years, seven months, and 10 years, 10 months imprisonment, respectively, for conspiracy to distribute methamphetamine.
Sentencing for Bryson-Taylor Wayne Banks, 31, of Cartersville, Georgia, is scheduled for May 11, 2018, before U.S. District Judge Harold Murphy.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Michael Herskowitz and Garrett Bradford are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Captain Pleads Guilty to Aiding and Abetting Assault on a DetaineeRead the Press Release
The Justice Department 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, Louisiana, 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 Federal Bureau of Investigation, and was prosecuted by Trial Attorney Tona Boyd of the Civil Rights Division and Assistant United States Attorney Mary Mudrick of the Western District of Louisiana.
Former Bookkeeper for South Sound Real Estate Franchises Sentenced to Nearly 6 Years in Prison for Embezzling more than $400,000Read the Press Release
The 48-year-old former bookkeeper for two Windermere Real Estate franchises was sentenced today in U.S. District Court in Tacoma to 71 months in prison and three years of supervised release for six counts of wire fraud related to her embezzlement scheme, announced U.S. Attorney Annette L. Hayes. CINDI ALLISON, now of Ben Wheeler, Texas, used her unfettered access to the bank accounts of Windermere Puyallup and Windermere South Sound to embezzle $478,398. When the embezzlement scheme was uncovered, ALLISON went on the offensive filing spurious complaints with various state regulators to attack and distract the victim of her theft. At sentencing U.S. District Judge Ronald B. Leighton said, “What you did was despicable . . . . And doing that to a friend is not only wrong, it’s immoral. It breaks every ligament that ties civilized people together.”
“This defendant’s greed harmed a small business owner and those who depended on her business for their livelihood,” said U.S. Attorney Annette L. Hayes. “Wages were frozen, retirement savings contributions delayed, and ultimately the business was sold below market value because of this defendant’s actions.”
During a five-day jury trial in June 2017, prosecutors presented evidence that ALLISON transferred money from Windermere accounts to her own bank accounts and those of her boyfriend, ex-husband, and service providers such as a roofer in Ben Wheeler, Texas. Between 2011 and 2015, ALLISON made 782 unauthorized transfers from the two real estate franchise accounts to sixteen different accounts that all had some connection to ALLISON. As the bookkeeper, ALLISON made various entries in the records and strategically bundled various transactions together to make the transfers appear legitimate. The fraud came to light in March 2015, when the new purchaser of the businesses started investigating some of the transfers and could not get straight answers from ALLISON. ALLISON had been working remotely from Texas as the bookkeeper, and the company shut down the computer system to protect its accounts.
The impact of ALLISON’s fraud was even greater than the amount of money she embezzled. The victim had to spend more than $50,000 in forensic accounting and attorney fees to uncover the extent of the fraud scheme, and the sales price for the business was at least $100,000 below its true market value because the fraudulent entries on the business’ books made it appear less profitable than it actually was. Today Judge Leighton ordered ALLISON to pay $630,346 in restitution.
ALLISON has been in custody since being convicted following her trial in June 2017.
The case was investigated by the U.S. Secret Service. The case WAS prosecuted by Assistant United States Attorneys Andre Peñalver and Steven Masada.
Florida Man Sentenced to 60 Years in Prison for Using an Infant and a Toddler to Produce Child PornographyRead the Press Release
A Middleburg, Florida man who used an infant and a toddler to produce child pornography was sentenced to 60 years in federal prison yesterday, to be followed by a lifetime of supervised release.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida and Special Agent in Charge James C. Spero of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Tampa, made the announcement.
Andrew Leslie, 23, a former software engineer, pleaded guilty before U.S. District Judge Brian J. Davis on Oct. 21, 2017.
“Andrew Leslie committed unspeakable crimes against the most vulnerable of victims, children so young that they literally cannot speak for themselves” said Acting Assistant Attorney General John P. Cronan. “Our prosecutors and law enforcement partners are committed to identifying and prosecuting offenders like Andrew Leslie and securing sentences like today’s, which ensures that he will never harm another child.”
“Yesterday’s sentence demonstrates the severity of the crimes committed in this case,” said U.S. Attorney Lopez. “We intend to continue our pursuit in prosecuting such egregious crimes as this, in hopes that justice will be served for the victims.”
“This predator has committed atrocities that are beyond comprehension,” said Special Agent in Charge Spero. “We hope yesterday’s sentencing can bring some solace to the victims in their recovery process.”
According to admissions made in conjunction with the guilty plea, during the execution of a federal search warrant at Leslie’s Middleburg residence, agents located a digital camera next to Leslie’s bed. Inside of the camera was a memory card that contained a series of images depicting Leslie sexually abusing two children, one of which was an infant child and the second who was approximately two years old. The two-year-old child, whom Leslie admitted was in bed with Leslie at the time law enforcement agents entered the residence, was found in the residence and rescued. Forensic analysis of other digital devices seized from the residence revealed that Leslie had produced, received, distributed, and possessed numerous images and videos depicting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Clay County Sheriff’s Office.
Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney D. Rodney Brown of the Middle District of Florida prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Man Sentenced to 60 Years in Prison for Using an Infant and A Toddler to Produce Child PornographyRead the Press Release
Jacksonville – A Middleburg, Florida man who used an infant and a toddler to produce child pornography was sentenced to 60 years in federal prison yesterday, to be followed by a lifetime of supervised release.
U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Special Agent in Charge James C. Spero of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Tampa, made the announcement.
Andrew Leslie, 23, a former software engineer, pleaded guilty before U.S. District Judge Brian J. Davis on Oct. 21, 2017.
“Yesterday’s sentence demonstrates the severity of the crimes committed in this case,” said U.S. Attorney Chapa Lopez. “We intend to continue our pursuit in prosecuting such egregious crimes as this, in hopes that justice will be served for the victims.”
“Andrew Leslie committed unspeakable crimes against the most vulnerable of victims, children so young that they literally cannot speak for themselves” said Acting Assistant Attorney General John P. Cronan. “Our prosecutors and law enforcement partners are committed to identifying and prosecuting offenders like Andrew Leslie and securing sentences like today’s, which ensures that he will never harm another child.”
“This predator has committed atrocities that are beyond comprehension,” said Special Agent in Charge Spero. “We hope yesterday’s sentencing can bring some solace to the victims in their recovery process.”
According to admissions made in conjunction with the guilty plea, during the execution of a federal search warrant at Leslie’s Middleburg residence, agents located a digital camera next to Leslie’s bed. Inside of the camera was a memory card that contained a series of images depicting Leslie sexually abusing two children, one of which was an infant child and the second who was approximately two years old. The two-year-old child, whom Leslie admitted was in bed with Leslie at the time law enforcement agents entered the residence, was found in the residence and rescued. Forensic analysis of other digital devices seized from the residence revealed that Leslie had produced, received, distributed, and possessed numerous images and videos depicting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Clay County Sheriff’s Office.
Assistant U.S. Attorney D. Rodney Brown of the Middle District of Florida and Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florence Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Tayquan Thomas, age 23, of Florence, South Carolina, pled guilty in federal court in Florence, to Failure to Register as a Sex Offender, a violation of Title 18, United States Code, Section 2250(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.
The evidence presented at the guilty plea hearing established that in 2013 Thomas was convicted in Pitt County, North Carolina, of Indecent Liberties with Child, to which the conviction required him to register as a sex offender in any state where he resided, was employed, or was a student. Under the law, Thomas was required to inform authorities if he ever changed his address, and if he moved to another state, he was required to notify authorities of both the state he was leaving as well as the state to which he was moving. In September 2017, the Pitt County Sheriff’s Office discovered that Thomas had left his previous address without informing them as required, and they issued a warrant for his arrest. The matter was referred to the United States Marshals Service which soon discovered that Thomas had moved to an address in Florence, South Carolina. On October 25, 2017, Thomas was located at the Florence address by a task force officer working with the U.S. Marshals Operation Intercept Fugitive Task Force. When the officer attempted to arrest Thomas, he fled in a vehicle, then on foot, but was eventually apprehended after a tracking dog (K-9) was deployed.
Ms. Drake stated the maximum penalty Thomas can receive is imprisonment for 10 years and a fine of $250,000.
The case was investigated by the United States Marshals Service with the assistance of the Florence County Sheriff’s Office and the Pitt County Sheriff’s Office. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Film Producer Found Guilty in Multimillion-Dollar Investment SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID BERGSTEIN, a film producer and entrepreneur, was convicted yesterday of defrauding investors of more than $26 million. BERGSTEIN will be sentenced on June 8, 2018, by U.S. District Judge P. Kevin Castel, who presided over the four-week trial.
Co-defendant Keith Wellner had previously pled guilty and has been cooperating with the Government.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As a unanimous jury swiftly found, David Bergstein defrauded investors out of more than $26 million. He withheld material information, transferred funds without disclosing conflicts of interest, and misappropriated funds for his own use. He now stands convicted of serious federal crimes.”
According to the Indictment and evidence presented at trial:
From 2011 through 2012, BERGSTEIN engaged in a scheme to defraud investors in Weston Capital Asset Management (“WCAM”), a New York-based registered investment adviser, by (i) concealing material information from Weston investors about financial transactions involving their money; (ii) transferring funds from one pool of Weston’s investors to make payments to, provide a security interest for, or otherwise benefit, another pool of Weston’s investors, without the required disclosures to investors concerning conflicts of interest; and (iii) misappropriating a portion of funds transferred from investor accounts for their own and others’ benefit. BERGSTEIN orchestrated this scheme in part through two transactions involving Weston investors’ assets: first, a loan from a Weston fund called the Partners 2 (or “P2”) Fund, and, second, a swap agreement with a Weston fund called the Wimbledon TT Portfolio (the “TT Portfolio”).
The Partners 2 Loan Scheme
In 2010, Weston agreed to a transaction with an entity named Gerova Financial Corporation (“Gerova”), an international reinsurance company, in which Weston sent assets from one of its hedge funds (the Wimbledon Financing Fund, or “WFF”) to Gerova in exchange for restricted shares of Gerova stock. This exchange was intended to replace illiquid hedge fund assets with stock, which could be bought and sold more easily. In 2011, however, Gerova’s stock price plummeted. Weston subsequently sought to unwind the transaction, and Weston’s president was introduced to BERGSTEIN for this purpose. BERGSTEIN and Weston’s principals subsequently formulated the outlines of a structure in which Weston would return its Gerova stock, receive its assets back from Gerova, and place those assets into another entity called Arius Libra Inc. (“Arius Libra”) as part of an investment in a separate business. Certain payments would be made along the way to facilitate the transfers.
In order to complete this transaction, BERGSTEIN and Weston’s principals agreed to loan money from the P2 Fund, another Fund operated and managed by Weston, to Arius Libra. The purpose of this loan (the “P2 Loan”) was purportedly (i) to pay certain debts associated with Gerova, and (ii) to fund Arius Libra’s purported medical billing businesses. BERGSTEIN arranged for the P2 Loan to be secured by certain of the assets of WFF. Thus, in the event the P2 Loan was not repaid, the P2 Fund had the ability to liquidate WFF assets to make P2 investors whole, to the detriment of investors in WFF. In total, approximately $9 million in investor money was disbursed from the P2 Fund pursuant to the P2 Loan.
As BERGSTEIN well knew, however, P2 Fund investors were neither informed of the existence of the P2 Loan nor given any information about Arius Libra. And no disclosures were made to inform either P2 Fund or WFF investors of the conflict of interest arising from the P2 Fund’s security interest in WFF assets, as BERGSTEIN also knew. And although BERGSTEIN had represented to Weston that disbursements made pursuant to the P2 Loan would be used both to pay off Gerova creditors and to fund Arius Libra’s medical billing businesses, in fact, BERGSTEIN misappropriated millions of dollars of P2 Loan proceeds and used them to pay for, among other things, his own personal expenses, including credit card bills and attorney’s fees.
The TT Portfolio Swap Agreement Scheme
In late 2011, BERGSTEIN and Weston’s principals secretly arranged for Weston’s TT Portfolio to enter into a swap agreement with an entity controlled by BERSTEIN known as Swartz IP Services (“Swartz IP”), a transaction that was not disclosed to TT Portfolio investors. As part of this swap agreement, BERGSTEIN arranged for approximately $17.7 million from the TT Portfolio to be transferred to to Swartz IP. In exchange, BERGSTEIN agreed to provide certain investment returns and to meet investor redemption requests. BERGSTEIN induced this transaction by misrepresenting to Weston’s principals that a wealthy investor had capitalized Swartz IP and guaranteed the transaction.
The TT Portfolio transaction was completed without disclosure to investors, even though, for other swap agreements, Weston had amended the TT Portfolio offering memorandum to reflect the particular swap agreement at issue. Of the money that was transferred to Swartz IP, moreover, BERGSTEIN directed that approximately $3 million be transferred to the P2 Fund to pay back part of the P2 Loan. BERGSTEIN thus arranged for money from one set of Weston’s investors (the TT Portfolio investors) to be used to pay back part of a debt owed to another set of Weston’s investors (the P2 Fund investors) – another conflict of interest that was not disclosed to P2 or TT Portfolio investors.
As a further part of the scheme, moreover, BERGSTEIN made false representations about Swartz IP’s assets and ability to meet redemption requests and secretly diverted TT Portfolio investor proceeds to pay BERGSTEIN’s personal expenses, including credit card bills, impressionist artwork, and private jets.
BERGSTEIN also gave a false and misleading investor presentation, made false investment disclosures, and distributed a fake loan note concealing the origin of the P2 Loan in order to attempt to conceal his criminal conduct.
* * *
BERGSTEIN, 55, of Hidden Hills, California, was convicted of the offenses set forth in the chart attached to this release. He was remanded following the return of the jury’s verdict. The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the Office’s Criminal Investigators.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore, Robert W. Allen, and Elisha Kobre are in charge of the prosecution.
COUNT
CHARGE
MAXIMUM PENALTIES
1
Conspiracy to Commit Investment Adviser Fraud and Securities Fraud (18 U.S.C. § 371)
Five years in prison and a $250,000 fine or twice the gross gain or loss from the offense
2
Investment Adviser Fraud (15 U.S.C. §§ 80b-6 & 80b-17; 18 U.S.C. § 2)
Five years in prison and a fine of $10,000
3
Investment Adviser Fraud (15 U.S.C. §§ 80b-6 & 80b-17; 18 U.S.C. § 2)
Five years in prison and a fine of $10,000
4
Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)
20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
5
Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)
20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
6
Wire Fraud (18 U.S.C. §§ 1343 and 2)
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
7
Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349)
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
Federal Indictment Charges Two Chicago Teenagers with Carjacking and Weapons OffensesRead the Press Release
CHICAGO — A federal grand jury has indicted two teenagers on carjacking and weapons offenses for allegedly taking a sport-utility vehicle at gunpoint in Chicago’s Goose Island neighborhood.
JASON DORTCH, 19, and DAVONTAE JONES, 18, brandished firearms while forcibly taking a Jeep Grand Cherokee on Nov. 13, 2017, according to an indictment returned Thursday in U.S. District Court in Chicago. Dortch is a convicted felon who was not legally allowed to possess the firearm, the indictment states.
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 Federal Bureau of Investigation; Kimberly M. Foxx, Cook County State’s Attorney; and Eddie Johnson, Superintendent of the Chicago Police Department.
The case was investigated by the Chicago 11th District Violent Crimes Task Force, which consists of agents and officers from the FBI, Chicago Police, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Additionally, the Cook County Sheriff’s Office, Oak Park Police Department and Illinois State Police assisted in the apprehension of the defendants.
“Our office will use every available federal resource to vigorously pursue and prosecute violent carjackers,” said U.S. Attorney Lausch. “We are committed to working with our state and local law enforcement partners to aggressively fight violent crime and protect Chicago’s neighborhoods from gun offenders.”
“The FBI views carjackings as a particularly violent and heinous crime,” said FBI SAC Sallet. “We are proud to work side by side with the U.S. Attorney’s Office, the Cook County State’s Attorney’s Office, Chicago Police Department, Cook County Sheriff’s Office, Oak Park Police Department, Illinois State Police, and our federal law enforcement partners, to bring these individuals to justice. Anyone who commits a crime like this should know, we are coming for you.”
The indictment charges Dortch and Jones with one count of carjacking and one count of using and brandishing a firearm during a crime of violence. Dortch is also charged with one count of illegal possession of a firearm by a felon. The using and brandishing charge carries a maximum sentence of life in prison, the carjacking charge is punishable by up to 15 years, and the felon-in-possession charge is punishable by up ten years.
Arraignments in federal court in Chicago have not yet been scheduled.
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. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Jeannice Appenteng and Special Assistant U.S. Attorney Marny Zimmer.
Ex-Employee Sentenced for Stealing Personal Information from the CloudRead the Press Release
Memphis, TN – A Collierville resident has been sentenced to federal prison for computer fraud and aggravated identity theft. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, in mid-February 2017, Jeffrey R. Luke’s, 42, employment as a behavioral analyst at Transformations Autism Treatment Center (TACT) in Bartlett, Tennessee, was terminated, as was Luke’s authority to access TACT’s patient records. The records were kept in a password-protected secure Google Drive account. When Luke was dismissed, passwords were changed in order to protect the data.
U.S. Attorney D. Michael Dunavant said: "With new and ever-changing technology, criminals are using more creative and disturbing ways to commit cyber-crimes against vulnerable victims, including identity theft. This case demonstrates the commitment and ability of the U.S. Attorney’s office, working with our federal and local law enforcement partners, to detect compromises of personal and sensitive information and hold offenders accountable for such fraudulent schemes."
However, in March, TACT’s information technology specialist noticed that the email address TACT employees used to log in to Google Drive had been comprised. Investigators identified the Internet protocol (IP) address through which the hack was accomplished, and traced it to Luke’s residence. A search warrant was executed; patient records, forms and templates were found on Luke’s computer hard drive.
On March 2, 2018, Luke was sentenced by U.S. District Judge John T. Fowlkes, Jr. to 30 months imprisonment and 3 years supervised release. He was also ordered to pay $14,941.36 in restitution.
This case was investigated by the FBI and Bartlett Police Department. Assistant U.S. Attorney Deb Ireland prosecuted this case on the government’s behalf.
Essex County, New Jersey, Man Sentenced to 135 Months in Prison for Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – A South Orange, New Jersey, man was sentenced today to 135 months in prison for his participation in the September 2015 armed robbery of a club in Passaic, New Jersey, U.S. Attorney Craig Carpenito announced.
Keontrae Lawrence, a/k/a “Taz,” 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. Judge Arleo imposed the sentence today in Newark federal court.
According to the indictment and other documents filed in this case:
On Sept. 6, 2015, Lawrence and others agreed to rob a club in Passaic at gunpoint. During his plea hearing, Lawrence admitted that he knowingly and willfully participated in the robbery and that he and another conspirator brandished a firearm and threatened to use violence against a club employee. He also admitted that he and the other conspirator took $26,084 in cash from the club before fleeing in a getaway car.
In addition to the prison term, Judge Arleo sentenced Lawrence to five years of supervised release.
Lawrence was originally charged with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Shaheed Blamahsah, a/k/a “Aboo,” 30, of East Orange, New Jersey, in November 2016. Cooper and Lawrence were later indicted by a federal grand jury on March 24, 2017, for their roles in the robbery.
Blamahsah pleaded guilty to his role in the robbery and was sentenced Oct. 6, 2017, to 150 months in prison. The charges against Cooper are still pending, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Division for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: John A. Azzarello Esq., Morristown, New Jersey
Epsom Woman Pleads Guilty to Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD, N.H. – Nicole Roskos, 30, of Epsom, pleaded guilty today in federal court to drug trafficking conspiracy and firearms charges, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, the investigation of the defendant began in 2017 when she sold fentanyl to a cooperating individual. In September of 2017, police executed a search warrant at the defendant’s residence and found four firearms, ammunition, over 511 grams of fentanyl, and approximately $24,000.
Roskos pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, controlled substances and using and carrying a firearm during and in relation to a drug trafficking crime. A sentencing hearing has been scheduled for June 11, 2018.
“Opioids are killing hundreds of residents of New Hampshire each year,” said Acting U.S. Attorney Farley. “The danger posed by drug trafficking is further increased when drug dealers use firearms to further their unlawful activities. We will continue to work with our law enforcement partners to target drug trafficking and violent crime. I commend the law enforcement officers for protecting the community from the dangers posed by the fentanyl and firearms in this case.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Georgiana Konesky.
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Dominican National Sentenced for Role in Lawrence-Based Heroin/Fentanyl Trafficking SchemeRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for his role in a heroin trafficking scheme operating in and around Lawrence.
Waner Manuel Lara, a/k/a Anibal Santiago-Torres, 34, was sentenced by U.S. District Court Judge Indira Talwani to 65 months in prison and six years of supervised release. In October 2017, Lara pleaded guilty to one count of conspiracy to possess with intent to distribute and distribution of 100 grams or more of heroin and fentanyl and one count of possession with intent to distribute 100 grams or more of heroin. In March and April 2016, Lara and three co-defendants were arrested and charged for their roles in the drug trafficking operation.
From about April 2015 to March 2016, law enforcement investigated the drug distribution activities of Ramon Baez and his associates in and around Lawrence. Baez obtained kilograms of heroin and cocaine from local suppliers and suppliers based in Mexico. One of Baez’s co-conspirators, Jose A. Rosario, supplied Baez with heroin, which Baez then repackaged for distribution.
Lara and another co-defendant, Edwin Soto, purchased heroin and fentanyl from Baez. On Dec. 29, 2015, law enforcement officers seized $99,200 in drug proceeds from Soto, intended for Baez. On March 19, 2016, agents seized from Lara 140 grams of heroin and fentanyl supplied to him by Baez. In total, the Court found Lara responsible for more than 300 grams of heroin and/or fentanyl.
Baez was sentenced in June 2017 to 121 months in prison; Rosario was sentenced in September 2017 to 22 months in prison; and Soto was sentenced in January 2018 to four years in prison.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit prosecuted the cases.
Disbarred Orange County Attorney Convicted of Mail Fraud, Structuring Cash Transactions, Making False Statements to the IRS, Obstructing the IRS, Tax Evasion, Obstruction of Justice, and PerjuryRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the conviction in White Plains federal court of former Orange County attorney JOSEPH G. SCALI for mail fraud, structuring cash transactions, making false statements to the IRS, obstructing the IRS, tax evasion, obstruction of justice, and perjury. The jury convicted SCALI yesterday on all 10 counts of the Indictment following a four-week trial before Judge Nelson S. Román.
U.S. Attorney Geoffrey S. Berman said: “Joseph Scali, a disbarred attorney, abused the law to commit the serious crimes of which he now stands convicted. Scali stole money from a client’s attorney escrow account, chronically abused the tax laws to obstruct the IRS and hide income, and defrauded a client into paying him legal fees after he had been suspended from practicing law in New York. We thank the IRS and U.S. Postal Inspection Service for their substantial work in helping to secure this conviction.”
According to the Indictment, other court filings, and evidence presented at trial:
From January 2011 through August 2012, SCALI, who represented the seller of land and mineral rights in Pennsylvania, schemed to defraud the prospective purchaser of that property of the $850,000 the latter had given to SCALI to hold in escrow by misappropriating those funds from his Attorney Trust Account. SCALI also engaged in tax evasion for the 2011 and 2012 years by, among other things, deliberately withholding from the IRS his Attorney Trust Account records, which would reveal the funds he had misappropriated.
In addition, between 2006 and November 2013, SCALI corruptly endeavored to obstruct the IRS by (a) providing materially false, incomplete, and misleading information to an IRS Revenue Officer about his filing history and income; (b) commingling client funds and personal funds in his Attorney Trust Account; (c) paying for personal items directly out of his Attorney Trust Account; (d) structuring $32,400 in cash deposits into his Attorney Trust Account. In addition, SCALI failed to timely file U.S. Individual Income Tax Returns, Forms 1040, for the years 2006 through 2012, as well as U.S. Corporate Income Tax Returns, Forms 1120, for his law firm, Joseph G. Scali, P.C., for the years 2007 through 2012, notwithstanding that he was required by law to file a return for each year. SCALI was separately convicted of making false statements to the IRS and structuring cash deposits.
SCALI also committed obstruction of justice and perjury when, in seeking to set aside his disbarment by the United States District Court for the Southern District of New York, he lied under oath to that court about why, in 2013, he had been suspended from practicing law in New York by the Second Department of the Appellate Division of the New York State Supreme Court. SCALI was disbarred by the Appellate Division on July 6, 2016.
In 2014 and 2015, SCALI committed mail fraud by fraudulently undertaking a legal representation of a client for a fee without disclosing his 2013 suspension from the practice of law in New York State.
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SCALI, 68, of West Hartford, Connecticut, is convicted of two counts of mail fraud, which carry a maximum sentence of 20 years in prison; one count of structuring cash transactions, which carries a maximum sentence of five years in prison; two counts of making false statements to the IRS, which carry a maximum sentence of five years in prison; one count of obstructing the IRS, which carries a maximum sentence of three years in prison; two counts of tax evasion, which carry a maximum sentence of five years in prison; one count of obstruction of justice, which carries a maximum sentence of 10 years in prison; and one count of perjury, which carries a maximum sentence of five years in prison.
SCALI is scheduled to be sentenced by Judge Román on June 1, 2018.
The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the IRS and the U.S. Postal Inspection Service in this investigation. Mr. Berman also thanked the Orange County District Attorney’s Office, the New York State Department of Taxation and Finance, and the New York State Police for their assistance. Mr. Berman also thanked the Counsel for the Grievance Committee for the Ninth Judicial District of New York State, the Counsel for the Committee on Grievances for the U.S. District Court for the Southern District of New York, and the Counsel for the IOLA Fund of New York for their cooperation in the investigation.
This case is being handled out of the White Plains Division. Assistant United States Attorneys Olga Zverovich, Vladislav Vainberg, and Daniel Noble are in charge of the prosecution.
Columbia Man Sentenced for CounterfeitingRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that David Michael Gibson, age 39, of Columbia, was sentenced for Conspiracy to Manufacture and Pass Counterfeit Currency, a violation of Title 18, United States Code, § 371. United States District Judge Mary Geiger Lewis, of Columbia, sentenced Gibson to 30 months in jail. Previously, Judge Lewis sentenced Travis Cree Stafford, age 39, and Justin William Watson, age 32, both of Columbia, to 46 months and 9 months in jail, respectively. They both were involved in the counterfeiting scheme with Gibson.
Facts presented in court established that on March 15, 2016, SLED and the Kershaw County Sheriff’s Department conducted a search warrant at the residence of Stafford. Officers recovered devices and materials used to make counterfeit currency. Stafford admitted making between $100,000 and $150,000 in counterfeit currency over six to seven years.
Stafford used the counterfeit money to support his drug habit. He purchased his first batch of $1,000 for $100 from a drug dealer. He began experimenting in manufacturing bills and sold them for 10% of face value. In early 2016, he taught his friend and roommate David Gibson how to make them. He and Gibson made around $5,000 to $7,000 in counterfeit FRNs. Gibson washed real currency while Stafford made bills on an inkjet printer.
Gibson and his girlfriend would pass the notes at small stores in Kershaw County.
Stafford sold counterfeit bills to Justin William Watson. Watson agreed to buy $10,000 in counterfeit money for $1,000, but Stafford only produced $5,000, for which Watson paid him $200.
The United States Secret Service, SLED, and the Kershaw County Sheriff’s Department investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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Clio Man Pleads Guilty to Theft of Government FundsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Martin Luther Dease, age 54, of Clio, South Carolina, pled guilty in federal court in Florence, to Theft of Government Funds, a violation of Title 18, United States Code, Section 641. 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.
The evidence presented at the guilty plea hearing established that from November 2016 through May 2017, Dease illegally obtained Child’s Insurance Benefits from the Social Security Administration by falsely representing himself to be the father of his niece. In fact, as part of the application process, Dease submitted a fraudulent birth certificate, purporting to be his niece’s, in which he listed himself as the father. Through this scheme, Dease illegally obtained over $41,000 from the Social Security Administration.Ms. Drake stated the maximum penalty Dease can receive is imprisonment for 10 years and a fine of $250,000.
The case was investigated by the Office of the Inspector General of the Social Security Administration. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Camp Verde Man Sentenced to 36 Months for Domestic Violence AssaultRead the Press Release
PHOENIX – Earlier this week, Richard Joseph Herrera, 35, of Camp Verde, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 36 months in federal prison, followed by three years of supervised release. Herrera had previously pleaded guilty to assault resulting in substantial bodily injury.
On March 27, 2017, Herrera assaulted the victim, his domestic partner and a member of the Yavapai-Apache Nation, resulting in substantial bodily injury.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8101-PCT-SPL
RELEASE NUMBER: 2018-020_Herrera
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Cahokia Resident Charged with Child Exploitation Offenses and Tampering with A WitnessRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on March 1, 2018, Ricardo D. Minor, 38, of Cahokia, Illinois, was indicted by a federal grand jury sitting in East St. Louis, Illinois, in a three count indictment charging him with enticement of a minor, transportation of a minor with intent to engage in criminal sexual activity, and tampering with a witness. The violations took place between June 14, 2017, and November 17, 2017, in St. Clair and Madison Counties, Illinois, and the State of Missouri.
If convicted on the enticement and transportation charges, Minor faces a term of imprisonment of not less than 10 years up to life, a $250,000 fine, and a term of supervised release of five years to life. If convicted of witness tampering, Minor faces a term of imprisonment of not more than twenty 20 years, a $250,000 fine, or both, and a term of supervised release of not more than three years.
An indictment is merely the method by which federal charges are brought. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by the Collinsville Police Department, the St. Louis County Police Department, and the FBI’s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Bridgeport Man Charged with Distributing Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that MICKEY FRED, also known as “Frankie,” 39, of Bridgeport, was arrested yesterday on a criminal complaint charging him with possession with intent to distribute, and distribution of, fentanyl.
FRED appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As alleged in court document, in the afternoon of September 6, 2017, Bridgeport Police and emergency medical personal responded to a 911 call for an unresponsive woman located on the front porch of a Bridgeport residence. The victim, who was 32, was transported to the hospital where she was pronounced deceased. Officers collected evidence from the scene, including wax folds containing suspected heroin, and the victim’s cell phone.
Subsequent laboratory analysis of the wax folds revealed the presence of fentanyl, and the Office of the Chief Medical Examiner reported the victim’s cause of death to be “acute fentanyl intoxication due to the combined effects of fentanyl, alprazolam and diphenhydramine.
It is alleged that FRED supplied fentanyl to the victim shortly before the victim died.
The charged offense carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, Monroe Police Department and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Assistant United States Attorney Selected for the North Carolina Bar Association Leadership AcademyRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced today that Assistant United States Attorney Donald Pender was one of sixteen outstanding young lawyers selected for the North Carolina Bar Association Leadership Academy’s Class of 2018.
The mission of the Leadership Academy is to help young lawyers become more effective leaders in their communities, whether their communities be the legal profession, their firms, legal departments and any other organizations with which they are associated, or their local, state, national or even international communities, or any other environments where lawyers regularly have calls or opportunities for leadership.
This year training will be conducted in five sessions starting March 2-3, 2018, through June 12, 2018. Mr. Pender is currently working in the Appellate Division within the United States Attorney’s Office for the Eastern District of North Carolina.
Anchorage Man Arrested for Making Threatening Statements Against Police OfficerRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that, early this morning, FBI Special Agents in New York City arrested Tyler Bateman, 27, of Anchorage, for making threatening statements against an Anchorage business and an Anchorage Police Officer.
Bateman has been charged with two counts of threatening interstate communications. According to the Criminal Complaint, it is alleged that, on Feb. 26, 2018, Bateman threatened via text messages to shoot and bomb an Anchorage business. Later that same day, it is further alleged that Bateman threatened, via social media, to shoot and poison an Anchorage Police Officer and “several other people.”
The FBI and APD conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Jonas M. Walker.
A Criminal Complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Amsterdam Man Charged with Gun and Drug OffensesRead the Press Release
ALBANY, NEW YORK – Nelson Rodriguez, age 38, of Amsterdam, New York, was arraigned yesterday on an indictment charging him with narcotics and firearms offenses.
The announcement was made by United States Attorney Grant C. Jaquith; Amsterdam Police Chief Greg Culick; and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
A four-count indictment charges Rodriguez with conspiring to distribute cocaine base, or “crack,” from approximately June 2017 until August 3, 2017; possession with intent to distribute cocaine base; possession of a handgun in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Rodriguez faces up to 20 years in prison, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years and up to life. Rodriguez also faces a consecutive sentence of 5 years in prison if convicted of possessing a firearm in furtherance of a drug trafficking crime. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Rodriguez was arraigned yesterday in Albany before United States Magistrate Judge Daniel J. Stewart and detained pending a trial scheduled before Senior United States District Judge Gary L. Sharpe.
This case is being investigated by the Amsterdam Police Department and the ATF, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Thursday 1 March 2018
Woman Sentenced for Tax Refund Scheme and ID TheftRead the Press Release
NEWPORT NEWS, Va. – A Newport News woman was sentenced today to 54 months in prison for filing false tax returns and identity theft.
According to court documents, Neivda Hicks, 33, prepared and filed tax returns for others in exchange for payment from 2013 through 2016. During that period, Hicks filed returns on behalf of at least 53 individuals. In addition to the information that these individuals provided, Hicks included in the returns materially false information designed to reduce the amount of tax due and owing and fraudulently increase the amount of the resulting tax refunds. Among other information, Hicks falsely claimed that the individuals for whom she prepared and filed returns had incurred qualifying education expenses, as well as business profits and losses through falsely claimed periods of self-employment. Hicks also falsely identified members of her own family and inmates who were then incarcerated with her husband in local jails as dependents of those for whom she prepared and filed returns. Hicks failed to identify herself as a paid return preparer on the returns she filed on behalf of others, giving all such returns the appearance of having been prepared and filed by the individuals named therein. Hicks included similarly false information in her own returns for tax years 2012 through 2015. In total, Hicks filed at least 32 materially false income tax returns on behalf of herself and others. Through these returns, Hicks requested over $200,000 in federal income tax refunds. Of this amount, over $150,000 derived from the materially false information Hicks had included in the associated returns.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-83.
Williamson County Man Convicted of Methamphetamine OffenseRead the Press Release
On February 28, 2018, a federal jury in Benton, Illinois, convicted a Williamson County man of a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Rex A. Hopper, 44, of Creal Springs, was convicted of conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleged the offense occurred between January 2015 and May 31, 2017, in Williamson and Franklin Counties. Hopper was ordered detained pending a June 6, 2018, sentencing hearing. The methamphetamine offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and up to a $5,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Drug Task Force, the Southern Illinois Enforcement Group, the Drug Enforcement Administration, and the Franklin County Sheriff’s Office. The Williamson and Franklin County States Attorney’s Offices also assisted in the investigation.
Waterloo Felon Sentenced to More than Nine Years in Federal Prison for Unlawfully Possessing a Gun and AmmunitionRead the Press Release
A convicted felon who illegally possessed a gun and ammunition was sentenced yesterday to more than nine years in federal prison.
Todd Deangelo Goodson, age 27, from Waterloo, Iowa, received the prison term after a September 28, 2017, guilty plea to possession of firearms and ammunition by a felon. At the guilty plea, Goodson admitted he possessed a Beretta .45 caliber pistol and a Px4 Storm AK47 .223 rifle and 9mm ammunition on June 8, 2017.
During an investigation of Goodson’s involvement in the distribution of illegal drugs, law enforcement officers executed a search warrant at Goodson’s residence. Officers seized two guns, ammunition, marijuana, cocaine, a cutting agent, a drug ledger, cash, and drug packing material. Goodson was a felon and was prohibited from possessing guns or ammunition.
Goodson was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Goodson was sentenced to 111 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Goodson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2056.
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Virginia Man Sentenced to Nine Years in Prison for Traveling to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – David Johnston, 62, of Fredericksburg, Va., has been sentenced to nine years in prison for traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Johnston pled guilty to the charge in November 2017 in the U.S. District Court for the District of Columbia. He was sentenced on Feb. 28, 2018, by the Honorable John D. Bates. Upon completion of his prison term, Johnston will be placed on 15 years of supervised release. He also will be required to register as a sex offender for 25 years.
According to the government's evidence, on Jan. 22, 2017, Johnston contacted an undercover officer with the FBI’s Child Exploitation Task Force, through a social network site. Over the next several days, Johnston engaged in e-mail and text-messaging conversations with the undercover officer. During the course of these conversations, Johnston arranged with the undercover officer to meet for the purpose of engaging in sexual acts with a female who was a minor. On Jan. 31, 2017, Johnston traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. He has been in custody ever since.
During the sentencing proceedings, the government noted that, in 1990, the defendant pled guilty at an Air Force court martial proceeding to one count of committing indecent acts upon the body of a female under 16 years of age.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of the MPD Detectives and Special Agents of the FBI’s Child Exploitation Task Force. They also expressed their appreciation for the assistance provided by the Frederick County Sheriff’s Office and Commonwealth Attorney’s Office. Finally, they expressed appreciation for the efforts of Assistant U.S. Attorney Jason Park, who prosecuted the case.
United States Files Civil Enforcement Action to Stop Arkansas Compounding Pharmacy and CEO from Manufacturing and Distributing Adulterated DrugsRead the Press Release
The United States filed a civil complaint and a motion seeking a preliminary injunction against Cantrell Drug Company and its co-owner and Chief Executive Officer, James L. McCarley Jr., to stop the manufacturing and distribution of adulterated drugs, the Department of Justice announced today.
The complaint, filed in the U.S. District Court for the Eastern District of Arkansas at the request of the U.S. Food and Drug Administration (FDA), alleges, among other things, that defendants distribute adulterated drugs in interstate commerce. According to the complaint, defendants’ drugs are adulterated because they are prepared, packed, or held under insanitary conditions whereby they may have been contaminated or may have been rendered injurious to health. The complaint also alleges that defendants’ drugs are adulterated because defendants fail to comply with current good manufacturing practice regulations.
“The Department of Justice is committed to ensuring that patients receiving compounded drugs are protected by the safeguards established in federal law,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work actively with FDA to ensure that the law’s protections are fully enforced.”
Cantrell initiated voluntary recalls of drug products in 2016 and 2017. The 2016 recall, initiated due to lack of sterility assurance, involved 29 lots of unexpired sterile drug products. The 2017 recall, also due to a lack of sterility assurance, encompassed all lots of unexpired sterile drug products that Cantrell had compounded and distributed between Feb. 16, 2017, and July 19, 2017.
FDA inspected Cantrell’s facility in 2013, 2016, and 2017, and the agency issued a Warning Letter to Cantrell in 2015. As alleged in the complaint, during the 2017 inspection, FDA documented evidence of insanitary conditions and significant deviations from current good manufacturing practice regulations. For example, as alleged in the complaint, FDA observed that the pharmacy’s own documentation revealed that Cantrell repeatedly recovered several types of microorganisms in the air and on surfaces used for sterile processing, demonstrating that products manufactured in those areas were prepared, packed, or held under insanitary conditions. As alleged in the complaint, on at least 12 occasions between January and May 2017, defendants’ environmental monitoring in one of its clean-room areas detected microbes in excess of their “action limit” (i.e., a level of contamination high enough to trigger a response such as an investigation and corrective action). As noted in the complaint, the contamination consisted of bacteria, including Bacillus oleivorans, Staphylococcus epidermidis, Micrococcus luteus, and Bipolaris spicifera. The presence of any of those organisms in an injectable product administered to a patient could cause serious adverse effects to the patient.
In addition, as alleged in the complaint, FDA found deviations from current good manufacturing practice regulations in the pharmacy’s sterile drug manufacturing operations. For example, the complaint alleges that the pharmacy failed to conduct adequate investigations of microbial contamination found in aseptic processing areas (on surfaces, in the air, and on personnel), as well as spore-forming bacteria detected in areas of the pharmacy used for drug compounding and on operator gloves.
“The Food, Drug, and Cosmetic Act is designed to protect patients from potentially unsafe drugs,” said U.S. Attorney Cody Hiland for the Eastern District of Arkansas. “This action demonstrates our commitment to enforcing these laws. We remain steadfast in our dedication to keeping the citizens of our communities safe by whatever means available under federal law.”
If entered by the Court, the Proposed Order of Preliminary Injunction sought in conjunction with the filed complaint would require defendants temporarily to cease their current operations and to recall and destroy all non-expired drugs manufactured, held, and/or distributed by them. The Proposed Order also provides defendants with a pathway to resume manufacturing and distribution by establishing specific actions defendants must take to remedy their operations.
The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Shannon Smith of the U.S. Attorney’s Office for the Eastern District of Arkansas, with the assistance of Associate Chief Counsel, Litigation, Jennifer Kang of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Arkansas, visit its website at https://www.justice.gov/usao-edar.
Unintentional Gun Discharge Leads to Four Years in Federal Prison for Felon from DubuqueRead the Press Release
A felon who went to a Dubuque laundromat in June 2017 to drop off his laundry but accidently dropped his loaded gun, which discharged when it hit the ground, was sentenced last week to four years in federal prison.
Christopher Dion Roundtree, age 33, most recently from Dubuque, Iowa, but originally from Chicago, Illinois, received the prison term after an October 26, 2017, guilty plea to possession of a gun by a felon. In a plea agreement, Roundtree admitted he was a felon and a marijuana user in June 2017, when he possessed a loaded .32 caliber pistol at a Dubuque laundromat. The pistol had an obliterated serial number. As Roundtree got out of his SUV to drop off his laundry, the gun, which Roundtree was carrying in his pants, fell out. The “Derringer”-style gun had a round chambered, and the gun discharged when it hit the ground. After the gun discharged, Roundtree picked it up, put the gun in his SUV, and went inside the laundromat to drop off his laundry. When an employee of the laundromat asked defendant about hearing a loud noise, Roundtree lied to the employee and said that the loud noise was a “firework.” Roundtree then dropped off his clothes at the laundromat—giving his true last name—and his correct telephone number. Within hours, Dubuque police officers found and apprehended Roundtree with the gun while he was still driving the SUV. Roundtree had several baggies of marijuana, crack cocaine, and powder cocaine under his seat. He also admitted to recently smoking marijuana.
Roundtree was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Roundtree was sentenced to 48 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system. Roundtree is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Guns, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 2:17-cr-1041-LTS.
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Two Mexican Truck Drivers Sent to Prison for Importing MethamphetamineRead the Press Release
LAREDO, Texas – Two men have been ordered to prison in separate, but similar schemes involving drugs given to them in Mexico and destined for the United States, announced U.S. Attorney Ryan K. Patrick. Ernesto Siller-Valdez, a 40-year-old truck driver from Saltillo-Coahuila, Mexico, and Ricardo Isguerra Chavez, 43, of Michoacan, Mexico, both pleaded guilty Dec. 4, 2017, to conspiring to import methamphetamine in separate cases.
Today, Visiting U.S. District Judge Keith P. Ellison ordered them both to serve 60 months in federal prison. Not U.S. citizens, they are expected to face deportation proceedings following their sentences.
On Oct. 5, 2017, Siller-Valdez entered the United States via the World Trade Bridge port of entry in Laredo driving a 2007 Freightliner. He was referred to secondary inspection, at which time law enforcement discovered two wooden chock blocks and two fire extinguishers in the sleeper area of the cab. Further inspection revealed a total of 22.78 kilograms of methamphetamine concealed inside the blocks and fire extinguishers. Laboratory analysis revealed the drugs have a purity level of 97%.
Siller-Valdez stated he had met a male subject at a bar in Nuevo Laredo, Tamaulipas, Mexico, who asked him if he was interested in making money by smuggling narcotics into the United States. Siller-Valdez agreed and was to be paid 30,000 Mexican pesos to transport the narcotics to Laredo. He met with that individual on Oct. 4, 2017. Siller-Valdez said he did not know exactly what he was smuggling but knew it was drugs.
In the Chavez case, he claimed that in early September 2017, four men approached him in Mexico and told him he would be paid 20,000 Mexican pesos for taking something into the United States. He claimed he was told that if he did not agree, the men would harm his family, so he agreed.
On Sept. 19, 2017, some unknown men dropped off two speaker boxes which he installed in his tractor. Chavez said he did not know exactly what was in the speaker boxes but knew it was illegal. The next day, he approached the Columbia Solidarity Bridge in Laredo driving a Tropex tractor and trailer, where law enforcement discovered 12 packages of a white, powdery substance found to be methamphetamine. The total amount found was nearly 21.956 kilograms.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted both investigations. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the cases.
Two Men Indicted for Trafficking Firearms in Sacramento and Placer CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 16-count indictment today against Jesus Rodriguez, 22, and James Raymond Sykes, 23, both of Sacramento, charging them with dealing firearms without a license and conspiring to do the same, U.S. Attorney McGregor W. Scott announced. The indictment also charges Rodriguez with possessing an unregistered and unserialized short-barreled rifle, and distributing methamphetamine and cocaine.
According to court documents, Rodriguez met separately with an undercover agent and two confidential sources on 12 occasions between September 5, 2017, and December 6, 2017, and sold them a variety of firearms, including a short-barreled rifle with a 90-round drum magazine, several AR-15-type rifles and pistols, and handguns. Court records also state that Rodriguez sold the agent cocaine and methamphetamine. In all, Rodriguez sold the undercover agent 34 firearms, many of which lacked a serial number or other identifying markings. Court records state that Sykes was present at, and participated in, at least five of the firearms transactions.
This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with special assistance from the Sacramento Police Department and the Sacramento County District Attorney’s Office’s Gangs, Hate Crimes, and Narcotics unit.
If convicted of dealing firearms without a license, the defendants face a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for possessing an unregistered short-barreled rifle or an unserialized firearm is 10 years in prison and a $10,000 fine. The penalty for distributing methamphetamine is not less than 10 years in prison, up to life, and a $10 million fine. The maximum penalty for distributing cocaine is 20 years in prison, and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tucker County man sentenced to more than seven years for illegal firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Christopher S. Earnest, of Parsons, West Virginia, was sentenced this week to 87 months incarceration for firearms charges, United States Attorney Bill Powell announced.
Earnest, age 35, pled guilty to one count of “Unlawful Possession of a Firearm,” and one count of “Possession of an Unlawful Firearm” in December 2017. Earnest admitted to possessing two stolen firearms. Earnest, having previously been convicted of distributing methamphetamines in United States District Court in the Northern District of West Virginia, admitted to possessing a 12-gauge shotgun with a shortened barrel. The crime occurred in June 2017 in Randolph County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Treasurer of City of Zeigler Pleads Guilty to Fraud and Embezzlement ChargesRead the Press Release
Today in federal court in Benton, Illinois, Ryan A. Thorpe, 44, the former Treasurer of the City of Zeigler, Illinois, pled guilty to five counts of wire fraud and embezzlement from a local government, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. The charges against Thorpe relate to events which occurred while Thorpe worked as the Treasurer for the City of Zeigler.
In pleading guilty today, Thorpe admitted that from March 4, 2013, through Aug. 3, 2017, he embezzled $321,399.22 by writing checks payable to himself drawn on the City of Zeigler’s general account. Thorpe also admitted that he concealed his thefts from the City of Zeigler by altering the copies of the checks that were sent to the city each month by the city’s bank. Thorpe accomplished this by "whiting out" his name in the payee section of these checks, writing in the names of vendors and suppliers that the city did business with, photocopying the altered checks, placing these photocopies in the bank records kept by the city, and then shredding the copies of the checks with the "white out." Thorpe also acknowledged that he further concealed his thefts by submitting false monthly Treasurer’s Reports to the Zeigler City Council.
"Corruption by public officials simply cannot be tolerated," commented U.S. Attorney Boyce. "Officials who steal from the citizens they are elected and appointed to represent commit a gross abuse of public trust. Whenever this type of conduct is discovered, our office will prosecute
these officials and seek appropriate punishments."
As part of his plea agreement, Thorpe agreed to turn over to the City of Zeigler numerous items he purchased with the embezzled funds. These items include: a side-by-side utility task vehicle; two motorcycles; a utility trailer; a lady’s diamond ring; numerous firearms; a gun safe, and a four-propeller drone. The total value of this property is estimated at $35,872.74. Thorpe also agreed to forfeit a significant number of assets to the United States. The assets Thorpe agreed to forfeit include: a second side-by-side utility task vehicle; a portable building; a lot and trailer located across the street from Thorpe’s house in Zeigler; five additional vacant lots located in Zeigler; two retirement accounts valued at a total of approximately $9,000, and a camper. After these properties are forfeited and sold, the United States Attorney’s Office will request that the funds from these sales be released and applied to the restitution amount that Thorpe will owe to the City of Zeigler. In the plea agreement, Thorpe acknowledged that he owes restitution to the City of Zeigler in the amount of $321,399.22, less credits for the value of the items turned over to the City and forfeited to the United States.
The sentencing hearing for Thorpe has been set for June 12, 2018, at 9:30 a.m. The sentencing hearing will be conducted at the Federal Courthouse in Benton. Each of the three wire fraud counts to which Thorpe pled guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Each of the two counts of embezzlement from a local government carries a maximum sentence of 10 years of imprisonment and a $250,000 fine.
The investigation was conducted by agents from the Springfield Division, Marion, IL Resident Agency of the FBI. The Franklin County Sheriff’s Department assisted in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Three Convicted of Transporting Drugs via LanchaRead the Press Release
CORPUS CHRISTI, Texas – Three Mexican nationals have pleaded guilty to conspiring to import 611 kilograms of marijuana into the United States, announced U.S. Attorney Ryan K. Patrick.
Julio Cesar Cruz-Amaro, 31, Tito Mar-Herrera, 35, and Miguel Angel Ender-Diaz, 56, admitted they conspired to import marijuana into the United States while on board a vessel.
On Dec. 13, 2017, authorities detected and captured a Mexican lancha boat crew illegally transporting narcotics while in federal waters off southern Texas. Cruz-Amaro, Mar-Herrera and Ender-Diaz were interdicted in the vicinity of Packery Channel near Port Aransas along with one lancha and 30 bales of marijuana totaling 611 kilograms.
U.S. Coast Guard (USCG) originally detected the vessel offshore traveling northbound towards the United States which was then intercepted with the assistance of Custom and Border Protection (CBP) approximately nine nautical miles offshore.
They had admitted a criminal organization hired them to bring the drugs into the United States through Corpus Christi.
A lancha is a fishing boat used by Mexican fishermen that is approximately 20-30 feet long with a slender profile, typically has one outboard motor and is capable of traveling at speeds exceeding 30 mph.
U.S. District Judge Nelva Gonzales Ramos has set sentencing for July 18, 2018. At that time, each defendant faces a minimum of five and up to 40 years in federal prison and a possible $5 million maximum fine.
All three defendants have been and will remain in custody pending that hearing.
USCG conducted the investigation with the assistance of CBP. Assistant U.S. Attorney Jeffrey S. Miller prosecuted the case.
Tennessee Staffing Company Owners Sentenced to Prison for Payroll Tax FraudRead the Press Release
Two former Memphis staffing company owners were sentenced to prison today for payroll tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
Mark Stinson, who was convicted in December 2017 at trial of conspiring to defraud the United States, failing to pay over payroll taxes, filing false tax documents, theft of government funds, and aggravated identity theft, was sentenced to 75 months in prison. His wife, Jayton Stinson, previously pleaded guilty to conspiring to defraud the United States, and was sentenced to one year in prison.
According to court documents and trial testimony, from 2005 through 2015, Mark and Jayton Stinson operated a temporary staffing company in Memphis that provided services to businesses in Tennessee and elsewhere. The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).
The Stinsons failed to pay over $2.8 million in withholdings and other employment taxes due to IRS, failed to timely file employment tax returns and filed false employment tax returns. In an effort to avoid making payments to the IRS, the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Jayton Stinson Connex Staffing & Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc., and Complete Employment Agency.
The Stinsons also conspired to impede efforts by the IRS to collect on the employment tax liabilities owed by their companies. For example, the Stinsons made false representations to the IRS about their control of the staffing company and their knowledge of the requirement to truthfully account for and pay over the employment taxes, falsely identified multiple family members as company executives, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments. The Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payments, and private school tuition for their children.
Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled. Stinson received a substantial portion of the fraudulent refund.
In addition to the terms of imprisonment, U.S. District Court Judge John T. Fowlkes, Jr. ordered the Stinsons to serve terms of supervised release and to pay restitution of $ 2.8 million.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tennessee Staffing Company Owners Sentenced to Prison for Payroll Tax FraudRead the Press Release
Memphis, TN – Two former Memphis staffing company owners were sentenced to prison today for payroll tax fraud, announced Principal Deputy Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
Mark Stinson, who was convicted in December 2017 at trial of conspiring to defraud the United States, failing to pay over payroll taxes, filing false tax documents, theft of government funds, and aggravated identity theft, was sentenced to 75 months in prison. His wife, Jayton Stinson, previously pleaded guilty to conspiring to defraud the United States, and was sentenced to one year in prison.
According to court documents and trial testimony, from 2005 through 2015, Mark and Jayton Stinson operated a temporary staffing company in Memphis that provided services to businesses in Tennessee and elsewhere. The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).
The Stinsons failed to pay over $2.8 million in withholdings and other employment taxes due to IRS, failed to timely file employment tax returns and filed false employment tax returns. In an effort to avoid making payments to the IRS, the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Jayton Stinson Connex Staffing and Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services, Inc., and Complete Employment Agency.
The Stinsons also conspired to impede efforts by the IRS to collect on the employment tax liabilities owed by their companies. For example, the Stinsonsmade false representations to the IRS about their control of the staffing company and their knowledge of the requirement to truthfully account for and pay over the employment taxes, falsely identified multiple family members as company executives, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments. The Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payments, and private school tuition for their children.
Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled. Stinson received a substantial portion of the fraudulent refund.
In addition to the terms of imprisonment, U.S. District Judge John T. Fowlkes, Jr., ordered the Stinsons to serve terms of supervised release and to pay restitution of $2.8 million.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS-Criminal Investigation, who investigated this case, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks, who prosecuted this case.
Tangipahoa Parish Men Plead Guilty to Burglary of a Federal Firearms LicenseeRead the Press Release
DEMARCO JONES, age 23 of Tickfaw, and WILLIE WALKER, age 22 of Hammond, pled guilty yesterday to violations of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
JONES and WALKER pled guilty to theft of firearms in connection with the January 31, 2017 burglary of the Tickfaw Auction Company (a federal firearms licensee), during which 57 handguns were stolen. Additionally, WALKER admitted to possession of stolen firearms and JONES tendered a guilty plea to possession of firearms by a felon.
Each offense carries an identical maximum sentence: 10 years imprisonment, and/or a fine not to exceed $250,000, three years of supervised release, and a $100 assessment fee. The defendants are scheduled to be sentenced on May 9, 2018.
U. S. Attorney Duane A. Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms, the Hammond Police Department, and the Tangipahoa Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Michael E. McMahon.
Syracuse Man Arrested on Child Sex Enticement ChargesRead the Press Release
SYRACUSE, NEW YORK – Derek Indivero, age 25, of Syracuse, New York, was arrested and charged with enticing a 12-year old victim into engaging in sexual activity using a facility of interstate commerce and subsequently attempting to entice the same 12-year old victim into engaging in additional sexual activity using a facility of interstate commerce, announced 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 (FBI).
Indivero was arrested yesterday by the FBI and New York State Police at a location in Onondaga County where he intended to meet for a second time with the 12-year old girl following arrangements he made using a mobile communications device, according to a federal criminal complaint. The defendant appeared in federal court (Syracuse) today to face the charge and was ordered detained in custody without bail pending a hearing scheduled for March 6, 2018.
The charges filed against Derek Indivero carry a minimum sentence of 10 years and up to life imprisonment, a fine of up to $250,000.00 and a term of supervised release of at least 5 years and up to life, as well as mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Persons with information relating to this investigation should contact the FBI Syracuse Resident Agency at (315) 424-2400.
This case is being investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police- Bureau of Criminal Investigation, with assistance from the Onondaga County District Attorney’s Office, the Onondaga County Sheriff’s Department Abused Person’s Unit and the McMahon/Ryan Child Advocacy Center, and is being prosecuted by Assistant U.S. Attorney Geoffrey Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Statement by United States Attorney Louis D. Lappen Regarding U.S. vs. PawlowskiRead the Press Release
“Today’s guilty verdicts send the message again to corrupt politicians that they are not above the law,” said United States Attorney Louis D. Lappen. “The jury has held Mayor Pawlowski accountable for selling his office to the highest bidder to fund his personal ambitions. Thinking only of himself, he deprived Allentown residents of their right to receive honest and faithful services from their municipal government. The mayor then tried to cover up his crimes by destroying evidence, lying to the FBI agents who were investigating him, and lying to the federal jurors who heard his case. Our prosecutors and law enforcement partners worked extremely hard to investigate this case, which also resulted in 10 guilty pleas. We hope that those in public office receive the clear message that justice system will not tolerate these abuses of the public trust.”
St. Louis Woman Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Carol J. Dotson, 70, St. Louis, pleaded guilty to one count of wire fraud. She appeared in federal court this morning before U.S. District Judge E. Richard Webber.
According to court documents, from July 2003 to February 2017, Doston embezzled more than $2 million dollars from a commercial real estate property management company in Olivette, Missouri where she was the office administrator. Dotson wrote multiple checks to herself, withdrew large sums of cash to spend on elder care for her mother, mortgage payments, home renovations, home cleaning services, law services and shopping at local stores.
Dotson faces up to 20 years imprisonment, a $250,000 fine or both. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation with assistance from the Olivette Police Department. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
Springfield Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in federal court in Springfield for distributing heroin.
Luis Oppenheimer, 30, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 66 months in prison and three years of supervised release. In May 2015, Oppenheimer pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin, and one count of possession with intent to distribute and distribution of heroin.
On Oct. 6, 2013, Oppenheimer sold heroin to an undercover federal agent in Springfield, which was captured on video. In addition, Oppenheimer admitted that, during the transaction, he accepted $400 in cash in exchange for drugs after his co-conspirator, Jose Vargas, handed heroin to the undercover agent.
Vargas, pleaded guilty to the same crimes on March 31, 2015, and was sentenced to one year of probation.
United States Attorney Andrew E. Lelling and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office prosecuted the case.
Salem County, New Jersey, Woman Admits Filing False Corporate Tax ReturnsRead the Press Release
NEWARK, N.J. – A Salem County, New Jersey, woman today admitted signing false tax returns for shell companies resulting in $286,742 in fraudulent refunds, U.S. Attorney Craig Carpenito announced.
Marilyn Crespo, 50, of Carney’s Point, New Jersey, pleaded guilty before U.S. Chief District Judge Jose L. Linares in Newark federal court to an information charging her one count of filing a false corporate tax return for tax year 2009.
According to the documents filed in this case and statements made in court:
Crespo previously resided in Guttenberg, New Jersey. At the direction of her husband, Jose Crespo, she signed under penalty of perjury numerous false corporate tax returns, Forms 1120, for fake businesses, knowing that the businesses were not real and that the credits claimed on the tax returns were false.
In signing these false tax returns, Marilyn Crespo took advantage of fuel excise tax credits offered under federal tax law. The federal government taxes gasoline, diesel fuel, and certain other types of fuel, but certain commercial uses of these fuels are nontaxable. Businesses that purchase fuel for a nontaxable use can claim a tax credit by filing Form 4136 entitled “Credit for Federal Tax Paid on Fuels.”
Marilyn Crespo signed a federal corporate tax return for 2009 for Magnum Cleaning Service Corp. that claimed gross receipts of $115,027, a fuel excise tax credit of $20,859 and a resulting refund of $15,750. In fact, Magnum was a shell company and the gross receipts and fuel excise tax credit numbers were false. Marilyn Crespo received and cashed the $15,750 refund check at a check-cashing facility in Guttenberg. She cashed many other refund checks for similar false tax returns at this same check-cashing facility.
Jose Crespo pleaded guilty on Sept. 11, 2017, before Judge Linares, to engaging in the fuel excise tax credit scheme and another tax fraud scheme and causing an anticipated loss to the IRS of nearly $1.5 million. He was sentenced Dec. 20, 2017, to three years in prison.
The count of filing a false tax return carries a maximum potential penalty of three years in prison, and a potential $250,000 fine or twice the gross gain or loss from the offense. Sentencing is set for June 20, 2018.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Kenneth W. Kayser Esq., East Hanover, New Jersey
Sacramento Man Indicted for Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against David Patrick Seilheimer, 50, of Sacramento, charging him with receiving child pornography and possessing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between May 2015 and February 7, 2018, Seilheimer, using the internet, downloaded and shared child pornography videos and images. The images included prepubescent children engaged in sexual activity.
This case is the product of an investigation by the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Roger Yang and Rosanne Rust are prosecuting the case.
If convicted, Seilheimer faces a maximum statutory penalty of 40 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Sacramento Man Indicted for Advertising and Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Mark A. Richards, 48, of Sacramento, charging him with advertising and distributing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in January 2018, Richards allegedly made child pornography available over a peer-to-peer file sharing network and provided passwords to undercover officers who asked him for access to his files. On two occasions, January 7, 2018 and January 11, 2018, those undercover officers in locations outside California obtained child pornography from Richards.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Richards has been in custody since his arrest on February 14, 2018. If convicted, Richards faces a maximum statutory penalty of 30 years in prison for advertising child pornography and 20 years in prison for each count of distributing child pornography, along with a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rochester Woman Sentenced on Bank Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Maria A. English, 28, of Rochester, NY, who was convicted of conspiracy to commit bank fraud, was sentenced to 15 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that between November 2012 and September 2013, English and co-conspirator, Michael Debardlabon, using the names, social security numbers, and dates of birth of two different Florida residents, obtained financing to purchase used automobiles, including an Infinity, a Lexus, and a BMW. The funding was obtained through financial institutions such as ESL and Ally Financial. The Florida residents never authorized the financial transactions to occur. In addition, on one occasion, the personal information of a third Florida resident was used to open an American Express card and charge air fare for English.
Michael Debardlabon was previously convicted and sentenced.
Today’s sentencing is the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Acting Special Agent-in-Charge Raymond Moss, Boston Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Registered Sex Offender Sentenced to 40 Years in Prison for Producing Child PornographyRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of DONALD THOMAS PERRIN, 58, a registered sex offender, to 40 years in prison for producing child pornography. PERRIN, who pleaded guilty on October 10, 2017, moments before his jury trial was set to begin, was sentenced yesterday before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minn.
“Donald Perrin manipulated, exploited and humiliated a vulnerable young victim, and never once showed any remorse for his predatory actions,” said Assistant U.S. Attorney Kate Buzicky. “Unfortunately for the victims the damage can never be undone, but with today’s forty-year sentence this predator will no longer be able to harm vulnerable children.”
According to his guilty plea and documents filed in court, in the summer of 2014, PERRIN, a registered sex offender, began engaging in sexually explicit online chats with a fifteen-year-old minor. In the fall of 2014, PERRIN was arrested and jailed at Carver County Jail following a violation of his sex offender registration requirement. After he was released from Carver County Jail, PERRIN continued his online communications with the minor and made screen captures of their video chat sessions depicting sexually explicit activity. On February 12, 2016, PERRIN was again arrested and jailed as a result of his non-compliance with his sex offender registration requirements. Following his arrest, law enforcement executed search warrants at PERRIN’S home and recovered several digital devices containing thousands of child pornography files. PERRIN was scheduled to begin trial on October 10, 2017, before U.S. District Judge Wilhelmina M. Wright in St. Paul, Minn.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the FBI and the Carver County Sheriff’s Office.
Assistant United States Attorneys Katherine T. Buzicky and Angela Munoz-Kaphing are prosecuting this case.
Defendant Information:
DONALD THOMAS PERRIN, 58
Sherburne County Jail
Convicted:
- Production of child pornography, 1 count
- Commission of a felony while being required to register as a sex offender, 1 count
Sentenced:
- 480 months in prison
- 20 years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Prison for West Hartford Man Who Imported Pill Press to Make Fake Oxycodone Pills Containing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that PABLO TEXIDOR, 40, of West Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by one year of supervised release, for importing a tableting machine and tableting dies to manufacture fake oxycodone pills that contained heroin.
According to court documents and statements made in court, on March 15, 2017, U.S. Customs and Border Protection officials inspected a parcel from China that was being shipped to TEXIDOR’s West Hartford residence. The parcel, which was described as containing “machine spare parts,” contained one set of tablet press dies.
Pill presses are often used by individuals engaged in the manufacturing of distribution-quantities of pills or capsules. A pill die is used with a pill press to cut and mark tablets.
The investigation revealed that five parcels had been shipped previously from China to TEXIDOR’s residence. Four of the parcels were described as containing “machine spare parts,” and one parcel was described as containing a “hole puncher machine for sample.”
On March 30, 2017, DEA agents searched TEXIDOR’s residence and seized a tableting press, seven pill dies, 99 fake oxycodone pills, a bag containing approximately four grams of heroin, and a bag containing approximately 500 grams of a binding powder. A subsequent lab test revealed that the pills contained no oxycodone, but instead contained heroin.
On August 29, 2017, TEXIDOR pleaded guilty to one count of importation of any product used to manufacture a controlled substance.
Judge Shea ordered TEXIDOR, who is released on a $50,000 bond, to report to prison on May 1.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad, Homeland Security Investigations and U.S. Customs and Border Protection, with the assistance of the West Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys Lauren Clark and Michael McGarry.
Pocola Man Sentenced to 30 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Duane Ray Bryant, age 31, of Pocola, Oklahoma, was sentenced to 30 months imprisonment, consecutive to state time he is currently serving, and 3 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) & 841(b)(1)(C). The charge arose from an investigation by the Sallisaw Police Department and the Drug Enforcement Administration.
The Indictment alleged that on or about January 29, 2017, within the Eastern District of Oklahoma, the defendant, Duane Ray Bryant, did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Methamphetamine ruins lives, families, and communities. Those that deal drugs do so for their profit without regard to the destruction it causes. The defendant’s business has been shut down due to the efforts of the Sallisaw Police Department and the DEA, as well as law enforcement agencies in Arkansas, who investigated his criminal activity in that state. We commend those agencies for their work.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Pittsburgh Man Sentenced for Operating a Forged Prescription RingRead the Press Release
PITTSBURGH - A resident of Pittsburgh has been sentenced in federal court to seven months of home confinement with electronic home monitoring, followed by four years of probation, on his conviction of a health care fraud conspiracy to commit offenses against the United States, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Zachary Edward Rathke, 26, of Pittsburgh, Pa.
According to information presented to the court, Rathke and two co-defendants operated a forged prescription ring. Prescriptions were forged with the names, DEA numbers, medical license numbers, and signatures of real medical doctors. The prescriptions, most of which were forged for oxycodone and Percocet, were filled at a large number of Western Pennsylvania pharmacies and primarily paid for with Medicaid funds. The fraudulently obtained prescription pills were then sold on the street for substantial profit.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, Drug Enforcement Administration, Pittsburgh Bureau of Police, Brentwood Police Department, Mt. Pleasant Police Department and Bellevue Police Department for the investigation leading to the successful prosecution of Rathke.
Pitcairn Woman Attempted to Rob her Hometown Post OfficeRead the Press Release
PITTSBURGH - A resident of Pitcairn, Pennsylvania, pleaded guilty in federal court to a charge of attempted post office robbery, United States Attorney Scott W. Brady announced today.
Kristen Risko, 23, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on July 21, 2016, the defendant, wearing a gray hooded sweatshirt with the hood over her head, large dark sunglasses covering her face and holding a metallic object in her right hand, walked into the United States Post Office in Pitcairn, Pennsylvania. She raised her right hand, pointed it at the clerk, and demanded money. The clerk could not see what was in the defendant’s hand because she had the sleeve from her sweatshirt covering her hand. The defendant moved closer to the clerk, demanded money and told him to give her everything that he had. As she got closer, he believed that she was holding a knife. The clerk told her that the police just drove by and that she had better leave because they were coming back any second. He then moved behind a doorframe and out of her view. At that point, the defendant fled the Post Office.
Officers utilized surveillance video to identify and track the whereabouts of the defendant. They observed her discard the sweatshirt and glasses, which they were able to recover from a yard. Postal Inspectors interviewed the defendant at her home the next day. The defendant advised that the item that she carried in her hand was a remote control for a space heater, which she threw into the creek before returning home. She also admitted to throwing the sweatshirt and glasses into a residential yard as she fled the scene.
Judge Cercone scheduled sentencing for July 25, 2018. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, Judge Cercone ordered that the defendant remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Pitcairn Borough Police Department conducted the investigation leading to the prosecution of Risko.
Pennsylvania man pleads guilty to federal drug chargesRead the Press Release
BECKLEY, W.Va. – A Pennsylvania man pled guilty today to federal drug crimes, announced United States Attorney Mike Stuart. Angel Diaz-Gibson, 26, of Reading, entered his guilty plea to distribution of heroin and to using a phone to facilitate a drug felony. U.S. Attorney Stuart commended the investigative efforts of the Greenbrier Valley Drug and Violent Crime Task Force.
“If you make the mistake of selling heroin in Southern West Virginia, I can assure you that we have an aggressive team that will use every tool to hold you accountable,” said U.S. Attorney Stuart. “Selling heroin in my district will put you behind bars for a long time.”
Diaz-Gibson admitted that on August 22, 2015, he sold 148 stamps of heroin to a confidential informant in Fairlea in Greenbrier County. Each stamp is considered to be one dose of heroin. Diaz-Gibson further admitted that he had a telephone conversation with the informant to help set up the drug deal. He also admitted that he had distributed a total of about 740 heroin stamps in Greenbrier County.
Diaz-Gibson faces up to 24 years in federal prison when he is sentenced on June 6, 2018.
Assistant United States Attorney John File is responsible for the prosecution. United States District Judge Irene C. Berger presided over the plea hearing.
This case is being prosecuted under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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