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Wednesday 21 February 2018
Gulfport Man Pleads Guilty to Selling HeroinRead the Press Release
Gulfport, Miss. – Alexander Archie, Jr., 41, of Gulfport, pled guilty today before U.S. District Court Judge Sul Ozerden to possession with intent to distribute heroin, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration Special Agent in Charge Stephen G. Azzam.
On July 31, 2017, following information of suspected heroin distribution in a hotel room at the Best Western hotel in Gulfport, the Harrison County Sheriff’s Department Narcotics Division organized an undercover operation. Archie was detained after he sold approximately 3.5 grams of heroin to a confidential source. A search warrant was obtained for the hotel room. The search of the hotel room led to the discovery of 74.1 grams of heroin, plastic sandwich bags, currency, and a digital scale.
Archie will be sentenced on June 11, 2018, at 10:00 a.m. by Judge Ozerden, and faces a maximum penalty of 20 years in prison and a $1 million fine.
The case was investigated by the DEA with assistance from the Harrison County Sheriff’s Department Narcotics Division. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
Guatemalan Man Sentenced to Prison Following Two Deportations and Committing Document FraudRead the Press Release
A Guatemalan man who had been deported two times and illegally returned to the United States and then used false identification documents to obtain a job was sentenced today to eight months in federal prison.
Felix Figueroa-Sanchez, age 30, a citizen of Guatemala illegally present in the United States and residing in Wright County, Iowa, received the prison term after an October 26, 2017, guilty plea to one count of unlawful use of identification documents and one count of illegal reentry into the United States after a felony conviction.
At the guilty plea, Figueroa-Sanchez admitted that on December 15, 2016, he used a social security card bearing a fake name when completing employment forms to obtain a job in Eagle Grove, Iowa. The name and social security account number on the card used by Figueroa-Sanchez belonged to a United States citizen. Figueroa-Sanchez also admitted that he illegally returned to the United States after being deported in October 2008 and again in February 2010. Figueroa-Sanchez was also convicted of a felony offense in May 2008 for using a false name and false identification documents to obtain a job in Postville, Iowa. Immigration agents became aware of Figueroa-Sanchez’s illegal return to the United States in August 2017 following Figueroa-Sanchez’s arrest and conviction for assault in Wright County, Iowa, while he falsely was using the name of the United States citizen.
Figueroa-Sanchez was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Figueroa-Sanchez was sentenced to eight months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Figueroa-Sanchez 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 Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3044.
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Grenada Woman Pleads Guilty to Cocaine and Meth ConspiracyRead the Press Release
Gulfport, Miss. – Tambra Brown, 30, of Grenada, pled guilty yesterday before U.S. District U.S. District Judge Sul Ozerden to conspiracy to possess with intent to distribute 500 grams or more of cocaine and 50 grams or more of actual methamphetamine, announced U.S. Attorney Mike Hurst and DEA Special Agent in Charge Stephen G. Azzam.
During the investigation of a drug conspiracy ring, DEA agents learned through cooperating sources that Brown was involved in transporting narcotics from Texas to the Mississippi Gulf Coast. At least three cooperating sources identified Brown in a photo lineup and provided information about her participation in the conspiracy. According to the sources, Brown would travel from Grenada, Mississippi, to Houston, Texas, where she would pick up the methamphetamine, cocaine or large amounts of United States currency and then travel to the Gulf Coast. During another individual’s arrest, agents located some of the methamphetamine that was involved in the conspiracy, which had a 90% purity level.
A Federal Grand Jury returned an indictment against Brown on August 7, 2017. DEA Agents arrested Brown on August 28, 2017, in Grenada, Mississippi.
Brown will be sentenced on May 17, 2018, by Judge Ozerden, and she faces a maximum penalty of life in prison and a $10 million fine.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Government Settles Claims Against Accountant for Tainted Compounding Pharmacy ProceedsRead the Press Release
Jacksonville, FL – Ronald Combs and the Ronald Combs Healthmark Trust have agreed to pay to the government $650,000 to resolve allegations that Combs wrongfully deposited tainted compounding pharmacy proceeds into the Ronald Combs Healthmark Trust.
The United States previously settled allegations that QMedRx, a compound pharmacy in Maitland, Florida, knowingly billed federal healthcare programs for services that were not reimbursable and thus violated the False Claims Act. In the case at hand, the government contends that proceeds from QMedRx’s improper activities were deposited into the Healthmark Investment Trust and that Combs withdrew funds from the Healthmark Investment Trust and deposited them into the Ronald Combs Healthmark Trust. The government contends that Combs was not entitled to withdraw these funds, as they represented the ill-gotten gains of QMedRx’s misconduct, and the withdrawal was otherwise improper under state law.
“The United States Attorney’s Office is committed to protecting TRICARE and other federal health care programs from any improper practice that harms our nation’s subsidized health programs,” said U.S. Attorney Maria Chapa Lopez. “The diligence required in this case aptly demonstrates the lengths to which we will go to protect the fiscal integrity of these programs.”
“This settlement is the result of the Defense Criminal Investigative Service’s continuing commitment to protect the integrity of the U.S. Department of Defense health care program (TRICARE) against fraud, waste, and abuse,” said Special Agent in Charge John F. Khin, Southeast Field Office. “In partnership with the Department of Justice, DCIS will pursue all remedies to recover ill-gotten proceeds from fraudulent schemes.”
This case illustrates the government’s continued emphasis on pursuing compounding pharmacies that have defrauded federal health care programs. In the Middle District of Florida, the government has recovered almost $60 million in fines and penalties for compounding cases. In fiscal year 2017, over $700 million was recovered in affirmative civil enforcement cases.
Today’s resolution illustrates the government’s commitment to combating improper practices that implicate the nation’s federally subsidized health care programs, using all statutory and common law remedies available to address such schemes. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Department of Justice and the Defense Criminal Investigative Service. It was prosecuted by Assistant United States Attorney Shea Gibbons, with assistance from Assistant United States Attorney Chris Sabis in the Middle District of Tennessee.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Georgia Man Sentenced to Probation for Transporting Stolen Car Across State LinesRead the Press Release
PITTSBURGH - A Georgia man has been sentenced in federal court to two years’ probation with six months’ home detention on his conviction of interstate transportation of a stolen vehicle, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Tom Smith, 55, of Atlanta, Georgia.
According to information presented to the court, on or about July 1, 2015, Smith transported a stolen Range Rover Sport, valued at $74,000, from the Commonwealth of Pennsylvania across state lines into the State of West Virginia.
Prior to imposing sentence, Judge Cercone stated that the sentence satisfies all of the factors set forth under 18 U.S.C. § 3553.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Monroeville Police Department for the investigation leading to the successful prosecution of Smith.
Garciasville Resident Sentenced for Trafficking CocaineRead the Press Release
BROWNSVILLE, Texas – A 33-year-old Garciasville resident has been ordered to federal prison for cocaine trafficking, announced Acting U.S. Attorney Ryan K. Patrick. Jorge Barrera pleaded guilty Nov. 16, 2017.
Today, U.S. District Judge Rolando Olvera sentenced Barrera to a total of 48 months imprisonment to be immediately followed by two years of supervised release.
On Aug. 16, 2017, authorities began an investigation after a Chevrolet Impala was discovered at the Veterans port of entry in Brownsville that contained more than seven kilograms of cocaine. Authorities conducted a controlled delivery of the vehicle at the La Plaza Mall in McAllen. Surveillance agents were on hand in the parking lot and observed Barrera arrive and park next to the cocaine-loaded vehicle. Soon after his arrival, Barrera got in the Impala and attempted to drive away. However, federal agents surrounded him and took him into custody.
Authorities found more than seven kilograms of cocaine concealed in the vehicle’s dashboard.
Barrera will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Elena Salinas prosecuted the case.
Galveston Resident Sentenced for Two Child Pornography ChargesRead the Press Release
HOUSTON – A 36-year-old man from Galveston County has been ordered to federal prison following his guilty plea of receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Lavelas Luckey pleaded guilty Oct. 28, 2017.
Today, U.S. District Judge George C. Hanks ordered he serve 73 months in prison followed by 15 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Luckey first came to the attention of law enforcement after multiple images of child pornography were found associated with his online account. Authorities later conducted a search of Luckey’s residence which eventually led to the discovery of 107 videos and 638 images of child pornography.
Luckey admitted ownership of the child pornography as well as the online account he used to obtain it.
At the time of his plea, Luckey admitted to using peer-to-peer software to search for, download and obtain child pornography. He also admitted to distributing the child pornography through his online account.
The Pearland Police Department and the FBI conducted the investigation.
Assistant U.S. Attorney Julie N. Searle is prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Galax Residents Sentenced to Prison on Drug and Gun ChargesRead the Press Release
Abingdon, VIRGINIA – United States Attorney Rick A. Mountcastle announced today the sentencing of two Galax, Virginia men who were previously convicted of distributing methamphetamine and possessing a firearm in furtherance of their drug distribution activities.
Henry Aguliar, 25, and Pablo Hernandez, 28, were each sentenced last week in U.S. District Court in Abingdon to 130 months in prison. Both defendants previously pleaded guilty to one count of conspiracy to distribute 50 grams or more of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to evidence presented at previous hearings, Aguilar and Hernandez were both targeted by the Twin County Drug Task Force based upon information that they were distributing methamphetamine in the Galax area. A controlled purchase of methamphetamine was made from Aguilar, who was arrested and found to be in possession of methamphetamine, drug distribution paraphernalia, and a loaded .357 magnum revolver. Aguilar was interviewed and admitted that he and Hernandez had been receiving 1 pound of methamphetamine a week from a source in North Carolina, which was then being distributed in the Galax area. A search warrant executed at Hernandez's residence uncovered methamphetamine, drug ledgers, and two loaded handguns. Hernandez also admitted to receiving methamphetamine from a source in North Carolina. He further admitted that Aguilar was one of multiple individuals who sold methamphetamine for him in the area.
The investigation of the case was conducted by the Twin County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Zachary Lee prosecuted the case for the United States.
Former UPMC Claims Director Sentenced to Prison for Embezzling $846K through Ghost EmployeesRead the Press Release
PITTSBURGH – A Washington state resident has been sentenced in federal court to 24 months of imprisonment, followed by three years supervised release, and was ordered to pay approximately $846,819 in restitution on his conviction of embezzlement, United States Attorney Scott W. Brady announced today.
United States District Judge David Stewart Cercone, imposed the sentence on Ronald Larry Locy, 48, of Southeast Olympia, Washington.
According to information presented to the Court, at the time of the offense, Locy was the Senior Director of Claims for the UPMC Health Plan Claims Department. Over an eight-year period, Locy caused UPMC to pay two "ghost employees" of UPMC Health Plan, for work and bonuses to which those ghost employees were not entitled. The loss to UPMC Health Plan was approximately $846,819.
According to Judge Cercone, Locy’s scheme was sophisticated in that Locy falsified records and emails in order to conceal his ghost employee fraud.
U.S. Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Locy.
Former St. John Resident Arrested for Mail FraudRead the Press Release
St. Thomas, USVI – Shaquin Brodie, 20, a former resident of St. John, appeared for arraignment today before U.S. Magistrate Judge Ruth Miller after being arrested in Columbus, Ohio, on January 16, 2018, United States Attorney Gretchen Shappert announced. Brodie was arrested pursuant to an indictment and arrest warrant issued on January 11, 2018, by the District Court of the Virgin Islands charging him with mail fraud.
According to the indictment, between February 2016 and March 2017, Brodie filed in excess of 200 fraudulent insurance claims with the United States Postal Service for items he represented to be lost, damaged or stolen. The claims were valued in excess of $47,000.
If convicted, Brodie faces a maximum sentence of 20 years in prison and a $250,000 fine.
This case is being investigated by the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Former Southwest Airlines Baggage Handler Pleads Guilty to Violating Airport Security Requirements, Drug Smuggling, and Money LaunderingRead the Press Release
OAKLAND – Former Southwest Airlines baggage handler Keith Ramon Mayfield pleaded guilty in federal court in Oakland today to entering an airport area in violation of security requirements, conspiracy to distribute marijuana, and conspiracy to launder money, announced Acting United States Attorney Alex G. Tse; Federal Bureau of Investigation Special Agent in Charge John F. Bennett; and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. The Honorable Phyllis J. Hamilton, Chief United States District Judge, accepted the plea.
In his plea agreement, Mayfield, 37, of Oakland, admitted that he conspired with others to violate airport security requirements for the purpose of narcotics trafficking. Mayfield specifically admitted that on at least 40 occasions from 2013 to 2015 he used his access to the Oakland International Airport as a baggage handler for Southwest Airlines to smuggle luggage containing a total of at least 250 kilograms of marijuana around the Transportation Security Administration (TSA) checkpoint to outbound passengers who had already cleared the TSA security checkpoint. These passengers then flew to their destinations with unscreened luggage containing marijuana that was then sold in destination cities throughout the United States. Mayfield also admitted shipping a total of over 100 kilograms of marijuana via Southwest Cargo to various cities throughout the United States for distribution. Mayfield also admitted that, as a baggage handler for Southwest Airlines, he abused a position of public and private trust in a manner that significantly facilitated the commission and concealment of his crimes. In addition, Mayfield admitted that he conspired to launder money by having co-conspirators make cash deposits of drug trafficking proceeds totaling at least $51,000 at bank branches in Texas and that he subsequently withdrew most of those funds as cash in Northern California.
On May 28, 2015, a federal grand jury indicted Mayfield along with 12 co-defendants. On January 16, 2018, the government filed a superseding information charging Mayfield with one count of conspiracy to distribute, and to possess with intent to distribute, marijuana, in violation of 21 U.S.C. § 846; one count of entering an airport area in violation of security requirements, in violation of 49 U.S.C. §§ 46314(a), (b)(2); and one count of conspiracy to launder money, in violation of 18 U.S.C. § 1956(h). Under his plea agreement, Mayfield pleaded guilty to all three counts.
Chief Judge Hamilton scheduled Mayfield’s sentencing hearing for 2:30 p.m. on June 6, 2018. Defendant will remain free on a $200,000 secured bond pending sentencing.
The maximum statutory penalty for a violation of 49 U.S.C. §§ 46314(a), (b)(2) is ten years’ imprisonment and a fine of $250,000. The maximum statutory penalty for a violation of 21 U.S.C. §§ 846, 841(b)(1)(B)(vii) is 40 years’ imprisonment, a mandatory minimum sentence of five years’ imprisonment, and a fine of $5,000,000. The maximum statutory penalty for a violation of 18 U.S.C. § 1956(h) is 20 years’ imprisonment and a fine of $500,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Kathleen Turner and Vanessa Quant. The prosecution is the result of an investigation by the FBI, the IRS-CI, and the Alameda County Sheriff’s Office. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Former Sergeant Pleads Guilty to Assault of DetaineeRead the Press Release
David Prejean, a former Sergeant in the K-9 Unit of the Iberia Parish Sheriff’s Office (IPSO), pleaded guilty today to assaulting a pre-trial detainee at the Iberia Parish Jail (IPJ) by commanding his K-9 to bite the detainee, and by striking the detainee, all without justification, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Alexander C. Van Hook for the Western District of Louisiana.
According to the charges and other information presented in Court, Prejean was a K-9 Sergeant on the IMPACT Unit, a specialized unit at IPSO. On Dec. 6, 2012, Prejean was called to the Iberia Parish Jail to assist with a shakedown. During the course of the shakedown, an inmate—M.R.—turned to look at Prejean after being told not to, at which point Prejean threw M.R. to the ground and then commanded his dog to bite M.R. Prejean also struck M.R. several times. Despite the fact that M.R. had complied with Prejean’s commands and did not pose a threat to anyone on the rec yard, Prejean allowed the dog to bite M.R. for several seconds before pulling him off of M.R. Prejean’s unlawful use of force resulted in injury to M.R. Following the assault, Prejean wrote a false report designed to cover up his unjustified use of force.
“Every person in the United States, including those who are incarcerated, is protected by the U.S. Constitution,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “When the officers we expect to uphold the rights enshrined in the Constitution willfully violate them, the Justice Department will aggressively prosecute those officers and uphold the rule of law.”
“Law enforcement officers respond to dangerous situations and put their lives at risk every day to serve and protect the public,” said U.S. Attorney Alexander C. Van Hook. “For this sacrifice they have our thanks and respect. Officers also have a moral and legal obligation to protect the civil rights of those in their custody. Those officers who willfully abuse prisoners in their care and violate their rights will be held accountable.”
David Prejean, 38, of Lafayette, Louisiana, will be sentenced by U.S. District Court Judge Dee D. Drell, on May 18 in Alexandria, Louisiana.
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 New Iberia sergeant pleads guilty to assault of detaineeRead the Press Release
LAFAYETTE – David Prejean, a former Sergeant in the K-9 Unit of the Iberia Parish Sheriff’s Office (IPSO), pleaded guilty today to assaulting a pre-trial detainee at the Iberia Parish Jail (IPJ) by commanding his K-9 to bite the detainee, and by striking the detainee, all without justification, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Alexander C. Van Hook for the Western District of Louisiana.
According to the charges and other information presented in Court, Prejean was a K-9 Sergeant on the IMPACT Unit, a specialized unit at IPSO. On Dec. 6, 2012, Prejean was called to the Iberia Parish Jail to assist with a shakedown. During the course of the shakedown, an inmate—M.R.—turned to look at Prejean after being told not to, at which point Prejean threw M.R. to the ground and then commanded his dog to bite M.R. Prejean also struck M.R. several times. Despite the fact that M.R. had complied with Prejean’s commands and did not pose a threat to anyone on the rec yard, Prejean allowed the dog to bite M.R. for several seconds before pulling him off of M.R. Prejean’s unlawful use of force resulted in injury to M.R. Following the assault, Prejean wrote a false report designed to cover up his unjustified use of force.
“Every person in the United States, including those who are incarcerated, is protected by the U.S. Constitution,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “When the officers we expect to uphold the rights enshrined in the Constitution willfully violate them, the Justice Department will aggressively prosecute those officers and uphold the rule of law.”
“Law enforcement officers respond to dangerous situations and put their lives at risk every day to serve and protect the public,” said U.S. Attorney Alexander C. Van Hook. “For this sacrifice they have our thanks and respect. Officers also have a moral and legal obligation to protect the civil rights of those in their custody. Those officers who willfully abuse prisoners in their care and violate their rights will be held accountable.”
David Prejean, 38, of Lafayette, Louisiana, will be sentenced by U.S. District Court Judge Dee D. Drell, on May 18 in Alexandria, Louisiana.
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 Charity Executive, Arkansas Lobbyist Indicted for $1 Million Bribery SchemeRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that a former executive of a Springfield charity, who was also an Arkansas lobbyist has been indicted by a federal grand jury for his role in a nearly $1 million bribery conspiracy involving a Springfield, Mo., health care organization.
Milton Russell Cranford, also known as “Rusty,” 56, of Rogers, Arkansas, was charged in a nine-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Tuesday, Feb. 20, 2018. That indictment was unsealed and made public today upon Cranford’s arrest. An initial court appearance is scheduled tomorrow in the U.S. District Court in Fayetteville, Arkansas.
Cranford was both a lobbyist and an employee of Preferred Family Healthcare, Inc. (formerly known as Alternative Opportunities, Inc.), a nonprofit corporation headquartered in Springfield. Cranford served as an executive for the charity’s operations in the state of Arkansas. Cranford also operated two lobbying firms, The Cranford Coalition and The Capital Hill Coalition.
The indictment alleges that Cranford and co-conspirator Eddie Wayne Cooper, 51, of Melbourne, Arkansas, received $264,000 in secret kickback payments from co-conspirator Donald Andrew Jones, also known as “D.A.” Jones, of Willingboro, New Jersey, who was paid nearly $1 million by the charity in a bribery scheme that lasted almost six years, from February 2011 until January 2017.
Cooper, a former state representative in Arkansas from 2006 through January 2011, worked for The Cranford Coalition as a lobbyist and held a full-time position as regional director for Preferred Family Healthcare. Jones was a Philadelphia, Pennsylvania-based political operative who owned and operated the firm, D.A. Jones & Associates, which purported to provide political and advocacy services, including consulting, analysis, and public relations. Neither Cooper nor Jones are charged in the indictment with Cranford; they each have pleaded guilty in separate cases.
Cranford allegedly recommended to the charity’s chief financial officer, chief operating officer and chief executive officer to enter into a contractual arrangement with Jones for lobbying and advocacy services. Cranford influenced the charity in its award of the contract, the indictment says, then demanded payments to himself and Cooper of a portion of the funds Jones obtained from the charity in exchange for Cranford’s influence on Jones’s behalf.
According to the indictment, the charity paid Jones a total of $973,807 to provide advocacy services for the charity, including direct contact with legislators, legislators’ offices, and government officials, in order to influence elected and appointed public officials to the financial benefit of the charity, including attempting to steer grants and other sources of funding to the charity. Jones allegedly paid a total of $264,000 to Cranford and Cooper. Most of the funds were paid to Cranford or one of his firms, the indictment says.
In addition to the conspiracy, the indictment charges Cranford with eight counts of receiving a bribe by an agent of an organization that receives federal funds.
The indictment also contains a forfeiture allegation, which would require Cranford to forfeit to the government all property derived from the proceeds of the alleged offenses.
Garrison cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation, the FBI and the Offices of the Inspectors General from the Departments of Labor, Health and Human Services, Housing and Urban Development, Veterans Affairs, and the FDIC. This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas, and the Eastern District of Pennsylvania.
Former CEO of Sunnyvale-Based Tech Company Pleads Guilty to Insider Trading in His Company’s SecuritiesRead the Press Release
SAN JOSE – The founder and former chief executive officer of a Sunnyvale-based fiber optics equipment maker, Peter C. Chang, pleaded guilty today to insider trading and tender offer fraud, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Lucy H. Koh, United States District Judge, accepted Chang’s guilty plea earlier today.
Chang, 59, of Los Altos, Calif., was the President, Chief Executive Officer (CEO), and Chair of the Board of Directors of Alliance Fiber Optic Products, Inc. (AFOP), a manufacturer of fiber optic components based in Sunnyvale, Calif. AFOP is publicly traded on the NASDAQ. As part of his guilty plea, Chang admitted he used two brokerage accounts, held in the names of his brother and his wife, to purchase and sell AFOP stock. He further admitted that he had access to material nonpublic information about the company, and that his duty of confidentiality and company policies regarding insider trading prevented him from trading on the information.
Further, as part of his plea agreement, Chang admitted that on October 28, 2015, and February 18, 2016, he sold AFOP stock prior to two public announcements of the company’s earnings. The timing of these sales allowed Chang to avoid losses he would otherwise have incurred when the stock price dropped after the announcements. Chang further admitted that in March 2016, he purchased AFOP stock while he knew material nonpublic information about a potential acquisition of the company by a larger public company. The acquisition of AFOP was publicly announced on April 7, 2016.
Pursuant to today’s plea agreement, Chang pleaded guilty to all counts in a superseding information filed today charging Chang with three counts of securities fraud and insider trading, in violation of in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. §§ 240.10b-5 and 240.10b5-2, and one count of fraud in connection with a tender offer, in violation of 15 U.S.C. §§ 78n(e) and 78ff and 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d).
Judge Koh scheduled Chang’s sentencing for May 30, 2018. Chang faces a maximum statutory penalty for securities fraud and fraud in connection with a tender offer of 20 years in prison and a fine of $5 million, per count. Additional fines, periods of supervised release, and restitution also may be ordered, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Lloyd Farnham is prosecuting the case with the assistance of Jeremy Acala and Claudia Hyslop. The prosecution is the result of an investigation by the FBI. Additional assistance was provided by the San Francisco Regional Office of the Securities and Exchange Commission.
Former Arkansas State Judge Sentenced to Prison for Dismissing Cases in Exchange for Personal Benefits and Tampering with a WitnessRead the Press Release
A former Arkansas state judge was sentenced to five years in prison for perpetrating a seven-year-long fraud and bribery scheme in which he dismissed pending cases in exchange for personal benefits, including sexually related conduct, and then bribed a witness in an attempt to obstruct an official investigation into the scheme. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.
O. Joseph Boeckmann, 71, of Wynne, Arkansas, was sentenced by U.S. District Judge Kristine G. Baker of the Eastern District of Arkansas. Judge Baker also ordered the defendant to to serve three years of supervised release following his prison sentence and pay a fine of $50,000, to account for the financial harm he caused through his fraud scheme.
According to admissions in his plea agreement, from 2009 to 2015, Boeckmann corruptly used his official position as a district judge for the First Judicial Circuit of Arkansas to dismiss traffic citations and misdemeanor criminal charges for young men in exchange for acts that he claimed were “community service,” but which actually benefited Boeckmann himself. Boeckmann took official action to order these individuals to perform “community service” and used his access to these individuals during their purported “community service” to take photographs of them in compromising positions. In other cases, Boeckmann dismissed pending charges against defendants in exchange for sexually related conduct.
Boeckmann, who pleaded guilty to wire fraud and witness tampering in October 2017, admitted that the corrupt use of his office defrauded the State of Arkansas and its citizens of their right to Boeckmann’s honest services and also defrauded various cities and counties in Arkansas, as well as the State of Arkansas and the Arkansas courts, of money and property that they should have received as fines or fees from the individuals whose cases were fraudulently dismissed.
Boeckmann also admitted that during his scheme, he instructed various individuals not to tell anyone about their “community service” sentences. Then, after Boeckmann learned he was under investigation, he tampered with at least one witness in an attempt to keep his scheme secret. Specifically, in the fall of 2015, Boeckmann learned of a witness who had provided information to the Arkansas Judicial Discipline and Disability Commission (JDDC) regarding Boeckmann’s practice of imposing personally beneficial “community service” sentences. Boeckmann directed another individual to pay the witness to write a letter recanting the information the witness gave to the JDDC. According to his own admissions, Boeckmann did this in order to prevent that witness from providing truthful information about Boeckmann to law enforcement and to influence, delay and prevent that witness’s testimony in an official proceeding.
The FBI investigated this case with assistance of the Arkansas State Police and the JDDC. Trial Attorneys Peter Halpern, Jonathan Kravis and Simon Cataldo of the Criminal Division’s Public Integrity Section prosecuted the case, with assistance from Special Prosecutor Jack McQuary of the State of Arkansas Office of the Prosecutor Coordinator.
Federal Jury Finds Ocala Man Guilty of Conspiracy to Traffic over Two Kilograms of Methamphetamine and Trafficking One Kilogram of FentanylRead the Press Release
Ocala, Florida – A federal jury has found Tirso Hernandez-Astudillo (35, Ocala) guilty of conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine, and possession with the intent to distribute 400 grams or more of fentanyl. He faces a minimum mandatory penalty of 10 years, up to life imprisonment, on each count. Hernandez-Astudillo, a citizen of Mexico in the United States illegally, also faces potential deportation. He remains in federal custody pending a sentencing hearing on May 17, 2018.
According to court documents, on May 24, 2017, in a parking lot in Ocala, co-defendant Simon Rodriguez-Flores (48, Ocala) sold a cooperating witness approximately 4 ounces of crystal methamphetamine. On June 2, 2017, at the same location, Rodriguez-Flores delivered 2 kilograms of crystal methamphetamine to the same cooperating witness, but was arrested by agents from the Drug Enforcement Administration. The agents detained Hernandez-Astudillo, a passenger in Rodriguez-Flores’s car.
Immediately after the arrest, a search warrant was executed at the residence Hernandez-Astudillo shared with his cousin and co-defendant, Gilberto Astudillo-Carbajal (34, Ocala). Agents recovered items used in the manufacture and packaging of crystal methamphetamine from the home. From another trailer across the street, where Hernandez-Astudillo had been earlier in the day, agents recovered a suspicious package containing approximately one kilogram of an undetermined powdery substance. Subsequent analysis of the substance revealed that it contained fentanyl.
Rodriguez-Flores and Astudillo-Carbajal have previously pleaded guilty and remain in custody pending sentencing.
This case was investigated by the Gainesville Resident Office of the Drug Enforcement Administration, assisted by task force officers from the Gainesville Police Department, the Alachua County Sheriff’s Office, the Ocala Police Department, the Levy County Sheriff’s Office, and the Union County Sheriff’s Office. The Marion County Unified Drug Enforcement Strike Team assisted in the execution of the search warrant and the arrests. The case is being prosecuted by Assistant United States Attorney Dale R. Campion.
Federal Jury Finds Charlotte Man Guilty of Possession, Receipt and Transportation of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A federal jury sitting in Charlotte convicted Jose Antonio Hendricks, 59, of Charlotte, of possession, receipt and transportation of child pornography following a two-day trial, announced R. Andrew Murray U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over the trial.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.
“Child predators often seek shelter in the anonymity the internet offers to exploit and harm innocent children. This is a global epidemic that we must confront with an aggressive, technology-driven response,” said U.S. Attorney Murray. “Today’s guilty verdict sends a message that the internet is no longer a safe haven for those who engage in child sexual exploitation. Online predators will be located, prosecuted and ultimately removed from society and away from vulnerable children.”
According filed court documents, trial evidence and witness testimony, on October 14, 2014, law enforcement became aware that an individual, later identified as Hendricks, was using a peer-to-peer network to view and to trade child pornography online. Trial evidence established that between October 2014 and February 2015, law enforcement connected to the IP address, later identified as Hendricks’, approximately 70 times. During a vast majority of these sessions, law enforcement were able to confirm that Hendricks was sharing either child pornography or child erotica.
According to evidence presented at trial, law enforcement executed a search warrant at Hendrick’s residence on March 12, 2015, seizing a tablet and the tablet’s SD card. A forensic examination of the devices revealed that they contained numerous images of child pornography. There was also evidence that Hendricks was accessing numerous child pornography websites that include sadistic or masochistic images of children.
The charges for transportation of child pornography and receipt of child pornography carry a minimum sentence of five years and a maximum of 20 years in prison. The charges for possessing and accessing child pornography carry a maximum sentence of 20 years. A sentencing date has not been set.
The FBI’s Crimes Against Children Squad investigated the case. Assistant U.S. Attorneys Cortney Randall and William Stetzer of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
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 the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Jury Convicts South Carolina Man of Firearms ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today that, BRANDON AHART HAMPTON, a resident of Florence, South Carolina, was convicted in a two-day jury trial before United States District Judge Terrance W. Boyle. The jury found HAMPTON guilty of Brandishing a Firearm During and in Relation to a Crime of Violence. He previously pled guilty to a charge of Hobbs Act Robbery on February 6, 2018.
The evidence at trial showed that on December 5, 2014, HAMPTON entered the ABC Store #8 in Spring Lake, North Carolina armed with a handgun. HAMPTON pointed the firearm at the clerk’s head and threatened to kill a store clerk. HAMPTON moved the clerk at gunpoint to the back office where the safe was located. HAMPTON threatened to shoot the clerk when the clerk could not get the safe open fast enough. HAMPTON fled the store and was captured later.
HAMPTON is scheduled to be sentenced in May 2018.
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.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Alcohol, Beverage Control Law Enforcement Division, the Cumberland County Sheriff’s Office, Ft. Bragg Military Police and the Spring Lake Police Department. Assistant United States Attorney Jane J. Jackson represented the government in this case.
Eagle Butte Man Charged with Firearm ViolationsRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person and Possession of a Firearm with an Obliterated Serial Number.
Christian Kersten, age 30, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 16, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $500,000 fine, 6 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 22, 2018, Kersten, having been convicted of a crime punishable by imprisonment for a term exceeding one year, being a fugitive from justice, and being an unlawful user of and addicted to a controlled substance, knowingly received and possessed a firearm, which had been shipped and transported in interstate commerce and foreign commerce. Additionally, the manufacturer’s serial number had been obliterated from the firearm.
The charges are merely an accusation and Kersten is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Kersten was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
District Man Sentenced to 10 Years in Prison for Pistol-Whipping Man in Northwest WashingtonRead the Press Release
WASHINGTON – Jahmar Thaxter, 26, of Washington, D.C., was sentenced today to a 10-year prison term on charges stemming from a pistol-whipping assault of a man that took place behind a market in Northwest Washington, announced U.S. Attorney Jessie K. Liu.
Thaxter was found guilty by a jury in September 2017 of charges of assault with a dangerous weapon, assault with significant bodily injury while armed, conspiracy, and related firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Kimberley S. Knowles. Following his prison term, Thaxter will be placed on three years of supervised release.
According to the government’s evidence, on the evening of Oct. 23, 2016, Thaxter and a second man walked into the back yard of Move and Groove, a Caribbean market in the 5100 block of Georgia Avenue NW. The victim, who was at the market, did not know Thaxter, but he did know the man who was with him. That man accused the victim of talking about his potential involvement in a shooting in Northwest Washington. He and Thaxter then assaulted the victim, pointing guns at him and pistol-whipping him, causing lacerations to the victim’s head. During this attack, Thaxter’s eyeglasses fell off. Thaxter continued to kick and pistol-whip the victim while his accomplice took and then discarded the victim’s wallet.
The eyeglasses were recovered and tested for DNA, and the major contributor profile matched the defendant’s DNA profile. An investigation by the Metropolitan Police Department (MPD) led to Thaxter’s arrest on Jan. 16, 2017, and he has remained in custody ever since. A warrant has been issued for the arrest of the other man who is believed to have participated in the attack, but he remains at large at this time.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department, particularly the detectives from the Fourth Police District. She also expressed appreciation for the assistance of the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Assistant U.S. Attorneys Michael Romano and Alyse Constantinide; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Paralegal Specialist Debra McPherson; Litigation Technology Specialist Anisha Bhatia; Victim/Witness Advocate Diana Lim, and Supervisory Victim/Witness Services Coordinator David Foster.
Finally, she commended the work of Assistant U.S. Attorneys Lauren N. Bressack and Ethan Carroll, who prosecuted the matter.
District Man Pleads Guilty to Murder Charges in Slayings of Two Housemates in Northeast WashingtonRead the Press Release
WASHINGTON – David Bright, 31, of Washington, D.C., pled guilty today to two counts of second-degree murder while armed in the slayings of two of his housemates at their rooming house in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Bright pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 33 years in prison. The Honorable Ronna L. Beck scheduled sentencing for May 11, 2018.
According to a proffer of facts submitted at today’s plea hearing, on Feb. 18, 2016, Bright was staying in a rooming house in the 500 block of 58th Street NE. The victims, Clifton Francis and David Watkins, were Bright’s housemates. Two other individuals were also staying in the home at the time, one permanently and one temporarily.
At approximately 12:55 p.m., Bright entered the house, where Mr. Francis and Mr. Watkins were sitting in the living room watching television; one of the other housemates was in the kitchen. Bright went upstairs, where his bedroom was located, and then came running down the stairs. He pointed a gun in the direction of Mr. Francis and began firing at close range.
Mr. Francis, who received multiple gunshot wounds to the chest and head, immediately slumped over the arm of the couch and fell to the floor. Mr. Watkins started yelling words to the effect of “what are doing, are you crazy?” Bright then turned the gun towards Mr. Watkins and began firing, hitting him in the chest. Mr. Watkins managed to crawl to his bedroom, and yelled for the remaining housemate to call the police. Bright ran into the kitchen and came face-to-face with this housemate. He pointed the gun at his face, but the housemate was able to run into a bedroom and closed the door. Bright then fled the house.
The next day, Feb. 19, 2016, at approximately 10:40 a.m., Bright was arrested by the Capital Area Regional Fugitive Task Force as he walked out of a barbershop in Seat Pleasant, Maryland. Bright was exiting the barbershop after having shaved off his dreadlocks. He has remained in custody since his arrest.
Bright had driven a Mitsubishi Galant to the barber shop. Officers searched the car and recovered the murder weapon, a Glock 22 .40 caliber firearm, as well as 91 rounds of ammunition and three firearm magazines (two full, one empty).
Mr. Watkins, 45, and Mr. Francis, 51, both died as a result of the gunshot wounds.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force and the District of Columbia Department of Forensic Sciences. She acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Magdalena Acevedo, Victim/Witness Advocate Jim Brennan, and former Paralegal Specialist Kendra Johnson. Finally, she commended the work of Assistant U.S. Attorney Kimberley C. Nielsen, who investigated and prosecuted the matter.
Deputy Attorney General Rosenstein Highlights Ongoing and Intensive Work to Solve 2001 Murder of Federal Prosecutor Tom WalesRead the Press Release
Deputy Attorney General Rod Rosenstein joined U.S. Attorney Annette L. Hayes, Seattle Mayor Jenny A. Durkan, the Wales family, the National Association of Former United States Attorneys Foundation, and other law enforcement partners in Seattle today to bring continued and deserved attention to the Department of Justice investigation into the 2001 murder of Assistant U.S. Attorney Thomas C. Wales.
The Department of Justice remains committed to a reward of up to one million dollars for information leading to the arrest and conviction of those responsible. In addition to and separate from the Department’s reward, the National Association of Former United States Attorneys Foundation President Mike McKay announced that his organization is offering up to a $525,000 reward to the same individuals as the Justice Department for information leading to the Department’s prosecution of those responsible for Wales’ murder. Wales worked as a federal prosecutor in the Western District of Washington for 18 years before he was shot and killed in his home the evening of Oct. 11, 2001.
“Any attack on a law enforcement officer is an attack on our entire justice system,” Deputy Attorney General Rosenstein said. “The Wales family has shown incredible strength, courage, and devotion. As Deputy Attorney General, I intend to see that we leave no stone unturned in the search for the killer who murdered Tom Wales. We will continue to pursue this case for as long as it takes to achieve justice. The killer will be held accountable.”
“The murder of Tom Wales more than 16 years ago remains an affront to the rule of law and a devastating loss to all who knew Tom and the community he so loyally served,” said U.S. Attorney Annette L. Hayes. “I am deeply grateful to the National Association of Former United States Attorneys and their foundation for establishing a separate reward in this case. As the Department of Justice has made clear time and again — we will never rest until justice is done in this case.”
A task force led by the Federal Bureau of Investigation and Seattle Police Department continues to work actively and intensively. The investigative team has been able to successfully investigate thousands leads and continues to devote resources to focused investigative avenues. In just the last 12 months, the investigative team has served nearly 50 new subpoenas and has pursued hundreds of investigative actions.
Investigators believe that there are people who have information and hope that the significant reward provides an additional incentive for coming forward. The task force asks the public to help partner in its efforts for justice, and closure for the Wales family.
“The FBI remains committed to bringing closure for the Wales family,” said FBI Special Agent in Charge Jay S. Tabb, Jr., of the FBI’s Seattle Field Division. “We continue to offer a reward of up to $1 million for information that helps us resolve this investigation. We know that there are people with pertinent knowledge and we are pleading with you to come forward to the FBI. Please help us solve this case for the Wales family.”
“We haven’t forgotten about Tom Wales, and are leaving no stone unturned in this investigation,” said Seattle Police Chief Carmen Best. “We will continue to work in collaboration with our federal partners to bring the individual responsible for his brutal murder to justice.”
“Local prosecutors will continue our partnership with federal investigators on this case, said Dan Satterberg, King County Prosecuting Attorney. “We are determined to solve this terrible crime.”
The Seattle Prosecutor Murder (SEPROM) Task Force is a joint effort by the FBI, the Seattle Police Department, the Department of Justice, and the King County Prosecuting Attorney’s Office. It includes agents, detectives, analysts, two Department of Justice prosecutors, a King County prosecutor, and FBI personnel assisting across the nation to cover far-ranging leads.
Anyone with information is encouraged to contact the FBI and can do so confidentially by phone at (206) 622-0460 or by e-mail at [email protected]. People can also send anonymous tips to the FBI at 1110 Third Avenue, Seattle, WA, 98101.
The complete library of information, including multi-media materials for download and use, the FBI Seeking Information poster, details about the tip lines, and more can be found at https://www.fbi.gov/wanted/seeking-info/thomas-crane-wales.Deputy Attorney General Rosenstein Highlights Ongoing and Intensive Work to Solve 2001 Murder of Federal Prosecutor Tom WalesRead the Press Release
WASHINGTON — Deputy Attorney General Rod Rosenstein joined U.S. Attorney Annette L. Hayes, Seattle Mayor Jenny A. Durkan, the Wales family, the National Association of Former United States Attorneys Foundation, and other law enforcement partners in Seattle today to bring continued and deserved attention to the Department of Justice investigation into the 2001 murder of Assistant U.S. Attorney Thomas C. Wales.
The Department of Justice remains committed to a reward of up to one million dollars for information leading to the arrest and conviction of those responsible. In addition to and separate from the Department’s reward, the National Association of Former United States Attorneys Foundation President Mike McKay announced that his organization is offering up to a $525,000 reward to the same individuals as the Justice Department for information leading to the Department’s prosecution of those responsible for Wales’ murder. Wales worked as a federal prosecutor in the Western District of Washington for 18 years before he was shot and killed in his home the evening of Oct. 11, 2001.
“Any attack on a law enforcement officer is an attack on our entire justice system,” Deputy Attorney General Rosenstein said. “The Wales family has shown incredible strength, courage, and devotion. As Deputy Attorney General, I intend to see that we leave no stone unturned in the search for the killer who murdered Tom Wales. We will continue to pursue this case for as long as it takes to achieve justice. The killer will be held accountable.”
“The murder of Tom Wales more than 16 years ago remains an affront to the rule of law and a devastating loss to all who knew Tom and the community he so loyally served,” said U.S. Attorney Annette L. Hayes. “I am deeply grateful to the National Association of Former United States Attorneys and their foundation for establishing a separate reward in this case. As the Department of Justice has made clear time and again — we will never rest until justice is done in this case.”
A task force led by the Federal Bureau of Investigation and Seattle Police Department continues to work actively and intensively. The investigative team has been able to successfully investigate thousands leads and continues to devote resources to focused investigative avenues. In just the last 12 months, the investigative team has served nearly 50 new subpoenas and has pursued approximately 100 leads.
Investigators believe that there are people who have information and hope that the significant reward provides an additional incentive for coming forward. The task force asks the public to help partner in its efforts for justice, and closure for the Wales family.
“The FBI remains committed to bringing closure for the Wales family,” said FBI Special Agent in Charge Jay S. Tabb, Jr., of the FBI’s Seattle Field Division. “We continue to offer a reward of up to $1 million for information that helps us resolve this investigation. We know that there are people with pertinent knowledge and we are pleading with you to come forward to the FBI. Please help us solve this case for the Wales family.”
“We haven’t forgotten about Tom Wales, and are leaving no stone unturned in this investigation,” said Seattle Police Chief Carmen Best. “We will continue to work in collaboration with our federal partners to bring the individual responsible for his brutal murder to justice.”
“Local prosecutors will continue our partnership with federal investigators on this case, said Dan Satterberg, King County Prosecuting Attorney. “We are determined to solve this terrible crime.”
The Seattle Prosecutor Murder (SEPROM) Task Force is a joint effort by the FBI, the Seattle Police Department, the Department of Justice, and the King County Prosecuting Attorney’s Office. It includes agents, detectives, analysts, two Department of Justice prosecutors, a King County prosecutor, and FBI personnel assisting across the nation to cover far-ranging leads.
Anyone with information is encouraged to contact the FBI and can do so confidentially by phone at (206) 622-0460 or by e-mail at [email protected]. People can also send anonymous tips to the FBI at 1110 Third Avenue, Seattle, WA, 98101.
The complete library of information, including multi-media materials for download and use, the FBI Seeking Information poster, details about the tip lines, and more can be found at https://www.fbi.gov/wanted/seeking-info/thomas-crane-wales.# # #
Cross Lanes man pleads guilty to receiving child pornographyRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man pled guilty today to a child pornography crime, announced United States Attorney Mike Stuart. Charles William Lourett, 62, entered his guilty plea to receiving child pornography. U.S. Attorney Stuart commended the investigative efforts of the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Parkersburg Police Department, the FBI, and the FBI Violent Crimes Against Children Task Force.
U.S. Attorney Stuart said, “We have no tolerance for predators or these disgusting crimes. We will use every tool at our disposal to aggressively prosecute those who use the Internet to target and exploit children.”
Lourett admitted that on September 22, 2016, he received a video of a prepubescent minor engaged in sex acts. The video was received on Lourett’s computer located at his residence. The investigation revealed that Lourett was using a peer-to-peer file sharing program to download, receive, and distribute child pornography. Lourett further admitted to possessing over 600 images and videos of minors engaged in sex acts.
Lourett faces at least five and up to 20 years in federal prison when he is sentenced on May 22, 2018. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
First Assistant United States Attorney Lisa G. Johnston and Assistant United States Attorney Jennifer Rada Herrald are in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Corpus Christi Man in Custody for Multiple Sexual Exploitation ChargesRead the Press Release
CORPUS CHRISTI, Texas - A 30-year-old Corpus Christi man has been charged with multiple child sexual exploitation crimes, announced U.S. Attorney Ryan K. Patrick.
Matthew Joseph Lucio is set to appear in federal court before B. Janice Ellington at 2:00 p.m. today.
He is charged with two counts of online solicitation and two counts of production of child pornography.
According to the criminal complaint filed Feb. 16, in November 2017, authorities received information that Lucio allegedly solicited a minor female via an internet messaging application for sexual intercourse. Law enforcement identified the minor female who confirmed the abuse, according to the charges. Days later, law enforcement received another report that Lucio allegedly solicited a different minor female via an internet messaging application for sexual intercourse. The complaint alleges authorities identified the second minor female who also confirmed the abuse.
The charges indicate that law enforcement obtained a search warrant for Lucio’s residence, after which agents seized several digital devices and located narcotics. Forensic analysis of the devices led to the discovery of videos depicting the sexual assault of two different minor females, according to the complaint. Both minor females were located and also confirmed the alleged abuse.
The complaint further indicates that Lucio allegedly drugged all four minor females before they were sexually assaulted
If convicted, Lucio faces a minimum of 10 years and up to life in federal prison for the online solicitation of a minor charges and a minimum of 15 and up to 30 years for production of child pornography. Lucio also faces a possible $250,000 maximum fine on each charge, if convicted.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of lawCitizen of El Salvador Sentenced to 42 Months for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MIGUEL LARA, 47, a citizen of El Salvador last residing in Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 42 months of imprisonment for trafficking cocaine.
According to court documents and statements made in court, in September 2016, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force began an investigation into the cocaine trafficking activities of Christian Paulino Rodriguez. The investigation revealed that Rodriguez’s cocaine supplier was LARA, the co-owner of Café Luna, a restaurant in Stamford. In November 2016, an individual working with law enforcement arranged to purchase five kilograms of cocaine from Rodriguez for a price of $28,000 per kilogram. On November 15, 2016, Task Force officers arrested LARA and Rodriguez after LARA delivered the cocaine to a prearranged location.
LARA has been detained since his arrest. On November 27, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, 500 grams or more of cocaine.
Rodriguez, a citizen of the Dominican Republic, pleaded guilty to the same charge on July 18, 2017. On November 21, he was sentenced to 42 months imprisonment.
LARA and Rodriguez face immigration proceedings when they are released from prison.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stamford and Norwalk Police Departments. The case was prosecuted Assistant U.S. Attorney Joseph Vizcarrondo.
Central Valley Drug Dealer Sentenced to More Than Sixteen Years in PrisonRead the Press Release
OAKLAND – Ismael Mendoza Rodriguez was sentenced today to 200 months in prison for conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine, and possession of a firearm in furtherance of drug trafficking, announced Acting United States Attorney Alex G. Tse and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
Mendoza Rodriguez, 37, of Turlock, pleaded guilty to the charges on July 14, 2017. As part of his plea agreement, Mendoza Rodriguez acknowledged that he participated in a conspiracy to traffic methamphetamine and cocaine. Specifically, Mendoza Rodriguez admitted that on four separate occasions in 2015 – March 10, May 1, July 14, and August 17 – he met with an undercover police officer and sold him a total of two pounds of methamphetamine and one-half kilogram of cocaine.
On November 13, 2015, law enforcement authorities executed a search warrant at Mendoza Rodriguez’s home in Turlock. Inside, authorities found approximately ten pounds of methamphetamine underneath the bathroom sink. In the master bedroom, law enforcement found approximately $34,455. Mendoza Rodriguez admitted that the cash represented the proceeds of his drug sales. Agents also found three firearms in the master bedroom: a loaded .22 caliber pistol on a bedside dresser, a .30 caliber rifle in the closet, and a Mossberg 12-gauge shotgun with an obliterated serial number also in the closet. Mendoza Rodriguez admitted that he possessed the .22 pistol in furtherance of drug trafficking. On the floor of the master bedroom, agents found a cooler containing more than 50 grams of methamphetamine. Agents arrested Mendoza Rodriguez while executing the search warrant and he has remained in custody since then.
On November 19, 2015, a federal grand jury indicted Mendoza Rodriguez charging him and twelve co-defendants with conspiracy to distribute and possess with intent to distribute controlled substances, in violation of 21 U.S.C. §§ 846 & 841(a)(1). The indictment also charged Mendoza Rodriguez with possession of a firearm in furtherance of drug trafficking, in violation of 21 U.S.C. § 924(c). Pursuant to his plea agreement, Mendoza Rodriguez pleaded guilty to both charges.
Mendoza Rodriguez’s sentence brings to seven the number of defendants sentenced as part of the conspiracy to distribute and possess with intent to distribute controlled substances. The six other defendants sentenced include the following:
Defendant
Age/
Residence
Charges
Status
Jesus Guadalupe Rojas
32/
Turlock
Distribution of methamphetamine,
21 U.S.C. §§ 841(a)(1)
Sentenced on June 14, 2017, to 24 months in prison and 3 years supervised release.
Jose Armando Mendoza Linares
42/
Turlock
Conspiracy to distribute and possess with intent to distribute methamphetamine,
21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on October 25, 2017, to 60 months in prison and 5 years supervised release.
Gabriel Estrada
41/
Compton
Conspiracy to distribute and possess with intent to distribute cocaine,
21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on December 13, 2017, to 70 months in prison and 3 years supervised release
Vanessa Valdez
31/ Chula Vista
Conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine,
21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on December 13, 2017, to 22 months in prison and 3 years supervised release.
Elias Dominguez
46/
Patterson
Conspiracy to distribute and possess with intent to distribute methamphetamine,
21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on January 24, 2018, to 55 months in prison and 5 years supervised release.
Carlos Martinez
26/
Hayward
Conspiracy to distribute and possess with intent to distribute cocaine,
21 U.S.C. §§ 846 & 841(a)(1)
Sentenced on February 21, 2018, to 30 months in prison and 3 years supervised release.
Assistant U.S. Attorneys Christiaan Highsmith, Sheila Armbrust, Katie Burroughs Medearis, and Gregg Lowder are prosecuting the case with the assistance of Theresa Benitez, Ana Guerra, and Michelle Alter Eck. The prosecution is the result of a investigation by the DEA, the Concord Police Department, and the IRS Criminal Investigations. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Carlsbad Man Sentenced to Thirteen Years in Federal Prison for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – Mia Coy Campbell, 34, of Carlsbad, N.M., was sentenced yesterday afternoon in federal court in Las Cruces, N.M., in two cases to a total of 156 months of imprisonment for violating the federal firearms laws by unlawfully possessing firearms and ammunition. Campbell will be on supervised release for three years after completing his prison sentence.
Campbell’s sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Special Agent in Charge John J. Durastanti, Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Kent Waller of the Carlsbad Police Department, and Commander James McCormick of the Pecos Valley Drug Task Force (PVDTF).
Campbell was prosecuted under a federal anti-violence initiative that targets the “worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Campbell was prosecuted in two separate criminal cases for unlawfully possessing firearms in July 2015 and Sept. 2015. According to court records, Campbell was prohibited from possessing firearms or ammunition because of his prior felony convictions for possession of methamphetamine and escaping from a correctional institution.
In the first case, Campbell was arrested on a criminal complaint in Sept. 2015, after law enforcement officers found an assault rifle, which Campbell allegedly used to shoot at an occupied residence in Carlsbad, when they executed a search warrant at a residence in Roswell, N.M. Campbell subsequently was indicted in the case in Oct. 2015, and was charged with unlawfully possessing a firearm in Eddy County on Aug. 4, 2015. The indictment in the first case was superseded in Feb. 2016, to charge Campbell with two counts of being a felon in possession of a firearm based on his possession of firearms on July 31, 2015 and Aug. 4, 2015, and one count of unlawfully possessing a machinegun on July 31, 2015.
On Aug. 8, 2016, Campbell entered a guilty plea to the superseding indictment in the first case. In entering the guilty plea, Campbell admitted that on July 30 and 31, 2015, he possessed an assault rifle, which is considered a machinegun under federal law. Campbell also admitted that on Aug. 4, 2015, he unlawfully possessed a pistol. Campbell acknowledged that he was prohibited from possessing firearms as the result of his status as a convicted felon. During yesterday’s sentencing hearing, Campbell was sentenced to 60 months in prison followed by three years of supervised release for his conviction in the first case.
With respect to the second case, Campbell was arrested in Oct. 2015, for unlawfully possessing a firearm based on investigation conducted by the Pecos Valley Drug Task Force (PVDTF) and FBI agents on Sept. 24, 2015. According to the criminal complaint, on that day, the PVDTF and FBI arrested Campbell on the federal arrest warrant issued in the first case as Campbell was walking away from a canopy that covered a partially disassembled go-cart at his residence. When arrested, Campbell’s hands were dirty and greasy and it appeared as if he had been working on the go-cart. A smoldering cigarette near a tool bag by the go-cart drew an officer’s attention where the officer found a firearm. A search of Campbell incident to arrest revealed that he had a pack of cigarettes in his pocket containing the same type of cigarette that was smoldering on the ground near the go-cart. On Nov. 5, 2015, Campbell was indicted and charged with being a felon in possession of a firearm on Sept. 24, 2015.
On March 24, 2016, a federal jury convicted Campbell of being a felon in possession of a firearm in the second case. During yesterday’s sentencing hearing, Campbell was sentenced to 96 months of imprisonment for his conviction in the second case, which is to run consecutive to the 60 months of imprisonment imposed on the conviction in the first case. Campbell also was sentenced to a three-year term of supervised release, which is to run concurrent to the supervised release term imposed in the first case.
These cases were investigated by the Las Cruces and Roswell offices of the FBI, the Carlsbad Police Department and the Pecos Valley Drug Task Force with assistance from the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and were prosecuted by Assistant U.S. Attorneys Randy M. Castellano and John Andrew Balla of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Bronx Man Pleads Guilty in Manhattan Federal Court to Attempting to Provide Material Support to ISIS and Passport Fraud in Furtherance of TerrorismRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, announced that SAJMIR ALIMEHMETI, a/k/a “Abdul Qawii,” pled guilty to attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), and to committing passport fraud in order to facilitate an act of international terrorism. ALIMEHMETI pled guilty today to a Superseding Indictment in Manhattan federal court before U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Sajmir Alimehmeti took steps to travel overseas to support ISIS’s terror campaign. He also bought military-type weapons and assisted another to get travel documents, equipment, and encryption technology to fight with ISIS in Syria. Thanks to the FBI-NYPD Joint Terrorism Task Force, Alimehmeti now awaits sentencing for his admitted crimes in support of a terrorist organization.”
According to the allegations in the Superseding Indictment and the Complaint filed in this case, statements made during the plea proceeding, and other documents filed in the public record:
In October 2014, ALIMEHMETI attempted to enter the United Kingdom but was denied entry after U.K. authorities found camouflage clothing and nunchucks in his luggage. About two months later, in December 2014, ALIMEHMETI was again denied entry into the United Kingdom, this time after U.K. authorities found that his cellphone contained images of ISIS flags. Further forensic examination of the contents of the cellphone and ALIMEHMETI’s laptop computer showed numerous indicia of ALIMEHMETI’s support for ISIS, including a photograph of ALIMEHMETI with an ISIS flag in the background, images of ISIS fighters in the Middle East, a photograph of ALIMEHMETI making a gesture of support for ISIS, various files relating to jihad and martyrdom, and electronic communications in which ALIMEHMETI assisted another ISIS supporter in efforts to travel to Syria to join ISIS by providing contact information for an ISIS affiliate who could facilitate the travel.
After returning to the United States, ALIMEHMETI continued to support ISIS. Among other things, ALIMEHMETI displayed an ISIS flag in his apartment in the Bronx and, in the course of recorded meetings with undercover law enforcement employees, ALIMEHMETI played multiple pro-ISIS propaganda videos on his computer and cellphone, including videos of ISIS fighters decapitating prisoners, and also indicated that he was interested in radicalizing other individuals in the Bronx area. ALIMEHMETI also made repeated purchases of combat knives and other military-type equipment, including masks, handcuffs, a pocket chainsaw, a wire pocket saw, and a rucksack designed for tactical combat, which he stockpiled at his apartment in the Bronx.
In October 2015, ALIMEHMETI applied for a U.S. passport, falsely claiming in the application that his previous passport had been lost. ALIMEHMETI later told an undercover law enforcement employee that his prior passport – which ALIMEHMETI showed to the undercover law enforcement officer – had not been lost and, instead, that he was applying for a new passport because he believed the rejection stamps in his existing passport resulting from his attempted entries into the United Kingdom would make it difficult to travel. ALIMEHMETI further conveyed to undercover law enforcement personnel that he was seeking the new passport, without rejection stamps, to facilitate his travel overseas to join and fight for ISIS.
In May 2016, ALIMEHMETI attempted to assist an individual who was purportedly traveling from New York to Syria to train and fight with ISIS but who was actually an undercover law enforcement employee (the “UC”). On May 17, 2016, ALIMEHMETI met with the UC in Manhattan. The UC had purportedly arrived in New York earlier that day on a bus and was en route to John F. Kennedy International Airport (“JFK Airport”) to take an overseas flight later that night.
ALIMEHMETI agreed to help the UC with several tasks prior to the UC’s purported travel. ALIMEHMETI assisted the UC by locating stores so the UC could purchase supplies to use while traveling to, and fighting with, ISIS, including a cellphone, boots, a compass, a bag, and a flashlight, among other items. ALIMEHMETI also gave the UC advice on which items to purchase and on the use of different kinds of encrypted communications services, including the service that ALIMEHMETI stated was currently being used by fellow ISIS supporters, whom ALIMEHMETI referred to as “the brothers.” ALIMEHMETI also downloaded three encrypted communications applications on the UC’s newly purchased cellphone for use by the UC.
Further, ALIMEHMETI assisted the UC in traveling from Manhattan to a hotel in Queens, so the UC could purportedly meet with an individual who was preparing travel documents that the UC would use to travel to Syria to join ISIS. ALIMEHMETI gave the UC a piece of paper with his name and contact information, so the UC could provide that information to the purported document facilitator. ALIMEHETI explained that he also wanted to travel to Syria and join ISIS, stating “I’m ready to . . . go with you man . . . you know I would. I’m done with this place.” After leaving the hotel in Queens, ALIMEHETI brought the UC to JFK Airport, via public transportation, so the UC could begin the purported journey to ISIS. Within days of seeking to facilitate the UC’s travel to join ISIS, ALIMEHMETI indicated during a call to his brother in Albania that that he had learned of a new way to obtain a passport for his own travel (referring to the UC’s purported document facilitator), and that a “friend of mine” (referring to the UC) had “just [done] it two days ago.”
Following ALIMEHMETI’s arrest on the charges in this case in May 2016, the FBI executed a search of ALIMEHMETI’s Bronx apartment pursuant to a judicially authorized search warrant. The FBI’s search of ALIMEHMETI’s apartment resulted in the seizure of, among other evidence, the following: (i) a laptop computer and a cellphone belonging to ALIMEHMETI that contain an array of materials further demonstrating his allegiance to ISIS and terrorist ideology, including images of the ISIS flag, photographs of ALIMEHMETI with an ISIS flag and making gestures supportive of ISIS, images of ISIS fighters overseas, and propaganda videos promoting and glorifying ISIS, including videos depicting ISIS fighters engaging in combat and beheading prisoners; (ii) a collection of combat knives and other military-type equipment that ALIMEHMETI had purchased and stored at his apartment, as discussed above; and (iii) an ISIS flag that was displayed on a wall in the apartment.
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ALIMEHMETI, 24, of the Bronx, pled guilty to one count of attempting to provide material support or resources to a designated foreign terrorist organization, namely, ISIS, which carries a maximum sentence of 20 years in prison, and one count of making a false statement in an application for a U.S. passport with the intent to induce the issuance of a passport to facilitate an act of international terrorism, namely, traveling abroad to join, train with, and fight for ISIS, which carries a maximum sentence of 25 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for June 7, 2018, before Judge Engelmayer.
Mr. Berman and Mr. O’Callaghan praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Berman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, the Albania State Police, and the Metropolitan Police Service’s Counter Terrorism Command of London, United Kingdom.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, George D. Turner, and Brendan F. Quigley are in charge of the prosecution, with assistance from Trial Attorneys Joseph Attias and Kiersten Korczynski of the National Security Division’s Counterterrorism Section.
Braxton County man indicted on firearm and drug chargesRead the Press Release
ELKINS, WEST VIRGINIA – A Burnsville, West Virginia, man was indicted today by a federal grand jury on firearm and drug charges, United States Attorney Bill Powell announced.
Charles William Masters, age 43, was indicted on one count of “Unlawful Possession of a Firearm,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of ”Carry a Firearm During a Drug Trafficking Crime.” Masters is accused of illegally possessing a 9mm pistol while possessing methamphetamine on July 3, 2017 in Lewis County, West Virginia.
Masters faces up to 10 years incarceration and a fine of up to $250,000 for the first count, up to 40 years incarceration and a fine of up to $5,000,000 for the second count, and up to life incarceration and a fine of up to $250,000 for the third count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, the Drug Enforcement Administration, and the Lewis County Sheriff’s Office investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Bookkeeper Pleads Guilty to Embezzling More Than $1.5 Million from Former Employer and Committing Tax FraudRead the Press Release
CHARLOTTE, N.C. – The former bookkeeper of a company located in Watauga Co. admitted in federal court today to embezzling more than $1.5 million from her employer and committing tax fraud, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Connie S. Franklin, 58, of Boone, N.C. appeared before U.S. Magistrate Judge David C. Keesler and pleaded guilty to one count of bank fraud and one count of filing false tax returns.
U.S. Attorney Murray is joined in making today’s announcement by Reginald DeMatteis, Special Agent in Charge of the U.S. Secret Service, Charlotte Field Office (USSS) and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed documents and today’s court proceedings, from 2008 until 2016, Franklin perpetrated a scheme to embezzle funds from the bank account of the company where she worked as bookkeeper, by falsely signing the names of the victim company’s executives to company checks made payable to herself. To conceal the fraud, Franklin then falsely coded the transactions as “freight” expenses in the victim company’s books and records. Court documents state that during the roughly nine-year scheme, Franklin embezzled approximately $1,595,472.82.
According to the filed charging document, Franklin also understated her taxable income by more than $1.4 million during the course of the scheme. For example, despite having a taxable income of $332,579 in 2015, Franklin reported an income of only $49,398. In total, court records show that Franklin understated her tax liability by more than $330,000.
Franklin is currently released on bond. The bank fraud charge carries a maximum of 30 years in prison and a $1,000,000 fine. The maximum penalty for the charge of filing a false tax return is three years in prison and a $100,000 fine. A sentencing date has not been set.
USSS and IRS-CI led the investigation. U.S. Attorney Murray also thanks the Boone Police Department and the Watauga County District Attorney’s Office for their significant assistance over the course of the investigation. Assistant U.S. Attorney Taylor J. Phillips of the U.S. Attorney’s Office, in Charlotte is in charge of the prosecution.
Big Island Capital Fraudster Sentenced to 110 Months in Prison for Million Dollar Ponzi SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of JEREMY RICHARD LUNDIN, 31, to 110 months in prison for operating a Ponzi scheme through which he stole more than $1 million from individual investors. LUNDIN, who pleaded guilty on September 22, 2017, was sentenced today before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minn. In addressing LUNDIN’S conduct, Judge Wright stated, “You did not steal from your victims because you needed money … you stole money because you wanted to maintain a lavish lifestyle without earning it. Your victims earned their money, and you stole it. You used their money to buy vacations, clothes, vehicles, a boat, for yourself. Apparently you decided you deserved their money more than they did.”
Assistant U.S. Attorney Amber Brennan said, “Jeremy Lundin had a life that a lot of people dream of, a middle class life. But, he wanted things he could not afford, so he stole from people who had saved money for their retirement and to help their kids go to college. These are people who wanted to give their kids the same opportunities that Lundin himself had. And, he stole from them for no reason other than to live a lavish lifestyle.”
“When fraudsters like Jeremy Lundin take advantage of honest citizens who are simply looking to invest their hard-earned savings and retirement funds for a better life - it’s not only shameful, but devastating,” said Acting Special Agent in Charge Hubbard Burgess of IRS Criminal Investigation, St. Paul Field Office. “Today's sentencing demonstrates how federal law enforcement works together to help stop the criminal behavior of those who prey on innocent investors in order to enrich themselves.”
“Postal Inspectors take very seriously their mission to deter the illegal use of the mails for any criminal activity,” said Acting Postal Inspector in Charge, Dana Carter. “We are committed to working together with our law enforcement partners to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail. Today’s sentencing should send a clear message to those individuals who are contemplating using the mails for their schemes to defraud, don’t do it.”
“To appear legitimate, Lundin used a slick sales pitch and phony documents to steal people’s life savings. His sole objective was to indulge his own extravagant lifestyle,” said Minnesota Commerce Commissioner Jessica Looman. “The Commerce Fraud Bureau is committed to investigating and stopping fraud in Minnesota. We hope that the sentence received by Lundin will deter others from committing fraud in our state.”
According to the defendant’s guilty plea, from approximately December 2014 until May 2017, LUNDIN claimed that he conducted “options trading” through his company Big Island Capital. LUNDIN worked through a network of associates and friends to solicit investors to invest with Big Island Capital by promising those potential investors exponential growth through options trading. LUNDIN solicited more than $1 million from at least 51 investors, but instead of using the funds for options trading, LUNDIN spent investors’ money to fund his and his wife’s lavish lifestyle.
According to the defendant’s guilty plea, as part of the scheme, LUNDIN provided victim investors with written materials relating to his purported investment strategy. Through these materials, LUNDIN claimed that the goal of Big Island Capital was to “generate profits with options trading” and that while he could not “guarantee” an exact percent, he would “shoot for” returns of between 40 percent and 80 percent. LUNDIN also entered into contract agreements with victim investors. These agreements, titled, “Big Island Capital Investment Advisory Agreement,” purported that the assets of Big Island’s account would be held for safekeeping in a brokerage account. LUNDIN regularly represented that the value of the account was several hundred thousand dollars. For example, “Welcome Packet” materials LUNDIN sent to a new victim investor on November 24, 2015, claimed that the firm’s capital was then $730,000 when, in reality, LUNDIN did not even open the brokerage account until December 21, 2015.
According to the defendant’s guilty plea, in order to appear legitimate and promote his scheme, LUNDIN created phony account statements. He also provided victim investors with online access to fictitious quarterly statements and purportedly “up to date” information about the rate of growth and the market value of the accounts, which commonly and falsely showed double-digit gains. As part of the scheme, LUNDIN directed his victim investors to make their checks payable to “Big Island Capital,” he would then deposit those checks into a bank account he had established in the company’s name. Between May 2015 and May 2017, at least $992,000 was deposited into that account. During roughly the same time period, however, LUNDIN transferred $933,950 from the business account directly into his and his wife’s personal checking account. LUNDIN and his wife used the majority of those investor funds on personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan prosecuted the case.
Defendant Information:
JEREMY RICHARD LUNDIN, 31
Mound, Minn.
Convicted:
- Mail fraud, 1 count
- Money laundering – transaction involving fraud proceeds, 1 count
Sentenced:
- 110 months in prison
- Three years of supervised release
- $969,788.96 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Baton Rouge Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
Acting United States Attorney Corey R. Amundson announced today that TERRANCE THORNTON, age 24, of Baton Rouge, Louisiana, has been convicted on one count of possession of firearms by a convicted felon. As a result of his conviction, THORNTON faces a significant term of imprisonment, fine, and a period of supervised release.
In a hearing before U.S. District Judge John W. deGravelles on February 15, 2018, THORNTON pled guilty to possession of two firearms, a Glock 9mm semiautomatic pistol, and a Century Arms 7.62 caliber semiautomatic rifle, after having been convicted of two felony offenses in 2013, including accessory after-the-fact to armed robbery, in the 19th Judicial District Court for the Parish of East Baton Rouge.
Following a high-speed car chase on July 31, 2017, THORNTON fled from Baton Rouge Police Officers on foot. As he fled, THORNTON hid a Glock pistol within a residential backyard. He later directed an associate to retrieve the hidden pistol and bring it to his residence. On August 1, 2017, law enforcement officers executed a search warrant at the defendant’s residence where they recovered the Glock pistol and a Century Arms 7.62 caliber rifle.
Acting U.S. Attorney Amundson stated, “The investigation of this offense, which involved a collective effort by several of our Violent Crime Strike Force partners, and the resulting conviction of THORNTON, reaffirm our resolve to pursue all avenues available to keep our community safe.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “Service to our community, through partnerships with federal, state, and local law enforcement, is on full display when we, along with the communities we help, take individuals with ties to violent crimes, such as THORNTON, off of our streets.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department, with substantial assistance from the Louisiana State Police Crime Laboratory and Fugitive Task Force. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Barbourville Couple Sentenced for Defrauding the VA and the Social Security AdministrationRead the Press Release
LEXINGTON, Ky. – A Barbourville, Ky. couple, who previously admitted to defrauding the U.S. Department of Veterans Affairs (“VA”) and Social Security Administration (“SSA”), were sentenced on Friday, February 16, 2018. James R. Baker was sentenced to 24 months in prison, while his wife, Debbie K. Baker, was sentenced to 8 months in prison to be followed by 8 months’ home incarceration.
U.S. District Judge Danny C. Reeves sentenced 46-year-old James R. Baker for conspiracy to defraud the VA and conspiracy to defraud the SSA, and Debbie K. Baker, 47, for conspiracy to defraud the SSA.
Between October 13, 2006, and July 3, 2017, James Baker exaggerated various mental and physical conditions by unnecessarily using a cane, walker, or wheelchair to assist in walking, or by falsely reporting to doctors that he could not perform daily activities of living due to his physical and mental ailments, all in order to increase his compensation benefits from the VA. James Baker’s exaggerations and falsehoods resulted in an overpayment of VA compensation benefits in the amount of $381,240.45. As a result of his malingering, the VA also paid James Baker an additional $231,508.17 in grants for various purposes, such as special adaptive housing and home maker and home health benefits. Additionally, he received $233,370 in SSA disability benefits, stemming from his VA disability determination. For her part, Debbie Baker participated in creating the illusion that her husband was totally disabled, including by falsely claiming on a SSA form that Baker was unable to perform most activities independently.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Kim Lampkins, Special Agent in Charge for the VA Office of Inspector General; and Margaret Jackson, Special Agent in Charge for the SSA Office of Inspector General, jointly announced the sentences.
The investigation was conducted by the VA Office of Inspector General and SSA Office of Inspector General.
Bangor Man Sentenced to Three Months for Conspiracy to Transport Stolen GoodsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Anthony G. Berry, 49, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to three months in prison and three years of supervised release for conspiracy to transport stolen goods in interstate commerce. He was also ordered to pay over $9,000 in restitution and a $9,000 fine. Berry pled guilty on May 3, 2017.
According to court records, between March and October 2014, Berry and others conspired to steal merchandise from Walmart, Hannaford, and other stores in Maine and to sell it online. Berry and one of his co-conspirators received the stolen goods, marketed them online, and shipped the goods to buyers.
The investigation was conducted by the U.S. Immigration & Customs Enforcement’s Homeland Security Investigations, the Maine State Police, the Bangor Police Department, and the Penobscot County Sheriff’s Office.
Ada Man Found Guilty of Enticement of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that Floyd Preston Miller III, age 38, of Ada, Oklahoma was found guilty by a federal jury of Enticement Of A Minor Using The Internet, in violation of Title 18, United States Code, Section 2422(b). The jury trial began with testimony on Tuesday, February 20, 2018 and concluded on Wednesday, February 21, 2018 with the guilty verdict.
Evidence at trial proved that from in or about November 2015, the exact date being unknown to the Grand Jury, until on or about February 8, 2016, in the Eastern District of Oklahoma, the defendant used a facility and means of interstate commerce, the Internet, to attempt to knowingly persuade, induce, and entice an individual whom he believed was 15 years old, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law.
The verdict obtained was the result of an investigation by the Las Vegas Internet Crimes against Children (ICAC) Task Force, the North Las Vegas Police Department, and the Federal Bureau of Investigation.
United States Attorney Brian J. Kuester said, “Preying upon children, whether in person or via the internet, is not only illegal, it is despicable. Sometimes perpetrators gain an advantage over law enforcement agents because the internet allows there to be distance from victims which span geographic and jurisdictional boundaries. But in this case the ICAC Task Force in Las Vegas, the North Las Vegas Police, the FBI, and the U.S. Attorney’s Office worked together to overcome the challenges that are inherent in Internet Enticement cases to achieve justice for the victim.”
“Speaking more generally, I want parents to be aware that predators do exist and they can enter your children’s rooms without ever stepping foot in the same state. Stay informed of the latest trends in chat rooms, social media, and the various phone apps that make it easy for strangers to seek out and communicate with children. Be aware of their phone activity and internet history. Just because a child is “safely” at home no longer means that predators have no access to them. Predators are using the internet, are very savvy with it, and are very much aware of how to lure children.”
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in custody pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
Tuesday 20 February 2018
Woman Convicted of Bank RobberyRead the Press Release
CORPUS CHRISTI, Texas - A second defendant has been convicted for robbing the Prosperity Bank in Yoakum, announced U.S. Attorney Ryan K. Patrick.
On Sept. 22, 2016, Marina Michelle Pulmano, 22, of Tuscaloosa, Alabama, entered the Prosperity Bank and handed the teller a note stating she had a gun and demanded money. The teller complied and Pulmano then left the bank with the cash.
On Nov. 3, 2016, law enforcement officers again responded to a robbery at the same bank. Similarly, a male, later identified as Chad Andrew Latham, handed the teller a note that stated he had a gun and demanded money. Latham then left the bank with the money.
During the investigation, detectives were able to confirm the identities of the robbery suspects after speaking to several people that recognized Pulmano and Latham from the images released to the local media. Latham and Pulmano, who were dating at the time of the robberies, left the area and returned to Alabama where they were later arrested.
Latham, 26, also of Tuscaloosa, Alabama, previously pleaded guilty and was sentenced in August 2017 to 70 months in federal prison.
Senior U.S. District Judge John Rainey accepted Pulmano’s plea today and set sentencing for May 14, 2018. At that time, she faces up to 20 years imprisonment and a maximum $250,000 fine. She was permitted to remain on bond pending that hearing.
The FBI and Yoakum Police Department conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Windsor Woman Pleads Guilty to Federal Tax Charge Arising from $190,000 Embezzlement SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that REBECCA BLOCK, 43, of Windsor, waived her right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a federal tax offense stemming from an embezzlement scheme.
According to court documents and statements made in court, BLOCK was employed by PG Life Planning Associates, Inc. in West Hartford. Between 2010 and 2013, BLOCK stole from the company by issuing checks payable to herself and depositing those checks into her personal bank account. She concealed the embezzlement from her employer by disguising the payments in PG Life’s internal accounting records as legitimate business expenses. BLOCK embezzled approximately $190,399 over the approximately four-year period, and failed to report a total of $42,004 in income taxes on her 2010 through 2013 federal tax returns.
BLOCK pleaded guilty to one count of filing a false tax return, an offense that carries a maximum term of imprisonment of three years. Judge Underhill scheduled sentencing for May 22, 2018.
BLOCK has agreed to make restitution in amount of $190,399 to PG Life, and $42,004, plus applicable interest and penalties, to the IRS.
BLOCK is released on a $40,000 bond pending sentencing.
This investigation has been conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Wellford Woman Sentenced for Forging PrescriptionsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Felicia L. Prysock, age 41, of Wellford, South Carolina, was sentenced to 24 months and one day in prison for Aggravated Identity Theft, a violation of Title 18, United States Code, § 1028A; and Obtaining a Controlled Substance by Fraud, a violation of Title 21, United States Code, § 843(a)(3). Chief Judge Terry L. Wooten presided at the hearing and also ordered restitution to Medicaid of $1,132.12.
Evidence presented at the change of plea established that Prysock filled ten different prescriptions forged in the names of a doctor and her children and had Medicaid pay for them. The conduct occurred between July 2016 and April 2017. The investigation revealed that these prescriptions were for Schedule II opioids, such as oxycodone, hydrocodone, and Adderall.
The United States Department of Health and Human Services, Office of the Inspector General, along with the United States Drug Enforcement Administration, investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Utah Man Sentenced for Selling Oxycodone Pills on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that 32-year old Tacuma Wallace of Ogden, Utah, was sentenced to 12 months and one day in prison, three years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing.
On May 12, 2016, law enforcement in Roosevelt County received information that Wallace was selling drugs out of a hotel in Wolf Point, Montana. On May 16, 2016, officers witnessed the defendant leave the hotel and get into his rental car in the parking lot. The officers then observed Wallace engage in numerous people approach the car and receive drugs from Wallace.
Wallace and another man then left the parking lot in a truck. Officers conducted a traffic stop on the truck, and Wallace quickly opened the back door and tried to get out and run away. Meanwhile, another officer spoke with the driver who explained that he had known Wallace for two months and Wallace sold pills on the Fort Peck Indian Reservation. The driver admitted he had purchased pills from Wallace at least 20 separate times, and he had just purchased a pill from Wallace for $70.00. The driver also stated Wallace specifically makes trips to Wolf Point to sell pills. Law enforcement tested pills possessed by the defendant and confirmed they were Oxycodone pills. Law enforcement also confirmed that Wallace was one of the biggest suppliers of pills to the Fort Peck Indian Reservation.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Drug Enforcement Administration and the Roosevelt County Sheriff’s Office.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
U.S. Attorney announces 69-count indictment charging owners, managers and physicians associated with Hope ClinicRead the Press Release
United States Attorney Mike Stuart announced the unsealing of a 69-count indictment charging a total of 12 individuals with operating a “pill mill.” The indictment charges the owners, managers and physicians associated with HOPE Clinic, which operated as a purported pain management clinic in Beckley, Beaver and Charleston, West Virginia, as well as Wytheville, Virginia, and a related company, with conspiring to distribute oxycodone and other Schedule II controlled substances, not for legitimate medical purposes and outside the usual course of professional practice, from November 2010 to June 2015.
United States Attorney Mike Stuart was joined in the announcement by Special Agent in Charge Maureen Dixon, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Philadelphia Regional Office and Assistant Special Agent in Charge Sherri Arp, Internal Revenue Service Criminal Investigations (IRS CI), Washington, D.C. Field Office. “I commend the work of my team, under the leadership of AUSAs Monica Coleman and Meredith Thomas and the critical work of our law enforcement partners,” said United States Attorney Mike Stuart. Stuart commended the investigation conducted by agents with:
- U.S. Department of Health and Human Services, OIG
- Internal Revenue Service, Criminal Investigations
- Food and Drug Administration – Office of Criminal Investigations (OCI)
- Federal Bureau of Investigation
- Drug Enforcement Administration
- West Virginia State Police
- Metropolitan Drug Enforcement Network Team (MDENT)
- Beckley Police Department
- Kentucky State Police
- Harrison County (KY) Sheriff’s Department
- Appalachia HIDTA
The charges announced today aggressively target medical professionals involved in the unlawful distribution of opioids and other dangerous controlled substances. “As of today, there are 69 counts. 10 doctors in total. Clinics from Beckley to Beaver, and Charleston to Wytheville. Lots and lots of pills, and even more misery,” said United States Attorney Mike Stuart. Stuart continued, “Home-grown drug dealers hidden behind the veil of a doctor’s lab coat, a medical degree and a prescription pad are every bit as bad as the heroin dealers from Detroit who bring their poisons to West Virginia. Today’s 69-count indictment is the continuation of our efforts to hold accountable those who prey on the good citizens of West Virginia.”
The following individuals are charged in the indictment: James H. Blume, Jr., D.O, Mark T. Radcliffe, Joshua Radcliffe, Michael T. Moran, M.D., Sanjay Mehta, D.O., Brian Gullett, D.O., Vernon Stanley, M.D., Mark Clarkson, D.O., William Easley, D.O., Paul W. Burke, M.D., Roswell Tempest Lowry, M.D., and Teresa Emerson, LNP. “We are committed to protecting all those in government health programs,” said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “Working side by side with our law enforcement partners we will aggressively investigate charges of medical providers needlessly prescribing deadly opioids.”
In addition to the conspiracy charge, the indictment charges defendants Blume and Mark Radcliffe with maintaining drug-involved premises in Beckley, Beaver and Charleston, and includes 62 counts charging several physicians with distribution of controlled substances not for legitimate medical purposes and outside the usual course of professional practice. The indictment also charges Sanjay Mehta, D.O., a former physician at the Beckley and Beaver HOPE Clinic locations, with two counts of distribution of controlled substances causing death, and charges 10 of the defendants with conspiracy to launder drug proceeds by paying bonuses to HOPE Clinic physicians and employees of Patients, Physicians, and Pharmacists Fighting Diversion, Inc. (PPPFD), to encourage continued prescribing of Schedule II narcotics to customers.
According to the indictment, defendant James H. Blume, Jr., D.O., the owner of the HOPE Clinic, entered into a Physician Practice Management Agreement with defendant Mark T. Radcliffe, owner of PPPFD, to be the practice manager of the HOPE Clinic. The indictment alleges that together Blume and Radcliffe operated HOPE Clinic as a cash-based business that prescribed oxycodone and other Schedule II controlled substances to customers, while refusing to accept insurance, charging in-state customers at least $275 for an initial appointment, and at least $160 for each subsequent appointment. Out of state customers paid as much as $330 for initial visits and at least $185 for subsequent visits. The indictment alleges that HOPE Clinic practitioners prescribed thousands of oxycodone-based pills to individual customers and some HOPE Clinic locations, including Beaver and Charleston, averaged 65 or more customers a day during a 10-hour workday with only one practitioner working. In addition, the indictment alleges that Blume and Mark T. Radcliffe contracted the services of physicians without any knowledge of pain management who consistently conducted cursory, incomplete, or no medical examinations of Clinic customers and provided large amounts of Schedule II prescription medications to customers that they knew, and had reasonable cause to believe, were drug addicts. The indictment further alleges that Mark T. Radcliffe and his son, Joshua Radcliffe, neither of whom had any formal medical education or training, instructed medical practitioners at HOPE Clinic to provide customers with prescriptions for Schedule II controlled substances, sometimes in direct contrast with the practitioners’ clinical opinions.
"Those who facilitate the abuse of controlled dangerous substances are negatively impacting our entire community and will be held accountable,” said Kimberly Lappin, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s indictment is a reminder that IRS-CI will remain vigilant in our financial investigations and will continue to work with our law enforcement partners to combat this type of conduct.”
If convicted on all charges as alleged in the indictment, Dr. Blume and Mark Radcliffe face up to 100 years; Joshua Radcliffe faces up to 20 years; Teresa Emerson faces up to 20 years; Michael Moran faces up to 60 years; Sanjay Mehta faces a forty year mandatory minimum sentence up to life imprisonment; Vernon Stanley faces up to 240 years; Brian Gullett faces up to 340 years; Mark Clarkson faces up to 80 years; William Earley faces up to 200 years; Paul Burke faces up to 180 years; and Roswell Tempest Lowry faces up to 120 years. In a related case, John Pellegrini faces up to 20 years imprisonment for his role in a conspiracy to commit money laundering.
This case is 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.
Please find a link to the Indictment and Information below.
Indictment
Information
Please note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney McAllister Announces His Management TeamRead the Press Release
KANSAS CITY, KAN. – Newly appointed U.S. Attorney Stephen McAllister Tuesday announced the members of his management team.
“I have spent the past few weeks getting to know our personnel,” said McAllister, who was sworn in Jan. 25. “This team has my full confidence and support and I believe the members will put us in a strong position to pursue the priorities of our office.”
Tom Beall, who served as interim U.S. Attorney, will become First Assistant U.S. Attorney. Assistant U.S. Attorney Emily Metzger will be chief of the district’s civil division and civil coordinator in the Wichita office. Assistant U.S. Attorney Duston Slinkard will take over as chief of the criminal division for the district and criminal coordinator in the Topeka office.
Assistant U.S. Attorney Debra Barnett will serve as criminal coordinator in the Wichita office. Assistant U.S. Attorney Scott Rask will be criminal coordinator in the Kansas City, Kan.
In the civil division, Assistant U.S. Attorney Chris Allman will be civil coordinator for the Kansas City, Kan., office. Assistant U.S. Attorney Jackie Rapstine will be civil coordinator in the Topeka office.
Assistant U.S. Attorney James Brown will serve as appellate chief. Assistant U.S. Attorney Carrie Capwell will serve as senior litigation counsel.
McAllister was nominated by President Donald Trump and confirmed by the U.S. Senate. He is in charge of a staff of more than 100, including 50 attorneys, who work in offices in Topeka, Wichita and Kansas City, Kan.
Two East St. Louis Men Sentenced for Conspiracy to Distribute Crack CocaineRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Jason Hampton, 41, and Arthur Carter, 40, both of East St. Louis, were sentenced on February 16, 2018 for their roles in a cocaine distribution operation. Hampton was sentenced to 141 months of imprisonment, and Carter to 87 months. Both men pled guilty to the federal conspiracy charge in September, 2017. Hampton also pled guilty to possession of cocaine with intent to distribute.
At their change of plea hearings last September, both Hampton and Carter admitted receiving multiple kilogram quantities of cocaine from a Texas distributor, for re-sale in the St. Louis Metro-East. Three other co-defendants will be sentenced in March.
The investigation which resulted in the arrest and conviction of Hampton and Carter was conducted by the Drug Enforcement Administration and the St. Clair County Sheriff’s Office. The case is assigned to Assistant United States Attorney Robert L. Garrison.
Tax Return Preparer Indicted for Filing False Claims for Tax RefundsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 13, 2018, a federal grand jury returned a thirteen count indictment against Kimberly Bagneski (47) formerly of Waupun, Wisconsin. The Indictment alleges that Bagneski prepared and filed false tax returns to the IRS that claimed false and fictitious claims for taxpayer refunds, in violation of Title 18, United States Code, Sections 2 and 287.
According to the indictment, Bagneski prepared and electronically filed at least 20 false federal income tax returns seeking more than $90,000 in federal tax refunds. On these returns, Bagneski claimed false deductions, tax credits and false business income/losses. In addition, virtually all of the fraudulent tax refunds were diverted to bank accounts under her control.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Matthew Jacobs.
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For additional information contact:
Public Information Officer Dean Puschnig 414-297-1700
Syracuse Man Pleads Guilty to Threatening Death Against A New York Congressman and His FamilyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Patrick D. Angelo, 28, of Syracuse, NY, pleaded guilty to interstate communication of a threat before U.S. District Judge Mae A. D’Agostino. The charge carries a maximum penalty of five years in prison, a $250,000 fine, or both.
Assistant U.S. Attorneys Craig R. Gestring and Sean C. Eldridge of the U.S. Attorney’s Office for the Western District of New York in Rochester, who are prosecuting the case, stated that on Thursday, October 19, 2017, the Washington D.C. office of New York Congressman John Katko received a threatening voice mail that included a death threat to the Congressman and his family.
The message stated: “Listen Mr. Katko, if you support net neutrality, I will support you. But if you don’t support net neutrality, I will find you and your family and I will kill…you…all. Do you understand?” The message continued: “I will literally find all…of…you and your progeny and t- just wipe you from the face of the earth. Net neutrality is more important than the defense of the United States. Net neutrality is more important than free speech. Net neutrality is more important than health care. Net neutrality is literally the basis of the new society. That even if you don’t understand, how important it is, net neutrality is literally the basis of the new…free…society. So if you don’t support it, I am willing to lay down my li- (recording ends).”
Congressman Katko’s office reported the voicemail to the United States Capitol Police, Threat Assessment Section, which began an investigation in coordination with the Federal Bureau of Investigation. The telephone number that the call originated from traced back to the defendant.
As a result of the threat, security surrounding Congressman Katko was increased. Since Congressman Katko formerly served as an Assistant U.S. Attorney in the Northern District of New York, that Office was recused, and the case is being prosecuted by the United States Attorney’s Office for the Western District of New York.
“While citizens are certainly entitled to communicate their views on issues of importance to them to their elected officials,” said U.S. Attorney Kennedy, “there are and must be bounds to the manner in which such views may be expressed. As today’s plea makes clear, defendant overstepped those bounds. By making threats to the lives of Congressman Katko and his family, the defendant potentially faces not only a significant prison sentence but also, as a convicted felon, a loss of his right to vote. Ironically, yet fittingly, by abandoning rationale discourse and resorting to threats against a public official, the defendant has essentially rendered himself a mute in the political process. As a democratic republic, we cannot and will not tolerate true threats against those in public office.”
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Vadim Thomas, Special Agent-in-Charge, Albany Office; the New York State Police, under the Major Philip T. Rougeux; and the United States Capitol Police, under the direction of Matthew R. Verderosa.
Sentencing is scheduled for June 21, 2018, at 10:00 a.m. before Judge D’Agostino.
Stratford Woman Sentenced to 41 Months in Federal Prison for Role in 2 Fraud SchemesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on February 16, 2018, RACHAEL ALEXANDER, also known as Rachael Vierling, 40, of Stratford, was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for participating in two fraud schemes.
According to court documents and statements made in court, the first scheme involved the theft of postal money orders. ALEXANDER and her husband, Marc Anthony Alexander, devised a scheme to steal blocks of blank postal money orders from the U.S. Post Office in Old Greenwich. The Alexanders and others then imprinted the money orders with various denominations using a computer font designed to make them appear to be authentic. The Alexanders recruited Bernard Harris, of Bridgeport, into the scheme to organize others to cash the money orders, or deposit them into numerous bank accounts, either at an ATM or at a teller window. Harris recruited at least five individuals and paid them a portion of the proceeds. He then turned the bulk of the money over to the Alexanders. The Alexanders compensated Harris by giving him additional money orders that he cashed and converted to his own use.
The loss from this scheme was $313,570.
The second scheme involved the fraudulent sale of financed vehicles. In this scheme, the Alexanders took straw buyers to various car dealerships and had them fill out financing paperwork to buy high-end cars. Typically, the Alexanders would take the car and the straw buyers would sign a power of attorney form to allow them to obtain a new title for it. The Alexanders would then contact the Connecticut Department of Motor Vehicles and claim that the title had been lost and they needed a replacement title. At the DMV, they would present a fake letter from the car financing company stating that the loan had been paid off in full. After they received a new title, the Alexanders would sell the car to another dealer. The original car loans were not paid and went into default.
The straw buyers financed more than $1 million in fraudulent car loans during the course of this scheme.
The investigation revealed that the Alexanders used the money they stole to acquire a large number of luxury goods.
Judge Arterton ordered Rachael Alexander to pay restitution in the total amount of $443,807.97.
Marc Alexander, Rachael Alexander and Bernard Harris were arrested on April 26, 2016.
On January 17, 2017, Marc Alexander and Rachael Alexander each pleaded guilty to one count of conspiracy to commit wire fraud stemming from the postal money order scheme, and one count of conspiracy to commit mail and wire fraud stemming from the vehicle scheme.
On April 11, 2017, Marc Alexander was sentenced to 96 months of imprisonment.
Harris pleaded guilty to one to one count of conspiracy to commit wire fraud stemming from the postal money order scheme, and one count of wire fraud stemming from a separate fraudulent check scheme. On January 16, 2018, he was sentenced to 30 months of imprisonment.
Rachael Alexander, who is released on bond, was ordered to report to prison on April 18.
This investigation was conducted by the Connecticut Financial Crimes Task Force¸ U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, U.S. Secret Service, Federal Bureau of Investigation, Westport Police Department and Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Stiglar Man Pleads Guilty to Enticement of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Justimiano Perez Diaz, age 43, of Stigler, Oklahoma, pled guilty to Enticement Of A Minor Using The Internet, in violation of Title 18, United States Code, Section 2422(b), punishable by not less than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that from in or about September 2017, the exact date being unknown to the Grand Jury, until on or about October 16, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, did use a facility and means of interstate commerce, the Internet, to attempt to knowingly persuade, induce, and entice an individual whom he believed was 13 years old, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law, to wit: Title 21, Oklahoma Statute, Section 1123, Lewd or Indecent Proposals or Acts with a Child under 16.The charges arose from an investigation by the Wagoner Police Department and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
Sarasota Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Adam Daniel Young (27, Sarasota) with one count of receiving and two counts of possessing child pornography. If convicted, he faces up to 20 years in federal prison on each count.
According to the court filings, Young possessed more than 3,000 images and 25 videos of child pornography, including files depicting children under the age 12. Forensic evidence on his computer revealed that he had received and attempted to receive child pornography through an online file sharing program.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI’s Child Exploitation Task Force, which is comprised of local law enforcement agencies, including the Charlotte County Sheriff’s Office and the Bradenton Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case 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 United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Jose Resident Sentenced to Two Years in Prison for Passport Fraud and Related CrimesRead the Press Release
SAN JOSE – Donald Laurence Jason-White was sentenced to 24 months in prison for passport fraud, mail fraud, and wire fraud, announced Acting United States Attorney Alex G. Tse and Special Agent in Charge Matthew Perlman of the U.S. State Department’s Diplomatic Security Service (DSS) San Francisco Field Office. The sentence was handed down today by the Honorable Beth Labson Freeman.
Jason-White, 80, of San Jose, pleaded guilty on November 21, 2017, to passport fraud, wire fraud, and mail fraud. According to the plea agreement, in approximately 1992, Jason-White obtained a certified copy of a birth certificate that he knew belonged to a deceased person. Between 2005 and 2015, Jason-White used the identity of the deceased person to apply for a United States passport and to apply for and obtain benefits from the Social Security Administration and the Department of Housing and Urban Development (HUD). Jason-White admitted he obtained housing from HUD’s Section 8 program. He also admitted he defrauded the federal government out of more than $250,000 in cash and other benefits.
A federal grand jury indicted Jason-White on May 5, 2016, charging him with passport fraud, aggravated identity theft, social security fraud, making false statements to an agency of the United States, five counts of wire fraud, and six counts of mail fraud. Pursuant to his plea agreement, Jason-White pleaded guilty to one count each of passport fraud, in violation of 18 U.S.C. § 1542; wire fraud, in violation of § 1343; and mail fraud, in violation of 18 U.S.C. § 1341.
In addition to the prison term, Judge Freeman also sentenced the defendant to a five-year period of supervised release and ordered him to pay $274,765.49 in restitution. Jason-White will begin serving his sentence on April 4, 2018.Assistant U.S. Attorney Scott Simeon is prosecuting the case with the assistance of Ryka Barghi. The prosecution is the result of an investigation by the U.S. Department of State’s Diplomatic Security Service and the Office of Inspector General of the Department of Housing and Urban Development and the Office of Inspector General of the Social Security Administration.