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Saturday 17 February 2018
District Man Found Guilty of Charges in 2015 Killing in Northeast WashingtonRead the Press Release
WASHINGTON – Davon Payton, 27, of Washington, D.C., has been found guilty of charges stemming from the killing of a man in a dispute that took place in 2015 in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Payton was found guilty by a jury on Feb. 16, 2018 of involuntary manslaughter and related weapons charges. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Danya A. Dayson scheduled sentencing for April 13, 2018.
According to the government’s evidence, on Nov. 13, 2015, the victim, Ray Harrison, along with his fiancée and her female friend from Texas, drove unannounced to Payton’s apartment at 2:30 a.m. Mr. Harrison and his fiancée were friends with Payton and his girlfriend.
When Mr. Harrison and the two women arrived in the 1300 block of Adams Street NE, the two women stayed in the car while he walked up the steps and knocked on the front window of Payton’s apartment. In response, Payton pulled a gun from his waistband and went to the front door. He confronted Mr. Harrison on the front steps of the building, demanding to know why he there at that hour of night. A tussle ensued, and, during the fight, Payton shot Mr. Harrison in the chest. Mr. Harrison, 21, staggered to the curb, where he collapsed and died.
Payton was arrested on Nov. 20, 2015, after a warrant was issued for his arrest, by the Capital Area Regional Fugitive Task Force.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the efforts of the Capital Area Regional Fugitive Task Force. She acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Assistant U.S. Attorneys John Mannarino and Nicholas Coleman; Criminal Investigator Zachary McMenamin; Paralegal Specialists Kelly Blakeney and Stephanie Gilbert; Litigation Technology Specialists Anisha Bhatia and Leif Hickling; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Marcia Rinker, Katina Adams-Washington, and LaJune Thames, all of the Victim/Witness Assistance Unit, and Intern Shani Brown.
Finally, she commended the work of Assistant U.S. Attorney Silvia Gonzalez Roman, who investigated the case, and Assistant U.S. Attorneys Katherine Earnest and Jennifer Fischer, who investigated and prosecuted the matter.
Friday 16 February 2018
al-Qaeda Operative Sentenced to Life Imprisonment for Terrorism Offenses Targeting Americans OverseasRead the Press Release
Earlier today, in Brooklyn federal court, al-Qaeda operative Ibrahim Suleiman Adnan Adam Harun was sentenced to life imprisonment by United States District Judge Brian M. Cogan following his March 16, 2017 trial conviction of multiple terrorism offenses, including conspiracy to murder American military personnel in Afghanistan, conspiracy to bomb the U.S. Embassy in Nigeria, and providing material support to al-Qaeda.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“This case demonstrates our commitment to bringing to justice those who target American citizens serving their country abroad. We will be relentless in our efforts to hold terrorists like the defendant accountable for their crimes,” stated United States Attorney Donoghue.
“With the sentence handed down today, our justice system has once again held accountable an al-Qaeda operative for his terrorist activities, ensuring that he will spend the rest of his life in prison,” stated Acting Assistant Attorney General O’Callaghan. “The evidence presented at trial established that the defendant and other jihadists attacked a U.S. military patrol in Afghanistan, resulting in the death of two American soldiers and the serious injury of others. Working with our partners in the law enforcement and intelligence communities, the National Security Division will continue to vigorously pursue and disrupt terrorists who target Americans and American facilities around the world. Thank you to the many agents, analysts, and prosecutors whose hard work and dedication made this result possible.”
Mr. Donoghue and Mr. O’Callaghan expressed their grateful appreciation to the FBI’s Joint Terrorism Task Force, the Department of Justice’s Office of International Affairs, the Department of Defense Army investigators, the Office of Military Commissions, the Italian Ministry of Justice, the Prosecutor’s Office in Palermo, Italy, the Italian National Police, Guardia di Finanza and Carabinieri authorities for their support and assistance.
“Justice has been served on behalf of the victims of Spin Ghul’s grisly attack on U.S. military patrol members in 2003,” stated FBI Assistant Director-in-Charge Sweeney. “This al-Qaeda operative will no longer pose a threat to society. The FBI’s Joint Terrorism Task Force in New York is committed to working with our partners here and abroad to bring terrorists to justice.”
“Harun was a dedicated and early soldier in bin Laden’s al-Qaeda, joining just weeks before the September 11th attacks,” stated NYPD Police Commissioner O’Neill. “He launched attacks against US service members in Afghanistan in 2003, killing two and injuring many others. After, he attempted to bomb the U.S. Embassy in Nigeria, among other western targets. Harun will rightfully spend the rest of his life behind bars. This department—with our partners in law enforcement— remains deeply committed to combating terrorism from New York to Nigeria—and everywhere in between.”
As proven at trial, Harun (also known as “Spin Ghul”) traveled from Saudi Arabia to Afghanistan weeks before September 11, 2001, where he joined al-Qaeda, trained at al-Qaeda training camps, and eventually swore allegiance to Osama bin Laden. Harun then traveled with other al-Qaeda jihadists to the Federally Administered Tribal Areas of Pakistan, where he operated under Abdul Hadi al-Iraqi, one of bin Laden’s deputies and a senior al-Qaeda military commander.
On April 25, 2003, Harun and fellow al-Qaeda jihadists ambushed a U.S. military patrol near the Afghan-Pakistan border. Harun fired machinegun rounds and threw grenades at American soldiers and allied Afghan Militia Forces while shouting “Allahu Akbar” or “God is Great.” Two U.S. servicemen were killed in the attack—Private First Class Jerod Dennis, 19, of Oklahoma, and Airman First Class Raymond Losano, 24, of Texas—and several other soldiers were seriously wounded.
After the ambush, Harun met with senior al-Qaeda officials—including Abu Faraj al-Libi, then al-Qaeda’s external operations chief—to express his desire to commit acts of terror against U.S. interests outside Afghanistan. He specifically sought to carry out attacks similar to the 1998 al-Qaeda bombings of the U.S. Embassies in Kenya and Tanzania, which resulted in more than 200 deaths and 4,000 injuries.
In the summer of 2003, senior al-Qaeda leaders dispatched Harun from Pakistan to Nigeria to bomb the U.S. Embassy in Abuja. Harun’s al-Qaeda handler directed him to obtain one ton of explosives for the bombing operation and to target Americans—whom he described as “the head of the snake”—at embassies, hotels and other “places where they gather for fun.” Upon arriving in Nigeria, Harun recruited accomplices, scouted the Embassy and other potential Western targets, and sent an accomplice to find explosives. He also met with local terrorist leaders to expand al-Qaeda’s terrorist network in West Africa.
In 2004, Harun directed a coconspirator to courier information and materials from Nigeria to al-Qaeda leaders in Pakistan. After learning that the coconspirator had been arrested in Pakistan, Harun fled Nigeria to Libya, from where he planned to enter Europe to carry out terrorist attacks against Western interests. In early 2005, however, Harun was arrested by Libyan authorities and held in custody until his release in June 2011. Harun was arrested in June 2011 by Italian authorities. He was indicted on terrorism charges in the United States in February 2012 and extradited from Italy to the United States later that year.
The government’s case was prosecuted by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Shreve Ariail, Melody Wells, and Matthew J. Jacobs of the United States Attorney’s Office for the Eastern District of New York, along with Joseph N. Kaster, Trial Attorney, Counterterrorism Section of the Justice Department’s National Security Division, were in charge of the prosecution.
The Defendant:
IBRAHIM SULEIMAN ADNAN ADAM HARUN
Age: 47E.D.N.Y. Docket No. 12-CR-134
Woman Convicted for Involvement in Conspiracy to Commit Extortion and Violations of the Travel ActRead the Press Release
Brigith Dayana Gomez, 29, a resident of Los Angeles, California and Venezuela, was convicted for her involvement in a conspiracy to commit extortion and violations of the Travel Act.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
The extortion plot sought approximately $100,000 from the victim, and the evidence presented at trial established that Gomez and her co-conspirator, Carolina Del Carmen Roldan, threatened to expose compromising photographs and videos of the victim to Telemundo (the media) unless he paid them.
After a two-week trial, a federal jury found Gomez guilty of all five counts charged in the indictment: one count of conspiracy to transmit extortionate communications in interstate commerce, three counts of transmission of extortionate threats in interstate commerce, and one count of interstate travel in aid of racketeering.
According to evidence presented at trial, Gomez, a purported model, and co-conspirator Carolina Roldan threatened their victim with exposure of compromising photographs and videos of him having affairs with multiple women, unless he paid $50-$100,000 in cash. Over the next fifteen days, the demands for money and threats continued. The FBI apprehended Gomez at Miami International Airport when she arrived to attempt to collect the money from the victim.
Sentencing is scheduled for April 25, 2018 at 3 p.m. before U.S. District Judge Joan A. Lenard. Gomez faces up to five years’ imprisonment for Counts 1 and 5 of the Indictment, and up to two years’ imprisonment for Counts 2 through 4 of the Indictment.
Mr. Greenberg commended the investigative efforts of the FBI. The case is being prosecuted by Assistant United States Attorneys Lisa H. Miller, Frederic Shadley, and Anne McNamara.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
West Memphis Gang Member Sent to Prison for More Than 17 Years for Illegal Gun PossessionRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Jeffrey Reed, Resident Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announce that late Thursday multi-convicted felon Marvin Meux, 45, of West Memphis, was sentenced to 210 months in federal prison for his illegal possession of a firearm.
A federal Grand Jury charged Meux with one count of being a felon in possession of a firearm on June 18, 2016, and he pleaded guilty to that count on August 25, 2017. On February 15, 2018, United States District Court Judge James M. Moody, Jr., sentenced Meux to 210 months (17.5 years) in federal prison, to be followed by three years of supervised release. There is no parole in the federal system.
Meux was originally arrested by state authorities on October 21, 2015, after West Memphis police officers were dispatched to an area in West Memphis where two subjects were allegedly being held at gunpoint while attempting to repossess a car registered to Meux. While repossession employees were attempting to hook up the car, Meux jumped into the driver’s seat and drove off in the vehicle, with one of the employees still in the passenger seat. After fleeing a short distance, Meux drove back to his residence. After the employee exited Meux’s vehicle he saw Meux running towards him with a small black gun. The two repossession employees then got into their truck and drove away, while Meux was pointing the gun at them.
During a search of the residence West Memphis police officers located an SKS assault rifle and a .38 caliber revolver. Meux is identified as a member of a gang known as the Gangster Disciples in West Memphis. Judge Moody sentenced Meux pursuant to the Armed Career Criminal Act statute, which mandates enhanced penalties if the defendant had previously been convicted of three or more violent offenses or serious drug offenses.
The investigation was conducted by the West Memphis Police Department and the ATF. The case was prosecuted by Assistant United States Attorneys Liza Brown and Michael Gordon.
Virginia Man Pleads Guilty to Distributing Child PornographyRead the Press Release
A Gainesville, Virginia man pleaded guilty today to distribution of child pornography over the Internet.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), made the announcement.
Robert Potts, 55, pleaded guilty to one count of distributing child pornography before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Sentencing is scheduled for May 25.
According to admissions made in connection with his guilty plea, Potts was a user of the online peer-to-peer network GigaTribe and, in January 2014, he shared 51 child pornography files with another user of the network. Unbeknownst to Potts, the other user was an undercover law enforcement agent. Forensic examination of media devices seized during a subsequent search warrant executed at Potts’s residence revealed thousands of images and videos depicting the sexual abuse of children. In addition, in 2015 and 2016, Potts continued to view and store child pornography through an account with the cloud-storage service Dropbox.
HSI investigated the case with the assistance of the Northern Virginia/DC Internet Crimes Against Children Task Force. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section is prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Virginia Man Found Guilty of Murder and Other Charges for Triple Homicide in Northeast Washington in 1991Read the Press Release
WASHINGTON – Benito Valdez, 47, formerly of Arlington, Va., was found guilty by a jury today of multiple counts of first-degree murder while armed and other charges for killing three people in 1991 in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
In addition to the murder charges, the jury found Valdez guilty of three counts of kidnapping while armed and one count of sodomy while armed. The verdict followed a trial in the Superior Court of the District of Columbia. Valdez is to be sentenced by the Honorable Judith Bartnoff on April 13, 2018. He remains in custody pending that hearing.
According to the government’s evidence, in the early morning hours of April 23, 1991, Curtis Pixley, Keith Simmons, and Samantha Gillard went to Langdon Park in the 1800 block of Franklin Street NE to purchase crack cocaine. Mr. Pixley, 29, and Mr. Simmons, 26, approached Valdez while Ms. Gilliard, 23, waited at a distance. The drug deal went bad very quickly when Valdez accused Mr. Pixley of stealing drugs from him. Valdez threatened Mr. Pixley that he was going to pay for the drugs one way or another. When Mr. Pixley could not pay with cash, Valdez raped Ms. Gillard at gunpoint. Then, according to the government’s evidence, Valdez forced all three to lie on the ground and shot each one execution-style.
Valdez was charged with the crimes in February 2016.
In announcing the verdicts, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department’s Cold Case Unit as well as the U.S. Park Police. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Stephanie Siegerist, Alesha Matthews, Meridith McGarrity, and Sharon Newman; Criminal Investigator Zachary McMenamin; Litigation Technology Specialist Leif Hickling, and Victim/Witness Advocate Diana Lim.
Finally, they commended the work of Assistant U.S. Attorneys Laura A. Bach and Lindsey Merikas, who prosecuted the case.
Verbena Man Facing Life in Prison Following Federal Drug Trafficking and Firearms ConvictionsRead the Press Release
Montgomery, Ala. – James Calvin Talley, Jr., 37, of Verbena, Alabama, was convicted by a federal jury yesterday of possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute marijuana, using a phone to facilitate a drug crime, and being a felon in possession of a firearm, announced U.S. Attorney Louis V. Franklin, Sr. Talley, who has two prior felony drug convictions, faces a mandatory life sentence in prison for the methamphetamine conviction.
On December 3, 2016, a drug courier delivered more than 100 pounds of marijuana to Talley’s home in Verbena. The drug courier had been arrested in Texas and agreed to work with law enforcement and deliver the marijuana to Talley. When the courier arrived at Talley's home, he got out of the car and Talley drove the car alone to another house in Marbury, Alabama. There, Talley backed the car up to the front door of the house and opened the trunk. The police, who had followed Talley from his home, turned on their emergency lights, and Talley ran into the home. He was caught by police as he was running out of the backdoor shortly thereafter. Inside the house, which belonged to Richie Dale Murphy, DEA agents and local law enforcement found two pistols, more than 3 pounds of methamphetamine, over $20,000 in cash, marijuana, and drug paraphernalia used for packaging and selling narcotics.
Following the search at Murphy's house, law enforcement officers searched Talley's home and found two pistols in a safe under a bed, along with more than $50,000 in cash, a currency counter, drug ledgers and receipts for wire transfers of large amounts of money. Murphy, who earlier pled guilty to possession with intent to distribute marijuana, possession with intent to distribute methamphetamine, and possessing a firearm in furtherance of a drug trafficking crime, testified against Talley. Specifically, Murphy told the jury that he and Talley were in business together, and that Talley used Murphy's home as his stash house for marijuana and methamphetamine.
Murphy is scheduled to be sentenced on March 19, 2018. Talley’s sentencing date has not been set. As stated earlier, Talley is facing a life sentence for the methamphetamine conviction. The marijuana and felon in possession charges carry a possible 10-year sentence. The using a phone to facilitate a drug crime count comes with a potential 4-year prison sentence. Murphy is facing at least 15 years in prison for his charges.
The case was investigated by the Drug Enforcement Administration (DEA), the Autauga County Sheriff’s Office, and the Chilton County Sheriff’s Office. The Alabama Attorney General’s Office, Millbrook Police Department, Montgomery Police Department, and Prattville Police Department all assisted with this case. The case was prosecuted by Assistant U.S. Attorneys John Geer and Kevin Davidson.
VDOT Official Sentenced for $11 Million Bribe SchemeRead the Press Release
ALEXANDRIA, Va. – The former superintendent of the Virginia Department of Transportation’s Burke Area Headquarters was sentenced today to seven years in prison for his involvement in a bribery scheme involving the awarding of nearly $11 million in snow removal work over the course of more than five years.
According to court documents, Anthony Willie, 55, of Culpeper, along with co-conspirator Kenneth Duane Adams, 42, of Fairfax, were VDOT supervisors at the Burke Area Headquarters (AHQ) and secretly used their official positions to enrich themselves by soliciting and accepting cash bribes in exchange for various favorable official acts, such as awarding lucrative snow removal work to local trucking companies during winter snow storms in the northern Virginia area.
According to court documents, Willie and Adams negotiated bribe agreements with several owners and operators of trucking and snow removal companies seeking snow removal work from the VDOT Burke AHQ, including Rolando Pineda Moran, Shaheen Sariri, and John Williamson. At their core, each agreement stated that the company owners would provide a percentage or a flat rate of their hourly invoices as bribes in the form of cash payments to Willie and Adams, in exchange for being awarded snow removal work and having Willie and Adams sign off on their VDOT invoices. Beginning in the 2012-2013 snow season and continuing through the 2016-2017 snow season, Willie and Adams would often meet the snow plow contractors at local restaurants, grocery stores, and parking lots in Burke and Fairfax and received approximately $440,000 in cash bribes.
According to court documents, from 2011 through 2016, Adams also conspired with Elmer Antonio Mejia by negotiating an unlawful bribery agreement whereby Mejia would sub-contract snow removal work out to Adams’ nominee-owned company, Supreme Landscaping. During this period, Mejia paid Adams approximately $160,000, frequently disguising the payments as pay for snow removal work allegedly performed by Adams’ nominee-owned company.
Additionally, Adams also pleaded guilty to possession with intent to distribute cocaine. According to court records, while executing a search warrant in November 2015, law enforcement recovered approximately 129 grams of cocaine and related drug paraphernalia at Adams’ residence. Adams also admitted to previously distributing cocaine to others, including Willie and several of his other colleagues at VDOT, and to obtaining cocaine from a relative of one of his VDOT co-workers.
Name
Age, Hometown
Pleaded Guilty to
Sentencing Date and Max Penalty
Anthony Willie
55, Culpeper
Conspiracy to Commit Honest Services Mail and Wire Fraud
84 months
Kenneth Duane Adams
42, Fairfax
Conspiracy to Commit Honest Services Mail and Wire Fraud; Possession with Intent to Distribute Cocaine
64 months
Rolando Pineda Moran
46, Alexandria
Conspiracy to Commit Honest Services Mail Fraud
6 months
Shaheen Sariri
31, Fairfax
Conspiracy to Commit Honest Services Mail Fraud
Max 20 years on March 9
Elmer Mejia
50, Aldie
Conspiracy to Commit Honest Services Mail Fraud
6 months
John Williamson
51, Springfield
Conspiracy to Commit Honest Services Wire Fraud
90 days
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Kimberly R. Pedersen and Samantha P. Bateman prosecuted the case.
This case involved a joint investigation by the FBI’s Washington Field Office, Virginia State Police, and Fairfax County Police Department. Additional assistance was provided by the Virginia Department of Transportation’s Office of Assurance and Compliance.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-188.
University of North Texas Health Science Center to Pay $13 Million to Settle Claims Related to Federal GrantsRead the Press Release
DALLAS - The University of North Texas Health Science Center (UNTHSC) has agreed to pay the United States $13,073,000.00 to settle claims that it inaccurately measured, tracked and paid researchers for effort spent on certain NIH-sponsored research grants, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
UNTHSC is a health-related institution of the University of North Texas System and is a recipient of National Institutes of Health (NIH) Federal research grant funding. The settlement results from a self-disclosure by UNTHSC to the United States that from January 2011 through February 2016, UNTHSC failed to ensure that its time and effort reports related to certain federally-funded grants were accurately and timely certified.
UNTHSC, as a recipient of NIH grant funds, is responsible for accurately reporting and certifying time and effort spent on these grants. Under these obligations, UNTHSC was required to demonstrate accuracy through records that accurately reflect the work performed and an appropriate system of internal controls. UNTHSC failed to meet these requirements, and as a result, received payments for inaccurately and untimely time and effort certifications and received salary payments when the correlating payments did not match the accompanying time and effort reports. The United States contends that this conduct resulted in false claims being submitted to the government. UNTHSC fully cooperated in the investigative and settlement process.
The investigation was conducted by Health and Human Services Office of Inspector General and the United States Attorney’s Office for the Northern District of Texas. Assistant U.S. Attorney Lindsey Beran handled this matter on behalf of the United States.
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Two More Defendants Sentenced on Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the ATF concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 84 of these defendants have been convicted, including 83 who have entered guilty pleas, and 62 of them have been sentenced.
The investigation was undertaken in support of 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 collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Yesterday afternoon, two more Albuquerque residents were sentenced in federal court for their convictions on drug trafficking charges. Guajira Maya Lovato, 45, was sentenced to 60 months in prison followed by four years of supervised release for her conviction arising out of three indictments, filed as the result of the investigation, charging her with methamphetamine trafficking offenses. Jonathan Griego, 27, was sentenced to 30 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Lovato was charged in following three cases arising out of this operation:
- The indictment in the first case charged Lovato and co-defendants, Juan Jose Rivas, 33, Janet Bowman, 40, and Anthony Barela, 34, with a methamphetamine trafficking offense. The indictment was later superseded to add a fifth defendant, Maria Citlaly Beltran-Ahumada, 37, and another methamphetamine trafficking charge. The superseding indictment charged the five defendants with conspiracy to distribute methamphetamine from June 21, 2016 through Aug. 9, 2016, and distributing methamphetamine on June 22, 2016. Beltran-Ahumada pled guilty to an immigration charge on June 9, 2017, and was sentenced on June 26, 2017. The charges against Bowman were dismissed in August 2017. Rivas pled guilty to a methamphetamine trafficking charge on July 27, 2017, and Barela pled guilty to a similar charge on Aug. 3, 2017; both are scheduled for sentencing on Feb. 22, 2018. On July 27, 2017, Lovato entered a guilty plea to a methamphetamine charge, and admitted that on June 22, 2016, she negotiated the sale of two ounces of methamphetamine with a drug purchaser and later helped complete the transaction.
- The indictment in the second case charged Lovato and co-defendant Desiree Otero, 24, with conspiracy to distribute heroin from July 20, 2016 through Aug. 9, 2016 and with distributing heroin on July 20, 2016. Otero pled guilty to distributing heroin on Dec. 7, 2016, and was sentenced on Aug. 15, 2017. The indictment was dismissed as against Lovato.
- The indictment in the third case charged Lovato and co-defendants Daniel Loya, 31, and Richard Cortez, 37, with conspiracy to distribute methamphetamine from July 21, 2016 through Aug. 9, 2016, and with distributing methamphetamine on July 21, 2016. On Sept. 22, 2017, Loya pled guilty to distributing methamphetamine, and Cortez pled guilty to a similar charge on Oct. 2, 2017; both are awaiting sentencing. Lovato is scheduled for trial on the indictment in this case on April 2, 2018.
Griego and co-defendants Jesus Ramirez, 28, and Richard Porras, 31, were arrested in Aug. 2016, on separate criminal complaints charging them with drug trafficking and firearms offenses. The three subsequently were jointly charged in a nine-count indictment filed on Aug. 9, 2016, with conspiracy and possessing methamphetamine with intent to distribute. The indictment also charged Porras with distributing methamphetamine on three occasions, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm, and Ramirez with possessing methamphetamine and heroin with intent to distribute, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm.
On May 12, 2017, Griego pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute, and admitted that on Aug. 4, 2016, Griego possessed methamphetamine with the intent distribute the methamphetamine to an individual who unbeknownst to him was an undercover ATF agent. Ramirez pled guilty on Jan. 25, 2017, and was sentenced on Aug. 24, 2017, to 60 months in prison followed by five years of supervised release. Porras pled guilty on April 27, 2017; his sentencing hearing has yet to be scheduled.
Sixteen of the defendants charged as the result of the ATF investigation have entered not guilty pleas. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. Two defendants are fugitives and the charges against two defendants have been dismissed.
These cases were investigated by the Albuquerque office of ATF. The case against Lovato is being prosecuted by Assistant U.S. Attorney Presiliano Torrez, and the case against Griego was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Two Men Arrested and Charged with Illegally Exporting UAV Parts and Technology to HizballahRead the Press Release
The indictment of Usama Darwich Hamade, 53, Samir Ahmed Berro, 64, and Issam Darwich Hamade, 55, was announced today for their conspiring to illegally export goods and technology from the United States to Lebanon and to Hizballah, a designated foreign terrorist organization, in violation of the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations, and the International Traffic in Arms Regulations. Defendants Usama Hamade and Issam Hamade are currently in custody in South Africa. Samir Ahmed Berro remains at large.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan and U.S. Attorney Gregory G. Brooker of the District of Minnesota made the announcement.
According to the Indictment, from 2009 through December 2013, Usama Hamade, Berro and Issam Hamade willfully conspired to export and attempted to export from the United States to Lebanon, and specifically to Hizballah, goods and technology without obtaining the required export licenses from the U.S. Department of Commerce and the U.S. Department of State, in violation of IEEPA, the Export Administration Regulations, the Arms Export Control Act, and the International Traffic in Arms Regulations.
According to the Indictment, those goods included inertial measurement units (IMUs) suitable for use in unmanned aerial vehicles (UAVs), a jet engine, piston engines and recording binoculars.
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Commerce Office of Export Enforcement, and Homeland Security Investigations.
Assistant U.S. Attorneys John Docherty and David MacLaughlin are prosecuting the case, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Two Men Arrested and Charged with Illegally Exporting UAV Parts and Technology to HizballahRead the Press Release
United States Attorney Gregory G. Brooker today announced the indictment of USAMA DARWICH HAMADE, 53, SAMIR AHMED BERRO, 64, and ISSAM DARWICH HAMADE, 55, for conspiring to illegally export goods and technology from the United States to Lebanon and to Hizballah in violation of the International Emergency Economic Powers Act (“IEEPA”), the Export Administration Regulations, and the International Traffic in Arms Regulations. Defendants USAMA HAMADE and ISSAM HAMADE are currently in custody in South Africa. SAMIR AHMED BERRO remains at large.
According to the Indictment, from 2009 through December 2013, USAMA HAMADE, BERRO and ISSAM HAMADE willfully conspired to export and attempted to export from the United States to Lebanon, and specifically to Hizballah, goods and technology without obtaining the required export licenses from the U.S. Department of Commerce and the U.S. Department of State, in violation of IEEPA, the Export Administration Regulations, the Arms Export Control Act, and the International Traffic in Arms Regulations.
According to the Indictment, USAMA HAMADE, BERRO and ISSAM HAMADE caused the export of inertial measurement units (“IMUs”) suitable for use in unmanned aerial vehicles (“UAVs”), a jet engine, piston engines, and recording binoculars to Hizballah, designated by the U.S. Secretary of State as a “foreign terrorist organization.” As part of the conspiracy, in October 2009, USAMA HAMADE directed Individual A to order the jet engine and have it delivered to SAB Aerospace, a company owned by BERRO in the United Arab Emirates ("UAE"). BERRO then transshipped the jet engine to Hizballah co-conspirators in Lebanon. In September 2009 through November 2009, USAMA HAMADE directed Individual A to place orders for the digital compasses and the IMUs for delivery to South Africa, falsely telling Individual A that the parts would be used in UAVs in South Africa to fly over wildlife areas to prevent poaching. Instead, USAMA HAMADE transshipped the digital compasses and the IMUs to Hizballah co-conspirators in Lebanon.
As part of the conspiracy, in March and May of 2010, USAMA HAMADE directed Individual A to order additional IMUs to be sent to South Africa without telling Individual A that he intended to send the IMUs to Hizballah in Lebanon after receiving them in South Africa. As a consequence,
Individual A obtained an export license from the U.S. Department of State, which permitted the export of the IMUs to South Africa but prohibited their re-export without further authorization. In January 2010, ISSAM HAMADE and USAMA HAMADE directed Individual A to obtain an exhaust system for the jet engine, which was subsequently purchased online by Individual A.
As part of the conspiracy, between November 2009 ·and April 2010, BERRO caused 20 piston engines to be shipped from the U.S. to a temporary recipient in Frankfurt, Germany, and then on to SAB Aerospace in the UAE. From there, BERRO caused the piston engines to be shipped to Hizballah in Lebanon.
As part of the conspiracy, in December 2013, USAMA HAMADE directed Individual B to send the recording binoculars to Lebanon via a courier, who flew from Los Angeles to Beirut, Lebanon, where the binoculars were delivered to Hizballah.
As part of the conspiracy, between 2010 and 2011, ISSAM HAMADE made multiple wire transfers from a bank in Beirut, Lebanon to bank accounts controlled by USAMA HAMADE, totaling approximately $173,924.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Commerce Office of Export Enforcement, and Homeland Security Investigations.
Assistant United States Attorneys John Docherty and David MacLaughlin are prosecuting the case.
Defendant Information:
USAMA DARWICH HAMADE, 53
Citizen of Lebanon and South Africa
Charges:
- Illegal export conspiracy, 1 count
- Smuggling, 1 count
SAMIR AHMED BERRO, 64
Citizen of Lebanon and the United Kingdom
Charges:- Illegal export conspiracy, 1 count
ISSAM DARWICH HAMADE, 55
Citizen of Lebanon and the United Kingdom
Charges:- Illegal export conspiracy, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Twin Falls Man Sentenced to Federal Prison for Gun CrimeRead the Press Release
BOISE – Dale Wayne Jensen, 48, of Twin Falls, Idaho, was sentenced today to 16 months in prison by Chief U.S. District Court Judge B. Lynn Winmill, U.S. Attorney Bart M. Davis announced.
Jensen was indicted by the federal grand jury on June 15, 2017, for the crime of unlawful possession of firearms by a felon. Jensen pleaded guilty on November 28, 2017. The crime occurred on March 14, 2017, when Twin Falls County Sheriff’s Deputies served a search warrant at Jensen’s residence. During the search of Jensen’s residence, police found five firearms, and approximately eight pounds of marijuana and marijuana concentrate. Jensen admitted that the firearms were his and he was manufacturing marijuana concentrate. Marijuana concentrate is a powerful substance that may look like wax. It is made by extracting THC (tetrahydrocannabinol), the psychoactive chemical in marijuana, from the marijuana. Jensen was prohibited from possessing the firearms because of his prior felony conviction for possessing controlled substance in Twin Falls, Idaho, on October 18, 2002.
Judge Winmill also ordered Jensen to serve three years of supervised release upon his release from federal prison.
The case was investigated by the Twin Falls County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Thirteen Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that thirteen previously deported aliens were indicted separately on February 14, 2018, by a federal grand jury for illegal re-entry into the United States by a previously deported alien.
According to United States Attorney David J. Freed, Juan Carlos Leon-Avalos, age 29, of Mexico, was previously deported from the United States to Mexico in October 2011. He is alleged to have illegally re-entered the United States sometime after October 2011, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Mateo Salinas-Oliva, age 32, of Honduras, was previously deported from the United States to Honduras in July 2011. He is alleged to have illegally re-entered the United States sometime after July 2011, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Roberto Pinto-Moreira, age 26, of Honduras, was previously deported from the United States to Honduras on four prior occasions, March 2010, September 2010, March 2011, and November 2011. He is alleged to have illegally re-entered the United States sometime after November 2011, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Milton Andrade-Granados, age 42, of El Salvador, was previously deported from the United States to El Salvador in June 2015. He is alleged to have illegally re-entered the United States sometime after June 2015, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Nolberto Perez-Perez, age 26, of Guatemala, was previously deported from the United States to Guatemala in August 2014. He is alleged to have illegally re-entered the United States sometime after August 2014, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Jose Gonzalez-Martinez, age 37, was previously deported from the United States to Mexico in May 2013. He is alleged to have illegally re-entered the United States sometime after May 2013, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Hector Hernandez-Contreras, age 27, of Mexico, was previously deported from the United States to Mexico in October 2011. He is alleged to have illegally re-entered the United States sometime after October 2011, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Edgar Cruz-Garcia, age 30, of Mexico, was previously deported from the United States to Mexico in June 2015. He is alleged to have illegally re-entered the United States sometime after June 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Ricardo De Jesus-Portillo, age 37, of Honduras, was previously deported from the United States to Honduras in July 2011. He is alleged to have illegally re-entered the United States sometime after July 2011, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.
Pastor Fonseca-Lara, age 53, of Mexico, was previously deported from the United States to Mexico three times, February 2013, April 2013, and January 2014. He is alleged to have illegally re-entered the United States sometime after January 2014, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Leon-Avalos, Salinas-Oliva, Pinto-Moreira, Andrade-Granados, Perez-Perez, Gonzalez-Martinez, Hernandez-Contreras, Cruz-Garcia, De Jesus-Portillo and Fonseca-Lara all face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Ambrosio Ramirez-Arriaga, age 32, of Mexico, was previously deported from the United States on two prior occasions, August 2012 and June 2015. He is alleged to have illegally re-entered the United States sometime after June 2015, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers. In June 2012, he was convicted in the District of New Mexico of illegal reentry, an offense which subjects him to enhanced penalties in the current case.
Ramirez-Arriaga faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Tomasz Stypulkowski, age 44, was previously deported from the United States in November 2008. He is alleged to have illegally re-entered the United States sometime after November 2008, and was found in the United States in Monroe County, Pennsylvania after eluding examination or inspection by immigration officers.
Stypulkowski faces a maximum penalty of twenty years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Texas Man Sentenced to More Than 10 Years in Federal Prison in Pharmacy Robbery CaseRead the Press Release
Gulfport, Miss. – Trenton Ferrell Williams, 34, of Houston, Texas, was sentenced yesterday by U.S. District Judge Sul Ozerden to 123 months in federal prison followed by five years of supervised release for possession with intent to distribute hydrocodone, announced U.S. Attorney Mike Hurst and DEA Special Agent in Charge Stephen G. Azzam. Williams was also ordered to pay $21,392.68 in restitution.
Williams pled guilty on November 2, 2017, to possession of hydrocodone with intent to distribute. He and his co-defendants were stopped in Jackson County on July 12, 2017, in possession of a large quantity of prescription pills. The investigation led back to a robbery of a Walgreens Pharmacy in Lutz, Florida, on July 12, 2017. The pills matched those stolen from that pharmacy.
The case was investigated by the Drug Enforcement Administration Tactical Diversion Squad and prosecuted by Assistant U.S. Attorney John Meynardie.
Tennessee Couple Sentenced to Prison for Unemployment Compensation FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Earl Lafayette Hall, III, age 37, of Arlington, Tennessee, was sentenced on February 15, 2018, to 116 months’ imprisonment and three years’ supervised release by United States District Court Judge Sylvia H. Rambo for conspiracy, mail fraud, money laundering, and aggravated identity theft charges related to an unemployment compensation fraud scheme. Hall’s wife, Renita Blunt, age 33, was sentenced to 29 months’ imprisonment and three years’ supervised release on January 17, 2018, for conspiracy to commit mail fraud and aggravated identity theft counts.
Judge Rambo also ordered Hall to pay $96,431 and Blunt to pay $38,633 restitution to the Utah, Pennsylvania, and Hawaii Departments of Labor.
According to U.S. Attorney David J. Freed, Hall and Blunt were convicted by a jury on March 10, 2017. Hall was convicted on 12 mail fraud counts, 10 money laundering counts, four aggravated identity theft counts, conspiracy to commit mail fraud, and conspiracy to commit money laundering. Blunt was convicted of conspiracy to commit mail fraud and aggravated identity theft. The jury also directed Hall to forfeit the sum of $30,000 and Blunt to forfeit $1,026.
Hall and Blunt applied for Veteran’s unemployment compensation benefits under the Unemployment Compensation for Ex-Service Members Program, commonly known as “The UCX Program.” The UCX Program is a federally funded U.S. Department of Labor program administered by the States. Hall assumed the identity of 10 individuals between 2013 and 2014 in order to receive benefits under the program. Blunt assumed the identity of one individual to receive benefits under the program.
“Hall and Blunt defrauded the Hawaii, Pennsylvania, and Utah unemployment insurance agencies by conspiring to steal the identities of ex-military members in order to receive benefits under the Unemployment Compensation for Ex-Service Members (UCX) Program. We will continue to work with our law enforcement partners to safeguard the UCX Program, a federally funded U.S. Department of Labor unemployment compensation program,” said Richard Deer, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The investigation was conducted by the U.S. Department of Labor Office of Inspector General, U.S. Defense Criminal Investigative Service, U.S. Postal Inspection Service with assistance from Pennsylvania Department of Labor and Industry, Internal Audits Division, Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of the Treasury, Office of Unemployment Compensation Disbursements. Assistant U.S. Attorneys Kim Douglas Daniel and Scott R. Ford prosecuted the case.
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Tax Preparers Indicted for Conspiracy and Filing False Tax ReturnsRead 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 fourteen count indictment against four former tax preparers. Karen Tompkins (57), Shalonda Burns (40), Latoya Bush (37), and Lori Ann Stringfellow (55), are all residents of Milwaukee, and were employed as tax return preparers at a Liberty Tax Service Branch located at 3929 N. Humboldt Boulevard in Milwaukee, Wisconsin.
Each defendant is charged with conspiracy to knowingly defraud the United States by preparing and filing with the IRS false tax returns that fraudulently claimed tax refunds to which the individuals were not entitled, in violation of Title 18, United States Code, Section 371. Tompkins, Bush and Stringfellow were also charged with three counts each of willfully aiding in the preparation and filing of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2) and Title 18, United States Code, Section 2.
Burns was charged with two counts of Title 26, United States Code, Section 7206(2) and Title 18, United States Code, Section 2 along with one count of aggravated identity theft and one count of wire fraud, in violation of Title 18, United States Code 1028A and Title 18, United States Code 1343. If convicted of the charges, Tompkins, Bush and Stringfellow could face up to 14 years in prison. Burns could face a total of 33 years in prison including a mandatory sentence of two years.
The indictment alleges that the defendants fabricated their client’s business income, which fraudulently inflated the Earned Income Credit each client could claim and thereby increased each client’s refund. In addition, the indictment alleges that the defendants also created false business income and expense invoices and received kickbacks from the tax refunds.
“Tax season is upon us and so are disreputable tax return preparers,” said IRS Criminal Investigation, St. Paul Field Office Acting Special Agent in Charge Hubbard Burgess. “When these four allegedly conspired to submit false tax returns, they failed to take into account they were committing fraud and stealing from the US government, but more importantly they were stealing from the pockets of all taxpayers.”
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 division and is being prosecuted by Assistant United States Attorney Benjamin Taibleson.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Spearfish Man Sentenced for Attempted Enticement of a Minor Using the InternetRead the Press Release
United States Attorney Ron Parsons announced that a Spearfish, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet was sentenced on February 9, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Nicholaus Tripp, age 29, was sentenced to 10 years of imprisonment and 10 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Tripp was charged on January 10, 2017. The charge relates to Tripp posting an ad on Craiglist and then communicating with someone he believed to be the mother of two girls, ages 13 and 15, who was actually an undercover law enforcement agent, to arrange a meeting to engage in sexual acts with the girls.
This case was investigated by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Tripp was immediately remanded to the custody of the United States Marshals Service.
Social Security Administration Employee and Husband Convicted in Public Benefit Fraud SchemeRead the Press Release
Montgomery, Ala. – On Thursday, February 15, 2018, a federal jury found two Montgomery residents guilty of fraud and witness tampering, announced United States Attorney Louis V. Franklin, Sr. The two defendants were Nakia Palmer, 35, a former employee of the Social Security Administration, and her husband, Nathaniel Palmer, 30. Nakia Palmer was convicted of mail fraud, theft of government property, Social Security benefit fraud, and food stamp fraud. The jury convicted Nathaniel Palmer of mail fraud, theft of government property, and witness tampering. Each defendant was found guilty of all counts in which he or she was charged.
The trial evidence showed that the Palmers lied about their incomes and living arrangements for the purposes of fraudulently obtaining Social Security benefits on behalf of Nakia Palmer’s minor son. Specifically, Nakia Palmer falsely informed Social Security employees in Dothan, Alabama that she was an actress living in California. She further told Social Security that she left her minor son in her husband’s exclusive custody. She told these lies so that Social Security would not consider her income in determining whether her son was eligible for benefits and would only consider her husband’s income. All the while, Nakia Palmer worked for Social Security in the Montgomery office and was not an actress in California when applying for the benefits. The evidence also showed that the Palmers did not use the fraudulently obtained benefits to support Nakia Palmer’s child. Rather, the couple spent the money on the purchase of a vehicle. According to the evidence, Nakia Palmer made similar false claims for the purpose of obtaining food stamps. In total, the Palmers received approximately $25,000 in benefits to which they were not entitled.
As for the witness tampering, the government proved that, after becoming aware that he was under investigation, Nathaniel Palmer asked his next-door neighbor to lie to investigators regarding the family’s living arrangements.
“Government benefit programs exist to ensure that those in need do not go without the necessities of life,” said United States Attorney Franklin. “The Palmers abused the system not out of need, but to maintain their lifestyles. In carrying out their greedy scheme, the Palmers apparently thought that they were above the law. I hope that this verdict sends the message that the theft of taxpayers’ dollars will not go unpunished.”
“The Social Security Office of the Inspector General has no higher priority than the investigation and prosecution of employees who violate the public’s trust by using their knowledge of the SSA programs to defraud the very agency that employs them,” stated SSA-OIG Special Agent in Charge Margaret Moore-Jackson. “I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the SSA’s programs for those who rely on them now and into the future.”
“We will continue to work with our law enforcement partners to protect the vital programs that protect the welfare and health of our most vulnerable citizens,” said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General.
A date for sentencing has not yet been set. Both defendants face maximum sentences of 20 years’ imprisonment, as well as substantial monetary penalties.
This case was investigated by the Social Security Administration – Office of Inspector General, as well as the United States Department of Health and Human Services – Office of Inspector General. The United States Department of Agriculture – Office of Inspector General assisted in the investigation, along with the Alabama Department of Human Resources. Assistant United States Attorneys Jonathan S. Ross and Joshua Wendell are prosecuting the case.
Rosebud Man Charged with Assault with Intent to Commit MurderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault With Intent to Commit Murder, Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Lawrence Gary, Jr., age 19, 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 20 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 21, 2018, Gary assaulted a man with a knife, a pan, and with shod feet.
The charges are merely accusations and Gary is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Gary was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rochester Man Pleads Guilty to Drug and Firearm ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Terry Wilson, 39, of Rochester, NY, pleaded guilty, before U.S. District Judge Lawrence J. Vilardo, to possession with intent to distribute cocaine base and a felon in possession of a firearm. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins who is handling the case, stated that on June 26, 2017, during a vehicle and traffic stop, the defendant was found in possession of a Jimenez Arms, J.A. NINE model, 9 mm semi-automatic pistol, bearing serial number 375367, which was loaded with 11 rounds of 9 mm ammunition. The traffic stop was made after the defendant was observed driving southbound on Bailey Avenue at a high rate of speed. Upon stopping the vehicle, the officers recognized the defendant from previous contacts with him and knew that he did not have a valid driver’s license. The officers patted the defendant down and recovered approximately 3.71 grams of cocaine base from the defendant’s pockets. The defendant admits that he possessed the cocaine base with intent to distribute it.
Thereafter, the defendant’s passenger was removed from the vehicle and the firearm was recovered from within the passenger’s purse. The defendant admits the firearm belonged to him and that he maintained dominion and control over the firearm while he stored it in the passenger’s purse.
The defendant admitted that on or about July 19, 2012, in Erie County Court, he was convicted of Criminal Possession of a Controlled Substance in the Fifth Degree, which is a crime that is punishable by imprisonment for a term exceeding one year. The defendant further admitted that on or about June 22, 2005, he was convicted of Felon in Possession of a Firearm, which is a crime that is punishable by imprisonment for a term exceeding one year.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Resident Agent in Charge Steve Dickey and the Buffalo Police Department, under the direction of Acting Commissioner Byron Lockwood.
Sentencing is scheduled for May 23, 2018, at 9:30 a.m. before Judge Vilardo.
Richardson Man Indicted for Offenses Related to His Support of ISISRead the Press Release
DALLAS — A federal grand jury in Fort Worth returned a superseding indictment this week, charging Said Azzam Mohamad Rahim, 41, of Richardson, Texas, with seven counts related to a terrorism investigation, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas and Eric Jackson, Special Agent in Charge of the Dallas Field Office of the FBI.
The indictment supersedes an earlier indictment returned in the case. Rahim is charged with six counts of false statements to a federal agency and one count of attempting to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (ISIS).
Rahim was arrested in March 2017 on a related criminal complaint and will remain in custody pending trial. The maximum statutory penalty for each false statement count is eight years in federal prison, a period of supervised release, and a $250,000 fine. Rahim faces not more than 20 years in federal prison and a possible fine for attempting to provide material support to a designated foreign terrorist organization.
“Our highest priority is to pursue justice against those who seek to harm our country and our citizens,” said U.S. Attorney Erin Nealy Cox. “I appreciate the outstanding work by the Dallas FBI and the support of the Department’s National Security Division.”
The indictment alleges that Rahim made a number of false statements to federal law enforcement on March 5, 2017 related to his support for ISIS.. The indictment also alleges, beginning in October 2014 and continuing through March 2017, Rahim attempted to provide material support or resources, including services and personnel, to ISIS.
The Federal Bureau of Investigation is responsible for this investigation, specifically its Joint Terrorism Task Force which includes Richardson Police Department, Dallas Police Department, Department of Homeland Security, Department of State Diplomatic Security Service, and the Federal Air Marshal Service. Assistant United States Attorney Errin Martin is prosecuting the case with assistance from Taryn Meeks with the Department of Justice National Security Division’s Counterterrorism Section.
The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors
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Rapid City Man Sentenced for Illegally Possessing a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jacob Bryan, age 25, was sentenced on February 15, 2018, to time served and 3 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bryan was charged on March 21, 2017. The charge relates to Bryan being found in possession of a .38 caliber revolver and ammunition along with drug paraphernalia after a traffic stop near Kyle in February 2017.
This case was investigated by Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Pittsford Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Bernecki, 29, of Pittsford, NY, pleaded guilty to possessing child pornography depicting prepubescent minors before United States Magistrate Judge Marian W. Payson.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that in 2012 Bernecki was convicted for possessing and distributing child pornography in the Western District of New York. As a result of that conviction, Bernecki served a five year prison sentence. He was released in 2016 and began a 15-year period of supervised release which was administered by the United States Probation Department, Rochester Office. As part of his release conditions, Bernecki was subject to a search condition, which provided Probation Officers authority to inspect Bernecki’s home and digital devices. On December 8, 2017, during a routine inspection, Probation Officers found that Bernecki was in possession of an unauthorized smartphone. Probation Officers seized the phone and subsequently discovered the presence of child pornography. The Federal Bureau of Investigation, Rochester Office, assisted in forensically examining the phone, which resulted in the discovery of approximately 200 images and 25 videos depicting the sexual abuse of children.
The plea is the result of an investigation by the United States Probation Department under the direction of Chief Probation Officer Anthony SanGiacomo, and the Federal Bureau of Investigation, Buffalo Division, under the direction of Acting Special Agent in Charge Kevin P. Lyons.
Phony entertainment booking agent charged in fraud schemeRead the Press Release
ATLANTA – Octaveon Woods has been arraigned on wire fraud and money laundering charges for his scheme to defraud colleges, universities, and others by falsely claiming that he was a booking agent for famous musicians such as Migos, Lil Yachty, and Lil Uzi Vert.
“Woods allegedly convinced others to pay him thousands of dollars to ‘book’ these artists for concerts and festivals—when he had no relationship with the artists at all,” said U.S. Attorney Byung J. “BJay” Pak. “Woods immediately laundered the money to try and conceal his fraud.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Woods owned and operated several companies, including Global Talent Agency, GTA Bookings, and National Artist Agency, that claimed to be booking agencies in the entertainment industry. Woods advertised that these agencies represented dozens of famous musicians, comedians and other artists, including hip-hop and rap artists Migos, Lil Yachty, and Lil Uzi Vert.
Student groups at Emory University, the University of Missouri, and other victims hired Woods’ companies to book these artists for concerts and festivals. In reality, neither Woods nor his companies had any relationship with these artists. As soon as his victims would wire him money to book the concerts, Woods drained the funds by transferring them to other accounts and withdrawing them as cash.
Octaveon Woods, 26, of Decatur, Illinois, was arraigned this week before U.S. Magistrate Judge John K. Larkins, III. He was indicted by a federal grand jury on February 6, 2018.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove his guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Department of Education Office of Inspector General.
Assistant U.S. Attorney Lynsey M. Barron is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Panama City Man Sentenced to 84 Months in Prison for Federal Child Pornography OffensesRead the Press Release
PANAMA CITY, FLORIDA – Russell Scott Hardman, 57, of Panama City, was sentenced yesterday in the U.S. District Court in Panama City to 84 months in prison for distribution, receipt, and production of child pornography after pleading guilty on November 30, 2017. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In May 2017, Homeland Security Investigations received a tip from the Royal Canadian Mounted Police in which a user of the social media platform Kik was uploading child pornography. Agents were able to determine that Hardman was using his cellular telephone to access Kik, as well as using his e-mail to upload images of child pornography while at work and at home. A forensic review of Hardman’s cellular telephone revealed 561 images and 135 videos of child pornography. Investigation disclosed that Hardman distributed at least 20 of those videos in a group chat. At least 20 videos of child pornography depicted infants, toddlers, and prepubescent children engaged in sex acts.
United States Attorney Christopher P. Canova stated, “We will continue to utilize the resources of our office to aggressively prosecute anyone who attempts to steal the innocence of a child while hiding in the shadows of the Internet.”
“This child predator thought he could hide in anonymity behind the Internet,” said HSI Tampa Special Agent in Charge James C. Spero. “Thanks to the investigative skills of our HSI special agents, and partners at the Bay County Sheriff’s Office and the Royal Canadian Mounted Police, his crimes were exposed, and he will now be held accountable.”
“The Bay County Sheriff's Office is committed to maintaining strong working partnerships with fellow law enforcement agencies,” Bay County Sheriff Tommy Ford said. “These partnerships serve to increase our success in finding and bringing criminals like Hardman to justice.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations and the Bay County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Owners of Pennsylvania Based Internet Florist Convicted of Tax CrimesRead the Press Release
A Pennsylvania couple that owned and operated an internet floral business was convicted yesterday of failing to pay over employment taxes to the Internal Revenue Service (IRS) and of filing fraudulent personal and corporate tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting United States Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the evidence introduced at trial, Andrew Bassaner (aka Andrew Bunchuk), 45, and his wife and business partner, Vicki Bunchuk, 44, owned and operated Florist Concierge Inc. (FCI). For tax years 2010 through 2012, Bunchuk, aided and assisted by Bassaner, filed fraudulent corporate and personal income tax returns with the IRS. They diverted funds from FCI, which they deducted as business expenses on FCI’s corporate returns and did not report as income on their personal returns. They spent the money on personal luxuries, including a monthly rent of $17,000 for a home in Windemere, Florida. In addition, from 2011 through 2014, Bassaner and Bunchuk filed fraudulent employment tax returns for FCI that falsely classified its employees as independent contractors. Based on this fraudulent classification, Bassaner and Bunchuk claimed not to owe employment taxes on the wages paid to those individuals.
Sentencing is scheduled for June 27 before U.S. District Court Judge Michael M. Baylson. The defendants face a statutory maximum sentence of five years in prison for each employment tax count and three years in prison for each count of filing a fraudulent return. They also face a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Lappen thanked special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney David Ignall and Trial Attorneys Christopher O’Donnell and Jack Morgan of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Oklahoma City Man Sentenced for His Role in the Robbery of Haltom’s JewelersRead the Press Release
FORT WORTH — Garland Gilmore Lenoir III, 52, of Oklahoma City, Oklahoma, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to serve a total of 221 months in federal prison, following his guilty plea in October 2017 to his role in a conspiracy to rob Haltom’s Jewelers in Grapevine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Lenoir pleaded guilty to one count of interference with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. He has been in custody since his arrest in July 2017.
Co-defendants, Melvin Lewis Andrews and Willie Thompson Jr. previously pleaded guilty to their roles and were sentenced by Judge O’Connor to 188 and 262 months in federal prison, respectively.
According to plea documents filed in the case, on October 3, 2014, the defendants traveled to Haltom’s Jewelers in a stolen vehicle and entered the store wearing masks and carrying handguns and hammers. They smashed the display cases with the hammers and stole merchandise, to include jewelry and watches.
The FBI and Grapevine Police Department investigated the case. Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.
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Ohio Man Pleads Guilty in Scheme to Distribute Heroin in Western PennsylvaniaRead the Press Release
PITTSBURGH – An Ohio resident pleaded guilty in federal court to a count of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
Christopher Smith, 21, of East Liverpool, Ohio, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Smith conspired with others to possess with intent to distribute and to distribute kilogram quantities of heroin, which was supplied from Mexico to Ohio and then later to Aliquippa in the Western District of Pennsylvania.
Judge Cercone scheduled sentencing for June 22, 2018. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Hopewell Township Police Department, Beaver County District Attorney’s Office, Aliquippa Police Department, and the Beaver County Sheriff’s Office conducted the investigation that led to the prosecution of Christopher Smith.
New York Man Pleads Guilty to Attempting to Join ISIS in YemenRead the Press Release
Mohamed Rafik Naji, 38, of Brooklyn, New York, pleaded guilty today to one count of attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, U.S. Attorney Richard P. Donoghue, Assistant Director in Charge William F. Sweeney of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD announced the guilty plea. The plea was accepted by U.S. District Judge Frederic Block.
As detailed in publicly filed court documents, Naji, a lawful permanent resident originally from Yemen, viewed and distributed ISIS propaganda before traveling from New York to Yemen in March 2015 in an effort to join ISIS. While in Yemen, Naji repeatedly tried to travel to areas controlled by ISIS, explaining in emails with an associate in the United States that he was on his fifth attempt to reach ISIS. Naji described traveling through militarized zones and claimed that he and his group had almost been “killed . . . by army.” In addition, he explained that “we have trouble getting in the party” because there were “to[o] many security [g]uards all ova the place” that would “kill us if they find us.” Naji also sent his associate videos that he made in Yemen. In one of the videos that was attached to an email with the subject line “First day on the job,” Naji’s voice can be heard over the sound of automatic weapons saying “I think we’re taking fire.” Naji also sent his associate ISIS propaganda videos. In addition, in an online conversation, Naji proclaimed his allegiance to ISIS stating, “I belong to Islamic state only.”
Following his return to the United States in September 2015, Naji continued to express his support for ISIS and violent jihad. For example, he explained ways to travel to ISIS-controlled territory in Syria by crossing the Turkish border, and how to employ strategies to avoid arrest in Turkey. In July 2016, following the ISIS-inspired terrorist truck attack in Nice, France, Naji discussed how easy it would be to carry out a similar attack in Times Square, explaining that ISIS “want an operation in Times Square” and stating that an ISIS “reconnaissance group . . . put up scenes of Times Square.” Naji further explained “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them…Times Square day.” He was arrested by members of the New York JTTF in the autumn of 2016. At sentencing, Naji faces a statutory maximum term of 20 years’ imprisonment.
Mr. O’Callaghan and Mr. Donoghue extended their grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a number of federal, state and local agencies from the region.
This case was prosecuted by Assistant U.S. Attorneys Ian C. Richardson and Melody Wells of the Eastern District of New York, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
Morrisville Man Sentenced to 90 Months for Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – Michael Caraher, age 28, of Morrisville, New York, was sentenced today to 90 months in prison for distribution, receipt and possession of child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chief United States District Judge Glenn T. Suddaby also sentenced Caraher to 20 years of supervised release, to begin following his term of imprisonment. Caraher will also be required to register as a sex offender upon his release from prison.
Caraher pled guilty in October 2017. He admitted using a custom-built desktop computer to access child pornography-oriented Internet sites, including at least one site on the anonymous “Tor” network, for the purpose of downloading child pornography. Caraher admitted to using peer-to-peer file-sharing software on a laptop computer to download additional child pornography, which he stored on external drives. Overall, Caraher downloaded and saved more than 100 videos and almost 1,000 images depicting child pornography. Caraher further admitted to using an instant messaging application on his phone to trade child pornography with other users.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Mission Man and Woman Charged with Wire FraudRead the Press Release
United States Attorney Ron Parsons announced that a man and a woman from Mission, South Dakota, have been indicted by a federal grand jury for Conspiracy to Commit Wire Fraud and Wire Fraud.
Mark Edward O’Leary, age 35, and Sharli Colombe, age 35, were indicted on February 14, 2018. They appeared before U.S. Magistrate Judge Mark A. Moreno on February 15, 2018, and both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 4, 2011, through June 6, 2017, O’Leary and Colombe passed at least 544 checks drawn on a bank account not belonging to either of them. The checks were used for personal items for O’Leary and Colombe and the purchases or deposits were not authorized by the owner of the bank account.
The charges are merely accusations and O’Leary and Colombe are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
O’Leary and Colombe were released on bond. A trial date has not been set.
Mission Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Carlos Eddie Charging Elk, age 26, 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 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 19, 2017, Charging Elk, having previously been convicted of a felony, did knowingly possess a firearm.
The charge is merely an accusation and Charging Elk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Charging Elk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Charged with Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Matthew Peneaux, a/k/a Matthew Swalley, age 34, was indicted on October 24, 2017. 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 prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about March 28, 2015, and April 30, 2016, Peneaux knowingly engaged in, and attempted to engage in, a sexual act with a minor female.
The charge is merely an accusation and Peneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Peneaux was released pending trial. A trial date has not been set.
Middle Township Teacher Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A teacher in the Middle Township public schools today admitted defrauding New Jersey state health benefits programs and other insurers out of over $2,000,000 by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito and New Jersey Attorney General Gurbir S. Grewal announced.
Shawn Sypherd, 46, of Marmora, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Sypherd served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Sypherd and others recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy which were not medically necessary. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
The pharmacy then paid one of Sypherd’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Sypherd and other members of the conspiracy. Sypherd paid individuals with insurance coverage in cash to reward them for obtaining prescriptions.
According to the information, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
Sypherd received approximately $354,264.06 for his role in the scheme.
As part of the plea agreement, Sypherd must forfeit $354,264.06 in criminal proceeds and pay restitution of at least $2,439,548.32.
The defendant faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 1, 2018.
Thirteen other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, Richard Zappala, Michael Neopolitan, Andrew Gerstel, Timothy Frazier, and Michael Pilate – pleaded guilty from August through January 2018 and await sentencing.
U.S. Attorney Carpenito credited agents of the Federal Bureau of Investigation’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the guilty pleas. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and R. David Walk, Jr. of the U.S. Attorney’s Office in Camden.
Defense counsel: Marc Neff, Esq., Philadelphia, PA
Mexican Citizen Sentenced to Nine Years for Trafficking in MethamphetamineRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Gregorio Lucas-Ramos (29) to nine years in federal prison for conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine. He pleaded guilty on October 25, 2017.
According to court documents, Lucas-Ramos is a Mexican citizen who entered the country illegally and resided in Alabama. In June 2015, an individual in Pasco County advised law enforcement that a Mexican man in Alabama, known to him as Gregorio, contacted the individual and discussed selling methamphetamine. During a series of phone calls, Lucas-Ramos arranged to deliver a half pound of methamphetamine to the individual. On June 25, 2015, Lucas-Ramos and a co-defendant, Josuel Ortiz, met the individual in a parking lot near a restaurant in Wesley Chapel. Ortiz retrieved the methamphetamine from under his vehicle and handed it to Lucas-Ramos. After Lucas-Ramos sold the methamphetamine to the individual, he said that his associate would make any future deliveries.
The next day, Lucas-Ramos and the individual working with law enforcement arranged for another delivery of methamphetamine. On July 1, 2015, Ortiz arrived at the agreed upon location, driving the same vehicle he used during the previous transaction. Ortiz and the individual drove to another location and parked their cars. Ortiz exited his vehicle and retrieved methamphetamine from a hidden compartment underneath the car. Law enforcement officers who had been surveilling the transaction then arrested Ortiz, searched his vehicle, and recovered the methamphetamine.
In total, law enforcement seized over four kilograms of high purity methamphetamine. On August 5, 2016, Ortiz, was sentenced to 14 years in federal prison.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Drug Enforcement Administration and the Pasco County Sheriff’s Office. It was prosecuted by United States Attorney Maria Chapa Lopez and Assistant United States Attorneys Michael Leeman and Michael Sinacore.
Meth Dealer Who Possessed Firearms to Serve 15 Years in Federal PrisonRead the Press Release
A man who possessed methamphetamine with the intent to distribute and who possessed several firearms in furtherance of his drug trafficking crime, including an AR-15 rifle, was sentenced February 12, 2018, to 15 years in federal prison.
Travis Daniel Counsell, 48, from Rockford, Iowa, received the prison term after a July 6, 2017, guilty plea to possession with intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime.
Information provided by the United States at the sentencing and change of plea hearings showed that on February 7, 2017, law enforcement was called to Mercy Medical Center North Iowa to investigate a subject that presented himself in the emergency room with a gunshot to the foot. Counsell reported he had shot himself in the foot with an AR-15 rifle. Counsell was a convicted felon, and not able to legally possess firearms. A search warrant was obtained for Counsell’s residence. Located during the search warrant was the loaded AR-15, a loaded .45 caliber handgun, and approximately two pounds of high purity methamphetamine. Counsell knowingly possessed the guns in furtherance of the drug trafficking crime.
Counsell was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Counsell was sentenced to 120 months’ imprisonment on the drug count and to 60 months’ imprisonment on the gun count, to be served consecutively. A special assessment of $200 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Counsell 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 Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, and the Division of Narcotics Enforcement (DNE),
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3015. Follow us on Twitter @USAO_NDIA.
Mandeville Woman Charged with Tax EvasionRead the Press Release
United States Attorney Duane A. Evans announced that MARCIA DENISE JORDAN, age 45, a resident of Mandeville, was charged today in a one-count bill of information with tax evasion, in violation of Title 26, United States Code, Section 7201.
According to the bill of information, JORDAN willfully attempted to evade tax due and owing for tax year 2011, by filing a false IRS form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return), which falsely stated that her total estimated tax liability was $0 and that she had made $10,000 in payments to the IRS, despite knowing that she had received $493,266 in taxable income that year.
If convicted, JORDAN faces a maximum term of imprisonment of five years, a fine of $250,000, three years of supervised release, and a $100 special assessment fee.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Internal Revenue Service, United States Secret Service, and the Slidell Police Department in investigating this matter. Assistant United States Attorney Jon Maestri and DOJ Tax Division Trial Attorney Grace Albinson are in charge of the prosecution.
Man Indicted for Selling Stolen Military Property and Drug PossessionRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging SCOTT DOUGLAS BROWNING, age 40, of Fayetteville, NC, with 2-counts of willfully and knowingly receiving, concealing and retaining stolen property belonging to the United States military, 1-count of shipping the stolen items overseas in violation of the International Traffic in Arms Regulations (ITAR), 1-count of knowingly and intentionally possessing oxycodone, a Schedule II controlled substance, and 1-count of knowingly and intentionally possessing testosterone.
BROWNING conspired with numerous individuals to steal government property and military equipment. He utilized eBay accounts to sell and export the stolen equipment to the Netherlands without having first obtained from the Department of State a license for such export or written authorization for such export and after he had been formally notified such transactions were in violation of federal export law. He also sold over $1.5 million of stolen military equipment within the United States. Additionally, BROWNING possessed oxycodone and testosterone.
If convicted of these charges BROWNING would face maximum penalties of forty-two years’ imprisonment, $1,700,000 fine and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation, the United States Army Criminal Investigation Division, Defense Criminal Investigative Service, Homeland Security Investigations, and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Jason Kellhofer and Assistant United States Attorney Eleanor Morales are prosecuting this case on behalf of the government.
Man Illegally Residing in Lexington Pleads Guilty to Illegally Possessing a Firearm and Fraudulent Social Security CardsRead the Press Release
LEXINGTON, Ky. — Jesus Yakamara Lopez-Villa, a Mexican national illegally residing in Lexington, was sentenced to 33 months in prison, after pleading guilty to being a prohibited person in possession of a firearm and to possession of fraudulent social security cards.
Law enforcement officers encountered Lopez-Villa in June 2017, during the execution of a state search warrant in Lexington. Officers found Lopez-Villa in possession of three grams of cocaine, two fraudulent Social Security Cards, and a pistol. Lopez-Villa, a citizen of Mexico without permission to enter the United States, has previously been deported on two separate occasions.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Byers, Assistant Field Office Director, U.S. Immigration and Customs Enforcement (ICE); and Ron Compton, Acting Chief of Police, Lexington Police Department, jointly announced the sentence today.
ICE and the Lexington Police Department conducted the investigation. Assistant United States Attorney Lauren Tanner Bradley represented the United States.
This case was prosecuted 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 neighborhoods safer for everyone. Attorney General Sessions has made turning the tide of rising violent crime in America a top priority. 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.
Man Charged with Possession of Stolen FirearmsRead the Press Release
U.S. Attorney Duane A. Evans announced that STEVEN RE, age 41, was charged on February 15, 2018, in a two-count indictment with possession of stolen firearms, in violation of 18 U.S.C. § 922(j).
According to the indictment, RE possessed a .22 caliber rifle, a .410 gauge shotgun, and a 20-gauge shotgun while knowing or having reasonable cause to believe the firearms were stolen. If convicted, RE faces as to each count a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Evans reiterated that an indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney J. Ryan McLaren is in charge of the prosecution.
Kanawha Repeat Offender Sentenced to Federal Prison for Cerro Gordo County Meth ConspiracyRead the Press Release
A man who conspired to manufacture methamphetamine was sentenced February 12, 2018, to 15 years in federal prison.
Todd Edward Daniels, 49, from Kanawha, Iowa, received the prison term after an August 9, 2017, guilty plea to conspiracy to manufacture methamphetamine. Daniels was previously convicted of conspiracy to manufacture and distribute methamphetamine in 2005.
At the guilty plea, Daniels admitted his involvement in a conspiracy that manufactured more than 50 grams of actual (pure) methamphetamine between the fall of 2016 and May, 2017. The investigation monitored Daniels’ activities, and purchases of pills containing pseudoephedrine by users/associates of Daniels. Daniels knew the pseudoephedrine pills he and his friends/associates purchased would be used to manufacture methamphetamine. A search warrant at Daniels residence revealed multiple items used in clandestine methamphetamine laboratories.
Daniels was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Daniels was sentenced to 180 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Daniels 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 Jack Lammers and investigated by the Division of Narcotics Enforcement (DNE), the North Central Iowa Narcotics Task Force and the Britt Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-3021. Follow us on Twitter @USAO_NDIA.
Jury Convicts Two KC Men of Kidnapping, MurderRead the Press Release
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KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were convicted by a federal trial jury today of charges related to the kidnapping and murder of another man.
Raynal King, 26, and Howard R. Ross, III, also known as “Lil’ Howard” and “Shooter,” 23, both of Kansas City, were found guilty of multiple counts related to the carjacking, kidnapping and murder of Jaime Patton on Sept. 6, 2016.
King and Ross were convicted of one count of conspiracy to commit kidnapping, one count of aiding and abetting a kidnapping resulting in death, one count of using a firearm in furtherance of a kidnapping that resulted in a first degree felony murder, one count of robbery of a motor vehicle (carjacking) resulting in death, one count of using a firearm in furtherance of carjacking that resulted in a first degree felony murder, and one count of aiding and abetting each other as felons in the possession of a firearm.
Patton was returning home from the hospital, where he had been caring for a family member, sometime after 5 a.m. that day when King and Ross kidnapped him and stole his 2014 Jeep Patriot. They held Patton at gunpoint and drove him around in his Jeep to ATM machines, attempting to force him to provide his PIN number for his debit card so they could withdraw cash from his bank account.
Patton was unable to provide a working PIN number to withdraw cash. While held at gunpoint by King and Ross in the Mazuma Credit Union parking lot, he called his wife to obtain the working PIN number, but he was unable to do so. King and Ross became upset with the lack of cooperation from Patton and shot him in his upper thigh to make sure he knew they were not playing around.
King and Ross then drove Patton in his Jeep south on Holmes Road while they discussed what to do with him. At approximately 6:30 a.m., shortly after traveling south on Holmes Road through the intersection with 135th Street and further out of the city, Patton jumped out of his Jeep while it was moving. Patton was shot multiple times while attempting to jump and he fell to the roadway. King and Ross then fled from the area in Patton’s Jeep, leaving him to die on the side of the road.
According to evidence introduced during the trial, King and Ross began planning to commit a robbery a couple of days earlier. King had recently purchased a silver Pontiac Grand Prix but was unable to make his car payments or pay the sales tax fees. Text messages between King and Ross (recovered from their phones) shows that only days before the kidnapping King communicated with Ross about his problems and about a potential robbery.
Ross, who was on state probation for robbery at the time of the crime, was held in the Jackson County Jail after his arrest. While in the Jackson County Jail, Ross made multiple recorded phone calls to others regarding disposing of various items of evidence. Ross discussed with friends and family the location of his iPhone, which led to search warrants and the recovery of Ross’s iPhone and further evidence on his iPhone.
Investigators recovered evidence from Ross’s iPhone that showed weeks before the kidnapping Ross had a Springfield Armory .45-caliber pistol. Patton was murdered with a .45-caliber bullet. Ross took photos of himself carrying the pistol; he messaged those photos to others and posted photos on social media sites. Shortly after the murder, Ross attempted to sell the pistol to an acquaintance.
When forensic examiners were able to search King’s Android phone, several messages, photographs, and relevant Internet searches were recovered as evidence. King took photos of the stolen Jeep and messaged with others in an attempt to sell the Jeep to obtain sufficient money to make his own car payment on his Silver Pontiac Grand Prix before it would be repossessed.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for just under three hours before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, Feb. 12, 2018.
Under federal statutes, King and Ross each face mandatory life imprisonment. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jess E. Michaelsen and Patrick C. Edwards. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Jury Convicts KC Man of Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted by a federal trial jury today of a nearly $500,000 investment fraud scheme.
Ryan Scott Luscombe, 45, of Kansas City, was found guilty of all six counts contained in a June 6, 2017, federal indictment. Luscombe was convicted of three counts of wire fraud, two counts of mail fraud and one count of money laundering.
Luscombe solicited investments for his business, Five Star Trading Group, Inc., claiming to investors that he would utilize his expertise in stock trading to produce exorbitant returns. Instead, evidence introduced during the trial indicated that the entirety of investor funds, which totaled $483,482, was used by Luscombe on personal expenditures in 2013, 2014 and 2015, including the purchase of a 2010 BMW 750I and a trip to Bermuda.
To date, none of Luscombe’s investors have received funds from returns or their original investment.
During the course of the scheme to defraud victims of their investment money, Luscombe represented himself as a wealthy individual and a successful day trader capable of producing tremendous returns on investments.
Luscombe told investors he was creating a new business to manage over $50 million from three investors in Arizona. Luscombe claimed he would be the primary investment trader, but because the dollar amount to be invested would be too large for one person to handle, he recruited two people to assist in his trading endeavor. In exchange for a fee or investment in the business, Luscombe offered to train the additional individuals in his trading strategy. Eventually, Luscombe told investors he would allow a small number of friends and family to take advantage or “piggyback” off the investment strategy of the larger investors.
Luscombe’s stated investment strategy was to trade securities in the stock market based on the identification of trends in the upward or downward direction of the stock price. Luscombe told investors the risk was very low and minimal because he constantly monitored the stock price. Luscombe told investors he had been in the trading business for many years and had previously made millions of dollars.
Luscombe regularly provided positive projected investment return updates to the victims regarding their investments, and claimed investor money would be utilized for trading and generating profits for investors. As a direct result of these conversations, investors entrusted their money to him.
Investors never authorized Luscombe to spend investment money on personal expenditures. Luscombe never told investors their investment money would be spent on his personal expenditures. A salary for Luscombe was not authorized by investors. At the time of investment, Luscombe never informed investors that investment funds would be utilized to pay his salary. An analysis of financial activity revealed Luscombe’s spending of investor funds included the following:
(a) $83,088 in cash and cash equivalents;
(b) $78,542 in retail expenses;
(c) $67,990 in restaurants and entertainment;
(d) $52,925 in vehicle expenses;
(e) $45,940 in travel expenses;
(f) $41,058 in rent and utilities;
(g) $39,673 in investment firm losses, fees, and interest; and
(h) $21,144 in nutrition, fitness and beauty expenses.
Luscombe was not registered with the Financial Industry Regulatory Authority as a broker dealer or as an investment advisor representative. Luscombe and Five Star Trading Group were not registered with the Missouri Secretary of State – Securities Division.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for a little over two hours before returning the guilty verdicts to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Feb. 12, 2018.
Under federal statutes, Luscombe is subject to a sentence of up to 20 years in federal prison without parole on each of the fraud counts, and sentence of up to 10 years in federal prison without parole for money laundering. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman and Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the FBI.
Juneau Sex Offender Sentenced for Receipt of Child PornographyRead the Press Release
Anchorage, Alaska –U.S. Attorney Bryan Schroder announced today Jim Wayne Thornhill, 40, of Juneau, Alaska, was sentenced on Friday, February 16, 2018 to 262 months (21 years and 10 months) in prison, followed by a lifetime term on supervised release, for receipt of child pornography. On September 22, 2017, a federal jury found Thornhill guilty after a five-day trial before Chief U.S. District Court Judge Timothy M. Burgess.
According to the evidence presented at trial, the Federal Bureau of Investigation (FBI) had received a report of harm that had been forwarded from the National Center for Missing and Exploited Children (NCMEC) and the Internet Crimes Against Children (ICAC) to the Juneau Police Department. The FBI was called in to assist in the investigation. The FBI traced the phone call to a local employer and subsequently identified, Jim Wayne Thornhill, as a person of interest. At Thornhill’s initial contact, Thornhill denied having a cell phone and admitted making the phone call the FBI was investigating. Thornhill is a convicted sex offender, who was convicted by the State of Alaska for Sexual Abuse of a Minor in the Second Degree in 2007, where the defendant had repeatedly sexually abused a child from the age of 6 to11.
The FBI learned that Thornhill’s employer, located a cell phone and handwritten lists with search terms and internet addresses that were associated with child pornography. FBI interviewed Thornhill several days later. In that interview, the defendant admitted to writing the handwritten lists of search terms and admitted ownership of the cell phone, and admitted to accessing the Internet with the cell phone between September and November 2014 to look for adult and child pornography that were “just naked kids.” Based on this information, the FBI obtained a search warrant for the defendant’s cell phone, which revealed at 581 images of child pornography that were downloaded between the dates of November 3, 2014 through December 25, 2014. Many of the images were of young pre-pubescent children engaged in sexually explicit conduct, including images that depicted a adult male sexually assaulting a toddler.
The FBI investigated this case, with assistance from the Juneau Police Department. Assistant United States Attorney Jack Schmidt, located in the Juneau Branch Office, prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood, U.S. 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.
Jackson County Man Sentenced to 360 Months in Prison for Federal Child Pornography OffensesRead the Press Release
PANAMA CITY, FLORIDA – Ralph Herman Fox Jr., 61, of Graceville, Florida, was sentenced yesterday in the U.S. District Court in Panama City to 360 months in prison for production of child pornography. Fox pled guilty on December 4, 2017, which was the first day of his trial. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In September 2016, a concerned citizen reported to the Jackson County Sheriff’s Office that Fox had been sexually abusing two young girls. A forensic examination of Fox’s cellular telephone revealed multiple video screen shots of Fox sexually assaulting one of the victims. The sexual abuse captured in the screen shots occurred for approximately one year, sometimes in the presence of other children.
U.S. Attorney Canova said, “The bravery of the 11-year old victim in this case exposed a predator, and her courage in coming forward helped protect other children from abuse. The sentence imposed on Fox sends a strong message that those who take advantage of our innocent children will pay a steep price.”
“The deviant nature of this crime is beyond comprehension,” said HSI Tampa Special Agent in Charge James C. Spero. “Together with our partners at the Jackson County Sheriff’s Office, our greatest hope is that today’s sentencing will play a part in the recovery of his young victims.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations and the Jackson County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on February 13, 2018 and entering pleas of Not Guilty were:
- DANIEL JAMES BLEVINS, a 41-year-old resident of Browning, appeared on charges of domestic abuse by habitual offender, and assault resulting in serious bodily injury. If convicted of the most serious charges contained in the indictment, BLEVINS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 18-08
- COREY SADDLER, a 27-year-old resident of Box Elder, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charges contained in the indictment, SADDLER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 18-13
- JAMES DANIEL SMALLBOY, a 23-year-old resident of Box Elder, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charges contained in the indictment, SMALLBOY faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 18-13
Appearing before U.S. Magistrate Cavan in Billings on February 13, 2018 and entering pleas of Not Guilty were:
- JORDEN SAMUEL BUTLER, a 28-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, BUTLER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 18-08
- JEREMY ALAN CORKILL, a 34-year-old resident of Molt, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, CORKILL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-142
- GEORGE LOWRY WEEKS, a 45-year-old resident of Laurel, appeared on charges of felon in possession of firearm and ammunition. If convicted of the charge contained in the indictment, WEEKS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 18-14
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Man Indicted by Federal Grand Jury for Cyber Attack on Los Angeles County Superior CourtRead the Press Release
LOS ANGELES – A Houston, Texas man was indicted today on multiple felony counts for allegedly staging a phishing attack that used the Los Angeles County Superior Court (LASC) computer system.
Oriyomi Sadiq Aloba, 32, was named in an 11-count indictment returned this afternoon by a federal grand jury.
The indictment specifically charges Aloba with five counts of unauthorized access to a protected computer to obtain information, one count of unauthorized impairment of a protected computer, and five counts of aggravated identity theft.
According to the indictment, over the course of a week in late July 2017, Aloba used the stolen username and passwords of multiple LASC employees to log into LASC servers and send phishing emails. The phishing attack targeted email addresses outside the LASC system, and Aloba also allegedly sent test emails to himself to test the security features and ensure that he had full access to the accounts.
The phishing emails purported to be a communication from American Express and led victims to a webpage that asked for American Express login credentials, personal identifying information and credit card information. The link for the fake American Express website used a source code that designated Aloba’s account as the delivery address for the information that the victims input into the website.
Aloba allegedly accessed at least 18 different LASC employee accounts and sent out approximately 2 million phishing emails.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Aloba is scheduled to be arraigned on the indictment on March 8.
If Aloba were to be found guilty of the charges in the indictment, he would face a statutory maximum sentence of 10 years for the unauthorized impairment count, five years for each of the unauthorized access counts, and a mandatory two-year sentence for each the identity theft counts.
Aloba was initially charged by the Los Angeles County District Attorney, but the matter was referred to the United States Attorney’s Office for federal prosecution. Aloba was initially charged in federal court on January 10. He made his initial appearance in the federal case on January 17, at which time he was ordered released on a $10,000 bond.
This matter is being investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Robyn Bacon of the Cyber and Intellectual Property Crimes Section.
Houston Businessman Pleads Guilty to Money Laundering ConspiracyRead the Press Release
A Houston, Texas, man pleaded guilty today to conspiring to commit money laundering, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
According to documents and information provided to the court, Marcus T. Weathersby conspired with others to facilitate the fraudulent sale of second-hand prescription medications to a Utah-based wholesale distributor. This scheme involved purchasing bottles of prescription medications from illegitimate sources and then selling the medications to another wholesale distributor who then sold them to pharmacies as new. Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase, or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer.
As part of his plea, Weathersby admitted that in approximately December 2010, he established, Acacia Pharma Distributors Inc. (Acacia), a Mississippi corporation. Nearly eight months later, Weathersby directed another individual to incorporate Four Corner Suppliers Inc. (Four Corner) in Mississippi. Acacia and Four Corner purported to be legitimate wholesale distributors of pharmaceuticals licensed and operating in Mississippi, however, in reality Weathersby and others used these corporations to facilitate the illegal sale of second-hand prescription drugs.
Weathersby also opened and caused others to open bank accounts in the names of Acacia and Four Corner. Between February 2011 and July 2012, Weathersby withdrew and led others to withdraw over $2.9 million in cash from these bank accounts and to structure these cash withdrawals in amounts under $10,000 in order to prevent the banks from complying with their legal obligation to prepare currency transaction reports for each cash transaction over $10,000.
U.S. Magistrate Court Judge Nancy K. Johnson scheduled sentencing for May 30. Weathersby faces a statutory maximum sentence of 20 years in prison, as well as a period of supervised release and monetary penalties. Weathersby further agreed to the imposition of a money judgement against him in the amount of $2,991,867.76.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Patrick thanked agents of IRS Criminal Investigation, the Federal Bureau of Investigation, and the Federal Department of Agriculture, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Henrietta Swim Coach Arrested for Traveling to Meet A 16 Year Old Girl for SexRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Matthew D. Lincoln, 37, of Henrietta, NY, was arrested and charged by criminal complaint with enticement of a minor to engage in sexual activity. The charge carries a mandatory minimum penalty of 10 years, a maximum of life, a $250,000 fine, or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant, who was the head coach for the Golden Comets Swim Club, first came to law enforcement attention after he engaged in online communications with an 11 year old girl in Brighton. The child’s father reported this activity to the Brighton Police who then arranged an undercover operation.
During this operation, the defendant engaged in sexually explicit online conversations with a child he believed to be a 16 year girl. Over the course of several weeks, Lincoln repeatedly chatted with the child and requested that they meet in person so that they could engage in sexual activity. Lincoln also sent several photographs of himself to the child, including a full length nude photo. Eventually, the child agreed to meet Lincoln in person at a location in Brighton. Prior to meeting with the child, Lincoln went to a local WalMart and purchased a stuffed teddy bear, a heart shaped box of chocolates, and a card for the child, which he left in his nearby apartment.
Unbeknownst to Lincoln, the child was actually an undercover Brighton Police Investigator. When Lincoln arrived at the meeting to meet with the child, he was arrested. During a post arrest interview, Lincoln admitted to believing that he was communicating with a real 16 year old girl. He also admitted to transmitting sexually explicit messages to her and meeting with her with the intent to engage in sexual activity.
The defendant made an initial appearance on February 15, 2018, before United States Magistrate Judge Marian W. Payson. Lincoln is being held pending a detention hearing scheduled for February 22, 2018.
“Yesterday’s arrest reminds each of us that we must remain vigilant in protecting the youths of our society”, said U.S. Attorney Kennedy. “Together with our federal, state and local partners, we will do all that we can to ensure that those who pray upon our children are brought to justice”.
“I want to recognize the excellent work of the Brighton Police Department,” said FBI Buffalo Division Acting Special Agent in Charge Kevin P. Lyons. “They acted quickly on a parent’s complaint and took the necessary initiative to ensure that Matthew Lincoln was investigated and removed from the environment where our children live and play each day. Our Child Exploitation Task Force is tangible proof of the FBI’s mission to protect the young people in Monroe County and beyond -- a great collaborative effort that demonstrates our commitment to the community and our partners.”
The criminal complaint is the result of an investigation by the Brighton Police Department, under the direction of Chief of Police Mark Henderson, the Monroe County Sheriff’s Department, under the direction of Sheriff Todd K. Baxter, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the New York State Police, under the direction of Major Richard Allen and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Acting Special Agent in Charge Kevin P. Lyons.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.