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Thursday 25 January 2018
U.S. Postal Worker Charged with Making False Workers’ Compensation ClaimsRead the Press Release
U.S. Attorney Duane A. Evans, announces the filing of charges against LEXY LOPEZ-BATEMAN, age 40, of Slidell.
According to court documents, LOPEZ-BATEMAN was an employee of the United States Postal Service when she suffered an on-the-job injury in 2015. She was therefore entitled to workers compensation benefits, including costs of travel to and from medical appointments. However, beginning in 2015, she submitted fraudulent requests for reimbursement for travel that never occurred. She continued to submit these fraudulent requests for reimbursement through June 2017. In total, LOPEZ-BATEMAN defrauded the U.S. government of $16,851.10.
LOPEZ-BATEMAN was charged January 23, 2018 in a bill of information with one count of making false statements to obtain federal workers’ compensation benefits, a violation of Title 18, United States Code, Section 1920. If convicted, she faces a maximum of 5 years in prison, a maximum $250,000.00 fine, and up to three years of supervised release.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilty of the defendant must be proven beyond a reasonable doubt.
U. S. Attorney Evans praised the investigation as the product of the efforts of the U.S. Postal Services Office of Inspector General. The prosecution is being handled by Assistant United States Attorney Matthew Payne.
U.S. Files Amended Complaint to Forfeit $500,000 in EB-5 Funds from Sanctioned Chinese Coal Company Accused of Laundering Money for North KoreaRead the Press Release
WASHINGTON - The United States has filed an amended complaint to forfeit an additional $500,000, for an aggregate amount of $4,583,935, from Dandong Chengtai Trading Co. Ltd. also known as Dandong Zhicheng Metallic Material Co., Ltd, and its owner Chi Yupeng, announced U.S. Attorney Jessie K. Liu and Jeffrey S. Sallet, Special Agent in Charge of the FBI’s Chicago Field Office.
The original complaint, which sought to forfeit $4,083,935, was filed on Aug. 22, 2017 in the U.S. District Court for the District of Columbia. According to the complaint, Dandong Chengtai is owned by a Chinese national, Chi Yupeng, and is based in Dandong, China. The investigation revealed that North Korea exports coal for the benefit of the North Korean government, and in particular, its military. Coal generates over $1 billion in revenue per year for North Korea.
Also on Aug. 22, 2017, the Treasury Department designated Dandong Zhicheng for having sold coal from North Korea. The designation noted that Dandong Zhicheng allegedly used the foreign exchange received from the end users of North Korean coal to purchase other items for North Korea, including nuclear and missile components. Chi Yupeng was also designated, for having used a network of companies to engage in bulk purchases, wire transfers, and other transactions on behalf of North Korean interests.
Today’s amended complaints adds $500,000 seized from an EB-5 visa investment account. The EB-5 visa program provides a method for eligible immigrant investors to become lawful permanent residents (i.e., “green card holders”) by investing at least $500,000 to finance a business in a targeted employment area in the United States that will employ at least 10 American workers.
From on or about Nov. 5, 2015, through Nov. 13, 2015, according to the amended complaint, Chi Yupeng and his wife directed 12 wire transfers by 12 different individuals for a combined total of approximately $568,405 into a bank account in the United States controlled by a family member. These wires ranged in values between approximately $31,335 and $50,000, which the government alleges was part of a scheme to circumvent Chinese capital outflow rules. On Nov. 13, 2015, the same day as the final transfer into the U.S. bank account, Chi Yupeng and his wife caused a wire for $550,100 to be sent to an EB-5 investment program account.
The amended complaint states that those funds are subject to forfeiture as Chi Yupeng and Dandong Chengtai generated millions of dollars of revenue from the illegal sale of North Korean coal that benefitted sanctioned entities in North Korea. The subsequent laundering of the proceeds of these transactions, including by attempting to invest in the EB-5 program is in violation of U.S. law.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The FBI’s Chicago Field Office, with support from the FBI Counterproliferation Center, is investigating the case. Assistant U.S Attorneys Arvind K. Lal, Zia M. Faruqui, Christopher B. Brown, Deborah Curtis, Ari Redbord, and Brian P. Hudak are prosecuting the case, with assistance from Paralegal Specialist Toni Anne Donato and Legal Assistant Jessica McCormick.
Two Men Convicted of Engaging in Child Exploitation ConspiracyRead the Press Release
A Lemon Grove, California resident, and a Harrodsburg, Kentucky resident were convicted today of multiple child exploitation crimes, including conspiracy offenses, in Harrisburg, Pennsylvania after a seven-day jury trial, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney David J. Freed of the Middle District of Pennsylvania and Deputy Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
William Staples, 57, a resident of Harrodsburg, Kentucky, was found guilty of conspiracy to advertise child pornography; conspiracy to receive/distribute child pornography and aiding and abetting the receipt/distribution of child pornography.
Dylan Heatherly, 34, a student in Lemon Grove, California, was found guilty of conspiracy to receive/distribute child pornography and aiding and abetting the receipt/distribution of child pornography.
A sentencing date has not yet been scheduled.
“Today’s verdicts mark the latest chapter in the Department’s unwavering commitment to targeting dangerous child sex offenders,” said Acting Assistant Attorney General Cronan. “The prosecution of the 15 individuals in this case, many of whom were responsible for the reprehensible sexual abuse of a six-year-old child on a live-streaming, video-conferencing platform, resulted in 15 fewer child predators on our streets. We will continue to work closely with our domestic and foreign law enforcement partners to identify and punish child sex offenders who seek to use technological means to commit their heinous crimes.”
“The production and distribution of child sexual abuse material is a horrific crime that can negatively affect victims for their entire lives,” said HSI Deputy Executive Associate Director Benner. “ICE agents are committed to aggressively investigating these crimes to ensure that child predators can’t maintain anonymity behind emerging online platforms and complicated criminal schemes.”
According to trial evidence, between April 11, 2014 and May 11, 2016, Staples, Heatherly, and 12 co-conspirators located in different states worked together and with others to create a secure space on a video conferencing website where like-minded individuals could regularly live-stream videos of child pornography of prepubescent children, some as young as infants, to each other in an effort to minimize any evidence of such child pornography being located on their individual devices. In addition to streaming pre-recorded videos of child pornography, on July 22, 2015, an undercover Toronto Police Detective Constable observed a six-year-old child being sexually abused live via video conference for everyone in the secure space to see. Many individuals commented on and encouraged the sexual abuse of the child in real time. The following day, on July 23, 2015, law enforcement rescued the child and arrested co-conspirator William Augusta who had been sexually abusing the child.
In May 2016, 15 individuals were charged in an 18-count superseding indictment by a grand jury in the Middle District of Pennsylvania with multiple child exploitation offenses, many of which related to 14 co-conspirators’ involvement in using the video conferencing website to produce, advertise, distribute, and/or receive child pornography. Twelve of the defendants pleaded guilty prior to trial:
- William Augusta, 21, a resident of Carlisle, Pennsylvania, pleaded guilty on Oct. 28, 2016, to each of the 13 counts with which he was charged, including multiple counts of production of child pornography involving two different children. On Oct. 31, 2017, Judge Kane sentenced Augusta to serve 60 years in prison to be followed by a lifetime of supervised release.
- Scott Lane, 34, former Executive Director of Donor Relations and Fundraising Programs for Pace University, of Manhattan, pleaded guilty on Jan. 11, five days before trial was set to begin, to each of the six counts with which he was charged, including conspiracy to produce child pornography; aiding and abetting the production of child pornography; conspiracy to advertise child pornography; advertising child pornography; conspiracy to receive/distribute child pornography and aiding and abetting the receipt/distribution of child pornography. A sentencing date has not yet been scheduled.
- Matthew Fensler, 25, a resident of Phoenix, Arizona, pleaded guilty on Jan. 4, 2017, to conspiracy to produce child pornography and conspiracy to advertise child pornography. On July 27, 2017, Judge Kane sentenced Fensler to serve 35 years in prison to be followed by 15 years of supervised release.
- David Sewell, 31, a resident of Ft. Lauderdale, Florida, pleaded guilty on Dec. 12, 2016, to conspiracy to produce child pornography and conspiracy to advertise child pornography. On July 27, 2017, Judge Kane sentenced Sewell to serve 35 years in prison to be followed by 15 years of supervised release.
- Moises Marquez, 30, a resident of San Diego, California, pleaded guilty on Sept. 28, 2016, to conspiracy to produce child pornography and conspiracy to advertise child pornography. On June 28, 2017, Judge Kane sentenced Marquez to serve 30 years in prison to be followed by 15 years of supervised release.
- Jason Bolden, 47, a resident of Duluth, Georgia, pleaded guilty on Dec. 14, 2016, to conspiracy to advertise child pornography. On July 26, 2017, Judge Kane sentenced Bolden to serve 30 years in prison to be followed by 10 years of supervised release.
- Franklyn Molina, 35, a resident of Shippensburg, Pennsylvania, pleaded guilty on March 24, 2017, to conspiracy to advertise child pornography and to an Information separately charging receipt of child pornography. On Sept. 20, 2017, Judge Kane sentenced Molina to serve 195 months in prison to be followed by 15 years of supervised release.
- Casey O’Dell, 34, a resident of Albuquerque, New Mexico, pleaded guilty on Dec. 14, 2016, to conspiracy to produce child pornography and conspiracy to advertise child pornography. On Oct. 24, 2017, Judge Kane sentenced O’Dell to serve 40 years in prison to be followed by 15 years of supervised release.
- James Reese, 59, a resident of Des Moines, Iowa, pleaded guilty on Oct. 28, 2016, to conspiracy to advertise child pornography. On Nov. 7, 2017, Judge Kane sentenced Reese to serve 20 years in prison to be followed by 10 years of supervised release.
- Paul Stamm, 56, a resident of Cincinnati, Ohio, pleaded guilty on Jan. 4, 2017, to conspiracy to produce child pornography, a charge unrelated to the video conferencing website. On Sept. 28, 2017, Judge Kane sentenced Stamm to serve 30 years in prison to be followed by 15 years of supervised release.
- Ed Westbury, 64, a resident of Lufkin, Texas, pleaded guilty on Dec. 8, 2016, to conspiracy to receive/distribute child pornography. On June 14, 2017, Judge Kane sentenced Westbury to serve 78 months in prison to be followed by 10 years of supervised release.
- Christopher Wehr, 45, a resident of Duluth, Georgia, pleaded guilty on Jan. 23, 2017, to conspiracy to advertise child pornography. Wehr died prior to sentencing.
- The remaining defendant, Bruce Edgecombe, 69, of Harvard, Illinois died before his case went to trial.
HSI, the Toronto Police Service, the Kentucky Attorney General’s Office, and the North Middleton Police Department investigated the case with assistance from CEOS’s High Technology Investigative Unit. Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Meredith Taylor of the Middle District of Pennsylvania are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Two Men Charged in Manhattan Federal Court with 2014 Robbery and MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a federal indictment charging FRANK BRIGHT, a/k/a “Frankie,” and JOHN DUNCAN, a/k/a “Balla,” a/k/a “Moreno,” with the murder of Amaury Paulino. Paulino was shot and killed on Christmas Eve in 2014 during the course of an armed robbery in the vicinity of St. Nicholas Avenue and West 129th Street.
BRIGHT was arrested today and will be presented in federal court in Philadelphia, Pennsylvania, before U.S. Magistrate Judge Linda K. Caracappa. DUNCAN is in federal custody on another offense. The case has been assigned to U.S. District Judge Katherine Polk Failla.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Bright and Duncan planned a gunpoint robbery of Amaury Paulino, which resulted in his murder. The defendants will now face justice for their alleged roles in this violent robbery. We thank our law enforcement partners for their extraordinary efforts investigating this murder.”
DEA Special Agent in Charge James J. Hunt said: “A cold case has brought two men before the bar of justice today after efforts by the NYPD, DEA, and U.S. Attorney’s Office to find those allegedly responsible for a 2014 Christmas Eve murder.”
NYPD Commissioner James P. O’Neill said: “According to the allegations, the two defendants in this case are violent criminals who shot and killed a man during a robbery on Christmas Eve. I want to thank the members of the NYPD, the DEA and the U.S. Attorney’s Office whose work secured today’s indictments and helps keep New York City safe.”
* * *
According to the allegations in the Indictment[1] and information in the public record:
On December 24, 2014, BRIGHT and DUNCAN robbed Amaury Paulino in the vicinity of St. Nicholas Avenue and West 129th Street. During the course of the robbery, Paulino was shot and killed.
FRANK BRIGHT, 31, and JOHN DUNCAN, 32, are charged in the Indictment with one count of robbery conspiracy, one count of robbery, and one count of murder through the use of a firearm and aiding and abetting the same. A chart containing the charges and maximum penalties is below. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD and the DEA.
This case is being handled by the Office’s Narcotics Unit and Violent and Organized Crime Unit. Assistant United States Attorneys Gina Castellano, Jordan Estes, and Jason Richman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
MAX. PENALTIES
1
Robbery conspiracy
18 U.S.C. § 1951
20 years in prison
2
Robbery
18 U.S.C. § 1951
20 years in prison
3
Murder through use of a firearm
18 U.S.C. § 924(j)
Death or life in prison
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Trucking Company Owner Sentenced to 18 Months in Prison for Tax Evasion and Bankruptcy FraudRead the Press Release
TRENTON, N.J. –The owner of a New Jersey trucking company was sentenced today to 18 months in prison for committing tax evasion and bankruptcy fraud while operating his wine delivery business, U.S. Attorney Craig Carpenito announced.
Giacomo Giorlando, 54, of Morganville, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with three counts of tax evasion and one count of bankruptcy fraud. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
As an owner of 4 G’s Trucking, Giorlando comingled business revenue with his personal funds, utilized a check-casher to cash business checks, deposited the proceeds of his business into various bank accounts, and then significantly inflated expenses to reduce his taxable income for the years 2011, 2012 and 2014. He admitted he was responsible for a $460,012 tax loss from those three years.
When Giorlando filed for bankruptcy in May 2014, he failed to accurately report his assets from at least 10 accounts at TD Bank and one account at Provident Bank that he maintained during the time frame covered by the bankruptcy. The bankruptcy was approved based upon this false and incomplete information. He was discharged on March 13, 2015.
In addition to the prison term, Judge Sheridan sentenced Giorlando to three years of supervised release and ordered him to pay $750,000 in restitution to the IRS and $65,000 to victims of the fraud.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
Three Baltimore BGF Gang Members Convicted of Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland –A federal jury has convicted three defendants for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF) gang’s Greenmount Avenue Regime. Gerald Thomas Johnson, a/k/a Geezy, and Gzy Tha Prince, age 35; Kenneth Jones, a/k/a, K-Slay, and Slay, age 30; and Marquise McCants, a/k/a Digga, age 25, all of Baltimore, Maryland, were convicted of conspiring to violate federal racketeering and drug trafficking laws.
Johnson was also convicted of conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, possession of ammunition by a felon and possession with intent to distribute crack cocaine. McCants was convicted of possession of a firearm by a felon.
The following six co-defendants, also members of the BGF gang, had all previously pleaded guilty to conspiring to violate federal racketeering and drug trafficking laws;
Wesley Jamal Brown, a/k/a Shike White and Wes, age 25
David Albert Hunter, a/k/a Lil Dave, and Dave, age 30;
Montel Harvey, a/k/a Telly, Telephone, and Big Head, age 25;
Kenneth Lee Faison, a/k/a Roscoe, age 28;
Joseph Laurence Bonds, a/k/a/ Joe, and Yo Gotti, age 36; and
Norman Tyrone Handy, a/k/a Lil Norm, and Norm, age 23.
The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Darryl De Sousa of the Baltimore Police Department; Maryland Attorney General Brian E. Frosh; and Baltimore City State’s Attorney Marilyn Mosby.
“This case is emblematic of the ability of federal prosecution, using tolls such as RICO, to go after the violent gangs plaguing Baltimore City. The federal agents and task force officers worked long hours with the AUSAs to build this case which resulted in a successful outcome,” said Acting United States Attorney Stephen M. Schenning.
“These convicted defendants are ruthless gang members, who acted with a total disregard for the sanctity of human life. Make no mistake, their cowardice behavior and violent criminal acts terrorized our communities,” said Daniel L. Board, Jr., ATF Baltimore Field Division Special Agent in Charge. “But today’s verdict is true justice for the involved victims and their families, and the citizens of Baltimore. This result is the culmination of nearly two years of relentless, dedicated work by ATF Baltimore, the Baltimore City Police Department and our formidable partnership with the United States Attorney’s Office.”
According to the evidence presented at the two-month trial, the defendants were members of an organization known today as the BGF Greenmount Regime, a violent set, or “bubble,” of BGF. During the early years in which it operated, the gang called itself the Young Guerilla Family, or YGF, and consisted mostly of younger people who lived in the 2200, 2300, and 2400 blocks of Barclay Street and Guilford Avenue. YGF members sold drugs throughout the Greenmount Avenue corridor and committed murders, shootings, and armed robberies.
In about mid-2007, YGF members took the BGF oath and became the BGF Greenmount Regime. According to evidence presented at trial, the BGF Greenmount Regime continued to sell drugs and commit violent acts, including murders, shootings and robberies, and by mid-2013 controlled the roughly rectangular area bordered by Greenmount Avenue to the east; Guilford Avenue to the west; 25th Street to the north; and Federal Street to the south, as well as certain offshoots east of Greenmount Avenue, including Mund Park and Cokesbury Avenue.
Beginning in 2005, Johnson supplied drugs to the YGF members for further distribution and was the leader of YGF. During the conspiracy, the defendants distributed powder and crack cocaine, heroin, ecstasy, marijuana, and oxycodone. BGF Greenmount Regime members and associates purchased, maintained and circulated weapons and firearms for use in criminal activity by BGF members.
In addition, the defendants committed acts of violence, including seven murders, shootings, stabbings, a home invasion robbery and other armed robberies. The violent acts were intended to further the gang’s activities, including intimidating witnesses to prevent them from cooperating with law enforcement, protecting the gang’s drug territory, financing the dues paid to BGF, and enforcing gang rules.
For example, on January 9, 2007, Jones and another YGF member shot and killed an individual. Johnson authorized the killing of this individual in his capacity as a leader of YGF because the victim was rumored to be cooperating with law enforcement and Johnson believed the victim had stolen drugs from him. McCants also attempted to murder another individual on February 4, 2017, shooting them multiple times in the legs and back.
Johnson, Jones and McCants face a maximum sentence of life in prison on the racketeering and drug conspiracies. Johnson also faces a maximum sentence of 10 years in prison for conspiring to commit murder in aid of racketeering and life in prison for murder in aid of racketeering. In addition, Johnson faces a maximum sentence of 20 years in prison for possession with intent to distribute crack cocaine, and 10 years in prison for being a felon in possession of ammunition.
Sentencing has been scheduled for Johnson on April 20, 2018 at 2 p.m.; McCants on May 9, 2018 at 2 p.m.; and Jones on May 10, 2018 at 2 p.m. in the United States District Court in Baltimore, Maryland.
Acting United States Attorney Stephen M. Schenning commended the ATF, FBI, Baltimore City Police Department, Maryland Attorney General’s Office, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Peter J. Martinez and Christina Hoffman, who prosecuted the case.
The United States and Indiana Reach Agreement with SunCoke Energy and Cokenergy to Resolve Clean Air Act Violations at Indiana Harbor Coke PlantRead the Press Release
SunCoke Energy Inc., its subsidiary Indiana Harbor Coke Company (IHCC), and Cokenergy have agreed to resolve alleged Clean Air Act violations relating to excess emissions of coke oven gases from their coke plant in East Chicago, Indiana, announced the Department of Justice, the U.S. Environmental Protection Agency, the Office of the Indiana Attorney General, and the Indiana Department of Environmental Management.
Implementation of the Consent Decree’s requirements will result in estimated annual emissions reductions of 2,075 tons of coke oven emissions, which are hazardous air pollutants, and include 1,895 tons of SO2, 125 tons of particulate matter, 55 tons of volatile organic compounds, and 680 pounds of lead. In addition, under the settlement agreement Cokenergy will spend $250,000 on a lead abatement project in the East Chicago area to reduce lead hazards in schools, day-care centers, and other buildings with priority given to young children and pregnant women. Additionally, the companies will provide copies of reports submitted under the Consent Decree to two public libraries in East Chicago.
The settlement also requires comprehensive coke oven rebuilds to address oven leaks, including potential permanent shut down of the worst performing battery. The companies have agreed to enhanced monitoring and testing requirements, including two stack tests to measure lead emissions. Further, the settlement requires implementation of preventive maintenance and operations plans to minimize excess emissions. Finally, the companies will pay a $5 million civil penalty, to be split evenly between the United States and the State of Indiana.
“This settlement will result in significant reductions in harmful air pollution and is welcome news for East Chicago, an area which is currently not meeting national air quality standards for ozone,” said Acting Assistant Attorney General Jeffrey H. Wood. “The Justice Department’s Environment and Natural Resources Division is proud to have partnered with the EPA, the state of Indiana, and the U.S. Attorney’s Office in achieving these results. Today’s action reflects our commitment to working together to enforce environmental laws.”“Today’s settlement is one example of how EPA is committed to reducing exposure to lead and other contaminants in communities across the country,” said EPA Administrator Scott Pruitt. “Lead exposure is a serious problem and reducing it is a priority for EPA.”
“We fight every day to protect the safety of Hoosiers and their families,” Attorney General Curtis Hill of the State of Indiana said. “This agreement goes a long way to protect Hoosiers and their families in Northwest Indiana and the East Chicago community.”
“I’m grateful to have worked with our federal partners to get this issue resolved,” said Commissioner Bruno Pigott of the Indiana Department of Environmental Management. “It’s my hope that, now and in the future, this settlement will improve not only the air quality in Northwest Indiana, but also the quality of life for Hoosiers living in East Chicago.”
“This settlement provides a long-term solution to protect air quality and control emissions,” said U.S. Attorney for the Northern District of Indiana Thomas L. Kirsch II. “We will continue to work with other agencies to protect Indiana families from environmental harm.”
The primary violations alleged relate to leaking coke ovens and excessive bypass venting of hot coking gases directly to the atmosphere, resulting in excess SO2, particulate matter, and lead emissions from the facility’s coke ovens and bypass vent stacks, in violation of applicable permit limits. SO2 contributes to acid rain and exacerbates respiratory illness, particularly in children and the elderly. Exposure to particulate pollution has been linked to health impacts that include decreased lung function, aggravated asthma and premature death in people with heart or lung disease. EPA has recognized that lead poisoning is the number one environmental health threat in the United States for children ages 6 and younger. In addition, coke oven emissions are a known human carcinogen. Chronic (long-term) exposure in humans can result in conjunctivitis, severe dermatitis and lesions of the respiratory system and digestive system.
The Consent Decree, lodged in the U.S. District Court for the Northern District of Indiana, is subject to a 30-day public comment period and approval by the federal court. It is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.
IDEM has created a link on the agency’s website where the public will be able to access the documents that the companies submit to IDEM under the Consent Decree. Once the Consent Decree has become effective, documents submitted to IDEM will be uploaded to the dedicated link. The public will then be able to access the documents by going to: www.in.gov/idem/airquality/ and clicking the page entitled “Indiana Harbor Coke/Cokenergy Consent Decree.”
The United States and Indiana Reach Agreement with Suncoke Energy and Cokenergy to Resolve Clean Air Act Violation at Indiana Harbor Coke PlantRead the Press Release
WASHINGTON – SunCoke Energy Inc., its subsidiary Indiana Harbor Coke Company (IHCC), and Cokenergy have agreed to resolve alleged Clean Air Act violations relating to excess emissions of coke oven gases from their coke plant in East Chicago, Indiana, announced the Department of Justice, the U.S. Environmental Protection Agency, the Office of the Indiana Attorney General, and the Indiana Department of Environmental Management.
Implementation of the Consent Decree’s requirements will result in estimated annual emissions reductions of 2,075 tons of coke oven emissions, which are hazardous air pollutants, and include 1,895 tons of SO2, 125 tons of particulate matter, 55 tons of volatile organic compounds, and 680 pounds of lead. In addition, under the settlement agreement the companies will spend $250,000 on a lead abatement project in the East Chicago area to reduce lead hazards in schools, day-care centers, and other buildings with priority given to young children and pregnant women. Additionally, the companies will provide copies of reports submitted under the Consent Decree to two public libraries in East Chicago.
The settlement also requires comprehensive coke oven rebuilds to address oven leaks, including potential permanent shut down of the worst performing battery. The companies have agreed to enhanced monitoring and testing requirements, including two stack tests to measure lead emissions. Further, the settlement requires implementation of preventive maintenance and operations plans to minimize excess emissions. Finally, the companies will pay a $5 million civil penalty, to be split evenly between the United States and the State of Indiana.
“This settlement will result in significant reductions in harmful air pollution and is welcome news for East Chicago, an area which is currently not meeting national air quality standards for ozone,” said Acting Assistant Attorney General Jeffrey H. Wood. “The Justice Department’s Environment and Natural Resources Division is proud to have partnered with the EPA, the state of Indiana, and the U.S. Attorney’s Office in achieving these results. Today’s action reflects our commitment to working together to enforce environmental laws.”
“Today’s settlement is one example of how EPA is committed to reducing exposure to lead and other contaminants in communities across the country,” said EPA Administrator Scott Pruitt. “Lead exposure is a serious problem and reducing it is a priority for EPA.”
“We fight every day to protect the safety of Hoosiers and their families,” Attorney General Curtis Hill of the State of Indiana said. “This agreement goes a long way to protect Hoosiers and their families in Northwest Indiana and the East Chicago community.”
“I’m grateful to have worked with our federal partners to get this issue resolved,” said Commissioner Bruno Pigott of the Indiana Department of Environmental Management. “It’s my hope that, now and in the future, this settlement will improve not only the air quality in Northwest Indiana, but also the quality of life for Hoosiers living in East Chicago.”
“This settlement provides a long-term solution to protect air quality and control emissions,” said U.S. Attorney for the Northern District of Indiana Thomas L. Kirsch II. “We will continue to work with other agencies to protect Indiana families from environmental harm.”
The primary violations alleged relate to leaking coke ovens and excessive bypass venting of hot coking gases directly to the atmosphere, resulting in excess SO2, particulate matter, and lead emissions from the facility’s coke ovens and bypass vent stacks, in violation of applicable permit limits. SO2 contributes to acid rain and exacerbates respiratory illness, particularly in children and the elderly. Exposure to particulate pollution has been linked to health impacts that include decreased lung function, aggravated asthma and premature death in people with heart or lung disease. EPA has recognized that lead poisoning is the number one environmental health threat in the United States for children ages 6 and younger. In addition, coke oven emissions are a known human carcinogen. Chronic (long-term) exposure in humans can result in conjunctivitis, severe dermatitis and lesions of the respiratory system and digestive system.
The Consent Decree, lodged in the U.S. District Court for the Northern District of Indiana, is subject to a 30-day public comment period and approval by the federal court. It is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.
IDEM has created a link on the agency’s website where the public will be able to access the documents that the companies submit to IDEM under the Consent Decree. Once the Consent Decree has become effective, documents submitted to IDEM will be uploaded to the dedicated link. The public will then be able to access the documents by going to: www.in.gov/idem/airquality/ and clicking the page entitled “Indiana Harbor Coke/Cokenergy Consent Decree.”
# # #Texas Man Sentenced to 39 Months in Prison for Distribution of CocaineRead the Press Release
Jackson, Miss - Juan Francisco Benavides, 44, of Houston, Texas, was sentenced today by United States District Judge Sul Ozerden to serve 39 months in federal prison, followed by three years of supervised release, for using the interstate to travel in aid of an unlawful activity, specifically distribution of cocaine. Benavides was also ordered to pay a $5,000 fine. He pled guilty to the charge on July 10, 2017.
On May 27, 2017, a Hancock County Sheriff’s Deputy stopped a vehicle driven by Benavides for a traffic violation. During the stop, the deputy noticed that Benavides was acting nervous and he did not have a valid driver’s license. Benavides consented to a search of his vehicle, and a K9 made a positive alert that there were drugs in the vehicle. Upon a search of the vehicle by the deputy, several bundles of cocaine were found concealed in the dashboard. Agents located a total of 455.8 grams of cocaine.
The case was investigated by the Hancock County Sheriff’s Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Kathlyn Van Buskirk.
Taunton Man Sentenced to 17 Years for KidnappingRead the Press Release
BOSTON – A Taunton man was sentenced yesterday in federal court in Boston for the armed kidnapping of a Quincy man and two children.
Malik Bangura, 20, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 17 years in prison and two years of supervised release. In September 2017, Bangura pleaded guilty to kidnapping after being arrested and charged in April 2017. Diego Pires, 23, of Brockton; Sedrick Oliveira, 26, of Stoughton; and Yesenia Diaz, 23, of Brockton were also charged.
On Oct. 8, 2016, at approximately 10:25 p.m., a 30-year-old man was kidnapped from the driveway of his Quincy home after being struck in the head with a revolver as he got out of his truck, and dragged into a nearby sedan. The victim had two children strapped into their car seats in his truck.
Once the victim was in the sedan, two masked perpetrators, later identified as Pires and Bangura, drove the victim’s truck, with the children, to a secluded location where they unloaded approximately 30 pounds of marijuana and $20,000 from the victim’s truck, into the sedan. The victim, who was face-down in the backseat of the sedan at gunpoint, begged for his life and the life of the two children who were still in their car seats in the back of the truck.
Diaz, Bangura, Pires and Oliveira then drove the sedan with the drugs, cash and the victim, from Quincy to Brockton and called the victim’s wife demanding $100,000. Law enforcement officers spotted the sedan as it drove through Brockton, recognized the vehicle from a drive-by shooting that occurred in August 2016, and began to follow it. After the defendants recognized the police, they attempted to flee, but ultimately abandoned the sedan in a Brockton driveway. The victim escaped, flagged down law enforcement officers, and described to them the secluded location where the truck had been disserted. Law enforcement located the truck with the children, who were unharmed.
Diaz was subsequently found standing by the sedan and arrested. She previously pleaded guilty and is awaiting sentencing. Oliveira was arrested on Oct. 10, 2016, in Stoughton and charged in a federal criminal complaint. He pleaded not guilty to the kidnapping charge. Pires remained a fugitive until he was apprehended in October 2017. He also pleaded not guilty.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Brockton Police Chief John Crowley; and Quincy Police Chief Paul Keenan, made the announcement today. Assistant U.S. Attorney Emily O. Cannon of Lelling’s Organized Crime and Gang Unit prosecuted the case.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tacoma Man Convicted of Drug Distribution and Gun CrimeRead the Press Release
A Tacoma man was convicted today of two federal felonies involving guns and drug dealing which could lead to more than 15 years in prison, announced U.S. Attorney Annette L. Hayes. GERALD CLAUDE CARLSON, 57, was arrested in May 2016, when police serving a court authorized search warrant on his home, uncovered more than a pound of methamphetamine, 53 firearms and $34,000 in cash. Two of the firearms were loaded and located near the meth and other drug trafficking materials. The jury deliberated about two hours following the three-day trial. U.S. District Judge Ronald B. Leighton ordered CARLSON into custody and scheduled sentencing for April 20, 2018.
CARLSON came to the attention of law enforcement in early 2016, when someone working with the Pierce County Sheriff’s Department purchased methamphetamine from CARLSON. Based on those contacts law enforcement obtained a search warrant. In CARLSON’s bedroom they found the pound of meth packaged for distribution as well as identity documents and two loaded firearms: a Springfield Armory 9 mm semi-automatic pistol and a Smith and Wesson .22 caliber semi-automatic pistol.
Carlson’s girlfriend, who was present when the police executed the search warrant, pleaded guilty to drug related charges in Pierce County Superior Court.
Due to the amount of drugs in this case, possession of methamphetamine with intent to distribute is punishable by a mandatory minimum ten years in prison and up to life in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum 5 years in prison and up to life in prison, to run consecutive to any sentence imposed on the drug possession count.
The case was investigated by the Pierce County Sheriff’s Department, Special Investigations Unit. Agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and Drug Enforcement Administration also testified as expert witnesses at trial.
The case was prosecuted by Assistant United States Attorneys Gregory A. Gruber and Andre Penalver.
Stephen McAllister Sworn in as U.S. Attorney for KansasRead the Press Release
WICHITA, KAN. – Stephen R. McAllister was sworn in Thursday as U.S. Attorney for the District of Kansas.
The Honorable Clarence Thomas of the United States Supreme Court administered the oath in a private ceremony today on the University of Kansas campus.
McAllister was nominated by President Donald Trump and confirmed by the U.S. Senate. He will be in charge of a staff of more than 100, including 50 attorneys, who work in offices in Topeka, Wichita and Kansas City, Kan. Tom Beall, who has served as U.S. Attorney on an interim basis since former U.S. Attorney Barry Grissom resigned in April 2016, will return to his position as First Assistant U.S. Attorney.
“I am honored to serve,” McAllister said. “I accept the duty to follow the law and to uphold the principles of fairness, impartiality and equal justice for all.”
McAllister has served as the Solicitor General of Kansas and the E.S. & Tom W. Hampton Distinguished Professor of Law at the University of Kansas. He argued nine times before the Supreme Court of the United States and he has taught constitutional law and federal civil rights law at KU. He clerked for Justice Thomas as well as the Honorable Byron R. White of the United States Supreme Court, and the Honorable Richard A. Posner at the United States Court of Appeals for the Seventh Circuit. He received a bachelor’s degree in 1985 from the University of Kansas, and a law degree in 1988 from the University of Kansas School of Law.
St. Francis Man Sentenced for Misprision of a FelonyRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man convicted of Misprision of a Felony was sentenced on January 22, 2018, by U.S. District Judge Roberto A. Lange.
Kyle Swift Hawk, age 25, was sentenced to 12 months and 1 day in prison, followed by 1 year of supervised release. Swift Hawk was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Swift Hawk was indicted by a federal grand jury on July 11, 2017. He pled guilty on October 30, 2017.
The conviction stemmed from an incident that occurred in St. Francis in the early morning hours of June 12, 2017. Swift Hawk and another man, George Scott, got into an altercation with the victim. While Swift Hawk and the victim scuffled, Scott pulled out a pocketknife and stabbed the victim multiple times. The victim suffered significant blood loss and internal injuries, and was subsequently hospitalized. Swift Hawk witnessed the stabbing but fled the scene and hid from tribal law enforcement until he was apprehended later that day.
Scott, age 32, was also indicted based on his involvement in the assault. On September 26, 2017, he pled guilty to Assault With a Dangerous Weapon, and was sentenced on December 11, 2017, to 54 months in prison, followed by 3 years of supervised release.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Swift Hawk was immediately turned over to the custody of the U.S. Marshals Service.
St. Francis Man Sentenced for Habitual Domestic AssaultRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man convicted of Domestic Assault by an Habitual Offender, was sentenced on January 22, 2018, by U.S. District Judge Roberto A. Lange.
Fabian McCloskey, age 42, was sentenced to 11 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
McCloskey was indicted by a federal grand jury on August 16, 2017. He pled guilty on October 30, 2017.
The conviction stemmed from an incident on April 29, 2017, when McCloskey drove to the victim’s residence, made threatening comments to the victim and refused to leave. McCloskey then forcefully carried the victim from her home to his car. McCloskey grabbed her head while the victim was in the car, causing an injury near her eye. McCloskey had been previously convicted of Domestic Abuse in Rosebud Sioux Tribal Court on two prior occasions.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson prosecuted the case.
McCloskey was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to 108 Months for Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of receipt of child pornography was sentenced on January 19, 2018, by U.S. District Judge Karen E. Schreier.
Scott Dyson, age 37, was sentenced to 108 months in custody, followed by 6 years of supervised release, and ordered to pay $5,000 in restitution. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Dyson was indicted for receipt of child pornography and possession of child pornography by a federal grand jury on October 4, 2016. He pled guilty on September 14, 2017.
On September 7, 2012, and October 14, 2012, Dyson knowingly received child pornography that he downloaded from the internet. When law enforcement searched his residence in August 2016, they discovered Dyson had a large screen television connected to a computer tower containing several hard drives. Overall, Dyson possessed over 17,000 images and videos of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement and the Department of Homeland Security. Assistant U.S. Attorney Jeff Clapper prosecuted the case.
Dyson was immediately turned over to the custody of the U.S. Marshals Service.
Salem County, New Jersey, Man Indicted for Illegal Storage and Disposal of Hazardous WasteRead the Press Release
NEWARK, N.J. – The former owner and president of a Glassboro, New Jersey, drum reconditioning company was indicted today for allegedly illegally storing and disposing of hazardous waste, U.S Attorney Craig Carpenito and Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the U.S. Department of Justice, announced.
Thomas Toy, 73, of Elmer, New Jersey, was charged with one count of illegal storage and disposal of hazardous waste at the site of Superior Barrel and Drum Company Inc. (Superior) in Glassboro, New Jersey, in violation of the Resource Conservation and Recovery Act (RCRA).
According to the Indictment:
Superior received drums from various industrial customers, cleaned and processed those drums, and then resold them. Toy directed and supervised the operations of Superior, including the storage and disposal of large amounts of waste – including hazardous waste – at the company’s site. Superior did not have a permit to store or dispose of hazardous waste there. From Sept. 27, 2013, to Sept. 25, 2014, the U.S. Environmental Protection Agency (EPA) removed waste stored at Superior’s site. Approximately 1,800 containers of waste were removed, and much of the waste was found to be hazardous. The EPA’s removal cost was $4.2 million.
Toy was charged under RCRA, which was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. The law is designed to protect human health and the environment and provided controls on the management and disposal of hazardous waste. It prohibits the treatment, storage or disposal of any hazardous waste without a permit.
The charge on which Toy was indicted carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the gain or loss caused by the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Environmental Protection Agency-Office of Criminal Enforcement, under the direction Special Agent in Charge Tyler C. Amon, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the Health Care and Government Fraud Unit in Newark and Trial Attorney Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.
The charge and allegations against Toy are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Registered Sex Offender Arrested, Charged with Enticement of A MinorRead 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 Carlos Francisco Lopez, 28, of Los Angeles, CA, was arrested and charged by criminal complaint with enticement of a minor to engage in sexual activity and attempting to transport a minor across state lines to engage in sexual activity. The charges carry a mandatory minimum penalty of 10 years and a maximum of life in prison.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on January 16, 2018, the City of Tonawanda Police Department received a request to conduct a welfare check on a 15 year old girl (victim) who was reported to have run away from home and gotten on a bus. Police officers located the bus in Tonawanda, stopped it, and located the victim who was a passenger. The victim told officers she was running away from home and intended to travel to California to visit family, claiming that her uncle purchased the bus ticket for her.
Subsequent interviews revealed that the victim met an unknown individual, with the username “playfulchaos,” on the internet application Kik in a group for runaway youth. In addition to discussing the victim running away, the two also discussed having sex. According to the victim, the two continued to communicate on the internet application Text Free, making plans for the victim to travel to California.
On January 18, 2018, an undercover law enforcement (UC) officer posed as the victim to continue to communicate with Lopez. The UC wrote, "hey u there... this bus ride sucks." The UC stated she was due into California around 10:00 pm on January 19, 2018 and asked what to do upon arrival. The defendant replied, "call me or text me. Wait at the station, and ill send an uber." Lopez was arrested after the UC sent a message that the bus had arrived and the defendant ordered an Uber.
In 2011, Lopez was convicted of a sexual offense against a child under the age of 14 in the State of California. He is a registered sex offender. The defendant was released from prison in 2016 and is an active parolee.
Lopez was arrested in Los Angeles, California and made an initial appearance in Federal Court in the Central District of California. The defendant will be returned to the Western District of New York at a later date.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, the City of Tonawanda Police Department, under the direction of Chief William Strassburg, and the Cheektowaga Police Department, under the direction of Chief David Zack.
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.
Previously Deported Mexican National Sentenced to Five Years for Federal Drug Trafficking and Firearms Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Moises Jimenez-Salas, 40, a Mexican national illegally in the United States who previously has been deported three times, was sentenced this morning in federal court in Santa Fe, N.M., to 60 months of imprisonment for his conviction on drug trafficking and firearms charges. Jimenez-Salas will be deported following his prison sentence.
Jimenez-Salas was arrested on May 12, 2016, and was charged in a criminal complaint with possessing methamphetamine and heroin with intent to distribute, and using and carrying a firearm and ammunition in relation to a drug trafficking crime. Court records reflect that on May 11, 2016, detectives of the Bernalillo County Sheriff’s Office (BCSO) responded to a motel at Coors Blvd. NW and Interstate 40 in Albuquerque after receiving a tip about drug trafficking activity occurring at the motel. At the motel, the detectives observed Jimenez-Salas carrying a cardboard box that contained 463 grams of methamphetamine and 16 grams of heroin. During a search incident to arrest, the detectives found a bag containing 21 grams of methamphetamine in Jimenez-Salas’ pocket and a firearm and ammunition on his waistband.
Jimenez-Salas subsequently was charged in a four-count indictment on May 25, 2016. The indictment charged Jimenez-Salas with being an alien illegally in possession of a firearm and ammunition, possessing heroin and methamphetamine with intent to distribute, and using and carrying a firearm in relation to a drug trafficking crime. The indictment alleged that Jimenez-Salas committed the crimes on May 11, 2016, in Bernalillo County, N.M.
On June 27, 2017, Jimenez-Salas pled guilty to possession of heroin with intent to distribute, and using and carrying a firearm in relation to a drug trafficking crime. In his plea agreement, Jimenez-Salas admitted that on May 11, 2016, he was in possession of a firearm and ammunition, approximately 484 grams of methamphetamine and 16 grams of heroin when he encountered BCSO officers outside of an Albuquerque-area motel. Jimenez-Salas further admitted that he possessed the firearm and ammunition as tools of the drug trafficking trade.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and BCSO and was prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org..
This case is also being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Pine Ridge Man Sentenced for Victim TamperingRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Tampering with a Victim by Threat was sentenced on January 19, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Timothy George Buckman, age 33, was sentenced to 57 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Buckman was charged on April 19, 2016, and pleaded guilty on July 18, 2017. The conviction stems from the robbery and assault of a man with a dangerous weapon in March 2016 at Pine Ridge, and Buckman later threatening the man.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Sarah B. Collins and Eric Kelderman prosecuted the case.
Philadelphia, Pennsylvania, Man Pleads Guilty to Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Manuel Emilio Payano, age 42, of Philadelphia, Pennsylvania, pled guilty to Possession With Intent To Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleges that on or about October 16, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine a Schedule II controlled substance.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Philadelphia Man Charged with Wire FraudRead the Press Release
PHILADELPHIA – Kenneth W. Lewis 41, of Philadelphia, PA, was charged today by Grand Jury Indictment with five counts of wire fraud announced United States Attorney Louis D. Lappen. The indictment alleges the defendant committed wire fraud by applying for credit cards using information for several non-profit organizations and an individual and used the cards to purchase gold coins, precious metals, and diamond earrings.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment for each count of conviction for wire fraud. A conviction for aggravated identity theft carries a mandatory 2-year sentence, 1 year supervised release, a $250,000 fine, and a $100 statutory assessment per count.
The case was investigated by the United States Postal Inspection Service and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Tiwana Wright.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Convicted of Distributing Fentanyl Analogue That Killed Orlando WomanRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Jeremy Achey (43, Bethlehem, PA) guilty of conspiracy to distribute and distribution of controlled substance analogues. He faces a mandatory minimum penalty of 20 years, up to life, in federal prison. His sentencing hearing is scheduled for April 13, 2018.
Achey was indicted on July 19, 2017.
According to testimony presented at trial, operating under the name “EtiKing,” Achey was one of the largest distributors of synthetic drugs on Alphabay Market, a “darknet” marketplace for illicit substances. Achey mailed thousands of packages containing numerous synthetic drugs to hundreds of customers throughout the country. On February 27, 2017, he sold one gram of tetrahydrofuran fentanyl, a synthetic analogue of fentanyl, which killed a 24-year-old woman in Orlando.
This case was investigated by the Drug Enforcement Administration, with assistance from the Pennsylvania State Police, the Orange County Sheriff’s Office, the U.S. Postal Inspection Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Nathan W. Hill.
Parmelee Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 24, 2018, by U.S. District Judge Roberto A. Lange.
Odell Thomas Goodshield, Jr., age 58, was sentenced to 16 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Goodshield was indicted by a federal grand jury on October 25, 2017. He pled guilty on December 1, 2017.
Goodshield was convicted of Aggravated Sexual Abuse of a Minor in June 1999. As a result of this conviction, he is required to register as a sex offender. Goodshield was released from custody on May 26, 2017, and began supervised release. Between the dates of July 5, 2017 and September 20, 2017, Goodshield did not register as a sex offender.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Daniel C. Nelson prosecuted the case.
Goodshield was immediately turned over to the custody of the U.S. Marshals Service.
Parker Man and Woman Each Sentenced to 25 Years in Federal Prison for MurderRead the Press Release
PHOENIX – Yesterday, Sharon Marie Clark, 57, of Parker, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 25 years in prison, followed by a term of five years of supervised release. Clark had previously pleaded guilty to second-degree murder and aiding and abetting. On Dec. 20, 2017, Jeffrey Scott Williams, 56, of Parker, Ariz., was also sentenced to 25 years in prison, followed by a term of five years of supervised release. Williams had previously pleaded guilty to second-degree murder and aiding and abetting.
On or between March 8 and 9, 2016, Clark and Williams took the victim to Clark’s apartment in Parker, Ariz. At the apartment, Williams zip-tied the victim’s wrists and ankles, Clark duct-taped the victim’s mouth closed and struck the victim in the face with her fists, and Williams wrapped the victim up in plastic. The victim was then dumped in a canal. The medical examiner determined that the victim’s cause of death was asphyxia due to drowning. The victim was a member of the Colorado River Indian Tribes, and the murder took place on the Colorado River Indian Tribes Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution was handled by Christina J. Reid-Moore and Dimitra H. Sampson, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-01397-DJH
RELEASE NUMBER: 2018-007_Clark & Williams
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
North Smithfield Man Detained on Cyberstalking ChargesRead the Press Release
PROVIDENCE, RI – A North Smithfield, R.I., man who recently relocated from Texas to Rhode Island has been ordered detained in federal custody in Rhode Island for allegedly cyberstalking and threatening to harm or kill a former girlfriend, her parents and three prosecutors in Texas.
Howard S. Bishop, 38, arrested by FBI agents on Tuesday, was ordered detained by U.S. District Court Magistrate Lincoln D. Almond yesterday on a two-count criminal complaint charging him with transmitting in interstate commerce communications containing threats to injure another person, and with harass or intimidate another person, using an interactive computer service or electronic communication service, that placed a person in reasonable fear of death or serious bodily injury and caused substantial emotional distress.
Bishop’s arrest and detention are announced by United States Attorney Stephen G. Dambruch and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
According to court records, in February 2011, a former girlfriend of Bishop obtained a protective order against Bishop in Travis County, TX. In January 2012, Bishop was found guilty of violating the order and received a sentence of two years’ probation.
According to court documents, in September 2017, Bishop returned to Rhode Island where his family resides. In December 2017, a misdemeanor warrant was issued in Travis County for the arrest of Bishop for allegedly violating the protective order.
It is alleged in court documents, beginning in November 2016 and continuing until his arrest in Rhode Island on Tuesday, Bishop sent hundreds of harassing and threatening messages via the Internet to his former girlfriend and her family, and to three Travis County, TX, prosecutors involved in the prosecution of Bishop for violating the protective order. All of the individuals expressed extreme fear for their safety. Prior to Bishop’s arrest, the former girlfriend was in hiding with the assistance of the FBI. The woman’s family hired armed security guards to protect their home. The prosecutors expressed to the FBI that they believed their lives were at risk.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Transmitting in interstate commerce communications containing threats to injure another person, and with harass or intimidate another person using an interactive computer service or electronic communication service, that placed a person in reasonable fear of death or serious bodily injury and caused substantial emotional distress are each punishable by up to 5 years in federal prison, a fine of $250,000 and 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI.
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Norfolk Man Pleads Guilty to Rolling Back Car OdometersRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to conspiracy to commit odometer tampering and securities fraud.
According to court documents, from in or about September 2010 through October 2016, Lawson W. Basnight, 47, and others conspired to defraud vehicle purchases into believing used vehicles had lower mileages than they actually had, resulting in the purchasers paying more for vehicles than they would have if they had known the true mileage of the used car. Basnight found high-mileage used cars for sale on the Internet, and when negotiating to buy the cars Basnight posed as a used car dealer. If he bought the car, he would instruct that the seller not fill in the assignment portion of the title. After Basnight got the car, he had another person roll back the odometer. Basnight would then prepare the title application with the false lower odometer readings. After securing new official titles, Basnight was able to get new purchasers to pay more money for the used cars.
Basnight pleaded guilty to conspiracy to commit odometer tampering and securities fraud and faces a maximum penalty of five years in prison when sentenced on May 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Trial Attorneys Jacqueline Blaesi-Freed and John W. Burke of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Elizabeth M. Yusi are prosecuting the case.
The Virginia Department of Motor Vehicles and the National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) investigated the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals having information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
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. 2:17-cr-171.
New Orleans Woman is Sentenced for Making False Statements to the Federal Bureau of InvestigationRead the Press Release
KYRA D. MORRIS-GRIFFITH, (MORRIS-GRIFFITH), age 37, of New Orleans, was sentenced today before U.S. District Judge Carl J. Barbier, announced U.S. Attorney Duane A. Evans. MORRIS-GRIFFITH previously pled guilty to a one (1) count Ninth Superseding Bill of Information for false statements made to an agency of the United States, in violation of Title 18, United States Code, Section 1001(a)(2), a felony. MORRIS-GRIFFITH was sentenced to pay a fine of $1,000 and a mandatory special assessment fee of $100.
According to court documents, MORRIS-GRIFFITH knowingly and willfully made materially false, fictitious and fraudulent statements and representations in a matter within the jurisdiction of an agency of the executive branch of the United States Government, to wit, the Federal Bureau of Investigation (“FBI”). Specifically, in response to questioning by the FBI, MORRIS-GRIFFITH falsely denied that on May 7, 2014, she and her father, W.D., saw and met with Gregory Denson, her uncle, who was at the Brown Derby Super Store located at Jefferson Davis Parkway and Tulane Avenue in New Orleans, Louisiana for the purpose of learning the whereabouts of E.B. and MORRIS-GRIFFITH’s silver Infinity QX-56 SUV when, in fact, she did. The FBI’s questioning of MORRIS-GRIFFITH was in connection with an ongoing investigation of Gregory Denson for serious drug and violent crime related offenses.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department led Multi-Agency Gang Unit in investigating this matter.
Assistant United States Attorneys Michael M. Simpson, Gregory Kennedy, and James Baehr were in charge of the prosecution of the defendant.
New Orleans Man Sentenced for Operating Heroin Conspiracy in New Orleans EastRead the Press Release
U.S. Attorney Duane A. Evans announced that TERRELL CARNEY, age 36, of New Orleans, was sentenced after previously pleading guilty to conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.
U.S. District Judge Carl J. Barbier sentenced CARNEY to 180 months imprisonment.
On July 25, 2014, CARNEY was one of 12 defendants charged in a 23-count indictment. According to court documents, this investigation targeted a heroin trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in New Orleans. Agents seized approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry and real property) from members of this drug trafficking organization that were acquired with proceeds made from the sale of heroin.
Co-defendants include:
LARRY HARDY pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 90 months incarceration.
AMBROSE WILLIAMS pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 120 months incarceration.
ANTOINETTE KELLY pled guilty to distribution of heroin and was sentenced to 15 months incarceration.
CHRISTOPHER FRANCIS pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 240 months incarceration.
RODNEY MACK pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 120 months incarceration.
THOMAS HARRISON pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 144 months incarceration.
VINCENT P. JONES pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 180 months incarceration.
BETH MARIE NGUYEN pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 36 months incarceration.
RICKY MARQUETTE BOZEMAN pled guilty to conspiracy to possess with intent to distribute 100 grams or more of heroin and was sentenced to 144 months incarceration.
MICHAEL SORINA pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and was sentenced to 120 months incarceration.
ANTWINE SMITH pled guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and is scheduled to be sentenced on 5/31/2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Kenner Police Department, and Border Patrol in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
New Jersey Man Indicted for Illegal Storage and Disposal of Hazardous WasteRead the Press Release
The former owner and president of a Glassboro, New Jersey, drum reconditioning company was indicted today for allegedly illegally storing and disposing of hazardous waste, U.S Attorney Craig Carpenito and Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the U.S. Department of Justice, announced.
Thomas Toy, 73, of Elmer, New Jersey, was charged with one count of illegal storage and disposal of hazardous waste at the site of Superior Barrel and Drum Company Inc. (Superior) in Glassboro, New Jersey, in violation of the Resource Conservation and Recovery Act (RCRA).
According to the Indictment, Superior received drums from various industrial customers, cleaned and processed those drums, and then resold them. Toy directed and supervised the operations of Superior, including the storage and disposal of large amounts of waste – including hazardous waste – at the company’s site. Superior did not have a permit to store or dispose of hazardous waste there. From Sept. 27, 2013, to Sept. 25, 2014, the U.S. Environmental Protection Agency (EPA) conducted a removal action of waste stored at Superior’s site. Approximately 1,800 containers of waste were removed, and much of the waste was found to be hazardous. The EPA’s removal cost was $4.2 million.
Toy was charged under RCRA, which was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. The law is designed to protect human health and the environment and provided controls on the management and disposal of hazardous waste. It prohibits the treatment, storage or disposal of any hazardous waste without a permit. The charge on which Toy was indicted carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the gain or loss caused by the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Environmental Protection Agency, under the direction Special Agent in Charge Tyler C. Amon, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the Health Care and Government Fraud Unit in Newark and Trial Attorney Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.
The charge and allegations against Toy are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Haven Man Who Possessed Stolen Firearm is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL BALDWIN, 20, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to one day of imprisonment, time already served, and three years of supervised release, for possessing a stolen firearm. Judge Bryant also ordered BALDWIN to perform 120 hours of community service while on supervised release.
According to court documents and statements made in court, on April 10, 2016, Hamden Police arrested BALDWIN after he and other individuals fled from police in a stolen car. After a pursuit, the vehicle crashed into a pole and BALDWIN, who had not been driving, fled from officers on foot. He was subsequently taken into police custody. A search of BALDWIN’s person revealed a plastic bag containing crack cocaine packaged for street sale, and a makeshift firearm holster around his stomach. Officers also located and seized a Springfield Armory XD .40 caliber handgun that had been discarded next to the crashed vehicle.
The firearm had previously been reported stolen from a residence in Hamden.
On April 5, 2017, BALDWIN pleaded guilty to one count of possession of a stolen firearm.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hamden Police Department. The case was prosecuted by Assistant U.S. Attorneys Natasha Freismuth and Peter Markle.
Nevada Man Indicted for Distribution of Anabolic Steroids and Drug MisbrandingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted George Sambuca a/k/a “Jack Yates,” a/k/a “Steven Thompson,” age 32, of Henderson, Nevada, today on charges related to a scheme to defraud customers by mislabeling drugs and distributing anabolic steroids. The indictment was returned on November 15, 2017, and unsealed upon the arrest of the Sambuca.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Special Agent in Charge Mark S. McCormack of the Food and Drug Administration - Office of Criminal Investigations, Metro Washington Field Office.
According to the four-count indictment, Sambuca distributed the anabolic steroids, Testosterone, Nandrolone, Stanozolol, Oxandrolone, and Oxymetholone, all of which are Schedule III controlled substances. Sambuca mislabeled these drugs as “TEST SUSTANON 350MG,” “DBOL 5g” and “SUSTANON 350MG/ML . . . 100cc” and sent them from his residence in Nevada to Maryland on two separate occasions, conducting his business under the name of “Dynasty Labs.”
Sambuca faces a maximum of 10 years imprisonment for each of the two counts of Distribution of Anabolic Steroids and a maximum of 3 years imprisonment for each of the two counts of Introduction of Misbranded Drugs into Interstate Commerce with Intent to Defraud and Mislead. Sambuca had an initial appearance on January 19, 2018, in U.S. District Court for the Eastern District of Pennsylvania, where he was arrested and ordered detained. An initial appearance has not yet been scheduled in Greenbelt, Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI and the FDA-OCI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Kelly Hayes who is prosecuting the case.
Narcotics Dealer Sentenced to 21 Years in Prison for Sale of Heroin and Fentanyl That Resulted in Manhattan Man’s Overdose DeathRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DASHAWN HAWKINS, a/k/a “Jhonny Cash,” of New York, New York, was sentenced yesterday to 21 years in prison by United States District Judge Gregory H. Woods for selling heroin and fentanyl that resulted in the overdose death of Colin Cameron, age 29, of New York, New York, on September 2, 2016.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Dashawn Hawkins sold the lethal dose of fentanyl-laced heroin that cut short Colin Cameron’s life. Now Hawkins has received the lengthy sentence warranted by his serious crime and its grim consequences.”
According to documents filed in this case and statements made in related court proceedings:
On or about September 1, 2016, DASHAWN HAWKINS, a/k/a “Jhonny Cash,” sold a mixture of heroin and fentanyl to Colin Cameron. The next morning, New York City Police Department (“NYPD”) officers responded to Cameron’s apartment on the Upper West Side, where they found Cameron dead from a drug overdose. In the month leading up to Cameron’s death, HAWKINS had sold heroin to Cameron nearly a dozen times, and had previously sold heroin to Cameron on a daily basis for almost two years before Cameron was able to maintain sobriety for several months. In early August 2016, however, HAWKINS contacted Cameron out of the blue in order to start selling him heroin again. Cameron told HAWKINS that he was unsure about buying heroin because he was on a medicine designed to block the effects of opioids. This medicine is commonly prescribed for people going through recovery. Despite this knowledge, HAWKINS sold heroin to Cameron throughout the month of August until Cameron’s eventual death.
After identifying HAWKINS as the dealer who sold Cameron the fatal dose of fentanyl-laced heroin, the NYPD arrested HAWKINS on October 20, 2016, and searched his apartment. During the search, officers found, among other things, additional bags of heroin and substances used to cut heroin, fentanyl packaging, over $14,000 in cash, and a short-barreled rifle with a high-capacity magazine loaded with 34 rounds of ammunition.
* * *
Mr. Berman praised the outstanding investigative work of the New York City Police Department.
This prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jason M. Swergold and Amanda L. Houle are in charge of the prosecution.
Mount Morris Man Sentenced on Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Zackery D. Billings, 27, of Mount Morris, NY, who was convicted of conspiracy to manufacture, possess with intent to distribute, and to distribute, a mixture and substance containing methamphetamine, was sentenced to 36 months in prison by U.S. District Court Judge Lawrence J. Vilardo.Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that between January of 2011 and October 25, 2011, the defendant conspired to manufacture and distribute methamphetamine. In order to avoid restrictions on the purchase of pseudoephedrine, an important chemical in the methamphetamine manufacturing process, Billings engaged in the practice of “smurfing” (buying small quantities) at local pharmacies.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Region; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Wellsville Police Department, under the direction of Chief Timothy O’Grady; U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; and the New York State Department of Environmental Conservation, under the direction of Captain John Burke.
Mission, Texas Man Sentenced to Federal Prison for Role in Drug Trafficking / Money Laundering ConspiracyRead the Press Release
In San Antonio yesterday afternoon, a federal judge sentenced 46–year-old Reymundo Villarreal-Arelis (aka “Mundo”) of Mission, TX, to 20 years imprisonment followed by five years of supervised release for his role in a drug trafficking and money laundering conspiracy occurring in South Texas, Central Texas and Oklahoma announced United States Attorney John F. Bash, Western District of Texas; United States Attorney Ryan K. Patrick, Southern District of Texas; Acting Internal Revenue Service-Criminal Investigation Special Agent in Charge Andy Tsui, San Antonio Division; and, Drug Enforcement Administration Special Agent in Charge Will Glaspy, Houston Division.
On June 15, 2017, jurors convicted Villarreal-Arelis on one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine and one count of conspiracy to commit money laundering. Jurors found that Villarreal-Arelis and others, including 12 relatives, conspired to (1) engage in financial transactions using proceeds derived from the importation, receipt, concealment, purchase, and/or selling cocaine; and (2) transport or transmit monetary instruments to locations outside of the United States in an effort to conceal the source, ownership and control of proceeds derived from unlawful activity.
Evidence presented at trial revealed that the defendant was a member of a significant Rio Grande Valley cocaine trafficking family known as “Los Piojos” led by brothers Gilberto Villarreal-Arelis, Reymundo Villarreal-Arelis, and Juan Villarreal-Arelis (aka ”Juando”) along with their nephew, Jose Luis Villarreal-Gonzalez (aka “Nune”). Beginning in 2000, this organization was responsible for the importation and distribution of thousands of kilograms of cocaine supplied by the Gulf Cartel and subsequently by Los Zetas. This organization maintained control over smuggling routes stretching from Guatemala to Diaz Ordaz, Mexico, across from McAllen, TX. Cocaine was smuggled into and kept in stash houses in McAllen before being transported to San Antonio, Houston, Dallas, New York, Chicago, Atlanta, Oklahoma, North Carolina and Florida.
Testimony during trial revealed that cocaine sales generated millions of dollars for this organization, some of which was used to purchase more than 50 quarter horses. The defendants used the horse racing industry as one money laundering mechanism for their illegal proceeds.
During this investigation, authorities seized 280 kilograms of cocaine and between $15-20 million in assets attributed to the criminal activity of the defendants, including cash in various bank accounts, quarter horses, the Riverside Plaza shopping center in Mission, numerous residences and other real estate properties.
To date, 14 individuals and two companies have pleaded guilty to federal charges in connection with this investigation. Terms for 13 individuals previously sentenced range from probation to 216 months incarceration. Sergio Guadalupe Adame–Ochoa, Alan Land LP, and Alan Management LLC are scheduled to be sentenced on March 7, 2018. On March 19, 2018, three additional defendant companies--Edison Commerical, LP; Edison Investments, LLC; and Antequera Partners, LP—are scheduled for jury selection and trial on money laundering conspiracy charges. Defendant Gilberto Villarreal-Arelis (aka “Beto”, “Betito”) remains a fugitive.
This investigation was conducted by the IRS-Criminal Investigation Waco Treasury Task Force, which is comprised of the IRS-CI, the Irving Police Department, the Woodway Public Safety Department and the McLennan County Sheriff’s Office, together with the Drug Enforcement Administration’s McAllen, San Antonio and Houston field offices, the Homeland Security Investigations and the United States Marshals Service.
Mission Man Sentenced for Firearms ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Possession of Unregistered Firearm and Prohibited Person in Possession of a Firearm was sentenced on January 22, 2018, by U.S. District Judge Roberto A. Lange.
Keith Bordeaux, age 20, was sentenced to 33 months in custody, followed by 3 years of supervised release, $546.34 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Bordeaux was indicted by a federal grand jury on March 15, 2017. He pled guilty on October 30, 2017.
The conviction stems from an incident between November 11-13, 2016, when 14 firearms were stolen from a home in Mission. Co-defendant Dakota Marshall stored two of the stolen firearms, including a Marlin Bolt Action .22 Rifle and a Weatherby 20 Gauge Youth shotgun TA-08, at his home located in Mission. Co-defendant Stephanie Bear Heels obtained the stolen Henry Repeating Arms Mimi Bolt .22 rifle following the burglary. She and co-defendant Angelito Moran knew that the defendant and his brother, co-defendant Kevin Bordeaux, were looking for guns to buy/trade for narcotics. Defendant purchased the “Broden” rifle from Moran and Bear Heels for $50 worth of methamphetamine. The “Broden” rifle was recovered by law enforcement from Keith and Kevin Bordeaux’s home.
The defendant acquired the stolen Weatherby “short shotgun” with a barrel length of approximately 14 and 5/8 inches, the same night law enforcement seized the stolen “Broden” rifle from his home. Defendant did not register the “short shotgun” with the National Firearms Registration and Transfer Record as he was required to do. Instead, he hid the firearm in the wall of a young child’s room in his mother’s home.
The defendant knew the firearms were stolen, and the possession of the firearms by any person other than the owner would be unlawful. Further, the defendant is a regular user of methamphetamine and he is not permitted to possess any firearm under federal law.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Keith Bordeaux was immediately turned over to the custody of the U.S. Marshals Service.
Mexican Man Sentenced for Illegal Use of a Social Security NumberRead the Press Release
EFRAIN VARELA-TOLENTINO, age 31, a citizen of Mexico was sentenced today after previously pleading guilty to illegal use of a Social Security Number in violation of Title 42, United States Code, Section 408(a)(7)(B).
U.S. District Judge Jane Triche-Milazzo sentenced VARELA time served to be followed by one year of supervised release. VARELA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, VARELA illegally used a Social Security number that was not assigned to him by the Social Security Administration to register for a safety training class that he was required to complete before he could begin working for his employer at various industrial sites as a pipe insulator.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Metairie Man Sentenced to 72 Months After Pleading Guilty to Receipt of Child PornographyRead the Press Release
U.S. Attorney Duane A. Evans announced that BRIAN LISTER, age 41, of Metairie, Louisiana, was sentenced today to 72 months imprisonment by United States District Judge Jane Triche Milazzo after previously pleading guilty to a one-count Indictment charging him with receipt of images and videos depicting the sexual exploitation of children. LISTER was sentenced to pay $7,500 in restitution, and a mandatory special assessment fee of $100. LISTER was also ordered to register as a sex offender.
According to court documents, special agents with the Federal Bureau of Investigation executed a search warrant at LISTER’S residence on July 23, 2015, after obtaining information that LISTER had repeatedly accessed a website dedicated to the advertisement and distribution of child pornography. During the search, the FBI seized numerous electronic items including one laptop computer and one external digital storage device that contained images and videos of child pornography. A forensic examination of the device revealed that LISTER used the devices to search for, download, and save images and videos of children as young as approximately two (2) year old engaging in sexually explicit conduct. LISTER obtained most, if not all, of the images and videos via a via a peer-to-peer file sharing program. The forensic examination located approximately 1,148 images and 1 videos of prepubescent children engaging in sexually explicit on LISTER’S electronic devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Jordan Ginsberg.
Massachusetts Insurance Broker Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Dover, Massachusetts, insurance broker was sentenced today to eight months in prison for filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew E. Lelling for the District of Massachusetts.
According to the evidence presented at trial, Anthony J. May, 62, owned and operated Clients First Financial Insurance Agency LLC, through which May sold life insurance products as an insurance broker, and Advantage Life Settlements LLC, through which he served as a broker for insured individuals seeking to sell their personal life insurance policies to third party investors. May operated his businesses out of an office suite in Hingham, where he also leased office space to other independent insurance agents. May filed false 2006 through 2009 individual income tax returns that did not report more than $738,000 in income that he received from insurance commissions, brokerage fees, and office rental payments.
In addition to the term of imprisonment, U.S. District Court Judge William G. Young ordered May to serve one year of supervised release. May was previously convicted following a jury trial in May 2017 of filing false 2008 and 2009 tax returns.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lelling praised special agents of the Internal Revenue Service Criminal Investigation, who conducted the investigation, and Trial Attorney Eric Powers of the Tax Division and Assistant U.S. Attorney Victor A. Wild, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Marshall County man sentenced for drug distribution chargeRead the Press Release
WHEELING, WEST VIRGINIA – Rhett D. Gump, of Moundsville, West Virginia, was sentenced to 12 months and one day incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Gump, age 24, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location” in September 2017. Gump admitted to selling methamphetamine near the Golden Towers in Moundsville on January 5, 2017.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Man Pleads Guilty to DOD Bribery and Kickback ConspiracyRead the Press Release
ALEXANDRIA, Va. – An Alabama man pleaded guilty today to his role in a bribery and kickback scheme involving a contract for the Department of Defense’s Office of Inspector General (DOD OIG).
According to court documents, Ronald A. Capallia, Jr., 37, accepted over $700,000 in kickbacks from William S. Wilson, of Florida, in exchange for unlawfully steering work to Wilson’s companies in connection with prime government contracts, and further assisted Wilson in providing bribes to former DOD OIG employee Matthew Kekoa LumHo, 42, of Fairfax Station. At the time of the kickbacks, Capallia worked for a telecommunications company that had been awarded a prime contract to provide an array of voice and data services to the DOD OIG and other federal agencies. In return for the kickbacks, Capallia repeatedly caused his employer to order services from Wilson’s companies, even though he knew that Wilson’s companies had no relevant expertise in providing the services to be performed, and despite knowing that there was no legitimate business reason to involve Wilson’s companies. Capallia also submitted millions of dollars in false service orders to the DOD OIG for services that he, Wilson, and LumHo knew would not be provided to the government. Capallia arranged to submit these false service orders so that Wilson could substantially inflate the prices his company was charging indirectly to the government, and to conceal the fact that several of the service orders were pretexts through which to pay bribes to LumHo. Wilson routed the kickbacks to Capallia in the form of over $500,000 in supposed salary payments to Capallia’s relative for a job that did not exist, through the purchase of two brand new vehicles each worth over $40,000, through over $60,000 in Caribbean cruises, airfare, and hotel accommodations, and through the purchase of electronics equipment.
Capallia pleaded guilty to conspiracy to commit wire fraud and to false claims. He faces a maximum penalty of 25 years in prison when sentenced on September 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorneys Matthew Burke and Samantha Bateman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-223.
Man Convicted in Tax Avoidance ConspiracyRead the Press Release
HOUSTON – A local bar owner has entered a guilty plea to conspiring with others to defraud the United States by failing to pay taxes on income he received from vending machines located in the bars he owned, announced U.S. Attorney Ryan K. Patrick.
In the plea agreement filed in the record of the case, Jerome E. Rivera admitted he had partial ownership of multiple bars in the Houston area that operated under the name “On the Rox.” Rivera conspired with others to conceal the cash income from vending machines located in the bars from the IRS.
According to the plea agreement, Rivera admitted he failed to report a total of $557,289 in income for tax years 2010, 2011 and 2012. Rivera’s failure to pay taxes on this income resulted in a tax loss to the United States of $147,375.
U.S. District Judge David Hittner accepted the plea and has set sentencing for April 19, 2018. At that time, Rivera faces up to five years in federal prison and a possible $250,000 maximum fine. Rivera was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
MS-13 Gang Member Sentenced to Federal PrisonRead the Press Release
Acting United States Attorney Corey R. Amundson announced that, yesterday, United States District Court Judge Shelly D. Dick sentenced JUAN BLANCO, age 37, a member of the notorious MS-13 gang, to serve 21 months in federal prison following his conviction for illegal re-entry into the United States by a removed alien.
In March of 2017, a federal grand jury sitting in the Middle District of Louisiana returned an indictment charging BLANCO with illegal re-entry into the United States. BLANCO had been arrested by local law enforcement authorities and was in custody, charged with using a machete to commit an assault in Baton Rouge. BLANCO was eventually convicted of aggravated assault and other offenses in state court and, in August of 2017, he pled guilty to the pending federal indictment. BLANCO admitted during yesterday’s sentencing hearing that he is a member of MS-13, a violent gang active in Central America and the United States. BLANCO’s criminal history dates back to 2002 and includes multiple convictions for robbery, assault, battery, and resisting an officer. BLANCO previously was deported from the United States to his home country of El Salvador in 2008.
Acting U.S. Attorney Amundson stated, “Immigration-related crimes involving those affiliated with gangs are a priority for this office, and for good reason: BLANCO illegally re-entered the United States after being deported, and once here, he continued committing violent crimes in our community. I appreciate the work of ICE-Enforcement and Removal Operations in identifying BLANCO and bringing him to our attention, so that we could use the resources and criminal statutes available to us to assist in keeping BLANCO off of our streets for as long as possible.”
“This case is a great example of how ICE Enforcement and Removal Operations is working to keep criminal illegal aliens out of our communities,” said Acting New Orleans Field Office Director Scott L. Sutterfield. “ERO will continue focusing our resources on ensuring violent threats to our citizens receive the justice they deserve.”
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, and the East Baton Rouge Parish Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Ryan Rezaei and Kevin Sanchez.
Lynnfield Woman Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – A Lynnfield woman was arrested today and charged with filing false tax returns, in which she claimed more than a $370,000 mortgage interest deduction, even though she had defaulted on the loan and the property had gone into foreclosure.
Karyn M. Ingram, 50, was charged in an indictment with three counts of filing false tax returns for tax years 2011, 2012 and 2013. Ingram had an initial appearance today in federal court in Boston.
According to the indictment, Ingram filed tax returns in which she reported false and inflated Schedule A deductions and in one year, a Schedule C business loss, in order to reduce her overall tax liability. For example, for tax years 2010 and 2011, Ingram filed returns claiming mortgage interest deductions of $45,072 and $371,427, but she had not made any mortgage payments since 2008, the loan had defaulted, and the property had gone into foreclosure. She also claimed real estate tax deductions in those same tax years, when, in reality, the real estate taxes had been paid by the mortgage lender and not by Ingram. The indictment alleges that by falsifying the deductions and losses, Ingram fraudulently reduced her tax liability by more than $126,000.
The charge of filing false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lower Brule Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on January 22, 2018, by U.S. District Judge Roberto A. Lange.
Errol Jerome Flute, a/k/a Errol Jerome Pretty Sounding Flute, a/k/a EJ Flute, age 24, was sentenced to 18 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Flute was indicted by a federal grand jury on May 16, 2017. He pled guilty on November 2, 2017.
The conviction stems from an incident on December 29, 2016, when the 14-year-old victim went to her boyfriend’s home in Lower Brule. The defendant is engaged to the victim’s boyfriend’s mother. The victim’s boyfriend was sleeping on the couch, and the victim began to socialize with the defendant and others. The defendant’s fiancée left the residence, and the defendant and the victim ended up in the back bedroom where they engaged in sexual intercourse.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Flute was immediately turned over to the custody of the U.S. Marshals Service.
Lockport Woman Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Colette Arne, 67, of Lockport, NY, who was convicted of possession with intent to distribute, and distribution of oxymorphone, a Schedule II controlled substance, was sentenced to two years supervised release by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between January 2012 and January 6, 2014, the defendant sold oxymorphone to a confidential source working with law enforcement officers on two separate occasions at the defendant’s Applewood Drive residence. Following the second sale, Arne’s residence was searched with her consent. Officers recovered $20,200 in cash and empty prescription pill bottles. The prescriptions were issued to the defendant and her now-deceased husband.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Local Medical Doctor Sentenced for Illegally Dispensing and Distributing Controlled Substances by Prescriptions and Money LaunderingRead the Press Release
U.S. Attorney Duane A. Evans announced that FREDERICK FLOYD, D.O., age 58, a physician who practiced and resided in New Orleans, was sentenced today after previously pleading guilty to a two-count Bill of Information charging him with illegally dispensing controlled substances and money laundering.
U.S. District Judge Carl J. Barbier sentenced FLOYD to ten years (120 months) imprisonment.
According to court documents, DR. FLOYD illegally dispensed and conspired with others to illegally dispense controlled substances, including Oxycodone, a Schedule II controlled substance, and other controlled substances. The original charge, contained in a complaint filed in court, states that DR. FLOYD dispensed more than 4.8 million dosages of controlled substances by prescriptions between January 1, 2015 and August 31, 2016. At least half of this quantity was distributed illegally by DR.FLOYD.
As part of the sentence imposed, FLOYD was ordered to forfeit over $42,000 in property seized, currency, and real property. Additionally, the Court imposed a forfeiture money judgment against FLOYD in the amount of $2,500,880.41.
“Let DR. FLOYD’s conviction and forfeiture money judgement serve as notice to anyone who chooses to illegally distribute prescription opioids that your criminal acts will not be tolerated. The Department of Justice, the Eastern District of Louisiana, and our federal, state, and local law enforcement partners are committed to battling the opioid epidemic. The investigation and prosecution of these types of cases remains one of the top priorities of this office,” stated U.S. Attorney Duane A. Evans
“Dr. Frederick Floyd took an oath to serve humanity as an educated medical professional and decided to violate that oath and his duty by choosing to peddle prescription drugs for one sole purpose – greed. His disgraceful conduct is part of the massive opioid epidemic faced by the entire nation and the greater New Orleans area today. More than 116 Americans are dying every day from an opioid overdose and the deaths are continuing to rise. Let this lengthy sentence be a message to all that DEA will continue to pursue, arrest, and prosecute drug traffickers of every type, including rouge medical professionals. We will continue to work with all of our law enforcement and community partners in an effort to combat this opioid epidemic and keep our communities safe,” stated DEA Special Agent in Charge Stephen G. Azzam.
U.S. Attorney Evans praised the work of the Special Agents of the Drug Enforcement Administration, Internal Revenue Service, New Orleans Police Department, Jefferson Parish Sheriff’s Office, Harahan Police Department, Westwego Police Department, New Orleans District Attorney’s Office, Kenner Police Department, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney John F. Murphy was in charge of the prosecution.
Leeds Resident Indicted for Scheme to Defraud the IRS; Charges Allege at Least 60 Fraudulent Tax Returns Were FiledRead the Press Release
SALT LAKE CITY -- A federal grand jury returned a 24-count indictment Wednesday afternoon charging Landon Blake Pilkey, age 33, of Leeds, Utah, with what the indictment alleges was a scheme to defraud the IRS. Money obtained through the alleged fraud scheme was transferred to other co-conspirators in Lebanon and the United Arab Emirates.
Announcing the indictment are Utah U.S. Attorney John W. Huber and Tara Sullivan, IRS-Criminal Investigation Special Agent in Charge of the Las Vegas IRS Field Office.
According to the indictment, the fraud scheme operated from about March 10, 2013, to May 28, 2013. Pilkey and other co-conspirators in the case used the names and personal identifying information of deceased individuals to file and fraudulently obtain federal tax returns. At least 60 fraudulent tax returns were filed as part of the scheme. The fraudulent tax returns resulted in deposits of $58,658, the indictment alleges.
Pilkey facilitated the receipt of money as a part of the scheme. According to the indictment, Pilkey maintained and monitored several bank accounts where fraudulent tax refunds were deposited. The indictment alleges Pilkey transferred money from the accounts to other co-conspirators of the scheme in Lebanon and the United Arab Emirates Pilkey made at least 15 withdrawals from the accounts where the fraudulent tax returns were deposited and wrote four checks to himself from the accounts for which he had no signing authority, the indictment alleges.
The first count of the indictment alleges conspiracy to submit false claims in connection with the attempt to defraud the IRS. The potential maximum penalty for this count is 10 years in prison.
Theft of public money is charged in 19 counts of the indictment reflecting money Pilkey received through the fraudulently filed federal tax returns. The potential maximum penalty for each count of theft of public money is 10 years in prison.
The final four counts of the indictment allege aggravated identity theft. These counts allege Pilkey possessed and used the identification of another person to commit a felony – in this case, theft of government money. Each identity theft count has a potential minimum-mandatory sentence of two years in prison. The sentence would be served consecutive to any other sentence imposed in the case.
Pilkey will be issued a summons to appearance in federal court.
An indictment is not a finding of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorney Richard W. Daynes is prosecuting the case. Special agents of IRS Criminal Investigation are investigating the case.
Las Vegas Resident Pleads Guilty to Filing False Tax ClaimsRead the Press Release
OAKLAND - Eric Oase pleaded guilty in federal court in Oakland today to filing false claims with the United States, announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf.
In pleading guilty, Oase, 52, of Las Vegas, Nev., admitted he owned and operated E&K Tax Solutions in San Leandro, Calif. Oase acknowledged he knowingly prepared and filed numerous false federal income tax returns for others with the Internal Revenue Service. Specifically in 2012, Oase prepared 2008, 2009, 2010, and 2011 federal income tax returns for his customers that reported false wages, false education expenses, or both, which generated tax refunds. Regardless of the amount of wages or expenses provided by the customers, Oase falsely reported income and education expenses for his customers that generated tax refunds. Oase electronically filed with the IRS the false 2011 tax returns. He directed his customers to mail their 2008 through 2010 tax returns to the IRS. In total, Oase directed his clients to claim fraudulent tax refunds in the amount of $477,333.
A federal grand jury indicted Oase on January 17, 2017, charging him with six counts of filing false claims, in violation of 18 U.S.C. § 287. Pursuant to today’s agreement, Oase pleaded guilty to two of the counts.
Oase is currently free on bond. His sentencing hearing is scheduled for May 24, 2018, before the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, in Oakland. The maximum statutory penalty for each count of filing a false claim in violation of 18 U.S.C. § 287 is five years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney José A. Olivera is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.
Las Cruces Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Guy Bell, 29, of Las Cruces, N.M., pled guilty today in federal court to drug trafficking and firearms charges.
Bell was arrested on Aug. 16, 2017, on an indictment charging him with distributing methamphetamine near a school, being a felon in possession of a firearm, and using and carrying a firearm in relation to a drug trafficking crime. According to the indictment, Bell committed the offenses on Nov. 2, 2016, in Dona Ana County, N.M. Bell was prohibited from possessing firearm or ammunition because he previously has been convicted of larceny of a firearm and tampering with evidence.
During today’s proceedings, Bell pled guilty to a felony information charging him with distribution of methamphetamine near a school, being a felon in possession of a firearm and using and carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Bell admitted that on Nov. 2, 2016, he facilitated the sale of approximately 27 grams of pure methamphetamine between an undercover law enforcement agent and Bell’s source of supply, by driving the agent to the residence of the source of supply, which was approximately 500 feet away from an elementary school. Bell also admitted carrying a loaded pistol during the drug transaction for his protection. Bell acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Bell faces a maximum penalty of 40 years of imprisonment on the drug trafficking charge and a maximum penalty of ten years of imprisonment for being a felon in possession of a firearm. In addition, Bell faces a mandatory penalty of at least five years of imprisonment for using a firearm in relation to a drug trafficking crime and this sentence must be served consecutive to the sentence imposed on the other charges. Bell remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorneys John Balla and Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office.
Lafayette man sentenced to 14 years in prison for receiving child pornography through FacebookRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Lafayette man was sentenced last week to 168 months in prison for enticing a minor into sending images of child pornography online.
Steven Anthony Lemoine, 29, of Lafayette, was sentenced January 18 by U.S. District Judge Dee D. Drell on one count of receiving child pornography. He was also sentenced to 15 years of supervised release and must register as a sex offender. According to the October 19, 2018 guilty plea, Lemoine posed as a female on Facebook and enticed a 12-year-old minor to send him images of child pornography on December 26, 2016 and January 5, 2017. Lemoine’s home was later searched, and he admitted to using the online persona to obtain the images.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security, Louisiana State Police and Marksville Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.