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Wednesday 24 January 2018
Buffalo Man Indicted on Cocaine 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 a federal grand jury has returned an indictment charging Larry Smith, Jr., 39, of Buffalo, NY, with possession with intent to distribute, and distribution of, 28 grams or more of crack cocaine; possession of cocaine with intent to distribute; and maintaining a drug-involved premises. The charges carry a mandatory minimum sentence of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment, between June 9 and July 27, 2017, the defendant possessed and distributed crack cocaine in the Buffalo area. In addition, on October 5, 2017, Smith possessed cocaine with the intent to distribute it. The indictment further charges that the defendant used 56 Burgard Place in Buffalo for the purpose of manufacturing, distributing, and using cocaine.
The defendant was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt.
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.
Broward Resident Found Guilty of Stealing Deceased Grandparents’ Social Security FundsRead the Press Release
After a three-day trial, a federal jury today convicted a Broward County resident of stealing social security benefits years after her grandparents died.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), made the announcement.
Myriam Etienne, 49, of Pompano Beach, was convicted of ninety counts of theft of government funds, in violation of Title 18, United States Code, Section 641. Senior U.S. District Judge James I. Cohn presided over the trial. The defendant’s sentencing hearing is scheduled for April 5, 2018 at 9:30 a.m. At sentencing, the defendant faces up to ten years imprisonment on each count, a $250,000 fine as to each count and restitution.
According to evidence presented at trial, Etienne received Social Security Supplemental Security Income (“SSI”) benefits for her grandparents since 2004. The Social Security Administration administers numerous programs to provide for the material needs of individuals and their families, including SSI. SSI is a federal program that provides assistance to lower income individuals to meet basic food, shelter, medical and clothing needs. Monthly SSI benefits are paid to eligible individuals.
The evidence presented at trial revealed that these benefits were paid to the defendant’s grandmother and grandfather and the defendant controlled their funds as a representative payee. The SSI funds were direct deposited into a joint bank account the defendant shared with her deceased grandparents. The trial evidence revealed that the defendant’s grandfather died in Haiti in 2006 and the defendant’s grandmother died in Haiti in 2009. The defendant, however, kept receiving their SSI benefits and did not report the deaths to the Social Security Administration.
The evidence showed that the defendant signed representative payee accounting records, years after their deaths, verifying that the SSI money was being utilized for her grandparents food, shelter, clothing and medical treatment. After her grandmother’s and grandfather’s deaths, the defendant received approximately over $130,000 in SSI payments. The evidence at trial further revealed that the defendant made several mortgage payments and additional payments on her BMW X6 vehicle utilizing the SSI funds direct deposited into the joint account.
Mr. Greenberg commended the investigative efforts of the SSA-OIG, the U.S. Department of State and the FBI’s Legal Attaché in Port-au-Prince, Haiti. This case is being prosecuted by Assistant U.S. Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn Gang Leader Convicted of Murder for Hire and Marijuana TraffickingRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn returned guilty verdicts against Ronald Williams on five counts, including murder-for-hire conspiracy, conspiracy to commit obstruction of justice murder, and conspiracy to distribute marijuana. Williams, a leader of a street gang in Brooklyn known as the ‘90s Crew that engaged in large-scale marijuana trafficking, faces a mandatory sentence of life in prison when he is sentenced by United States District Judge LaShann DeArcy Hall.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Angel M. Melendez, Special Agent-in-Charge for the Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) New York, announced the verdict.
“Ronald Williams, a violent gang leader and marijuana trafficker, showed his utter disregard for human life when he accepted without hesitation a $5,000 contract to kill someone suspected of being an informant for federal law enforcement,” stated United States Attorney Donoghue. “The outstanding work by this Office, together with our law enforcement partners, prevented a murder from taking place and has made our streets safer as a result of the arrest, prosecution and conviction of the defendant.” Mr. Donoghue extended his grateful appreciation to the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement, the United States Marshal Service, and the New York City Police Department, for their assistance during the investigation.
“This conviction sets the record straight,” stated DEA Special Agent-in-Charge Hunt. “As a high level gang member, Ronald Williams will pay the price for his crimes. And this investigation demonstrates how DEA arrests those responsible for the by-products of drug trafficking: addiction, overdoses, crime, murders and violence.” SAC Hunt also thanked the U.S. Attorney’s Office EDNY, HSI, NYPD and ATF for their tireless efforts on this investigation.
“This drug pushing convicted felon was up to his old tricks, leading the notorious ‘90s Crew in Brooklyn. And, he put a dollar value on an individual’s life by agreeing to have the murder of a suspected informant carried out,” stated HSI Special Agent-in-Charge Melendez New York. “No one is invincible. We will continue working with the DEA and our other law enforcement partners to ensure that those who think they are above the law are brought to justice.”
The evidence at trial established that on April 26, 2013, DEA agents followed the co-defendant as he was making a delivery of marijuana to a customer in Brooklyn. The co-defendant spotted federal agents who were conducting surveillance and he fled, suspecting that his marijuana customer was an informant providing information to federal law enforcement. On April 30, 2013, the co-defendant called Williams and offered to pay him $5,000 to kill the individual he believed was a federal informant. Williams agreed to commit the murder and began planning the murder including selecting a gang member to carry out the contract. When the co-defendant told Williams that he would personally kill the suspected informant but wanted to have an alibi, Williams responded that it would better to pay someone else to kill the informant and “get it right.” However, federal agents were able to identify the potential victim, and the murder was not carried out.Williams was also convicted of being a felon in possession of a firearm and ammunition found during the execution of a search warrant at his residence, and using a firearm in connection with the charged drug trafficking crime. The items recovered during a search of Williams’ residence on East 96th Street in Brooklyn included three handguns and several pounds of marijuana, a drug ledger, a safe, and a police scanner. The co-defendant is awaiting trial.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nathan D. Reilly and Hiral D. Mehta are in charge of the prosecution.The Defendant:
RONALD WILLIAMS (also known as “Blackman,” “Jermaine,” “Leon Gordon,” and Marcus Reese”)
Age: 43
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-419 (LDH)
Bridgeport Man Pleads Guilty to Distributing Heroin to Seymour Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RICHARD ESTABA, also known as “Raw,” 23, of Bridgeport, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on July 9, 2017, Seymour Police and emergency medical personnel responded to a residence in Seymour on a report of a suspected drug overdose. In the bathroom of the residence, responders encountered a 29-year-old male who was not breathing and did not have a pulse. The male was pronounced deceased. Investigators seized the victim’s cellphone, multiple folds of suspected heroin marked with two different brand stamps, and other drugs. Subsequent cell phone analysis and witness interviews determined that ESTABA supplied the heroin consumed by the victim shortly before he was found dead.
The Connecticut Office of the Chief Medical Examiner determined that the victim’s death was caused by acute intoxication due to the combined effects of cocaine, etizolam, fentanyl, flubromazolam and heroin.
In August 2017, investigators made a controlled purchase of 10 wax folds of heroin from ESTABA. The folds were marked with a brand stamp that was found on some of the wax folds at the victim’s residence.
ESTABA was arrested on September 20, 2017. On that date, he possessed approximately 400 folds of heroin and $1,300 in cash.
Judge Underhill scheduled sentencing for April 18, 2018, at which time ESTABA faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Seymour and Shelton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bradenton Man Sentenced for Pretending to Be Blind to Steal Money from the Department of Veterans AffairsRead the Press Release
Tampa, Florida – United States District Judge Susan C. Bucklew today sentenced Doyle Mullins, Jr. (71, Bradenton) to nine months of home detention and five years of probation for theft of government funds. As part of his sentence, the Court also entered a money judgment against him in the amount of $583,485.74, which constitutes the proceeds of the theft from the Department of Veterans Affairs. Mullins pleaded guilty on October 16, 2017.
According to court documents, from approximately 1995 through 2017, Mullins, a veteran of the Vietnam War, repeatedly lied to the Department of Veterans Affairs by falsely claiming that he was totally and permanently blind and that he was unable to drive, work, or perform household tasks. As a result, for more than 20 years, Mullins has obtained thousands of dollars per month in recurring disability payments from the government, grants from the VA for a car and adaptive housing, and medical benefits payments for his wife. During the course of their investigation, law enforcement agents observed Mullins regularly driving, mowing his lawn, running errands, and banking.
This case was investigated by the Department of Veterans Affairs, Office of Inspector General. It was prosecuted by Assistant United States Attorney Megan K. Kistler.
Biloxi Man Sentenced to 151 Months in Prison for Illegal Possession of FirearmsRead the Press Release
Gulfport, Miss. – Dandre Dshon Evans, 34, of Biloxi, was sentenced today by U.S. District Judge Sul Ozerden to 151 months in federal prison for illegally possessing firearms as a felon, U.S. Attorney Mike Hurst announced.
On August 24, 2017, D’Iberville police officers responded to a domestic call at the home of Evans’ girlfriend and found Evans in possession of illegal drugs and a firearm, as well as a magazine to a second firearm belonging to Evans. A search was later conducted on Evans’ Biloxi residence pursuant to a search warrant, which uncovered two additional loaded firearms. Further evidence proved that Evans possessed additional firearms, to include an SKS rifle.
When arrested on these most recent charges, Evans was on state probation for drug offenses and was thus facing a possible 30-year sentence in federal prison. The court ordered that the 12½- year sentence be served consecutive to his state probation revocation sentence.
The case was investigated by the D’Iberville Police Department, Biloxi Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Annette Williams.
Biloxi Man Pleads Guilty to Drug ConspiracyRead the Press Release
Jackson, Miss. – Donte L. Evans, 43, of Biloxi, pled guilty today before United States District Judge Henry T. Wingate for his role in a conspiracy to distribute cocaine, announced U.S. Attorney Mike Hurst and Acting Special Agent in Charge Thomas M. Annello of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans.
This case is the result of an extensive investigation, dubbed AOperation Pipeline,@ which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of cocaine and marijuana. The distribution network encompassed the States of California, Texas and Mississippi. Evans received a quantity of cocaine for distribution from a co-conspirator that traveled from Jackson to Biloxi.
Evans will be sentenced by Judge Wingate on April 23, 2018, at 9:30 a.m. He faces a maximum penalty of 40 years in prison followed by four years of supervised release and a $5,000,000 fine.
This case was a joint investigation led by Homeland Security Investigations and the Mississippi Bureau of Narcotics, with assistance from the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Highway Patrol, the Jackson Police Department, and the Hinds County Sheriff’s Department. Assistant United States Attorney Erin Chalk is prosecuting the case.
Bay St. Louis Man Sentenced to 65 Months in Prison for Drug PossessionRead the Press Release
Gulfport, Miss – Tony Coles, 40, of Bay St. Louis, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden, to serve 65 months in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Stephen G. Azzam, Drug Enforcement Administration (DEA) New Orleans Field Division. Coles was also ordered to pay a $3,000 fine.
In 2015, the DEA began an investigation when Tony Coles was identified as a dealer of methamphetamine in the Hancock County, Mississippi area. During the course of this investigation, it was discovered that Coles received large amounts of methamphetamine and distributed it primarily in Bay St. Louis, Mississippi. On September 8, 2015, a DEA confidential source purchased 24.2 grams of methamphetamine from Coles in Pearlington, Mississippi. Coles pled guilty to the federal charge on October 24, 2017.
The case was investigated by the Hancock County Sheriff’s Department, Homeland Security Investigations, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
Augusta Woman Sentenced to Three Months for Stealing MailRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Amanda K. Wentzell, 26, of Augusta, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr., to three months in prison and three years of supervised release for stealing mail when she was a U.S. Postal Service (USPS) employee. She was also ordered to pay $510 in restitution. She pleaded guilty to the charge on May 10, 2017.
According to court documents, in February 2016, the defendant began working as a retail clerk in the post office in Temple, Maine. In July 2016, a Temple resident complained that his son had not received a prepaid debit card sent to him by U.S. mail. Investigation revealed that the defendant activated the debit card and used it to make two purchases totaling the $100 value of the debit card, she had been “rifling” mail, and between about April and August 2016, she took and opened several pieces of mail that were being processed by the post office. On August 9, 2016, the defendant resigned her USPS position.
The case was investigated by the Franklin County Sheriff’s Office and the USPS, Office of Inspector General.
Appalachian State University to Receive $1.5 Million Distribution Resulting from U.S. Attorney's Office Civil Forfeiture ActionRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced that $1,542,442.33 will be distributed to Appalachian State University (ASU) following successful civil forfeiture proceedings against money seized from bank accounts controlled by alleged fraudsters and money launderers who targeted the higher education institution.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte office.
“Today’s announcement is an example of the results we get when we use civil forfeiture laws to swiftly stop crime and provide financial relief to victims of fraud,” said U.S. Attorney Murray. “In this case, the FBI located and seized the stolen funds even before criminal investigative targets had been identified or a criminal case had been filed. Under these circumstances, civil forfeiture is the only area of law that enables law enforcement to swiftly obtain warrants to secure stolen funds, and to prevent the perpetrators of fraud from accessing them. Identifying and seizing ill-gotten gains and returning forfeited funds to victims is a priority for my office. I will use all of the tools at my disposal to make victims whole, and civil asset forfeiture is an invaluable tool in that arsenal.”
According to allegations contained in the civil forfeiture complaint, beginning in or around December 2016, one or more alleged fraudsters convinced ASU staff to forward over $1.9 million to one or more companies operated by them. According to court records, the fraudsters posed in emails as a legitimate construction company building ASU’s new health sciences facility. After receiving the funds, the alleged fraudsters used numerous bank wire transfers to launder the money among various companies.
Court records indicate that, upon discovery of the fraud, ASU notified the FBI and fully assisted in the investigation. The FBI ultimately located $1,542,442.33 of the money dispersed in multiple bank accounts and obtained forfeiture seizure warrants for it, preventing the wrongdoers from absconding with ASU’s funds. Following that, the U.S. Attorney’s Office filed a civil complaint in federal court. Upon conclusion of the civil forfeiture case, the Department of Justice’s Money Laundering and Asset Recovery Section authorized distribution of all forfeited funds to ASU.
In making today’s announcement, U.S. Attorney Murray commended the work of the FBI. U.S. Attorney Murray also thanks ASU officials for their prompt efforts to notify law enforcement of the fraud.
Assistant United States Attorney Benjamin Bain-Creed of the United States Attorney’s Office in Charlotte handled the proceedings. (Docket No. 5:17-cv-81)
Criminal and Civil Actions Collections in Fiscal Year 2017
In Fiscal Year 2017, the Western District of North Carolina (WDNC) collected $23,476,979.90 in criminal and civil actions. Of this amount, $4,719,016.01 was collected in criminal actions and $18,757,963.89 was collected in civil actions. Additionally, WDNC worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,216,680.36 in cases pursued jointly with these offices. Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Justice Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The U.S. Attorney’s Office, working with partner agencies and divisions, also collected $2,768,013 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“Every day, federal prosecutors and staff in the U.S. Attorney’s Office work hard to protect the citizens of the Western District of North Carolina and to ensure that criminals do not profit from their illegal activities,” said U.S. Attorney Murray. “Their diligent efforts enable us to achieve justice, recover taxpayer dollars, secure restitution for victims of federal crimes, and protect the public from fraud, waste and abuse.”
Aliens Indicted on Misuse of a Social Security Account Number, False Claim of United States Citizenship, Aggravated Identity Theft, Fraud and Misuse of Visas, Permits, and other Documents, and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging ELISEO HERNANDEZ-LORENZO, age 28, of Guatemala, with misuse of a Social Security account number, false claim of United States citizenship with intent to engage unlawfully in employment in the United States, aggravated identity theft, and fraud and misuse of visas, permits, and other documents. Additionally, a federal grand jury has returned an indictment charging LEOPOLDO GARCIA-ALTAMIRANO, age 56, of Mexico, with Unlawful and Illegal Alien in Possession of a Firearm.
If convicted of misuse of a Social Security account number, false claim of United States citizenship with intent to engage unlawfully in employment in the United States, aggravated identity theft, and fraud and misuse of visas, permits, and other documents, HERNANDEZ-LORENZO, found in Duplin County, would face maximum penalties of forty-nine years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Illegal and Unlawful Alien in Possession of a Firearm, GARCIA-ALTAMIRANO, found in New Hanover County, would face maximum penalties of ten years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by Homeland Security Investigations.
Albertville Man Indicted on Heroin Distribution and Gun ChargesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted an Albertville man on heroin distribution and gun charges, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
A three-count indictment filed in U.S. District Court charges MICHAEL DILLEN MOORE, 60, with possessing with intent to distribute heroin in Marshall County on April 8, 2016. The indictment also charges Moore with possessing a firearm, a Reck .22-caliber derringer, in furtherance of the drug-trafficking offense, and as a convicted felon in possession of a firearm. According to the indictment, Moore was convicted in Marshall County Circuit Court in 1983 for the felony offenses of third-degree burglary and second-degree forgery.
“Where there are illegal narcotics, there are illegal firearms,” Town said. “There’s no such thing as a non-violent drug dealer, and those who possess either guns or drugs illegally will find themselves in federal court.”
The maximum penalty for possession with intent to distribute heroin is 20 years in prison and a $1 million fine. The prison penalty for possessing a firearm in furtherance of a drug-trafficking offense is a minimum of five years. The maximum prison penalty for being a convicted felon in possession of a gun is 10 years.
ATF investigated the case, which Assistant U.S. Attorney Robert J. Becher Sr. is prosecuting.
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Additional Charges Filed Against Hazleton Man for Trafficking CocaineRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Rafael Lora, age 42, of Hazleton, Pennsylvania, was charged in a superseding indictment on January 23, 2018, with additional cocaine trafficking offenses.
According to United States Attorney David J. Freed, Lora and a co-defendant, Luis Santos, were charged on April 14, 2016, with conspiring to distribute cocaine, and with possessing with the intent to distribute cocaine. The conspiracy allegedly lasted throughout the month of March 2015.
The superseding indictment alleges that Lora possessed with the intent to distribute in excess of 500 grams of cocaine, and conspired to do the same. Lora also was charged with the unlawful use of a cellular telephone to facilitate the cocaine trafficking offenses, and with maintaining a drug premises.
Santos, who is scheduled to plead guilty on February 27, 2018, was not included in the superseding indictment.
The investigation was conducted by Homeland Security Investigations, with assistance from the U.S. Postal Inspection Service, Customs and Border Patrol, Pennsylvania State Police and the Hazleton Police Department. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The penalty for the most serious superseding offense is a minimum of five years and maximum of 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the judge also is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tuesday 23 January 2018
Zephyrhills Man Sentenced to Five Years for Viewing Child Sexual Abuse Videos and Images Using the “Dark Web”Read the Press Release
Tampa, Florida – United States District Judge Virginia M. Hernandez Covington has sentenced Joseph Michael Griffin (30, Zephyrhills) to five years in federal prison for accessing child sexual abuse videos and images over the Internet using the “dark web.” He was also sentenced to a 20-year term of supervised release and ordered to register as a sex offender. Griffin pleaded guilty on September 28, 2017.
According to court documents, FBI agents began an online undercover investigation to identify individuals who were using a particular website on the “dark web” to access and download images and videos depicting child pornography. Further investigation revealed that Griffin had accessed child pornography on this website between August 2014 and March 2015. FBI agents executed a search warrant at Griffin’s residence and, during a subsequent interview, Griffin admitted to viewing child pornography. A forensic examination of his laptop computer revealed that it contained at least 45 images and 17 videos depicting children being sexually abused.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Yukon Woman Sentenced to 36 Months in Prison for Stealing over $450,000 from Union’s Welfare FundRead the Press Release
Oklahoma City, Oklahoma – SUSAN MICHELLE TYSON, 51, of Yukon, Oklahoma, has been sentenced to 36 months in federal prison for stealing $467,352.43 from the Oklahoma Operating Engineers Welfare Plan, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to charges filed on June 12, 2017, Tyson worked as a bookkeeper in Oklahoma City for Zenith American Solutions, Inc., a company that managed assets owned by the Oklahoma Operating Engineers Welfare Plan. This Plan provided health and welfare benefits to participants whose employers contributed money under collective bargaining agreements with Local Union 627 of the International Union of Operating Engineers. Between July 2014 and January 2017, Tyson used her position to make 33 transfers, totaling $467,352.43, from the Plan’s bank account to her personal bank accounts. She also submitted duplicate invoices from Plan vendors SavRX and CVS CareMark to hide her fraud.
Tyson pleaded guilty to these charges on June 26, 2017.
Today Chief U.S. District Judge Joe Heaton sentenced Tyson to 36 months in prison, to be followed by three years of supervised release. Tyson was also order to pay full restitution. At today’s hearing, the court noted that Tyson’s fraud against the Plan was similar to a prior embezzlement case against her, which resulted in a 2000 conviction in Oklahoma City federal court. The court also considered the fact that Tyson stole from a third employer, which came to light during the 2000 investigation. Furthermore, the court noted that her dishonest behavior when interacting with the U.S. Probation Office in this case, which resulted in her incarceration pending sentencing, demonstrated her lack of respect for the law.
This case is the result of an investigation by the Oklahoma City Economic and Identity Crimes Task Force, which includes the United States Secret Service, the Federal Bureau of Investigation, IRS–Criminal Investigations, Homeland Security Investigations, U.S. Postal Inspection Service, Oklahoma Highway Patrol, the Oklahoma City Police Department, the Edmond Police Department, the Moore Police Department, and the Norman Police Department. Assistant U.S. Attorneys Brandon Hale and William E. Farrior prosecuted the case.
Wood County man sentenced to federal prison for possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Wood County man who stole mail in November 2016 was sentenced yesterday to six months in federal prison, announced United States Attorney Mike Stuart. Richard Thomas Morris, Jr., 38, of Washington, previously pleaded guilty to possession of stolen mail. He was also ordered to pay a $1,000 fine and $50 in restitution. U.S. Attorney Stuart commended the efforts of the United States Postal Inspection Service and the United States Postal Service, Office of Inspector General, for the investigation.
Morris was a relief driver for a United States Postal Service contractor whose job it was to collect outgoing mail from post offices along a rural route between Ravenswood and Parkersburg. On November 17, 2016, Morris was stopped at the Belleville Post Office by law enforcement officials with the United States Postal Inspection Service. Morris consented to a search of the truck he was driving, and the search turned up a piece of mail addressed to a home in St. Mary’s. The mail had been opened and contained a greeting card. Morris had stolen the greeting card, as well as $50.00 in cash that had been put inside the card by the sender.
Assistant United States Attorneys Eumi L. Choi and R. Gregory McVey handled the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
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Woman Pleads Guilty to Lying about Former Husband’s Whereabouts During Fugitive InvestigationRead the Press Release
BOSTON – The ex-wife of a man who was a fugitive for 20 years until his arrest in April 2017, has pleaded guilty to lying about the whereabouts of her former spouse.
Cecily Sturge, 70, of Delray Beach, Fla., pleaded guilty in federal court today to making a materially false statement to a federal agent about the whereabouts of her ex-husband, Scott J. Wolas, who was a fugitive for 20 years in connection with a New York investment scheme until his arrest in April 2017. Wolas, who is also charged in federal court in Boston with operating a fraudulent $1.7 million real estate investment scheme in Quincy, remains in custody while his case is pending.
U.S. District Court Chief Judge Patti B. Saris scheduled Sturge’s sentencing for April 18, 2018.
According to court documents, a federal investigation into Wolas began in early September 2016 when Wolas fled Massachusetts after defrauding at least 19 investors of about $1.7 million in connection with his purported efforts to develop two Quincy properties, including the site of the former Beachcomber Bar. Sturge was interviewed by law enforcement on Nov. 17, 2016, at which time she stated that she had not been in contact with her ex-husband for approximately 15 years. Sturge continued to say that this was so, despite evidence of contact between her cell phone and one known to belong to Wolas that demonstrated more recent communication between the two.
After further investigation, Wolas was arrested on April 7, 2017, at a condominium he was renting in Delray Beach, Fla. Investigators learned that Wolas had first rented a room in the condo from Nov. 12 through Nov. 21, 2016, through an online rental website account in the name of Cecily Sturge. Messages exchanged between the condo owner and Sturge included a photo of Sturge and messages claiming that Wolas (using the name Cameron Sturge) was Sturge’s brother and a retired paleontologist in need of a place to stay. The owner of the condo told authorities that Sturge and Wolas arrived at the condo together in the same car on Nov. 12, 2016, five days before Sturge’s interview with law enforcement.
Sturge was divorced from Wolas in 2001 by default judgment in Palm Beach County, Fla. In February 2017, Sturge filed a petition to modify the judgment in order to obtain the contents of Wolas’ retirement account, which had a balance of approximately $647,000, from the New York law firm where he worked prior to being indicted in 1997 by New York authorities. In pleadings filed in February and March 2017 in that matter, Sturge swore that Wolas’s whereabouts were unknown to her, despite telephone records showing frequent contact between the two. Bank surveillance photos also showed the two of them together at a Florida bank where some of the pleadings were notarized. In addition, copies or drafts of documents filed in the Florida proceeding were found in the room and on a USB drive taken from the room where Wolas was arrested. The United States has obtained a court order freezing the retirement account until the resolution of the criminal proceedings.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the US sentencing guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Quincy Police Chief Paul Keenan, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Criminal Division is prosecuting the case.
Wichita Man Sentenced for Sexual Abuse on McConnell Air Force BaseRead the Press Release
WICHITA, KAN. - A Wichita man who lived in base housing at McConnell Air Force Base was sentenced Monday to 30 years in federal prison for sexually abusing two teenage girls, U.S. Attorney Tom Beall said.
Random Shane Smith, 38, Wichita, Kan., pleaded guilty to two counts of aggravated sexual abuse. In his plea, Smith admitted using force to make the two 16-year-old victims have sex with him. The assaults took place in base housing.
Beall commended the FBI, Air Force OSI and Assistant U.S. Attorney Jason Hart for their work on the case.
West Boylston Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
BOSTON – A West Boylston man pleaded guilty today in federal court in Worcester to his role in a methamphetamine conspiracy.
Brian Zukowski, 35, pleaded guilty to one count of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 19, 2018. Zukowski was arrested and charged in June 2017.
Between July 2016 and June 2017, Zukowski acquired methamphetamine from various suppliers, including, allegedly, Adam Germano, of Worcester. Zukowski purchased methamphetamine for his own use and for resale to others, including individuals in Massachusetts and Florida, where Zukowski spent a significant amount of time. In September 2016, while in Florida, Zukowski arranged for multiple shipments of methamphetamine to Florida. Zukowski also allegedly received a portion of methamphetamine from Germano in exchange for making travel arrangements for Germano to go to Texas to retrieve a supply of methamphetamine.
Germano has pleaded not guilty and has a hearing scheduled for March 5, 2018.
Zukowski faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. 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; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Shelly Binkowski, Special Agent in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Weare Resident Sentenced to 18 Months in Prison for Unlawful Possession of FirearmsRead the Press Release
CONCORD, N.H. - Jody Swett, 38, of Weare, New Hampshire, has been sentenced to an 18- month term of imprisonment for possessing multiple firearms and ammunition following convictions for crimes of domestic violence, announced Acting United States Attorney John J. Farley.
According to court records, on April 30, 2015, Swett pleaded guilty to a crime that involved domestic violence in Nashua District Court. On October 14, 2016, Swett pleaded guilty in the same court to another crime that involved domestic violence. As a result of the convictions, it was unlawful under federal law for Swett possess firearms and ammunition.
Nevertheless, in a private transaction that occurred in Manchester in July 2016, Swett bought a Ruger pistol for $375. In another private transaction that occurred in Hillsborough in October 2016, Swett bought a shotgun for $250 and a bulletproof vest. Additionally, during a search of Swett’s residence in Weare on February 10, 2017, the Federal Bureau of Investigation seized two .22 caliber rifles, a 9 millimeter pistol, and more than 100 rounds of ammunition.
On July 17, 2017, Swett pleaded guilty to three counts of possessing firearms following a conviction for a crime of domestic violence. After serving his sentence, Swett will be on supervised release for a period of 3 years. The firearms and ammunition were forfeited to the United States.
“It is vital to keep firearms out of the hands of criminals who present a risk of violence,” said Acting U.S. Attorney Farley. “Those who have committed acts of domestic violence are prohibited from possessing guns. We will continue to work with our law enforcement partners to prosecute those who possess firearms unlawfully and to protect the safety of the community.”
“This case is a testament to the priority we place on addressing violent crimes to keep our communities safe. Mr. Swett's actions in illegally possessing firearms shortly after his convictions for domestic crimes is a clear violation of the law,” said Harold H. Shaw, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Boston Division. “The FBI will continue to collaborate with the ATF to prevent gun offenses and protect the public from dangerous criminals.”
The FBI and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Assistant United States Attorney Robert Kinsella prosecuted the case.
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Watertown Man Pleads Guilty to Conspiracy Offense Related to Bribery SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that KEVIN DUNN, 49, of Watertown, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to a conspiracy offense related to a bribery scheme.
According to court documents and statements made in court, DUNN is the president of Delmar Electrical Contractors in Watertown. Javed Choudhry was employed by a construction company in the Stamford area. Between approximately 2011 and 2014, DUNN paid between $200,000 to $300,000 in bribes to Choudhry, either directly or through another contractor, to receive approximately $21 million in contracts on construction projects in Stamford.
DUNN pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on April 16, 2018.
DUNN is released on a $150,000 bond.
On May 16, 2017, Choudhry, of Glastonbury, pleaded guilty to conspiracy and tax offenses stemming from this scheme. He awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waldorf Man Pleads Guilty to Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland –Carlos DeAngelo Bell, 30, of Waldorf, Maryland pleaded guilty today to 10 counts of Sexual Exploitation of Minors for the Purpose of Producing Child Pornography.
The plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Charles County State’s Attorney Anthony B. Covington, Sr.; Sheriff Troy D. Berry of the Charles County Sheriff’s Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore.
According to the plea agreement, from the period of January 1, 2014 to December 22, 2016, Bell used and coerced minors to engage in sexually explicit conduct for the purpose of producing child pornography. Bell is charged with committing this offense against ten minors. During the relevant period, Bell was employed as an Instructional Assistant in Charles County Public Schools, and a track and field coach at a Charles County Public High School.
Under the terms of the plea agreement, attorneys for the Unites States will recommend that Bell serve a term of imprisonment of 150 years. United States District Judge Paul W. Grimm has scheduled sentencing for March 27, 2018.
Acting United States Attorney Stephen M. Schenning thanked the Charles County State’s Attorney’s Office, the Charles County Sheriff’s Office, the Maryland State Police, and HSI. Mr. Schenning also commended Assistant United States Attorneys Timothy F. Hagan and Joseph R. Baldwin of the United States Attorney’s Office for the District of Maryland, who are prosecuting this case.
Volunteer Wrestling Coach in Rockland County Sentenced to 13 Years in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MARCUS STROUD, 20, was sentenced to 13 years in prison by United States District Judge Cathy Seibel for his receipt of files containing sexually explicit images of a minor. The sentencing today followed STROUD’s guilty plea on June 5, 2017.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Marcus Stroud’s crime is the nightmare of every parent. Stroud used social media platforms to prey upon and exploit a teenage boy for his own sexual gratification. As today’s sentencing underscores, we will continue to use every tool available to law enforcement to prosecute and punish those who sexually exploit children.”
According to documents filed in this case and statements made in related court proceedings:
In late December 2015, STROUD met Victim-1 at a youth wrestling tournament in Rockland County, New York. STROUD and Victim-1 connected online on SnapChat and Instagram. Thereafter, Victim-1 connected with a SnapChat user using the account name “thechsenpug.” (“Pug”). In fact, unbeknownst to Victim-1, STROUD was Pug. Purporting to be Pug, STROUD sent Victim-1 nude photos of a female and requested nude photos in return. After Victim-1 provided several nude photos, STROUD, purporting to be Pug, told Victim-1 that Pug would release the photos on social media unless Victim-1 provided a video of Victim-1 engaging in a sexual act with another person.
In January 2016, STROUD told Victim-1 that he would be willing to help Victim-1 by performing the sexual act with Victim-1 to prevent the photos from being released. On or about February 20, 2016, STROUD told Victim-1 that he had been notified that nude photos of Victim-1 had been posted on an online web page. STROUD told Victim-1 that he had been able to delete the photos. STROUD told Victim-1 that they should just do the sexual act and get it over with. Later that day, STROUD met with Victim-1 in Rockland County, New York, engaged in sexual activity with Victim-1, and recorded it. STROUD told Victim-1 that he would send the video to the female who had requested it and would put a virus on the video so that, when she opened it, STROUD would be able to take control of her phone and delete Victim-1’s photos.
In sentencing STROUD, Judge Seibel underscored the “predatory” nature of STROUD’s offense. In addition to the prison term, STROUD, 20, was sentenced to 15 years of supervised release.
Mr. Berman praised the efforts of the Federal Bureau of Investigation, the Clarkstown Police Department, and the Rockland County District Attorney’s Office in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
Virginia Business Owners Convicted of Tax EvasionRead the Press Release
A jury in the Western District of Virginia convicted two business owners of tax evasion and conspiring to structure currency transactions, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the evidence presented at trial, Jeffrey and Karen Dalton owned Blue Ridge Stainless Inc. (BRS), a subcontracting business that provided labor to renovate large retail department and grocery stores. The Daltons operated BRS out of their home in Hillsville, Virginia. The Daltons filed their 2009 through 2014 personal tax returns with the Internal Revenue Service (IRS) reporting the income earned from BRS, but failed to pay the taxes, penalties, and interest owed. Despite an IRS revenue officer repeatedly contacting the Daltons over a period of years about their delinquent taxes and pending IRS liens, the Daltons refused to pay their outstanding tax liabilities, used nominees to conceal their ownership of property, and filed false documents with the IRS. After the IRS levied the Daltons’ personal bank accounts, they used funds from the BRS business bank account to start a cattle business and pay their children’s wedding expenses.
The evidence at trial also proved that during a six-month period in 2015 the Daltons repeatedly withdrew cash from BRS’s business bank account in amounts less than $10,000 to evade federal bank-reporting requirements, thereby structuring more than $250,000 in withdrawals.
U.S. District Court Judge James P. Jones scheduled sentencing for April 24. Jeffrey and Karen Dalton face a statutory maximum sentence of five years in prison on the tax evasion and conspiracy charges. They also face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and Sean Beaty of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
U.S. Attorney's Office announces Lisa Johnston as First Assistant United States AttorneyRead the Press Release
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia announced today that Lisa G. Johnston has been named First Assistant United States Attorney.
“Lisa Johnston was not given this opportunity – she earned it,” said United States Attorney Stuart. “She is tough on crime and she knows how to lead a team, which is why she will be advising me every step of the way as we crack down on drug trafficking, corruption, and predators, and ensure that public safety is our driving goal.”
Johnston’s experience includes, but is not limited to:
- 30 years working as an Assistant United States Attorney in West Virginia U.S. Attorney’s Offices in both the Northern and Southern Districts. She began working in the Southern District in 2006 and is extremely familiar with the office, its personnel, and its operations;
- Serves as the Project Safe Childhood Coordinator for the Southern District of West Virginia and provides guidance to other attorneys in the office who handle child pornography cases. She is considered to be very knowledgeable in this area and is often contacted by state prosecutors seeking her advice in these types of cases;
- Established, developed and led the Crimes Against Children Task Force in the Northern District of West Virginia, which was comprised of federal, state and local law enforcement agencies, as well as victim advocate groups; and
- Was detailed to the Bureau of Alcohol, Tobacco, Firearms and Explosives, where she provided guidance to agents and inspectors.
“I am excited by this step – one of many I am taking to address the needs of law enforcement in this district,” said U.S. Attorney Stuart. “I have a sense of urgency in my new role as I fight to protect and defend the people of West Virginia. Lisa Johnston shares my vision and sense of urgency to take bold action to deliver results for the people of our district. I have great confidence in Lisa in helping spearhead my team.”
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U.S. Attorney Mike Stuart issues statement on the passing of Huntington Police Chief Joe CiccarelliRead the Press Release
CHARLESTON, W.Va. – The United States Attorney's Office for the Southern District of West Virginia is filled with heavy hearts at the passing of our friend and colleague, Huntington Police Chief Joe Ciccarelli.
“We are deeply saddened by the passing of Huntington Police Chief Joe Ciccarelli. He spent his distinguished public service career tirelessly working to keep our communities safe,” said United States Attorney Mike Stuart. “Chief Ciccarelli was a hero and a champion of law enforcement. He exemplified the leadership and commitment to justice that all of us should strive to achieve. His passing is a loss to everyone who was privileged enough to have known and worked with him, and our thoughts and prayers are with his family.”
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Two defendants appear in federal court in Huntington on drug chargesRead the Press Release
HUNTINGTON, W.Va. – Two defendants appeared in federal court in Huntington yesterday for drug crimes, announced United States Attorney Mike Stuart. Lurduea Appling, 37, of Detroit, previously pleaded guilty to distribution of oxycodone, and was sentenced to two years and 10 months in federal prison. In a separate prosecution, Joseph Mitchell, 44, of Huntington, pleaded guilty to possession with intent to distribute heroin.
U.S. Attorney Stuart commended the investigative efforts of the Drug Enforcement Administration and the West Virginia State Police Violent Crime and Drug Task Force in the Appling case. He also commended the Marshall University Office of Public Safety and the Huntington FBI Drug Task Force for the investigation of Mitchell.
On March 20, 2017, agents with the Drug Enforcement Administration and the West Virginia State Police Violent Crime and Drug Task Force used a confidential informant to make a controlled buy of oxycodone from Appling. The drug deal took place at 1342 15th Street in Huntington. Appling provided the informant with the oxycodone in exchange for $3,750 in cash. As part of the plea agreement, Appling admitted to all the drug trafficking activity charged in the indictment.
In a separate prosecution, on August 2, 2017, an officer with the Marshall University Office of Public Safety conducted a traffic stop of Mitchell on the 500 block of 20th Street in Huntington. Upon searching the vehicle, the officer discovered approximately 11.5 grams of suspected heroin and a digital scale. Mitchell admitted that he intended to sell the heroin. As part of the plea agreement, Mitchell also admitted to all the other drug trafficking activity charged in the indictment. Mitchell faces up to 20 years in federal prison when he is sentenced on April 23, 2018.
Assistant United States Attorney Stephanie S. Taylor is in charge of these prosecutions. The hearings were held before United States District Judge Robert C. Chambers.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Parkersburg men plead guilty to federal heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – Two Parkersburg men pleaded guilty today to a federal heroin conspiracy, announced United States Attorney Mike Stuart. Joseph Reeder-Shaw, 32, and Bernard Spann, 34, entered their guilty pleas to conspiracy to distribute 100 grams or more of heroin. U.S. Attorney Stuart commended the collaborative investigative efforts of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Parkersburg Drug Task Force, the West Virginia State Police, the Wood County Sheriff’s Department, and the Police Departments of the cities of Parkersburg, Vienna, and Williamstown.
Reeder-Shaw and Spann admitted to their respective involvement with several other individuals in distributing heroin at various locations throughout the Parkersburg area. In addition, Reeder-Shaw admitted to arranging sales of heroin to a confidential informant working with the Parkersburg Drug Task Force and the FBI on numerous occasions between November 2016 and November 2017. Reeder-Shaw further admitted involvement in the distribution of between one and three kilograms of heroin, while Spann, who did not join Reeder-Shaw and others until October 2017, admitted to distributing between 100 and 400 grams of heroin.
Both Reeder-Shaw and Spann face at least five and up to 40 years in federal prison when they are sentenced on April 19, 2018.
Debra Martin, a codefendant involved in the same conspiracy, previously pleaded guilty to conspiracy to distribute 100 grams or more of heroin and also faces at least five and up to 40 years in federal prison when she is sentenced on April 5, 2018.
Assistant United States Attorney John Frail is in charge of these prosecutions. The plea hearings were held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Indian Citizens and India-based Corporation Plead Guilty to Conspiring to Smuggle Counterfeit CigarettesRead the Press Release
Abhishek Shukla and Harish Shabhai Panchal, both citizens of India, entered guilty pleas, along with the India-based company, Jubilee Tobacco Industries Corp., to conspiring to smuggle counterfeit cigarettes into the United States.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Peter H. Kuehl, Acting Special Agent in Charge, U.S. Food & Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
All three defendants pled guilty to conspiring with each other, with the intent to defraud and mislead, sell and cause the sale and dispensing of a counterfeit tobacco product (cigarettes), the containers and labeling of which bore the trade name and marks of the American brand of Newport cigarettes, a tobacco product listed with the FDA pursuant to Title 21, United States Code, Section 387(e)(i)(1), (approximately 68,600 cartons of cigarettes), while knowingly using a counterfeit mark on and in connection with such cigarettes, the use of which marks was likely to cause confusion, to cause mistake, and to deceive. The counterfeit marks were substantially indistinguishable from the marks of the United States domestic manufacturer of Newport brand cigarettes, which marks were then in use by and registered to that manufacturer on the principal register of the United States Patent and Trademark Office, all in violation of Title 18, United States Code, Section 371.
According to court records, including a Joint Factual Statement submitted by the parties, beginning in March 2015 and continuing through August 16, 2017, the defendants initiated contact with an individual cooperating with FDA-OCI, offering counterfeit cigarettes for sale. Through internet negotiations, an agreement was reached for a 20-foot container filled with counterfeit Newport brand cigarettes to be shipped from India to Miami. Payment for the shipment was made in installments through international wire transfers to bank accounts in India and in Dubai, United Arab Emirates. On November 1, 2016, the container arrived and was seized at the Port of Miami with the assistance of U. S. Customs and Border Protection Officers. If distributed in the State of Florida, the un-taxed importation would have an approximate value of $1.2 million. Analysis conducted by FDA’s Forensic Chemistry Center determined that the cartons, packs, and cigarettes were all counterfeit.
Within two weeks of the arrival, the coconspirators sought out FDA-OCI undercover agents offering another shipment, twice as large. By April 2017, deposits totaling $55,000 had been made for more counterfeit Newport cigarettes. On June 9, 2017, the container arrived at the Port of Miami and was again seized with the assistance of Customs and Border Protection Officers, and turned over to FDA-OCI Special Agents. If distributed in the State of Florida, the un-taxed importation would have an approximate value of $3.2 million.
According to acts described in the conspiracy charge, Shukla and Panchal traveled to Miami in August 2017 to meet with the undercover agents to promote further business dealings. During the recorded meeting, they advised the agents that they had been partners for twelve years and personally oversaw the production of all the products being offered. They also assured the agents that they could counterfeit any American-made menthol cigarette with no problem, as well as other trademarked brands, and that they could produce tobacco blends, which would closely match the legitimate product.
Shukla and Panchal each face potential prison sentences of up to five years imprisonment. Additionally, they face possible fines of up to $250,000, followed by supervised release of up to five years. Jubilee faces a fine of up to $500,000. In its Plea Agreement, Jubilee agreed to forfeit $300,000, to the United States. Sentencing in this case is scheduled for February 12, 2018, at 2:00 p.m. before U.S. District Judge Kathleen M. Williams.
Mr. Greenberg commended the investigative efforts of FDA OCI, ICE-HSI and BSO, for their assistance with this long-term investigation. Mr. Greenberg also thanked U.S. Customs and Border Protection for their support. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Former Tuskegee Police Lieutenants Charged with Civil Rights Offenses for Assaulting ArresteeRead the Press Release
The Justice Department today announced that two former Tuskegee Police Department lieutenants, Alex Huntley, 53, and Darian Locure, 44, have been indicted by a federal grand jury for their roles in the beating of an arrestee and an attempted cover-up.
The five-count indictment charges that on or about Dec. 24, 2014, Huntley physically assaulted an arrestee, while Locure willfully failed to intervene to stop Huntley’s assault. The assault caused the arrestee to suffer bodily injuries.
Huntley and Locure are also charged with directing and encouraging other Tuskegee Police Department officers and recruits who witnessed the assault to keep it a secret. Finally, the indictment charges that Huntley gave false testimony under oath about the assault in a state court proceeding regarding criminal charges against the arrestee.
This case is being investigated by the Federal Bureau of Investigation. The Alabama State Bureau of Investigation has also assisted the investigation. The matter is being prosecuted by Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division and Assistant United States Attorney Denise Simpson of the United States Attorney’s Office for the Middle District of Alabama.
The charges contained in this indictment are simply accusations, and not evidence of guilt. The defendants are presumed innocent unless proven guilty.
Two Former Tuskegee Police Lieutenants Charged with Civil Rights Offenses for Assaulting ArresteeRead the Press Release
Montgomery, Alabama – The Justice Department today announced that two former Tuskegee Police Department lieutenants, Alex Huntley, 53, and Darian Locure, 44, have been indicted by a federal grand jury for their roles in the beating of an arrestee and an attempted cover-up.
The five-count indictment charges that on or about December 24, 2014, Huntley physically assaulted an arrestee, while Locure willfully failed to intervene to stop Huntley’s assault. The assault caused the arrestee to suffer bodily injuries.
Huntley and Locure are also charged with directing and encouraging other Tuskegee Police Department officers and recruits who witnessed the assault to keep it a secret. Finally, the indictment charges that Huntley gave false testimony under oath about the assault in a state court proceeding regarding criminal charges against the arrestee.
This case is being investigated by the Federal Bureau of Investigation. The Alabama State Bureau of Investigation has also assisted the investigation. The matter is being prosecuted by Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division and Assistant United States Attorney Denise Simpson of the United States Attorney’s Office for the Middle District of Alabama.
The charges contained in this indictment are simply accusations, and not evidence of guilt. The defendants are presumed innocent unless proven guilty.
Two Former Employees of House Member Plead Guilty to Charges in Cyberstalking CaseRead the Press Release
WASHINGTON – Two former staff employees of a member of the U.S. House of Representatives pled guilty today to charges stemming from the circulation of private, nude images and videos of the member and the member’s spouse, announced U.S. Attorney Jessie K. Liu and Matthew R. Verderosa, Chief of the United States Capitol Police.
Juan R. McCullum, 36, of Washington, D.C., and Dorene Browne-Louis, 45, of Upper Marlboro, Md., entered the guilty pleas in the U.S. District Court for the District of Columbia. McCullum pled guilty to two federal cyber-related charges and two District of Columbia offenses, including conspiracy to disclose sexual images and attempted first-degree unlawful publication of a sexual image. Browne-Louis pled guilty to one federal cyber charge and the District of Columbia offense of conspiracy to disclose sexual images. The Honorable John D. Bates scheduled McCullum’s sentencing for March 8, 2018 and scheduled Browne-Louis’s sentencing for April 23, 2018. Each of the federal charges carries a statutory maximum of a year in prison and each District of Columbia offense carries up to 180 days in jail.
McCullum’s plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of one year and 361 days of incarceration, with all but one year and a day suspended on the condition that he successfully completes two years of supervised probation. During his probation, McCullum would be required to perform 100 hours of community service.
Both defendants were indicted in July 2017 following an investigation by the United States Capitol Police.
According to statements of offense filed as part of the guilty plea, McCullum worked from April 2015 until June 2016 in the House member’s legislative office in Washington, D.C. Browne-Louis worked in the same office from January 2015 until April 2016.
According to the documents, during the course of his employment, McCullum offered in March 2016 to assist the House member in repairing the member’s malfunctioning, password-protected iPhone by taking the device to a local Apple store. The House member provided McCullum with the device solely to have it repaired. The House member later provided the password so that the device could be unlocked by the Apple store solely for the purpose of having the iPhone repaired. McCullum was not given permission to take, copy, or distribute any of the contents of the iPhone. The iPhone contained the private, nude images and videos.
In July 2016, the documents state, after McCullum left the House member’s staff, he engaged in a course of conduct that included creating a Hotmail account and a Facebook social media account, using a fictitious name, to distribute and post the private, nude images and videos. In addition, he made Browne-Louis aware that he was in possession of the images from the iPhone. Further, McCullum encouraged others on social media to redistribute the private, nude images and videos in the member’s congressional district. Browne-Louis assisted by providing McCullum with e-mail addresses and other contact information to distribute the images. Browne-Louis also distributed one of the private, nude images to a person who was working on the campaign of a challenger to the member’s primary election. McCullum and Browne-Louis understood their actions did cause, and were likely to cause, emotional harm to the House member and spouse, as well as the member’s re-election, the plea documents state.
In announcing the pleas, U.S. Attorney Liu and Chief Verderosa commended the work of those who investigated the case from the United States Capitol Police. They also acknowledged the efforts of those who assisted with the case at the U.S. Attorney’s Office, including former Assistant U.S. Attorney Natalia Medina, Criminal Investigator John Marsh, Paralegal Specialists Bianca Evans, Diane Brashears, and Matthew Ruggiero, and Litigation Technology Specialists Leif Hickling, Thomas Royal, and Paul Howell. Finally, they commended the work of Assistant U.S. Attorneys Tejpal S. Chawla, Youli Lee, and Veronica Jennings, who investigated and prosecuted the case.
Two California Urologists Agree to Pay More than $1 Million to Settle False Claims Act Allegations Related to Radiation Therapy ReferralsRead the Press Release
Drs. Aytac Apaydin and Stephen Worsham, urologists based in Northern California, will pay $1.085 million to resolve allegations that they submitted and caused the submission of false claims to Medicare for image guided radiation therapy (IGRT) that was referred and billed in violation of the physician self-referral law (commonly known as the “Stark Law”) and the Anti-Kickback Statute, the Department of Justice announced. Drs. Apaydin and Worsham own and operate Salinas Valley Urology Associates (SVUA) in Salinas, California. They also owned Advance Radiation Oncology Center (AROC), located in Salinas, California, which dissolved in 2016. IGRT is used to treat patients who are diagnosed with cancer, including prostate cancer patients.
“Health care laws prevent health care providers, and physicians in particular, from referring Medicare services in exchange for financial incentives,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to enforcing those laws and preventing physicians from improperly injecting profit motives into their decisions about patient care.”
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids health care providers from billing Medicare for certain services referred by physicians who have a financial relationship with the entity performing the service, unless an exception applies.
“The United States Attorney’s Office is committed to protecting the residents of the district from unlawful financial schemes that compromise patient care,” said Acting U.S. Attorney Alex G. Tse. “Patients who use our federal health care programs deserve care that is free from fraud. The few doctors who choose to engage in this type of conduct not only undermine the system, but impugn the many honest and dedicated medical professionals who serve our community.”
The United States alleged that Drs. Apaydin and Worsham knowingly caused eight urologists in Monterey and Salinas, California (the “Lessee Urologists”) to violate the Anti-Kickback Statute and the Stark Law. Drs. Apaydin and Worsham allegedly solicited the Lessee Urologists to enter into lease agreements with AROC under which the Lessee Urologists could bill for, and thereby profit from, their referrals of IGRT performed at AROC. The United States also alleged that Drs. Apaydin and Worsham violated the Stark Law by improperly billing Medicare for their own IGRT referrals to AROC, despite the fact that AROC and SVUA were separate entities and their financial arrangements did not comply with any exceptions to the Stark Law.
The Lessee Urologists previously entered into settlement agreements pertaining to their IGRT claims, under which they collectively agreed to pay the United States $900,000.
The United States’ investigation was a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of California, and the Department of Health and Human Services Office of Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Two California Urologists Agree to Pay More Than $1 Million to Settle False Claims Act Allegations Related to Radiation Therapy ReferralsRead the Press Release
SAN FRANCISCO – Drs. Aytac Apaydin and Stephen Worsham, urologists based in Northern California, will pay $1.085 million to resolve allegations that they submitted and caused the submission of false claims to Medicare for image guided radiation therapy (IGRT) that was referred and billed in violation of the physician self-referral law (commonly known as the “Stark Law”) and the Anti-Kickback Statute, the Department of Justice announced today. Drs. Apaydin and Worsham own and operate Salinas Valley Urology Associates (SVUA) in Salinas, California. They also owned Advance Radiation Oncology Center (AROC), located in Salinas, California, which dissolved in 2016. IGRT is used to treat patients who are diagnosed with cancer, including prostate cancer patients.
“The United States Attorney’s Office is committed to protecting the residents of the district from unlawful financial schemes that compromise patient care,” said Acting U.S. Attorney for the Northern District of California Alex G. Tse. “Patients who use our federal health care programs deserve care that is free from fraud. The few doctors who choose to engage in this type of conduct not only undermine the system, but impugn the many honest and dedicated medical professionals who serve our community.”
“Health care laws prevent health care providers, and physicians in particular, from referring Medicare services in exchange for financial incentives,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to enforcing those laws and preventing physicians from improperly injecting profit motives into their decisions about patient care.”
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids health care providers from billing Medicare for certain services referred by physicians who have a financial relationship with the entity performing the service, unless an exception applies.
The United States alleged that Drs. Apaydin and Worsham knowingly caused eight urologists in Monterey and Salinas, California, (the “Lessee Urologists”) to violate the Anti-Kickback Statute and the Stark Law. Drs. Apaydin and Worsham allegedly solicited the Lessee Urologists to enter into lease agreements with AROC under which the Lessee Urologists could bill for, and thereby profit from, their referrals of IGRT performed at AROC. The United States also alleged that Drs. Apaydin and Worsham violated the Stark Law by improperly billing Medicare for their own IGRT referrals to AROC, despite the fact that AROC and SVUA were separate entities and their financial arrangements did not comply with any exceptions to the Stark Law.
The Lessee Urologists previously entered into settlement agreements pertaining to their IGRT claims, under which they collectively agreed to pay the United States $900,000.
Assistant U.S. Attorney Kimberly Friday is handling this matter with assistance from Tina Louie and Garland He. The United States’ investigation was a coordinated effort by the U.S. Attorney’s Office for the Northern District of California, the Civil Division of the Department of Justice, and the Department of Health and Human Services Office of Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Three defendants plead guilty in federal court in CharlestonRead the Press Release
CHARLESTON, W.Va. – Three defendants pleaded guilty today in federal court in Charleston, announced United States Attorney Mike Stuart. Roger Lee Lemons, 23, of Charlotte, entered his guilty plea to distribution of hydromorphone. In a separate prosecution, Laron Safford, 41, of Bluefield, pled guilty to being a felon in possession of a firearm. In another separate prosecution, Tomas Mateo, 41, entered his guilty plea to possession of a weapon by a federal inmate.
U.S. Attorney Stuart commended the Southern Regional Drug and Violent Crime Task Force for the investigations of Lemons and Safford. He also commended the Federal Bureau of Prisons for the investigation of Mateo.
Lemons admitted that on October 31, 2014, he sold hydromorphone pills to a confidential informant working with law enforcement. The drug deal took place in Princeton. Lemons further admitted that he sold hydromorphone pills on three other occasions. Lemons faces up to 20 years in federal prison when he is sentenced on May 1, 2018.
In a separate prosecution, Safford admitted that on September 14, 2017, he possessed two pistols at his residence in Bluefield. Safford was prohibited from possessing any firearms under federal law because of a 1998 felony drug conviction in McDowell County and a 2004 felony drug conviction in Iredell County, North Carolina. Safford also admitted that he sold cocaine to a confidential informant working with law enforcement on four occasions in September 2017. Safford faces up to 10 years in federal prison when he is sentenced on May 1, 2018.
In another separate prosecution, Mateo, an inmate at the Federal Correctional Institution at McDowell, admitted that on June 26, 2017, he possessed a handcrafted weapon commonly known as a “shank” in his shoe. The weapon was a piece of plastic, approximately six inches in length and sharpened to a point at one end, with a handle made of thread and tape. Mateo faces up to five years in federal prison when he is sentenced on May 1, 2018.
Assistant United States Attorney John File is responsible for these prosecutions. The plea hearings were held before Senior United States District Judge David A. Faber.
The Safford case was brought as part of Project Safe Neighborhoods, a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. The Lemons and Safford cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Three arrested as more than 100 pounds of marijuana and $1 million in cash seizedRead the Press Release
The Federal Bureau of Investigation (FBI) and the United States Attorney’s Office, Northern District of Ohio, announce the arrest of Amer Jabir, 37 , with residences in Cleveland, Chicago, and Weelawken, New Jersey; Ahmad Jabir, 23, and Aymen Abdelrahim, 28, both having last known addresses in Cleveland.
On Jan. 23, 2018, at approximately 8 a.m., all three individuals were taken into custody without incident for possession with intent to distribute marijuana, and/or conspiring to distribute marijuana. Ahmad Jabir and Aymen Abdelrahhim are also charged with possession with intent to distribute oxycodone and/or conspired to distribute oxycodone. Subsequent to the arrests, more than 100 pounds of marijuana and more than $1 million in cash were seized at locations in Chicago and North Olmsted.
Amer Jabir is accused of transporting large quantities of marijuana from California to Chicago, distributing a portion of marijuana in Chicago and then transporting the remaining supply to Cleveland and Detroit, where it was distributed to Amer Jabir’s customers. Abdelrahim and Ahmad Jabir operated as dealers and delivery runners for the organization, according to court documents.
Intercepted or recorded conversations via telephone or text messaging indicate numerous pounds of marijuana and hundreds of pills being sold at a time and thousands of dollars being exchanged, according to court documents.
Amber Jabir was arrested in Chicago and will appear in U.S. District Court for the Northern District Court of Illinois today. Abdelrahim and Ahmad Jabir will appear today before U.S. Magistrate Judge David Ruiz in the Northern District of Ohio.
This case has been worked by the Cleveland Division of FBI, North Olmsted Police Department, Westlake Police Department, Ohio State Highway Patrol, U.S. Customs and Border Protection and the Westshore Enforcement Bureau.
A complaint is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Any questions regarding this news release can be directed to SA Vicki D Anderson at the Cleveland Office of the FBI, 216-522-1400 or [email protected].
Three New Jersey Men Indicted in Cocaine ConspiracyRead 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 a federal grand jury returned an indictment charging Jose Rivas, 40; Jose Luis Santiago Almonte, 37; and Ryan Espinosa Ogando, 30, all natives of the Dominican Republic living in New Jersey, with conspiracy to distribute cocaine and attempted possession of cocaine. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life and a fine of $10,000,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment and a previously filed complaint, in July of 2017, the Drug Enforcement Administration in Gulfport, Mississippi obtained information regarding the drug trafficking activities of defendant Santiago. Specifically, agents learned that Santiago and co-conspirators were arranging to purchase 50 kilograms of cocaine. The co-conspirators agreed to provide two vehicles as down payment for the cocaine. Defendants Santiago and Rivas traveled from New York City to Gulfport in order to make the arrangements, and multiple down payments in the form of vehicles and cash were made.
In September of 2017, DEA agents received information that the defendants planned to travel to the Buffalo area in order to obtain kilograms of cocaine. A sale was arranged in Buffalo during which the defendants provided approximately $20,000 more in order to secure six kilograms of cocaine. All three defendants showed up for the exchange. During the exchange, defendant Espinosa took possession of a backpack containing sham cocaine, provided by the DEA. The defendants were arrested at that time.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder and released on conditions.
The indictment is the is the culmination of investigation by the Buffalo Office of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division, and the DEA Gulfport, Mississippi Resident Office.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The U.S. Attorney’s Office for the Eastern District of California Collects over $240M in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that the Eastern District of California collected $82,182,771 in criminal and civil actions in Fiscal Year 2017. Of this amount, $13,278,653 was collected in criminal actions and $68,904,118 was collected in civil actions. The Eastern District of California also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $162,370,250 in cases pursued jointly with these offices. Of this amount, $15,414 was collected in criminal actions and $162,354,835 was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending September 30, 2017.
U.S. Attorney Scott stated: “Every year, we recover far more money for victims and taxpayers than it costs to operate our office. These collections are critical to the Department’s mission of holding wrongdoers accountable, seeking restitution for victims, and pursuing funds that belong to American taxpayers.”
A significant portion of the monies collected were for actions involving allegations of Controlled Substance Act violations, including $150 million from McKesson Corp., $5 million from CVS Pharmacy Inc., and $11.75 million from Costco Wholesale. Other settlements were for health care fraud including a $9.86 million payment by Walgreen Co. to resolve allegations that it violated the federal False Claims Act when it knowingly submitted claims for reimbursement to California’s Medi-Cal program that were not supported by applicable diagnosis and documentation requirements. Given the nationwide opioid epidemic, our office will continue to focus on these types of investigations.
Our office will also continue to focus on procurement fraud to ensure that those awarded government contracts comply with all associated requirements for receipt and use of that money. This year Sierra Nevada Corporation, a Nevada corporation that provides services to federal agencies, paid $14.9 million to resolve allegations that it violated the federal False Claims Act when it knowingly misclassified certain costs, resulting in inflated overhead rates being paid in various defense and space contracts. Cityside Management Corporation paid $4.3 million to settle allegations that it violated the False Claims Act by improperly billing the U.S. Department of Housing and Urban Development for the work of Cityside’s subcontractors.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud, fire, or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of California, working with partner agencies and divisions, collected $10,377,430 in asset forfeiture actions in fiscal year 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Staten Island Man Gets 30 Months in Prison for Trafficking over $2.5 Million in Counterfeit Footwear Through Port of NewarkRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man was sentenced today to 30 months in prison for attempting to distribute more than $2.5 million of counterfeit UGG-brand boots that were shipped into the Port of Newark, U.S. Attorney Craig Carpenito announced.
Shi Wei Zheng, 42, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of trafficking in counterfeit goods. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2016 through February 2017, Zheng received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit UGG boots. Cheng asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zheng directed that they be delivered to other individuals working for him, who would then distribute the boots in New Jersey and elsewhere.
However, before Zheng could distribute the goods, law enforcement intercepted the containers, examined their contents, and determined the boots were counterfeit. At no time was Zheng authorized to import authentic or counterfeit UGG merchandise.
In total, Zheng trafficked in over 15,000 pairs of counterfeit UGG boots, with a total estimated retail value of over $2.5 million. Zheng also paid individuals over $50,000 in exchange for the delivery of the containers.
In addition to the prison sentence, Judge Vazquez sentenced Zheng to two years of supervised release.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Acting Special Agent in Charge Michael McCarthy, and U.S. Customs and Border Protection (CBP), under the direction of Acting Director of Field Operations Leon Hayward, New York Field Office, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Scott B Tulman Esq., New York
St. Croix Woman Charged with Federal Program Theft and Money LaunderingRead the Press Release
St. Croix, USVI – Kira Lee Encarnacion, 40, of St. Croix, was arraigned today in District Court on a criminal indictment charging her with federal program theft and money laundering, United States Attorney Gretchen C.F. Shappert announced.
According to the indictment, Encarnacion was employed as a bookkeeper by the Women’s Coalition of St. Croix (WCSC), a non-profit organization that provides assistance and advocacy to women, children and men who are survivors of domestic violence, sexual assault and other crimes. The indictment alleges that as part of her duties, Encarnacion issued payments to the organization’s vendors using an accounting software program. According to the indictment, Encarnacion circumvented the WCSC’s internal financial controls and fraudulently caused numerous checks to be issued to her. She then deposited the checks into an off-island bank account using a "Mobile Deposit" application.
If convicted of federal program theft, Encarnacion faces a maximum sentence of 10 years in prison and a $250,000 fine. If convicted of money laundering, she faces a maximum sentence of 20 years in prison and a $500,000 fine. This case was investigated by the Federal Bureau of Investigation (FBI). It is being prosecuted by Assistant United States Attorney Tasheika Hinson.
The public is reminded that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Springfield Woman Sentenced for Tax Fraud ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was sentenced in federal court today for her role in a nearly $600,000 tax fraud conspiracy.
Carolyn Alice Cobb, 56, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to six years and five months in federal prison without parole. The court also ordered Cobb to pay $215,184 in restitution.
On Sept. 21, 2017, Cobb pleaded guilty to one count of conspiracy to defraud the government, two counts of presenting a false claim and one count of theft of government property.
Co-defendants Nancy Lorine Walker, 56, and Clementine Lockett, 43, both of Springfield, have also pleaded to their roles in the conspiracy and await sentencing. In addition to the conspiracy, Walker pleaded guilty to one count of presenting a false claim, one count of theft of government property and one count of aggravated identity theft. Lockett also pleaded guilty to two counts of presenting a false claim.
Cobb, Walker and Lockett participated in a conspiracy, which operated from January 2010 to April 23, 2013, to submit false federal income tax returns and make false claims for federal income tax refunds for the 2009-2012 tax years.
Conspirators used the means of identification of individuals, including their names and social security numbers, and Turbo Tax to prepare and electronically file federal income tax returns. Those returns were false and fraudulent in that they included fictitious IRS Form W-2 information, listing employers who did not employ the individual listed on the return and reporting wages not earned and employment taxes not withheld from the individual.
The conspiracy resulted in a total of $718,927 in false claims for federal income tax refunds. The court found the total intended loss amount for Cobb’s involvement in the conspiracy was $597,769. Conspirators actually received a total of $317,498 in refunds.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by IRS-Criminal Investigation.
Springfield Man Sentenced to 15 Years for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin.
Corbin S. Rice, 27, of Springfield, was sentenced by U.S. District Judge Stephen R. Bough to 15 years and eight months in federal prison without parole.
On Nov. 1, 2017, Rice pleaded guilty to participating in a conspiracy to distribute a kilogram or more of heroin in Greene County, Mo., from March 1, 2016, to May 18, 2017.
Investigators conducted three controlled buys from Rice, for a total of approximately five grams of heroin. When law enforcement officers executed a search warrant at Rice’s residence, they found methamphetamine, drug paraphernalia, drug ledgers, a personal journal and a loaded shotgun. Investigators determined that Rice was purchasing two to three grams of heroin from his source, two to three times a week.
This case is being prosecuted by Special Assistant U.S. Attorney Jody M. Larison. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, IRS-Criminal Investigation, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department and the Missouri State Highway Patrol
Shreveport felon pleads guilty to possessing pistolRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced today that a Shreveport felon pleaded guilty to possessing a pistol even though he was a convicted felon.
Jamario Montreal Harris, 31, of Shreveport, pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of possession of a firearm by a convicted felon. The plea will become final after it is accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, law enforcement agents found Harris in possession of a .40 caliber Glock pistol on March 20, 2017. He was previously convicted of a felony and not allowed to possess a firearm.
Harris faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of April 2, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Session announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Seventeen firearms and more than a half-million dollars seized as 13 people indicted for trafficking hundreds of pounds of cocaineRead the Press Release
Thirteen people, most from Stark County, were charged in an 80-count federal indictment for bringing hundreds of pounds of cocaine into Northern Ohio and selling it in Massillon, Canton and throughout the region, as well as additional firearms and drug charges, law enforcement officials said.
Law enforcement agents seized 17 firearms, nearly 1,500 rounds of ammunition, approximately $592,579 in cash, more than 13 kilograms of cocaine, more than 22 kilograms of marijuana as well as heroin and crystal methamphetamine as part of the investigation.
Named in the indictment are: Apolinar Meraz-Magana, 55, of Massillon; Ignacio Cuevas-Gutierrez, 33, of Massillon; Jose Luis Martinez-Maldonado, 26, of Canton; Manuel Sarmiento Ibarra, 40, of Canton; Jonathan Quezada, 22, of Sterling; Juan Ramon Mora-Hurtado, 29, of Massillon; Karla Hernandez-Salazar, 30, of Massillon; Juan Benito Caro-Silva, 23, of Massillon; Phillip Blough, 28, of Smithville; Stamontae Sanders, 25, of Canton; Mark Momie, 51, of Canton; Celestino Penalosa, 30, of Orrville, and Dave McClellan. 43, of Massillon.
Salazar, Silva, Sanders, Maldonado, Quezada, Penalosa, Momie, McClellan and Blough conspired to possesses approximately 550 pounds of cocaine from October through November 2017. Salazar and Silva obtained the cocaine and distributed it to Sanders, Maldonado, Quezada, Penalosa, Momie, McClellan and Blough, who in turn sold the cocaine to customers throughout Ohio, according to the indictment.
Blough was charged with possession of a firearm in furtherance of drug trafficking. Salazar, Silva and Quezada were also charged with being aliens in possession of firearms and/or ammunition.
Magana, Gutierrez, Maldonado, Quezada, Hurtado and Ibarra conspired to possess more than 110 pounds of cocaine from April through September 2017. Magana and Gutierrez obtained the cocaine from suppliers and in turn distributed it to Maldonado, Ibarra, Quezada and Hurtado, who sold it to various customers throughout Ohio, according to the indictment.
Magana was also charged with being an alien in possession of firearms and ammunition, possession of a firearm in furtherance of drug trafficking, possession with intent to distribute methamphetamine, possession with intent to distribute marijuana, possession with intent to distribute heroin, and other violations.
“One only needs to look at the firearms, cash and amount of drugs associated with this crew to understand the threat they pose to our community,” said U.S. Attorney Justin E. Herdman. “Getting these defendants off the streets will save lives.”
FBI Special Agent in Charge Stephen D. Anthony said: “This group of individuals brought poison and danger to our neighborhoods. This is yet another example of law enforcement’s collaborative efforts to disrupt and rid violent drug dealing groups from our streets.”
“These arrests are the next phase of a complex investigation that spans multiple agencies and jurisdictions,” stated Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “The ultimate goal is to make Canton and the surrounding communities safer for everyone, and ATF will continue to work with our partners to that end.”
“The indictment of thirteen people is significant and an indication that cocaine is still a threat to Northern Ohio,” said DEA Special Agent in Charge Timothy Plancon. “Dismantling the activities of a large-scale, gun toting, cocaine organization is a victory for the community and was achieved by significant cooperative efforts of numerous local, state, and federal law enforcement agencies.”
Medway Director Don Hall said: “This was just another outstanding example of law enforcement agencies at all levels collaborating and being able to dismantle a significant drug trafficking organization that had a very strong influence in not only Stark and Wayne Counties but in Northeast Ohio. In one house alone in Wayne County when you seize eight pounds of crystal meth, 22 pounds of cocaine, $100,000 cash and weapons, that puts a dent in what gets distributed down the line to our local cities and villages in Wayne County.”
“It is critical for law enforcement to maintain the local/federal partnership that continues to be very effective in the arrest and prosecution of those that cause so much destruction to our community,” Canton Police Chief Bruce Lawver said.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the
characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the FBI, ATF, DEA, Medway Drug Task Force, Canton Police Department, Jackson Township Police Department, Louisville Police Department and Homeland Security Investigations. The matter is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
An indictment is only a charge 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.
Sacramento Man Sentenced to Life in Prison for Buying Children and Other Child Exploitation CrimesRead the Press Release
SACRAMENTO, Calif. — Michael Carey Clemans, 57, of Sacramento, was sentenced today to life in prison for buying children, attempted travel and travel with intent to engage in illicit sexual conduct, conspiracy to travel with intent to engage in illicit sexual conduct, conspiracy to produce child pornography, attempted production and production of child pornography, and receipt of child pornography.
This case is the latest in a multi-year trend of child exploitation prosecutions focusing on defendants with prior sex offenses and those who abuse and record the sexual abuse of children. U.S. Attorney McGregor W. Scott, Federal Bureau of Investigation Special Agent in Charge Sean Ragan, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin, Sacramento County Sheriff Scott Jones, Sacramento District Attorney Anne Marie Schubert, and Fresno County Sheriff Margaret Mims joined forces today to highlight their sustained and collaborative efforts to identify and vigorously prosecute those who exploit and abuse children and trade in images depicting the sexual abuse of children.
U.S. Attorney Scott stated, “In the last four years, over 40 federal defendants prosecuted by this office have received sentences ranging from 15 years up to life in prison for crimes against children. Many of those defendants were repeat offenders or, like Clemans, were responsible for the recorded sexual abuse of their victims. Advances in technology have escalated both the heinous nature and pervasiveness of these violent crimes that affect the most vulnerable members of our communities. The U.S. Attorney’s Office is committed to continuing its collaboration with our state, local and federal partners to locate these offenders and ensure that they are prosecuted to the fullest extent of the law.”
“Child pornography is the product of horrifically violent acts perpetrated against children who are powerless to escape their attackers. The victims not only bear the physical and emotional scars of the crime throughout their lifetimes; evidence of the criminal acts that harmed them are shared again and again by consumers of illicit content. All children deserve to be safe from harm,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation’s Sacramento field office. “The FBI is committed to working with our local, state, federal, and international partners to identify and investigate those who both produce and consume content that depicts the violent abuse of vulnerable children to ensure they face justice for their crimes.”
U.S. District Judge John A. Mendez sentenced Clemans today after a federal jury found Clemans guilty on September 5, 2017, of buying children, attempted travel and travel with intent to engage in illicit sexual conduct, and conspiracy to travel with intent to engage in illicit sexual conduct. On the first day of trial, Clemans pleaded guilty to three additional counts: conspiracy to produce child pornography, attempted production and production of child pornography, and receipt of child pornography.
According to court documents, beginning in June 2014, Clemans conspired with a woman in the Philippines to produce child pornography. During much of the conspiracy, Clemans was temporarily residing in Bangkok, Thailand, where he worked as an airline pilot. In April 2015, Clemans returned to his Sacramento residence and continued his overseas conspiracy using his online account to chat with the Filipino woman. In these chats, Clemans discussed various strategies to obtain minor girls whom he could rape. Clemans instructed the Filipino woman on how to find vulnerable victims, directing her to look for orphans and victims of typhoons. Clemans paid nearly $6,000 to the woman so she could buy photographic equipment and find discreet locations to conduct sexually explicit photo shoots of the victims, who were as young as seven years old. On multiple occasions, Clemans paid a co-conspirator to obtain temporary custody of the children in the Philippines and produce child pornography for him.
According to evidence introduced at trial, Clemans engaged in another scheme with separate individuals in November 2013, in which he traveled from the United States to Manila for the purpose of engaging in illicit sexual conduct with minors after requesting and receiving pornographic images of minors whom he expected to rape.
This case was the product of an investigation by the Federal Bureau of Investigation and the Philippine National Bureau of Investigation. Assistant U.S. Attorneys André M. Espinosa and Colleen M. Kennedy prosecuted the case.
The following are summaries of Project Safe Childhood cases from January 2014 to present in which sentences of 25 or more years were imposed.
On October 13, 2015, Shawn Joseph McCormack, 34, of Colorado Springs, Colorado, was sentenced to life in prison for kidnapping and producing child pornography involving two toddlers. McCormack traveled to a couple’s residence in Bakersfield and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddlers out of the house and recorded his sexual abuse of them. 1:11-cr-324 AWI
On March 23, 2017, Jesse Davenport, 42, of Chico, was sentenced to 50 years in prison for conspiring with a Connecticut woman to produce a video of a child being sexually abused. The woman made a video with a child she was babysitting following Davenport’s instructions and sent it to him two times. Davenport then distributed the video to another person. Davenport had prior convictions for sex offenses against minors. 2:13-cr-399 MCE
On April 30, 2014, Neng Yang, 49, of Clovis, was sentenced to 38 years in prison for producing child pornography. While working as a teacher, Yang used an iPhone and a computer to record and store videos depicting his sexual abuse of a 12-year-old girl under his supervisory control.
1:12-cr-037 AWIOn August 25, 2014, Christopher David Robinette, 48, a U.S. citizen living in the Netherlands, was sentenced to 35 years in prison for traveling to Fresno to sexually exploit a minor. He abused the minor in California, Nevada, Mexico and Costa Rica and produced digital still and video images of the abuse. 1:13-cr-003 AWI
On January 18, 2018, Jeffrey Miles Hayes, 55, of Sacramento, was sentenced to 33 years and four months in prison for receiving over 2,000 images of children engaged in sexually explicit acts, including images showing sadistic abuse and the sexual abuse of an infant. He also possessed links to cloud storage accounts containing child pornography. At the time of the offense, Hayes had a prior conviction related to child pornography and was a registered sex offender. 2:16-cr-190 TLN
On April 12, 2016, Shane Paul Young, 47, of Fresno, was sentenced to 30 years in prison for sending and receiving hundreds of videos and images of child pornography with users across Europe and North America. The voluminous amount of child pornography included graphic images of infants and toddlers being sexually abused. Both the nature of Young’s offense and his significant prior criminal history factored into his sentence. 1:13-cr-126 DAD
On July 29, 2016, Jason Wymer, 46, of Citrus Heights, was sentenced to 30 years in prison for sexual exploitation of children. A parent accidentally sent a picture of her child to a wrong number who turned out to be Wymer. When Wymer responded requesting more pictures, the parent brought the cellphone to the FBI. An undercover employee, pretending to be a child, continued the dialog until they were able to locate and arrest him. Photos of Wymer molesting a three-year-old were found on his phone, and Wymer also admitted to molesting a four-year-old child. 2:13-cr-086 GEB
On January 19, 2017, Bret Allan Nichols, 33, of Paradise, was sentenced to 30 years in prison for paying a Florida couple to produce and record child pornography. A forensic search of Nichols’s computer seized during the subsequent search of his residence found multiple videos that Nichols had recorded of five additional child victims in Colombia and the Philippines.
2:13-cr-400 MCEOn December 3, 2014, Jeffrey Randall Metcalfe, 50, of Turlock, was sentenced to 30 years in prison for receiving and distributing child pornography. He created at least 17 accounts on a photo-sharing website, posted numerous images to the site and made comments about his interest in child pornography. Metcalfe possessed thousands of printed and digital images of child pornography. This was his second child pornography conviction in federal court in Fresno.
1:14-cr-012 LJOOn August 18, 2014, Allen Kendrick, 51, of Escalon, was sentenced to 30 years in prison for receiving and distributing child pornography. Kendrick was previously convicted of lewd and lascivious acts with a child under the age of 14, and he had a prior 2010 offense for possession of child pornography. 1:14-cr-055 LJO
On September 14, 2017, Raul Gonzalez, 44, of Woodland, was sentenced to 30 years in prison for causing a minor to engage in sexually explicit conduct, which he recorded with his cellphone camera. Gonzalez also sexually abused another minor who was less than 14 years old.
2:13-cr-377 MCEOn July 10, 2014, Phillip J. Colwell, 58, of Sacramento, was sentenced to 30 years in prison for engaging in a series of cellphone text conversations with a 14-year-old boy and sending him sexually explicit images. Colwell encouraged him to produce sexually explicit images of himself to send to Colwell. Colwell also molested a 16-year-old boy and took explicit photos of him that he then uploaded to a website in order to advertise him for sex trafficking. 2:12-cr-73-GEB
On December 8, 2014, Bradley Allen Vaine, 31, of Fresno, was sentenced to 25 years in prison for receiving and distributing more than 600 images of child pornography, some of which depicted prepubescent minors, and some were of violent or sadistic conduct. 1:12-cr-403 LJO
On March 24, 2014, Frank Charles Reddell, 43, of Madera, was sentenced to 25 years in prison for receiving child pornography. Reddell had a prior conviction for lewd and lascivious conduct with a minor, and he was on parole when an officer found him viewing child pornography in a parking lot. 1:13-cr-090 LJO
On September 9, 2016, Joshua Landon Klipp, 36, of Chico, was sentenced to 25 years in prison for persuading a minor to engage in sexually explicit conduct while he recorded and transmitted live visual depictions of it. Klipp received images from the minor, as well as other images through the internet. 2:14-cr-107 GEB
On July 20, 2015, Ricky Davis, 38, of Modesto, was sentenced to 25 years in prison for production of child pornography and attempted sex trafficking of a minor. He took sexually explicit photographs of a 13-year-old girl and posted them online within an advertisement for prostitution. 1:12-cr-056 AWI
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rochester Man Sentenced on Bank Robbery ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Claude Taylor, 38, of Rochester, NY, who was convicted of robbing the Lexington Federal Credit Union, at 1275 Lexington Avenue in Rochester, was sentenced to 40 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Charles E. Moynihan, who handled the prosecution of the case, stated that on May 5, 2016, Taylor entered the Lexington Federal Credit Union, waited in line and then passed a hand written note to a bank teller. The note, which was written on an envelope, demanded that the teller turn over $5,000. The defendant yelled, ordering the teller to “do it fast.” Taylor also ordered a neighboring teller not to interfere. The bank teller turned over money, and Taylor ran from the bank. Subsequent investigation identified the defendant, and on May 22, 2017, Taylor was arrested by law enforcement officers.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the United States Marshal’s Service, under the direction of Marshal Charles Salina; and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Red Bluff Woman Is Sentenced to over 2 Years in Prison for Bank Fraud, Identity Theft and Possession of Stolen MailRead the Press Release
SACRAMENTO, Calif. — Crystal Candiece Cooper, 35, was sentenced Tuesday to two years and five months for a bank fraud scheme, aggravated identity theft, and possession of stolen U.S. Mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, between December 19, 2015 and March 27, 2017, Cooper obtained financial and identity information, checks, credit cards and bank cards from stolen U.S. mail and used them to get cash, goods, and services. Cooper targeted postal customers in Red Bluff.
One victim of Coopers identity theft scheme had applied for Social Security benefits and expected to receive a debit card in the mail to access the money. Instead, Cooper obtained mail stolen from the victim and found the victim’s debit card and other identifying information. Cooper was able to activate the card and set a PIN to give her access to the funds. She made four separate cash withdrawals using the debit card.
When Cooper was arrested by federal agents on March 27, 2017, she had in her possession stolen mail and identity information such as Social Security numbers, dates of birth, and driver’s license numbers for residents of Tehama and Shasta Counties.
This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Tehama County Sheriff’s Department and Red Bluff Police Department. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.
RI DOT Addressing ADA Compliance at South County Train StationsRead the Press Release
PROVIDENCE, RI – The Rhode Island Department of Transportation (RIDOT) has undertaken steps voluntarily to address accessibility issues at state owned train stations in Kingston and Westerly to bring them into compliance with the Americans with Disabilities Act (ADA). Updates have been completed at the Kingston train station. Additional updates are required at the Westerly station, which are expected to be made by Amtrak.
In December 2016, at the request of the Department of Justice’s Civil Rights Division, the United States Attorney’s Office in Rhode Island opened an investigation of the Kingston and Westerly train stations to ensure that they are accessible, as required by the ADA.
The investigation by the United States Attorney’s Office determined that the Kingston station’s platform, recently renovated, is ADA compliant. However, the investigation determined that the train station was not ADA compliant, including violations at ticket counters and bathrooms. Updates have been completed by RIDOT and the train station is now ADA compliant.
An inspection of the Westerly train station by the United States Attorney’s Office determined that chairlifts for each tunnel used to obtain platform access were inoperable and one of the parking lots had no accessible parking. RIDOT has completed updates to the parking lot, which has been deemed ADA compliant. Amtrak is expected to make updates to make platform access from the tunnels ADA compliant.
Across the country, the Civil Rights Division sought assistance to ensure that intercity rail stations owned by state or local governmental entities are accessible, as required by the ADA. The request followed the Civil Rights Division’s conclusion that Amtrak is in violation of the ADA and issued a Letter of Findings to Amtrak.
The matter was handled in Rhode Island by Assistant U.S. Attorney Amy R. Romero and investigator David Neill in conjunction with the Department of Justice’s Civil Rights Division.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, visit the web site of the United States Attorney’s Office for the District of Rhode Island at www.justice.gov/usao-ri/civil-rights-enforcement, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TTY). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm.
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Penn Yan Man Sentenced on Gun and Witness Tampering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that James E. Sandford, III, 29, of Penn Yan, NY, who was convicted of possessing a stolen firearm, being a felon in possession of a firearm, and witness tampering, was sentenced to 156 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Brett Harvey, who handled the trial, stated that the defendant was initially arraigned on a criminal complaint in the Western District of New York on June 4, 2015. Subsequent to his arrest on the federal charges, Sandford attempted to intimidate and threaten a suspected witness against him by shouting to that individual: “I’m not going to be in jail long. I will see you on the outside you snitch.” The defendant made the statement with the intent to influence, delay or prevent the testimony of that suspected witness in the prosecution of defendant.
Eventually, Sandford was charged in a superseding indictment which alleged that he distributed synthetic cannabinoids (designer drugs) between July 2014 and March 24, 2015, in the Penn Yan area. He was further charged with distributing such substances— and controlled substance analogues, which are designed to mimic the effects of controlled substances—both to individuals under the age of 21 and within 1000 feet of St. Michael’s School, a private elementary school in Penn Yan. In addition, the superseding indictment alleged that on February 22, 2015, the defendant traded synthetic cannabinoids to a minor in exchange for a stolen Savage .410 double barrel shotgun. At the time, the defendant had two prior felony convictions preventing him from legally possessing a gun. Finally, the superseding indictment also charged him with witness tampering related to his statements to the suspected witness.
With the defendant contending that he did not know the substances he was distributing were illegal, the jury failed to reach a verdict on the drug charges against him. The jury did, however, convict him of the two firearms charges and the witness tampering charge against him.
Sandford is still facing re-trial on 11 drug charges. 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.
Today’s 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 Office; the Penn Yan Police Department, under the direction of Chief Mark Hulse; the Yates County Sheriff’s Department, under the direction of Ronald Spike; and the Yates County District Attorney’s Office, under the direction of Todd Casella.
Painting Contractor Pleads Guilty in Connection with George Wade Bridge ProjectRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the painting contractor on the George Wade Bridge Project, Andrew Manganas, age 60, of Canonsburg, Pennsylvania and Panthera Painting, Inc., headquartered in Canonsburg, pled guilty on January 22, 2018, to theft from union plans, wire fraud, and discharge of pollutants into the Susquehanna River.
According to United States Attorney David J. Freed, Manganas and his company, Panthera Painting, Inc. were charged in a 46-count indictment for crimes related to Panthera’s role as a subcontractor on the multi-year George Wade Bridge restoration project. In September 2009, PennDOT awarded a contract for rehabilitation work on the George Wade Bridge to J.D. Eckman as the prime contractor. The George Wade Bridge spans the Susquehanna River on Interstate 81 in Cumberland and Dauphin Counties, Pennsylvania. The Wade Bridge Project was a federal oversight project, meaning that the Federal Highway Administration of the U.S. Department of Transportation conducted reviews and approvals during the project’s design and construction phases. The contract amount was $42,480,434.05 with the FHWA’s federal-aid programs reimbursing 90 percent of that cost. The Wade Bridge Project was scheduled to be completed on May 25, 2012, but was extended to September 27, 2013. In October 2009, Panthera was awarded a $9,875,000 subcontract by Eckman; that contract amount was increased to more than $10 million. The subcontract awarded to Panthera covered the blasting, resurfacing, and painting of the structural steel on the George Wade Bridge.
The federal oversight and funding of the contract required each contractor and subcontractor to submit Certified Payroll Reports for every worker and every pay period to certify that the appropriate prevailing wage was being paid to each worker. Manganas and Panthera pleaded guilty to submitting false payroll reports that did not accurately reflect the amount workers were being paid. Manganas paid only partial wages in a wage check that did not include overtime pay. He then paid overtime in a separate “per diem” check that did not properly deduct taxes and remittances, some of which were owed to the unions of which the workers were members. By under-reporting wages paid, Manganas defrauded the federal agencies paying for the bridge work. By failing to properly remit wages to the unions, Manganas effectively stole money from the workers and the union. Moreover, Manganas and Panthera pled guilty to knowingly discharging pollutants into the Susquehanna River over the course of three painting seasons of the Project. The contract and environmental laws prohibit the discharge of pollutants without a permit. Panthera and Manganas were supposed to utilize various methods to ensure that pollutants did not enter the Susquehanna River, including construction of “containment” to cover bridge areas being blasted clean and repainted. Containment involved using ropes, cables, fabric, metal pans and waste collection and recycling systems on segments of the bridge being blasted and repainted to prevent pollutants from being discharged into the River. Manganas knew he did not have a permit to discharge pollutants into the River, but Panthera workers, at Manganas’ direction and with his knowledge, utilized a variety of methods and equipment to discharge pollutants, including abrasive paint blasting materials, waste paint, and metal, into the Susquehanna River rather than collect them for recycling or disposal as hazardous waste.
The case was investigated by the U.S. Department of Labor, Office of Inspector General, the U.S. Department of Transportation, Office of Inspector General, the U.S. Environmental Protection Agency, Criminal Investigation Division, and the Federal Bureau of Investigation. Assistant U.S. Attorney James T. Clancy and Special Assistant U.S. Attorney Martin Harrell of EPA are prosecuting the case.
The embezzlement offense carries a maximum penalty of up to five years in prison and a $250,000 fine for an individual and a fine of $500,000 for a company; the wire fraud charge carries a maximum penalty of up to 20 years in prison and a $250,000 fine for an individual and a $500,000 fine for a company; and each of the Clean Water Act charges carries a maximum penalty of up to 3 years in prison, and a fine of up to the greater of $250,000 or $50,000 per day of violation, a term of supervised release following imprisonment, and a fine for an individual and a fine of up to the greater of $500,000 or $50,000 per day of violation for a company. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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