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21 February 2018
Big Island Capital Fraudster Sentenced to 110 Months in Prison for Million Dollar Ponzi SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of JEREMY RICHARD LUNDIN, 31, to 110 months in prison for operating a Ponzi scheme through which he stole more than $1 million from individual investors. LUNDIN, who pleaded guilty on September 22, 2017, was sentenced today before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minn. In addressing LUNDIN’S conduct, Judge Wright stated, “You did not steal from your victims because you needed money … you stole money because you wanted to maintain a lavish lifestyle without earning it. Your victims earned their money, and you stole it. You used their money to buy vacations, clothes, vehicles, a boat, for yourself. Apparently you decided you deserved their money more than they did.”
Assistant U.S. Attorney Amber Brennan said, “Jeremy Lundin had a life that a lot of people dream of, a middle class life. But, he wanted things he could not afford, so he stole from people who had saved money for their retirement and to help their kids go to college. These are people who wanted to give their kids the same opportunities that Lundin himself had. And, he stole from them for no reason other than to live a lavish lifestyle.”
“When fraudsters like Jeremy Lundin take advantage of honest citizens who are simply looking to invest their hard-earned savings and retirement funds for a better life - it’s not only shameful, but devastating,” said Acting Special Agent in Charge Hubbard Burgess of IRS Criminal Investigation, St. Paul Field Office. “Today's sentencing demonstrates how federal law enforcement works together to help stop the criminal behavior of those who prey on innocent investors in order to enrich themselves.”
“Postal Inspectors take very seriously their mission to deter the illegal use of the mails for any criminal activity,” said Acting Postal Inspector in Charge, Dana Carter. “We are committed to working together with our law enforcement partners to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail. Today’s sentencing should send a clear message to those individuals who are contemplating using the mails for their schemes to defraud, don’t do it.”
“To appear legitimate, Lundin used a slick sales pitch and phony documents to steal people’s life savings. His sole objective was to indulge his own extravagant lifestyle,” said Minnesota Commerce Commissioner Jessica Looman. “The Commerce Fraud Bureau is committed to investigating and stopping fraud in Minnesota. We hope that the sentence received by Lundin will deter others from committing fraud in our state.”
According to the defendant’s guilty plea, from approximately December 2014 until May 2017, LUNDIN claimed that he conducted “options trading” through his company Big Island Capital. LUNDIN worked through a network of associates and friends to solicit investors to invest with Big Island Capital by promising those potential investors exponential growth through options trading. LUNDIN solicited more than $1 million from at least 51 investors, but instead of using the funds for options trading, LUNDIN spent investors’ money to fund his and his wife’s lavish lifestyle.
According to the defendant’s guilty plea, as part of the scheme, LUNDIN provided victim investors with written materials relating to his purported investment strategy. Through these materials, LUNDIN claimed that the goal of Big Island Capital was to “generate profits with options trading” and that while he could not “guarantee” an exact percent, he would “shoot for” returns of between 40 percent and 80 percent. LUNDIN also entered into contract agreements with victim investors. These agreements, titled, “Big Island Capital Investment Advisory Agreement,” purported that the assets of Big Island’s account would be held for safekeeping in a brokerage account. LUNDIN regularly represented that the value of the account was several hundred thousand dollars. For example, “Welcome Packet” materials LUNDIN sent to a new victim investor on November 24, 2015, claimed that the firm’s capital was then $730,000 when, in reality, LUNDIN did not even open the brokerage account until December 21, 2015.
According to the defendant’s guilty plea, in order to appear legitimate and promote his scheme, LUNDIN created phony account statements. He also provided victim investors with online access to fictitious quarterly statements and purportedly “up to date” information about the rate of growth and the market value of the accounts, which commonly and falsely showed double-digit gains. As part of the scheme, LUNDIN directed his victim investors to make their checks payable to “Big Island Capital,” he would then deposit those checks into a bank account he had established in the company’s name. Between May 2015 and May 2017, at least $992,000 was deposited into that account. During roughly the same time period, however, LUNDIN transferred $933,950 from the business account directly into his and his wife’s personal checking account. LUNDIN and his wife used the majority of those investor funds on personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan prosecuted the case.
Defendant Information:
JEREMY RICHARD LUNDIN, 31
Mound, Minn.
Convicted:
- Mail fraud, 1 count
- Money laundering – transaction involving fraud proceeds, 1 count
Sentenced:
- 110 months in prison
- Three years of supervised release
- $969,788.96 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Baton Rouge Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
Acting United States Attorney Corey R. Amundson announced today that TERRANCE THORNTON, age 24, of Baton Rouge, Louisiana, has been convicted on one count of possession of firearms by a convicted felon. As a result of his conviction, THORNTON faces a significant term of imprisonment, fine, and a period of supervised release.
In a hearing before U.S. District Judge John W. deGravelles on February 15, 2018, THORNTON pled guilty to possession of two firearms, a Glock 9mm semiautomatic pistol, and a Century Arms 7.62 caliber semiautomatic rifle, after having been convicted of two felony offenses in 2013, including accessory after-the-fact to armed robbery, in the 19th Judicial District Court for the Parish of East Baton Rouge.
Following a high-speed car chase on July 31, 2017, THORNTON fled from Baton Rouge Police Officers on foot. As he fled, THORNTON hid a Glock pistol within a residential backyard. He later directed an associate to retrieve the hidden pistol and bring it to his residence. On August 1, 2017, law enforcement officers executed a search warrant at the defendant’s residence where they recovered the Glock pistol and a Century Arms 7.62 caliber rifle.
Acting U.S. Attorney Amundson stated, “The investigation of this offense, which involved a collective effort by several of our Violent Crime Strike Force partners, and the resulting conviction of THORNTON, reaffirm our resolve to pursue all avenues available to keep our community safe.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “Service to our community, through partnerships with federal, state, and local law enforcement, is on full display when we, along with the communities we help, take individuals with ties to violent crimes, such as THORNTON, off of our streets.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department, with substantial assistance from the Louisiana State Police Crime Laboratory and Fugitive Task Force. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Barbourville Couple Sentenced for Defrauding the VA and the Social Security AdministrationRead the Press Release
LEXINGTON, Ky. – A Barbourville, Ky. couple, who previously admitted to defrauding the U.S. Department of Veterans Affairs (“VA”) and Social Security Administration (“SSA”), were sentenced on Friday, February 16, 2018. James R. Baker was sentenced to 24 months in prison, while his wife, Debbie K. Baker, was sentenced to 8 months in prison to be followed by 8 months’ home incarceration.
U.S. District Judge Danny C. Reeves sentenced 46-year-old James R. Baker for conspiracy to defraud the VA and conspiracy to defraud the SSA, and Debbie K. Baker, 47, for conspiracy to defraud the SSA.
Between October 13, 2006, and July 3, 2017, James Baker exaggerated various mental and physical conditions by unnecessarily using a cane, walker, or wheelchair to assist in walking, or by falsely reporting to doctors that he could not perform daily activities of living due to his physical and mental ailments, all in order to increase his compensation benefits from the VA. James Baker’s exaggerations and falsehoods resulted in an overpayment of VA compensation benefits in the amount of $381,240.45. As a result of his malingering, the VA also paid James Baker an additional $231,508.17 in grants for various purposes, such as special adaptive housing and home maker and home health benefits. Additionally, he received $233,370 in SSA disability benefits, stemming from his VA disability determination. For her part, Debbie Baker participated in creating the illusion that her husband was totally disabled, including by falsely claiming on a SSA form that Baker was unable to perform most activities independently.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Kim Lampkins, Special Agent in Charge for the VA Office of Inspector General; and Margaret Jackson, Special Agent in Charge for the SSA Office of Inspector General, jointly announced the sentences.
The investigation was conducted by the VA Office of Inspector General and SSA Office of Inspector General.
Bangor Man Sentenced to Three Months for Conspiracy to Transport Stolen GoodsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Anthony G. Berry, 49, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to three months in prison and three years of supervised release for conspiracy to transport stolen goods in interstate commerce. He was also ordered to pay over $9,000 in restitution and a $9,000 fine. Berry pled guilty on May 3, 2017.
According to court records, between March and October 2014, Berry and others conspired to steal merchandise from Walmart, Hannaford, and other stores in Maine and to sell it online. Berry and one of his co-conspirators received the stolen goods, marketed them online, and shipped the goods to buyers.
The investigation was conducted by the U.S. Immigration & Customs Enforcement’s Homeland Security Investigations, the Maine State Police, the Bangor Police Department, and the Penobscot County Sheriff’s Office.
Ada Man Found Guilty of Enticement of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that Floyd Preston Miller III, age 38, of Ada, Oklahoma was found guilty by a federal jury of Enticement Of A Minor Using The Internet, in violation of Title 18, United States Code, Section 2422(b). The jury trial began with testimony on Tuesday, February 20, 2018 and concluded on Wednesday, February 21, 2018 with the guilty verdict.
Evidence at trial proved that from in or about November 2015, the exact date being unknown to the Grand Jury, until on or about February 8, 2016, in the Eastern District of Oklahoma, the defendant used a facility and means of interstate commerce, the Internet, to attempt to knowingly persuade, induce, and entice an individual whom he believed was 15 years old, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law.
The verdict obtained was the result of an investigation by the Las Vegas Internet Crimes against Children (ICAC) Task Force, the North Las Vegas Police Department, and the Federal Bureau of Investigation.
United States Attorney Brian J. Kuester said, “Preying upon children, whether in person or via the internet, is not only illegal, it is despicable. Sometimes perpetrators gain an advantage over law enforcement agents because the internet allows there to be distance from victims which span geographic and jurisdictional boundaries. But in this case the ICAC Task Force in Las Vegas, the North Las Vegas Police, the FBI, and the U.S. Attorney’s Office worked together to overcome the challenges that are inherent in Internet Enticement cases to achieve justice for the victim.”
“Speaking more generally, I want parents to be aware that predators do exist and they can enter your children’s rooms without ever stepping foot in the same state. Stay informed of the latest trends in chat rooms, social media, and the various phone apps that make it easy for strangers to seek out and communicate with children. Be aware of their phone activity and internet history. Just because a child is “safely” at home no longer means that predators have no access to them. Predators are using the internet, are very savvy with it, and are very much aware of how to lure children.”
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in custody pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
20 February 2018
Woman Convicted of Bank RobberyRead the Press Release
CORPUS CHRISTI, Texas - A second defendant has been convicted for robbing the Prosperity Bank in Yoakum, announced U.S. Attorney Ryan K. Patrick.
On Sept. 22, 2016, Marina Michelle Pulmano, 22, of Tuscaloosa, Alabama, entered the Prosperity Bank and handed the teller a note stating she had a gun and demanded money. The teller complied and Pulmano then left the bank with the cash.
On Nov. 3, 2016, law enforcement officers again responded to a robbery at the same bank. Similarly, a male, later identified as Chad Andrew Latham, handed the teller a note that stated he had a gun and demanded money. Latham then left the bank with the money.
During the investigation, detectives were able to confirm the identities of the robbery suspects after speaking to several people that recognized Pulmano and Latham from the images released to the local media. Latham and Pulmano, who were dating at the time of the robberies, left the area and returned to Alabama where they were later arrested.
Latham, 26, also of Tuscaloosa, Alabama, previously pleaded guilty and was sentenced in August 2017 to 70 months in federal prison.
Senior U.S. District Judge John Rainey accepted Pulmano’s plea today and set sentencing for May 14, 2018. At that time, she faces up to 20 years imprisonment and a maximum $250,000 fine. She was permitted to remain on bond pending that hearing.
The FBI and Yoakum Police Department conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Windsor Woman Pleads Guilty to Federal Tax Charge Arising from $190,000 Embezzlement SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that REBECCA BLOCK, 43, of Windsor, waived her right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a federal tax offense stemming from an embezzlement scheme.
According to court documents and statements made in court, BLOCK was employed by PG Life Planning Associates, Inc. in West Hartford. Between 2010 and 2013, BLOCK stole from the company by issuing checks payable to herself and depositing those checks into her personal bank account. She concealed the embezzlement from her employer by disguising the payments in PG Life’s internal accounting records as legitimate business expenses. BLOCK embezzled approximately $190,399 over the approximately four-year period, and failed to report a total of $42,004 in income taxes on her 2010 through 2013 federal tax returns.
BLOCK pleaded guilty to one count of filing a false tax return, an offense that carries a maximum term of imprisonment of three years. Judge Underhill scheduled sentencing for May 22, 2018.
BLOCK has agreed to make restitution in amount of $190,399 to PG Life, and $42,004, plus applicable interest and penalties, to the IRS.
BLOCK is released on a $40,000 bond pending sentencing.
This investigation has been conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Wellford Woman Sentenced for Forging PrescriptionsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Felicia L. Prysock, age 41, of Wellford, South Carolina, was sentenced to 24 months and one day in prison for Aggravated Identity Theft, a violation of Title 18, United States Code, § 1028A; and Obtaining a Controlled Substance by Fraud, a violation of Title 21, United States Code, § 843(a)(3). Chief Judge Terry L. Wooten presided at the hearing and also ordered restitution to Medicaid of $1,132.12.
Evidence presented at the change of plea established that Prysock filled ten different prescriptions forged in the names of a doctor and her children and had Medicaid pay for them. The conduct occurred between July 2016 and April 2017. The investigation revealed that these prescriptions were for Schedule II opioids, such as oxycodone, hydrocodone, and Adderall.
The United States Department of Health and Human Services, Office of the Inspector General, along with the United States Drug Enforcement Administration, investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Utah Man Sentenced for Selling Oxycodone Pills on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that 32-year old Tacuma Wallace of Ogden, Utah, was sentenced to 12 months and one day in prison, three years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing.
On May 12, 2016, law enforcement in Roosevelt County received information that Wallace was selling drugs out of a hotel in Wolf Point, Montana. On May 16, 2016, officers witnessed the defendant leave the hotel and get into his rental car in the parking lot. The officers then observed Wallace engage in numerous people approach the car and receive drugs from Wallace.
Wallace and another man then left the parking lot in a truck. Officers conducted a traffic stop on the truck, and Wallace quickly opened the back door and tried to get out and run away. Meanwhile, another officer spoke with the driver who explained that he had known Wallace for two months and Wallace sold pills on the Fort Peck Indian Reservation. The driver admitted he had purchased pills from Wallace at least 20 separate times, and he had just purchased a pill from Wallace for $70.00. The driver also stated Wallace specifically makes trips to Wolf Point to sell pills. Law enforcement tested pills possessed by the defendant and confirmed they were Oxycodone pills. Law enforcement also confirmed that Wallace was one of the biggest suppliers of pills to the Fort Peck Indian Reservation.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Drug Enforcement Administration and the Roosevelt County Sheriff’s Office.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
U.S. Attorney announces 69-count indictment charging owners, managers and physicians associated with Hope ClinicRead the Press Release
United States Attorney Mike Stuart announced the unsealing of a 69-count indictment charging a total of 12 individuals with operating a “pill mill.” The indictment charges the owners, managers and physicians associated with HOPE Clinic, which operated as a purported pain management clinic in Beckley, Beaver and Charleston, West Virginia, as well as Wytheville, Virginia, and a related company, with conspiring to distribute oxycodone and other Schedule II controlled substances, not for legitimate medical purposes and outside the usual course of professional practice, from November 2010 to June 2015.
United States Attorney Mike Stuart was joined in the announcement by Special Agent in Charge Maureen Dixon, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Philadelphia Regional Office and Assistant Special Agent in Charge Sherri Arp, Internal Revenue Service Criminal Investigations (IRS CI), Washington, D.C. Field Office. “I commend the work of my team, under the leadership of AUSAs Monica Coleman and Meredith Thomas and the critical work of our law enforcement partners,” said United States Attorney Mike Stuart. Stuart commended the investigation conducted by agents with:
- U.S. Department of Health and Human Services, OIG
- Internal Revenue Service, Criminal Investigations
- Food and Drug Administration – Office of Criminal Investigations (OCI)
- Federal Bureau of Investigation
- Drug Enforcement Administration
- West Virginia State Police
- Metropolitan Drug Enforcement Network Team (MDENT)
- Beckley Police Department
- Kentucky State Police
- Harrison County (KY) Sheriff’s Department
- Appalachia HIDTA
The charges announced today aggressively target medical professionals involved in the unlawful distribution of opioids and other dangerous controlled substances. “As of today, there are 69 counts. 10 doctors in total. Clinics from Beckley to Beaver, and Charleston to Wytheville. Lots and lots of pills, and even more misery,” said United States Attorney Mike Stuart. Stuart continued, “Home-grown drug dealers hidden behind the veil of a doctor’s lab coat, a medical degree and a prescription pad are every bit as bad as the heroin dealers from Detroit who bring their poisons to West Virginia. Today’s 69-count indictment is the continuation of our efforts to hold accountable those who prey on the good citizens of West Virginia.”
The following individuals are charged in the indictment: James H. Blume, Jr., D.O, Mark T. Radcliffe, Joshua Radcliffe, Michael T. Moran, M.D., Sanjay Mehta, D.O., Brian Gullett, D.O., Vernon Stanley, M.D., Mark Clarkson, D.O., William Easley, D.O., Paul W. Burke, M.D., Roswell Tempest Lowry, M.D., and Teresa Emerson, LNP. “We are committed to protecting all those in government health programs,” said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “Working side by side with our law enforcement partners we will aggressively investigate charges of medical providers needlessly prescribing deadly opioids.”
In addition to the conspiracy charge, the indictment charges defendants Blume and Mark Radcliffe with maintaining drug-involved premises in Beckley, Beaver and Charleston, and includes 62 counts charging several physicians with distribution of controlled substances not for legitimate medical purposes and outside the usual course of professional practice. The indictment also charges Sanjay Mehta, D.O., a former physician at the Beckley and Beaver HOPE Clinic locations, with two counts of distribution of controlled substances causing death, and charges 10 of the defendants with conspiracy to launder drug proceeds by paying bonuses to HOPE Clinic physicians and employees of Patients, Physicians, and Pharmacists Fighting Diversion, Inc. (PPPFD), to encourage continued prescribing of Schedule II narcotics to customers.
According to the indictment, defendant James H. Blume, Jr., D.O., the owner of the HOPE Clinic, entered into a Physician Practice Management Agreement with defendant Mark T. Radcliffe, owner of PPPFD, to be the practice manager of the HOPE Clinic. The indictment alleges that together Blume and Radcliffe operated HOPE Clinic as a cash-based business that prescribed oxycodone and other Schedule II controlled substances to customers, while refusing to accept insurance, charging in-state customers at least $275 for an initial appointment, and at least $160 for each subsequent appointment. Out of state customers paid as much as $330 for initial visits and at least $185 for subsequent visits. The indictment alleges that HOPE Clinic practitioners prescribed thousands of oxycodone-based pills to individual customers and some HOPE Clinic locations, including Beaver and Charleston, averaged 65 or more customers a day during a 10-hour workday with only one practitioner working. In addition, the indictment alleges that Blume and Mark T. Radcliffe contracted the services of physicians without any knowledge of pain management who consistently conducted cursory, incomplete, or no medical examinations of Clinic customers and provided large amounts of Schedule II prescription medications to customers that they knew, and had reasonable cause to believe, were drug addicts. The indictment further alleges that Mark T. Radcliffe and his son, Joshua Radcliffe, neither of whom had any formal medical education or training, instructed medical practitioners at HOPE Clinic to provide customers with prescriptions for Schedule II controlled substances, sometimes in direct contrast with the practitioners’ clinical opinions.
"Those who facilitate the abuse of controlled dangerous substances are negatively impacting our entire community and will be held accountable,” said Kimberly Lappin, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s indictment is a reminder that IRS-CI will remain vigilant in our financial investigations and will continue to work with our law enforcement partners to combat this type of conduct.”
If convicted on all charges as alleged in the indictment, Dr. Blume and Mark Radcliffe face up to 100 years; Joshua Radcliffe faces up to 20 years; Teresa Emerson faces up to 20 years; Michael Moran faces up to 60 years; Sanjay Mehta faces a forty year mandatory minimum sentence up to life imprisonment; Vernon Stanley faces up to 240 years; Brian Gullett faces up to 340 years; Mark Clarkson faces up to 80 years; William Earley faces up to 200 years; Paul Burke faces up to 180 years; and Roswell Tempest Lowry faces up to 120 years. In a related case, John Pellegrini faces up to 20 years imprisonment for his role in a conspiracy to commit money laundering.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Please find a link to the Indictment and Information below.
Indictment
Information
Please note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney McAllister Announces His Management TeamRead the Press Release
KANSAS CITY, KAN. – Newly appointed U.S. Attorney Stephen McAllister Tuesday announced the members of his management team.
“I have spent the past few weeks getting to know our personnel,” said McAllister, who was sworn in Jan. 25. “This team has my full confidence and support and I believe the members will put us in a strong position to pursue the priorities of our office.”
Tom Beall, who served as interim U.S. Attorney, will become First Assistant U.S. Attorney. Assistant U.S. Attorney Emily Metzger will be chief of the district’s civil division and civil coordinator in the Wichita office. Assistant U.S. Attorney Duston Slinkard will take over as chief of the criminal division for the district and criminal coordinator in the Topeka office.
Assistant U.S. Attorney Debra Barnett will serve as criminal coordinator in the Wichita office. Assistant U.S. Attorney Scott Rask will be criminal coordinator in the Kansas City, Kan.
In the civil division, Assistant U.S. Attorney Chris Allman will be civil coordinator for the Kansas City, Kan., office. Assistant U.S. Attorney Jackie Rapstine will be civil coordinator in the Topeka office.
Assistant U.S. Attorney James Brown will serve as appellate chief. Assistant U.S. Attorney Carrie Capwell will serve as senior litigation counsel.
McAllister was nominated by President Donald Trump and confirmed by the U.S. Senate. He is in charge of a staff of more than 100, including 50 attorneys, who work in offices in Topeka, Wichita and Kansas City, Kan.
Two East St. Louis Men Sentenced for Conspiracy to Distribute Crack CocaineRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Jason Hampton, 41, and Arthur Carter, 40, both of East St. Louis, were sentenced on February 16, 2018 for their roles in a cocaine distribution operation. Hampton was sentenced to 141 months of imprisonment, and Carter to 87 months. Both men pled guilty to the federal conspiracy charge in September, 2017. Hampton also pled guilty to possession of cocaine with intent to distribute.
At their change of plea hearings last September, both Hampton and Carter admitted receiving multiple kilogram quantities of cocaine from a Texas distributor, for re-sale in the St. Louis Metro-East. Three other co-defendants will be sentenced in March.
The investigation which resulted in the arrest and conviction of Hampton and Carter was conducted by the Drug Enforcement Administration and the St. Clair County Sheriff’s Office. The case is assigned to Assistant United States Attorney Robert L. Garrison.
Tax Return Preparer Indicted for Filing False Claims for Tax RefundsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 13, 2018, a federal grand jury returned a thirteen count indictment against Kimberly Bagneski (47) formerly of Waupun, Wisconsin. The Indictment alleges that Bagneski prepared and filed false tax returns to the IRS that claimed false and fictitious claims for taxpayer refunds, in violation of Title 18, United States Code, Sections 2 and 287.
According to the indictment, Bagneski prepared and electronically filed at least 20 false federal income tax returns seeking more than $90,000 in federal tax refunds. On these returns, Bagneski claimed false deductions, tax credits and false business income/losses. In addition, virtually all of the fraudulent tax refunds were diverted to bank accounts under her control.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Matthew Jacobs.
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For additional information contact:
Public Information Officer Dean Puschnig 414-297-1700
Syracuse Man Pleads Guilty to Threatening Death Against A New York Congressman and His FamilyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Patrick D. Angelo, 28, of Syracuse, NY, pleaded guilty to interstate communication of a threat before U.S. District Judge Mae A. D’Agostino. The charge carries a maximum penalty of five years in prison, a $250,000 fine, or both.
Assistant U.S. Attorneys Craig R. Gestring and Sean C. Eldridge of the U.S. Attorney’s Office for the Western District of New York in Rochester, who are prosecuting the case, stated that on Thursday, October 19, 2017, the Washington D.C. office of New York Congressman John Katko received a threatening voice mail that included a death threat to the Congressman and his family.
The message stated: “Listen Mr. Katko, if you support net neutrality, I will support you. But if you don’t support net neutrality, I will find you and your family and I will kill…you…all. Do you understand?” The message continued: “I will literally find all…of…you and your progeny and t- just wipe you from the face of the earth. Net neutrality is more important than the defense of the United States. Net neutrality is more important than free speech. Net neutrality is more important than health care. Net neutrality is literally the basis of the new society. That even if you don’t understand, how important it is, net neutrality is literally the basis of the new…free…society. So if you don’t support it, I am willing to lay down my li- (recording ends).”
Congressman Katko’s office reported the voicemail to the United States Capitol Police, Threat Assessment Section, which began an investigation in coordination with the Federal Bureau of Investigation. The telephone number that the call originated from traced back to the defendant.
As a result of the threat, security surrounding Congressman Katko was increased. Since Congressman Katko formerly served as an Assistant U.S. Attorney in the Northern District of New York, that Office was recused, and the case is being prosecuted by the United States Attorney’s Office for the Western District of New York.
“While citizens are certainly entitled to communicate their views on issues of importance to them to their elected officials,” said U.S. Attorney Kennedy, “there are and must be bounds to the manner in which such views may be expressed. As today’s plea makes clear, defendant overstepped those bounds. By making threats to the lives of Congressman Katko and his family, the defendant potentially faces not only a significant prison sentence but also, as a convicted felon, a loss of his right to vote. Ironically, yet fittingly, by abandoning rationale discourse and resorting to threats against a public official, the defendant has essentially rendered himself a mute in the political process. As a democratic republic, we cannot and will not tolerate true threats against those in public office.”
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Vadim Thomas, Special Agent-in-Charge, Albany Office; the New York State Police, under the Major Philip T. Rougeux; and the United States Capitol Police, under the direction of Matthew R. Verderosa.
Sentencing is scheduled for June 21, 2018, at 10:00 a.m. before Judge D’Agostino.
Stratford Woman Sentenced to 41 Months in Federal Prison for Role in 2 Fraud SchemesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on February 16, 2018, RACHAEL ALEXANDER, also known as Rachael Vierling, 40, of Stratford, was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for participating in two fraud schemes.
According to court documents and statements made in court, the first scheme involved the theft of postal money orders. ALEXANDER and her husband, Marc Anthony Alexander, devised a scheme to steal blocks of blank postal money orders from the U.S. Post Office in Old Greenwich. The Alexanders and others then imprinted the money orders with various denominations using a computer font designed to make them appear to be authentic. The Alexanders recruited Bernard Harris, of Bridgeport, into the scheme to organize others to cash the money orders, or deposit them into numerous bank accounts, either at an ATM or at a teller window. Harris recruited at least five individuals and paid them a portion of the proceeds. He then turned the bulk of the money over to the Alexanders. The Alexanders compensated Harris by giving him additional money orders that he cashed and converted to his own use.
The loss from this scheme was $313,570.
The second scheme involved the fraudulent sale of financed vehicles. In this scheme, the Alexanders took straw buyers to various car dealerships and had them fill out financing paperwork to buy high-end cars. Typically, the Alexanders would take the car and the straw buyers would sign a power of attorney form to allow them to obtain a new title for it. The Alexanders would then contact the Connecticut Department of Motor Vehicles and claim that the title had been lost and they needed a replacement title. At the DMV, they would present a fake letter from the car financing company stating that the loan had been paid off in full. After they received a new title, the Alexanders would sell the car to another dealer. The original car loans were not paid and went into default.
The straw buyers financed more than $1 million in fraudulent car loans during the course of this scheme.
The investigation revealed that the Alexanders used the money they stole to acquire a large number of luxury goods.
Judge Arterton ordered Rachael Alexander to pay restitution in the total amount of $443,807.97.
Marc Alexander, Rachael Alexander and Bernard Harris were arrested on April 26, 2016.
On January 17, 2017, Marc Alexander and Rachael Alexander each pleaded guilty to one count of conspiracy to commit wire fraud stemming from the postal money order scheme, and one count of conspiracy to commit mail and wire fraud stemming from the vehicle scheme.
On April 11, 2017, Marc Alexander was sentenced to 96 months of imprisonment.
Harris pleaded guilty to one to one count of conspiracy to commit wire fraud stemming from the postal money order scheme, and one count of wire fraud stemming from a separate fraudulent check scheme. On January 16, 2018, he was sentenced to 30 months of imprisonment.
Rachael Alexander, who is released on bond, was ordered to report to prison on April 18.
This investigation was conducted by the Connecticut Financial Crimes Task Force¸ U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, U.S. Secret Service, Federal Bureau of Investigation, Westport Police Department and Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Stiglar Man Pleads Guilty to Enticement of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Justimiano Perez Diaz, age 43, of Stigler, Oklahoma, pled guilty to Enticement Of A Minor Using The Internet, in violation of Title 18, United States Code, Section 2422(b), punishable by not less than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that from in or about September 2017, the exact date being unknown to the Grand Jury, until on or about October 16, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, did use a facility and means of interstate commerce, the Internet, to attempt to knowingly persuade, induce, and entice an individual whom he believed was 13 years old, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law, to wit: Title 21, Oklahoma Statute, Section 1123, Lewd or Indecent Proposals or Acts with a Child under 16.The charges arose from an investigation by the Wagoner Police Department and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
Sarasota Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Adam Daniel Young (27, Sarasota) with one count of receiving and two counts of possessing child pornography. If convicted, he faces up to 20 years in federal prison on each count.
According to the court filings, Young possessed more than 3,000 images and 25 videos of child pornography, including files depicting children under the age 12. Forensic evidence on his computer revealed that he had received and attempted to receive child pornography through an online file sharing program.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI’s Child Exploitation Task Force, which is comprised of local law enforcement agencies, including the Charlotte County Sheriff’s Office and the Bradenton Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Jose Resident Sentenced to Two Years in Prison for Passport Fraud and Related CrimesRead the Press Release
SAN JOSE – Donald Laurence Jason-White was sentenced to 24 months in prison for passport fraud, mail fraud, and wire fraud, announced Acting United States Attorney Alex G. Tse and Special Agent in Charge Matthew Perlman of the U.S. State Department’s Diplomatic Security Service (DSS) San Francisco Field Office. The sentence was handed down today by the Honorable Beth Labson Freeman.
Jason-White, 80, of San Jose, pleaded guilty on November 21, 2017, to passport fraud, wire fraud, and mail fraud. According to the plea agreement, in approximately 1992, Jason-White obtained a certified copy of a birth certificate that he knew belonged to a deceased person. Between 2005 and 2015, Jason-White used the identity of the deceased person to apply for a United States passport and to apply for and obtain benefits from the Social Security Administration and the Department of Housing and Urban Development (HUD). Jason-White admitted he obtained housing from HUD’s Section 8 program. He also admitted he defrauded the federal government out of more than $250,000 in cash and other benefits.
A federal grand jury indicted Jason-White on May 5, 2016, charging him with passport fraud, aggravated identity theft, social security fraud, making false statements to an agency of the United States, five counts of wire fraud, and six counts of mail fraud. Pursuant to his plea agreement, Jason-White pleaded guilty to one count each of passport fraud, in violation of 18 U.S.C. § 1542; wire fraud, in violation of § 1343; and mail fraud, in violation of 18 U.S.C. § 1341.
In addition to the prison term, Judge Freeman also sentenced the defendant to a five-year period of supervised release and ordered him to pay $274,765.49 in restitution. Jason-White will begin serving his sentence on April 4, 2018.Assistant U.S. Attorney Scott Simeon is prosecuting the case with the assistance of Ryka Barghi. The prosecution is the result of an investigation by the U.S. Department of State’s Diplomatic Security Service and the Office of Inspector General of the Department of Housing and Urban Development and the Office of Inspector General of the Social Security Administration.
Pittsburgh Felon to Spend 3½ More Years in Prison for Second Escape from Corrections CenterRead the Press Release
PITTSBURGH – Tyrenzo Morton was sentenced to 42 months in federal prison for escape from federal custody following a prior federal sentence, United States Attorney Scott W. Brady announced today.
Morton, 32, of Pittsburgh, was sentenced by United States District Court Judge Nora Barry Fischer. Morton’s sentence also includes a term of three years of supervised release following the prison sentence. The sentence that Morton escaped from this time was for a prior escape from federal custody following prior sentences for the commission of felon in possession of firearm crimes, one of which was committed while on bond for the other.
Morton’s escapes were from Renewal, Inc., a community corrections center located in Pittsburgh. Morton was serving the last parts of his prior federal prison sentences at Renewal when he escaped this time and last time. In conjunction with Morton’s sentencing for his most recent escape, the Court was informed by the prosecution that, while residing at Renewal, Morton engaged in threatening and aggressive behavior toward a female Renewal employee and was engaged in drug dealing.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The United States Marshals Service and the Pittsburgh Bureau of Police conducted the investigation leading to the conviction and sentence in this case.
Owner of Basketball Academy Pleads Guilty to Visa FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Michael A. Rawson, age 48, of the United Kingdom, pled guilty in federal court in Greenville, to conspiracy to commit visa fraud, a violation of Title 18, United States Code, Section 371. Senior United States District Judge Henry M. Herlong, Jr., of Greenville, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Rawson and other associates made false statements to the United States in an effort to get an L1 Visa, which allows for intra-company transfers if certain criteria are met, to aid in the establishment of a for-profit basketball academy in the United States: 22ft Basketball Academy. At one time 22ft Basketball Academy had relationships with Shannon Forrest Christian School and Anderson Christian School. A key false statement was that 22ft Dutch, a related entity, was operational in Europe and would remain so after Rawson immigrated to the United States to work with 22ft US. In truth, 22ft Dutch had no operational office and ceased to do business while Rawson was in the United States. Thus, there could be no legitimate intra-company transfer.
Ms. Drake stated the maximum penalty Rawson can receive is a fine of $250,000 and/or imprisonment for 5 years, supervised release of 3 years, plus a special assessment of $100.
The case was investigated by agents with the ICE – Homeland Security Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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New York Accountant Pleads Guilty in Stock Manipulation Scheme That Netted Millions in Illicit ProfitsRead the Press Release
NEWARK, N.J. – A Cedarhurst, New York, man today admitted his role in a long-running market manipulation scheme that netted millions in illegal profits between 2014 and 2016, U.S. Attorney Craig Carpenito announced.
Shaun Greenwald, 40, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of securities fraud conspiracy and one count of tax fraud conspiracy.
According to documents filed in this case and statements made in court:
From 2014 to 2016, Greenwald, Joseph Taub, 38, of Clifton, New Jersey, and others conspired to manipulate securities prices of numerous public companies by coordinating trading in dozens of brokerage accounts that they secretly controlled.
These “straw accounts” were held in the conspirators’ own names, the names of their family members, and the names of entities they controlled. Many of the accounts were opened in the names of individuals who neither controlled the accounts nor traded the securities held in the accounts. Taub funded many of these accounts and used the account holders to conceal the scheme from regulators and law enforcement.
The fraudulent trades typically involved two types of straw accounts. First, a “Winner Account” purchased a large block of shares in a particular security. Next, a “Loser Account” placed multiple small orders in the same security to create upward pressure on the stock price. Once the price of the security moved higher due to the Loser Account’s manipulative orders, the conspirators sold their large position in the Winner Account and the shares from any executed trades in the Loser Account. While the Loser Accounts would generally lose money, the conspirators expected the gains from the Winner Accounts to more than make up for them.
Taub was one of Greenwald’s clients. As part of the scheme, Greenwald opened brokerage accounts in his name or entities that he controlled. However, the vast majority of the funding for these accounts was provided by Taub, which Greenwald concealed on the account opening forms. Greenwald then provided the log-in and password information to Taub so that he and others could use the accounts for trades. In return, Greenwald was paid a portion of the profits made from his accounts.
Greenwald also admitted that he performed accounting services for the conspiracy, including calculated the taxes on profits made from the straw accounts. Taxes were paid at the straw account holders’ tax rates, which were typically lower than Taub’s rates, even though the account holders – per their agreements with Taub – were only getting a fraction of the profits. While Taub did provide the account holders funds for the taxes on his portion of the straw account profits, he failed to declare any of this income on his tax returns.
Each count to which Greenwald pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 5, 2018.Taub was charged by complaint on Dec. 12, 2016. The charges and allegations against Taub are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the SEC’s New York Regional Office for its assistance.
The government is represented by Assistant U.S. Attorneys Daniel Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark; and Assistant U.S. Attorneys Sarah Devlin and Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Marc Agnifilo Esq. and Joshua Kirshner Esq., New York
Nashville Man Sentenced to Nine Years in Prison for Federal Firearms ViolationRead the Press Release
Antonio Eugene Boyd, aka Tony T, 37, of Nashville, Tennessee, was sentenced last week to nine years in prison for being a felon in possession of a firearm, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
“The reckless actions of this defendant placed the lives of many school aged children in great peril,” said United States Attorney Don Cochran. “Armed felons have no place in our communities and we are aggressively increasing our efforts along with our law enforcement partners to remove those who pose such a grave danger to our law abiding citizens.”
According to court records, Boyd pleaded guilty in May 2017 to being a convicted felon in possession of a firearm. This followed an incident on September 15, 2016, in the Cayce Homes Public Housing Development, where Boyd fired approximately seven times from a 9mm pistol, at a vehicle occupied by two adults and a young child. Although no one was hit by the gunfire, at the time of the incident there were other young children in the area and a school bus picking up children for school.
The subsequent investigation determined that the pistol Boyd used had previously been stolen from a vehicle by another person, and Boyd obtained that pistol by trading cocaine for it. Boyd had previously been convicted in state court of robbery, two drug felonies, and being a felon in possession of a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. The case was prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Monroe County Resident Sentenced to Nine Years in Child Exploitation CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Judge William H. Steele sentenced Eric Davis, 39, of Monroeville, Alabama, to 108 months imprisonment for coercion and enticement of a minor. As part of the sentence, the judge ordered that Davis pay a $100 special assessment and receive a life term of supervised release upon release from custody. The judge also ordered Davis to undergo mental health and sex offender treatment as directed by the United States Probation Office.
On August 31, 2017, a federal grand jury for the Southern District of Alabama charged Davis with one count of coercion and enticement of a minor and one count of transfer of obscene material to a minor. On November 7, 2017, Davis pleaded guilty before Judge Steele to the coercion charge.
As part of his plea deal, Davis signed a factual resume that summarized his offense conduct. That document states that from around June 2016 to around July 2016, Davis used a facility of interstate commerce -- a cell phone -- to knowingly persuade, induce, entice, and coerce an individual who had not attained the age of eighteen years to engage in sexual activity. The victim was fifteen years old at the time of the offense, which occurred in Monroe County, Alabama. Davis knew that the victim was less than eighteen years of age when he committed the offense. On July 11, 2016, he was interviewed at the Excel Police Department. There, Davis admitted to exchanging explicit pictures with the victim via cell phone. When Davis was shown a penis picture found in the victim’s phone, he wrote and signed a statement saying, “This is the picture of my penis I sent to [the victim] from my old phone.” Davis said that he and the victim frequently texted about kissing and sex. In text messages, Davis and the victim texted explicit photos to one another and discussed sexual activity. Davis and the victim texted to coordinate a rendezvous, which they had on July 5, 2016. That evening, Davis had sex with the victim.
The Federal Bureau of Investigation and the Excel Police Department investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Martinsburg man admits to selling heroinRead the Press Release
MARTINSBURG, WEST VIRGINIA – Darnell Jermaine Fitzhugh, of Martinsburg, West Virginia, has admitted to heroin distribution, United States Attorney Bill Powell announced.
Fitzhugh, also known as “DC,” age 32, pled guilty to one count of “Distribution of Heroin.” Fitzhugh admitted to selling heroin on July 11, 2016 in Berkeley County, West Virginia.
Fitzhugh faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Jefferson County Sheriff’s Office investigated.U.S. Magistrate Judge Robert W. Trumble presided.
Man Sentenced to Prison for False Distress Call and ThreatsRead the Press Release
NORFOLK, Va. – A Newport News man was sentenced today to 56 months in prison for making a false distress call and threats to the U.S. Coast Guard.
Justin P. Stahmer, 39, was convicted by a federal jury on Nov. 13, 2017. According to court documents and evidence presented at trial, Stahmer made a false distress call on June 20, 2016, while several miles northeast of Cape Henry. Stahmer used the International Distress Frequency, VHF Channel 16, to call “man overboard,” despite being alone on his boat and knowing no one had fallen in the water. For over 45 minutes the Coast Guard sought more information from Stahmer over the radio and launched a full search for a person in the water, including deploying a 45-foot patrol boat, an 87-foot cutter, and a search and rescue helicopter. Once he was found, Stahmer initially denied making any distress call to the Coast Guard and then indicated he called the Coast Guard because he ran out of gas. As the Coast Guard Boarding Officers inspected Stahmer’s vessel, he became belligerent and angry. Ultimately, the Virginia Marine Resource Commission Police arrived and arrested Stahmer for boating under the influence of alcohol. While being transported back to shore, Stahmer began to kick and threaten one of the Coast Guard Boarding Officers, stating that Stahmer would “take him out” if he ever saw the Boarding Officer again.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Marty J. Martinez, Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Joseph L. Kosky and Special Assistant U.S. Attorney Brendan Gavin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-123.
Man Pleads Guilty to Committing over $1 Million in Tax FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 2, 2018, Dimas Chavez-Pina (age 29), of Milwaukee, Wisconsin, pled guilty to theft of government money, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Chavez-Pina agreed to pay $1,058,827.69 in restitution to the Internal Revenue Service. Chavez-Pina additionally agreed to be voluntarily deported from the United States and return to Mexico due to his lack of legal status in the United States.
According to the plea agreement, Chavez-Pina fraudulently obtained Individual Tax Identification Numbers (ITIN) from the IRS. An ITIN is what the IRS issues to individuals who cannot, due to their immigration status, obtain a Social Security number. Individuals who obtain an ITIN use it to file their income tax returns.
To obtain an ITIN, an applicant has to provide the IRS certain personal identifying documents. Chavez-Pina admitted to obtaining personal identifying documents from citizens of Mexico, fraudulently applying for ITINs in their names, and then filing fraudulent tax returns using the ITINs that he obtained.
In the fraudulent tax returns that he filed, Chavez-Pina claimed the Additional Child Tax Credit (ACTC). The ACTC reduces tax liability dollar for dollar, and the unused portion of a refundable credit is still payable to the taxpayer. So, when an individual has no income tax liability, a person may still file a tax return and receive a refund for the ACTC. Chavez-Pina falsely claimed dependents in the tax returns that he filed to receive the ACTC.
From 2011 through June 2014, Chavez-Pina received $1,058,827.69 in U.S. Treasury refund checks from his scheme. Chavez-Pina faces a mandatory minimum two years in prison, and a maximum of twelve years in prison for his offenses. He will be sentenced by United States District Judge Lynn Adelman on May 1, 2018. The case was prosecuted by Assistant United States Attorney Keith Alexander.
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For additional information contact:
Public Information Officer Dean Puschnig 414-297-1700
Luzerne County Man Guilty of Participating in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Charles Davis, III, age 46, of Wilkes-Barre, Pennsylvania, pleaded guilty on February 16, 2018, before Senior U.S. District Court Judge James M. Munley, to conspiring with others to distribute heroin in Luzerne County during February through November 2014.
According to United States Attorney David J. Freed, Davis admitted to transporting Desmond Mercer, the leader of the conspiracy, to more than 600 heroin transactions and to distributing heroin for Mercer to other customers in Luzerne County. Davis admitted to involvement in the distribution of between 100 and 400 grams of heroin, which is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.
Desmond Mercer, the leader of the drug conspiracy, previously pleaded guilty and was sentenced to 14 years in prison. Shaliek Stroman and Shaquan Murphy, two key associates of Mercer, were each sentenced to more than 12 years in prison for their roles in the conspiracy. Another member of the drug ring, Antuan Jamison, was sentenced to five years in prison.
Davis was indicted by a federal grand jury in February 2016, as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled Davis’ sentencing for May 21, 2018.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 maximum penalty under federal law for this offense is 40 years in prison, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of five years’ imprisonment. 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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Local Man Sent to Prison for Robbing Two BanksRead the Press Release
CORPUS CHRISTI, Texas - A Corpus Christi resident has been ordered to federal prison for his conviction of bank robbery, announced U.S. Attorney Ryan K. Patrick. Johnathan Samuel Borden, 32, pleaded guilty Nov. 20, 2017.
Today, Senior U.S. District Judge John Rainey handed Borden a 48-month-sentence to be immediately followed by three years of supervised release. He was also ordered to pay restitution to the banks.
On Jan. 6, 2017, law enforcement officers responded to a bank robbery at the Texas Bridge Credit Union in the 3100 block of Holly in Corpus Christi. After entering the bank, a male, later identified as Borden, handed the teller a bag and demanded money. Borden then left the bank with a significant amount of U.S. currency. During the investigation, agents were able to link Borden to an additional robbery that occurred Dec. 20, 2016, at the Navy Army Community Credit Union in the 9500 block of South Padre Island Drive in Corpus Christi. In that case, Borden again handed the teller a black bag, demanded money and left with it.
In federal custody since his arrest, Borden will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Corpus Christi Police Department conducted the investigation.
Local Man Convicted of Armed Drug Trafficking of Synthetic NarcoticsRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old Corpus Christi resident has admitted he possessed with intent to distribute synthetic cannabinoids and a firearm during a drug trafficking offense, announced U.S. Attorney Ryan K. Patrick.
On Feb. 27, 2017, Andrew Hernandez was arrested at a local restaurant in Corpus Christi for an outstanding felony warrant. As he was taken into custody, officers removed a loaded .380 caliber handgun from his pocket. As a previously convicted felon, Hernandez, is prohibited from possessing firearms and ammunition per federal law. At the time of arrest, officers also discovered several thousand dollars in U.S. currency and 72 packets of synthetic cannabinoids. Laboratory analysis confirmed the presence of FUB-AMB, which is controlled under the Controlled Substance Analog Act.
Synthetic cannabinoids are chemical compounds that mimic the psychoactive ingredient in marijuana. These chemical compounds can be applied to carrier mediums such as plant material and ingested using rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and is marketed as incense that can be smoked. It is commonly sold and known on the street as synthetic marijuana, fake weed, legal and by its popular brand names such as Spice, K2, Kush, Klimaxx, Mr. Nice Guy, Pot-Pourri, Cloud 9, Geeked Out and many others.
Senior U.S. District Judge John Rainey accepted the plea today and set sentencing for May 14, 2018. At that time, Hernandez faces up to 20 years and a possible $1 million fine for the synthetic drug conviction as well as a minimum of five years and up to life for the illegal possession of a firearm which must be served consecutively to any other sentence imposed.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Leesburg Gang Member Sentenced to 13 Years in Federal Prison for Carjacking and Firearms ChargesRead the Press Release
Ocala, Florida – Senior United States District Judge James D. Whittemore has sentenced Jonathan Kyle Lanier (24, Leesburg) to 13 years and 5 months in federal prison for carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of a crime of violence, and possessing a firearm as a convicted felon. A federal jury found him guilty on November 15, 2017.
According to court documents, on December 23, 2016, Lanier, along with his co-defendants Avery Tumer, Timotheus Reed, and Amy Scott, conspired to rob an individual of his money, other personal items, and his car by arranging a meeting at a gas station in Leesburg between the victim and Scott. The victim believed he was going to meet the woman only; however, shortly after he arrived, Lanier, Tumer, and Reed pulled the victim from his car and stole his wallet and other personal property. During the robbery, the three men wore masks and pointed firearms at the victim; Tumer later pistol-whipped the victim and took his car. All four individuals were arrested a short time later by officers from the Lake County Sheriff’s Office and the Leesburg Police Department.
On November 30, 2017, a federal jury found Tumer and Reed guilty for their roles in this case and they are currently awaiting sentencing. Scott previously pleaded guilty and was sentenced to 46 months in federal prison.
This case was investigated by the Federal Bureau of Investigation (Daytona Resident Agency), the Lake County Sheriff’s Office, and the Leesburg Police Department. It was prosecuted by Assistant United States Attorney Dale Campion.
KCK Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man who stored hundreds of child pornography photos on his computer was sentenced Tuesday to 78 months in federal prison, U.S. Attorney Stephen McAllister said.
Jesus H. Salcedo, 29, Kansas City, Kan., pleaded guilty to one count of possession of child pornography. In his plea, he admitted that investigators downloaded child pornography from his computer using a file sharing program. The photos included prepubescent boys engaged in sex acts. Investigators found 480 images and 73 videos containing child pornography on Salcedo’s computer.
McAllister commended the Overland Park Police Department, the FBI Cyber Crimes Task Force and Assistant U.S. Attorney Christine Kenney for their work on the case. For more information on the Department of Justice’s Project Safe Childhood program see https://www.justice.gov/psc .
Justice Department Settles National Origin Discrimination Claim Against New York RestaurantRead the Press Release
The Justice Department today announced it has reached a settlement with Food Love 125 Inc., d/b/a Ichiba Ramen, a New York City restaurant, to resolve the Department’s investigation into whether the restaurant violated the Immigration and Nationality Act’s (INA) anti-discrimination provision.
A worker’s complaint initiated the Justice Department’s investigation, which revealed that Ichiba Ramen’s former chef discriminated against a job applicant when it refused to hire him as a server because he is not Korean or Japanese. The investigation also revealed that prior chefs had not placed such limitations on the restaurant’s hiring of servers. The INA’s anti-discrimination provision prohibits employers with four to 14 employees from discriminating against individuals because of their national origin.
Under the settlement agreement, Ichiba Ramen will pay a civil penalty, undergo training on the INA’s anti-discrimination provision, and post notices informing workers about their rights under the INA. The restaurant also paid $1,760 in back pay to compensate the affected applicant.
“Today’s settlement should serve as a reminder to small employers that hiring discrimination based on national origin violates the INA’s anti-discrimination provision, and the Justice Department is committed to holding employers accountable for such violations,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. Title VII of the Civil Rights Act of 1964, as amended, prohibits national origin discrimination by employers that employ 15 or more workers.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Justice Department Reaches Settlement with West Hollywood-Based Vacation Company to Resolve ADA ViolationsRead the Press Release
LOS ANGELES – The Justice Department today reached a settlement with Atlantis Events, Inc., a cruise and resort vacation company with offices in West Hollywood, to ensure that individuals who are deaf or hard of hearing are provided effective communication when travelling with the company.
The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) in which individuals who are deaf alleged that Atlantis failed to provide them with effective communication on a cruise. Atlantis – which buys and resells cabins on cruise ships and rooms at resorts – cooperated with the Justice Department throughout the investigation.
Under the agreement, Atlantis will ensure that interpreters, transcription services, written exchanges, assistive listening devices, captioning, or other auxiliary aids and services are provided to individuals with hearing disabilities free of charge when necessary for effective communication. The company also agreed to designate an ADA liaison on every cruise to respond to disability-related requests from passengers.
In addition, Atlantis will pay a civil penalty of $10,000 to the United States and $9,000 in damages to the complainants.
“The ADA guarantees people with disabilities equal access to public accommodations, including communications access,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “People with disabilities who are deaf or hard of hearing must be given the opportunity to fully participate on cruises and at resorts, and enjoy the services and activities a vacation company offers.”
“Individuals with disabilities, including those who are deaf or hard of hearing, have a right under federal law to the equal enjoyment of the services that travel companies provide to the public,” said United States Attorney Nicola T. Hanna. “Atlantis is to be complimented for acknowledging its obligations under the Americans with Disabilities Act, and agreeing to implement policies and practices to ensure equal access and effective communication.”
Justice Department Reaches Settlement with Atlantis Events, Inc., to Resolve ADA ViolationsRead the Press Release
Today the Justice Department reached a settlement agreement with Atlantis Events, Inc., (Atlantis), a cruise and resort vacation company with offices in West Hollywood, California, to ensure that individuals who are deaf or hard of hearing are provided effective communication when travelling with the company.
The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) in which individuals who are deaf alleged that Atlantis failed to provide them with effective communication on a cruise. Atlantis cooperated with the Department throughout the investigation.
Under the agreement, Atlantis will ensure that interpreters, transcription services, written exchanges, assistive listening devices, captioning, or other auxiliary aids and services are provided to individuals with hearing disabilities free of charge when necessary for effective communication, and it will designate an ADA liaison on all of its cruises to respond to disability-related requests from passengers. In addition, Atlantis will pay a civil penalty of $10,000 to the United States and $9,000 in damages to the complainants.
“The ADA guarantees people with disabilities equal access to public accommodations, including communications access,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “People with disabilities who are deaf or hard of hearing must be given the opportunity to fully participate on cruises and at resorts, and enjoy the services and activities a vacation company offers.”
“Individuals with disabilities, including those who are deaf or hard of hearing, have a right under federal law to the equal enjoyment of the services that travel companies provide to the public,” said U.S. Attorney Nicola T. Hanna for the Central District of California. “Atlantis is to be complimented for acknowledging its obligations under the Americans with Disabilities Act, and agreeing to implement policies and practices to ensure equal access and effective communication.”
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Justice Department Reaches Agreement with Arizona Election Officials to Protect the Rights of Military and Overseas Voters in Arizona Special ElectionRead the Press Release
The Justice Department today announced that the United States District Court for the District of Arizona has approved an agreement between the Department and the state of Arizona to help ensure that military service members, their family members, and U.S. citizens living overseas have an opportunity to participate fully in the upcoming Feb. 27, 2018, special primary election and April 24, 2018, special general election to fill a vacancy in the state’s 8th Congressional District. The agreement is necessary to ensure compliance with the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).
The agreement provides additional time for state election officials to receive and count absentee ballots from eligible UOCAVA voters, in order to ensure that such voters will have sufficient time to receive and submit their absentee ballots for the Feb. 27, 2018 special primary election. Under the agreement, UOCAVA ballots sent back by mail will be accepted for an additional 10 days–until March 9, 2018–so long as they are executed and sent by Feb. 27, 2018 and otherwise valid. The agreement also requires that election officials take measures to notify UOCAVA voters of this extension and notify them of their options of returning their marked ballots by electronic upload or fax, or express mail at no expense to the voter. The agreement also provides additional steps, if needed, to protect UOCAVA voters for the April 24, 2018 special general election.
“This agreement reflects this Department’s deep commitment to protecting the right to vote for members of our armed forces, their families, and overseas citizens, and ensuring that these voters are afforded a meaningful opportunity to vote in all federal elections, including special vacancy elections,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “I commend Arizona, the Secretary of State’s office, and other state officials, who worked collaboratively with the Department to achieve our shared goal of providing UOCAVA voters a full and fair opportunity to participate in the state’s upcoming special election, and all future special federal elections.”
UOCAVA requires states to allow uniformed service voters, serving both overseas and within the United States, and their families, and U.S. citizens residing overseas to register to vote and to vote absentee for all elections for federal office. States are required to transmit absentee ballots to these voters, by mail or electronically at the voter’s option, no later than 45 days before each federal election, including special elections to fill vacancies for federal office.
Arizona law mandates a truncated election schedule for holding special elections to fill a vacancy for U.S. Representative, which prevented election officials from sending final ballots to UOCAVA voters by the 45th day before the Feb. 27, 2018 special primary election. Under the terms of the agreement, Arizona will also provide reports to the Department of the notice provided to affected voters, receipt of ballots for the special primary election, and transmission of ballots for the special general election. The state is also required to take the actions necessary to ensure that UOCAVA voters have a fair and reasonable opportunity to participate in future federal special elections.
More information about UOCAVA and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/uniformed-and-overseas-citizens-absentee-voting-act. Please report any complaints to the Civil Rights Division at 1-800-253-3931.
Judge Sentences Johnstown Heroin Dealer to 9 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court in Johnstown to 108 months in prison and three years’ supervised release on her conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Ava Blackwell, 25, of Johnstown, Pa.
According to information presented to the court, from Aug. 25, 2016, through Sept. 14, 2016, Blackwell conspired with a co-defendant to distribute and possess with the intent to distribute less than 100 grams of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Blackwell.
Jackson Woman Pleads Guilty in Murder for Hire PlotRead the Press Release
Jackson, Miss. – Velma White, 32, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III, to four counts of using a communications facility, a cellphone, to carry out a murder for hire plot, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 23, 2017, White contacted, via text messages from her cellular telephone, an undercover officer whom she believed to be a "hit-man." During a phone call, White explained to the undercover officer that she wanted her half-brother murdered, and she agreed to pay the undercover officer approximately $10,000 for the murder. Over the next few days, White and the undercover officer discussed and planned out the murder of White’s half-brother, with White given multiple opportunities to back out. However, White only affirmed her commitment to the murder scheme. White revealed that she was attempting to murder her half-brother in order to collect the proceeds of a $50,000 life insurance policy for which she was the sole beneficiary. White agreed to pay the undercover officer once she collected the life insurance money. White also expressed to the undercover officer her willingness to assist in other murder for hire plots in exchange for money.
"The swift actions and cooperation among our local and federal law enforcement agencies literally saved a person’s life and protected the public from a criminal who chose personal greed over human life. We will continue to be vigilant, expeditious and collaborative in investigating and prosecuting those who commit federal crimes," said U.S. Attorney Hurst.
White will be sentenced by Judge Jordan on May 21, 2018, at 9 a.m., and faces a maximum penalty of 10 years in prison and a $250,000 fine on each count.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Pearl Police Department, the Hinds County Sheriff’s Department and the U.S. Marshals Service. Assistant United States Attorney Carla J. Clark is prosecuting the case.
Hurricane felon pleads guilty to federal gun and drug crimesRead the Press Release
HUNTINGTON, W.Va. - A Hurricane man pled guilty today to federal gun and drug crimes, announced United States Attorney Mike Stuart. Malcolm Hodges, 25, entered his guilty plea to being a felon in possession of a firearm and possessing methamphetamine with intent to distribute. U.S. Attorney Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Dunbar Police Department.
“Drugs and guns are a bad combination. Either by itself can be deadly. Together they are lethal,” said U.S. Attorney Stuart. “Sadly, Hodges has earned a long time behind bars. The lesson is simple – don’t sell drugs and don’t illegally possess a gun.”
Hodges admitted that on September 1, 2016, he possessed a Smith and Wesson .45 caliber revolver. Officers recovered the weapon next to his car after he fled a DUI checkpoint in Putnam County. Hodges is prohibited from possessing any firearm because of a 2013 conviction in Kanawha County Circuit Court for wanton endangerment with a firearm.
Hodges also admitted to possessing with the intent to distribute over 72 grams of methamphetamine in Dunbar on April 23, 2017. Hodges threw the drugs out of his vehicle during a brief police pursuit, but officers with the Dunbar Police Department recovered the drugs shortly after the chase ended.
Hodges faces at least five and up to 50 years in federal prison when he is sentenced on May 21, 2018.
Assistant United States Attorney Matt Davis is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. This case is also 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, including methamphetamine. 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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Huntington man sentenced to prison for federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man caught with heroin in January 2015 was sentenced today to two years and a month in federal prison, announced United States Attorney Mike Stuart. Daniel Justin Watts, 32, previously pled guilty to a single-count indictment charging him with possession with intent to distribute heroin. U.S. Attorney Stuart commended the investigative efforts of the Huntington FBI Drug Task Force.
“A safe Huntington is a top priority for me and my office,” said U.S. Attorney Stuart. “I can assure you that aggressive prosecution of drug dealers and violent criminals is the cornerstone of our strategy to take back Huntington from the opioid crisis. The federal prison population is down 17% and there’s plenty of room at the inn for drug thugs.”
On January 7, 2015, agents with the Huntington FBI Drug Task Force arrested Watts in a parking lot at 1034 14th Street West in Huntington after observing him distributing heroin in the area. Officers transported Watts to the Huntington Police Department and, during a search, found heroin he had concealed in his groin area. The heroin was packaged for distribution, and Watts admitted that he intended to sell the drugs. As part of the plea agreement, Watts further admitted that he distributed heroin in Huntington during the months of December 2014 and January 2015.
Assistant United States Attorneys Joseph F. Adams and Stephanie S. Taylor handled the case. United States District Judge Robert C. Chambers imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Hudson County Man Sentenced to 46 Months in Prison for Robbing Jersey City BankRead the Press Release
NEWARK, N.J. – A Bayonne, New Jersey, man was sentenced today to 46 months in prison for robbing Bayonne Community Bank in Jersey City, New Jersey, on May 25, 2016, U.S. Attorney Craig Carpenito announced.
Patrick O’Boyle, 60, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of bank robbery. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On May 25, 2016, O’Boyle robbed the Bayonne Community Bank by approaching the teller and demanding all “your 100s, 50s, and 20s and make it quick because my car is double parked outside.” O’Boyle had his left arm clutched at his side as if he had something under his hooded sweatshirt, which the teller thought might have been a gun. The teller handed him cash, and O’Boyle fled the bank.
In addition to the prison term, Judge Wigenton sentenced O’Boyle to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and officers of the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Criminal Division in Newark.
Hobbs Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jeremy W. Gough, 41, of Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction.
Gough and seven other residents of Lea County, N.M., including four Mexican nationals, and a resident of Yuma, Ariz., were charged in a 20-count indictment filed in July 2017, alleging federal drug trafficking and money laundering offenses. The indictment was the result of a multi-agency investigation into a significant drug trafficking organization allegedly led by Jose Raul Mendivil-Berrelleza, 34, a Mexican national who resided in Hobbs, that allegedly imported methamphetamine and cocaine into Lea County from Mexico through Arizona.
The investigation, which was led by the DEA and included HSI and the Lea County Drug Task Force of HIDTA Region 6, was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the course of the investigation, law enforcement authorities seized approximately 13 kilograms (28.6 pounds) of pure methamphetamine and 1.45 kilograms (3.2 pounds) of cocaine, a firearm and $19,000 in cash.
The 20-count indictment charged alleged ringleader Mendivil-Berrelleza and seven co-defendants with conspiracy, methamphetamine and cocaine trafficking, and money laundering offenses. Count 1 of the indictment charged all eight defendants with participating in a conspiracy to traffic methamphetamine and cocaine in Lea County and elsewhere between Nov. 2016 and July 2017. Count 2 charged Mendivil-Berrelleza and Roberto Rendon-Duran, 70, of Yuma, Ariz., with participating in an international money-laundering conspiracy. Counts 3 through 5 charged certain defendants with methamphetamine trafficking offenses and Count 6 charges certain defendants with a cocaine trafficking offense. Counts 7 through 20 charged certain defendants with using communications devices to facilitate their drug trafficking activity.
On Dec. 13, 2017, Gough pled guilty to conspiracy and possession of methamphetamine with intent to distribute. In entering the guilty plea, Gough admitted that from Nov. 2016 through June 2017, he conspired with others to distribute methamphetamine in Hobbs by having methamphetamine delivered to Gough’s residence from his source of supply, which Gough would then deliver to other individuals in Hobbs through the use of couriers. Gough further admitted that on Nov. 5, 2016, he possessed approximately 152 grams of methamphetamine which he intended to sell to other individuals in Hobbs.
Four of Gough’s co-defendants have previously entered guilty pleas and are pending sentencing hearings. Two co-defendants have entered pleas of not guilty and are pending trial. Miguel Angel Luna-Arredondo has yet to be arrested and is considered a fugitive. Charges in indictments and criminal complaints are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the DEA and HSI offices in Las Cruces and the Lea County Drug Task Force with assistance from the Lea County Sheriff’s Office and the Hobbs Police Department. Assistant U.S. Attorneys Terri J. Abernathy and Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Hazleton Man Indicted on Drug Trafficking ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kevin Charles Brown, age 38, of Hazleton, Pennsylvania, was indicted by a federal grand jury on drug trafficking charges.
According to United States Attorney David J. Freed, the indictment alleges that in 2016 Brown conspired to distribute heroin, fentanyl and cocaine and delivered heroin and fentanyl on multiple occasions.
The case was investigated by the Office of Attorney General’s Bureau of Narcotic Investigations, the Luzerne County Drug Task Force and the Federal Bureau of Investigations (FBI). Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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 maximum penalty under federal law for this offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. 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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Harrisburg Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Washington, age 43, of Harrisburg, Pennsylvania, was indicted on February 14, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Washington possessed with the intent to distribute cocaine base, heroin, psychostimulants, fentanyl, and clonazepam on August 7, 2017, in Harrisburg. The indictment also alleges that Washington possessed three rifles and three handguns during and in relation to his drug trafficking activities. It is further alleged that at least one of the handguns had previously had its serial number obliterated.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Department. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.]
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. 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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Fulton Man Sentenced for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man was sentenced in federal court today for receiving and distributing child pornography after his lost cell phone, which contained images of child pornography, was turned in to law enforcement.
Anthony Quin Hodges, 51, of Fulton, was sentenced by U.S. District Judge Brian C. Wimes to seven years and three months in federal prison without parole.
Hodges, who pleaded guilty on May 9, 2017, admitted that he had been viewing child pornography from a variety of websites for approximately two to three years and storing the images on his Google Photos account. Hodges used his cell phone for searching, maintaining and distributing images of child pornography.
Two Fulton residents turned in the phone, which Hodges said had been lost or stolen, to the Fulton Police Department on Jan. 17, 2017, after they found it abandoned in their driveway. Prior to reporting the incident to law enforcement, the residents powered on the phone to try to identify the owner. Upon trying to locate the owner of the phone, they discovered images child pornography. One of the residents also opened the Facebook icon and observed a Facebook page for Hodges. Investigators obtained a search warrant for the phone and discovered pornographic images of prepubescent children as well as links to apparent child pornography websites.
Hodges also admitted sending unsolicited images of child pornography to an individual. Investigators interviewed the individual who received the text message from Hodges, which contained child pornography. The individual reported he received pornographic images of prepubescent females from Hodges on several occasions. He did not solicit these images, and repeatedly told Hodges to stop sending him child pornography. The individual repeatedly warned Hodges it was illegal to possess child pornography.
Hodges was already under investigation at the time his cell phone was turned in to law enforcement. On Oct. 24, 2016, a Boone County Cyber Crimes Taskforce detective received a CyberTip from the National Center for Missing and Exploited Children. Google had filed a complaint about an account holder, later identified as Hodges, who uploaded images of child pornography to Google Photos. Shortly after Hodges was identified by law enforcement, his cell phone was turned in to the police department.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Boone County Cyber Crimes Taskforce and the Fulton, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Four Individuals Charged with Bank Fraud and Identity TheftRead the Press Release
A six-count indictment was unsealed earlier today in federal court in Brooklyn charging Christian Hicks, Timel McRae, Stanley Valon and Roman Guevara with conspiracy to commit bank fraud, bank fraud, access device fraud and aggravated identity theft in connection with a scheme to obtain funds from financial institutions by using victims’ personally identifiable information. Defendant Roman Guevara will be arraigned later today at the United States Courthouse in San Jose, California. Defendant Stanley Valon will be arraigned later today at the United States Courthouse in Allentown, Pennsylvania. Defendants Christian Hicks and Timel McRae were previously arrested on a complaint, and their arraignment on the indictment will be scheduled later this month.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the indictment, the defendants used other people’s personally identifiable information, together with false information, to obtain loans by fraud and steal money from banks,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, is committed to protecting our financial system from those who use fraud to line their own pockets.”
“As alleged, the defendants falsely represented their financial standing at the expense of others in order to receive loans and credit offers they didn’t qualify for—plain and simple,” stated FBI Assistant Director-in-Charge Sweeney. “This is not a crime to be taken lightly, and as our charges today prove, this type of dishonorable behavior will not go unpunished.”
According to court filings, the defendants obtained other persons’ personally identifiable information, such as their dates of birth and social security numbers, by promising, among other things, to enter into joint vehicle ownership ventures with those persons or to improve their credit scores. After securing this information, the defendants used it, as well as false employment and salary information contained in forged documents they generated, to apply for automobile loans, obtain credit cards and secure lines of credit in the other persons’ names. The defendants used all of the funds provided by financial institutions as a result for their own purposes and not, as they had promised, to enter into joint vehicle ownership or improve anyone’s credit scores. In the course of their fraudulent scheme, the defendants applied to financial institutions for automobile loans, lines of credit and credit cards with a value of more than $1.5 million.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney William P. Campos is in charge of the prosecution.
The Defendants:
CHRISTIAN HICKS
Age: 41
Queens, New YorkTIMEL MCRAE
Age: 41
Brooklyn, New YorkSTANLEY VALON
Age: 33
Hempstead, New York
ROMAN GUEVARA
Age: 48
Sunnyvale, CaliforniaE.D.N.Y. Docket No. 18-CR-0085 (MKB) (VMS)
Former Youth Organizer Sent to Prison for Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A former teen mentor and founder of a nonprofit youth organization has been ordered to federal prison following his conviction of sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Ryan K. Patrick.
Kevin Ray McMillan, 38, of Corpus Christi, was a former teen mentor with the Boys and Girls Club of Corpus Christi and founder of Texas Youth Entrepreneurs - a nonprofit youth organization that mentors aspiring young future business owners. He pleaded guilty Oct. 16, 2017.
Today, U.S. District Judge Senior U.S. District Judge John D. Rainey handed McMillan a 240-month sentence. Additional information was also presented today, including testimony from the victim and her parents who described the impact the crime had to the victim and her family. In handing down the sentence, the court noted that this type of crime destroys families. McMillan was further ordered to pay $18,066 in restitution to the victim and will serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
In May 2017, authorities learned McMillan had been sending sexually-explicit text messages via cellular telephone to a juvenile female. The investigation led to the discovery that McMillan had engaged in sexual activity with the young girl, which was photographed via cellular telephone. He was taken into custody as he was traveling to engage in sexual activity with a minor.
McMillan was arrested on federal charges in May 2017 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Jewelry Store Manager Pleads Guilty to Bank FraudRead the Press Release
Frank Dunkow, 52, of Wellington, pled guilty before United States District Judge Robin L. Rosenberg, to bank fraud involving his repeated sales of jewelry to individuals using counterfeit credit cards in 2010-2011.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Dunkow pled guilty to Count 5 of the Indictment, which charged him with bank fraud, in violation of Title 18, United States Code, Section 1344(2) (Case No. 17-CR-80192-CR-ROSENBERG). At sentencing, he faces a maximum of 30 years imprisonment and up to $1 million in fines.
According to the court record, Dunkow was the store manager at Littman Jewelers in the Wellington Mall and directed his employees to accept counterfeit credit cards used by individuals on numerous occasions to buy expensive pieces of jewelry. Often, the first credit card presented by the co-conspirators would be declined, leading the buyers to present a second, third, or more credit cards until the charge was processed.
Between June 2010 and March 2011, dozens of such sales were processed by Dunkow and his staff, leading to just under $400,000 in financial losses.
Mr. Greenberg commended the investigative efforts of PBSO, USPIS and USSS. This case is being prosecuted by Assistant United States Attorneys Lauren Jorgensen and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Head on Enfield Community Development Corporation Charged with Stealing Government FundsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Enfield Police Chief Carl Sferrazza today announced that DARRIN LAMORE, 47, of Enfield, has been charged by a federal criminal complaint with stealing government funds from the Enfield Community Development Corporation.
On February 16, 2018, LAMORE appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and was released on a $25,000 bond.
As alleged in court documents, LAMORE was the executive director of the Enfield Community Development Corporation (“ECDC”), a non-profit corporation that oversees economic development projects in Enfield, primarily in the Thompsonville section of the town. The ECDC is supported with federal funds administered by the State of Connecticut. From June 2012 to October 2015, LAMORE conspired with an employee of the Town of Enfield to falsify invoices and divert funds intended for economic development in Enfield and apply them to LAMORE’s salary. Through this scheme, LAMORE stole more than $95,000 from the ECDC.
The complaint charges LAMORE with theft from a program receiving federal funds, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation, and the Enfield Police Department. The Task Force also includes members from the Internal Revenue Service, Criminal Investigation Division, U.S. Department of Housing and Urban Development – Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Foreign National Arrested on Second-Degree Murder ChargeRead the Press Release
Lewis Bennett, 41, a dual citizen of Australia and the United Kingdom, was arrested by the FBI on a criminal complaint charging him with second-degree murder of his wife, Isabella Hellman, within the special maritime and territorial jurisdiction of the United States.
Benjamin G. Greenberg, United States Attorney of the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Thomas E. Robarge, Special Agent in Charge, United States Coast Guard Investigative Service (CGIS), Southeast Region, made the announcement.
The complaint charges Bennett with second-degree murder of Hellman, a naturalized U.S. citizen, in violation of Title 18, United States Code, Section 1111(a). Bennett was arrested in Miami on February 20, 2018.
According to the criminal complaint, in the early morning of May 15, 2017, the United States Coast Guard (USCG) received an emergency alert approximately 26 nautical miles from Cay Sal Bank, Bahamas, in international waters. Bennett also reported via phone that he was in distress in the same general location around the same time.
It is alleged that Bennett reported he was on board an approximately 40-foot catamaran with his wife, Hellman, sailing from Cuba to Florida. Bennett stated that he had retired below to sleep, leaving Hellman on watch, and was awoken by a crash. Bennett claimed that he moved topside, and Hellman was not there. Bennett indicated that he eventually realized the catamaran was taking on water, gathered his belongings, and abandoned ship to his life raft.
According to the complaint, an USCG helicopter ultimately rescued Bennett from a life raft in international waters, but Hellman was never located. During the search and rescue operation for Hellman, USCG took video and photographs of Bennett’s capsized catamaran. Video and photographs of the catamaran appear to show that damage to a small portion of each hull was in nearly the exact same location and came from the inside of the catamaran. These videos and photographs also showed that two escape hatches were open, which would cause water to enter the catamaran.
The complaint alleges that an associate professor of naval architecture, who analyzed evidence collected in the investigation, stated in a report detailing his findings that it did not appear the catamaran sinking was caused by accidental damage; rather, that the catamaran was scuttled. The complaint also alleges that Bennett did not activate his satellite phone and register his Personal Locator Beacon, until he was in Cuba in mid-May 2017, after he and Hellman had already traveled from St. Maarten to Puerto Rico, and from Puerto Rico to Cuba. It is alleged that the voyage from St. Maarten would have warranted having an activated satellite phone and registered Personal Locator Beacon as life-saving devices. However, Bennett allegedly waited to activate those devices until the final leg of his voyage to ensure his own rescue and survival after murdering his wife and intentionally scuttling his catamaran.
“The arrest of Mr. Bennett is the result of the vigorous investigation by prosecutors in this office and our federal law enforcement partners. Together, we were able to uncover the truth about what occurred aboard the catamaran, resulting in a tragic death,” stated U.S. Attorney Benjamin G. Greenberg.
“The FBI has the authority to investigate specific violent crimes committed against Americans and American interests overseas, including crimes on the high seas,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “We take this responsibility seriously. We commend the U.S. Coast Guard for their professionalism and close cooperation with this case.”
“The Coast Guard Investigative Service prides itself in being one of the premiere maritime law enforcement agencies, conducting professional and thorough maritime investigations,” said Thomas E. Robarge, Special Agent in Charge, CGIS Southeast Region. “We are honored to have worked jointly with the FBI and U.S. Attorney’s Office in reaching said objective.”
Bennett is scheduled to make his initial appearance before U.S. Magistrate Judge Edwin G. Torres, on February 21, 2018, at 2 p.m. If convicted, Bennet faces a potential maximum sentence of life imprisonment.
Mr. Greenberg commended the investigative efforts of the FBI and CGIS in this matter. This case is being prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer and Special Assistant U.S. Attorney Emily A. Rose.
A criminal complaint is merely an allegation and every defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Felon in Possession Sentenced to 120 Months ImprisonmentRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Martell McCoy, was sentenced to 120 months in prison, the maximum allowed by law, on February 14, 2018, for possession of a firearm by a convicted felon, before the Honorable Marc T. Treadwell, in Macon, Georgia.
The evidence showed that June 4, 2016 law enforcement officers responded to 176 Helen Circle in Milledgeville after having received information that McCoy was at the location. McCoy previously had been barred from the location by a court order. Police located McCoy inside of the residence. McCoy was arrested and a subsequent search of the residence revealed powder cocaine and a Lorcin .380 caliber semi-automatic pistol. McCoy had prior felony convictions for attempted possession with intent to distribute cocaine and aggravated assault.
“This is the case of a person with a prior felony conviction for a violent crime who not only ignored the law which prevented him from possessing a firearm, but did so at a home from which he had been barred for the protection of those living there. Since there is no parole in the federal system, at least for the next ten years Mr. McCoy won’t be able to thumb his nose at the law, the courts and society in the manner in which he did in this situation,” said United States Attorney Peeler.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The investigation of this matter was conducted by the Baldwin County Sheriff’s Office in conjunction with the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Kimberly Easterling prosecuted the case.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.