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Monday 8 January 2018
Tallahassee Man Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
TALLAHASSEE, FLORIDA – Michael A. Chmielewski, 38, of Tallahassee, a former State of Florida legislative staffer, was sentenced Friday to 10 years in prison after being convicted on September 29, 2017, of attempted enticement of a minor. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2017, undercover investigators conducted “Operation Cupid’s Arrow” to identify individuals seeking to engage in sexual activity with minors. Chmielewski responded to a Craigslist advertisement in which an undercover officer posed as a 14-year-old girl named “Sara.” Over two days, Chmielewski continued his conversation with “Sara” on the chat messaging application Kik, discussed sexual activity with “Sara,” and traveled to meet “Sara” in person to have sex. Chmielewski was arrested after arriving at a store to meet “Sara.”
U.S. Attorney Canova said: “Together with our law enforcement partners, my office will prosecute to the fullest extent any child predators who lurk in the shadows of the internet seeking to destroy the lives of innocent young children.”
“When this man thought he was going to sexually assault a minor, law enforcement stopped him in his tracks,” said HSI Tampa Special Agent in Charge James C. Spero. “Working with our law enforcement partners in the Internet Crimes Against Children task force, HSI special agents have ensured this predator is held accountable for his crimes.”
The case was investigated by the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, the Tallahassee Police Department, the Cocoa Police Department, the United States Immigration and Customs Enforcement Homeland Security Investigations, the U.S. Marshals, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Tallahassee Man Indicted for Federal Child Pornography OffensesRead the Press Release
TALLAHASSEE, FLORIDA – Cody Daniel Davis, 23, of Tallahassee, was arraigned Friday in the U.S. District Court in Tallahassee after a federal grand jury returned an indictment charging him with receipt, possession, and access with intent to view child pornography. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between May 2016 and June 2017, Davis received and possessed child pornography. The trial is scheduled for February 12, 2018, at 8:15 a.m.
For the receipt charge, the minimum penalty is 5 years, and the maximum penalty is 20 years in prison. For the possession charge, the maximum penalty is 20 years in prison.
The case is being investigated by the Leon County Sheriff’s Office, the United States Immigration and Customs Enforcement Homeland Security Investigations, and the Florida Department of Law Enforcement. The case is being prosecuted by Assistant United States Attorney Christopher J. Thielemann.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Statement by U.S. Attorney Andrew E. Lelling Regarding Federal Marijuana EnforcementRead the Press Release
I understand that there are people and groups looking for additional guidance from this office about its approach to enforcing federal laws criminalizing marijuana cultivation and trafficking. I cannot, however, provide assurances that certain categories of participants in the state-level marijuana trade will be immune from federal prosecution.
This is a straightforward rule of law issue. Congress has unambiguously made it a federal crime to cultivate, distribute and/or possess marijuana. As a law enforcement officer in the Executive Branch, it is my sworn responsibility to enforce that law, guided by the Principles of Federal Prosecution. To do that, however, I must proceed on a case-by-case basis, assessing each matter according to those principles and deciding whether to use limited federal resources to pursue it.
Deciding, in advance, to immunize a certain category of actors from federal prosecution would be to effectively amend the laws Congress has already passed, and that I will not do. The kind of categorical relief sought by those engaged in state-level marijuana legalization efforts can only come from the legislative process.
Shreveport felon sentenced to 63 months in prison for possessing sawed-off shotgunRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a Shreveport man was sentenced last week to 63 months in prison for possessing a sawed-off shotgun hidden behind a wall.
Dylan G. Fausto, 25, of Shreveport, La., was sentenced Friday by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. According to the September 14, 2017 guilty plea, law enforcement agents searched Fausto’s residence on January 2, 2017 while executing a search warrant for another individual. During the search, they found a sheetrock panel leaning against a wall in the master bedroom closet. Behind the panel, agents could see the end of a shotgun and discovered it was a loaded sawed-off 12-gauge Mossberg pump shotgun. Fausto was previously convicted of a felony and is prohibited from possessing a firearm.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, U.S. Marshals Service and Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Shreveport felon pleads guilty to possessing three handguns on court house propertyRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a Shreveport man who was previously convicted last week of a felony pleaded guilty to possessing three handguns he tried to hide near the U.S. court house.
Deantre D. Caldwell, 30, of Shreveport, pleaded guilty Friday before U.S. District Judge Elizabeth E. Foote to one count of possession of a firearm by a convicted felon. According to the guilty plea, Caldwell was traveling in the front passenger seat of a car that was rear-ended on April 24, 2017 near the intersection of Caddo and Market streets. The two drivers and Caldwell exited the vehicle. Caldwell had one of the drivers retrieve a backpack containing firearms from the front seat of the car he was traveling in, and he hid it in bushes outside of the Tom Stagg Federal Building and U.S. Court House. When officers arrived, a guard on duty at the federal court house informed the officers that he had seen Caldwell move the backpack. Officers found the bag, and it contained a Diamondback, model: DB-15, multi-caliber pistol; a Glock, model: 27GEN4, .40 caliber pistol; and a Glock, model 30GEN4, .45 auto caliber pistol. The drivers said the backpack belonged to Caldwell. The defendant was convicted of illegal use of a weapon on February 21, 2007 in Caddo Parish and was restricted from possessing firearms.
Caldwell faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of April 27, 2018.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields is prosecuting the case.
Ryan K. Patrick Sworn in as 23rd United States Attorney for the SDTXRead the Press Release
HOUSTON – Chief U.S. District Judge Lee H. Rosenthal has sworn in Ryan K. Patrick as the 23rd presidentially-appointed United States Attorney for the Southern District of Texas (SDTX). He began his duties immediately. As the United States Attorney for the SDTX, Patrick is the chief law enforcement officer responsible for prosecuting and defending the interests of the United States in the seventh largest district in the nation.
Patrick, of Houston, took the oath of office at 8:45 a.m. today before an audience including Judge Rosenthal’s staff, federal court personnel and Assistant U.S. Attorneys and staff. Upon administering the oath, Judge Rosenthal noted his energy, commenting that as soon as receiving his Presidential commission, Patrick called her saying, “I’m ready. When can we do this?”
Information about a possible media availability will be provided at a later date.
President Trump nominated Patrick to serve as U.S. Attorney for this district on Nov. 2, 2017, upon the recommendation of U.S. Senators John Cornyn and Ted Cruz. The full Senate unanimously confirmed his appointment on Dec. 20, 2017.
Patrick began his a career as an Assistant District Attorney in Harris County. During that time, he was responsible for the prosecution of narcotics trafficking cases and illegal pill mill operations in the Major Offenders Division.
In 2012, then Texas Governor Rick Perry appointed Patrick to be a judge at the 177th state district court. He was elected to a full four-year-term in 2012.
Prior to his current position, Patrick was in private practice, serving as the managing partner of The Law Office of Ryan Patrick PLLC and senior counsel with HooverSlovacek LLC where he focused on felony criminal defense work.
In swearing Patrick in today, Judge Rosenthal noted the job would not be an easy one, stating that the SDTX is not an easy district. She explained that the SDTX is on the front lines due to geography, time and politics which was never more true than it is now. She further commented that the job is one of the most challenging out there, but told the audience that “he is good to go!”
The SDTX, 7th largest in terms of personnel, typically prosecutes more cases against more defendants than most other USAOs nationwide, representing 43 counties and 8.3 million people and covering 44,000 square miles. This district currently comprises seven U.S. District Court divisions with federal district courts in Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo. The United States Attorney's office, headquartered in Houston, has five additional branch offices in Corpus Christi, Brownsville, McAllen, Laredo and Victoria to staff all seven divisions.
Roswell City Councilman convicted of producing child pornographyRead the Press Release
ATLANTA – Former Roswell, Georgia, city council member Kent Igleheart has pleaded guilty to four counts of producing child pornography, one count of receiving child pornography, and one count of possessing child pornography.
“By persuading his minor victims to create and share graphic images of themselves online, Igleheart has caused these children to suffer ongoing and irreparable harm,” said U.S. Attorney Byung J. “BJay” Pak. “No one expects to see a community leader behave in this kind of heinous manner, and this betrayal of public trust underscores the need for parents to remain aware of how their children are using the internet and social media.”
“There is no sentence that can lessen the harm that has been caused to these young children, but at least this suspect will be stopped from pursuing his egregious acts,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Unfortunately, this is another stark reminder to parents to be extremely vigilant when their children go online and use social media.”
According to U.S. Attorney Pak, the charges, and evidence presented at court: In October 2016, E.B. then 17 years old, contacted the DeKalb County Internet Crimes Against Children Unit to report that she had been communicating online since she was 13 years old with someone who had portrayed himself to be 17 years old. E.B. reported that she had exchanged sexually graphic photographs and had sexually explicit conversations with the individual. E.B. later discovered that the person with whom she was communicating was Igleheart – not the teenage boy depicted in Igleheart’s profile photograph.
Igleheart acknowledged that he and E.B. had exchanged sexually graphic photographs beginning when she was 13 years old. He had also booked a hotel and made plans to meet with E.B. on October 20, 2016, to engage in sexual activity with her. Investigators arrested him when he arrived at the Northlake Mall, the pre-arranged location. DeKalb County investigators and the FBI conducted searches of Igleheart’s phones and computers and found some of the images that E.B. had produced and sent to the defendant at his request.
Searches of Igleheart’s phones and computers also revealed that he posed online as “Kent Allen.” He presented himself as a teenage boy between the ages of 14 and 17 years and engaged in sexually graphic communications with numerous teenage girls, some of whom were as young as 13 years old. During these conversations, Igleheart persuaded and enticed the girls to take photographs of their genitalia and videos of themselves engaging in sexual conduct and transmit the images to him via the Internet.
Kent Igleheart, 54, of Roswell, Georgia, was convicted of four counts of producing child pornography, one count of receiving child pornography, and one count of possessing child pornography. His sentencing hearing is scheduled for March 26, 2018, before U.S. District Judge Amy Totenberg.
This case was investigated by the Federal Bureau of Investigation, with assistance from the DeKalb County, Georgia, Police Department.
Assistant U.S. Attorneys Yonette Sam Buchanan and Richard S. Moultrie, Jr., prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Ronald Van Den Heuvel Sentenced to Three Years in Prison for Bank FraudRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on January 5, 2018, Ronald Van Den Heuvel (age: 62) of De Pere was sentenced to three years in federal prison. Van Den Heuvel had pleaded guilty to conspiring to defraud Horicon Bank, a federally insured financial institution, by obtaining loans based on false representations in violation of 18 U.S.C. § 371. Chief United States District Judge William C. Griesbach also ordered Van Den Heuvel to serve three years of supervision after his release from prison and to pay $316,445.79 in restitution to the bank.
The conspiracy occurred in 2008 and 2009 during which Van Den Heuvel held himself out as a successful businessman in the Green Bay area. In January 2008, Van Den Heuvel persuaded a Horicon Bank loan officer, Paul Piikkila, to approve a $250,000 loan to one of Van Den Heuvel’s companies. Thereafter, Horicon Bank officials instructed Piikkila not to loan any additional funds to Van Den Heuvel or his businesses because Van Den Heuvel posed too great a credit risk. To skirt that instruction, Van Den Heuvel and Piikkila arranged a series of loans, totaling over $1 million, to straw borrowers for the benefit of Van Den Heuvel and his business entities. The straw borrowers had no intention of paying back the loans and believed that Van Den Heuvel would be responsible for the loans.
The straw borrowers included Van Den Heuvel’s live-in nanny, who depended upon the Van Den Heuvels for her livelihood. Another straw borrower was Van Den Heuvel’s administrative assistant, whom he named an officer of a limited liability company for the purpose of taking out the loan. The loans generally were not used for the business purposes represented on the loan applications. Van Den Heuvel failed to repay many of the loans. Horicon Bank incurred substantial losses even after trying to recover the collateral pledged for the loans. Piikkila has also pleaded guilty to the conspiracy and is scheduled to be sentenced next month.
During sentencing, Chief Judge Griesbach emphasized the seriousness of the offense and admonished Van Den Heuvel for trying to deny responsibility for his conduct. The Court stated: “Mr. Van Den Heuvel presents himself as a selfless entrepreneur and philanthropist even today. It is a lie.”
This case was investigated by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation. It was prosecuted by former Assistant United States Attorney Mel S. Johnson and Assistant United States Attorney Matthew D. Krueger.
Van Den Heuvel also faces additional federal criminal charges in a separate case, United States v. Van Den Heuvel, 17-CR-170. The indictment in that case alleges that from 2011 to 2015, Van Den Heuvel engaged in a scheme to defraud lenders and investors related to his Green Box business plan. Van Den Heuvel has pleaded not guilty in that case. The public is cautioned that an indictment is merely an accusation and the defendants are presumed innocent unless and until they are proven guilty.
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For additional information contact:
Acting Public Information Officer Elizabeth Makowski (414) 297-1700
Ron Parsons Takes the Helm as the 42nd U.S. Attorney for the District of South DakotaRead the Press Release
Ronald A. Parsons, Jr. has been sworn in as the 42nd United States Attorney for the District of South Dakota. He was sworn in by U.S. District Judge Karen E. Schreier at a brief ceremony in Sioux Falls, South Dakota, on January 5, 2018. He began his duties immediately.
As U.S. Attorney, Mr. Parsons is the chief law enforcement officer responsible for prosecuting and defending the interests of the United States in the District of South Dakota. Mr. Parsons was nominated by President Donald J. Trump, and he was recently confirmed by the U.S. Senate, to serve as the District’s U.S. Attorney.
Before his confirmation, Mr. Parsons was a partner at the law firm of Johnson Janklow Abdallah Reiter & Parsons LLP. He received his B.A. from the University of Minnesota and his J.D. from the University of South Dakota School of Law. Following law school, he clerked for the Honorable Roger L. Wollman, Circuit Judge, U.S. Court of Appeals for the Eighth Circuit.
“I’m very grateful for the appointment and excited to be joining such a talented and dedicated team of public servants,” said Parsons.
Mr. Parsons lives in Sioux Falls with his wife and daughter.
Rochester Man Arrested on Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Cavico, Jr., 49, of Rochester, NY, was arrested and charged by criminal complaint with being a felon-in-possession of a firearm and with possessing a firearm with an obliterated serial number. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Scott S. Allen, Jr. and Paul C. Parisi, who are handling the case, stated that according to the complaint, on December 15, 2017, law enforcement officials from the LeRoy, NY Police Department responded to a domestic dispute in LeRoy. Upon arrival, officers saw the defendant on top of a female with a pistol at his side. The pistol’s serial number had been obliterated. A third party witness stated that Cavico threatened to kill the female and her family.
The defendant has three prior felonies dating back to 1990 which prevent Cavico from legally possessing a firearm.
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the LeRoy Police Department, under the direction of Christopher Hayward; and the Genesee County Sheriff’s Office, under the direction of William A. Sheron, Jr.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Powell, Wyoming Psychologist Sentenced to Three Years in Prison for Health Care FraudRead the Press Release
Gibson Buckley Condie, 57, of Powell, Wyoming, was sentenced on January 8, 2018, to serve three years in prison for felony health care fraud involving mental health services falsely billed to Wyoming Medicaid, announced United States Attorney Mark A. Klaassen. Condie was also ordered to pay approximately $2.28 million in restitution to the Wyoming Department of Health and the United States Department of Health and Human Services, and forfeit certain assets traceable to the proceeds of his fraud.
Condie, who was a licensed psychologist, had been indicted by a federal grand jury in May 2017 for a scheme to defraud Wyoming Medicaid. Condie pled guilty to one count of health care fraud as part of a plea agreement with the United States government. Condie admitted to operating a scheme involving a number of misrepresentations and false statements intended to cause Medicaid to pay for mental health services for which he knew Medicaid would not pay if he truthfully reported the facts. Specifically, Condie claimed to be the treating provider even though almost all services were provided by unenrolled, and often unlicensed, persons who could not provide mental health services under Wyoming Medicaid.
Condie also routinely endorsed mental health assessments, which claimed that a Medicaid beneficiary had a qualifying mental health disorder, when in fact Condie had neither performed nor properly supervised the assessments. These assessments were often done by individuals who did not have the required training or license to diagnose mental health disorders. Condie then submitted false bills for these assessments, and submitted bills for other treatment services based on these improper assessments.
Finally, Condie billed for life skills training, psycho/social rehabilitation, and adult case management services even though the beneficiaries had not been properly diagnosed with a mental health disorder, the activities billed for did not qualify as medically necessary therapy, and he did not operate a qualified community mental health center. As a result of Condie’s false statements and misrepresentations, Wyoming Medicaid paid Condie $2,283,792.49 for mental health services that did not qualify for
Medicaid reimbursement. Condie in turn distributed a portion of this money to the unenrolled, and often untrained and unlicensed, individuals who actually spent time with the beneficiaries.
"Health care fraud is a serious crime that harms all of us. This criminal activity diverts limited health care resources, driving up costs that affect federal and state budgets and raises premiums. The prison term and monetary penalties imposed on Gibson Condie today show that individuals who engage in such crimes will be brought to justice," said U.S. Attorney Mark Klaassen. "We will continue to aggressively prosecute any health care provider who engages in this type of criminal activity."
"Today's sentencing of Gibson Condie should send a strong message to anyone considering engaging in health care fraud," said FBI Denver Special Agent in Charge Calvin Shivers. "The FBI will continue to work with our law enforcement partners to protect our government's health care system and our economy from those engaged in these types of fraudulent schemes."
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations-Kansas City Region, stated, "Our office will continue to pursue individuals who file fraudulent claims for reimbursement with HHS funded programs to ensure those individuals are held accountable for their actions."
"Serving as a Medicaid provider is a privilege, which carries the responsibility to account for taxpayer money with honesty and transparency," said Travis J. Kirchhefer, Senior Assistant Attorney General and Director of the Wyoming Office of Attorney General’s Medicaid Fraud Control Unit. He continued, "The Wyoming Attorney General's office, through the Medicaid Fraud Control Unit and the Division of Criminal Investigation, looks forward to continued cooperation with our federal partners to ensure that medical providers do not abuse the public trust."
United States District Court Judge Alan Johnson imposed the sentence. This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services’ Office of Inspector General, and the Wyoming Medicaid Fraud Control Unit. The case was prosecuted by Assistant U.S. Attorneys Eric Heimann and Nicole Romine of the U.S. Attorney’s Office for the District of Wyoming and Special Assistant United States Attorney Travis Kirchhefer of the Wyoming Medicaid Fraud Control Unit.
Suspected fraud against Medicaid or Medicare can be reported to the U.S. Department of Health and Human Services’ Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477) and the agency’s website https://oig.hhs.gov/fraud/report-fraud/. Wyoming residents can call the Wyoming Medicaid Fraud Control Unit toll free at 1-800-378-0345, or visit their website at http://ag.wyo.gov/medicaid-fraud-control-unit.
Operator of Inland Empire Company Sentenced to 9 Years in Federal Prison for Two Fraud Schemes that Cost Victims over $1 MillionRead the Press Release
LOS ANGELES – A La Crescenta man was sentenced today to nine years in federal prison after pleading guilty to federal fraud charges stemming from two schemes – one that bilked a string of payroll companies, and a second involving fraudulent bills sent to entities ranging from small businesses to local school districts that never received any services.
David William Bell, 55, received the 108-month sentenced from United States District Judge Virginia A. Phillips, who additionally ordered Bell to pay just over $1 million in restitution to payroll companies, hundreds of small businesses and other entities.
Bell was sentenced after he pleaded guilty in August to one count of wire fraud and one count of mail fraud.
Bell ran a company called UST Development, Inc. – which operated in Ontario and Pomona under a string of names, including US Telecom – that he used to defraud a host of victims through two separate schemes. Bell used different titles while at UST, including president, director and CEO.
In the first scheme, which ran from 2008 through 2010, Bell convinced a series of third-party payroll companies to fund UST’s payroll – and then failed to reimburse the companies for paying himself and his employees. In some cases, Bell sent checks to the payroll companies from accounts that did not have sufficient funds to cover the checks.
Over the two-year period, Bell retained or attempted to retain companies that included Paychex, Ceridian and Automated Data Processing (ADP), according to a plea agreement filed in this case. Prosecutors said in court documents that, in a few instances, Bell repaid a fraction of what UST received from the payroll companies. “After filing for bankruptcy, and changing his company name, he started a new scheme,” according to a sentencing memorandum filed with the court.
In the second scheme, which related to the mail fraud charge, Bell and his employees sent out mailers that fraudulently appeared to be bills to thousands of small businesses and other entities, most of which were located across Southern California. The mailers – which were sent through the end of 2011 and used words like “invoice,” “statement” and “past due” – told recipients that they owed UST $175 or $350 for “Telecom Maintenance/Service Call.” Many victims paid UST based on the fraudulent claims, when in reality they did not owe UST any money.
Bell “is a fraudster, a trickster. He deceives people into giving him money or services. He has done this for a long time,” according to the sentencing memorandum.
The case against Bell was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.
This case was prosecuted by Assistant United States Attorneys Sean D. Peterson and Abigail W. Evans of the Riverside Branch Office.
Omaha Man Sentenced for Armed Bank RobberyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on January 8, 2018, Chief United States District Court Judge Laurie Smith Camp sentenced Alan Russell, age 30, of Omaha, Nebraska for his conviction for armed bank robbery. Russell was sentenced to six years imprisonment to be followed by a term of supervised release of five years and was ordered to pay his share of restitution of $21,000 to U.S. Bank.
On April 30, 2014, Alan Russell, along with his brother Aaron and Marcus Sanders, entered the U.S. Bank branch located at 8905 Maple Street, Omaha, Nebraska, pistol whipped the bank manager and robbed the bank of approximately $21,000. Russell went to trial in September of 2017 and was convicted of armed bank robbery. Aaron Russell and Marcus Sanders had previously pled guilty and are serving prison sentences.
This case was investigated by the Federal Bureau of Investigation.
Omaha Banker Sentenced for Misapplication of Bank FundsRead the Press Release
Acting United States Attorney Robert C. Stuart announced today that on January 8, 2018, Chief United States District Court Judge Laurie Smith Camp sentenced Keith McCormick, age 60, of Omaha, Nebraska for his conviction for misapplication of bank funds. McCormick was sentenced to a term of supervised release of three years and was ordered to pay restitution of $122,000 to Security National Bank.
During the period of July 2012 to June 2015, McCormick, while Senior Vice President of Business Banking at Security National Bank, in Omaha, misapplied bank funds, forged documents and concealed pertinent information from bank management relating to a series of loans that ultimately went into default and caused the bank to suffer a loss of approximately $122,000. McCormick has already paid the restitution.
This case was investigated by the Federal Bureau of Investigation.
Ohio County man admits to drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia, man has admitted to his role in a oxycodone trafficking conspiracy, United States Attorney Bill Powell announced.
Brent T. Leoffler, age 38, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” Leoffler admitted to conspiring with others to distribute oxycodone in Ohio County and elsewhere from 2012 to August 2017.
Leoffler 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.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.Nine Charged with Committing Drug and Firearm Offenses in and Around Boston Housing Authority PropertyRead the Press Release
BOSTON – Nine men – eight of whom are alleged gang members and associates – have been charged in connection with committing drug and firearms violations around the Mildred C. Hailey Apartments in Jamaica Plain. Seven were arrested this morning and will appear in federal court in Boston this afternoon.
“Gangs are an organized, long-term threat to our neighborhoods,” said United States Attorney Andrew E. Lelling. “All of us have the right to live in safe communities – without fear of getting hurt, being subjected to drug dealing on our street corners, or our children being recruited into a life of crime. I will use the considerable resources of the Justice Department to afford every resident the right to live, work and play in a safe environment. I applaud the police officers and federal agents who spend their days identifying and building cases against the gangs in Boston’s neighborhoods.”
“ATF’s priority is keeping communities and its citizens safe by detecting and stopping the trafficking of firearms and narcotics. Today is another example of how ATF accomplishes that goal,” said Mickey Leadingham, Special Agent in Charge of the ATF Boston Field Division. “Firearms and narcotics trafficking continue to be a priority for ATF and our law enforcement partners. We are committed to identifying and disrupting the sources of trafficking illegal firearms and narcotics which endanger our communities.”
“These arrests come as a result of a two-year investigation working closely with our federal law enforcement partners,” said Boston Police Commission William Evans. “Public safety in Boston is my number one priority and I will continue to use all the resources available to target individuals driving violence in our city. I commend the work of my officers and all those involved in taking these dangerous individuals off the streets and the work they do every day to keep Boston safe.”
Following a two-year investigation, federal and local law enforcement arrested seven individuals this morning in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development. The development, one of the largest owned by the Boston Housing Authority, has been severely impacted by the prevalence of drug trafficking, shootings and other crimes, much of which is instigated by gangs. According to the Boston Regional Intelligence Center, over a 10-month period in 2017, there were 36 incidents of shots fired, eight non-fatal shootings, one homicide, 20 drug-related arrests and 25 robberies in and around the development. According to court documents, the investigation and arrests aim to reduce violence and improve the quality of life for residents by removing individuals who traffic drugs and who are actively involved in violence and gang disputes.
The following individuals are alleged members of the Heath Street Gang and are charged with distribution of controlled substances within 1,000 feet of a public housing facility:
- Cerone Davis, a/k/a “Jp,” 25, of Boston;
- Joe Simmons, a/k/a “Profit,” 30, of Boston; and
- Jarrod Simmons, a/k/a “Rizz,” 21, of Boston.
The following individuals are alleged members of the Heath Street Gang and are charged with conspiracy to distribute cocaine base and distribution of cocaine base within 1000 feet of a public housing facility:
- Dominique Finch, a/k/a “Heff,” 27, of Boston;
- James Finch, 32, of Boston, remains a fugitive;
- Javonte Robinson, a/k/a “Biggie,” “Big Dog,” 21; and
- Kevin Smith, a/k/a “Works,” 27, of Boston.
Franklin Safo-Agyare, a/k/a “Frankie So So Smooth,” 25, of Worcester, is charged with being a felon in possession of a firearm and ammunition.
Kendrick Tate, a/k/a “K-Roc,” 25, of Chelsea, is an alleged member of the Health Street Gang and is charged with distribution of cocaine base and being a felon in possession of a firearm and ammunition. Tate is currently serving a three-and-a-half-to-four-year sentence for unrelated state drug and firearm convictions.
The charge of distribution of controlled substances within 1,000 feet of a public housing development provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $2 million. The charge of distribution of cocaine base provides for a sentence of no greater than 20 years in prison, at least three years and up to a lifetime of supervised release, and a fine of up to $1 million. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, ATF SAC Leadingham and Boston Police Commissioner Evans made the announcement today. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
McLaughlin Man Sentenced for Assault by StrangulationRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a McLaughlin, South Dakota, man convicted of Assault of an Intimate Partner by Strangulation was sentenced on January 4, 2018, by U.S. District Judge Charles B. Kornmann.
River Grey Bull, age 23, was sentenced to 18 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Grey Bull was indicted by a federal grand jury on May 16, 2017. He pled guilty on October 23, 2017.
The conviction stemmed from an incident on April 11, 2016, when Grey Bull and his intimate partner were sleeping at a residence in McLaughlin. When Grey Bull awoke, he began demanding that his intimate partner leave the residence. Grey Bull approached her, pushed her against a wall, and began strangling her.
This case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Daniel C. Nelson prosecuted the case.
Grey Bull was immediately turned over to the custody of the U.S. Marshals Service.
McKinley County Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Jothonnie Yazzie, 29, of Rocksprings, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to an indictment charging him possessing child pornography. Yazzie entered the guilty plea under a plea agreement recommending a sentence within the range of 37 to 63 months in prison followed by ten years of supervised release. He also will be required to register as a sex offender after he completes his prison sentence.
The FBI and McKinley County Sheriff’s Office arrested Yazzie on Dec. 20, 2016, on the indictment, which was filed on Dec. 7, 2016, and charged him with possessing visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Yazzie committed the crime between Jan. 2016 and May 2016, in McKinley County, N.M.
During today’s change of plea hearing, Yazzie pled guilty to the indictment. In his plea agreement, Yazzie admitted that from Jan. 2016 through May 2016, he downloaded videos and images of child pornography from the internet and saved them onto his cellular phone. Yazzie further admitted that the phone contained approximately 366 images and 61 videos of child pornography. Yazzie remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the McKinley County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Maurice man pleads guilty to shipping drugs from Arizona to LouisianaRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a man from Maurice pleaded guilty last week to shipping methamphetamine to Louisiana.
Eric Perrin, 36, of Maurice, La., pleaded guilty Wednesday before U.S. Magistrate Judge Carol Whitehurst to one count of conspiracy to distribute and possess with intent to distribute methamphetamine. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Perrin previously lived in Arizona where he met other individuals who used the drug. He later used his Arizona connections to have methamphetamine packaged and delivered to him in Louisiana. Perrin scheduled a packaged delivery of drugs to his home on August 12, 2013. Law enforcement agents intercepted the package, made a controlled delivery and arrested Perrin. Law enforcement agents found approximately 260 grams of methamphetamine in the package.
Perrin faces five to 40 years in prison, at least four years of supervised release and a $5 million fine. The court set sentencing for April 6, 2018.
The Homeland Security Investigations, Vermilion Parish Sheriff’s Office and Lafayette Metro Narcotics conducted the investigation. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
Marion County, Illinois Man Indicted on Bath Salts Related ChargesRead the Press Release
A Marion County, IL man was indicted on January 4, 2018, on charges related to Alpha-Pyrrolidinopentiophenone (Alpha-PVP) (also known as "bath salts"), in an indictment returned by a federal grand jury, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Dennis R. Thacker, Jr., 49, of Alma, IL, was charged in a three count indictment. Count 1 charges that from 2016, until on or about December 2017, in Clay County and Marion County, and elsewhere, Thacker, Jr., conspired to distribute, and possess with intent to distribute, Alpha-PVP, a Schedule I controlled substance, in violation of federal law. Count 2 charges that on June 2, 2017, in Clay County, Thacker, Jr., distributed a mixture or substance containing Alpha-PVP. Count 3 charges that on June 2, 2017, in Marion County, Thacker, Jr., possessed with the intent to distribute a mixture or substance containing Alpha-PVP.
With respect to all three Counts, Thacker, Jr. faces on each count up to 20 years of imprisonment, up to a $1,000,000 fine, supervised release of at least three years, and a $100 special assessment.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
Manhattan U.S. Attorney Announces Murder Charges Against Bronx Gang Member for 2011 Murder of Bolivia BeckRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced additional charges in a Superseding Indictment against a member of the “Killbrook” gang based in the Mill Brook Houses in the Bronx. In the Superseding Indictment, which was returned today, GARY DAVIS, a/k/a “Reckless,” a/k/a “Poppa,” is charged with the April 18, 2011, murder of Bolivia Beck, the girlfriend of a rival gang member. Beck was shot and killed as she was being introduced to her boyfriend’s grandparents on a sidewalk in the Mill Brook Houses.
DAVIS and 14 others were previously charged in an Indictment unsealed on October 11, 2017. That Indictment charges four individuals with racketeering conspiracy, in connection with their membership in a gang known as “Killbrook,” and charges other individuals with narcotics conspiracy and firearms offenses. In addition to the new murder charges, the Superseding Indictment contains the charges that had previously been brought in the Indictment against DAVIS and 14 others. The case is assigned to U.S. District Judge Lorna G. Schofield.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Bolivia Beck was the victim of a horrific murder, shot and killed in broad daylight while being introduced to her boyfriend’s grandparents. We thank our law enforcement partners for their extraordinary efforts investigating this murder. With their help, we are committed to making our streets and communities safer through the eradication of gangs that bring this senseless violence to our streets.”
DEA Special Agent in Charge James Hunt stated: “This investigation uncovered that this unnecessary and brazen murder was a result of gang violence. I commend the hardworking prosecutors, detectives and agents who collaborated to bring additional charges against the shooter and bring justice to the victim’s family.”
* * *
According to the allegations in the Superseding Indictment[1] and information in the public record:
On April 18, 2011, Bolivia Beck was struck in the head by a bullet as she was being introduced to her boyfriend’s grandparents on a sidewalk in the Mill Brook Houses. The shooting occurred in broad daylight. Beck died two days later from the gunshot wound. The shooting arose out of an ongoing gang dispute between Killbrook and the rival “MBG” street gang.
GARY DAVIS, 27, of the Bronx, is charged in the Superseding Indictment with one count of murder in aid of racketeering, and aiding and abetting the same, and one count of murder through the use of a firearm and aiding and abetting the same. DAVIS faces a maximum penalty of death or life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jordan Estes, Drew Skinner, and Alexandra Rothman are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Receives 18 Month Prison Sentence for Fraudulent Tax Returns SchemeRead the Press Release
CONCORD, N.H. – Kenneth Feliz, 53, of Manchester and the former owner of the Smug Peach check cashing business in Nashua, was sentenced to 18 months in prison for his role in a fraudulent federal income tax scheme, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, from January 2012 to December 2013, Gladys Pena, a resident of Bronx, New York, couriered 161 U.S. Treasury tax refund checks, totaling more than $1.1 million, from New York New York, to Feliz in New Hampshire. As Pena knew, the checks were obtained from the Internal Revenue Service by conspirators who filed fraudulent income tax returns using legitimate taxpayers’ stolen social security numbers and other personal identifying information. Feliz knowingly cashed the checks in exchange for fees that were equal to 10 percent of the value of each check.
Feliz previously pleaded guilty to conspiracy to steal public money, theft of public, money and aggravated identity theft.
On May 22, 2017, Pena was sentenced to a 54-month term of incarceration for her role in the scheme. Feliz and Pena are also required to make restitution payments totaling $1,095,879.44 to the United States Treasury.
“Tax refund schemes such as this not only steal money from taxpayers but also cause serious harm to the individuals who have their identification information stolen,” said Acting U.S. Attorney Farley. “We will continue to work closely with the IRS to protect the integrity of the tax system and to protect the public from identity theft crimes.”
“Investigating identity theft and tax refund fraud is a top priority for IRS Criminal Investigation,” said Special Agent in Charge Joel P. Garland. “Each phase of this crime is a serious offense, from stealing innocent victims’ identities, to filing false tax returns, and cashing fraudulently-obtained refund checks as Mr. Feliz did. This sentence highlights our commitment, along with the U.S. Attorney’s Office, to eradicate identity theft, safeguard honest taxpayers and protect the integrity of our Nation’s tax system.”
The case was by the Internal Revenue Service’s Criminal Investigation in Manchester, with assistance from the IRS/CI office in New York, N.Y. The case was prosecuted by Assistant United States Attorneys Bill Morse and Bob Kinsella.
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Long-Time Drug Trafficking Fugitive Ultimately Ordered to Federal PrisonRead the Press Release
HOUSTON – After 14 years on the run, a 43-year-old Roma man has been ordered to prison following his conviction for conspiring to possess and possession with intent to distribute more than 1000 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Romeo Eduardo Barrera pleaded guilty Oct. 23, 2017.
Today, U.S. District Judge Kenneth Hoyt handed Barrera a 135-month prison sentence to be immediately followed by five years of supervised release. At the hearing, the court found Barrera’s 14-year run warranted an upward adjustment for obstruction of justice and overruled Barrera’s objections to not receiving credit to reduce his sentencing range for acceptance of responsibility. In handing down the sentence, Judge Hoyt noted that the tragedy of this case is that had he not fled and resolved the matter in 2002 when he was much younger, he would have completed his sentence by now and had many years to spend with his family.
A federal grand jury indicted Romeo Eduardo Barrera in September 2002 for federal drug law violations. He was Initially released on bond, but failed to appear for a pretrial conference before Judge Hoyt in Houston in January 2003. A warrant issued for his arrest.
In late May 2017, Barrera was involved in an automobile accident in the Rio Grande Valley. Local law enforcement present at the scene of the accident arrested him upon discovering the outstanding warrant. Barrera made his initial appearance in the McAllen Division and was transferred to Houston to face the long-pending charges. He made his appearance before Judge Hoyt who revoked his previous bond and ordered he be detained pending further criminal proceedings.
The charges against Barrera arise from an investigation initiated in March 6, 2002. At that time, authorities located suspected narcotics traffickers from the Rio Grande Valley at a Houston-area Holiday Inn Express Hotel. Thereafter, law enforcement conducted surveillance during which time they observed Barrera arrive at the hotel and eventually leave with two others. Surveillance of that vehicle ultimately lead investigating officers to a residence on Northfield in Houston. There, investigating agents watched Barrera and seven other defendants entering and exiting the residence, using trash cans to remove large bales of marijuana and load them into a van parked nearby.
When officers approached, Barrera fled the scene along with all but one of the others. Authorities arrested Barrera shortly thereafter on a nearby street. During the chase, Barrera held 386.6 grams of marijuana wrapped in clear cellophane and a yellow sheet of paper with figures written on it.
In the Northfield residence, officers also found 31 cellophane-wrapped bales of marijuana weighing a total of approximately 1644 pounds along with an additional 154 grams of marijuana, 30 used and new duffle bags, two digital scales, wrapping materials, calculators, drug ledgers and three firearms.
In the parked van, investigating officers also found and seized 19 cellophane-wrapped bales of marijuana with an approximate total weight of 928.55 pounds.
Barrera will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Harris County Sheriff’s Office, Houston Police department and the FBI conducted the investigation. Assistant U.S. Attorney Nancy G. Herrera is prosecuting the case.
Little Eagle Man Sentenced for Child Abuse, Assaults, and Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Little Eagle, South Dakota, man convicted in two separate trials of three counts of Child Abuse, three counts of Assault with a Dangerous Weapon, and Receipt of Images Depicting the Sexual Exploitation of Minors was sentenced on January 4, 2018, by U.S. District Judge Charles B. Kornmann.
Chavez Spotted Horse, age 41, was sentenced to 76 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $600 on the Child Abuse and Assault with a Dangerous Weapon charges, resulting from a jury trial conviction on October 19, 2017. Spotted Horse was also sentenced to 78 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100 on the Receipt of Child Pornography charge, resulting from a jury trial conviction on November 8, 2017. The sentences are to be served consecutively to one another.
Spotted Horse was indicted by a federal grand jury on January 19, 2017, and again on March 15, 2017.
Following a 3-day federal jury trial held between October 17, 2017, and October 19, 2017, in Aberdeen, South Dakota, Spotted Horse was found guilty of three counts of Child Abuse and three counts of Assault with a Dangerous Weapon.
Following a 3-day federal jury trial held between November 6, 2017, and November 8, 2017, in Aberdeen, Johnson was found guilty of two counts of Receipt of Imaging Depicting the Sexual Exploitation of Minors and Possession of Child Pornography. The Possession of Child Pornography charge was later dismissed by the Government.
The convictions on the Child Abuse and Assault with a Dangerous Weapon charges stem from an incident on December 1, 2016, when the Bureau of Indian Affairs law enforcement was summoned to a school in Little Eagle, to investigate a reported child abuse matter. Upon arrival, officers made contact with the 11-year-old victim, who was visibly bruised over large portions of her body.
The victim informed the officer that Spotted Horse started to question her about boys. The victim stated that when she did not answer his questions, Spotted Horse started to beat her on her legs and back with a plastic kitchen spoon, a rod, and a plastic hanger. As a result of the assault, the victim suffered serious bruising to her legs and back.
The conviction on the Child Pornography charge stems from an incident in the fall of 2015, when the Federal Bureau of Investigation received information indicating a computer in Little Eagle was accessing child pornography. A search warrant was obtained and the home of Spotted Horse was searched. Computers and hard drives were seized pursuant to the search warrant. Spotted Horse provided passwords to the computers and admitted to viewing and receiving child pornography on the computers, over the internet on specialized websites, including sexually explicit pictures of young children.
This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Standing Rock Agency, the Department of Homeland Security Homeland Security Investigations, the North Dakota Crime Bureau’s Internet Crimes Against Children Task Force, the South Dakota Division of Criminal Investigation-Internet Crimes Against Children Task Force, and the BIA-OJS Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Spotted Horse was immediately turned over to the custody of the U.S. Marshals Service.
Lawton Man Sentenced to More Than 32 Years for Violent CrimesRead the Press Release
Oklahoma City, Oklahoma – On January 5, 2018, JACKIE DUNCAN, 30, of Lawton, Oklahoma, was sentenced to 386 months in federal prison for his role in a robbery conspiracy, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
A superseding indictment alleged that Duncan agreed with other members of the 107 Hoover Crips gang in Lawton, Oklahoma, to commit armed robbery. It also charged him with various gun and drug offenses. Among other things, the superseding indictment alleged that Duncan was involved in displaying a pistol after breaking into an apartment, where another member of the gang beat a resident in the head with a metal pipe.
A federal jury found Duncan guilty of one count of conspiracy to interfere with commerce by robbery, one count of being a felon in possession of a firearm, two counts of interference with commerce by robbery, and two counts of brandishing a firearm in furtherance of a crime of violence. The jury found him not guilty of one count of possession of a controlled substance with intent to distribute and one count of possessing and brandishing a firearm in furtherance of a drug trafficking crime.
On January 5, 2018, United States District Court Judge Vicki Miles-LaGrange sentenced Duncan to 386 months in federal prison, to be followed by five years of supervised release.
This case is the result of an investigation by the Lawton Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Comanche County District Attorney’s Office. Assistant U.S. Attorneys Edward J. Kumiega, Kerry Blackburn, and Mark Stoneman prosecuted the case.
Law Enforcement Officers Join Students for a Day of LearningRead the Press Release
TALLAHASSEE, FLORIDA – The United States Attorney’s Office for the Northern District of Florida, Leon County Sheriff’s Office, and Godby High School will present a BLAST Program event on Tuesday to approximately 50 students.
Event: BLAST Program
Location: Godby High School
1717 West Tharpe Street
Tallahassee, FL 32303Date: Tuesday, January 9, 2018
Time: 7:45 a.m. – noon EST
Press: Please RSVP to Amy Alexander at [email protected] if you plan to attend.The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with law enforcement officers in a familiar setting. Law enforcement officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers. (Students with media permissions will be identified.)
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
This session is open to the media and public, and videography and photography is permitted.
- Domestic Violence: Students will participate in a scenario in which law enforcement officers respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to law enforcement.
This session is open to the media and public, and videography and photography is permitted.
- Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop.
This session is open to the media and public, and videography and photography is permitted.
- Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.
This session is closed to the media and public. Reporters may try the simulator equipment after the event ends.
Participating agencies include:
- United States Attorney’s Office, Northern District of Florida
- Leon County Sheriff’s Office
- Godby High School
- Federal Bureau of Investigation
- Bureau of Alcohol, Tobacco, Firearms & Explosives
- Drug Enforcement Administration
- FAMU Police Department
- Florida Highway Patrol
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
Justice Department Reaches Agreement with Denver to Improve AccessibilityRead the Press Release
The Department of Justice today announced an agreement with Denver, Colorado, to improve access to civic life for people with disabilities. The agreement was reached under Project Civic Access (PCA), the Department’s initiative to ensure that cities, towns, and counties throughout the country comply with the Americans with Disabilities Act (ADA).
Under the agreement, Denver will ensure that its services, programs, and activities are accessible to people with disabilities. Based on surveys conducted by the United States as part of its investigation, the agreement requires Denver to remedy inaccessible features at courthouses, emergency shelters, libraries, parking lots, polling places, and parks to make these facilities accessible to persons with disabilities. In addition, to improve communication with people with hearing disabilities, Denver will contract with sign language interpreters and use Relay Colorado and text-to-911 on calls. Denver has also agreed to ensure that its emergency operations plan is accessible, to provide training to its employees on the ADA, and to survey certain facilities that were not already surveyed by the Department
“Denver has committed to ensuring all of its residents, including persons with disabilities, have access to county and city services and programs,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We applaud Denver for taking this step.”
This agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments.
For more information about the ADA, today’s agreement, the Project Civic Access initiative, or the ADA Best Practices Tool Kit for state and local governments, individuals may access the ADA Web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Jonesboro man sentenced to prison for distributing child pornographyRead the Press Release
ATLANTA - Kenneth Shipp has been sentenced to eight years, one month in prison for distributing child pornography. The defendant had hundreds of thousands of photographs and thousands of videos at his residence, which he shared on peer-to-peer websites.
“Kenneth Shipp’s collection of child pornography is the largest of anyone ever prosecuted in this district,” said U. S. Attorney Byung J. “BJay” Pak. “It is abhorrent that someone could derive gratification from the sexual abuse of children, and the amount that Shipp possessed is staggering. We will continue to work with federal and state law enforcement partners to find those who trade and collect child pornography and bring them to justice.”
“The outcome of this case should serve as a warning to others we will aggressively investigate and bring to justice those who would prey on our most vulnerable population,” said ICE HSI Atlanta Acting Special Agent in Charge Gregory Wiest. “HSI continues working closely with our federal and state partners to ensure we identify and arrest the perpetrators of these vile crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: in February 2016, special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“ICE-HSI”) and the Georgia Bureau of Investigation (“GBI”) were investigating persons who were using peer-to-peer programs to trade images and videos of child pornography. The agents were able to download a video from a computer that showed young boys being sexually abused. Information that they obtained while downloading the video revealed that it came from a computer at a house in Jonesboro, Georgia.
Agents with ICE-HSI obtained a federal search warrant for a house in Jonesboro, and carried out a search on May 9, 2016. There, agents found numerous computers, laptops, television monitors, thumb drives and other electronic devices, all containing child pornography. A subsequent examination of those devices showed that Shipp had 447,268 images and 19,395 videos. Specifically, he had more than 60 terabytes of child pornography.
Kenneth Shipp, 58, of Jonesboro, Georgia, has been sentenced to eight years, one months in prison to be followed by 15 years of supervised release. Shipp was convicted of these charges on October 5, 2017, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation.
Assistant U.S. Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Guatemalan National Sentenced to Federal Prison for Assaulting a Border Patrol Agent Near Uvalde, TexasRead the Press Release
In Del Rio today, a federal judge sentenced a 21-year-old Guatemalan national to five years in federal prison for assaulting a U.S. Border Patrol agent in 2016 announced United States Attorney John F. Bash and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Alia Moses ordered that Elias de Jesus Gregorio de Paz pay $5,767.28 restitution to his victim for medical expenses and lost wages.
On March 9, 2017, Gregorio pleaded guilty to one count of assault on a federal officer. By pleading guilty, Gregorio admitted that on November 19, 2016, he intentionally assaulted a U.S. Border Patrol agent while the agent was engaged in the performance of his duties. According to court records, U.S. Border Patrol agents working in the Uvalde, TX, area encountered a two undocumented aliens on or around a stopped train. One undocumented alien absconded. The other, Gregorio de Paz, engaged in an altercation with the agent causing him to suffer a concussion. Gregorio de Paz fled the scene, but was captured three days later by U.S. Border Patrol agents in the Del Rio area.
Gregorio de Paz has remained in federal custody since his arrest.
“This case demonstrates the great sacrifice Border Patrol Agents make every day, often risking their lives to protect our nation. Violence against Border Patrol Agents will not be tolerated,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The FBI investigated this case. Assistant United States Attorney Paul Harle prosecuted this case.
Fresno Woman Pleads Guilty to Stealing More than $1.5M from International Food Distribution CompanyRead the Press Release
FRESNO, Calif. — Leslie Michelle Hays, 49, of Fresno pleaded guilty today to one count of wire fraud for embezzling funds from her employer, Borges USA, U.S. Attorney McGregor W. Scott announced.
According to the plea agreement, Hays was the director of human resources from 2005 through 2014 at Borges USA, a food distribution company based in Spain with regional headquarters in Fresno. To embezzle funds from Borges USA, Hays misreported her salary, expenses, and vacation time to the company’s payroll processor, which then remitted the stolen funds to Hays’s bank account. In total, Hays stole at least $1,535,420 in inflated salary payments and false expenses reimbursements from Borges USA.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Hays is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 7, 2018. She faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Frankfort Man Pleads Guilty to Conspiracy to Distribute Cocaine and a Firearm OffenseRead the Press Release
FRANKFORT, Ky. — Jonathan L. Courtland, 35, of Frankfort, pleaded guilty today to Conspiracy to Distribute Cocaine and being a Convicted Felon in Possession of a Firearm.
In his guilty plea, Courtland admitted that he had engaged in several instances of cocaine distribution in Frankfort, Kentucky, between December 2016 and April 2017. He also admitted that, on April 24, 2017, he possessed a handgun, even though he had previously been convicted of one or more felony drug offenses.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Louisville FBI; Richard Sanders, Commissioner Kentucky State Police; and Chief Travis Ellis, Frankfort Police Department, jointly made the announcement today after Courtland entered his guilty plea.
Federal Bureau of Investigation, Kentucky State Police, and Frankfort Police Department conducted the investigation. Assistant United States Attorney Roger W. West represented the United States in the case. The case is part of the Project Safe Neighborhoods (PSN) Program, a Department of Justice initiative to reduce violent crime through partnerships between federal, state, and local law enforcement. The goal of the PSN Program is to use these partnerships to make communities safer.
Courtland will appear for sentencing before United States District Court Judge Gregory F. Van Tatenhove in Frankfort, on April 19, 2018, at 2:30 p.m.
Courtland faces a minimum mandatory sentence of 15 years (180 months) on the firearms offense and a maximum prison sentence of 30 years on the cocaine offense. However, the Court will impose any sentence after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Winnebago Tribal Vice Chairman Sentenced for Theft from an Indian Gaming EstablishmentRead the Press Release
Acting United States Attorney Robert C. Stuart announced today that on January 8, 2018, Chief United States District Court Judge Laurie Smith Camp sentenced Darwin Snyder, age 50, of Winnebago, Nebraska for his conviction for theft from an Indian gaming establishment. Snyder was sentenced to five years of probation and 150 hours of community service. He was further ordered to pay restitution in the amount of $36,500.
Snyder was a member of the tribal council of the Winnebago Tribe of Nebraska and served in an officer capacity as the council’s Vice Chairman. Beginning in 2013 and continuing through September of 2014, Snyder began taking unauthorized disbursements from the WinnaVegas Casino and Resort in the total amount of $36,500. These disbursements were in the form of gift certificates which he did not pay for and deposits to a re-loadable debit card. The disbursements were in addition to the salary Snyder received from the Winnebago Tribe as a tribal council member. However, the disbursements were not paid through the payroll department of the Winnebago Tribe and were never authorized at a regular or special meeting of the tribal council. Further, the disbursements were concealed from the Winnebago Gaming Commission which oversaw the operations of the casino and was required to approve financial transactions of the casino.
This case was investigated by the Federal Bureau of Investigation.
Former University of the Nations CFO Sentenced to 115 Months in Prison for Wire FraudRead the Press Release
HONOLULU – Pablo M. Rivera, age 42, formerly a resident of Colorado and Hawaii, was sentenced today to 115 months in federal prison for committing a wire fraud offense by which he obtained approximately $3,096,241 from the University of the Nations (UOFN) on the island of Hawaii.
Kenji M. Price, United States Attorney for the District of Hawaii, said that according to documents filed in this case and information presented in court, Rivera served as Chief Financial Officer for UOFN from July 2014 to January 2017. During that time, UOFN had construction projects on its campus, and invoices were sent to Rivera for his approval. According to the Criminal Information, Rivera created a scheme under which he persuaded a contractor to allow him to have signatory authority over its account. Rivera then created and submitted false invoices to UOFN, approved them, and took money from the contractor’s account once funds were transferred by UOFN. Rivera pled guilty to wire fraud in May 2017.
At today’s sentencing, Senior U.S. District Judge Susan Oki Mollway found that Rivera abused a position of trust, and took advantage of others to steal millions from UOFN. Judge Mollway noted that Rivera did not need to defraud UOFN to make ends meet, and had used the fraud proceeds to buy a gold mine in Africa, stocks and diamonds, and to pay for spa treatments. Judge Mollway also found that, when the government suggested he was hiding diamonds, Rivera submitted a fraudulent and altered email to the Court, which constituted an attempt to obstruct justice. Citing the need to protect the public from Rivera’s future crimes, Judge Mollway sentenced him to 115 months in jail, which will be followed by a 36-month term of supervised release. Rivera was also ordered to pay UOFN $3,128,194 in restitution, which included the university’s losses, and costs of investigation. Rivera will also be ordered to forfeit various assets and accounts traceable to his fraud scheme.
Rivera has been in custody at the Federal Detention Center in Honolulu since December 2017, and remains there pending designation of a facility on the mainland.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by by Assistant U.S. Attorney Michael Nammar.
Former U.S. Postal Service Employee Pleads Guilty to EmbezzlementRead the Press Release
BOSTON – A former postal employee pleaded guilty today to embezzling over $22,000 from the U.S. Postal Service (USPS).
Dennis Reis, 37, of Taunton, pleaded guilty to one count of embezzlement and theft of public money, property or records before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for April 25, 2018.
Reis had been employed by the USPS since approximately 2000, and was the Lead Sales & Service Associate at the East Taunton Post Office since 2014. In that capacity, Reis sold stamps to customers and maintained accountability for the funds and stamp stock. From January 2015 to March 2017, Reis engaged in a scheme to embezzle funds by voiding cash transaction sales of stamps so that the system did not account for the cash paid by customers. Reis then entered a “no sale” transaction into the system, causing the cash drawer to open and taking the cash paid by customers for his own use. Through this scheme, Reis embezzled at least $22,773 from the USPS.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Eileen Neff, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Former Treasurer of Teays Valley Volunteer Fire Department pleads guilty for embezzlementRead the Press Release
HUNTINGTON, W.Va. – A Hurricane woman pleaded guilty today for embezzling over $75,000 from the Teays Valley Volunteer Fire Department, announced United States Attorney Carol Casto. Kathy Sue Gwinn, 52, entered her guilty plea to theft from a program receiving federal funds.
Gwinn formerly served as the Treasurer of the Teays Valley Volunteer Fire Department. As Treasurer, she generated payroll checks for firefighters and signed the payroll checks on a fire department bank account. Gwinn admitted that she volunteered for the fire department, and had no authority to write herself checks, nor was she entitled to wages, salary, or compensation for her role as Treasurer. She further admitted that beginning in October 2014, and continuing through March 2017, she printed and wrote herself unauthorized checks from the fire department’s payroll account, noting on the memo line of the checks that the checks were for payroll, overtime, or tax preparation. She admitted that she moved money from one fire department bank account into the bank account primarily used for payroll, and when she transferred those funds, she inflated the amount of the transfer to include enough to cover the unauthorized checks she planned to write to herself. Over the course of her scheme, she embezzled $75,356.70. As part of her plea agreement, Gwinn has agreed to pay this amount in restitution.
During the period Gwinn embezzled funds, the Teays Valley Volunteer Fire Department received grants from the Federal Emergency Management Agency, an agency of the United States Department of Homeland Security. These grants allowed the fire department to pay firefighters and to purchase and maintain equipment.
Gwinn faces up to 10 years in federal prison when she is sentenced on April 9, 2018.
The Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Office of Inspector General for the U.S. Department of Homeland Security, and the West Virginia Commission on Special Investigations conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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Former Teacher Extradited from United Kingdom to Face Charges He Sexually Abused StudentsRead the Press Release
WASHINGTON - Robert Wilson Leach, 33, of Silver Spring, Md., has been extradited from the United Kingdom on charges alleging that he sexually abused his female middle school students while working as a math teacher at a public charter school in Northwest Washington.
The announcement was made by U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department, and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Leach was arrested in July 2015 in the United Kingdom, and has been incarcerated since that time while he contested extradition to the United States for 2 ½ years. Leach was brought to the United States on Jan. 5, 2018, and made his first appearance in the Superior Court of the District of Columbia. He was ordered detained pending a detention hearing set for Jan. 10, 2018, before the Honorable Judge Milton C. Lee.
The indictment charges Leach with multiple sexual offenses against two children: two counts of first-degree sexual abuse with aggravating circumstances, one count of second-degree child sexual abuse with aggravating circumstances, four counts of enticing a child with aggravating circumstances, and sexual performance of a minor. The indictment also charged Leach with assault as to a third child victim, but that charge was not extraditable.
According to the government’s evidence, the sexual abuse of Leach’s students began in 2011, when his first victim was 12 years old and in the defendant’s seventh-grade math class at Meridian Public Charter School. The abuse allegedly continued until Dec. 31, 2013, when another victim’s mother discovered the abuse and threatened to report Leach to the police. The defendant, a United States citizen, departed the Washington, D.C. area the same day and flew to the Grand Cayman Islands. He never returned to work at the middle school, and subsequently moved to the United Arab Emirates to work as a teacher.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the Metropolitan Police Department. The Department of Justice’s Office of International Affairs and the U.S. Department of State provided substantial assistance in securing extradition.
Assistance has been provided by the United States Marshals Service, INTERPOL Washington, the United States Department of State’s Diplomatic Security Service, and the United Kingdom’s Metropolitan Police Service.
The case is being prosecuted by Assistant U.S. Attorneys John L. Hill and Julianne Johnston of the U.S. Attorney’s Office for the District of Columbia, with assistance from Paralegal Specialists Angelina Slagle and Jessica Moffatt and Victim/Witness Advocate Elsa Maltese.
Former HCC Trustee Sent to Prison for Bribery ConvictionRead the Press Release
HOUSTON – A former trustee with Houston Community College (HCC) has been ordered to federal prison following his conviction of bribery of a public official concerning programs receiving federal funds, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI. Chris Oliver, 53, of Houston, pleaded guilty May 15, 2017.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Oliver a 70-month sentence. At the hearing, additional testimony was presented including the fact that Oliver had maintained a position of trust as an elected official, but nonetheless, chose to engage in this criminal activity. It was also noted that the bribes took place over an extended period of time, beginning in 2009 and continuing through 2016. Oliver was further ordered to pay a $12,000 in forfeiture to the FBI and will be required to serve a one-year-term of supervised release following completion of the prison term. In handing down the sentence, Judge Gilmore noted that Oliver had been on the board of trustees for approximately 21 years and that the sentence was necessary to take into account the number and amount of bribes Oliver had received, to reflect the seriousness of the offense, to promote respect for the law and provide adequate deterrence.
“Public officials who use their position for private gain undermine the integrity of government and erode the public's trust in the very framework of our democracy. Today's sentence sends a strong message of the consequences of such actions,” said Turner. “The FBI stands firm with local, state and federal partners in an unwavering commitment to combat public corruption and hold accountable those who choose to abuse the privilege of serving the American people. We rely heavily on the public's help in investigating these crimes and urge anyone with information related to public corruption to report it to the FBI.”
At the time of his guilty plea, Oliver admitted he accepted bribes in exchange for the promise of official actions related to his duties as a member of the HCC board of trustees. It was revealed in open court at the plea hearing that Oliver met with another individual on several occasions at various restaurants and coffee shops in Houston where he accepted cash payments in exchange for promising to use his position to help that person secure contracts with HCC.
Oliver later resigned from his position
Oliver was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with assistance from the Department of Education - Office of Inspector General. Assistant U.S. Attorneys Andrew Leuchtmann and Julie Searle are prosecuting the case.
If you have information regarding public corruption in the Houston area, please contact the FBI helpline at 713-693-5000.
Former Ellis County Sherriff’s Office Employee Sentenced for Stealing and Selling FirearmsRead the Press Release
DALLAS —Philip Gary Slaughter, 42, of Mesquite, Texas, was sentenced last week by U.S. District Judge Sidney A. Fitzwater to 15 months in federal prison, following his guilty plea in May 2017 to one count of possession or sale of stolen firearms, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Thomas Glen Smith, 50, was charged in a separate but related case and also pleaded guilty to his role. Smith is scheduled to be sentenced on January 18, 2018 by U.S. District Judge Jane J. Boyle.
According to plea documents filed in the case, Smith and Slaughter worked at the Ellis County Sherriff’s Office (ECSO) in the ECSO Evidence Room. Their responsibilities included reorganizing the ECSO Evidence Room, where they had access to numerous firearms seized by the ECSO. On November 18, 2015 Slaughter obtained a court order to destroy hundreds of the firearms in the ECSO Evidence Room. Some of these firearms, however, were not destroyed and, instead, Smith and Slaughter sold approximately forty firearms taken from the ECSO Evidence Room.
At various times in November and December, 2015, Smith and Slaughter pawned several firearms at various pawn stores in the Ellis County area. The defendants would also use their Facebook accounts to sell firearms to individuals. These firearms were either supposed to be in the possession of the ECSO Evidence Room or were listed in the destruction order.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety—Texas Ranger Division. Assistant U.S. Attorneys Kate Rumsey, Joseph Magliolo, and Errin Martin prosecuted.
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Florida man sentenced for tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA –Herbert V. Tremble, II, 49, of Florida, was sentenced today to six months incarceration, to be followed by six months of home detention, for tax and bank fraud, United States Attorney Bill Powell announced.
Tremble pled guilty to one count of “Corrupt Endeavor to Obstruct and Impede the Due Administration of Internal Revenue Laws” on September 6, 2017. Tremble did not file partnership tax returns and corporate tax returns for his multiple businesses in Morgantown, West Virginia between 2008 and 2012. He also failed to file or pay personal income taxes from 2004 through 2012.
Tremble was also ordered to pay $58,504.38 in restitution.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.
Senior U.S. District Judge Irene M. Keeley presided.
Florida Man Sentenced to 2 Years in Prison for Money LaunderingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On January 5, 2018, United States District Judge George L. Russell III sentenced Eugenio Labra, age 33, of Miami, Florida to two years in prison, followed by three years of supervised release, for his participation in a nationwide scheme to steal nearly $9 million from individuals nationwide by impersonating Internal Revenue Service (IRS) agents and other confidence scams. Judge Russell also ordered Labra to pay restitution in the amount of $28,671.32.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the plea agreement, from August 2015 until November 2015, Labra and his co-conspirators engaged in various fraud schemes, including a scheme in which they purported to be employees of the IRS and would call and threaten victims with legal action, arrest, and imprisonment for a supposed debt owed to the IRS. The callers made these threats and used other methods of intimidation to persuade the victims to wire money through MoneyGram and other money transmitters.
On November 17, 2015, the Maryland State Police (MSP) stopped Labra as part of a routine traffic stop. After a canine alerted positive for the presence of narcotics in the vehicle, MSP searched the vehicle and recovered two fake Florida driver's licenses in the names of Lavern Torres Baldi and Jack Torres, and two fake social security cards in the names of Jack Torres and Johnny Lopez. Investigators later determined that Labra used these identities, as well as his own identity, to collect from MoneyGram over $550,000 of the proceeds from his co-conspirators’ fraud. He then deposited the stolen money into bank accounts to help launder it.
In addition to Maryland, investigators located wire transfer collections as part of the scheme in the following states: Florida, Kansas, Illinois, South Carolina, North Carolina, Virginia, Pennsylvania, Massachusetts, and Washington, D.C. Labra pleaded guilty to one count of money laundering in connection with his activities.
Acting United States Attorney Stephen M. Schenning praised HSI Baltimore and IRS- CI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Dana J. Brusca and Jefferson M. Gray, who prosecuted the case.
Felon from Carlsbad Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Ricardo Javier Garza, 41, of Carlsbad, N.M., pled guilty this morning in Las Cruces, N.M., federal court to violating the federal firearms laws by unlawfully possessing a firearm and ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Garza on May 4, 2017, on a criminal complaint charging him with being a felon in possession of a firearm on March 5, 2014, in Eddy County, N.M. According to the complaint, law enforcement officers found a firearm and multiple rounds of ammunition in Garza’s residence after receiving a tip from Eddy County Crime Stoppers that Garza, a convicted felon, was in possession of stolen firearms.
Garza subsequently was indicted on Sept. 13, 2017, and was charged with being a felon in possession of a firearm and ammunition on March 5, 2014, in Eddy County. According to the indictment, Garza was prohibited from possessing firearms or ammunition because he previously had been convicted of aggravated burglary, larceny with a firearm, and receiving stolen property.
During today’s proceedings, Garza entered a guilty plea to the indictment without the benefit of a plea agreement. At sentencing, Garza faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pecos Valley Drug Task Force and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Feds charge Cobb County man with murder for hireRead the Press Release
ATLANTA - Michael McEarchern has been arraigned on federal charges for attempting to use the U.S. mail and telephone communications to hire someone to kill his ex-wife. McEarchern was indicted by a federal grand jury on January 3, 2018.
“This defendant’s alleged actions indicate that he was serious about having his ex-wife murdered,” said U.S. Attorney Byung J. “BJay” Pak. “By providing an address and up-front money for the would-be assassin, McEarchern left little doubt that if the threat had not been discovered he may have found someone to carry out the heinous deed.”
“This case is another example of the lengths the FBI will go, to protect the citizens of this country,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The arrest demonstrates how law enforcement, working together with concerned citizens, can hold criminals accountable and prevent violence from happening in our communities.”
According to U.S. Attorney Pak, the charges, and other information presented in court: McEarchern was an inmate at the jail in Bartow County, Georgia, having been arrested on drugs charges in October 2017. While incarcerated, McEarchern reached out to several individuals trying to find someone who could arrange for the murder of his ex-wife, who lived in Cobb County. One individual told a friend of McEarchern’s desire to kill his ex-wife, and that person reported the crime to the FBI. To ensure that McEarchern was serious about seeking someone to carry out the murder, the FBI waited for McEarchern to reach out to the informant, which he did.
Believing that he was setting up the killing of his ex-wife, McEarchern agreed to pay $10,000 in cash and two tickets to an Atlanta Hawks basketball game in payment. Additionally, to show that he was serious, he had $800 in cash mailed to the assassin. Jail recordings captured McEarchern providing the address to the person who he asked to mail the money for him. The FBI retrieved an envelope containing the $800 with a return address of the person who sent the money on McEarchern’s instruction. The defendant also provided an address where the assassin could find the ex-wife.
Michael McEarchern, 29, of Acworth, Ga., was arraigned before U.S. Magistrate Judge Walter E. Johnson. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, with help from the Bartow County Sheriff’s Office.
Assistant U.S. Attorney Kim S. Dammers is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal, State, and Local Law Enforcement Agencies Unite to Combat Human TraffickingRead the Press Release
Tampa, FL – In recognition of National Slavery and Human Trafficking Prevention Month, U.S. Attorney Maria Chapa Lopez, Deputy Attorney General Rod Rosenstein, and various Middle District of Florida (MDFL) law enforcement executives highlighted recent human trafficking prosecutions in the MDFL during a presentation in Tampa today.
In 2017, the United States Attorney’s Office, in partnership with numerous federal, state, and local agencies, brought charges against individuals for human trafficking where victims, including minors, have been forced to commit commercial sex acts and engage in sex tourism.
“Investigating and prosecuting human trafficking remains a priority for our district,” stated U.S. Attorney Chapa Lopez. “In order to tackle this problem, we must continue to collaborate with our law enforcement and other partners to bring human traffickers to justice and assist trafficking survivors.”
MDFL Human Trafficking Case Highlights
U.S. v. Rowy Vasquez – Vasquez (27, Altamonte Springs) provided a 14-year-old girl, who had run away from home, with a cellphone so that she could post advertisements for prostitution services online and communicate with potential customers. He also set the prices for her sex acts and kept all of the proceeds. Vasquez pleaded guilty to sex trafficking a minor and was sentenced to 30 years in federal prison.
U.S. v. Abdhullah Hamidullah – Hamidullah (44) lured a young woman to travel to Florida on false pretenses, then forced her to engage in commercial sex acts with multiple customers a day for several months, and provide him the proceeds. He isolated her in his apartment, took away her money and phone, and installed an alarm without providing her the code. He also assaulted her, showed her his handgun, and branded her with a tattoo in the course of compelling her to prostitute for his profit. Hamidullah pleaded guilty to sex trafficking and to enticing and transporting individuals for prostitution. He was sentenced to 40 years and 2 months in federal prison. He was also ordered to pay $1.179 million in restitution to his victims.
U.S. v. Gary Paul Moorman – Moorman (35, Cincinnati, OH) systematically and violently abused multiple victims and induced them, against their wills, to travel between Florida, Ohio, and elsewhere to commit acts of prostitution. He took provocative photos of the victims and posted prostitution advertisements online. After the victims were forced to provide the sex acts, Moorman demanded and took all of the proceeds for himself. Moorman pleaded guilty to inducement to travel to engage in criminal sexual activity and was sentenced to 20 years in federal prison.
U.S. v. Michael Gallon, U.S. v. Kavin Carter, U.S. v. Thomas Carr – Gallon (52, Lakeland) recruited minor and adult women to travel and work at “parties” and “VIP rooms” as “models,” where customers paid to have sex with them. Gallon partnered with Carter (42, Lake City), who co-hosted parties at his home, and they charged the women to use the “VIP” rooms and kept most of the money the women had earned. Carr (50, Jacksonville) was identified as one of Gallon’s regular customers. Gallon would call Carr when he had girls available and the two would meet so that Carr could select girls to take back to his home. Gallon pleaded guilty to sex trafficking a minor and distributing child pornography and was sentenced to 33 years and 9 months in federal prison. Carter pleaded guilty to sex trafficking and was sentenced to 16 years in federal prison. A federal jury in Jacksonville found Carr guilty of using underage girls to engage in sexually explicit conduct for the purpose of producing child pornography. He is scheduled to be sentenced on January 23, 2018.
U.S. v. Xavier Villanueva, Jose Carmona, Ashley Barnett, and Keith Romby – Orlando residents Villanueva (28), Carmona (24), Barnett (28), and Romby (27) agreed to recruit and entice a 14-year-old girl to engage in commercial sex acts. Over a period of nine days, they used drugs, intimidation, and physical restraint to cause the minor to engage in prostitution with customers they solicited online. The minor ultimately escaped from the house where she was being held captive. Villanueva, Carmona, and Romby were part of the “Nine Trey Billy Bad Ass” gang, which is affiliated with the “Bloods” street gang. A federal jury found Villanueva, Carmona, and Barnett guilty of conspiracy to commit sex trafficking of a minor. Carmona and Barnett were also found guilty of aiding and abetting each other in the commission of the offense. Romby pleaded guilty to both charges. Villanueva was sentenced to 19 years and 7 months in federal prison; Carmona was sentenced to a term of 12 years and 6 months; Barnett was sentenced to 10 years’ imprisonment; and Romby was sentenced to 8 years and 4 months in federal prison.
U.S. v. Maurice Williams and Antawan Hudson – Tampa brothers Williams (32) and Hudson (27) worked together to post online prostitution ads for underage females and then transported the girls throughout central Florida to have sex with customers. After the victims had sex with the customers, Williams and Hudson took some or all of the money and, in exchange, offered the victims drugs, alcohol, and beauty appointments. Hudson pleaded guilty to sex trafficking minors on the first day of trial and was sentenced to 30 years in federal prison. A federal jury found Williams guilty of child sex trafficking and possessing child pornography; he was sentenced to 40 years in federal prison.
U.S. v. Kennedy Harris, Jr. – Harris (24, Cocoa) took in a 16-year girl, after she ran away from home. He took sexually suggestive photographs of the girl and advertised her for sex on Backpage.com. He also enticed the victim to engage in sexually explicit conduct for the purpose of photographing her. Over the course of approximately two weeks, the teen had sex with up to eight individuals per day, and gave the money to Harris. In exchange for her sex acts, Harris gave the girl crack cocaine nearly every day. The victim was recovered by the Cocoa Police Department. A federal jury found Kennedy guilty of sex trafficking a child and producing child pornography. In May 2017, he was sentenced to 30 years in federal prison.
U.S. v. Alysia Algere – Algere, a/k/a “Coco” (30, Tampa), recruited two boys and a girl, who were between 14 and 16 years of age, to engage in commercial sex acts. She took sexually explicit photos of the teens and posted advertisements on online, selling them for sex. After pleading guilty, she was sentenced to 15 years in federal prison for sex trafficking.
U.S. v. Devin Pemberton – Pemberton (40, Tampa) recruited adult and minor women, via the Internet, to work for his “escort” business. Law enforcement identified multiple women, including at least three minors that he had trafficked. Pemberton recruited his victims and took photographs of them in sexually explicit clothing. He posted the photos online, scheduled clients for them to meet with, and provided housing and hotel rooms for the sex acts. He then took the proceeds from the sex acts. Pemberton was sentenced to 17 years and 6 months in federal prison.
U.S. v. Nathan Madsen – Madsen (37, Tampa), a music professor at the University of Tampa, was sentenced to nearly 18 years in federal prison for enticing a child to produce child pornography, and for possessing child pornography. Madsen responded to an online ad for prostitution services posted by Homeland Security Investigations. He requested and negotiated the price to have sex with a 14-year-old-girl. In an attempt to verify the existence of the minor, Madsen asked for her picture, spoke to her on the phone, withdrew money from the ATM, drove to the designated location, and met with an undercover special agent. Madsen paid the agent $140 to have sex with the teen. After his arrest, law enforcement determined that Madsen had engaged in a series of sexually explicit online conversations with a 16-year-old girl and had persuaded her to produce explicit images and videos for his personal benefit. At the time of his arrest, Madsen had 61 images and 14 videos of the girl, at least some of which depicted violence.
Farmington Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Alexis Tarango, 22, of Farmington, N.M., pled guilty last week in federal court in Santa Fe, N.M., to a methamphetamine trafficking charge.
Tarango was arrested on July 13, 2017, on indictment charging him with possession of more than 50 grams of methamphetamine with intent to distribute on Jan. 30, 2016, in San Juan County, N.M. On Jan. 5, 2018, Tarango entered a guilty plea to the indictment without the benefit of a plea agreement.
At sentencing, Tarango faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison.
This case was investigated by the Farmington office of the FBI and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Margaret M. Vierbuchen is prosecuting the case.
Essex County, New Jersey, Man Pleads Guilty to Bank RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing a TD bank in Newark in May 2017, U.S. Attorney Craig Carpenito announced.
Tyrone Anderson, 46, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of bank robbery.
According to the documents filed in this case and statements made in court:
Anderson admitted that during the May 26, 2017 bank robbery, he handed a teller a hand-written note demanding cash and threatening the teller to “make it quick.” Anderson then took cash from the teller and fled. Fingerprints recovered from the scene of the robbery led to Anderson’s arrest several days later.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Anderson’s sentencing is scheduled for April 16, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, and the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Leticia Olivera Esq., Assistant Federal Public Defender, Newark
District Woman Sentenced to 45 Years in Prison for Beating Death of Three-Year-Old SonRead the Press Release
WASHINGTON – Francis Lyles, 29, of Washington, D.C., was sentenced today to 45 years in prison on charges of felony murder and first-degree cruelty to children in the beating death of her three-year-old son in June 2014, U.S. Attorney Jessie K. Liu announced.
Lyles was found guilty by a jury in November 2017, following a trial in the Superior Court of the District of Columbia. She was sentenced by the Honorable Zoe Bush. Following her prison term, Lyles will be placed on five years of supervised release.
According to the government’s evidence, on June 18, 2014, Lyles beat her three-year-old son, Xavier, for upsetting her newborn’s bouncer seat. On June 23, 2014, at about 8:30 p.m., Lyles became upset again with her son, who had been running through their apartment in Southeast Washington. She repeatedly beat him with her hands and/or fists, causing multiple bruises and a lacerated liver. She used so much force that the child’s kidney avulsed from the urethral casing. Xavier lost approximately one third of his blood from internal bleeding. He vomited and was left unattended without food, water or medical treatment for about 15 hours.
At about 11 a.m. on June 24, 2014, Lyles entered the child’s room and tried to wake him. He was not moving or breathing. Lyles first called her cousin and then called 911 for an ambulance. The District of Columbia Department of Fire and Emergency Medical Services came to the residence, and Xavier was pronounced dead in the ambulance. The District of Columbia’s Office of the Chief Medical Examiner determined that Xavier died from multiple blunt force injuries and the cause of death was homicide.
Initially, Lyles led law enforcement to believe that her boyfriend had beaten the child when she left Xavier in his care. The boyfriend lived with Lyles and her children in the apartment. For weeks, law enforcement followed her information and leads. As the investigation continued, however, the prosecution learned that, contrary to her statements, Lyles was responsible for the death of her son. Lyles’s cousin had an app which recorded all of their incoming and outgoing phone calls. Several calls were found in which the defendant admitted to having “whooped “her son on several occasions. According to the medical examiner’s office, the child had more than 70 injuries.
Lyles was arrested on Sept. 16, 2014, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu expressed appreciation for the work the Metropolitan Police Department, the U.S. Marshal’s Service, and the U.S. Secret Service. She also expressed appreciation for the assistance provided by the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences.
U.S. Attorney Liu acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Laura R. Bach, Michelle D. Jackson, Lindsey Merikas, Chrisellen Kolb, and John Mannarino; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Victim/Witness Advocates Marcia Rinker, Jennifer Clark, Karen Giannakoulias, and Tracy Owusu; Liaison and Operations Manager Linda McDonald; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Kelly Blakeney, Mia Beamon, Alesha Matthews, Meridith McGarrity, Stephanie Gilbert, and Lornce Applewhite; Criminal Investigators Durand Odom, Tommy Miller, John Marsh, Melissa Matthew, Nelson Rhone, Mark Crawford, Shannon Alexis, Sharon Johnson, and Zachary McMenamin, and Litigation Technology Specialists Anisha Bhatia, Paul Howell, Jeannie Latimore-Brown, Joshua Ellen, and Leif Hickling.
Finally, she expressed appreciation for the work of Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
Corpus Christi Man Heads to Prison for Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas - A 53-year-old resident of Corpus Christi has been ordered to prison after admitting he attempted to meet two underage girls for the purpose of sex, announced U.S. Attorney Ryan K. Patrick. Jesse Hernandez pleaded guilty Oct. 5, 2017.
Today, Senior U.S. District Judge Janis Graham Jack handed Hernandez a 210-month sentence. He was further ordered to serve the rest of his life on 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.
Hernandez was communicating with a person he believed was the mother of two minor children - ages 14 and 11. He made arrangements to meet and engage in sexual contact with the minors, but was apprehended as he arrived at the designated meeting place. Hernandez admitted he had sent messages indicating his intention to engage in sexual acts with the children. He was also in possession of a cellular telephone, on which a forensic examination resulted in the discovery of 26 images of child pornography.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations and the Corpus Christi Police Department - Internet Crimes Against Children Task Force conducted the investigation as part of Operation Hidden Predator, a joint investigation targeting individuals involved in online solicitation of minors.
Hernandez was arrested on the federal charges in July 2017 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Assistant U.S. Attorney Hugo R. Martinez prosecuted the case 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."
Carroll County Business Owner Sentenced on Federal Tax ChargesRead the Press Release
Abingdon, VIRGINIA – A Carroll County business owner, who paid some of his employees in cash to avoid paying taxes to the Internal Revenue Service and later lied in a bankruptcy proceeding, was sentenced today in federal court in Abingdon, United States Attorney Rick A. Mountcastle announced.
Jones Keith Andrews, 62, of Galax, Va., was sentenced today to imprisonment for a term of 24 months and was ordered to pay the Internal Revenue Service restitution in the amount of $609,604. Andrews previously pleaded guilty without the benefit of a plea agreement to one count of conspiracy to defraud the United States by impeding, impairing, obstructing and defeating the lawful function of the Internal Revenue Service, 17 counts of failure to pay or collect tax, and one count of bankruptcy fraud.
Between 2009 and March 2015, Andrews, and others, executed a scheme in which a portion of the wages paid to employees of Andrews Farming was paid via paycheck and the remainder was paid in cash. For each quarter from 2009 through 2014, the conspirators caused IRS Forms 941 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms 941 only listed the wages paid to employees via paycheck and did not include the amounts paid via cash.
In addition, for each year from 2009 through 2014, the conspirators caused Forms W2 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms W2 listed only wages paid via paycheck and not the wages paid in cash.
The cash paid to employees was obtained by cashing of personal and company checks. Over $1 million in cash was obtained by the cashing of those checks.
In addition, Andrews knowingly made a false statement, under oath, during a bankruptcy hearing in May 2016. Andrews claimed at a May 5, 2016, bankruptcy hearing that Andrews Farming had lost approximately $1.3 million due to “embezzlement of employee, Robert Donald Morgan, III,” when in fact Andrews knew that was not true and correct. Andrews knew that a significant portion of the amounts he attributed to embezzlement by Morgan were, in fact, used to pay cash wages.
Robert Donald “Donnie” Morgan previously pleaded guilty for his role in the criminal activity and was sentenced to imprisonment for a term of six months on March 29, 2016.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigation and the United States Secret Service. The Blacksburg, Virginia, Police Department provided valuable assistance in forensically analyzing the computers seized in the case. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
California Man Sentenced for Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A California man was sentenced today in federal court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Vira Yuth Chao, 41, of Temecula, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 86 months in prison and three years of supervised release. In March 2017, Chao pleaded guilty to conspiracy to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Chao and co-conspirator Ratanack Oung, of Allentown, Penn., were charged and arrested. In December 2017, Oung was sentenced to four years in prison.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, Oung collected drug proceeds from co-conspirators and deposited the cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks along the East Coast, including in Massachusetts. The “feeder” accounts were maintained in the names of businesses or individuals associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the accounts. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 to 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Criminal Division prosecuted the case.
Buffalo Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Butler, 43, of Buffalo, NY, who was convicted of possession of child pornography, was sentenced to 120 months in prison and 20 years supervised release by U.S. District Judge Lawrence J. Vilardo. The defendant must also pay $3,000 in restitution to victims.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on April 13, 2016, Butler was convicted in state court of one count of promoting a sexual performance by a child, and subsequently sentenced to 10 years probation. On July 19, 2016, an Erie County Probation Officer searched Butler’s residence and recovered two cellular phones with internet capabilities. As a condition of his probation, Butler was prohibited from possessing such devices. A forensic examination determined that one phone contained over 300 images of child pornography, some of which depicted children under the age of 12, as well as images of violence.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Cheektowaga Police Department, under the direction of Chief David Zack.