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Thursday 7 December 2017
Port St. Lucie Man Sentenced to Life in Prison for Producing and Distributing Child Pornography, Coercing Minors to Produce Child Pornography, and Possessing Child PornographyRead the Press Release
A Port St. Lucie resident was sentenced to life in prison for producing and distributing child pornography, coercing minors to produce child pornography, and possessing child pornography.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Scott Joseph Trader, 32, of Port St. Lucie, Florida, previously pled guilty to enticement of a minor to engage in sexual activity, in violation of 18 U.S.C. § 2422(b); distribution of material containing visual depictions of sexual exploitation of minors, in violation of 18 U.S.C. §§ 2252(a)(2) & (b)(1); possession of matter containing visual depictions of sexual exploitation of minors, in violation of 18 U.S.C. §§ 2252(a)(4)(B) & (b)(2); and production of material containing visual depictions of sexual exploitation of minors, in violation of Title 18 U.S.C §§ 2251(a) & (e) (Case No. 17-CR-14047-Middlebrooks).
According to court records, since at least November 2014 through May 31, 2017, Trader video recorded himself sexually abusing two minor girls entrusted to his care, one of whom was two years old. Trader also coerced dozens of minor victims online to send him child pornography using social media applications and collected vast amounts of child pornography from the internet, including the sexual abuse of infants and toddlers, sadism and masochism, and bestiality. Trader distributed large amounts of child pornography over the internet to adults and to minor victims as young as eight years old, which included the videos/images of the defendant’s own sexual abuse of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigation efforts of ICE-HSI, ICE-HSI in Winston-Salem, North Carolina and the Port Saint Lucie Police Department. This case is being prosecuted by Assistant United States Attorney Marton Gyires.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pair Charged with Creating Child Pornography of ToddlerRead the Press Release
CINCINNATI – A federal grand jury has charged two individuals – Ciera Richter, 25, of Cincinnati, and Jason Fletcher, 40, of Franklin, Ohio – with charges related to the selling of a child and creating child pornography in an indictment returned here yesterday afternoon.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), announced the charges.
According to court documents, Fletcher was previously convicted by the state of Ohio of importuning a minor, among other crimes. Under the terms of his probation, he was not to possess pornography of any kind.
In May 2017, during a visit with his probation officer, the officer noticed Fletcher had two mobile devices and, after having Fletcher provide access to the devices, started to review the phones’ contents. The probation officer found pornography of a minor female on one of the phones and Fletcher was subsequently arrested.
Search of the phone revealed, among a collection of child pornography, child pornography videos made with the phone. Some of the videos on the phone involve Fletcher, Richter and a two-year-old.
In the videos, Richter helps hold, entertain and position the toddler, while Fletcher records himself sexually abusing the child.
According to the indictment and other court documents, Richter procured a two-year-old for the purpose of making the videos and intended to sell the videos.
“The indictment alleges that Richter provided the toddler to Fletcher with the knowledge that as a consequence of the transfer, the two-year-old would be portrayed in child pornography,” U.S. Attorney Glassman said. “Offenses like those alleged here are among the most heinous, and most important, that we prosecute. We take seriously our duty and responsibility to keep children safe from those who would prey upon them.”
“Child pornography is the permanent record of a child being sexually exploited, and this victimization continues every time that image is transmitted, downloaded, shared or viewed,” said Steve Francis, Special Agent in Charge of HSI for Michigan and Ohio. “HSI special agents take special pride in their role of seeking justice on behalf of those who have been sexually exploited and victimized.”
Each defendant is charged with one count of conspiracy to produce child pornography and production of child pornography. Those crimes generally carry a potential sentence of 15 to 30 years in prison. Fletcher faces a potential range of 35 years to life in prison, because he has at least two prior state convictions for crimes involving children.
Richter is also charged with one count of selling a child, which is punishable by a range of 30 years to life in prison.
U.S. Attorney Glassman commended the investigation of this case by HSI and the Warren County Sheriff’s Department, as well as Assistant United States Attorney Megan Gaffney, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Ozark Man Pleads Guilty to Counterfeit Airbag SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Ozark, Mo., man has pleaded guilty in federal court to a scheme to sell counterfeit automotive airbags and components online.
Aleksey Illyuk, 28, of Ozark, pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, Dec. 6, 2017, to one count of mail fraud and one count of smuggling goods into the United States.Illyuk admitted that he sold counterfeit automotive airbags and airbag components on his online eBay stores, CarPro 417 and CarPro Electronics. Illyuk received shipments from various Chinese manufacturers of airbags, airbag covers and other items that contained the trademarks of Honda, Toyota, Chevy, Ford and other companies. Each of these imported airbags contained trademarks and markings that made it appear the legitimate holder of the trademark had manufactured the airbags. Illyuk fraudulently marketed these items as airbags that had been manufactured by the legitimate trademark holder, when he knew that the parts were counterfeit and not manufactured by the legitimate trademark holder.
Illyuk sold approximately $120,000 worth of counterfeit items to consumers throughout the United States through his online stores from Jan. 1, 2015, to Aug. 17, 2017. The fact that the airbags and the airbag components parts were counterfeit and not manufactured by the legal holders of the displayed trademark or logo on the item was never truthfully disclosed to the consumers.
Under the terms of his plea agreement, Illyuk must forfeit to the government $103,000 obtained from the proceeds of his illegal scheme, as well as 150 counterfeit Toyota airbags and component parts (including 24 inflators and fully assembled airbags); 77 counterfeit Honda airbags and component parts (including 4 fully assembled airbags); 70 counterfeit Chevy/GMC airbags and component parts; 54 counterfeit Ford airbags and component parts; 207 counterfeit Nissan airbags and component parts (including 2 fully assembled airbags, 102 name plates, and 25 airbag covers); 8 counterfeit Infiniti airbag covers; 10 counterfeit Accura airbags and component parts; 13 counterfeit Hyundai airbags and component parts; 7 counterfeit BMW airbags and component parts (including 5 fully assembled airbags); 4 counterfeit Subaru airbags and component parts; 4 counterfeit Lexus fully assembled airbags; 1 counterfeit Mazada airbag and component part; and $17,000 seized by law enforcement agents.
Under federal statutes, Illyuk is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and IRS-Criminal Investigation.
Oklahoma City Man Pleads Guilty to Attempting to Entice a 14-Year-OldRead the Press Release
Oklahoma City, Oklahoma – HARRY DEAN WHEELER, JR., 67, of Oklahoma City, pleaded guilty today to attempting to entice a minor to have sex, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to an affidavit in support of a criminal complaint, an undercover agent with the Oklahoma Bureau of Narcotics and Dangerous Drugs posted an advertisement on Craigslist on September 19, 2017, in which he claimed to be a boy looking for a "daddy" who would be "willing to teach me about sex." The affidavit explains that through the Craigslist email reply function, Wheeler used explicit sexual language to indicate he wanted to meet the boy for a sexual encounter. He also included three nude photos of himself. According to the affidavit, the undercover agent responded: "Wow, your [sic] hot and sound really cool. Just to get it out of the way, I’m 14, but I’m very mature for my age, that’s why I don’t mind older guys." The affidavit states Wheeler then replied by email: "We must keep it a secret as what we will be doing is not legal." Wheeler allegedly arranged to meet the person he thought was a 14-year-old boy in the parking lot of a business at 5501 North May Avenue in Oklahoma City, with the intention of driving him to his own residence. When Wheeler arrived at the parking lot and identified himself to the undercover agent as "daddy," federal agents arrested him.
The U.S. Attorney’s Office filed a criminal complaint against Wheeler on September 21, 2017. On November 8, 2017, a federal grand jury indicted him on one count of using a facility and means of interstate commerce to attempt to persuade, induce, and entice an individual he believed to be under the age of 18 to engage in sexual activity. This afternoon, Wheeler pleaded guilty to that offense before U.S. District Judge Timothy D. DeGiusti.
At sentencing, Wheeler faces a mandatory minimum sentence of ten years in prison. He could receive a maximum sentence of life in prison. He will serve at least 5 years and up to life on supervised release after incarceration and could be fined up to $250,000. He may also be required to pay a $5,000 special assessment. The court ordered Wheeler to remain in the custody of the U.S. Marshals Service until sentencing, which will take place in approximately 90 days.
This case is the result of an investigation by Homeland Security Investigations, part of the U.S. Department of Homeland Security, and the Oklahoma Bureau of Narcotics and Dangerous Drugs. Assistant U.S. Attorney Brandon Hale is prosecuting the case. Reference is made to court filings for further information.
Mountain Grove Woman Pleads Guilty to Counterfeit Louis Vuitton SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Mountain Grove, Mo., woman has pleaded guilty in federal court to smuggling counterfeit Louis Vuitton material into the United States so that she could make and sell counterfeit merchandise on her website.
Tonya Virtue, 33, of Mountain Grove, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, Dec. 6, 2017, to one count of smuggling goods into the United States.
Virtue admitted that she sold approximately $50,000 worth of counterfeit Louis Vuitton items through her online store, Soul Sisters, to customers throughout the United States. Virtue received shipments of fabric and material affixed with counterfeit Louis Vuitton trademarks and logos from an overseas Chinese manufacturer between Jan. 1 and Sept. 27, 2017. Virtue created counterfeit handbags, purses and other items from the counterfeit fabric, which she sold to consumers who believed they were purchasing items created by Louis Vuitton.
Under the terms of her plea agreement, Virtue must forfeit to the government $50,000 derived from the proceeds of the criminal scheme, as well as 17 Louis Vuitton clutch bags, 34 Louis Vuitton shoulder bags, 4 Louis Vuitton duffle bags, 9 Louis Vuitton wallets, 5 incomplete Louis Vuitton shoulder bags, 3 13-by-55-foot sheets of Louis Vuitton material, 1 15-by-55-foot sheet of Louis Vuitton material, 60 13-by-26-inch sheets of Louis Vuitton material, 36 Louis Vuitton-branded boxes.
Under federal statutes, Virtue is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and IRS-Criminal Investigation.
Monongalia County man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Morgantown, West Virginia, man has admitted to a firearm charge, United States Attorney Bill Powell announced.
Roger Dale LaMar, age 48, pled guilty to one count of “Unlawful Possession of a Firearm.”
Lamar, having previously been convicted of second degree murder in Preston County Circuit Court in 2001, admitted to having three firearms in his possession. The crime occurred in February 2017 in Taylor County.
LaMar faces up to 10 years incarceration and a fine of up to $250,000. 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 Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Taylor County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.Mexican National Indicted for Cocaine TraffickingRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Mexican national has been indicted by a federal grand jury for possessing more than two kilograms of cocaine thrown from his vehicle while fleeing from police officers.
Rosvel Flores Montantes, 33, a citizen of Mexico residing in Kansas City, Kan., was charged with one count of possessing cocaine with the intent to distribute in an indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, Dec. 6, 2017. The indictment replaces a federal criminal complaint filed against Flores on Nov. 15, 2017.
According to an affidavit filed in support of the original criminal complaint, the investigation began with a confidential source who was in contact with a broker in Mexico to engage in a cocaine transaction. Investigators were informed that a transaction would take place in the parking lot of the Super 8 motel in Riverside, Mo.
Flores arrived at the parking lot driving a Ford F-250 and approached a Nissan sedan. Flores got out of his truck, engaged in conversation with the occupant of the other vehicle, then got into the passenger side of the Nissan. Flores got out of the Nissan and retrieved something from the truck, then returned to the passenger seat of the Nissan. Flores got out of the Nissan again, this time carrying a pastel-colored bag, got back into the truck, and began to leave the parking lot.
Officers attempted to make a traffic stop, the affidavit says, because the license plates on the truck belonged to another vehicle. However, upon observing the lights and sirens of the police vehicles, Flores began to elude law enforcement officers by speeding and failing to stop for traffic signals. The F-250 truck began traveling at high speeds onto I-635 North, ignoring the emergency lights and sirens of multiple law enforcement marked and unmarked units.
The F-250 truck performed several evasive maneuvers for approximately seven to 10 minutes in an attempt to evade law enforcement. The F-250 finally came to an abrupt stop going north bound on 69 Highway just past Merriam Lane in Merriam, Kan. Flores and a passenger got out of the truck and attempted to flee from law enforcement officers on foot. They were both arrested.
Investigators found the pastel bag, which had been discarded during the pursuit, by retracing the path of the fleeing vehicle. According to the affidavit, the bag contained four brick-size amounts of cocaine wrapped in dark-colored wrapping, which weighed a total of 2,355 grams.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Bruce Clark. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Mexican Citizen Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Maria Angelica Cruz Lancheros, a/k/a Coral Marisol Tovar Flores, age 41, and a citizen of Mexico, pled guilty today to illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Cruz Lancheros admitted that she was removed from the United States to Mexico on July 7, 2009 and again on June 14, 2010. In 2010, Cruz Lancheros was convicted of this same offense, re-entry of a removed alien, in the United States District Court for the Western District of Texas. Cruz Lancheros admitted that she returned to the United States without permission after those removals and that on May 6, 2017, she was in Burke, New York.
As a result of her conviction, Cruz Lancheros faces up to 10 years in prison and a fine of up to $250,000 when she is sentenced by Chief United States District Judge Glenn T. Suddaby on April 6, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Massachusetts Man Sentenced for Committing Bank Robberies in Three New England StatesRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Vincent M. Torraco, 26, of Athol, Massachusetts, was sentenced to serve 43 months in federal prison for a series of bank robberies that occurred in New Hampshire, Massachusetts, and Connecticut.
According to court documents and statements made during Torraco’s earlier plea hearing, Torraco robbed TD Bank branches in Gardner, Massachusetts, on September 16, 2016, in Rindge, on September 23, 2016, and in Winchester, Connecticut, on September 24, 2016. In each robbery, Torraco passed a note to a bank teller demanding money. In at least two of the robberies, the notes included warnings not to include dye packs with the money. Torraco was identified as the robber in each instance through bank security images, which revealed distinctive clothing and physical characteristics common to Torraco, and in one case a fingerprint on the demand note. Torraco was arrested on September 27, 2016, in Huntersville, North Carolina.
Torraco previously pleaded guilty to three counts of bank robbery. After serving his sentence, he will serve a three-year term of supervised release.
“Bank robberies are inherently violent offenses that can jeopardize the lives of bank employees and customers,” said Acting U.S. Attorney Farley. “The U.S. Attorney’s Office is committed to working with all of our law enforcement partners to combat violent crime and to improve the safety of our communities.”
Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division said, "Mr. Torraco not only took money from a federally insured bank, he also intimidated the tellers, and wasted taxpayer resources by requiring law enforcement officers to search for him. This sentence imposed on the defendant reflects the serious nature of bank robbery. The FBI is proud of the relationship with its law enforcement partners and working together, we are able to make our community a safer place."
The investigation of this matter was overseen by the Federal Bureau of Investigation and conducted by the Rindge (N.H.) Police Department, the Gardner (Massachusetts) Police Department, the Winchester (Connecticut) Police Department and the Huntersville (North Carolina) Police Department. The prosecution of the case is being coordinated with the U.S. Attorney’s Offices for the Districts of Massachusetts and Connecticut, the Middle District (Massachusetts) Attorney’s Office, and the Litchfield County (Connecticut) State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Bill Morse.
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Machine Shop Employee Pleads Guilty to Federal Charges of Illegally Manufacturing Assault Rifles and Silencers He Intended to SellRead the Press Release
LOS ANGELES – A Los Angeles man pleaded guilty today to two counts of unlawful manufacturing and dealing in firearms, specifically short-barreled AR-15-style assault rifles and silencers.
Axel Fernando Galvez, 36, who resides in Watts, pleaded guilty to two felony firearm offenses before United States District Judge Christina A. Snyder.
Galvez admitted in court that he purchased components for firearms from multiple sellers to disguise the quantity he was buying. Galvez then finished the parts and assembled the assault rifles at a South Los Angeles machine shop where he worked.
On August 28, 2017, Galvez sold five of these assault rifles, through an intermediary, to an undercover operative with the United States Postal Inspection Service. Galvez believed that the undercover operative was a convicted felon and was going to resell the weapons in Egypt and the Philippines.
In further discussions with the undercover operative, Galvez negotiated the sale of another 100 homemade assault rifles, offering a bulk discount.
In a plea agreement filed in federal court, Galvez also admitted that he manufactured five silencers for firearms.
Galvez, who is being detained without bond, is scheduled to be sentenced by Judge Snyder on March 12. As a result of today’s guilty pleas, Galvez faces a statutory maximum sentence of 10 years in prison.
A second man charged as a result of this investigation – Marcos Ernesto Chavarria, 31, of Inglewood – also pleaded guilty today and admitted conspiring to distribute methamphetamine. Judge Snyder is scheduled to sentence Chavarria also on March 12, at which time he will face a statutory maximum sentence of 20 years in federal prison.
During the investigation into Galvez, the Postal Inspection Service worked jointly with the Los Angeles Police Department Parcel Task Force. The Bureau of Alcohol Tobacco, Firearms and Explosives; and the Los Angeles Joint Regional Intelligence Center provide substantial assistance.
This case is being prosecuted by Assistant United States Attorney Andrew Brown of the Major Frauds Section.
Louisiana Resident Indicted in Stolen ID Refund Fraud SchemeRead the Press Release
A former resident of Tangipahoa Parish, Louisiana, was charged with conspiring to defraud the United States and aiding and assisting in the preparation of false tax returns, announced Acting Deputy Assistant Attorney Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
According to the indictment, Aaron Daniels conspired with others to defraud the United States by filing tax returns with the Internal Revenue Service (IRS) that sought fraudulent refunds. Daniels allegedly obtained the IDs of inmates he was incarcerated with in the East Carroll Detention Center and provided this information to his co-conspirators in exchange for a fee so they could file fraudulent tax returns. Daniels is also charged with assisting in the preparation and presentation of seven false tax returns, including his own personal returns, which allegedly included false dependents and education credits, and sought inflated refunds.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Daniels faces a statutory maximum sentence of five years in prison for the conspiracy charge and three years for each of the seven false return charges. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Evans commended special agents of IRS Criminal Investigation and the U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Louisiana Resident Indicted in Stolen ID Refund Fraud SchemeRead the Press Release
WASHINGTON –A former resident of Tangipahoa Parish, Louisiana, was charged with conspiring to defraud the United States and aiding and assisting in the preparation of false tax returns, announced Acting Deputy Assistant Attorney Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
According to the indictment, Aaron Daniels conspired with others to defraud the United States by filing tax returns with the Internal Revenue Service (IRS) that sought fraudulent refunds. Daniels allegedly obtained the IDs of inmates he was incarcerated with in the East Carroll Detention Center and provided this information to his co-conspirators in exchange for a fee so they could file fraudulent tax returns. Daniels is also charged with assisting in the preparation and presentation of seven false tax returns, including his own personal returns, which allegedly included false dependents and education credits, and sought inflated refunds.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Daniels faces a statutory maximum sentence of five years in prison for the conspiracy charge and three years for each of the seven false return charges. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Evans commended special agents of IRS Criminal Investigation and the U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Longs Man Pleads Guilty to Gun and Drug and Charges in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Quavon Melik Bellamy, age 22, of Longs, SC, pled guilty in federal court in Florence to Possession of a Stolen Firearm and Ammunition and Possession with Intent to Distribute Marijuana. United States District Judge Bryan Harwell, of Florence, heard the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on February 14, 2017, law enforcement responded to a call about a man with a gun. The female 911 caller provided officers with Bellamy’s name and a vehicle tag number. Officers ran the tag and identified the address on the vehicle’s registration. Officers responded to the address and located the vehicle in the front yard. When the officers arrived at the residence, Bellamy exited the house and officers informed him of the victim’s report. Bellamy stated that he ran into the victim and they had “words,” but he denied possessing or presenting a firearm. Officers confirmed the vehicle was registered to Bellamy and inquired about firearms in the vehicle. Bellamy responded there were no firearms in the vehicle and gave consent to a search of the vehicle. Upon opening the vehicle door, the officer immediately smelled marijuana. Officers searched the vehicle and located a black purse on the back seat that contained two glass jars of marijuana and a scale. Officers also found a Springfield Armory 9mm handgun on the rear floorboard, fully loaded with fifteen rounds of ammunition including one in the chamber. After being advised of his rights and agreeing to speak with law enforcement, Bellamy initially claimed he did not know anything about the firearm, only later to admit it was his and that he presented it to the victim. After running the firearm’s serial number through dispatch, officers confirmed that the firearm was stolen.
US Attorney Drake stated that Bellamy faces a maximum penalty ten years in federal prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Horry County Police Department, the Horry County Sheriff’s Office, and the South Carolina Highway Patrol. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
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Local Chiropractor and Wife, and One Police Officer Plead Guilty to Federal ChargesRead the Press Release
St. Louis, MO - Police Officer Terri Owens of the St. Louis Metropolitan Police Department (SLMPD); Dr. Mitchell Davis, a St. Louis chiropractor; and his wife Galina Davis, all pled guilty today to federal charges arising out of a scheme to obtain un-redacted accident reports for use in Dr. Davis’s practice.
According to court documents, between 2007 and 2016, Dr. Davis owned and operated Davis Chiropractic Clinic, now known as City Health and Chiropractic. Located on Lindell Blvd in St. Louis, the clinic primarily provided services to accident victims. Galina Davis assisted Dr. Davis in identifying, soliciting, and scheduling potential accident victims.
According to SLMPD policy, the SLMPD will provide un-redacted accident reports only to persons involved in the accidents, the companies insuring them, or the lawyers representing them. Un-redacted accident reports contain detailed information, including addresses, telephone numbers, birthdates, and insurance information of the occupants of the vehicles. Dr. Davis and Galina Davis knew that the SLMPD would not disclose un-redacted police reports to them. To get around this policy, Galina Davis and Dr. Davis recruited, solicited, and paid individual SLMPD police officers to obtain un-redacted accident reports for them.
According to court documents, while on duty, Officer Owens accessed the SLMPD computers and thereafter disclosed the un-redacted reports to Galina Davis and Dr. Davis in exchange for cash payments. Owens knew that she was acting contrary to the SLMPD policies. In an attempt to conceal the bribery payments, Galina Davis met the officer on parking lots of various retail stores and paid the officers in cash for each un-redacted accident report.
Using the information from the un-redacted reports, Galina Davis contacted accident victims, identified herself as Gail, Allison, Kelly, Laura, or Shannon, and offered the accident victims free services at Davis Chiropractic. Dr. Davis and Galina Davis focused on identifying accident victims from neighborhoods where there was a large concentration of low-income victims. They believed that low-income individuals would be more receptive to their solicitations and offers of free services.
Once the accident victims came to Davis Chiropractic, Dr. Davis encouraged and pressured them to rate their pain level as 8 or 9 on a scale of 1 to 10, with 10 being the worst. Dr. Davis told the patients that the higher pain level was necessary to obtain a higher settlement amount. Sometimes, patients would succumb to Dr. Davis’s pressure and enter a higher pain level. At other times, Dr. Davis entered a pain level in the patient records that was higher than the patients reported.
Dr. Davis routinely told patients that they needed about 21 chiropractic treatments, before the patients were examined and the nature, location, and severity of any injury had been determined. He also routinely referred accident patients to pain management doctors before there had been a determination that the patients needed the services. Dr. Davis told the patients that the chiropractic visits and the visits to pain management doctors would increase the amount of the insurance settlement. Dr. Davis’s share of the insurance settlement depended on the type and number of services that Davis Chiropractic provided to the accident victims.
Dr. Davis completed and submitted patient treatment records containing false information, which he knew insurance companies would consider in making settlement decisions.
Dr. Davis and the Government have stipulated that the loss resulting from the false statements in the patient health records is $550,000. The parties have further stipulated that the loss to the SLMPD is $146,000.
“This type of fraud affects more than the individuals involved. If the companies being defrauded pass on the cost, you end up paying more for insurance,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “It is particularly egregious when the fraud is committed by those in positions of public trust.”
Terri Owens, 55, appeared before United States District Judge Rodney W. Sippel and pled guilty to one count of accepting bribes in violation of 18 U.S.C. § 666. The bribery charges carry a penalty of up to ten years in prison, a fine of up to $250,000, or both. Sentencing is set for March 9, 2018.
Dr. Mitchell Davis, 47, of St. Louis County, appeared before Judge Sippel and pled guilty to one count of false statements relating to healthcare matters in violation of 18 U.S.C. § 1035, and one count of conspiracy to commit bribery and false statements in violation of 18 U.S.C. § 371. The health care related fraud charge carries a penalty of up to five years in prison, a fine of up to $250,000, or both. The conspiracy charge carries a penalty of up to five years in prison, a fine of up to $250,000, or both. Sentencing is set for March 9, 2018.
Galina Davis, 47, of St. Louis County, appeared before Judge Sippel and pled guilty to one count of conspiracy to gain illegal access to a protected SLMPD computer in violation of 18 U.S.C. § 371, and faces up to one year in prison, a fine of up to $100,000, or both. Sentencing is set for March 9, 2018.
Two other former police officers have been charged in a related case. On December 6, 2017, Marlon Caldwell, 50, of St. Louis City, and Cauncenet Brown, 42, of Perris, CA, were indicted by a federal grand jury on one count of conspiracy to accept bribes in return for disclosing un-redacted police reports in violation of 18 U.S.C. § 371. They each face a penalty of up to five years in prison, a fine of up to $250,000, or both.
The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General. Assistant United States Attorneys Dorothy McMurtry and Reginald Harris are handling the case for the U.S. Attorney’s Office.
Lincoln County man pleads guilty for failing to register as a sex offenderRead the Press Release
CHARLESTON, W.Va. – A Lincoln County man faces up to 10 years in federal prison after pleading guilty today for failing to register as a sex offender, announced United States Attorney Carol Casto. Cody Matthew Wroblewski, 32, of Harts, also faces a term of federal supervised release of at least five years and up to life following his sentence.
Wroblewski admitted that from January 2017 until his arrest on August 30, 2017, he failed to register as a sex offender as required by the Sex Offender Registration and Notification Act. On August 30, 2017, Wroblewski was located and arrested at his residence on Bag Harts Creek Road in Lincoln County. Wroblewski was required to register as a sex offender because of a 2011 South Carolina conviction for third degree criminal sexual conduct. He was also previously convicted in 2012 in South Carolina for failing to update his sex offender registration.
The United States Marshals Service and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. Chief United States District Judge Thomas E. Johnston presided over the plea hearing.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Liberian National Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Isaac T. Kannah, 51, of Philadelphia, PA, pleaded guilty to misprision of a felony, before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of four years imprisonment and a $250,000 fine.Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that, in May 2011, an Immigration Judge of the Executive Office of Immigration Review was conducting removal proceedings against George Boley, the former head of the Liberian Peace Council during the Liberian Civil War in the 1990s. One of the issues material to the removal proceedings was whether the Liberian Peace Council was a warring or fighting faction during the war. During the removal proceedings, Boley offered false and inaccurate testimony on this issue, asserting that the Liberian Peace Council was not a warring or fighting faction, in an effort to corruptly influence, obstruct and impede those proceedings, a felony in violation of Title 18, United States Code, Section 1505.
In May 2011, the defendant knew that Boley was offering false and inaccurate testimony in order to obstruct the removal proceedings. Despite this knowledge, the defendant failed to notify the relevant federal authorities (such as the Immigration Judge or federal law enforcement authorities) about the crime. In addition, Kannah also sought affirmatively to conceal the crime by failing to state that the Liberian Peace Council was in fact a warring faction during the Liberian Civil War despite being questioned on that issue during his testimony at Boley’s removal proceedings.
The plea is the result of an investigation by the Buffalo Office of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly and the Philadelphia Office of ICE-HSI.
The United States Attorney’s Office was assisted in this investigation and prosecution by Brenda Sue Thornton, a Department of Justice Trial Attorney with the Counterterrorism Section, National Security Division.
Sentencing is scheduled for May 9, 2018, at 2:30 p.m. before Judge Larimer.
Lawyer Living Lavish Lifestyle Pleads Guilty to Filing False Tax ReturnRead the Press Release
COLUMBUS, Ohio – Scott W. Atway, 44, of Powell, pleaded guilty in U.S. District Court to filing a false tax return.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
According to the Statement of Facts in this case, for several years, including 2010 through 2013, Atway owned multiple Verizon Wireless stores in Central Ohio aside from being a self-employed attorney who operated his own law practice. In 2013, he also generated income from a real-estate holding company for his rental properties.
Atway provided incomplete or false documents to his tax-return preparer. He further made false statements to her when asked to justify how he paid for his lifestyle.
During this timeframe, Atway was building and improving upon a luxury home in Powell. He paid more than $800,000 to contractors for additions including an enclosed tennis court, basketball court, in-ground pool, six-car garage and an elevator. These expenses could not have been covered by the amount of taxable income Atway reported to the IRS.
He was also buying high-end cars, including a $99,000 Land Rover, a $50,000 Porsche 911, a $24,000 Lexus IS250, a $71,000 BMW X6 and a nearly $143,000 Audi R8. For these cars, he either received no financing or paid off the loans early, and the income he reported to the dealerships was much greater than what he reported on his tax returns.
For 2010 through 2013, Atway caused a tax loss to the United States of between $250,000 and $1.5 million.
“Scott Atway is well-educated and seemingly a successful businessman, but he chose to lie to the IRS and now he is a convicted felon,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Filing a false tax return is a federal crime punishable by up to three years in prison.
U.S. Attorney Glassman commended the cooperative investigation by the IRS Criminal Investigation, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is representing the United States in this case.
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Lawrence Nassar Sentenced to 60 Years in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Lawrence Gerard Nassar, 54, of Holt, Michigan, was sentenced to 60 years in federal prison for child-pornography and obstruction-of-justice offenses, U.S. Attorney Andrew Birge announced today. U.S. District Judge Janet T. Neff ordered the federal sentence to be served consecutive to the sentences he receives in state court. In addition to the prison term, Nassar must also register as a sex offender, and, if released from prison, he will be subject to a lifetime term of supervised release.
In July of this year, Nassar pleaded guilty in federal court to receiving child pornography in 2004, possessing child pornography from 2003 to 2016, and destroying and concealing evidence in 2016 when he believed, correctly, that ongoing investigation by law enforcement would reveal his child-pornography activities. As part of a plea agreement, Nassar agreed not to oppose a sentencing enhancement for engaging in a pattern of activity involving the sexual abuse or exploitation of minors. That enhancement, based on his extensive history of personally sexually molesting minors, increased his advisory U.S. Sentencing Guideline range by over 70%. This is the same enhancement that would have applied had he been convicted of additional federal charges related to his hands-on misconduct, such as for traveling interstate with intent to engage in illicit sexual conduct. By the time of his sentencing, Nassar faced an advisory guideline range of 30 years to life in prison, capped by the combined statutory maximum for the three counts of 60 years.
Dozens of victims participated in the federal sentencing proceeding by submitting written victim-impact statements to the Court. The victims wrote about the pain and trauma Nassar caused them, their shattered trust and innocence, the enduring impact this conduct has had on their lives, and their desire to see justice. The victims called on the Court to severely punish Nassar and protect others from further acts of sexual predation.
In announcing the sentence, Judge Neff left no doubt that “maximum potential penalties are in order here.” She found the case “unique.” The images Nassar collected were numerous and “like none other that I’ve seen.” She expressed dismay that Nassar was a doctor and was troubled by the thought that he might have “felt omnipotent” for getting away with sexually assaulting his victims when their mother was in the room. “I am a mom. I cannot imagine [the anguish those mothers must feel].” She chastised Nassar for violating the most basic tenant of medicine – “Do no harm.” Finally, the Judge expressed deep concern for the victims’ sense of self-worth that was destroyed. She concluded that Nassar “is, was, and will be a danger to children.” “It is through consecutive sentencing that I can protect young children.”
Following the sentencing, U.S. Attorney Birge said: “Today was a day of reckoning for Larry Nassar. He more than deserves this punishment for what he did. He consumed child pornography on a massive scale. We found 37,000 images of child pornography on his computers. Insatiable hunger of that nature simply encourages those who produce such images to continue to sexually exploit children. Compounding his danger to the public, Nassar was an insidious hands-on child predator in his own right. He took advantage of family friendships. And he treated his license to practice medicine as a license to sexually molest children. Thanks to the brave victims who came forward, we learned the full scope of his depravity. The breadth and dark depth of his heinous acts are extraordinary.”
U.S. Attorney Birge added: “My heart goes out to the victims-- those in the images and those he personally sexually molested. With today’s sentencing, I hope his victims find a sense of renewed self-worth in knowing their role in this outcome. And I hope they and the public find some measure of solace and reassurance in knowing that Nassar has been held accountable for his actions. Anyone who exploits children will be found out and held accountable regardless of their position or station in life.” U.S. Attorney Birge then expressed his thanks to the victims for making the outcome possible in this case and he thanked the FBI and Michigan State University Police for their efforts in support of the charges.
“Today’s sentencing represents an important achievement as we take another step in this long process of holding Nassar accountable for his shocking predatory acts of child sexual abuse and exploitation,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “I want to thank those involved at the FBI in Detroit and Los Angeles, Michigan State University Police Department, and the U.S. Attorney’s Office for their tireless work to bring Nassar to justice. This punishment of a man who once held a position of trust and enjoyed the trust and respect of many should serve as a warning to those who prey upon and sexually exploit children that there will be severe consequences for crimes of this nature. My thoughts are with all the victims whose lives have been forever impacted.”
Michigan State University Police Chief Jim Dunlap commented that: “The Michigan State University Police Department appreciates the effective collaboration with the FBI and the U.S. Attorney’s Office to achieve a measure of justice for the survivors.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Detroit and Los Angeles Divisions of the Federal Bureau of Investigation (FBI) and the Michigan State University Police Department (MSUPD) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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Las Vegas Man Convicted of Enticement of A MinorRead the Press Release
LAS VEGAS, Nev. – A former family and marriage counselor was convicted by a jury Wednesday for soliciting a minor for sex, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Ian Alexander Pincombe, 49, of Las Vegas, was found guilty of one count of coercion and enticement, one count of possession of child pornography, and one count of receipt of child pornography. United States District Judge Jennifer A. Dorsey presided over the jury trial. Sentencing is set for March 5, 2018. Pincombe faces a minimum of 10 years and a maximum of life in prison, and a $250,000 fine.
According to the indictment and criminal complaint, on April 30, 2014, during an undercover operation, a law enforcement detective located an advertisement on Craigslist.com in which an individual, later identified as Pincombe, was seeking females for sex. The advertisement included a nude photograph. The undercover detective, posing as a 13-year-old girl, began communicating with Pincombe. Over the next two days, Pincombe exchanged sexually explicit emails and text messages with the girl, one of which included a sexually explicit photograph of himself. On May 2, 2014, law enforcement arrested Pincombe at a shopping center parking lot in Henderson where he had agreed to meet the girl for a sexual encounter. Pincombe was later charged with coercion and enticement, and the child pornography charges.
The case was investigated by the FBI, the Henderson Police Department, and the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Frank Coumou and Elham Roohani are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Las Vegas Couple Pleads Guilty to Violent Armed CarjackingsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas couple pleaded guilty to two violent armed carjackings, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Former felon Uriah Zamir Crain, 28, of Las Vegas, pleaded guilty to carjacking, carjacking resulting in serious bodily injury, discharging a firearm during and in relation to a crime of violence, and felon in possession of a firearm. Nicole Elizabeth Nowak, 23, also of Las Vegas, pleaded guilty to carjacking, carjacking resulting in serious bodily injury, and brandishing a firearm during and in relation to a crime of violence. United States District Judge Richard F. Boulware II accepted their guilty pleas. Sentencing is scheduled for March 8, 2018.
According to the criminal complaint and their individual plea agreements, on June 22, 2017, after striking up a conversation with the victim at Hayat Liquor, Nowak asked the victim to drive her home and invited the victim into the house. Later that night at the house, Crain and another man hit the victim in the head with handguns, which resulted in injury, and stole the victim’s money, wallet, and Ford F-150 truck. Then, on June 25, Crain and Nowak committed a second carjacking. Crain shot the victim in the leg, which resulted in serious bodily injury, and Crain and Nowak then stole the victim’s Lincoln Navigator truck and other property belonging to the victim. At the time of his arrest, Crain had a Glock 9mm handgun and a 30-round Glock magazine in his possession.
At the time of sentencing, the statutory maximum penalty for carjacking is 15 years in prison and a $250,000 fine; the maximum penalty for carjacking resulting in serious bodily injury is 25 years in prison and a $250,000 fine; the minimum penalty for discharging a firearm during and in relation to a crime of violence is 10 years in prison with a maximum penalty of up to life in prison; the minimum penalty for brandishing a firearm during and in relation to a crime of violence is seven years in prison with a maximum penalty of up to life in prison; and the maximum penalty for felon in possession of a firearm is 10 years in prison and a $250,000 fine.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra Michael are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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KC Man Sentenced for Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute more than six kilograms of cocaine.
Demond Robins, 36, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 12 years in federal prison without parole.
On March 20, 2017, Robins pleaded guilty to participating in a conspiracy to distribute cocaine from May 22 to Dec. 14, 2015, and to participating in a money-laundering conspiracy from Dec. 13, 2013, to Dec. 16, 2015.
Robins admitted that he provided cocaine to co-defendant Jonathan Villegas-Escobar, 26, a citizen of Mexico residing in Kansas City, Mo., who then distributed the drugs to customers and delivered the drug money back to Robins. During the course of this conspiracy, Villegas-Escobar and Robins distributed approximately 1.9 kilograms of cocaine to a law enforcement confidential informant. Villegas-Escobar has pleaded guilty and is scheduled to be sentenced on Dec. 12, 2017.
Robins needed someone to hold the proceeds of his drug sales and to help legitimize those illegal proceeds. During this time period, Robins did not have a job or an otherwise legitimate source of income. Robins’s girlfriend, Constance Anderson, 36, of Kansas City, Mo., assisted Robins in laundering his illicit drug proceeds. Anderson has pleaded guilty and awaits sentencing.
During the conspiracy, Robins provided Anderson money to keep in either bank accounts, a safe deposit box, or elsewhere. Anderson later gave the money back to Robins when he needed it to purchase additional drugs for sale. Robins started out getting $5,000 at a time from Anderson to purchase 18 ounces of cocaine at a time, which he would then sell, but later he increased the amount he would get nearly $10,000 at a time, so that he could purchase larger amounts of cocaine.
Robins provided money (from the proceeds of drug sales) to Anderson, so that she could then purchase vehicles and real estate for him. One of the vehicles she purchased was a 2011 Jaguar XJ from a dealer in Chicago, Ill., for $33,421. Robins admitted that the purchase of a 2008 Chevrolet Tahoe, a 2008 BMW 650i convertible and a 2015 Ford F150 was made with the proceeds of drug trafficking. Anderson also purchased property on Prospect Avenue in Kansas City, Mo. The purpose of these purchases was to transform money from illegal drug sales into legitimate property.
On Dec. 17, 2015, law enforcement agents executed a federal search warrant on Anderson’s safe deposit box. Agents recovered $142,680 in cash from the box, along with various vehicle and property titles, vehicle keys and jewelry. Some of the money found in the safe deposit box was the pre-recorded buy money law enforcement used in purchasing cocaine from Villegas-Escobar. Agents also recovered approximately $9,995 in cash hidden in the trunk of Anderson’s car.
Robins has forfeited the Jaguar XJ and the cash seized by law enforcement agents, as well as any ownership interest in the real estate and other vehicles, to the federal government.
In addition to the approximately 1.9 kilogram of cocaine Robins and Villegas-Escobar sold to the confidential informant, the approximately $152,675 recovered equates to approximately 3.392 kilograms (based on approximately $45/gram). Additionally, Robins received approximately three kilograms of cocaine from Jose Aguayo-Rodriguez, 25, a citizen of Mexico residing in Kansas City, Mo.; to avoid double-counting, only one additional kilogram of cocaine is attributed to Robins. This results in a total of approximately 6.292 kilograms of cocaine. Aguayo-Rodriguez pleaded guilty and was sentenced on June 1, 2017, to three years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Jury Convicts Busby Man of First Degree MurderRead the Press Release
BILLINGS – Following a four-day trial with testimony from fourteen government witnesses, Dimarzio Swade Sanchez, 20, of Busby, was convicted by a Montana jury of first degree murder. Sanchez will be sentenced on March 29, 2018 and faces mandatory life in prison for the murder. He also faces a $250,000 fine, and up to five years of supervised release. U.S. District Judge Susan Watters presided over the trial.
Evidence presented at trial by Assistant United States Attorneys Lori Suek and John Sullivan showed that on April 17, 2016, the victim received a ride from Dimarzio Sanchez, Angelica Jo Whiteman, Frank James Sanchez, and others. On the way to Crow Agency, an altercation ensued in the vehicle. The vehicle stopped on Castle Rock Road.
The evidence showed that the victim was beaten when Dimarzio and Frank Sanchez retrieved a gas can from the trunk of the vehicle. The victim was stripped naked, covered in gas and set on fire. All the remaining occupants of the vehicle then left the scene. The victim remained in the field for approximately fourteen hours until discovered and given emergency medical treatment. The victim, who suffered third degree burns and severe frostbite of the legs, was hospitalized in Salt Lake City until pronounced dead on June 28, 2016.
U. S. Attorney Kurt Alme stated, “We are pleased with the jury’s verdict. It is the result of hard work by Assistant U. S. Attorneys Lori Suek and John Sullivan, FBI and BIA law enforcement; and the victim and witness staff and other staff of the FBI and BIA and the U. S. Attorney’s Office. Our sympathies go out to the victim’s family and the Crow tribal community for their loss.”
Co-defendant Angelica Jo Whiteman, 19 of Lame Deer, pleaded guilty to aiding and abetting first-degree murder on August 30, 2017. She is scheduled to be sentenced on January 3, 2018 and is facing life imprisonment, a $250,000 fine and five years of supervised release. Co-defendant Frank James Sanchez, 19 of Lame Deer, pleaded guilty to misprision of a felony and accessory after the fact on March 14, 2017. Sanchez is scheduled to be sentenced on January 18, 2018 and is facing maximum punishment of fifteen years in prison, $125,000 fine and three years supervised release.
The case was a cooperative investigative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Judge Sentences New Castle Man to 15 Years in Federal Prison for Sex Trafficking a ChildRead the Press Release
PITTSBURGH – A former resident of Lawrence County, Pennsylvania, has been sentenced in federal court to 180 months imprisonment, followed by seven years supervised release, on a charge of sex trafficking of a child, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Ronald Kyle Hartman, 28, of New Castle, Pennsylvania.
According to information presented to the court, from August 14, 2016, to August 16, 2016, Hartman knowingly traveled to Ohio from Grove City, Pennsylvania, with a 14-year-old girl for the purposes of sex trafficking. Hartman advertised the juvenile’s prostitution services on backpage.com.
Judge Hornak at sentencing stressed the gravity of the offense and illustrated that if one were to look at offenses as a pyramid, this offense would be at the top of the pyramid.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting U.S. Attorney Soo C. Song commended the Federal Bureau of Investigation and the Grove City Police for conducting the investigation leading to the successful prosecution of Hartman.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Sentences Altoona Child Porn Possessor to 40 Months in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, Pa. has been sentenced in federal court to 40 months in prison, placed on supervised release for life, and required to register as a sex offender on his conviction of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Timothy Hufford, 56, of Altoona, Pa.
According to information presented to the court, on August 18, 2015, Hufford knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and Altoona Police Department for the investigation that led to the successful prosecution of Hufford.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Juarez Man Sentenced to Federal Prison for Drug Trafficking and Money LaunderingRead the Press Release
In El Paso today, a federal judge sentenced 40-year-old Jose Juan Quinones Avila of Ciudad Juarez, Chihuahua, Mexico, to 57 months in federal prison for drug trafficking and money laundering announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service, Houston Division.
On September 26, 2017, Quinones pleaded guilty to conspiracy to possess with the intent to distribute a Controlled Substance, over 500 grams of cocaine, and one count of conspiracy to launder monetary instruments. Quinones was a target in an ongoing Bank Secrecy Act investigation. By pleading guilty, Quinones admitted that from March 2006 to April 2017, he was responsible for transporting approximately five kilograms of cocaine in El Paso that was destined for Charlotte, NC, and disbursing approximately $142,156 in illicit proceeds to further ongoing drug trafficking activities in the United States.
The investigation involved agents from the Federal Bureau of Investigation, United States Postal Inspection Service, Homeland Security Investigations, United States Border Patrol, Drug Enforcement Administration, Texas Attorney General’s Office, and the Department of Treasury Financial Crimes Enforcement Network (FinCEN), who safeguards the United States financial system from illicit use, combats money laundering, and promotes national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities. Assistant United States Attorney John Johnston prosecuted this case on behalf of the Government.
Joint Declaration of United States, Colombian, and Mexican Attorneys GeneralRead the Press Release
In the City of Cartagena, Colombia, on December 6th and 7th, 2017, the Attorney General of the United States of America, Jeff Sessions, the Attorney General of Colombia, Néstor Humberto Martínez Neira, and the Acting Prosecutor General of the United Mexican States, Alberto Elías Beltran, held the "Trilateral Summit Against Transnational Organized Crime.” The purpose of the summit was to renew the existing commitment to international judicial cooperation and to deepen joint strategies in the fight against transnational organized crime.
Throughout the summit, the Attorneys General evaluated diverse criminal phenomena linked to organized crime, such as narcotics trafficking, money laundering, public corruption, and human trafficking. This criminal activity has affected security and prosperity in the Americas. Thus, the Attorneys General believe that it is necessary to redouble each country’s efforts and fortify cooperation amongst all three countries in order effectively to combat this scourge.
In this regard, the three countries plan to develop and share strategies to effectively combat and dismantle organized criminal structures, in order to successfully address the multiple challenges posed by transnational organized crime.
In particular, the three countries plan to maximize collective law enforcement capabilities by:
1. Streamlining the exchange of information in real time among the investigative bodies in the three countries by utilizing law enforcement channels of communication whenever possible;
2. Prioritizing and collaborating in the interdiction of shipments of narcotics and its illicit proceeds;
3. Engaging in investigative strategies, where possible, to more effectively dismantle transnational criminal organizations;
4. Increasing the exchange of best practices to more effectively investigate and prosecute transnational criminal organizations; and
5. Developing joint capacity building and training programs for public sector actors responsible for criminal investigations and prosecutions, with a particular focus on organized crime, narcotics trafficking, money laundering, asset forfeiture, and public corruption.
Illinois Man Sentenced for Attempting to Sexually Exploit Two Minors over X-Box LiveRead the Press Release
BOSTON – An Illinois man was sentenced yesterday in federal court in Springfield for attempting to sexually exploit two minors.
Zack Sawyer, 32, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 years in prison and 15 years of supervised release. In June 2017, Sawyer pleaded guilty to two counts of attempted sexual exploitation of minors.
Around May 2010, Sawyer used X-Box Live to contact a 12-year-old boy and a 13-year-old boy in Hampshire County, Mass., and asked them both to send him nude photographs. According to the statement of facts, when the first boy refused, Sawyer threatened to rape and kill him. Sawyer then asked the second boy, and when he, too, refused, Sawyer again threatened rape, adding that he had a drug that would paralyze people.
The government told the court that Sawyer also enticed a third boy in Loudon County, Va., and asked him to pose for a sexually explicit picture over the internet. Sawyer met the boy while playing the online game Minecraft. Sawyer sent a sexually explicit picture of himself to the boy, and Sawyer continued to ask the boy for sexually explicit videos.
Acting United States Attorney William D. Weinreb; United States Attorney for the Eastern District of Virginia, Dana J. Boente; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office and Assistant U.S. Attorney Jay Prabhu of Boente’s Cybercrime Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Houston man sentenced to 60 months in prison for distributing cocaineRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Houston man was sentenced Wednesday to five years in prison for possessing with intent to distribute cocaine after the drug was found in his car.
Isidro Badillo, 22, of Houston, Texas, pleaded guilty before U.S. District Judge Jay C. Zainey to one count of possession with intent to distribute controlled substances. He was also sentenced to five years of supervised release. According to the July 11, 2017 guilty plea, Lake Charles police officers stopped Badillo’s vehicle August 8, 2016 on Interstate 10. Police officers searched the vehicle and found 9.282 kilograms of powder cocaine in the trunk. Badillo knew of the cocaine and said he was driving to an unspecified location outside of New Orleans for delivery and later distribution.
Homeland Security Investigations and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PREBERR RAMOS-PALMA, age 24, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal reentry of a removed alien.
U.S. District Judge Mary Ann Vial Lemmon sentenced RAMOS-PALMA to 8 months imprisonment, followed by one year of supervised release. Upon completion of his sentence, RAMOS-PALMA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, RAMOS-PALMA reentered the United States after being previously deported on April 25, 2014.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans, announced that ROY RIVAS-PALMAS, age 34, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal re-entry of removed alien.
U.S. District Judge Mary Ann Vial Lemmon sentenced RIVAS-PALMAS to 15 months’ imprisonment and one year supervised release. Following completion of his sentence, RIVAS-PALMAS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, on June 15, 2017, RIVAS-PALMAS was found in the United States after having been deported previously on October 31, 2013. RIVAS-PALMAS has a prior felony conviction for possession of a weapon for an unlawful purpose, and has been deported on multiple occasions.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Immigration and Customs Enforcement, in investigating this matter.
Hartford Man Charged with Distributing Heroin and Fentanyl Involved in Two Enfield Overdose DeathsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Enfield Police Chief Carl Sferrazza announced that grand jury in New Haven returned an indictment today charging CHRISTOPHER BARRETO, 28, of Hartford, with one count of distribution of heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, at approximately 9:52 a.m., on August 26, 2016, the Enfield Police Department and emergency medical personnel responded to a residence in Enfield and found an unresponsive 31-year-old male slumped over a coffee table in the upstairs bedroom of the residence. The victim was pronounced deceased. Officers searched the immediate area and seized one empty white wax fold and six full white wax folds that contained suspected heroin. Officers also seized the victim’s iPhone. An analysis of text messages revealed that the victim had ordered heroin from an individual in the evening of August 25, 2016.
The State of Connecticut Chief Medical Examiner determined the victim’s cause of death to be “acute fentanyl and ethanol intoxication.”
At approximately 8:23 p.m., on October 27, 2016, the Enfield Police Department and emergency personnel responded to another residence in Enfield and found an unresponsive 36-year-old man outside the house. The victim was transported to the hospital for medical attention and pronounced deceased. Officers subsequently recovered the victim’s cell phone and 20 white wax folds that contained suspected heroin. Analysis of the victim’s cell phone revealed that the victim had purchased heroin from the same individual two days before his death.
The State of Connecticut Chief Medical Examiner determined the victim’s cause of death to be “acute intoxication due to the combined effects of fentanyl, furanyl fentanyl, and heroin.”
It is alleged that BARRETO supplied heroin/fentanyl to an individual who, in turn, sold the drug to both overdose victims.
BARRETO was arrested on a federal criminal complaint on August 10, 2017. At the time of his arrest, investigators seized approximately 2,000 wax folds of heroin from his residence.
The indictment alleges that BARRETO distributed heroin and fentanyl between April 2016 and August 2017.
The charge carries a maximum term of imprisonment of 20 years.
BARRETO has been released on a $150,000 bond since October 24.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Hartford Heroin Dealer Sentenced to 5 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that YOHANDER HERNANDEZ-CEDENO, 21, of Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by five years of supervised release, for distributing fentanyl-laced heroin.
According to court documents and statements made in court, an investigation conducted by the FBI’s Northern Connecticut Violent Crimes Task Force revealed that Luis Sanchez, also known as “Viejo,” was distributing large quantities in Hartford’s South End. On August 31, 2016, investigators conducted a controlled purchase of approximately 200 grams of heroin from Sanchez outside of a residence on New Britain Avenue that Sanchez shared with HERNANDEZ-CEDENO. Sanchez was arrested at that time. HERNANDEZ-CEDENO, who was inside the residence, was arrested after he was found in possession of approximately 83 grams of heroin, and a search of the residence revealed approximately 74 grams of heroin, 127 grams of cocaine, and items used to process and package heroin.
Subsequent laboratory testing of the seized heroin revealed the presence of fentanyl.
HERNANDEZ-CEDENO has been detained since his arrest. On June 21, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin.
Sanchez pleaded guilty to the same charge and, on September 28, 2017, was sentenced to 33 months of imprisonment.
The FBI Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Gloversville Man Sentenced for Dealing Firearms Without a LicenseRead the Press Release
ALBANY, NEW YORK – Shelley L. Bovee, age 63, of Gloversville, New York, was sentenced today to 3 years of probation for dealing firearms without a license.
The announcement was made by Acting United States Attorney Grant. C. Jaquith and Ashan M. Benedict, Special Agent In Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division.
Senior United States District Judge Frederick J. Scullin, Jr. also sentenced Bovee to pay a $2,000 fine and perform 50 hours of community service.
As part of his August 23, 2017 guilty plea, Bovee admitted that on three occasions in 2016, he sold a total of five firearms, including two .22 caliber rifles, a .30-30 caliber long gun, a .410 caliber shotgun, and an AR-15 variant rifle. Bovee admitted to selling these firearms for a profit without having the required federal firearms license.
This case was investigated by the ATF and prosecuted by Special Assistant United States Attorney Jason W. White.
Former lumber executive pleads guilty for embezzling over $800,000Read the Press Release
BECKLEY, W.Va. – A former Chief Financial Officer for a Beckley lumber company who embezzled over $800,000 pleaded guilty yesterday, announced United States Attorney Carol Casto. James Matthew Miller, 42, entered his guilty plea to two counts of wire fraud.
Miller formerly worked as an executive for a lumber company until September 2013. In his role as Chief Financial Officer, his responsibilities included oversight of log inventories from vendors. From approximately December 31, 2007, to August 30, 2013, Miller admitted that he issued payments to a sham vendor, a close friend of Miller’s, and falsely inflated log inventories to conceal the fraud. He created a fictitious log vendor that has never hauled or delivered logs to the lumber company. Miller also admitted that he created false payment requests and then drafted and signed checks from the lumber company to the fake vendor. The vendor cashed the checks or deposited the checks in his bank account, then provided Miller with the money, minus a small amount Miller permitted the vendor to keep. During the course of the fraud, Miller was responsible for 160 checks totaling $822,396.63 from the company to the sham vendor. Miller admitted that he concealed the fraud and committed wire fraud by submitting company reports based on artificially inflated log inventories, and then emailed the reports to a lumber mill manager in Tennessee and a BB&T in Georgia.
Miller faces up to 20 years in federal prison and a fine of up to $250,000 on each count when he is sentenced on March 15, 2018.
The FBI conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. United States District Judge Irene C. Berger presided over the plea hearing.
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Former UVA Football Player Sentenced to 40 years for $10 Million FraudRead the Press Release
RICHMOND, Va. – Merrill Robertson, Jr., of Chesterfield, was sentenced today to 40 years in prison for his role in a $10 million fraud scheme.
According to court records and evidence presented at trial, Robertson, 37, started Cavalier Union Investments, LLC, with co-conspirator Sherman Carl Vaughn. From 2009-2016, Robertson and Vaughn made numerous misrepresentations to induce individuals to invest with their company, including telling them they could rollover their retirement savings. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and in the National Football League, while Vaughn focused on developing investment opportunities.
As a result of this conspiracy, Robertson and Vaughn fraudulently obtained more than $10 million from over 60 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
Once Robertson began having trouble raising new investor capital, he became involved in a loan fraud scheme. Robertson approached Cavalier investors and others and suggested that he could help them obtain loans and lines of credit. Robertson and his conspirators then submitted falsified loan applications to banks and credit unions, which included false statements about the borrowers’ personal financial status, the purpose of the loan, and whether the loan was secured by collateral.
On August 24, 2017, a federal jury convicted Robertson of fifteen offenses, including: conspiracy to commit mail and wire fraud; conspiracy to commit bank fraud; five counts of mail fraud; two counts of wire fraud; four counts of bank fraud; and two counts of money laundering.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the sentencing by U.S. District Judge John A. Gibney, Jr. The case was formerly prosecuted by Assistant U.S. Attorneys Katherine Lee Martin and Stephen E. Anthony.
The Virginia State Corporation Commission Division of Securities and Retail Franchising assisted with the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-33.
Former Rochester Postal Employee Sentenced for Stealing Smartphones from the MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Bobby Bullard, Jr., 35, of Rochester, NY, who was convicted of theft by government employee, was sentenced to 90 days in jail and one year supervised release by U.S. District Judge David G. Larimer. The defendant was also ordered to pay $648 in restitution for a stolen cell phone.Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant worked as a Mail Handler Associate at the U.S. Mail Processing and Distribution Center in Rochester. While so employed, Bullard was seen rifling through packages that he was supposed to be sorting. Special Agents from the Postal Service’s Office of Inspector General conducted surveillance on three separate occasions and recorded Bullard taking packages containing smart phones off the sorting conveyor belt. Agents watched as the defendant covertly opened the packages, removed the smart phones inside, put them in his pocket, and then discarded the empty packaging materials. Agents recovered several cell phones from Bullard at the time of contact and also recovered discarded phone packages. Bullard is no longer a Postal Service employee.
In sentencing the defendant, Judge Larimer noted that the public relies upon the Postal Service as well as the honesty of its workers.
The sentencing is the culmination of an investigation by Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge is Kenneth Cleevely.
Former PA Police Officer Pleads Guilty to Mail FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland –Marco DeCamillo, age 41, of Reading, Pennsylvania, pleaded guilty today to one count of mail fraud stemming from the sales of misbranded body armor.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Philadelphia and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, De Camillo was a former police officer in West Reading, PA. During his tenure as a police officer, DeCamillo also owned and operated a business called Mad Dragon Tactical (MDT). MDT sold law enforcement tactical gear, including body armor rifle plates, primarily on auction and shopping websites. DeCamillo, through MDT, sold approximately $169,000 worth of body armor that was falsely classified as certified by the National Institute of Justice (NIJ). The NIJ conducts ballistic testing on body armor.
DeCamillo falsely claimed that certain MDT body armor shields would protect against armor piercing rounds, and that certain products were made with the more robust HY80 and A4600 Steel. DeCamillo used his status as a police officer to sell the misbranded body armor rifle plates, understanding that several of his buyers were in law enforcement and/or military or defense and were relying on DeCamillo’s representations regarding the quality and safety of his products.
According to the plea agreement, on December 17, 2015, a defense contractor and NIJ accredited laboratory (“victim lab”) contacted the FBI with a complaint regarding the misuse of one of their ballistic data test sheets by MDT. The FBI verified that DeCamillo, through MDT, had advertised online a set of body armor plates with altered ballistic test sheet from the victim lab that had been completed in 2013. The original 2013 test sheet provided the results of ballistic testing on a ballistic test shield, not steel body armor plates as advertised by MDT. FBI agents viewed several MDT listings online and observed photographs of altered ballistic test sheets uploaded to each listing.
In January and February 2016, the FBI in Maryland set up controlled purchases of the body armor online from MDT through an undercover identity. All three shipments purchased listed DeCamillo’s home address in West Reading, PA as the return address and were delivered from Pennsylvania to Maryland via US Mail. Inside each package was a hard copy of the altered ballistic test sheet (originating from the victim lab). On the HY80 altered ballistic test sheet there was an additional hand-written note in the bottom margin stating, “Note-During testing Armor plate stopped (2) .308 Armor piercing Black Tip AP and (3) 7.62x39 Chinese Steel Core Armor Piercing AP rounds.”
A search warrant was conducted on DeCamillo’s residence and numerous ballistics sheets that had been fraudulently altered with “white out” or other redactions were recovered from the residence.
DeCamillo was interviewed by the FBI and admitted that he knew that his MDT body armor was not NIJ certified.
DeCamillo faces a maximum sentence of 20 years in prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for March 8, 2018 at 9:15 a.m.
Acting United States Attorney Stephen M. Schenning commended the HSI and FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser who is prosecuting the case.
Former North Charleston, South Carolina, Police Officer Michael Slager Sentenced to 20 Years in Prison for Federal Civil Rights OffenseRead the Press Release
Former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager, 36, was sentenced to 20 years in prison today for his commission of a federal civil rights offense during his fatal shooting of Walter Scott, Jr. on April 4, 2015. This sentence resulted from the Court’s determinations that Slager’s actions in shooting Mr. Scott constituted second-degree murder, and his subsequent conduct constituted obstruction of justice as defined by federal sentencing guidelines.
Attorney General Jeff Sessions, Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Beth Drake of the District of South Carolina, Special Agent in Charge Alphonse “Jody” Norris of the FBI’s Columbia Division, Solicitor Scarlett A. Wilson of the Ninth Judicial Circuit, and Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) announced today’s sentence by U.S. District Judge David C. Norton.
According to documents filed in connection with the guilty plea entered on May 2, 2017, Michael Slager, while acting as an NCPD Officer, willfully used deadly force on Walter Scott even though it was objectively unreasonable under the circumstances. Slager had stopped Scott’s vehicle after observing that a brake light was not working. During the stop, Scott fled on foot and Slager pursued him. During the foot chase, Slager deployed his Taser and Scott fell to the ground. Scott managed to get off of the ground and again run away. Scott was unarmed and running away when Scott fired eight shots at him from his department-issued firearm. Five shots hit Scott, with all of the bullets entering from behind. Scott died as a result of the injuries from Slager’s gunshots.
“Law enforcement officers have the noble calling to serve and protect,” Attorney General Sessions said. “Officers who violate anyone’s rights also violate their oaths of honor, and they tarnish the names of the vast majority of officers, who do incredible work. Those who enforce our laws must also abide by them—and this Department of Justice will hold accountable anyone who violates the civil rights of our fellow Americans. On behalf of the Department of Justice, I want to offer my condolences to the Scott family and loved ones.”
“This state, this nation, owe a tremendous thanks to the Scott family for their commitment to see this case through,” said U.S. Attorney Drake. “Their grace, their commitment are a lesson for us all. The South Carolina Law Enforcement Division, with the support of the FBI, conducted a thorough investigation that enabled us to build an excessive force case against former officer Michael Slager. I am so proud of the work put into this case by the dedicated law enforcement, victim advocates and trial teams at the state and federal level.”
“When a law enforcement officer—who swears an oath to protect and serve—violates the civil rights of an individual, it erodes the public’s trust in the entire law enforcement community,” said Special Agent in Charge Norris. “The FBI will always respond to these acts and support our state and local partners, like the South Carolina Law Enforcement Division (SLED), as we all strive to ensure the perpetrator meets justice. The excellent work of SLED, the United States Attorney’s Office, and the Civil Rights Division of the Department of Justice in bringing this matter to a close is to be commended.”
The federal case was prosecuted by Assistant U.S. Attorneys Nathan Williams and Alyssa Richardson of the District of South Carolina, Special Litigation Counsel Jared Fishman, and Trial Attorney Rose Gibson of the Civil Rights Division of the Department of Justice. The case was investigated by the FBI’s Columbia Division and the South Carolina Law Enforcement Division. The state case is being prosecuted by Scarlett A. Wilson and the Office of the Solicitor of the Ninth Judicial Circuit.
Former North Charleston, South Carolina, Police Officer Michael Slager Sentenced to 20 Years in Prison for Federal Civil Rights OffenseRead the Press Release
WASHINGTON – Former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager, 36, was sentenced to 20 years in prison today for his commission of a federal civil rights offense during his fatal shooting of Walter Scott, Jr. on April 4, 2015. This sentence resulted from the Court’s determinations that Slager’s actions in shooting Mr. Scott constituted second-degree murder, and his subsequent conduct constituted obstruction of justice as defined by federal sentencing guidelines.
Attorney General Jeff Sessions, Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Beth Drake of the District of South Carolina, Special Agent in Charge Alphonse “Jody” Norris of the FBI’s Columbia Division, Solicitor Scarlett A. Wilson of the Ninth Judicial Circuit, and Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) announced today’s sentence by U.S. District Judge David C. Norton.
According to documents filed in connection with the guilty plea entered on May 2, 2017, Michael Slager, while acting as an NCPD Officer, willfully used deadly force on Walter Scott even though it was objectively unreasonable under the circumstances. Slager had stopped Scott’s vehicle after observing that a brake light was not working. During the stop, Scott fled on foot and Slager pursued him. During the foot chase, Slager deployed his Taser and Scott fell to the ground. Scott managed to get off of the ground and again run away. Scott was unarmed and running away when Scott fired eight shots at him from his department-issued firearm. Five shots hit Scott, with all of the bullets entering from behind. Scott died as a result of the injuries from Slager’s gunshots.
“Law enforcement officers have the noble calling to serve and protect,” Attorney General Sessions said. “Officers who violate anyone’s rights also violate their oaths of honor, and they tarnish the names of the vast majority of officers, who do incredible work. Those who enforce our laws must also abide by them—and this Department of Justice will hold accountable anyone who violates the civil rights of our fellow Americans. On behalf of the Department of Justice, I want to offer my condolences to the Scott family and loved ones.”
“This state, this nation, owe a tremendous thanks to the Scott family for their commitment to see this case through,” said U.S. Attorney Drake. “Their grace, their commitment are a lesson for us all. The South Carolina Law Enforcement Division, with the support of the FBI, conducted a thorough investigation that enabled us to build an excessive force case against former officer Michael Slager. I am so proud of the work put into this case by the dedicated law enforcement, victim advocates and trial teams at the state and federal level.”“When a law enforcement officer—who swears an oath to protect and serve—violates the civil rights of an individual, it erodes the public’s trust in the entire law enforcement community,” said Special Agent in Charge Norris. “The FBI will always respond to these acts and support our state and local partners, like the South Carolina Law Enforcement Division (SLED), as we all strive to ensure the perpetrator meets justice. The excellent work of SLED, the United States Attorney’s Office, and the Civil Rights Division of the Department of Justice in bringing this matter to a close is to be commended.”
The federal case was prosecuted by Assistant U.S. Attorneys Nathan Williams and Alyssa Richardson of the District of South Carolina, Special Litigation Counsel Jared Fishman, and Trial Attorney Rose Gibson of the Civil Rights Division of the Department of Justice. The case was investigated by the FBI’s Columbia Division and the South Carolina Law Enforcement Division. The state case is being prosecuted by Scarlett A. Wilson and the Office of the Solicitor of the Ninth Judicial Circuit.
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Former Head of Niagara Falls Housing Authority Pleads Guilty to Stealing Government Funds; Son and Daughter-In-Law Also ConvictedRead 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 Stephanie W. Cowart, 58, of Grand Island, NY, pleaded guilty to theft concerning programs receiving federal funds before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine. In addition, Cowart’s son and daughter-in-law, Allen, 31, and Fredia, 28, both of Niagara Falls, NY, pleaded guilty to a misdemeanor charge of theft of government funds which carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Russell T. Ippolito, who is handling the case, stated that between 1997 and July 21, 2016, Stephanie Cowart served as Executive Director of the Niagara Falls Housing Authority (NFHA), an organization that has received federal funding. Between October 2013 and January 2015, Stephanie Cowart, being an agent of a state authority, and being aided by Allen and Fredia Cowart, stole $6,000 from the NFHA.
The Niagara Area Foundation (NAF) was established in 2000 by citizens of Niagara County who were employed in the private and non-profit sectors, to provide support and charity-oriented philanthropic initiatives for residents in Niagara County. Allen and Fredia Cowart, on behalf of People and Possibilities, Inc., sought and obtained a $6,000 grant from NAF, with the assistance of Stephanie Cowart. The money was to be used for “A Better Me,” a project that was to “teach children and youth the importance of proper etiquette, what bullying is and what they can do about it and to teach educational empowerment tools.” The NAF grant proceeds for the “A Better Me” project were deposited directly into the NFHA’s operating account. The NFHA then paid Allen and Fredia Cowart for work purportedly done on the project. However, Allen and Fredia Cowart never actually conducted any presentations related to the “A Better Me” project.
In addition, between October 2013 and June 2014, aided by his mother, Allen Cowart defrauded the NFHA and the New York Office of Children and Family Services (NYOCFS). Allen Cowart falsely claimed that he was performing the work of two teachers under the Advantage After School Program and was paid more than two times the normal hourly pay rate for one teacher position. The Advantage After School Program is funded, in part, through a contribution of federal Temporary Assistance to Needy Families (TANF) funds to New York State.
Allen Cowart was appointed to the temporary position of Teacher, under the Advantage After School Program, October 1, 2013 for the duration of the school year. The salary associated with this appointment was $23 an hour. However, Stephanie Cowart directed that effective October 23, 2013, her son was to be paid an hourly rate of $50. During the time period that Allen Cowart was paid a $50 hourly pay rate, he received $11,583 more than he would have, had he been paid the $23 hourly pay rate.
“As the leader of the Niagara Falls Housing Authority, Stephanie Cowart was obligated to act as a responsible steward of these funds and to use them to better the lives of residents and the community as a whole,” said U.S. Attorney Kennedy. “Instead, the defendant misused her position to ensure that the only improvements realized through her administration of these funds were to the bank balances of her family members.”
“Stephanie Cowart used her power as the Executive Director of the Niagara Falls Housing Authority to enrich herself and members of her family,” said Adam S. Cohen, Special Agent-in-Charge of the FBI’s Buffalo Division. “She failed to honor the public position she held.”
"In a blatant abuse of power, longtime executive director of the Niagara Falls Housing Authority, Stephanie Cowart failed the very people she was hired to assist by diverting public funds to her relatives through exorbitant hourly wages and grants," State Comptroller Thomas P. DiNapoli said. "My investigators brought this case to our partners in law enforcement, and I thank U.S. Attorney James P. Kennedy, Jr., the U.S. Department of Housing and Urban Development's Inspector General, and the FBI for their diligent work in the fight against public corruption."
The pleas are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Office of New York State Comptroller Thomas P. DiNapoli, Division of Investigations.
Sentencing for the defendants is scheduled for April 5, 2018 at 12:00 p.m. before Judge Arcara.
Former Bay Area Resident Indicted in Investment Fraud SchemeRead the Press Release
SAN FRANCISCO – A former Bay Area resident was arrested yesterday in Barnstable, Massachusetts on charges related to a long-running investment fraud scheme. John Bryan Murphy was charged on November 30, 2017, by a federal grand jury in San Francisco with wire fraud and money laundering announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The indictment was unsealed late yesterday following Murphy’s arrest.
According to the indictment, between 2012 and 2017, Murphy, 44, who currently resides in Massachusetts, solicited investments from numerous individuals on the premise that their money would be professionally invested. After receiving these solicitations, several victim investors provided funds to Murphy for the purpose of allowing him to invest those funds on their behalf. In fact, Murphy primarily used these “investments” to support his personal lifestyle, to speculate on the stock market in an account in his name, and/or to repay other victims a portion of their investments.
The indictment alleges that Murphy made payments to various victims that were designed to lull them into a false sense of security, lead them to believe that the promises made to them would be fulfilled, postpone or prevent the victims’ complaints to law enforcement, conceal and prevent detection of the scheme and artifice, and induce victims to “invest” more money with Murphy. The indictment alleges that Murphy obtained over $700,000 in fraudulently solicited funds from victims of the scheme.
The indictment charges Murphy with ten counts of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of money laundering, in violation of 18 U.S.C. § 1957.
After his arrest, Murphy made his initial appearance in United States District Court in Boston, Massachusetts, and was detained pending further proceedings. A detention hearing is scheduled for Friday, December 8, 2017, before Magistrate Judge Donald L. Cabell in Boston.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment on each wire fraud count and 10 years’ imprisonment on each money laundering count, fines of $250,000 on each count in the indictment, and restitution for the losses he is alleged to have caused. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robert Rees and Kyle Waldinger are prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Final Individual Sentenced in Illegal Steroid ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On December 6, 2017, Kari Carter, 27, of Johnson City, Tennessee, was sentenced by the Honorable J. Ronnie Greer, to serve four months in prison for her role in a large illegal steroid conspiracy in east Tennessee. Upon her release from prison, she will be supervised by U.S. Probation for three years.
Carter was the final of 22 defendants charged in this scheme to be sentenced. All pleaded guilty and received the following sentences:
Defendant Name, Age, Residence
Prison Sentence
Supervised Release
Probation
Monetary Judgement
Forfeited Property
Joel Pasternak, 28,
Johnson City, Tennessee
108 months
3 years
$2.8 million
Edward Pasternak, 59, Newport, Tennessee
36 months
3 years
$100,000 (jointly with Lori Pasternak)
$68,866 cash and property valued at $80,000
Thomas Hensley Maxwell, 28,
Johnson City, Tennessee
30 months
3 years
$63,000
Daniel Boston, 33,
Versailles, Kentucky
27 months
3 years
$17,064
Heath Kershaw, 37, Fleetwood, North Carolina
21 months
3 years
$50,000
John Allen, 32,
Seminole, Florida
18 months
3 years
$35,000
Lori Pasternak, 52,
Newport, Tennessee
12 months + 1 day
3 years
$100,000 (jointly with Edward Pasternak)
$68,866 cash and property valued at $80,000
Matfey Lisovoy, 29, Knoxville, Tennessee
15 months
3 years
$40,000
Nathan Urrutia, 34,
Madison Heights, Michigan
15 months
3 years
$30,000
$20,840 cash
Christopher Jones, 37, Pawtucket, Rhode Island
37 months
3 years
$121,745
Glen Jenkins, 31,
Knoxville, Tennessee
4 months
3 years
$4300
William Gallant, 34, Sevierville, Tennessee
90 days
3 years
$33,000
Richard Hensley, 34, Memphis, Tennessee
5 years
$61,000
Jared Pasternak, 23,
Newport, Tennessee
5 years
$10,000
$4680 cash
Joshua Pasternak, 32, Sevierville, Tennessee
5 years
$10,000
Michael VanLeeuewen, 36, Memphis, Tennessee
4 years
Abigail Chester, 32, Farmington, New Mexico
4 years
$36,650
Mitchell Free, 32,
Lula, Georgia
4 years
$17,542
Lauren Dean, 27, Jonesborough, Tennessee
2 days
4 years
Pamela Little, 28,
Kingsport, Tennessee
3 years
$8000
Lindsey Smallman, 25, Johnson City, Tennessee
3 years
$8000
This scheme involved importing raw steroid powders shipped in misbranded packaging from China and other countries, which were converted to liquid, pill, and tablet form and marketed via the internet using the Incredible Hulk image and the name Hulkbody. Customers purchased the steroid products by sending money to Western Union, MoneyGram, and Walmart-to-Walmart Money Transfer using false identities. Over a three-year period, the Pasternak drug organization operated five different clandestine steroids labs in the Johnson City area, derived more than $2.8 million in criminal proceeds, engaged in thousands of sales transactions, and involved a total of 22 co-conspirators. Law enforcement officers found what is described as one of the largest clandestine steroids lab in the United States as part of the investigation.
Agencies involved in this investigation included the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, U.S. Postal Inspection Service, U.S. Department of Homeland Security Investigations and the Washington County Sheriff’s Office. Assistant U.S. Attorneys Helen C.T. Smith and Frank M. Dale, Jr., represented the United States in court proceedings.
Federal Jury Convicts Amarillo Man on Drug ChargeRead the Press Release
AMARILLO — Following a three-day trial, a federal jury has convicted Jose Santillan, 25, of Amarillo, Texas, on one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of pure methamphetamine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The conspiracy conviction carries a statutory penalty of at least ten years and not more than life in federal prison and a $10,000,000 fine. Santillan is scheduled to be sentenced on March 26, 2018, by U.S. District Judge Sidney A. Fitzwater.
According to evidence presented at trial, on February 2, 2016, a Texas Department of Public Safety agent working in an undercover capacity arranged to purchase eight ounces of methamphetamine from Guadalupe Vargas-Mayorga. Through surveillance and recorded telephone calls between the undercover agent and Vargas-Mayorga, law enforcement learned that Vargas-Mayorga obtained the eight ounces of methamphetamine from Jose Santillan and then delivered that methamphetamine to the undercover agent. Laboratory results confirmed that Vargas-Mayorga and Santillan delivered 192 grams of pure methamphetamine to the undercover agent on February 2, 2016. The evidence presented at trial also showed that Santillan had been supplying Vargas-Mayorga with methamphetamine for further distribution since approximately 2014.
The Drug Enforcement Administration, Department of Homeland Security, Texas Department of Public Safety, Amarillo Police Department, Potter County Sheriff’s Office, and Randall County Sheriff’s Office investigated. Assistant U.S. Attorneys Sean Taylor and Joshua Frausto and Deputy Criminal Chief Assistant U.S. Attorney Jeffrey Haag are prosecuting the case.
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Federal Jury Convicts Albuquerque Resident on Drug Trafficking Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict yesterday afternoon finding Gaspar Leal, 47, guilty of participating in a methamphetamine trafficking conspiracy after a three-day trial, announced Acting U.S. Attorney James D. Tierney and Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
In Aug. 2016, a multi-agency investigation led by the ATF concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents, including Leal, with federal firearms and narcotics trafficking offenses. To date, 81 of the 103 defendants charged as the result of this investigation have been convicted, including 80 who have pleaded guilty, and 52 have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This week, in addition to the guilty verdict against Leal, two other Albuquerque residents were sentenced for their convictions on federal firearms and drug trafficking offenses.
Guilty Verdict in Trial against Gaspar Leal
Leal and co-defendants Candace Tapia, 23, Bernadette Aurora Tapia, 49, and Brandon Candelaria, 22, were charged by indictment on July 12, 2016, with conspiracy and distribution of methamphetamine on June 8, 2016, in Bernalillo County. Bernadette Aurora Tapia pled guilty on Dec. 13, 2016, and was sentenced to 21 months in prison followed by three years of supervised release on April 7, 2017. Candace Tapia pled guilty on June 1, 2017, and was sentenced to 18 months in prison followed by three years of supervised release on Oct. 3, 2017. The charges against Candelaria were dismissed on July 18, 2017.
Trial against Leal on the two-count indictment commenced on Dec. 4, 2017, and concluded the afternoon of Dec. 6, 2017, when the jury convicted Leal on Count 1, charging Leal with conspiracy to distribute methamphetamine, and acquitting him on Count 2, charging him with possession of methamphetamine with intent to distribute. The evidence at trial established that in May and June 2016, Leal facilitated the sale of approximately 59.2 grams of methamphetamine to an individual working with the ATF. The jury deliberated approximately three-and-a-half hours before returning its verdict.
At sentencing, Leal faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. Leal has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
United States v. Noe Urias, et al.
Noe Urias and co-defendant Angelica Marie Santiesteban, 40, were charged in a four-count indictment filed on June 30, 2016, with methamphetamine trafficking offenses. The indictment was superseded on July 28, 2016, to include Patrick Zamora, 22, and an additional methamphetamine trafficking charge. The superseding indictment charged all three defendants with conspiracy to distribute methamphetamine from May 2, 2016 through June 20, 2016, and distribution of methamphetamine on June 20, 2016; Urias and Santiesteban with distribution of methamphetamine on May 2, 2016 and May 19, 2016; and Urias with distribution of methamphetamine on May 18, 2016.
On March 9, 2017, Urias pled guilty to Count 3 of the superseding indictment charging him with distribution of methamphetamine and admitted that on May 18, 2016, he sold methamphetamine in exchange for money. Santiesteban pled guilty on Dec. 8, 2016, and was sentenced to 63 months in prison followed by five years of supervised release on June 27, 2017.
Noe Urias, 35, was sentenced on Dec. 6, 2017, to 41 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Zamora has entered a plea of not guilty and is pending trial.
United States v. Jorge Chacon
Jorge Chacon was charged in a seven-count indictment filed on June 30, 2016, with drug trafficking and firearms offenses. Chacon was charged with distributing methamphetamine and using and carrying a firearm in relation to a drug trafficking crime on May 16, 2016; being a felon in possession of a firearm on May 16, 2016, May 19, 2016, and twice on May 26, 2016; and possession a firearm with an obliterated serial number on May 26, 2016. According to the indictment, Chacon was prohibited from possessing firearms or ammunition because he previously been convicted of burglary, aggravated battery and aggravated assault with a deadly weapon.
On Feb. 13, 2017, Chacon pled guilty to Count 2 of the indictment charging him with carrying a firearm during and in relation to a drug trafficking crime, and admitted that on May 16, 2016, he possessed a firearm during the sale of methamphetamine. Chacon, 34, was sentenced on Dec. 6, 2017, to 60 months in prison followed by three years of supervised release for using and carrying a firearm in furtherance of a drug trafficking crime.
Nineteen of the defendants charged as the result of the ATF investigation have entered not guilty pleas or have been found guilty to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. Two defendants are fugitives and the charges against two defendants have been dismissed.
These cases were investigated by the Albuquerque office of ATF. The case against Leal is being prosecuted by Assistant U.S. Attorneys Samuel A. Hurtado and Kimberly A. Brawley. The case against Urias is being prosecuted by Assistant U.S. Attorney Edward Han. The case against Chacon was prosecuted by Assistant U.S. Attorney Norman Cairns.
Federal Grand Jury Files Superseding Indictment in Criminal Case Against Co-Founders of Ayudando GuardiansRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., filed a superseding indictment on Dec. 5, 2017, in the criminal case against Susan Harris, 71, and Sharon Moore, 62, the co-founders of Ayudando Alpha, Inc., d/b/a “Ayudando Guardians, Inc.” (Ayudando Guardians or Ayudando), a now defunct non-profit Albuquerque-based corporation that provided guardianship, conservatorship and financial management services to hundreds of individuals with special needs. The superseding indictment amends the original indictment by adding two new defendants, William S. Harris, 56, and Craig M. Young, 52, the husband and son, respectively, of defendant Susan Harris, and five new counts of money laundering.
The superseding indictment, which was filed under seal, was unsealed earlier today after the Special Agents of the FBI and IRS Criminal Investigation arrested William Harris and Young, both of whom made their initial appearances before U.S. Magistrate Judge Steven C. Yarbrough in federal court in Albuquerque this morning. William Harris and Curtis are scheduled to return to court tomorrow morning for detention hearings, when they also will be arraigned on the superseding indictment. Moore is scheduled to be arraigned on the superseding indictment on Dec. 11, 2017, and Susan Harris is scheduled for arraignment on Dec. 12, 2017.
The Original Indictment
The original indictment, which was filed on July 11, 2017, generally alleged that Susan Harris and Moore perpetuated a decade-long sophisticated scheme to embezzle funds from client trust accounts managed by Ayudando Guardians. According to the indictment, Ayudando Guardians received government benefit payments from the U.S. Department of Veterans Affairs (VA) and U.S. Social Security Administration (SSA) on behalf of many of its clients, and acted as a fiduciary or representative payee for these clients by paying their expenses and maintaining the balances for the benefit of the clients. The indictment alleged that Harris and Moore, the primary owners and operators of Ayudando, embezzled millions of dollars from their special needs clients to support lavish lifestyles for themselves and their families.
The original indictment was comprised of 28-counts, including two conspiracy counts, ten counts of mail fraud, ten counts of aggravated identify theft and six counts of money laundering. It alleged that from Nov. 2006, when Harris and Moore founded Ayudando, and continuing until July 2017, Ayudando, Harris and Moore embezzled millions of dollars from Ayudando client accounts to cover their personal expenses and support lavish lifestyles for themselves and their families. According to the indictment, Harris and Moore perpetuated the embezzlement scheme by:
- Establishing Ayudando as a non-profit corporation in Nov. 2006, to position it as a guardian, conservator, fiduciary and representative payee for individuals needing assistance with their financial affairs;
- Setting up client trust and company bank accounts which only they controlled;
- Transferring funds from client accounts to Ayudando company accounts;
- Using client funds to pay off more than $4 million in charges on a company credit card account used by Harris, Moore and their families for personal purposes;
- Writing checks from Ayudando company accounts to themselves, cash and to cover personal expenses; replenishing depleted client accounts with funds taken from other clients; mailing fraudulent statements and certifications to the VA; and
- Forging and submitting forged bank statements to the VA.
The mail fraud charges in the original indictment described some of the fraudulent documents allegedly mailed by Ayudando, Harris and Moore to the VA to perpetuate and conceal their embezzlement scheme. For example, between Jan. 2016 and Nov. 2016, Moore allegedly mailed fraudulent documents to the VA that falsely represented the balances in ten client accounts. The documents falsely claimed that the ten client accounts had an aggregate balance of $1,906,908, when the actual value of the ten accounts was only $72,281. The original indictment identified the ten client accounts as examples of the fraud allegedly perpetrated by the defendants as part of their embezzlement scheme.
According to the original indictment, Ayudando, Harris and Moore also engaged in aggravated identify theft by using their clients’ names, dates of birth, Social Security Numbers and VA file numbers to commit mail fraud offenses. Harris and Moore also allegedly committed money-laundering offenses by using $392,623 from the Ayudando client reimbursement account to pay off balances on a company credit card used by the defendants and their families for personal purposes.
The original indictment included forfeiture provisions seeking forfeiture to the United States of any proceeds and property involved in, or derived from, the defendants’ unlawful conduct.
The Superseding Indictment
The superseding indictment is the result of an ongoing multi-agency investigation by the FBI, IRS Criminal Investigation, U.S. Marshals Service (USMS), VA Office of Inspector General and SSA Office of Inspector General. It amends the original indictment by adding William Harris and Young as defendants to the two conspiracy counts, ten mail fraud counts, and eight of the ten substantive money laundering counts. The superseding indictment also adds several new overt acts to Count 1, the conspiracy charge, including the following:
- From Oct. 2010 through July 2017, Susan Harris, Moore and Young allegedly paid Young’s personal mortgage through a series of 83 checks totaling $206,970 from Ayudando bank accounts.
- From March 2013 through July 2017, Susan Harris, William Harris, Moore and Young maintained a private box at the University of New Mexico basketball arena, also known as the “Pit,” and allegedly provided $304,863 in Ayudando client funds to the UNM Lobo Club, UNM Athletic Department, UNM Catering and UNM Ticketing Services.
- In March 2014, Susan Harris and Moore allegedly invested $100,000 in Ayudando client funds to a fantasy football software company.
- Between July 2014 and July 2017, Susan Harris, William Harris, Moore and Young, allegedly paid $20,900 in Ayudando client funds to William Harris’s mother in exchange for a recreational vehicle.
- Between Nov. 2014 and Oct. 2015, Susan Harris, William Harris and Moore allegedly used $15,700 of Ayudando client funds to pay a New Mexico state tax liability incurred by William Harris while operating an unrelated business.
- In March 2017, Susan Harris, William Harris and Moore allegedly applied for a $250,000 business loan supposedly to expand Ayudando’s business but actually to “pay back” clients from whom they had taken money without authorization.
The superseding indictment also includes the following two new counts of money laundering against Susan Harris and Moore. Counts 22 and 23 allege that on Feb. 28 and 29, 2016, Susan Harris and Moore engaged in financial transactions intended to conceal that they involved the proceeds of mail fraud when they made payments to the UNM Lobo Club. It also includes three new counts of money laundering against all four defendants. Counts 26 and 27 charge the four defendants with engaging in financial transactions involving the alleged $100,000 investment in the fantasy football software company, and Count 30 charges the four defendants with a money laundering charge relating to the use of Ayudando client funds for “Pit” related expenses.
The forfeiture provisions in the superseding indictment are amended to seek forfeiture of the following parcels of real estate and the following vehicles:
- The Albuquerque residence of Susan Harris and William Harris;
- The Albuquerque residence of Moore;
- The Albuquerque residence of Young;
- Two Albuquerque residences owned by Moore;
- A 2018 5th Wheel Vehicle owned by Susan Harris and William Harris; and
- A 2014 Jeep Wrangler.
Ayudando Guardian, as a corporate entity, was charged as a defendant in the original indictment but to date has not had an attorney enter an appearance on its behalf. On July 19, 2017, the USMS took over Ayudando’s business operations under a federal court order authorizing it to operate the business so that its assets were not improperly spent or removed, and so that the interests of Ayudando clients were protected as the prosecution of the criminal case moved forward. On Aug. 31, 2017, the USMS announced that it was closing the offices of Ayudando Guardians while continuing to be responsible for managing Ayudando’s business affairs under a protective restraining order issued by the federal court. Ayudando Guardians is not named as a defendant in the superseding indictment.
Statutory Penalties for Charges in Superseding Indictment
If the defendants are convicted on the crimes charged in the superseding indictment, they face the following maximum statutory penalties:
- Count 1, conspiracy – 30 years of imprisonment and a $250,000 fine;
- Counts 2-11, mail fraud – 30 years of imprisonment and a $250,000 fine;
- Counts 12-21, aggravated identity theft – a mandatory two-years of imprisonment that must be served consecutive to any other sentence imposed on other counts and a $250,000 fine;
- Counts 22-23, money laundering – 20 years of imprisonment and a $250,000 fine or twice the amount of the property involved in the crime;
- Counts 23-32, money laundering – ten years of imprisonment and a $250,000 fine or twice the amount of the property involved in the crime; and
- Count 33, conspiracy to commit money laundering – ten years of imprisonment and a $250,000 fine or twice the amount of the property involved in the crime.
Susan Harris and Moore have entered not guilty pleas to the original indictment. Arraignment hearings on the superseding indictment for the four defendants have not yet been scheduled.
The Albuquerque offices of the FBI and IRS Criminal Investigation conducted the investigation, which resulted in the charges in the superseding indictment, and are leading the continuing investigation. The Complex Assets Unit and the Albuquerque office of the USMS, the Criminal Investigations Division of the VA Office of Inspector General, and the Dallas Field Division of the SSA Office of Inspector General are assisting in the investigation. Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe are prosecuting the case.
Information about the federal investigation into Ayudando Guardians is available at www.justice.gov/usao-nm/ayudando-guardians.
Charges in indictments are merely allegations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ayudando Superseding IndictmentFederal Grand Jury Charges Grand Prairie Husband and Wife for Medicare FraudRead the Press Release
DALLAS — On December 6, 2017, a husband and wife were indicted on charges that they submitted false and fraudulent claims for home health services and defrauded Medicare of more than $3.4 million, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Edwin Oparaochaekwe, 53, and Chiazom Oparaochaekwe, 47, both of Grand Prairie, Texas, are charged collectively with 10 counts of health care fraud. Today, both defendants were arrested and made their initial appearance before a U.S. Magistrate Judge.
The indictment alleges that from December 2011 through May 2017, Prime World Home Health (Prime World) was an approved home health agency located originally in Irving, Texas and most recently in Mansfield, Texas. Edwin Oparaochaekwe was part-owner of Prime World and worked as a recruiter. Chiazom Oparaochaekwe was a registered nurse and also part-owner of Prime World.
As part of the scheme, the defendants marketed Prime World’s services directly to Medicare beneficiaries, instead of obtaining referrals from physicians who had legitimate physician-patient relationships with patients. To obtain the required physician homebound certifications and plans of care (CMS-485s), the defendants sought and obtained signatures on CMS-485s from physicians who had no prior relationship with the patients, and who, in many cases, never saw or treated them. The defendants sought home health certifications for patients regardless of the patient’s eligibility for home health care.
Prime World employees were directed to submit claims for patients that did not have legitimately signed CMS-485s. For some of the unsigned CMS-485s, Chiazom Oparaochaekwe forged the signatures by photocopying physician signatures and affixing them on the unsigned document. Chiazom Oparaochaekwe then placed a copy of the forged document in the patient’s medical record.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, each of the 10 counts of health care fraud carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. In addition, the indictment includes a forfeiture notification that would require the defendants, upon conviction, to forfeit any property derived from proceeds of the offenses alleged.
The case was investigated by the Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation, and the Texas Medicaid Fraud Control Unit. Assistant U.S. Attorney Kate Rumsey and Special Assistant U.S. Attorney Jason Meyer are handling the prosecution.
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Environmental Training Company Owner to Serve Prison Time for Falsely Certifying Lead Abatement Course CompletionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Tyler C. Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in New England, announced that STEPHEN CRAIG, 66, of Essex, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to six months of imprisonment, followed by three years of supervised release, for falsely certifying the completion of a lead abatement course. Judge Bryant also ordered CRAIG to pay a $20,000 fine.
According to court documents and statements made in court, STEPHEN CRAIG owned Boston Lead Company LLC (BLC), a Connecticut corporation that provided industrial hygiene and safety services. Doing business as Environmental Training and Assessment (ETA), BLC offered a variety of training courses to individuals working with lead paint and asbestos. STEPHEN CRAIG was the training manager and a primary instructor for those courses, and his son, Matthew Craig, provided hands-on instruction and assisted with course administration, including the grading of examinations.
ETA’s lead and asbestos training courses were subject to regulation under the training provider accreditation requirements of the federal Toxic Substances Control Act (TSCA). TSCA allowed states to obtain U.S. Environmental Protection Agency (EPA) authorization to administer and enforce the standards, regulations and other requirements of the TSCA’s lead and asbestos programs, including the approval of training courses. The State of Connecticut received such authorization for all lead and asbestos programs except the lead program that covered renovations, repairs and painting. Individuals in Connecticut who perform lead abatement activities must be certified by the Connecticut Department of Public Health (CT DPH). To obtain certification, an individual must successfully complete an approved 32-hour lead abatement worker initial training course. ETA applied for and received approval from CT DPH to offer a wide range of lead and asbestos training courses, including lead abatement worker initial and refresher courses.
In August 2011, ETA offered a lead abatement training course at its Middletown facility. STEPHEN CRAIG was the training manager and primary course instructor, and Matthew Craig provided the hands-on training and graded the exams. An undercover EPA agent attended the course under the fictitious identity, seeking a lead abatement worker initial course completion certificate. The agent skipped the first two days of the course, and was two hours late on the third day. Thereafter, the agent attended the course for a total of approximately 15 hours, including approximately three hours of hands-on training. STEPHEN CRAIG was aware that agent did not attend the full training course.
At the conclusion of the course, the agent paid STEPHEN CRAIG $525 in cash and was allowed to sit for the lead abatement worker examination, which was proctored and graded by Matthew Craig. The agent intentionally failed the examination. Although Matthew Craig knew that the agent had failed the examination, Matthew Craig completed questions that the agent had left blank and corrected a sufficient number of incorrectly answered questions to bring the examination grade to a passing grade of 80 percent.
On August 12, 2011, ETA issued a false Certificate of Completion to the agent that stated that the agent had successfully completed a 32-hour lead abatement worker initial training course and passed an examination in accordance with CT DPH standards.
On August 3, 2017, STEPHEN CRAIG pleaded guilty to one count of making a false statement to the federal government.
Matthew Craig previously pleaded guilty to one count of making a false statement and, on March 14, 2013, was sentenced to two years of probation and ordered to perform 100 hours of community service.
This matter was investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Eleven people from Canton indicted for firearms violations, including firearms trafficking and illegal sale of a machine gunRead the Press Release
Eleven people from the Canton area were indicted in federal court for firearms violations, including firearms trafficking, illegal sale of a machine gun and drug charges, law enforcement officials said.
Indicted are: Rasheed Babb, 25; Shawntez Block, 25; Andre Bowers, 41; Ikasha Clark, 38; Darnell Curtis, 39; Kamari Kidd, 21; Tae’Vontae Miles, 22; Jesse Gulley, 44; Thomas Lorenz, 60; Arthur Keeney, 28, and Sean Foster, 33.
All the defendants live in Canton except Lorenz, who is from Dover, and Block, who is from Massillon.
Bowers was charged with illegally dealing firearms while Kidd and Miles were charged with assisting his firearms trafficking.
Bowers engaged in the unlicensed dealing of firearms between December 2016 and February 2017. Bowers’ previous convictions include aggravated assault, cocaine trafficking, domestic violence, escape and other crimes.
At various times he sold or possessed a Harrington & Richardson .32-caliber revolver, a Mossberg 12-gauge shotgun, a Glock .40-caliber pistol, another Mossberg 12-gauge shotgun, a Marlin .22-caliber rifle, a Rossi 20-gauge shotgun and a Kel-Tec 5.56 mm pistol, according to the indictment.
Bowers also distributed heroin, according to the indictment.
Gulley, Clark and Lorenz were indicted for a transaction in July 2017 in which Lorenz transferred to Gulley and Clark a Heckler and Koch, 308-caliber machine gun, according to the indictment.
Gulley on July 25, 2017, possessed the aforementioned machine gun, ammunition and six other firearms, despite prior convictions for felonious assault and possession of cocaine. On the same day, Gulley and Clark possessed a sawed-off shotgun, according to the indictment.
“Cases like these are exercises in homicide prevention,” U.S. Attorney Justin E. Herdman said. “These defendants have no business carrying firearms, given their previous criminal conduct. This operation has made Canton safer.”
“The value of these types of cases can be measured in human lives,” said Canton Police Chief Bruce Lawver. “These cases involve illegally possessed firearms in the hands of criminal. They demonstrate the cooperation that exists between the Canton Police Department and our federal law enforcement partners.”
“These arrests are just the next step in our work with our partners at the Canton Police Department and the FBI,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “We will continue to work together to make Canton and the surrounding communities safer by removing individuals who use violence to further their criminal activities from our streets.”
“These dangerous individuals will now be held accountable for their numerous criminal violations involving guns,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI commends the collaborative work done by all agencies involved, especially the ATF and Canton Police Department.”
Keeney possessed a Hi-Point 9 mm pistol and nine rounds of 9 mm Winchester brand ammunition on Dec. 7, 2016, despite prior convictions for felonious assault and improper handling of a firearm in a mother vehicle, according to the indictment.
Foster possessed a Smith and Wesson .40-caliber pistol , a Smith and Wesson 9 mm pistol, a Fabrique Nationale .40-caliber pistol and 35 rounds of ammunition on Oct. 1, 2017, despite prior convictions for trafficking cocaine and possession of cocaine, according to the indictment.
Block possessed a Ruger 9mm pistol on Jan. 16, 2016, despite prior convictions for aggravated drug trafficking and endangering children, according to the indictment.
Curtis possessed a Remingon 12-gauge shotgun and a Harrington and Richardson 12-gauge shotgun on May 11, 2017, despite a prior conviction for aggravated robbery with a firearms specification, according to the indictment.
Babb possessed a Harrington and Richardson .32-caliber revolver on Oct. 19, 2017, despite a prior conviction for possession of a controlled substance with intent to deliver, according to the indictment.
Approximately 30 firearms were seized as part of the operation, along with ballistic vests, ammunition, heroin, fentanyl and cocaine.
These cases were investigated by the Canton Police Department, the ATF and the FBI, with assistance from the Stark County Prosecutor’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Aaron P. Howell and Henry F. DeBaggis.
If convicted, the sentence in this case will be determined by the Court after consideration of the federal sentencing guidelines, which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
District Man Found Guilty of Felony Murder in 2014 Slaying at Southeast Washington Barber ShopRead the Press Release
WASHINGTON – Antwon D. Green, 29, of Washington, D.C., was found guilty by a jury today of felony murder, first-degree murder while armed, and a related weapons charge in the killing of a man in 2014 at a Southeast Washington barber shop, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Green was found guilty following a trial in the Superior Court of the District of Columbia. He is to be sentenced on Feb. 16, 2018 by the Honorable Judith Bartnoff. He remains in custody pending sentencing.
According to the government’s evidence, on Friday, Oct. 10, 2014, at about 11 a.m., Green walked by the front of the Kutt n’ Up barber shop in the 1400 block of Good Hope Road SE, and pointed at Breond Keys, a customer who was getting his hair cut inside.
Roughly 16 minutes later, Green, wearing different clothes and dressed in a dark-colored hooded jacket, ran into the barber shop, holding what appeared to be a pistol in his right hand. Green immediately raised the pistol with both hands, pointed it at Mr. Keys, and began firing, hitting Mr. Keys multiple times. Once Mr. Keys fell to the floor, Green dug into his front pants pocket, pulled an item out of it, and fled. Mr. Keys, 38, was taken to a hospital, but pronounced dead a short time after the shooting.
Following an investigation by MPD, Green was charged in the murder in July 2015.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and the FBI. They also expressed appreciation for the assistance provided by the District of Columbia Office of the Medical Examiner, the Glendale Verdugo Regional Crime Laboratory, and the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Victim/Witness Advocate James Brennan; Paralegal Specialists Kelly Blakeney and Meridith McGarrity; Criminal Investigators John Marsh, William Hamann, and Zachary McMenamin, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorneys Richard DiZinno, Glenn Kirschner and Allessandra Stewart, who investigated and prosecuted the case.
Deputy Attorney General Rod Rosenstein Selects Corey Ellis as Director of Asset Forfeiture AccountabilityRead the Press Release
Deputy Attorney General Rod Rosenstein today announced that Corey Ellis, First Assistant U.S. Attorney of the Western District of North Carolina, will serve as the Director of Asset Forfeiture Accountability within the Office of the Deputy Attorney General. Pursuant to Attorney General Jeff Sessions’s Oct. 16 memorandum, Ellis will coordinate the Department’s Asset Forfeiture Program, including reviewing complaints and ensuring compliance with the law.
“Many criminals transfer ill-gotten gains to relatives or friends, and others use couriers to transport cash. Civil asset forfeiture helps prevent crime by enabling the government to recover property when prosecuting the person caught holding it may not be appropriate or feasible,” Deputy Attorney General Rosenstein said. “Given his personal experience handling complex asset forfeiture litigation and his superb reputation as a manager, Corey Ellis will strengthen the Justice Department’s Asset Forfeiture Program and help us prevent crime while protecting the property rights of law-abiding people.”
Starting in January, Ellis will begin work on several Department priority initiatives, including the modernization of the National Asset Forfeiture Strategic Plan, updating the Asset Forfeiture Program’s policy guidance, and improving controls over the use of program funds.
Since November 2015, Ellis has served as the First Assistant U.S. Attorney for the Western District of North Carolina. In that position, he has managed an approximately 100-employee office and helped to coordinate complex white-collar crime prosecutions. He has also directed the office’s training in response to the Attorney General’s July 2017 Asset Forfeiture policy order.
Ellis previously served as an Assistant U.S. Attorney in the Asheville Division of the U.S. Attorney’s Office for the Western District of North Carolina, where he prosecuted cases involving federal lands, drug smuggling, firearm offenses, and violent crime. Mr. Ellis has also coordinated the District’s efforts to fight white-collar fraud, computer hacking, and intellectual property theft. Before becoming a federal prosecutor, he served as an Assistant District Attorney for the 29th Prosecutorial District in North Carolina for eight years.
Ellis received his J.D. from the University of Memphis in Tennessee with awards in trial advocacy and tax law, and his B.A. from Brown University.