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Friday 17 November 2017
Texarkansas Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Brian Tremayne Porter, age 29, of Texarkana, Texas, was sentenced November 15, 2017 to 100 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, the Federal Bureau of Investigation, and the FBI Safe Streets Task Force learned that methamphetamine was being distributed in Southwest Arkansas by Brian Porter. In the early months of 2017, Porter conspired with another to distribute two (2) ounces of methamphetamine to a confidential source in exchange for $1400 in Miller County, Arkansas. The substance purchased was sent to the Arkansas State Crime Lab for testing. The lab determined that it was a mixture of a substance that contained methamphetamine and weighed approximately 53.4 grams
Porter was indicted by a federal grand jury in June 2017 and pled guilty to the charge in June 2017.
This case was investigated by the Federal Bureau of Investigation, and the FBI Safe Streets Task Force. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Stanislaus County Man Convicted of Child ExploitationRead the Press Release
FRESNO, Calif. — A federal jury in Fresno today found Adam Alan Henry, 39, of Turlock, guilty of conspiring to sexually exploit a minor and receipt or distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents and evidence produced at trial, from May 2012 until September 19, 2013, Henry conspired with another person to create video and still images of a minor engaged in sexually explicit conduct. From 2007 through September 2013, Henry used a file-sharing program to receive child pornography.
This case is the product of an investigation by the Ceres Police Department with assistance from Federal Bureau of Investigation. Assistant U.S. Attorneys David L. Gappa and Ross Pearson are prosecuting the case.
The court has scheduled a sentencing hearing for March 5, 2018, at which time Henry faces maximum possible punishments of 15-30 years in prison for the conspiracy to sexually exploit a minor charge and 5-20 years in prison for the receipt of child pornography charge. For both charges there is a possible lifetime term of supervised release, a mandatory $100 penalty assessment, and a possible $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
St Louis Resident Sentenced to 10 Years in Federal Prison for Heroin and Cocaine Conspiracy in Southern IllinoisRead the Press Release
A St. Louis resident was sentenced to federal prison on Friday, November 17, 2017, for his role in the conspiracy to distribute heroin and cocaine in Southern Illinois and elsewhere.
United States Attorney Donald S. Boyce announced the sentence for the Southern District of Illinois. Defendant Marlon Martez Lee, 43, was sentenced to 120 months in prison, 5 years of supervised release, a $500 fine, and a $200 special assessment.
An indictment filed on October 18, 2016, charged Lee and co-defendant Charles Christopher Thirdkill in a two-count indictment with conspiracy to distribute, and possess with intent to distribute, controlled substances and a second count of unlawful distribution of heroin. Co-defendant Thirdkill has plead guilty and is awaiting sentencing.
This investigation was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative brings federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The investigation was conducted by agents from the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Spearfish Woman Sentenced to 40 Years for Role in Child’s DeathRead the Press Release
United States Attorney Randolph J. Seiler announced that a Spearfish, South Dakota, woman convicted of Second Degree Murder was sentenced on November 17, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lori Ann Wisecarver, age 44, was sentenced to 40 years of imprisonment, followed by 5 years of supervised release, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and restitution in an amount to be determined.
Wiscarver was charged on September 15, 2015, and pleaded guilty on February 3, 2017. The conviction stems from Wisecarver’s prolonged and extreme physical abuse of a young boy from October 2014 to February 2015 at Pine Ridge. The abuse ultimately caused the death of the child.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Assistant U.S. Attorneys Sarah B. Collins and Eric Kelderman prosecuted the case.
Six Cases Prosecuted in Metro Louisville for Skimming Credit Card Information of Gas Station CustomersRead the Press Release
Estimated up to 50 active skimmers at gas-pumps in greater Louisville during investigation
Financial loss exceeds $3.5 million
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman, joined by FBI Special Agent in Charge Amy S. Hess, United States Secret Service Special Agent in Charge Richard Ferretti, and Louisville Metro Police Chief Steve Conrad, today announced the results of an on-going investigation involving nearly 30 law enforcement agencies, across three states, (Kentucky, Ohio, and Indiana) that has resulted in the arrest of eight individuals charged with aggravated identity theft, wire fraud and other charges, for their roles in skimming credit card information of gas station customers at gas-pumps.
“Today, the United States Attorney’s Office is joined by the FBI, Secret Service, Louisville Metro Police and nearly 30 law enforcement agencies to send a unified message to those who plant credit card skimming devices in the Western District of Kentucky: you will be caught and you will be prosecuted,” stated United States Attorney Russell Coleman.
“As advances in technology influence almost every aspect of our daily lives, it is important to remember these same advances allow the unscrupulous to prey on unsuspecting members of the public. The FBI, and its federal, state, and local counterparts will continue our efforts to inform the public regarding the danger of credit card skimming, and we will pursue those who commit these crimes and bring them to justice,” stated FBI Special Agent in Charge Amy S. Hess.
“This indictment is another example of how the Secret Service Electronic Crimes Task Force continues to successfully combat financial crimes. Our success is this case is the result of the extraordinary work of our investigators and our close cooperation with our law enforcement partners, stated United States Secret Service Special Agent in Charge Richard Ferretti”
In the Western District of Kentucky, eight individuals have been indicted by federal grand jury, either individually or as co-defendants, with charges including possession of device making equipment, conspiracy to commit mail and bank fraud, money laundering, wire and bank fraud. Of the eight defendants, two were sentenced in United States District Court, four pleaded guilty and await sentencing, and the remaining two defendants have trial dates in January 2018. All defendants have been charged with aggravated identity theft, which carries a mandatory minimum sentence of 24 months consecutive with the sentence for any other fraud offenses. There is no parole in the federal system.
The number of victims exceeds 7,000 unique card numbers belonging to both individuals and businesses. The United States Attorney’s Office has provided banks and financial institutions with information where card numbers were compromised. The combined intended loss for the six cases exceeds $3.5 million.
According to the indictments and plea agreements, skimmers were in use at convenience store gas stations located at Highway 42 in Prospect, Taylorsville Road, Bardstown Road, Saint Andrews Church Road, Galeen Drive, Shelbyville Road, and LaGrange Road.
Specifically, in United States v. Misael Jose Fernandez Campos, the defendant was charged by indictment on May 3, 2016 and entered a guilty plea to all 16 counts on October 2, 2017 before Chief Judge Joseph H. McKinley, Jr., in United States District Court. According to the plea agreement, between February 2015, to March 2016, Campos manufactured skimming devices designed to illegally capture credit and debit card numbers being used at Louisville gas stations. The skimming devices were installed by Campos inside the gas pumps and later collected. The stolen financial information was then re-encoded, transferred, or cloned on to the magnetic strip of other plastic cards.
On August 17, 2017, five defendants were charged in four separate cases by grand jury indictment. Specifically, Pabel Anguela-Vazquez, Andres Tomas Alvarez Hernandez, Leonardo Rodriguez Prado, Yusbel Folgosso Parrado, and Miguel Yansel Castillo Fornaris.
Defendants Anguela-Vazquez and Hernandez were charged with wire fraud, aggravated identity theft, and conspiracy to commit mail fraud and bank fraud. Both Hernandez and Anguela-Vazquez pleaded guilty in United States District Court, before District Judge David J. Hale in August 2017. Sentencing is scheduled for December 1, 2017 in Louisville.
Defendant Prado was charged with wire fraud, aggravated identity theft, possession of unauthorized and counterfeit access devices, and money laundering. Defendant Garcia was charged with bank fraud, aggravated identity theft, and money laundering. Both are scheduled for trial in United States District Court, before Senior Judge Charles R. Simpson, in January 2018.
Defendant Parrado was charged with wire fraud and aggravated identity theft. He pleaded guilty and was sentenced on November 8, 2017, to 28 months in prison by Chief Judge Joseph H. McKinley, Jr.
Defendant Fornaris was charged with wire fraud and aggravated identity theft. He pleaded guilty to the charges and was sentenced on November 6, 2017 in United States District Court, to 45 months in prison, by Chief Judge H. McKinley, Jr.
On September 1, 2017, defendant Noslen Hernandez Guerra was charged in a criminal complaint, then by grand jury indictment, with fraud with identification documents, while on federal supervised release. Guerra pleaded guilty on October 23, 2017, and is scheduled for sentencing in United States District Court by Chief Judge H. McKinley, Jr., on February 5, 2018.
“This form of identity theft is causing untold losses to both financial institutions and individuals who are merely filling their tanks at the gasoline pump. As we begin the busiest travel season of the year, consumers need to pay special attention to where and how they pay for gasoline as criminals are using new and more sophisticated technologies,” concluded United States Attorney Coleman.
Consumers can take steps to reduce the risk of having their payment card information stolen at the gas pump. These steps include paying for gasoline inside the convenience store and when possible pay with cash; checking for signs that may suggest that the machine has been tampered with such as missing, broken, or loose security tape; and using gas pumps in view of surveillance cameras or visible to store clerks.
These cases are being prosecuted by Assistant United States Attorneys Joshua Judd and Daniel Kinnicutt and are being investigated by the Federal Bureau of Investigation, United States Secret Service, and Louisville Metro Police with assistance from Bardstown (KY) Police Department, Bellbrook Ohio Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Carrolton Police Department, Centerville Ohio Police, Harrison County Indiana Sheriff’s Department, Hamilton County Ohio Police Department, Jasper Indiana Police Department, Jefferson County Sheriff’s Department, Kentucky Department of Corrections, Kentucky Department of Fish and Wildlife, Kentucky State Police, Lexington Police Department, Madison Indiana Police Department, Ohio State Highway Patrol, Oldham County Police, Prospect (KY) Police Department, Rising Sun Indiana Police Department, St. Matthews Police Department, Simpsonville Police Department, Versailles Police Department, and West Chester Ohio Police Department. the Kentucky Department of Agriculture, Ohio Department of Agriculture, Colorado State Patrol, Clark County Sherriff's Office, Allen County Sherriff's Office, and Scottsville Police Department
Shelburne Man Sentenced to 18 Months for Mail Fraud, Money Laundering, and Making a False StatementRead the Press Release
The United States Attorney for the District of Vermont announced that Matthew Senator Melvin, 36, of Shelburne, was sentenced Thursday in United States District Court in Rutland to 18 months of imprisonment following his guilty pleas to charges of Mail Fraud, Money Laundering, and Making a False Statement. United States District Judge Geoffrey Crawford also ordered that Melvin pay more than $11,000 in restitution, as well as a $5,500 fine. The government is seeking an additional money forfeiture. Melvin will serve three years of supervised release following the completion of his prison sentence. Melvin has been in the custody of the United States Marshals Service since his March 2017 arrest.
Melvin pleaded guilty to an Indictment charging him with Mail Fraud and Money Laundering, among other crimes. Melvin was originally released on conditions in connection with this prosecution. However, court records indicate that in February 2017 he made a series of false statements to the United States Probation office, resulting in an additional Indictment, to which Melvin also pleaded guilty, charging him with making a false statement. Court records indicate that Melvin engaged in a scheme to defraud employers by seeking and obtaining employment by the use of false or stolen identities, and that he laundered part of the proceeds of this crime by withdrawing them from one bank and depositing them into an account at another financial institution.
This was Melvin's first federal felony conviction. He had previously been convicted of various offenses by the State of Vermont.
This case was investigated by the Internal Revenue Service - Criminal Investigation Division, as well as the United States Secret Service.
Melvin is represented by Paul Volk. The prosecutor is Assistant U.S. Attorney Michael Drescher.
San Angelo Man Sentenced to 121 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
LUBBOCK, Texas — A 45-year-old San Angelo, Texas, man, Michael Doerr, who pleaded guilty in August 2017 to one count of receipt of a visual depiction of a minor engaging in sexually explicit conduct, was sentenced today by U.S. District Judge Sam R. Cummings to 121 months in federal prison, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Judge Cummings remanded Doerr into immediate custody to begin serving his sentence.
According to plea documents filed in the case, on August 25, 2016, Doerr used computer hard disk drives to save images and videos depicting minors engaged in sexually explicit conduct. Doerr received the material over the Internet and saved the material on the hard disk drives at his residence.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Department of Homeland Security, Homeland Security Investigations, the Texas Department of Public Safety, and the San Angelo Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
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Sacramento Men Plead Guilty to Bank Fraud and Identity Theft Scheme Using Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Billee Vang, 26, and Dang Vue, 27, both of Sacramento, pleaded guilty today to a fraud scheme that involved manufacturing postal service locks and keys in order to steal U.S. Mail, steal identities and defraud financial institutions, U.S. Attorney Phillip A. Talbert announced.
Vang and Vue each pleaded guilty to bank fraud, aggravated identity theft, theft of stolen U.S. mail, stealing and reproducing postal service locks and keys, and unlawful possession of at least five identification documents for fraudulent purposes.
According to court documents, between January 13, 2017, and May 12, 2017, Vang and Vue stole mail throughout Sacramento and Placer Counties, including neighborhoods in Roseville, Elk Grove, and Sacramento. As part of their criminal scheme, Vang and Vue stole Postal Service locks and used them to reverse engineer counterfeit keys to facilitate theft of mail from neighborhood mailbox units.
Vang and Vue used the stolen mail, including checks and identification documents, to take over victim bank and credit accounts. Additionally, Vang and Vue used and attempted to use access devices, credit card convenience checks, and personal checks that had been stolen from postal customers to conduct unauthorized transactions at the expense of federally insured financial institutions.
This case is the product of investigation by the U.S. Postal Inspection Service with assistance from the Elk Grove Police Department, the Sacramento County Sheriff’s Office, and the Roseville Police Department. Assistant U.S. Attorney Michelle Rodriguez is prosecuting this case.
Vang and Vue are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on February 16, 2018. Each defendant faces up to 30 years in prison for the bank fraud convictions, a mandatory consecutive two years in prison for aggravated identity theft. They also face up to five years in prison for theft of U.S. Mail, 10 years in prison for stealing and reproducing postal service locks and keys, and 15 years in prison for possessing over five identity documents for purposes of fraud.
Queens, New York Man Sentenced to Ten Months in Prison for Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on November 16, 2017, John Williams, 33, of Queens, New York was sentenced to ten months in federal prison after his guilty plea to a charge that he conspired to distribute heroin and cocaine base in the Burlington area. Chief U.S. District Court Judge Christina Reiss also ordered that Williams serve three years of supervised release after his prison term.
Judge Reiss previously sentenced Williams’ codefendant in the conspiracy, Laura Berard, to eight months imprisonment. According to court records, from late 2015 to mid-2016, codefendant Laura Berard periodically permitted Williams to use her North Champlain Street apartment in Burlington as a base from which to deal drugs, which Williams brought up from New York City.
In determining that a ten-month sentence was appropriate, Judge Reiss considered, among other factors, the relatively low drug quantity involved in this case as well as Williams’ efforts to turn his life around by attending college and being a more responsible parent. Judge Reiss also granted the defendant’s request for a variance from the crack cocaine Sentencing Guidelines table and to use the powder cocaine table instead as the basis for calculating the advisory term of imprisonment. According to court records, the total drug quantity involved was approximately twenty grams of crack cocaine and just over two grams of heroin. Williams faced a maximum sentence of twenty years.
Acting United States Attorney Cowles commended the Burlington Police Department, HSI, and DEA for their work in this investigation. She noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
Assistant U.S. Attorney Joseph Perella and former Assistant U.S. Attorney Timothy C. Doherty, Jr handled this prosecution. Jean-Claude Charbonneau, Esq., of Rutland, represents John Williams. Assistant Federal Public Defender Steven Barth represented Berard.
Port Angeles Man Sentenced to Prison for Sexual Abuse of Young Child on National Park LandRead the Press Release
A Port Angeles, Washington man was sentenced today in U.S. District Court in Tacoma to 97 months in prison and ten years of supervised release for aggravated sexual assault of a minor, announced U.S. Attorney Annette L. Hayes. CHARLES JASON BUTCHER, 46, admitted the assault in a recorded phone call with his victim in 2016. The assault on the young child occurred in 2001. At sentencing U.S. District Judge Ronald B. Leighton said, “The nature of this offense is extremely odious.”
“For fifteen years the defendant denied sexually abusing the two young victims in this case, compounding a horrific betrayal,” said U.S. Attorney Annette L. Hayes. “I commend the courage of the victims and the commitment of the Park Service investigator who took what was considered a “cold case” and developed the evidence necessary to convict.”
According to records filed in the case, two young children, ages 7 and 4, were visiting a resort operated by BUTCHER and his family near Lake Crescent on Olympic National Park land. Following the visit, the children’s mother suspected sexually abusive contact and medical exams showed signs of sexual molestation. BUTCHER was interviewed and denied any sexual abuse. In late 2015, the victim and the victim’s mother reached out to law enforcement, and a National Park Service Special Agent was assigned the case as part of a cold case review. The victims agreed to additional forensic interviews. Ultimately, one of the victims agreed to place a recorded phone call to BUTCHER in which he admitted the abuse. BUTCHER later admitted the molestation of one of the victims to law enforcement.
The case was investigated by the National Park Service and the FBI. The case is being prosecuted federally because the assault occurred on National Park land. The case is being prosecuted by Assistant United States Attorney Grady Leupold.
Ponchatoula Man Sentenced for Theft of Firearms from Premises Owned and Operated by a Federally-Licensed Firearms DealerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ANTWON SEYMORE, age 19, of Ponchatoula, was sentenced yesterday after previously pleading guilty to theft of firearms from a premises owned by a federally-licensed firearms dealer and aiding-and-abetting.
U.S. District Judge Lance M. Africk sentenced SEYMORE to 37 months imprisonment, followed by 3 years of supervised release, and $8,780 in restitution.
According to the court documents, on or about April 8, 2016, SEYMORE, and a juvenile broke into The Tickfaw Auction Company, a business owned and operated by a federally-licensed firearms dealer, and stole 25 handguns. All of those guns were manufactured outside of Louisiana and necessarily had been shipped and transported in interstate and foreign commerce.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Orlando Man Convicted for Tax FraudRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found McKenzie Calixte guilty of one count of conspiracy to commit theft of government property and five counts of theft of government property. He faces a maximum of 5 years in prison on the conspiracy count and up to 10 years’ imprisonment for each of the theft counts. His sentencing hearing is scheduled for January 29, 2018.
Calixte was indicted on February 15, 2017.
According to evidence introduced during trial, Calixte conspired with Tanya Fox and others in a scheme involving the filing of fraudulent tax returns using identities that had been stolen from a variety of sources. Fox directed Calixte and others to open business bank accounts in the name of a fraudulent tax preparation business and to have the tax refunds deposited into those accounts. Fox then worked with Calixte and the conspirators to withdraw the funds and spend the money. As part of the scheme, Calixte incorporated a false tax preparation business, Strong Hand Accounting, Tax & Payroll Services, Inc., and opened a business bank account in that name. He had 127 fraudulent tax refunds deposited into this account totaling more than $160,000. According to trial testimony, Calixte then withdrew funds from the account to pay a co-conspirator, to pay rent for a home that he leased with Fox, and to purchase a Range Rover.
Fox attempted to receive approximately $5.8 million in fraudulent tax refunds and was successful in receiving over $4 million from the United States Treasury throughout the conspiracy, which lasted over two years. A federal jury previously found her guilty and she was sentenced to 20 years in federal prison.
Calixte is the eleventh person to be found guilty as a result of this scheme. Shanterica Smith, Gerald Williams, and Delray Duncan provided approximately 2,400 names from the Orange County Health Department to Fox, so that she and her co-conspirators could file the fraudulent tax returns. Smith was sentenced to five years in federal prison, Williams was sentenced to four years and six months’ imprisonment, and Duncan was sentenced to a term of three years and six months in federal prison.
In addition, April Cuyler was sentenced to 30 months’ imprisonment and Chianti Smith was sentenced to a year and a day in prison. Marceila Jackson and Reshonda Roberts each received two years in federal prison. Shanta Thaxton was sentenced to two years’ probation, and Mariah Herron is currently awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, the United States Postal Inspection Service, and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Norwalk Landscaper Pleads Guilty to Federal Tax OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that CANDIDO VALADARES, also known as Candide Valadares, 57, of Norwalk, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to one count of filing a false tax return.
According to court documents and statements made in court, VALADARES operates two Norwalk-based landscaping businesses, Candide’s Landscaping and Water Gardens, LLC and Candide Contractor & Natural Pools, LLC. He also provides snow-removal services to his clients during winter months. An investigation revealed that VALADARES deposited receipts from his businesses into both his business and personal bank accounts. He also paid various employee wages out of both his business and personal accounts.
VALADARES used a tax return preparer to prepare his yearly tax returns. The tax preparer took figures from certain profit-and-loss statements obtained from VALADARES or his bookkeeper to prepare the relevant federal tax returns. VALADARES knew that the profit-and-loss statements did not reflect all revenues deposited in VALADARES’ business and personal bank accounts. As a result, VALADARES’ federal tax returns for 2009, 2010 and 2011 tax years underreported hundreds of thousands of dollars in total income.
VALADARES is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on February 8, 2018, at which time he faces a maximum term of imprisonment of three years and a fine of up to $100,000. VALADARES also has agreed to repay the U.S. Treasury $175,898 in restitution for the taxes he failed to pay, and additional penalties and interest that have accrued on his unpaid taxes.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Murder for hire defendant sentenced in federal courtRead the Press Release
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced the sentencing of a woman for her role in a diabolical plot to murder a Hamilton County victim. Renee S. Perillo, 54, Glendale, California was sentenced to 27 years’ imprisonment today in federal court by U.S. District Judge Richard L. Young.
“This devious plot to murder and kidnap a victim is beyond any logical comprehension,” said Minkler. “Ms. Perillo will have many many years in the Department of Corrections to think about her actions.”
Perillo plead guilty to conspiracy to commit kidnapping and murder for hire in May 2017. According to court documents, on May 22, 2015, the Hamilton County Sheriff’s Office responded to a call for service at a residence in Noblesville. When officers arrived, they found Renee Perillo and her son Richard lying in wait in the back seat of the victim’s vehicle along with a syringe of paralytic and a firearm. Her motive was to keep the victim from pursuing legal remedies against her boyfriend.
Perillo also utilized the U.S. mail in September 2015, to send an envelope, which contained a letter to an undercover FBI agent posing as a “hitman.” In her letter, she suggested to the hitman that the victim be killed at an ATM machine to make it look like a robbery.
According to Assistant United States Attorney Bradley Shepard, Perillo must also serve five years of supervised release following her sentence.
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Multiple guilty pleas expose ability of drug cartels to launder drug proceeds through money remittersRead the Press Release
ATLANTA – The last of nine Atlanta-based defendants charged with laundering drug money to Mexico through metro-Atlanta area money remitters has pleaded guilty, concluding a three-year long federal investigation targeting professional money launderers that exposed the ability of drug cartels to launder their illicit proceeds through money remittance companies.
“This investigation revealed how drug cartels use remittance companies to fuel their criminal enterprises,” said U. S. Attorney Byung J. “BJay” Pak. “Money remitters have strict rules to follow. When employees make a decision to ignore those rules, both the employee and money remitter businesses can face prosecution.”
“This case demonstrates the commitment of HSI and our law enforcement partners to dismantle and bring to justice those involved with trying to circumvent our financial laws and help launder illegal drug proceeds,” said ICE HSI Atlanta Acting Special Gregory Wiest.
“Drug Cartels are constantly looking for conduits like money service businesses to launder their illicit drug proceeds back to Mexico. We work to dismantle drug organizations by cutting off the money flow back to Mexico, this makes it harder for the drug cartels to operate,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “IRS Criminal Investigation will continue to target these money laundering experts by working jointly with our law enforcement partners.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In 2014, federal law enforcement agents began investigating individuals in the metro-Atlanta area that were suspected of laundering drug proceeds to Mexico. Federal agents utilized cooperating sources to infiltrate these individuals’ networks and determined that the money launderers were frequently using small businesses to send drug proceeds to Mexico. These small businesses offered “money remittance services,” which allow customers to wire funds to individuals in other countries without using traditional bank accounts.
Investigators determined that managers and employees of a number of metro-Atlanta remitters were knowingly helping the money launderers send drug proceeds to Mexico. During the course of this investigation, cooperating sources and an undercover law enforcement officer brought drug proceeds or money that was represented as coming from drug sales to different remitters. In exchange for a kickback, managers and employees of nine different remitters agreed to launder the funds to Mexico by breaking the transactions into smaller amounts and by listing fake sender names, addresses, and telephone numbers. The investigation revealed that nine metro-Atlanta remitters transmitted more than $40 million over a roughly four-year timeframe. The resulting guilty pleas in this case made clear that the bulk of this money came from the sale of illegal narcotics.
Several of the defendants who pleaded guilty actually served as the Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) compliance officers for their respective stores and were responsible for detecting and reporting these types of illicit financial transactions. Instead, these defendants used their anti-money laundering training to help the drug proceeds flow to Mexico undetected.
The recorded undercover transactions that took place during the operation exposed how willing many remitters were to help their customers secretly send drug proceeds to Mexico. One defendant, who served as a store manager and BSA/AML compliance officer, even gave an undercover officer tips on where to sell drugs in Atlanta. Another defendant, who also served as a store manager and BSA/AML compliance officer, offered to provide a cooperating source help on obtaining fake identifications so that drug proceeds could be transmitted to Mexico undetected.
The following individuals have pleaded guilty to conspiracy to engage in money laundering and are awaiting sentencing:
- Oscar Gustavo Perez-Bernal, 35, of Atlanta, Georgia, was the manager and BSA/AML compliance officer at La Tienda and Cocina Linda Vista, which were both located in Chamblee, Georgia.
- Itzayana Guadalupe Perez-Bernal, a/k/a Lupe, 24, of Norcross, Georgia, was an employee at La Tienda.
- Norma Dominguez, 57, of Atlanta, Georgia, was the manager and BSA/AML compliance officer at La Veracruzana, which was located in Chamblee, Georgia.
- Norma Carrera, 39, of Atlanta, Georgia, was the manager and BSA/AML compliance officer at Hilos y Estambres Teresita, which was located in Chamblee, Georgia.
- Victor Perez, 31, of Lawrenceville, Georgia, was the manager and BSA/AML compliance officer at Intercargo, which had offices in Lawrenceville, Georgia, and Marietta, Georgia.
- Merli Sandy Tejeda-Bermudez, a/k/a Jorhley Adadlay-Bermudez, 30, of Duluth, Georgia, was the manager and BSA/compliance officer at Mundo Cargo and RR Latinas, which were both located in Lawrenceville, Georgia.
- Daniel Castaneda-Garcia, 32, of Atlanta, Georgia, was the manager and BSA/AML compliance officer at Taqueria el Dany, which was located in Lawrenceville, Georgia.
- Lidia Pineda-Altamarino, a/k/a Lily, 33, of Lawrenceville, Georgia.
Additionally, Susan Fiorella Ayala-Chavez, a/k/a Pitus, 30, of Lawrenceville, Georgia, pleaded guilty to conspiracy to engage in money laundering and has been sentenced to three years, one month in federal prison. Ayala-Chavez was an employee at the Rainforest Chevron gas station in Lawrenceville, Georgia.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigation. The Gwinnett County Sheriff’s Department, Georgia State Patrol, and Powder Springs Police Department provided valuable assistance throughout the course of the investigation.
Assistant U.S. Attorneys Thomas J. Krepp and Alison B. Prout are prosecuting the case. The Justice Department’s Money Laundering and Asset Recovery Section provided significant assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Oscar Gustavo Perez-Bernal, 35, of Atlanta, Georgia, was the manager and BSA/AML compliance officer at La Tienda and Cocina Linda Vista, which were both located in Chamblee, Georgia.
Montgomery Man Sentenced to 10 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama- Keyon Montez Butler (24) of Montgomery, Alabama was sentenced yesterday to 120 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Louis V. Franklin, Sr. Federal law prohibits a person convicted of a felony from possessing firearms or ammunition. Butler was found guilty of the charge after a trial that took place in June 2017
At trial, the jury heard testimony that Butler and a co-defendant, Demarcus Cordarious Parker (25) also from Montgomery, were both convicted felons who possessed firearms that they intended to sell. During an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Montgomery Police Department, Parker made multiple gun sales to undercover law enforcement agents in August of 2016. ATF also discovered that Butler had placed an advertisement for the sale of a firearm on Facebook and they arranged to meet him at Oak Park in Montgomery to make the purchase. Butler drove to Oak Park in an SUV with Parker in the passenger seat. In the vehicle, Butler had possession of a .40 caliber pistol and sold it to law enforcement who were working undercover.
Butler’s lengthy sentence for this conviction was due to his significant criminal history, which included prior convictions of robbery in the first degree, possession of a controlled substance, and felony murder. Following his sentence of 10 years in prison, Butler will be subject to 3 years of supervised release. There is no parole in the federal system.
Demarcus Parker pled guilty to his charges in June and will be sentenced at a later date. He faces a maximum sentence of 10 years.
U.S Attorney Franklin would like to thank the ATF Montgomery Field Office and the Montgomery Police Department for investigating this case and for combating the illegal sale of guns on our streets. This case was prosecuted by Assistant United States Attorney Denise O. Simpson.
Montgomery Man Sentenced to 10 Years in Federal Prison After Shootout at Convenience StoreRead the Press Release
Montgomery, Alabama – Christopher Gilcrest (34) of Montgomery, Alabama, was sentenced yesterday to 120 months in federal prison for being a felon in possession of ammunition, announced United States Attorney Louis V. Franklin, Sr. Federal law prohibits a person convicted of a felony from possessing firearms or ammunition.
A jury found Gilcrest guilty of the charge after a trial in June of this year. Evidence presented at the trial showed that on October 23, 2016, Gilcrest went to the Value Gas Food Store on Highland Avenue in Montgomery just after midnight. After approaching the store, he began to argue with a man in the parking lot. During the argument, Gilcrest pulled out a gun. At this point, the other man produced his own firearm and Gilcrest shot him in the leg. Several shots were exchanged between them and Gilcrest fled the scene after firing his weapon at least six times. A total of three people were struck by bullets during the gunfire, including the defendant and an innocent bystander.
Although Gilcrest’s gun could not be recovered, the Montgomery Police Department (MPD) was able to collect spent shell casings from the scene immediately after the shooting. After seeing surveillance camera footage of the shooting and the ballistics examination of the casings, the jury found that the casings came from the gun that Gilcrest was firing.
Court records show that this is not the first time that Gilcrest has faced charges of being a felon in possession of firearms or ammunition. In 2009, he was convicted of illegally possessing a handgun as a felon.
Following his prison sentence of 10 years in prison, Gilcrest will be subject to 3 years of supervised release. There is no parole in the federal system.
“It is unfortunate that as a nation we have experienced a significant increase in violent crime and, unfortunately, Montgomery is not immune from this problem,” stated U.S Attorney Franklin. “We are committed to aggressively prosecuting all violations of the federal firearms laws to combat this disturbing and dangerous trend. We will use every tool in our law enforcement arsenal to protect the citizens of this district and deter others from using a gun to resolve conflict.”
“This successful prosecution and sentencing speak to the importance of the cooperative relationships within the criminal justice system,” said Montgomery Police Chief Ernest Finley. “We appreciate working with the U.S. Attorney and his staff to increase safety throughout the City of Montgomery and to achieve justice.”
ATF Special Agent in Charge, Steve Gerido remarked, “Protecting the public by the removal of the criminal element that commits acts of violence with a firearm was the result of the combined efforts by ATF, Montgomery Police Department, and the U.S. Attorney’s Office”
U.S. Attorney Franklin would like to thank the following entities for their assistance in investigating this case: the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Montgomery Police Department (MPD). This case was prosecuted by Assistant United States Attorneys Bradley Bodiford and Ben Baxley.
Mexican National Charged with Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ADRIAN CONTRERAS-VARELAS, age 18, a citizen of Mexico, was charged today in a one-count Indictment with illegal use of a Social Security Number in violation of Title 42, United States Code, Section 408(a)(7)(B).
CONTRERAS-VARELAS faces a maximum term of imprisonment of not more than five years, a fine of $250,000, and a mandatory special assessment of $100. Additionally, CONTRERAS-VARELAS is subject to a period of supervised release after imprisonment of up to three years.
Acting U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 is in charge of the prosecution.
Mexican Man Sentenced for Illegal Re-Entry After DeportationRead the Press Release
Orlando, FL – U.S. District Judge John Antoon, II today sentenced Luis David Huerta-Carranza (37, Mexico) to two years in federal prison for illegal re-entry into the United States. He pleaded guilty on August 31, 2017.
According to court documents, Huerta-Carranza was previously deported from the United States to Mexico in June 2001, September 2013, and January 2014.
“U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations will continue to focus on investigating, arresting, and removing criminal aliens from the United States,” said Michael W. Meade, acting field office director for the Miami Field Office of ERO.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It was prosecuted by Assistant United States Attorney Kara Wick.
Mexican Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Jose Agustin Martinez, age 35, and a citizen of Mexico, pled guilty today to illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas R. Decker, Director of the New York Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Agustin Martinez was previously removed from the United States to Mexico on May 18, 2016, following a felony conviction earlier that year, in New York, for driving while intoxicated. On February 14, 2017, he was encountered by an ICE Officer in the Ulster County Jail in Kingston, New York. Agustin Martinez admitted that he returned to the United States without permission following the May 2016 removal.
As a result of his conviction, Agustin Martinez faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced by United States Judge Mae A. D’Agostino on March 19, 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 ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Meadows Regional Medical Center, Inc. and Affiliates to Pay up to $12.875 Million to Resolve Alleged False Claims Act ViolationsRead the Press Release
SAVANNAH, GA: Meadows Regional Medical Center, Inc. (“Meadows”) and others have agreed to pay the United States and Georgia a total of up to $12,875,000 to resolve allegations that they violated the False Claims Act. The United States and State of Georgia contended that Meadows and others violated and conspired to violate the False Claims Act by submitting claims referred by physicians with whom Meadows had improper compensation arrangements, in violation of the Stark Law and the Anti-Kickback Statute. As part of the settlement, Meadows has also entered into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG).
“This Office prioritizes the investigation of improper financial relationships between health care providers and referral sources because services reimbursed by federal health care programs should be based on the patients’ best interests, and not on the financial interests of their doctors. We will continue to use all available resources at our disposal to pursue culpable providers, executives, and physicians,” said United States Attorney R. Brian Tanner. “In the early stages of this investigation, Meadows made available its executive team, voluntarily produced large numbers of documents, self-identified potential issues, proposed monetary and non-monetary corrective actions, and followed through on those proposals. Meadows should be commended for its response, which resulted in a resolution that acknowledged the substantial efforts Meadows made on its own accord.”
“Once Meadows learned of payments to providers for hospital referrals they quickly acknowledged the wrongdoing and took positive steps to correct the problems,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “It is essential that patients and taxpayers be confident medical decisions have not been tainted by illegal financial considerations.”
“Georgia’s Medicaid program depends upon the integrity of referral sources for healthcare services,” said Georgia Attorney General Chris Carr. “Our office, through the Medicaid Fraud Control Unit, will continue to safeguard our citizens from activity that places profits above patients. Providers like Meadows who voluntarily cooperate with investigations and take proactive remedial steps make protecting our programs much more effective.”
This investigation was conducted by Special Agent David Graupner, Department of Health and Human Services, Office of Inspector General, Investigator Kimberly Reinken, United States Attorney’s Office, and Law Clerk Alison Slagowitz. The United States was represented by Assistant United States Attorney J. Thomas Clarkson. The State of Georgia was represented by Assistant Attorney General James Mooney with assistance from Investigative Auditor Denise Colson. The claims resolved by the settlement agreement are allegations only and there has been no determination of liability. For additional information, please contact United States Attorney R. Brian Tanner at (912) 652-4422.
McLaughlin Man Found Not Guilty of Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man was acquitted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury as a result of a federal jury trial in Aberdeen, South Dakota, beginning on November 13, 2017, and concluding on November 14, 2017.
Richard Todd Steele, age 37, was indicted by a federal grand jury on June 14, 2017.
The charge stemmed from an alleged incident that occurred in April 2017, in McLaughlin.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. The U.S. Attorney’s Office prosecuted the case.
Marion County Man Sentenced to Ten Years for Receiving Child PornographyRead the Press Release
Ocala, FL – U.S. District Judge James D. Whittemore has sentenced Charles Wallace Ellsworth (55, Summerfield) to 10 years in federal prison for receiving child pornography. He also was ordered to serve a life term of supervised release, and to comply with all applicable state and federal sexual offender and sexual predator registration statutes, upon his release from prison. Ellsworth pleaded guilty on August 21, 2017.
According to court documents, between March 2017 and May 11, 2017, Ellsworth received images of child pornography on a file sharing network. On May 12, 2017, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed a search warrant at Ellsworth’s home. Forensic analyses of his computer revealed more than 100 images of child pornography, including numerous images of infants and toddlers.
“This criminal preyed on the most vulnerable in our society, our children,” said HSI Tampa Special Agent in Charge, James C. Spero. “We have stopped this predator in his tracks, protecting countless children from his crimes.”
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Orlando Office. It was prosecuted by Assistant United States Attorney Dale R. Campion.
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 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 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.
Man Sentenced to 210 Months in Prison for Drug Trafficking and Money Laundering ChargesRead the Press Release
DES MOINES, Iowa - On November 17, 2017, Jonathan Escareno Chavezheather Jean Reekr, 28, of Des Moines, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 210 months’ imprisonment for conspiracy to distribute marijuana, cocaine, and cocaine base and for money laundering, announced United States Attorney Marc Krickbaum. These sentences were ordered to be served concurrently.
On July 12, 2017, Escareno pleaded guilty to these charges, admitting he was engaged in the distribution of marijuana, cocaine, and cocaine base between September of 2015 and September of 2016, and had engaged in laundering drug proceeds in July of 2016. These charges stemmed from a several-month investigation of Escareno Chavez, in which numerous controlled purchases of marijuana and cocaine were made from him. Law enforcement agents also intercepted Escareno Chavez’s wire and electronic communications, which permitted them to identify a broad network of over 20 persons engaged in the distribution of controlled substances in the Des Moines area.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Iowa Division of Narcotics Enforcement, with significant assistance of numerous other federal, state, and local agencies, including the Des Moines Police Department and Mid-Iowa Narcotics Enforcement Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Man Sentenced on Federal Drug Conspiracy ChargeRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated that Enrique Garcia Burgos, age 45, of Myrtle Beach, was sentenced in federal court to 85 months imprisonment followed by a three-year term of supervised release. On July 25, 2017, Burgos entered a guilty plea in federal court in Florence, South Carolina, to conspiracy to possess with intent to distribute and distribution of heroin and cocaine in violation of Title 21, United States Code, Sections 841(a)(1) and 846. United States District Judge R. Bryan Harwell of Florence imposed the sentence.
This case was part of an extensive investigation conducted by a team of law enforcement agencies into the sale of heroin and other illegal drugs in the Horry County, South Carolina, area. During the investigation, Burgos, and a co-defendant, Asuncion Arguello, were identified as possible heroin distributors in the Myrtle Beach area. Evidence presented at the change of plea hearing and sentencing hearing established that agents made a controlled purchase of heroin from Arguello in January 2016. Several months later, based on additional information learned during the investigation, agents stopped a vehicle occupied by Burgos and Arguello on Interstate 20 in Florence County. Agents searched the vehicle and located a loaded firearm, over 1 kilogram of heroin, and nearly 500 grams of cocaine.
The case was investigated by agents of the Drug Enforcement Administration, the Fifteenth Circuit Drug Enforcement Unit , and the Florence County Sheriff’s Office. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Man Sentenced for Making False Statements on Passport ApplicationRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated that Roderick Randy England was sentenced, to be imprisoned to 18 months in federal prison followed by three years supervised release, in federal court in Florence, South Carolina, by United States District Judge R. Bryan Harwell. England previously pled guilty to making a false application on a passport application which is a violation of Title 18 U.S.C. 1542.
Evidence presented at the guilty plea and other hearings established that England, a citizen of Jamaica, previously served a prison sentence in Florida after being convicted on charges of making a false claim of citizenship with the intent to obtain a state benefit. England was also sentenced to a one year term of supervised release which required him to report to United States Immigration and Customs Enforcement for removal proceedings when he was released from custody. However, England failed to report upon his release. Instead, England applied for a passport at the Post Office in Longs, South Carolina, on February 21, 2013, using a false name and the birth certificate of a citizen of the U.S. Virgin Islands. England was later arrested in Tacoma, Washington, and charged with driving under the influence, resisting arrest, and escape. England was then transported back to South Carolina to face federal charges.
Agents of the United States Department of State, Diplomatic Security Service, investigated the case. Assistant United States Attorney Bill Day of the Columbia office prosecuted the case.
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Man Sentenced to Twenty Years in Federal Prison for Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On November 15, 2017, United States District Judge Richard D. Bennett sentenced Russell Todd O’Bannon, age 52, of Dundalk, Maryland, to 20 years in prison, followed by a lifetime of supervised release for production of child pornography. Judge Bennett ordered that, upon his release from prison, O’Bannon must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Police Chief Wade Goolsby of the Waxahachie Police Department in Waxahachie, Texas.
According to his plea agreement, between November 2013 and January 2016, O’Bannon communicated with numerous male and female minors through the internet in which he persuaded, induced, and enticed the victims to engage in sexually explicit conduct, to produce images of this conduct, and to send the images to him. As a result, the minor victims sent O’Bannon numerous pornographic images of themselves through the social media platform Facebook.
The 17 minor victims were located in various regions of the United States and in foreign countries. O’Bannon communicated through the text-messaging feature of Facebook, using alias Facebook profiles that falsely identified him as “Martin Anderson.” Under this alias, O’Bannon consistently lied about his age to his minor victims and sent the victims photos of nude and shirtless young men and photos of genitals, claiming that these were images of himself. O’Bannon requested that the minors send him images of their genitalia and of them engaging in masturbation, and the victims complied with these requests. O’Bannon also stated intentions of visiting the minors to have sex, and graphically described the sex acts he intended to perform with them. He regularly told female victims that he wanted to have unprotected sex to impregnate them. Several of the minor victims were in foster care or in group homes. Two of the minors told O’Bannon that they had been victims of previous rapes. O’Bannon responded by requesting details about the rapes and continued to ask for pornographic images of the children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI and the Waxahachie Police Department for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Matthew Maddox who prosecuted the case.
Lubbock Man Sentenced for Production of Child PornographyRead the Press Release
LUBBOCK, Texas — Tarvinn Djuan Williams, 29, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 188 months in federal prison, following his guilty plea in August 2017 to one count of production of child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Williams has been in custody since his arrest in June 2017.
According to plea documents filed in the case, on March 26, 2017, Williams made contact through Facebook messaging with a 16-year-old minor female, Jane Doe l, for the purpose of convincing her to engage in sexually explicit conduct with him. Williams concealed his true identity by representing himself to be “Samantha Pena,” a female alias that he created for the purpose of recruiting females to engage in sex acts with Williams.
Williams, representing himself to be “Samantha Pena,” convinced Jane Doe l to meet him to engage in sexual intercourse with him and represented that “Samantha Pena” would pay Jane Doe 1 to engage in the sex acts with Williams. Jane Doe 1 met with Williams at least three times and engaged in sexual intercourse with him.
In the course of the communications between Williams, using the identity of “Samantha Pena,” and Jane Doe 1, Williams asked Jane Doe l to take sexually explicit pictures and send them to Pena. “Samantha Pena” told Jane Doe 1 that she wouldn’t be required to have sex with Williams if she would send the sexually explicit material. Jane Doe 1 complied with the requests and took and sent pictures and one video. “Samantha Pena” made repeated promises to Jane Doe l that she would be paid, but “Samantha Pena” never paid Jane Doe 1.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Lubbock Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
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Lovejoy Barber Shop Used to Distribute CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Stevie Alejandro, 31; Cleophus Dentmond a/k/a Face, age 28; Gilbert Guzman, age 48; and Catherine Ramos, age 29, all of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute and distribution of a mixture or substance containing cocaine. The charges carry a maximum sentence of 20 years in prison and a fine of $1,000,000, or both.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, since May 2017, the defendants, including Alejandro, the operator of Barberians Barber Shop located on East Lovejoy Steet, in Buffalo, NY were selling cocaine out of the barber shop. The Buffalo Police Department received numerous complaints about suspected drug activity in the barber shop which is located across from Buffalo Public School No. 43, the Lovejoy Discovery School.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Cheektowaga Police Department, under the direction of Chief David Zak; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.Initial appearances were held before U.S. Magistrate Judge Jeremiah J. McCarthy on November 16 and November 17, 2017. The defendants were released on conditions except for Stevie Alejandro who requested a detention hearing which is scheduled for November 21, 2017.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Long Island-Based Telephonics Corporation Pays $4.25 Million to Settle Overbilling Claims on Army & Navy ContractsRead the Press Release
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, today announced that Telephonics Corporation, based in Farmingdale, New York, has agreed to pay $4,250,000 to the United States to settle claims that Telephonics overbilled the federal government under certain contracts to provide vehicle-mounted counter-improvised explosive device systems (Warlock Systems) to the Army and multi-mode radar systems (LAMPS Systems) to the Navy.
The settlement announced today is the result of a joint investigation conducted by the Defense Criminal Investigative Service (DCIS), the U.S. Army Criminal Investigation Command and the Naval Criminal Investigative Service (NCIS).
“Defense contractors who enrich themselves at taxpayers’ expense by failing to accurately represent the costs of their goods and services will be held fully accountable. Taxpayers deserve no less,” stated Acting United States Attorney Rohde. Ms. Rohde praised the successful partnership between the United States Attorney’s Office, DCIS, NCIS, and the U.S. Army Criminal Investigation Command in detecting and preventing fraud and overbilling.
“The civil settlement announced today is the end result of a successful joint case conducted by DCIS, the U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service, the Defense Contract Audit Agency and the U.S. Attorney’s Office, Eastern District of New York,” stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “DCIS and its law enforcement partners will continue to investigate violations of the False Claims Act in order to protect U.S. military members and prevent defense contractors from profiting at the expense of the American taxpayer.”
“This settlement further demonstrates the resolve of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit and our law enforcement partners to protect and defend the assets of the United States Army,” stated Special Agent-in-Charge L. Scott Moreland.
“Fraud is never a victimless crime,” stated NCIS Northeast Field Office Special Agent-in-Charge Leo Lamont. “In this case, involving the intentional mischarging of the Navy for critical equipment during a time of war, the victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests.”
Between 2004 and 2007, Telephonics, a corporation that provides services, products and technology to the Department of Defense, subcontracted to provide work and materials for the assembly of the Army’s Warlock Systems and the Navy’s LAMPS Systems. The Warlock Systems are installed in vehicles to interrupt wireless systems designed to trigger improvised explosive devices and are used in Afghanistan and Iraq. The LAMPS Systems are used on Navy helicopters.
The government contends that Telephonics did not provide accurate cost data in connection with certain contracts for the Warlock and LAMPS Systems. Specifically, Telephoncs improperly billed the Army and Navy by calculating invoices using: 1) inflated “estimates” when then-current available information showed lower actual costs; and 2) different labor rates than those set forth in relevant contracts. There was no allegation about the quality of Telephonics’ products or services. The settlement is not an admission of wrongdoing by Telephonics.
The United States’ investigation was handled by Assistant United States Attorneys John Vagelatos and Robert W. Schumacher.
Local Man Sentenced for $5 Million Investment ScamRead the Press Release
HOUSTON - A 77-year-old Montgomery man has been ordered to federal prison following his convictions on two counts related to an investment fraud scheme involving more than 50 victims and more than $5 million, announced Acting U.S. Attorney Abe Martinez. Allan George Cooper pleaded guilty May 5, 2017.
Today, U.S. District Judge Melinda Harmon handed Cooper a 121-month sentence. At the hearing, two victims presented live testimony to the Court about the financial hardships they and their families faced because of Cooper’s fraud. In handing down the sentence, Judge Harmon noted Cooper was a danger to the community. He was further ordered to pay a $5,805,535 in restitution and will be required to serve three years of supervised release following completion of the prison term.
Cooper was president of Effective Energy Alternatives dba A.G. Cooper Associates, managing member of AG Cooper LLC and registered agent for Effective Funding Network LLC. Cooper created AG Cooper & Associates and presented himself as an investment advisor, meeting investors through a church group and through referrals from other investors. He solicited and received more than $5 million from investors, many of whom believed he was making short-term loans to small companies who could not get bank financing.
Cooper received investor funds via wire transfers or checks handed to him in person. He presented investment programs that projected more than 12% returns in a short period of time and lulled investors with false and misleading statements he mailed to their homes on a quarterly basis. On occasion, he would make monthly payments to investors with funds provided by new investors. Deceived by these monthly payments and fraudulent quarterly statements, these victims believed their money was being properly invested, and on some occasions, would re-invest more money with Cooper. However, analysis of his bank accounts revealed the majority of the monies were used to pay back other investors, pay his credit cards, fund his other companies and to enrich his own lifestyle.
Previously released on bond, Cooper was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with assistance from the Texas State Securities Board. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
Justice Department Settles Immigration-Related Discrimination Claim Against Pasco, Washington Vegetable Processing PlantRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Washington Potato Company, which operates the Freeze Pack vegetable processing plant located in Pasco, Washington. The agreement resolves the Department’s investigation into whether Washington Potato discriminated against work-authorized immigrants when verifying their employment authorization, in violation of the Immigration and Nationality Act (INA).
The Department’s investigation revealed that Washington Potato routinely requested that work-authorized non-U.S. citizens present specific documents to confirm their citizenship status, such as Permanent Resident Cards or Employment Authorization Documents, while verifying their authorization to work at the Freeze Pack plant, but did not subject U.S. citizens to such requests. The anti-discrimination provision of the INA prohibits employers from subjecting employees to different or unnecessary documentary demands based on employees’ citizenship, immigration status or national origin.
Under the settlement, Washington Potato will pay a civil penalty of $100,000 to the United States, train its staff, post notices informing workers about their rights under the INA’s antidiscrimination provision, and be subject to departmental monitoring and reporting requirements. An earlier settlement between the Department and Washington Potato Company in May 2017 resolved litigation concerning similar discriminatory conduct by Washington Potato in its management of another facility located in Pasco, Washington.
“Employers must ensure that they do not impose unnecessary and unlawful barriers to employment based on citizenship status,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “We look forward to working with Washington Potato Company to fulfill the terms of this agreement and ensure compliance with the law at all the facilities it operates.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Joseph H. Harrington, Acting U.S. Attorney for the Eastern District of Washington, stated: “The U.S. Attorney’s Office commends employers utilizing nondiscriminatory employment hiring practices, adding that “the U.S. Department of Justice remains vigilant in investigating and enforcing reported violations of anti-discrimination laws.”
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship/immigration status or national origin, or discrimination based on their citizenship/immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Jury Convicts Four Defendants of Conspiracy Charges Related to Drug TraffickingRead the Press Release
Abingdon, VIRGINIA – United States Attorney Rick Mountcastle announced today that following a seven day trial, a jury sitting in Abingdon, Virginia convicted four defendants of multiple charges related to the large scale distribution of methamphetamine, oxycodone, and buprenorphine. Richard Kayian, 55, Las Vegas, Nevada, and Tracy Callihan, 48, Glade Spring, Virginia, were both convicted of one count of conspiracy to distribute 500 grams or more of methamphetamine and oxycodone and to use a communication facility to facilitate a drug trafficking offense, and one count of conspiracy to commit money laundering. John Williams, 50, Glade Spring, Virginia, was convicted of one count of conspiracy to use a communication facility to facilitate a drug trafficking offense. Rebecca Williams, 51, Abingdon, Virginia, was convicted of one count of conspiracy to distribute methamphetamine, oxycodone, and buprenorphine, and to use a communication facility to facilitate a drug trafficking offense.
In late 2016, law enforcement agencies, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, and assisted by agencies from across southwest Virginia and Las Vegas, Nevada, charged 32 individuals with conspiring to distribute methamphetamine, oxycodone, and buprenorphine. The investigation, Operation Leaving Las Vegas, accused 32 individuals of trafficking methamphetamine, oxycodone, and buprenorphine from Las Vegas into Southwest Virginia, Eastern Kentucky and elsewhere. Evidence presented at the trial demonstrated that Kayian was responsible for sending large quantities of methamphetamine and oxycodone via UPS and Federal Express to numerous locations in Abingdon, Virginia and Glade Spring, Virginia. These drugs were then distributed throughout the area and in Eastern Kentucky by Tracy Callihan, Rebecca Williams, and others. Evidence also showed that John Williams, formerly employed as a delivery driver for UPS, assisted the organization by ensuring that packages of methamphetamine and oxycodone were safely delivered to Tracy Callihan in Glade Springs and were not intercepted by law enforcement. Additionally, evidence at the trial demonstrated that more than $1,000,000 in proceeds from the drug sales in the Abingdon area were sent via wire transfers and bank deposits to Kayian and others in Las Vegas, Nevada.
Sentencing hearings for Richard Kayian and Tracy Callihan have been set for February 27, 2018. Kayian and Callihan each face punishment of up to life imprisonment and $12,000,000.00 in fines. The sentencing hearing for Rebecca Williams has been set for February 28, 2018 and she faces punishment of up to twenty years imprisonment and fines of up to $1,000,000. The sentencing hearing for John Williams has been set for February 12, 2018, and he faces punishment of up to four years imprisonment and fines of up to $250,000.00.
To date, 30 of the 32 charged have been convicted of federal drug conspiracy and money laundering charges and 23 defendants have been sentenced. The cases for the remaining defendants are working their way through the federal court system. Throughout the course of the investigation, more than $60,000.00 has been forfeited. Those previously sentenced are:
- Brandon Lee Stone, 33, Abingdon, Virginia – 300 months imprisonment
- Misael Reyes Tajimaroa, 32, Spokane, Washington – 192 months imprisonment
- Bradley Lee Chapman, 28, Bristol, Virginia - 135 months imprisonment
- Heather Michelle Sullins, 27, Abingdon, Virginia – 30 months imprisonment
- Alex Michael Kayian, 23, Bristol, Virginia - 72 months imprisonment
- Kaitlynn Elizabeth Chapman, 24, Bristol, Virginia - 72 months imprisonment
- Ralph Stewart Dingus, 27, Abingdon, Virginia - 37 months imprisonment
- John Dewayne Farmer, 32, Abingdon, Virginia - 240 months imprisonment
- Lola Virginia Farmer, 52, Abingdon, Virginia - 87 months imprisonment
- Shauna Nicole Chafin, 36, Abingdon, Virginia - 97 months imprisonment
- William Wesley Fleenor, 29, Abingdon, Virginia - 79 months imprisonment
- Jeffrey Nathaniel Gobble, 25, Abingdon, Virginia - 46 months imprisonment
- Preston Kyle Lawson, 21, Abingdon, Virginia - 46 months imprisonment
- Gary Ginn, 47, Clay City, Kentucky - 151 months imprisonment
- Daniel Corey Cantrell, 25, Abingdon, Virginia - 37 months imprisonment
- Tanner Morris Curd, 23, Meadowview, Virginia - 84 months imprisonment
- Amy Lorene Moser, 52, Abingdon, Virginia -100 months imprisonment
- Steven Salyer, 27, Abingdon, Virginia - 87 months imprisonment
- Brandon Cody Trivett, 23, Abingdon, Virginia - 30 months imprisonment
- Brian Edward Widener, 30, Abingdon, Virginia – 46 months imprisonment
- Justin Lowe, 24, Abingdon, Virginia – 41 months imprisonment
- Lamar Skipper, 27, Chilhowie, Virginia - four years probation
- Gary Brandon Childress, 25, Abingdon, Virginia - three years probation.
The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, Smyth County, Virginia Sheriff’s Office and Las Vegas Metropolitan Police Department. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Jordanian national living in Youngstown charged with making false claims related to firearms purchaseRead the Press Release
A one-count information was filed charging a Jordanian citizen living in Youngstown with making a false claim of citizenship related to the purchase a firearm, U.S. Attorney Justin E. Herdman said.
Abdul Maola Alabadi, 35, falsely and willfully represented himself to be a citizen of the United States on Aug. 30, 2017, according to the information.
The manager at Fin Fur Feather in Boardman called the ATF on Sept. 2 after he stopped the purchase of a rifle by Alabadi based on comments made by Alabadi. The manager told agents that Alabadi purchased a 9 mm pistol the previous week, according to the court documents.
Alabadi told a sales associate he wanted to purchase a “sniper rifle for training.” The manager estimated Alabadi was in the store for two to three hours and at one point had someone come to translate and attempt to straw purchase a firearm for him, according to court documents.
During the previous purchase of the 9 mm, Alabadi checked a box indicating he was a U.S. citizen. Alabadi is not a U.S. citizen, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Immigration and Customs Enforcement. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Jerseyville Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
A Federal Grand Jury sitting in East St. Louis has indicted Christopher Scott Fry, 47, of Jerseyville, Illinois with conspiracy to distribute methamphetamine and possession of a firearm while being a user of a controlled substance, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The Court ordered Fry to be detained without bond pending trial after a hearing held today.
Documents filed in the U.S. District Court allege that from March 2016 to September 23, 2016, Fry knowingly conspired with another person to distribute and possess with intent to distribute methamphetamine. The documents further allege that Fry, being an unlawful user of a controlled substance, knowingly and unlawfully possessed three firearms.
If convicted of conspiracy to distribute methamphetamine, Fry faces a term in prison of up to 20 years, a fine of up to $1,000,000, or both, and a term of supervised release of up to three years. If convicted of being in possession of a firearm while being an unlawful user of a controlled substance, Fry faces a term in prison of up to ten years, a fine of up to $250,000, or both, and a term of supervised release of up to three years.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent
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of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by theMetropolitan Enforcement Group of Southwestern Illinois (MEGSI), the South Central Illinois Drug Task Force (SCIDTF), and the Jersey County Sheriff’s Department. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Jefferson Parish Man Pleads Guilty to Distribution of Cocaine BaseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PATRICK STEPHEN, age 37, pled guilty today to Count 1 of an Indictment, which charged him with distribution of 28 grams or more of cocaine base.
According to court documents, Special Agents of the Drug Enforcement Administration conducted five separate controlled purchases of cocaine from STEPHEN between August 2016 and February 2017 in Jefferson and Orleans Parishes. The last purchase involved over 57 grams of cocaine base.
STEPHEN faces a mandatory minimum sentence of 5 years up to a maximum sentenced of 40 years imprisonment, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment. Sentencing is scheduled before Judge Carl J. Barbier on January 25, 2018.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Drug Enforcement Administration, as well as the Jefferson Parish Sherriff’s Office, in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.
Janesville Man Charged with Dealing Firearms Without a LicenseRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that on November 7, 2017, Gary Schroeder, of Janesville, was indicted by a federal grand jury of dealing firearms without a license and transferring a firearm to an out-of-state person.
The indictment alleges that Schroeder, 65, engaged in the business of dealing firearms without a license from at least April 2014 until at least January 2017. According to the indictment and other documents filed in court, Schroeder sold hundreds of firearms at gun shows in Wisconsin and elsewhere and displayed signage at the shows advertising that he did not collect taxes on his sales or conduct background checks on his customers. Revenue from Schroeder’s gun sales appears to have exceeded $100,000.
As part of the investigation, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a federal search warrant at Schroeder’s residence. Among the items seized by the agents were:
- 52 firearms;
- Over 200 handwritten receipts documenting the sale of firearms to about 200 customers;
- Records showing gun sales revenue of more than $100,000;
- Sales records for approximately twenty out-of-state customers;
- Approximately 1,000 business cards advertising “Gary Schroeder: Buy and Sell Guns”; and
- Dozens of ATF forms 4473 bearing Schroeder’s signature immediately below a sentence that reads, “I further understand that the repetitive purchase of firearms for the purpose of resale for livelihood and profit without a Federal firearms license is a violation of Federal law.”
According to documents filed in court, a number of firearms sold by Schroeder were later involved in separate crimes.
“Federal law requires gun dealers to obtain a license and to conduct background checks on their customers,” said United States Attorney Haanstad. “The principal purpose of those requirements is to prevent guns from falling into the hands of dangerous people. When someone circumvents the license-and-background-check framework by engaging in the business of unlicensed dealing, that person increases the threat to public safety. The United States Attorney’s Office and the Department of Justice are committed to countering that public safety threat as a part of its broader strategy to combat violent crime.”
If convicted, Schroeder faces a maximum term of imprisonment of five years, a maximum term of supervised release of three years, and a maximum fine of $250,000. The United States has also sought to forfeit all of the firearms found in Schroeder’s home during the search warrant execution.
An indictment is a formal method of charging an individual with a criminal offense. The charges contained in the indictment are merely allegations. Schroeder is presumed innocent until and unless the government establishes his guilt beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Benjamin Taibleson.
For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Jacksonville Man Pleads Guilty to Receiving Child Sex Abuse Images from A Convicted Sex OffenderRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Stanley Hagan, Jr. (33, Jacksonville) has pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential life term of supervised release. A sentencing date has not yet been set.
According to court documents, in 2015, convicted child sex offender Darren Dozier was released from prison and established a residence in Philadelphia. While there, he molested an 8-year-old child and produced images and videos of the abuse. On December 19, 2015, and again on August 7, 2016, Hagan engaged in sexually explicit online conversations with Dozier. During the first conversation, Dozier offered to send Hagan sexually explicit images of his victim, and Hagan accepted the offer. Dozier then sent Hagan four images depicting Dozier sexually abusing the child. On August 30, 2017, during an interview with FBI agents in Jacksonville, Hagan admitted that he had solicited and received these images from Dozier.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and Philadelphia. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Inmate Sentenced on Federal Fraud Charges Involving Check-Kiting Scheme from PrisonRead the Press Release
St. Louis, MO – Pierre Watson, 39, of Jennings Correction Center, was sentenced to 48 months in prison on Thursday by U.S. District Judge John Ross. Watson was sentenced in June to 84 months in prison in front of U.S. District Judge Audrey Fleissig. The two sentences which will run consecutive for a total prison sentence of 132 months.
Watson was found guilty by a bench trial in December 2016 on multiple fraud counts involving a conspiracy to commit various fraudulent schemes while he was being detained at the Jennings Correctional Center. One of the schemes at issue included check-kiting which they term as “piggybacking.” Check-kiting occurs when an individual takes advantage of the small window of time between when checks are deposited into an account, and the financial institution upon which the checks are drawn provides notice to the depositing institution that the check will not be honored.
The prior conviction resulted from a bench trial before U.S. District Judge Fleissig in November 2016. Watson was found guilty of a conspiracy to produce counterfeit checks from real and fictitious businesses and to commit bank fraud. Watson was being detained pending the trial before U.S. District Judge Fleissig when he committed the check-kiting scheme that was ultimately tried by U.S. District Judge Ross.
The cases were investigated by the United States Secret Service, the Federal Bureau of Investigation, and St. Louis County Police Department. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on November 17, 2017 and entering pleas of Not Guilty were:
- KEVIN RAYMOND RUCKS, a 56-year-old resident of Dickinson, North Dakota, appeared on charges of distribution of methamphetamine. If convicted of the charge contained in the indictment, RUCKS faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 17-08
Appearing before U.S. Magistrate Cavan in Billings on November 14, 2017 and entering pleas of Not Guilty were:
- MICHAEL JASON TORREZ, a 44-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, TORREZ faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 17-124
- DUSTIN LEE WOLFF, a 33-year-old resident of Missoula, appeared on charges of conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WOLFF faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 17-125
Appearing before U.S. Magistrate Cavan in Billings on November 13, 2017 and entering pleas of Not Guilty were:
- IRA LEFTHAND, JR., a 42-year-old resident of Lodge Grass, appeared on charges of assault resulting in serious bodily injury. If convicted of the charge contained in the indictment, LEFTHAND faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-115
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Henry County Man Pleads Guilty to Possession and Receipt of Child PornographyRead the Press Release
Jackson, TN – A Henry County man has pleaded guilty to possession and receipt of child pornography. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.
In February 2017, law enforcement officers in Henry County, Tennessee, received a lead out of Belvidere, Illinois, regarding Russell Jann, 44, of Cottage Grove, Tennessee. Based on that lead and the ensuing investigation, agents learned that Jann had been engaging in sexually explicit online chats and conversations via text messages with at least four minor victims ranging in age from 15 to 17 years old.
Jann exchanged messages with the victims containing pictures of his genitalia and videos of himself masturbating and received similar sexually explicit images and/or videos of at least 3 of the 4 minor victims. Agents also recovered a laptop computer and external hard drive from Jann’s home that contained thousands of images and videos of child pornography depicting children as young as infants. Jann is facing a mandatory minimum five years’ imprisonment.
This case was brought as part of Project Safe Childhood (PSC), 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources."
This case was investigated by the FBI; Belvidere (Illinois) Police Department; and Henry County Sheriff’s Office. Assistant U.S. Attorney Kasey Weiland is prosecuting the case on the government’s behalf.
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Hartford Man Sentenced to Prison for Illegally Possessing AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL LEDBETTER, 26, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 15 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, on November 27, 2016, members of Hartford Police were dispatched to a residence on Nelson Street on a report of a possible domestic assault. LEDBETTER left the residence before police arrived. A short time later, an officer located LEDBETTER in a vehicle on Barbour Street. After LEDBETTER was secured in handcuffs, an officer conducted a pat down of his person and discovered one .40 caliber Hornady live round in LEDBETTER’s right front pocket.
In April 2014, LEDBETTER was convicted in Connecticut Superior Court of six counts of accessory to first degree assault. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
LEDBETTER has been detained since his arrest on a federal criminal complaint on February 12, 2017. On July 7, he pleaded guilty to one count of possession of ammunition by a convicted felon.
This investigation was conducted by the Hartford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson and Senior Assistant State’s Attorney John F. Fahey of the Hartford State’s Attorney’s Office, who has been cross designated as a Special Assistant U.S. Attorney in this matter.
Hammond Woman Sentenced for Operating Fraudulent Tax Preparation BusinessRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ROJONAH HARRIS, age 35, of Hammond, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information charging her with aiding and abetting in the preparation of false tax returns.
U.S. District Judge Lance M. Africk sentenced HARRIS to 30 months imprisonment, followed by one year of supervised release. Additionally, HARRIS was ordered to pay $1,115,578 in restitution.
According to court documents, beginning in about 2012, HARRIS owned and operated a tax preparation business in Hammond, Harris Finance and Tax Service. An investigation revealed that HARRIS regularly claimed false deductions and claimed false federal tax withholdings for her clients to generate unnecessarily large refunds to which they were not entitled. In many cases, HARRIS created false W-2s for her clients that artificially and erroneously misstated the amount of income the customer had earned, including by overstating, understating, or fabricating income. HARRIS also knowingly overstated federal income tax on W-2s that had been withheld from their income. Additionally, in order to increase her clients’ tax refund, HARRIS fraudulently included false wages in the form of household help (“HSH”) income to which her clients were not entitled and provided no supporting documentation. Further, HARRIS reported that some customers had qualified educational expenses when, as HARRIS knew, the customers had neither educational expenses nor documentation indicating expenses. HARRIS charged substantial tax preparation fees for the preparation and transmittal of these tax returns to the Internal Revenue Service; she earned not less than $582,090 in return preparation fees for preparing tax returns for tax years 2011 through 2013.
In total, between tax years 2011 and 2014, HARRIS prepared and filed not fewer than 267 false and fraudulent tax returns, resulting in inappropriate and unnecessary refunds of not less than approximately $1,115,578. As part of her plea, HARRIS acknowledged a loss to the IRS of not less than $1,115,578, and agreed to repay at least that amount in restitution.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service - Criminal Investigation Division in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Galloway Man Sentenced for Distributing Child Pornography after Recording 12-Year-Old Girl in BathroomRead the Press Release
COLUMBUS, Ohio – Justin M. Nickell, 36, of Galloway, Ohio, was sentenced in U.S. District Court to 160 months in prison for distribution of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Westerville Police Chief Joseph Morbitzer, Franklin County Sheriff Dallas Baldwin and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to the Statement of Facts in this case, Nickell communicated with an undercover task force officer posing online as the mother of young children.
During conversation on the Kik Messenger App, Nickell routinely made comments indicating that he wished to engage in sexual activity with the undercover persona’s fictitious children. He also told the officer he secretly recorded a 12-year-old girl in his household getting out of the shower and drying off, and would then masturbate to the video afterwards. Nickell sent a screen shot from one of the videos to the officer. Nickell admitted to hiding his phone in a container in the bathroom under some clothing and also to recording her outside of the bathroom by placing his phone under the door.
On more than one occasion, Nickell sent nude photos of the 12-year-old girl to the undercover officer.
“The nature and circumstances of Nickell’s actions involve an unimaginable violation of trust,” U.S. Attorney Glassman said. “His offenses, paired with the fact that he stated – in excruciating detail and on multiple occasions – that he wanted to engage in very specific sexual acts with the undercover officer’s young fictitious children, call for significant time in federal prison.”
Nickell was indicted by a federal grand jury in March and pleaded guilty in August.
U.S. Attorney Glassman commended the investigation of this case by the Franklin County ICAC and Assistant United States Attorneys Heather A. Hill and Jessica H. Kim, who are representing the United States in this case.
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Ft. Lauderdale Man Pleads Guilty to Flying without CertificationRead the Press Release
PENSACOLA, FLORIDA – Mark Lewis Pullen, 45, of Ft. Lauderdale, pled guilty today to serving as an airman without an airman’s certificate. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2015, the Federal Aviation Administration notified Homeland Security Investigations that an unregistered aircraft planned to land at the Pensacola airport. The last registered owner of the aircraft was Pullen, but his airman’s certificate was revoked. The plane landed at the airport, and Pullen, the pilot, notified law enforcement officers that he had been piloting the aircraft from Texas and was returning home. The law enforcement officers asked to see Pullen’s airman and medical certificates, which he was required to carry with him while operating an aircraft. In response, Pullen told the agents that he did not have his certificates. Between July 2012 when his certificates were revoked and October 2015, Pullen’s aircraft was flown on approximately 46 separate dates.
Pullen faces a maximum of three years in prison and a maximum of a $250,000 fine. He is scheduled to be sentenced on February 2, 2018, at 11:00 a.m. at the United States Courthouse in Pensacola.
U.S. Attorney Canova said: “It is important that pilots follow the regulations in place to ensure that everyone is safe while flying in our skies.”
“This investigation demonstrates that ensuring the safety of the Nation’s air transportation system remains a high priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT),” said Marlies T. Gonzalez, DOT-OIG Regional Special Agent-in-Charge. “Working with the Federal Aviation Administration and prosecutorial partners, we will continue our efforts to prevent and punish those who seek to compromise the safety of our National Airspace System.”
“The unique investigative authorities of HSI special agents enabled us to close this breach of aviation security,” said HSI Tampa Special Agent in Charge James C. Spero. “With this investigation, HSI, the Department of Transportation Office of the Inspector General, and the Federal Aviation Administration have helped protect the integrity of our nation’s aviation systems.”
The case was investigated by the Office of Inspector General, Department of Transportation and the United States Immigration and Customs Enforcement Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former United States Merchant Marine Academy Employee Sentenced to Nine Months’ Imprisonment for Receiving BribesRead the Press Release
Earlier today, in federal court in Central Islip, New York, Frank DeCarlo, a former supervisory carpenter for the Department of Public Works of the United States Merchant Marine Academy, located in Kings Point, New York, was sentenced by United States District Judge Arthur D. Spatt to nine months’ imprisonment, to be followed by three years of supervised release, for receiving a bribe as a public official. The Court also imposed a $10,000 fine and a forfeiture order of $48,000 for funds illegally received by DeCarlo as part of the scheme. DeCarlo pleaded guilty on April 20, 2017, in connection with his participation in a scheme to defraud the United States by steering maintenance and repair contracts to favored contractors in exchange for bribes.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Douglas Shoemaker, Regional Special-Agent-in-Charge, United States Department of Transportation, Office of the Inspector General (DOT-OIG) and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI), announced the sentence.
According to court filings, between 2003 and 2016 while DeCarlo was employed in the Department of Public Works of the United States Merchant Marine Academy, he solicited and submitted fake bids on contracts he supervised in order to steer the awarding of maintenance and repair contracts to favored contractors who paid him bribes. Using his position, DeCarlo arranged, supervised or effected a majority of construction contracts at the Academy.
“DeCarlo’s solicitation of bribes in exchange for the awarding of government contracts compromised the integrity of the procurement system,” stated Acting U.S. Attorney Rohde. “This Office will continue to work with our law enforcement partners to vigorously investigate and prosecute to the fullest extent of the law those corrupt public employees who abuse their positions for their own enrichment.”
“The prosecution of Mr. Frank DeCarlo for bribery at the U.S. Merchant Marine Academy sends a clear signal that those entrusted with the stewardship of taxpayer dollars will be held responsible for maintaining the highest level of integrity,” stated DOT-OIG Regional Special-Agent-in-Charge Shoemaker. “Accountability is a priority of the Secretary and OIG, and working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to protect the taxpayers’ investment in our nation’s transportation system from fraud, waste, abuse and violations of law.”
“Serving the public is a privilege,” stated IRS CI Special Agent-in-Charge Robnett. “This sentence sends a message to all those who abuse the public trust that investigators for IRS-CI will uncover these schemes and protect taxpayers and the U.S. Treasury.”
The government's case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Burton T. Ryan, Jr., and Madeline O’Connor are in charge of the prosecution.
The Defendant:
FRANK DeCARLO
Age: 67
Residence: Franklin Square, New YorkE.D.N.Y. Docket No. 17-CR-35 (ADS)
Former State Department Employee Pleads Guilty to Conspiring to Take and Sell Government VehiclesRead the Press Release
WASHINGTON – A former U.S. Department of State employee pled guilty today to conspiring with others to sell vehicles belonging to the government, without authorization, for their own personal profit, announced U.S. Attorney Jessie K. Liu, Steve A. Linick, Inspector General for the U.S. Department of State, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Ricky J. Motley, 59, of Thurmont, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit theft of government property and wire fraud. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a potential range of 18 to 24 months of incarceration and a fine of $4,000 to $40,000. The plea agreement calls for Motley to pay $416,020 in restitution and an additional amount of $53,000 in a forfeiture money judgment. The Honorable Amit P. Mehta scheduled sentencing for Feb. 22, 2018.
A second defendant, James Ratcliffe, 68, of Fairfax Station, Va., pled guilty to the same charge in January 2017 and is awaiting sentencing. As part of his plea, Ratcliffe has agreed to pay $416,020 in restitution and an identical amount in a forfeiture money judgment.
According to a statement of offense, Motley worked in the State Department’s Defensive Equipment and Armored Vehicle Division. He was responsible for the acquisition, repair and maintenance of armored vehicles and also handled related record-keeping duties.
Ratcliffe is the manager of the Car Collision Center, located in Springfield, Va. He and the owner of the Collision Center, who is identified in court documents as “Person A,” also have a license to sell automobiles in Virginia under the name of Collector’s Auto Restoration.
Through the Car Collision Center, Ratcliffe and others performed legitimate work on vehicles for government agencies, including the U.S. Department of State. Vehicles that came to the Collision Center from the State Department were delivered by State Department employees. The Collision Center provided estimates for the work requested, and, if approved, employees of the Collision Center prepared work tickets, performed the work, and billed the State Department.
The criminal charge involves a scheme carried out by Motley, Ratcliffe, and others from 2011 until 2013. According to the statement of offense, on at least two occasions in 2011 and 2012, Motley caused truckloads of State Department tires and wheels to be delivered to the Collision Center. Motley told Ratcliffe that he could sell them and keep the proceeds. Ratcliffe kept the full proceeds of his sales, which amounted to at least $7,500.
Also, beginning in or before June 2011, and continuing through at least November 2013, Motley and Ratcliffe took a Hummer and 12 Chevrolet Suburbans from the State Department motor pool; these vehicles were unarmored. They agreed that Ratcliffe would sell the vehicles and split the proceeds with Motley. Ratcliffe did not tell purchasers of the misappropriated vehicles they in fact belonged to the State Department. If customers or others asked him where he got the vehicles, he would falsely claim that he acquired them at an auction.
The total amount generated through these sales was $408,520. Per Motley’s request, Ratcliffe paid Motley in cash. Cash withdrawal and deposit records show that Motley obtained at least $53,000 in cash from the sales of the stolen vehicles.
Additionally, in 2015, Motley provided Ratcliffe with two unarmored Suburbans that Ratcliffe kept at his place of business or home. The base price of these vehicles was $48,200 each, for a total of $96,400. The two vehicles were recovered during a law enforcement investigation of the criminal activities.
All told, the value of the property misappropriated through the schemes was at least $512,420.
In announcing the plea, U.S. Attorney Liu, Inspector General Linick, and Assistant Director in Charge Vale commended the work of those who investigated the case from the U.S. Department of State, Office of Inspector General, as well as the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Andrea L. Hertzfeld, former Special Assistant U.S. Attorney Marina Stevenson, and Paralegal Specialists Aisha Keys and Jessica Mundi. Finally, they commended the work of Assistant U.S. Attorney John P. Marston, who is prosecuting the matter.
Former Postal Employee Charged with Embezzlement of Mail MatterRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that YVONNE WILSON, age 37, of Kenner, was charged today in a one-count Bill of Information with embezzlement of mail matter by a postal service employee.
According to the Bill of Information, it is alleged that on or about July 14, 2016, WILSON, while being an employee of the United States Postal Service, did embezzle a first class letter containing $115.00 in United States currency.
WILSON faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
Acting U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the United States Postal Service - Office of Inspector General for investigating this matter. Assistant U.S. Attorney Loan AMimi@ Nguyen is in charge of the prosecution.
Former Merrillville Town Councilman Indicted for BriberyRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Hammond Grand Jury returned an indictment against Thomas Goralczyk, age 51, of Merrillville, Indiana on a federal bribery charge.
The indictment alleges from February 2013 to February 2014 Goralczyk, while a Merrillville Town Councilman, did knowingly and corruptly solicit, demand, accept and agree to accept bribes from Individual A in exchange for a towing contract between the Town of Merrillville and Individual A’s company. Goralczyk accepted the following: a 2000 Jeep Grand Cherokee, a 2008 Ford Focus, 4 camper tires and free storage for his personal motorcycle, from Individual A, intending to be influenced and rewarded in connection with a transactions or series of transactions of the Town of Merrillville.
Also filed today with the Indictment, was a plea agreement in which Goralczyk will be pleading guilty to the charge contained in Indictment. The plea agreement signed by Goralczyk states that Goralczyk was first elected as a Merrillville Town Councilman in 2007 and took office in January 2008. He was re-elected in 2011 and began his 2nd term as 4th ward councilman in January of 2012. He served as President of the Town Council in 2011 and 2015. Goralczyk also held various other positions on the Merrillville Redevelopment Commission, Lake County Solid Waste Management Board and the governing board of NIRPC (Northwest Indiana Regional Planning Commission). As alleged in the indictment, Goralczyk identified that he accepted bribe payments from a Federal Bureau of Investigation “cooperating individual” in the form of two vehicles. He obtained a Jeep Grand Cherokee for $400 when he knew the value was in excess of $2500. In an attempt to cover up the bribe, he presented a false bill of sale to the Indiana Bureau of Motor Vehicles representing that he paid $1000 for the vehicle. In addition, Goralczyk accepted a 2008 Ford Focus with a value in excess of $5000. He paid nothing for this vehicle, but presented a false bill of sale to the Indiana Bureau of Motor Vehicles indicating that he paid $2750 for the vehicle. Goralczyk acknowledged that he accepted both the vehicles for his own personal gain, in exchange for his promise to engage in official conduct by using his influence and power as a Merrillville Town Councilman to obtain a Town of Merrillville towing contract for the FBI “cooperating individual’s” towing company. A date for the plea hearing has not yet been set.
United States Attorney Kirsch said, “Public officials, like Mr. Goralczyk, elected and entrusted to do the public’s work, are required to do that work free from self-dealing and graft. This is not optional. The public demands and is, in fact, entitled to honest public servants. Mr. Goralczyk violated this trust for the purpose of enriching himself. This will not be tolerated at any level of government. Public corruption must be routed out where it exists. If you are in the community and are aware of an elected or appointed official engaging in illegal conduct, I encourage you to notify the FBI or US Attorney’s Office.”
The United States Attorney’s office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case results from an investigation by Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division. This case is being handled by Assistant United States Attorney Philip C. Benson.
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Former Lawrence Police Officer Sentenced on Attempted Extortion ChargesRead the Press Release
BOSTON – A former Lawrence Police Officer was sentenced today in federal court in Boston in connection with attempting to use his position as a police officer to extort cocaine from a drug trafficker.
John R. Desantis Jr., 45, of Methuen, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 18 months in prison and two years of supervised release. In August 2017, Desantis agreed to plead guilty to one count of extortion and attempted extortion under color of official right and through the use of threatened force and fear.
Desantis had been purchasing small amounts of cocaine once or twice a week from a drug trafficker for 10-12 months without identifying himself as a police officer. On May 16, 2016, during a drug transaction at his home, Desantis displayed his gun and badge, seized the cocaine and threatened to arrest the drug trafficker if he did not continue to supply him with drugs. Desantis thereafter continued to communicate with the drug trafficker through text messages, telling him, “you will not be arrested at all if you do as I tell you to.”
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Lawrence Police Chief James X. Fitzpatrick made the announcement today. Assistant U.S. Attorneys Kristina Barclay and Theodore Merritt of Weinreb’s Public Corruption Unit prosecuted the case.