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Thursday 9 November 2017
Man who “sextorted” 12-year-old girl receives 10-year prison sentenceRead the Press Release
ATLANTA - Gerardo Perez Uribe has been sentenced to 10 years in prison for coercing a minor girl in North Carolina to produce child pornography of herself and send it to him over the Internet.
“‘Sextortion’ is a growing problem on social media sites,” said U. S. Attorney Byung J. “BJay” Pak. “Our office along with our federal, state, and local law enforcement partners encourage parents to help us target those who seek to prey on children by watching what your children are doing on the Internet, and who they are communicating with. Most children do not understand the dangers that may lurk on the Internet, and can easily fall victim to predators like Uribe.”
“Social media sites are a convenient way for young children to network with their friends and family, but unfortunately, they also make children easy targets for online predators like Uribe,” said David J. LeValley, Special Agent in Charge of the Atlanta Field Office. “Our Crimes Against Children unit is dedicated to weeding out sexual predators who troll the internet for unsuspecting children. They can’t do it alone and that’s why it is so important for parents to educate their children and monitor their activities on social media sites.”
According to U.S. Attorney Pak, the charges and other information presented in court: In the summer of 2014, Perez Uribe met a 12-year-old girl on Facebook. He first told her that he was 13-years-old but later claimed to be 25-years-old. He asked the girl to send him nude images of herself, and she did. After receiving the images in August 2014, Perez Uribe took over the girl’s Facebook account, changed her password, and locked her out of the account. He then threatened to post the girl’s nude images on her Facebook page if she refused to send him more nude photos of herself. The victim believed Perez Uribe’s threat and sent him four photographs of herself that met the federal definition of child pornography. The girl’s parents discovered the crime and reported the incident to the Cabarrus County (North Carolina) Sheriff’s Office. The Sheriff’s Office investigated the case and then referred the matter to the Federal Bureau of Investigation once Perez Uribe was located in Georgia.
Gerardo Perez Uribe, 32, of Rex, Georgia, was sentenced to 10 years in prison to be followed by 10 years of supervised release. He pleaded guilty on August 24, 2017. He was born in Mexico but was living in the United States as a permanent resident. He will be deported to Mexico after he completes his prison sentence.
This case was investigated by the Federal Bureau of Investigation and Cabarrus County (North Carolina) Sheriff’s Office.
Assistant U.S. Attorneys Paul R. Jones and Mary Webb prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Sentenced to Ten Years in Prison for Second Offense Involving the Sex Trafficking of MinorsRead the Press Release
Assistant U. S. Attorney Alessandra Serano (619) 546-8104
NEWS RELEASE SUMMARY – November 9, 2017
SAN DIEGO, CA – Anthony Khyree Dotson aka “Ant” was sentenced today to 120 months in prison and 10 years of supervised release for sex trafficking a 17-year old minor female while a fugitive for a prior federal conviction involving the same conduct.
The case was initiated in April 2015 after a local high school counselor suspected that a student who attended the local high school was being trafficked. The counselor contacted the San Diego Police Department. San Diego police detectives identified a vehicle that picked up the minor female from school and traced that vehicle back to Dotson, who was listed as an escapee from a halfway house in Los Angeles. Dotson was serving the remainder of his federal prison sentence for a 2012 conviction for the same conduct involving two 16-year old minor females.
In the current case, detectives identified an online ad for the minor on backpage.com in May of 2015 and called the number. A young female answered the call and directed the detective, posing as a customer, to a hotel in Mission Valley. Detectives observed Dotson with the minor in the parking lot of the hotel. The minor exited Dotson’s vehicle and directed the “customer” - an undercover officer, posing as a sex buyer - to a room where the minor was arrested. Detectives located male clothing and used condoms in the trash can. The room was registered to Dotson and video surveillance showed Dotson checking into the room with the minor female wearing the same clothing found in the hotel room. Dotson was apprehended waiting in his vehicle in the hotel parking lot.
United States District Judge Dana M. Sabraw, who sentenced Dotson for his prior offense, stated that he hoped Dotson “would move away” from this activity as he would be facing more significant prison time if he chose to engage in this offense in the future. Sabraw noted that the penalties are harsh “for good reason” as the victims of these crimes are forever affected. Assistant U.S. Attorney Alessandra P. Serano noted that the sentence imposed was more than double the amount of time Dotson received in 2012.
“We will continue to work tirelessly with our law enforcement partners to detect and prosecute persons who engage in sex trafficking, a form of modern day slavery,” said Acting U.S. Attorney Alana Robinson.
“Every day, the FBI and our law enforcement partners at the Innocence Lost Task Force work to thwart these child predators. In this case, it was an alert school counselor who noticed the signs of human trafficking and reported it to law enforcement,” said FBI Special Agent in Charge Eric S. Birnbaum. “This case shows the community working together with law enforcement to combat this horrific crime.”
If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur.
This prosecution is the fruit of the collaborative work of the San Diego Police Department and the FBI’s Innocence Lost Task Force.
DEFENDANTS Case Number: 17CR0638-DMS
Anthony Khyree Dotson aka “Ant” Age: 26 San Diego, CA
SUMMARY OF CHARGES
Sex Trafficking of Children, Title 18 U.S.C. § 1591(a) and (b) – Maximum Penalties: life in prison, Sex Offender Registration
INVESTIGATING AGENCIES
San Diego Police Department
Federal Bureau of Investigation
Man Sentenced for Three Separate Frauds Totaling $3.5 MillionRead the Press Release
RICHMOND, Va. – A Charlottesville man was sentenced today to seven years in prison for committing three fraud schemes that resulted in total losses of over $3.5 million.
According to court documents, Victor M. Dandridge, III, 53, committed three separate frauds. First, in 2006, he offered to handle the finances of his best friend’s widow and her minor children. Over the following 10 years, Dandridge diverted most of their money to bank accounts for entities he owned and controlled, using most of her money for his personal expenditures and to prop up his other failing businesses, without telling the widow. In total, Dandridge stole nearly $3.2 million from the widow. Second, in 2015, Dandridge provided false representations and omissions to Blue Ridge Bank to obtain a $300,000 line of credit. He also created fake statements for a brokerage account that was supposed to serve as collateral for the loan. Third, Dandridge embezzled over $100,000 from his fraternity alumni association, the Virginia Omicron Chapter House Association. Dandridge served as the chapter president and in 2014 refinanced their fraternity house, but diverted proceeds to his own personal bank account.
In addition to his prison sentence, Dandridge was also ordered to forfeit over $3.5 million and pay that same amount in restitution to his victims.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Jessica D. Aber prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-83.
Man Admits Assaulting Sleeping Girl on AirplaneRead the Press Release
NEWARK, N.J. – An Indian national admitted that he assaulted a girl on a flight from Seattle, Washington, to Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced today.
Vijaykumar Krishnappa, 29, pleaded guilty Nov. 8, 2017 before U.S. Magistrate Judge James B. Clark in Newark federal court to a superseding information charging him with assault in the special aircraft jurisdiction of the United States.
According to documents filed in this case and statements made in court, while on a United Airlines flight from Seattle to Newark on July 23, 2017, Krishnappa intentionally assaulted a girl who was unknown to him and seated next to him on the flight. Krishnappa admitted that while the victim was asleep, he intentionally touched her near her groin over her leggings without her consent.
Under the terms of the plea agreement, Krishnappa will be sentenced to between 30 and 90 days in prison. Sentencing is scheduled for Jan. 17, 2018.Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: John H. Yauch Esq., Newark
Logansport Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Justin Birnell, age 30, of Logansport, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for being a felon in possession of a firearm.
Birnell was sentenced to 85 months imprisonment followed by 1 year of supervised release.
According to documents in this case, on February 19, 2017 Birnell knowingly possessed several firearms and ammunition in Logansport, Indiana after being convicted of a crime punishable by a term of imprisonment of more than one year.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being handled by Assistant U.S. Attorney Frank E. Schaffer.
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Little Eagle Man Convicted of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that Chavez Spotted Horse, age 40, of Little Eagle, South Dakota, was found guilty of Receipt of Images Depicting the Sexual Exploitation of Minors and Possession of Child Pornography as a result of a federal jury trial in Aberdeen, South Dakota.
The charges carry a maximum penalty of 30 years in custody and/or a $500,000 fine, life of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Spotted Horse was indicted by a federal grand jury on March 15, 2017.
The convictions stem from the execution of a search warrant on November 3, 2015, at the home of the defendant in Little Eagle. Seized during this search were multiple computers, hard drives, and other electronic devices. Analysis discovered images of child pornography on three separate hard drives, located within two computers. Also discovered were tools and programs designed to erase the images and hide the IP address of the defendant as he viewed images of child pornography.
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security Homeland Security Investigations, the North Dakota Crime Bureau’s Internet Crimes Against Children Task Force, the South Dakota Division of Criminal Investigation-Internet Crimes Against Children Task Force, and the BIA-OJS Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for January 4, 2018. Spotted Horse was remanded to the custody of the U.S. Marshals Service.
Lebanese National Indicted for CybercrimesRead the Press Release
Jackson, Miss – Rani Bin Muhammad Qubaysi, 29, of Beirut, Lebanon, has been charged in a two-count federal indictment with knowingly transmitting a program, information, code, or command causing damage to a protected computer, and extorting money by threatening to damage a protected computer, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
According to the indictment, Qubaysi, a Lebanese national, executed a distributed denial of service ("DDoS") attack on a Ridgeland, Mississippi business. Qubaysi utilized a computer in Beirut, Lebanon to extort payments from the business while conducting computer attacks to interfere with their computer business and operations.
If convicted on all charges, Qubaysi faces a maximum penalty of 10 years in prison and a $250,000 fine. The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Gregory Kennedy.
The public is reminded that a criminal indictment is a formal charge against a defendant. It is merely an accusation and the defendant is presumed innocent unless and until proven guilty in a court of law.
Laurel Man Sentenced to Prison for Stealing Veterans BenefitsRead the Press Release
Jackson, Miss. - Gregory Donald Myrick, 50, of Laurel, Mississippi, was sentenced today by U.S. District Judge Daniel P. Jordan, to thirteen months in federal prison, followed by three years of supervised release, for theft of government funds, announced U. S. Attorney Mike Hurst and Special Agent in Charge James Werner of the U.S. Department of Veterans Affairs – Office of Inspector General. Myrick was also ordered to pay restitution in the amount of $143,106.00.
Myrick pled guilty on July 31, 2017, to a criminal indictment charging him with theft of government funds. Myrick’s grandfather, an Army veteran, received U.S. Department of Veterans Affairs benefits for his service in the United States Army. After his grandfather passed away in 2008, Myrick continued to receive the deceased veteran’s checks, which were electronically deposited into a bank account the two men shared. From May 2008, through May 2015, Myrick fraudulently received and used for his personal gain a sum of $143,106.00 in veterans disbursements to which he was not entitled.
The investigation in this case was led by Special Agent Gwendolyn McCleave of the U.S. Department of Veterans Affairs – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Mary Helen Wall.
Justice Department Sues Northwest Trustee Services, Inc. of Bellevue, Washington for Illegally Foreclosing on Homes of at least 28 ServicemembersRead the Press Release
The U.S. Department of Justice today filed a lawsuit in U.S. District Court for the Western District of Washington, alleging that Northwest Trustee Services, Inc. (“Northwest”) violated the Servicemembers Civil Relief Act (“SCRA”). The complaint alleges that since 2010, Northwest completed foreclosures on at least 28 homes owned by servicemembers without obtaining the required court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of active military service.
The Department of Justice launched an investigation into Northwest’s practices after United States Marine veteran Jacob McGreevey of Vancouver, Washington submitted a complaint to the department’s Servicemembers and Veterans Initiative in May 2016. Northwest had foreclosed on McGreevey’s home in August 2010, less than two months after he was released from active duty in Operation Iraqi Freedom. McGreevey sued both PHH Mortgage (his mortgage servicer) and Northwest in 2016, but a U.S. District Court Judge accepted PHH and Northwest’s argument that McGreevy had waited too long to file his case, and dismissed the case on that basis. The department’s investigation revealed that, in addition to McGreevey, NWTS had foreclosed on other homes of SCRA-protected servicemembers in violation of the SCRA since 2010.
“The loss of a home is a devastating blow for anyone – but far worse for active duty service members often called to war zones far from Western Washington,” said U.S. Attorney Annette L. Hayes. “Our investigation revealed that Northwest Trustee Services repeatedly failed to comply with laws that are meant to ensure our servicemembers do not have to fight a two front war – one on behalf of all of us, and the other against illegal foreclosures. My office will continue to work closely with our colleagues in the Civil Rights Division in Washington, D.C. to protect Western Washington service members from this kind of misconduct.”
“As we reflect this Veterans Day on the great debt we owe to those who have fought so hard for our freedom, we also reaffirm our commitment to protecting the rights of those who serve,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “Our men and women in uniform make immense personal sacrifices to keep our country safe. Losing their home to an unlawful foreclosure should not be one of them.”
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,788 for the first offense and $121,577 for each subsequent offense. The department will also seek injunctive relief to prevent future foreclosures that violate the SCRA.
Northwest Trustee Services is based in Bellevue, Washington and describes itself as a full-service trustee company providing foreclosure services to mortgage lenders in the Western United States. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
This case is being jointly handled by Assistant Attorney J. Michael Diaz of the United States Attorney’s Office for the Western District of Washington and Trial Attorney Alan Martinson of the Civil Rights Division for the U.S. Department of Justice.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices. Since 2011, the department has obtained over $450 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Justice Department Sues Northwest Trustee Services, Inc. in Bellevue, Washington, for Illegally Foreclosing on Homes of at Least 28 ServicemembersRead the Press Release
The U.S. Department of Justice today filed a lawsuit in U.S. District Court for the Western District of Washington, alleging that Northwest Trustee Services, Inc. (Northwest) violated the Servicemembers Civil Relief Act (SCRA). The complaint alleges that since 2010, Northwest completed foreclosures on at least 28 homes owned by servicemembers without obtaining the required court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of military service.
The department launched an investigation into Northwest’s practices after United States Marine veteran Jacob McGreevey of Vancouver, Washington, submitted a complaint to the department’s Servicemembers and Veterans Initiative in May 2016. Northwest had foreclosed on McGreevey’s home in August 2010, less than two months after he was released from active duty in Operation Iraqi Freedom. McGreevey sued both PHH Mortgage (his mortgage servicer) and Northwest in 2016, but a U.S. District Court Judge accepted PHH and Northwest’s argument that McGreevy had waited too long to file his case, and dismissed the case on that basis. The department’s investigation revealed that, in addition to McGreevey, NWTS had foreclosed on other homes of SCRA-protected servicemembers in violation of the SCRA since 2010.
“As we reflect this Veterans Day on the great debt we owe to those who have fought so hard for our freedom, we also reaffirm our commitment to protecting the rights of those who serve,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “Our men and women in uniform make immense personal sacrifices to keep our country safe. Losing their home to an unlawful foreclosure should not be one of them.”
“The loss of a home is a devastating blow for anyone – but far worse for active duty service members often called to war zones far from Western Washington,” said U.S. Attorney Annette L. Hayes. “Our investigation revealed that Northwest Trustee Services repeatedly failed to comply with laws that are meant to ensure our service members do not have to fight a two front war – one on behalf of all of us, and the other against illegal foreclosures. My office will continue to work closely with our colleagues in the Civil Rights Division in Washington, D.C. to protect Western Washington service members from this kind of misconduct.”
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,788 for the first offense and $121,577 for each subsequent offense. The department will also seek injunctive relief to prevent future foreclosures that violate the SCRA.
Northwest Trustee Services is based in Bellevue, Washington, and describes itself as a full-service trustee company providing foreclosure services to mortgage lenders in the Western United States. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
This case is being jointly handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Washington.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices. Since 2011, the department has obtained over $450 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Judge Finds Two-Time Convicted Sex Offender Guilty of Child Sex CrimesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that U.S. District Judge James S. Moody, Jr. has found Clayton Junior Thornburg (55, Iuka, Mississippi) guilty of attempted enticement of a minor, attempted transfer of obscene material to a minor, transportation of child pornography, and enhanced penalties for sex offenders. He faces a mandatory minimum of 25 years, up to life, in federal prison. His sentencing hearing is scheduled for February 1, 2018.
According to evidence presented at trial, between August and November 2015, Thornburg communicated online with an undercover agent who he believed to be a 13-year-old girl. He repeatedly expressed explicit interest in having sex with the “child,” and he sent multiple pornographic images and videos in attempts to illustrate what “it’s like for a young girl to have sex.” Thornburg is a two-time convicted sex offender and was on probation in Illinois for possession of child pornography at the time of the offenses in this case.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Stacie B. Harris.
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.
Jefferson County Felon Guilty of Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A 35-year-old Beaumont, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Michael Anthony Victoria pleaded guilty to being a felon in possession of a firearm today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, on Dec. 10, 2016, Victoria was arrested and charged with being a felon in possession of a firearm and ammunition. As a convicted felon, Victoria is prohibited by federal law from owning or possessing firearms or ammunition. Victoria was indicted by a federal grand jury on July 6, 2017 and charged with federal firearms violations.
Under federal statutes, Victoria faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Japanese Steakhouse Owners Plead Guilty to Harboring Undocumented AliensRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Xiu Rong Liu (43) and Liang Wu Yang (44), both of Jacksonville, have pleaded guilty to harboring undocumented aliens for commercial advantage and private financial gain. They each face a maximum penalty of 10 years in federal prison. A sentencing date has not yet been scheduled.
Liu and Yang were charged on July 31, 2017.
According to court documents, Liu and Yang are husband and wife and operated the Fujiyama Japanese Steakhouse and Sushi Lounge in Jacksonville. On July 6, 2017, U.S. Homeland Security Investigations agents went to a residence in Jacksonville owned by Liu and Yang as part of an unrelated immigration investigation and encountered several people living there. The agents observed mattresses on the floor of the formal dining room, which had been converted into a makeshift bedroom. Further investigation revealed that all of the people who lived at the residence, except one, were undocumented aliens from Indonesia and Guatemala, that they all lived at the house rent free, and that they worked at the Fujiyama restaurant. Yang provided some of the workers with rides between the residence and the restaurant.
Under federal law, an employer is required to complete an Enforcement Employment Eligibility Verification Form (I-9) verifying that an employee is lawfully permitted to work in the United States. Liu and Yang did not complete the form certifying the aliens. The aliens were paid in cash and Liu and Yang did not withhold taxes and other payments from the workers’ wages and did not pay the employer’s portion of these payments to government authorities. They also did not report the workers to state revenue authorities as required under Florida law, ensuring the collection of the proper amount of unemployment compensation tax.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
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 Johnston in Great Falls on November 8, 2017 and entering pleas of Not Guilty were:
- BRIAN WALTER WEBER, a 41-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute controlled substances, and possession with intent to distribute controlled substances. If convicted of the most serious charge contained in the indictment, WEBER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-76
Appearing before U.S. Magistrate Lynch in Missoula on November 8, 2017 and entering pleas of Not Guilty were:
- JASON MAXWELL MEHL, a 42-year-old resident of Missoula, appeared on charges of conspiracy to distribute heroin, and possession with intent to distribute heroin. If convicted of the most serious charge contained in the indictment, MEHL faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Montana Regional Violent Crime Task Force and the Federal Bureau of Investigation. PACER Case Reference. 17-29
Appearing before U.S. Magistrate Cavan in Billings on November 7, 2017 and entering pleas of Not Guilty were:
- DONALD FRIEDLICH MILLS III, a 33-year-old resident of Billings, appeared on charges of tampering with consumer products, and acquiring fentanyl by misrepresentation, fraud, forgery, and deception. If convicted of the most serious charge contained in the indictment, MILLS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 17-120
- MIGUEL MORALES, a 25-year-old resident of San Jose, California, 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, MORALES 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. 17-108
Appearing before U.S. Magistrate Johnston in Great Falls on November 7, 2017 and entering pleas of Not Guilty were:
- CODY SWAN JACKSON, a 39-year-old resident of Browning, appeared on charges of involuntary manslaughter and attempted witness tampering. If convicted of the most serious charge contained in the indictment, JACKSON faces 20 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. 17-73
Appearing before U.S. Magistrate Cavan in Billings on November 6, 2017 and entering pleas of Not Guilty were:
- BRIAN ALBERT BENTZ, a 36-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, BENTZ faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-116
- CHARLES JESSE SANCHEZ, JR., a 52-year-old resident of Billings, 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, SANCHEZ 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. 17-121
Appearing before U.S. Magistrate Cavan in Billings on November 3, 2017 and entering pleas of Not Guilty were:
- MICHAEL CHAVEZ, JR., a 64-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, CHAVEZ faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-122
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.
Hartford Man Sentenced to 34 Months in Federal Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that COREY MAPP, also known as “Fresh,” 32, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 34 months of imprisonment, followed by three years of supervised release, for firearm possession and drug distribution offenses.
According to court documents and statements made in court, on May 12, 2016, Hartford Police, who were patrolling the Barbour Street area of Hartford in response to multiple incidents of shots fired the previous day, attempted to stop MAPP’s car as it departed MAPP’s Taylor Drive residence. Officers had observed that the car did not have a front license plate. The car fled at a high rate of speed. Later that evening, officers located the car, a search of which revealed a 9mm pistol with a high capacity magazine loaded with 17 rounds of ammunition. A search of MAPP’s residence also revealed approximately 28 grams of cocaine, narcotics packaging materials, a .40 caliber bullet, and approximately $2,800 in cash.
MAPP’s criminal history includes felony convictions.
MAPP has been detained since his arrest on May 13, 2016. On June 26, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon, and one count of possession with intent to distribute cocaine.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrisburg Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jimmy Jivens, age 42, of Harrisburg, Pennsylvania, was indicted on November 8, 2017, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Jivens possessed with the intent to distribute crack cocaine on March 23, 2017, in Harrisburg. The indictment also alleges that Jivens unlawfully possessed two firearms (.357 Ruger revolver and AKS 7.62 rifle) and ammunition as a previously convicted felon and possessed the firearms in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Department and is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is a lifetime term of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Guatemalan National Sentenced to 240 Months in Prison for Trafficking over One Ton of CocaineRead the Press Release
On November 8, 2017, a Guatemalan national was sentenced to 240 months in prison by United States District Judge Robert N. Scola, Jr. for trafficking over one ton of cocaine.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
The trial evidence showed that defendant Santos Gonzales-Cahvec, 38, of Guatemala, assisted in the transportation of over one ton of cocaine from Colombia destined for Mexico before being intercepted by the U.S. Coast Guard approximately 382 nautical miles off the Pacific coast from the Guatemalan/Mexican border. Mexico is a known transit zone through which Mexican drug traffickers smuggle cocaine into the United States and onto Europe. Gonzales-Cahvec testified at trial and claimed to have been abducted by drug traffickers while visiting in Cali, Colombia and forced to participate in transporting what he later learned to be cocaine. Government witnesses told the jury that Gonzales-Cahvec was sent from Guatemala to Colombia by the Mexican drug Cartel to arrange for the transfer of the narcotics from the vessel to a Mexican vessel for delivery of the cocaine to Cartel members in Mexico.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Mr. Greenberg commended the interdiction efforts of the U.S. Coast Guard and the investigative efforts of ICE-HSI. The case was prosecuted by Assistant U.S. Attorney Scott Behnke.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guatemalan National Charged with Illegal Re-entry After DeportationRead the Press Release
Domingo Ajanel-Box, a/k/a “Diego Hernandez-Perez,” of Guatemala, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 25, 2017, Ajanel-Box, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about April 12, 2000, June 9, 2000, March 14, 2002, September 16, 2004, August 27, 2005, and December 28, 2011.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Jury indicts nine Bloods Street gang members for several violent robberiesRead the Press Release
DALLAS — A federal grand jury returned a eleven-count superseding indictment yesterday charging nine men with various violent offenses stemming from several armed robberies in North Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Yesterday’s indictment supersedes the August 2017 indictment by adding four defendants and additional robbery offenses. The following defendants, mostly from Cedar Hill, Texas, are charged with at least one count of interference with commerce by robbery:
Charles Lampkins, aka “K3” and “Kc,” 20
Justin Gilbert, aka “Slim,” 21
Jahad Givens, aka “Had,” 21
Terance Ross Johnson, aka “TJ,” 21
Jaala Dill, 19, of Dallas
Darius Devvion Hinton, aka “Stanka,” 20
Billterious Dominique Lewis, aka “Bill T,” 21
Xavion Mitchell George, 23
Joel Louis Davis, 20
The defendants are scheduled to be arraigned later next week.
According to documents filed in the case, between October 2016 and May 2017, the defendants, led by Lampkin, committed a series of at least seven and up to forty robberies at various motels, hotels, and other commercial establishments throughout the Dallas-Fort Worth metroplex. The robbery crew performed surveillance of victims and targeted locations and utilized firearms to intimidate their victims, often pointing guns at the heads of tellers and cashiers during the robberies.
The robbers often disguised themselves during the robberies by wearing dark clothes, hoodies, and other items meant to conceal their true identity, including a distinguishable fake blue beard connected to a stocking cap.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each interference with commerce by robbery count in the indictment carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Lampkins is also charged with one count of using, carrying, brandishing, and discharging a firearm in furtherance of a crime of violence. The firearm count carries a maximum statutory penalty of life in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigations, Plano Police Department, Carrollton Police Department, Addison Police Department, Farmers Branch Police Department, Grand Prairie Police Department, Arlington Police Department, Lewisville Police Department, Sulphur Springs Police Department, Dallas Police Department, and Cedar Hill Police Department. Assistant U.S. Attorney P.J. Meitl in charge of the prosecution.
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Garbage Company Executive Charles B. "Chuck"Rizzo Pleads Guilty to Bribery and FraudRead the Press Release
The former CEO of garbage hauler Rizzo Environmental Services (RES), pleaded guilty today to conspiring to commit bribery and wire fraud, in connection with millions of dollars of municipal garbage contracts in Macomb County and with the embezzlement of hundreds of thousands of dollars from RES, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
Charles B. “Chuck” Rizzo, 46, of Bloomfield Hills, pleaded guilty before United States District Judge Robert H. Cleland in Port Huron, Michigan.
Rizzo admitted at the plea hearing that he conspired to pay bribes to Clinton Township Trustee Dean Reynolds and Macomb Township Trustee Clifford Freitas in order to secure and maintain favorable municipal garbage contracts for RES. Rizzo admitted giving Reynolds over $50,000 in cash bribes, plus free legal services in order to get a garbage contract extension from Clinton Township. He also admitted to offering to pay Freitas a bribe of $35,000, plus a salary increase, if Freitas voted to put the RES garbage bill on the Macomb Township water bill, which would reduce RES’s cost of doing business.
Besides pleading guilty to bribery, Rizzo also pleaded guilty to conspiring to commit wire fraud. Rizzo admitted to embezzling hundreds of thousands of dollars from RES while Rizzo served as the CEO of the company. The fraud conspiracy took place between 2014 and 2016, when the majority owner of RES was a New York based private equity firm. During the conspiracy, Rizzo used a variety of schemes to steal money from RES for his own enrichment. Rizzo used a fake legal settlement agreement, fraudulent consulting deals, cash kickbacks, shell companies, and methods to defraud the other owners of RES, who owned over 80% of the company, while Rizzo owned a small minority share. As one part of the embezzlement scheme, Rizzo received weekly envelopes containing thousands of dollars in cash kickbacks from a company that submitted fraudulently inflated invoices to RES.
The Rule 11 Plea Agreement provides that the sentencing guideline range that Rizzo faces at sentencing based on his criminal activity is 168-210 months, with a statutory maximum of ten years in prison.
As part of the plea today, Rizzo agreed to forfeit $4 million to the United States government. This money represents the proceeds of Rizzo’s criminal activity in securing municipal garbage contracts by paying bribes and embezzling money.
Each of the two conspiracy charges carries a maximum sentence of 5 years imprisonment and a fine of $250,000. Because of the charges to which he pleaded guilty, Rizzo faces a maximum of 10 years in prison.
Acting United States Attorney Lemisch said, “The plea today demonstrates that bribe payers face significant penalties for spreading corruption through municipal government—penalties just as severe as those faced by the public officials who take the bribes.”
"The actions of Mr. Rizzo and others implicated in this wide ranging Macomb County corruption investigation erodes our trust and confidence in public officials" said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "Today's guilty plea represents another significant step towards reinforcing to the public that honest government is essential to our way of life and the FBI and our partners will continue to prioritize the prosecution of both corrupt elected officials and those that would endeavor to bribe them."
“IRS - Criminal Investigation is working vigorously with our partners in the Macomb County corruption investigation,” said Special Agent in Charge Manny Muriel, IRS- Criminal Investigation. “The investigators sifted through volumes of evidence to unravel the multiple and complex schemes which this group employed to conceal the scent of their illegal activity. Today’s guilty plea is the result of the diligent work of the investigation team to hold those involved accountable.”
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, R. Michael Bullotta, and Adriana Dydell.
Fresno Man Indicted for Laser Strike on Fresno Police HelicopterRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Michael Vincent Alvarez, 32, of Fresno, charging him with aiming the beam of a laser pointer at a Fresno Police Department helicopter, U.S. Attorney Phillip A. Talbert announced.
According to court documents, it is alleged that on October 22, 2017, just after midnight, Alvarez struck a Fresno Police helicopter several times with a powerful green laser. The laser caused visual interference of the Tactical Flight Officer and disrupted an air support response to a domestic violence call. Alvarez was driving a vehicle on Highway 99 when he allegedly pointed the laser at the helicopter and tracked and struck it. When ground units were called to apprehend Alvarez, he drove through the streets of Fresno at a high rate of speed, eluding officers for several miles until he crashed into the center divider at First Street and Floradora Avenue. Following the crash, Alvarez ran into a residential area, jumping several fences until he was arrested in a backyard. A green laser pointer that officers found inside the driver side door pocket of Alvarez’s vehicle had a danger warning on it.
This case is the product of an investigation by the Federal Bureau of Investigation and Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted, Alvarez faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Bronx Men Admit to Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Four Bronx men entered guilty pleas over the last two weeks to conspiring to commit mail and wire fraud and related charges in an effort to steal over 2.8 million dollars in federal tax refunds using stolen identities, announced Acting United States Attorney Grant C. Jaquith, Shelly Binkowski, Postal Inspector in Charge, Boston Division, James D. Robnett, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (IRS-CI), and acting Chief John Anton, Town of Dewitt Police.
As part of their guilty pleas, Ronnie E. Mejia, 28, Cerrone Hall, 29, Luis Morillo, 28, and Jeffrey Carvajal, 26, all residents of the Bronx, New York, admitted that they conspired to defraud the IRS by creating and electronically filing false and fraudulent tax returns that utilized stolen identities from Puerto Rico and mailing addresses in the Syracuse area and elsewhere. The scheme fell apart on September 21, 2011 when an alert house painter in Dewitt called police when he saw a car cruising up and down the street stealing mail from residential mailboxes. Dewitt Police stopped a Toyota Camry occupied by Ronnie E. Mejia and Jeffrey Carvajal matching the description of the suspect vehicle. Dewitt Police Officers and U.S Postal Inspectors searched the vehicle and located eight un-mailed federal income tax returns that included stolen personal identification information from people who live in Puerto Rico. Dewitt Police located a second vehicle nearby occupied by Luis Morillo and Jeffrey Carvajal. A search of this vehicle located six U.S. Treasury tax refund checks stolen from residential mailboxes in Dewitt and Syracuse. In the following days, Special Agents from IRS-CI recovered over $700,000.00 in fraudulent tax refund checks obtained through the electronic filing of false and fraudulent tax returns using stolen identities from Puerto Rican residents and addresses of uninvolved persons in the Syracuse area. In all, the scheme included over 380 fraudulent tax returns seeking refunds of over 2.8 million dollars.
Cerrone Hall pled guilty on November 1, 2017, will be sentenced on March 1, 2018 and faces a sentence of up to 22 years in prison, a fine of up to $250,000.00 and three-year term of supervised release in connection with his convictions for conspiring to commit mail and wire fraud, as well as aggravated identity theft. Luis Morillo pled guilty on November 7, 2017, will be sentenced on March 2, 2018 and faces up to 20 years in prison, a fine of up to $250,000.00 and three-year term of supervised release in connection with his conviction for conspiring to commit mail and wire fraud. Ronnie Mejia pled guilty on November 9, 2017, will be sentenced on March 13, 2018 and faces a sentence of up to 24 years in prison, a fine of up to $250,000.00 and a three-year term of supervised release in connection with his convictions for conspiring to commit mail and wire fraud, as well as two counts of aggravated identity theft. Jeffrey Carvajal pled guilty on November 9, 2017, will be sentenced on March 14, 2018 and faces a sentence of up to 20 years in prison, a fine of up to $250,000.00 and three-year term of supervised release in connection with his convictions for conspiring to commit mail and wire fraud, as well as theft of government property. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Internal Revenue Service, Criminal Investigations, the United States Postal Inspection Service and the Town of Dewitt Police Department, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Former bank vice president charged with bank fraud and demanding bribes in return for loan approvalsRead the Press Release
The former vice president of a bank in Kent was charged with defrauding his employer out of at least $160,000 and demanding bribes in return for approving loans, said U.S. Attorney Justin Herdman, FBI Special Agent in Charge Stephen D. Anthony and IRS Special Agent in Charge Ryan Korner.
Steven P. McDonald, 43, of Kent, was charged in an 18-count criminal information with bank fraud, receipt of a bribe by a bank official, filing false tax returns and other charges.
McDonald was employed as a commercial loan officer and then vice president of commercial lending at Hometown Bank.
McDonald, in 2011, submitted an application for a $225,000 loan in the name of a friend, without that friend’s knowledge. McDonald directed the statements to be mailed to a post office box he controlled and withdrew approximately $223,000 to pay personal debts, according to the information.
McDonald made some payments on the loan but Hometown sustained a loss of approximately $160,000 from his conduct, according to the information.
McDonald also corruptly solicited and demanded bribes in return for approving loans for bank customers. These bribes came in the form of cashier’s checks totaling approximately $80,000 and a personal loan from a bank customer to McDonald in the amount of $165,000, according to the information.
McDonald also falsified bank records and failed to pay taxes on the income he derived from the fraud scheme, according to the information.
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.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the FBI and IRS.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former U.S.D.A. Farm Service Agency Loan Officer in Uvalde and Two Receipients Arrested and Charged in Farm Loan Fraud CaseRead the Press Release
In Del Rio, federal authorities filed a criminal complaint against three individuals for their alleged roles in a farm loan fraud scheme announced United States Attorney Richard L. Durbin, Jr.
The criminal complaint, filed this week, charges Barbara Serna Salinas, a 42-year-old former loan officer for the United States Department of Agriculture (USDA) Farm Service Agency (FSA) in Uvalde, and two loan recipients—Ruben James Valadez, age 43 of Uvalde, and Eric Torres Neira, age 43 of San Antonio--with wire fraud and making false statements on a loan application.
The complaint alleges that from May 2011 through June 2016, Serna in her official capacity issued multiple fraudulent FSA loans. Furthermore, in exchange for approving the loans, Serna accepted cash or other forms of payment from Neira and Valadez. According to the complaint, a review of USDA loans approved by Serna after 2011 identified several to Neira and Valadez, which totaled more than $150,000.
Federal authorities arrested Serna and Valadez yesterday in Uvalde, TX. Neira was taken into custody this morning in San Antonio. All three have made their initial appearances in federal court and have been released on bond pending resolution of this case.
Upon conviction, the defendants face up to 30 years in federal prison for wire fraud and up to 20 years in federal prison for making a false statement on loan application.
The United States Department of Agriculture Office of Inspector General-Investigations, with the assistance of the Federal Bureau of Investigation, conducted this investigation. Assistant United States Attorneys Goran Krnaich and Todd Keagle are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Former Richland County Recreation Commission Employee Pleads Guilty to Distribution of MethamphetamineRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that James Anthony Brown, age 39, of Columbia, entered a guilty plea today before Senior United States District Judge Joseph F. Anderson to one count of possessing with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). As a result of this plea, Brown faces a mandatory minimum of 5 years imprisonment and a possible maximum of 40 years imprisonment, followed by at least 4 years of supervised release.
Evidence presented in court established that on May 27, 2016, Richland County Deputy Sheriffs stopped Brown after deputies observed him retrieving a package, suspected of containing narcotics, from the front porch of a residence in Columbia, SC. After encountering Brown, deputies searched the package and found 11.9 pounds of marijuana. Deputies then searched Brown’s home and found a second package containing approximately 775 grams of methamphetamine (street value of approximately $20,000). This second package was addressed to Brown and had the same return address as the previous package containing 11.9 pounds of marijuana. Additionally, deputies found more marijuana, drug paraphernalia, ecstasy and an assault rifle inside of Brown’s home.
The case was investigated by the Federal Bureau of Investigation, Richland County Sheriff’s Department, South Carolina Law Enforcement Division, and the South Carolina Attorney General’s Office. Assistant United States Attorneys William C. Lewis and Alyssa L. Richardson of the Columbia office prosecuted the case.
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Former Investment Advisor Indicted for Defrauding Brentwood WomanRead the Press Release
Jay Costa Kelter, formerly known as Ignatius J. Costa, III, 48, was indicted yesterday by a federal grand jury on five counts of wire fraud, 16 counts of mail fraud, and one count of securities fraud, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
The indictment alleges that Kelter, who was affiliated with a Florida-based insurance and investment company, defrauded an elderly Brentwood, Tenn. woman out of approximately $1.4 million. Detailed allegations set forth in the indictment include that Kelter convinced the victim to open investment accounts with a discount brokerage company by falsely stating that he was employed with the discount brokerage company. Kelter routinely posed as the victim investor to conduct trades and transfer funds to accounts which he personally owned or controlled. Kelter spent thousands of the victim’s investment funds on expenditures benefitting himself and others, including purchases and payments for luxury cars such as a Mercedes, a Lamborghini and a $101,400 Bentley; and paying more than $21,000 for custom jewelry. The indictment also alleges that Kelter used some of the client funds to repay other investment clients.
If convicted, Kelter faces up to 20 years in prison on each count and up to a $5 million fine.
This case is being investigated by Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Stephanie N. Toussaint.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Former Department of Veterans Affairs Employee Indicted on Charges of Wire Fraud, Bribery and TheftRead the Press Release
A federal grand jury sitting in the District of Columbia returned an indictment yesterday charging a former Department of Veterans Affairs (VA) official with a scheme to steal benefit money for veterans in need from the VA.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
Russell M. Ware, 39, of Upper Marlboro, Maryland, was charged with four counts of wire fraud in connection with a scheme to steal more than $66,000 from the VA. Ware was also charged with one count of bribery and one count of theft of government property.
According to the indictment, between September 2013 and May 2014, Ware devised a scheme to steal more than $21,000 in VA disability benefit money, which he had wired to his own bank account. The indictment further alleges that from October 2014 to February 2015, Ware directed additional disability benefits totaling almost $46,000 to a friend, Jacqueline Crawford, 33, of Gulfport, Mississippi, who was not entitled to receive the money. Crawford then kicked back more than $13,000 to Ware, at Ware’s direction, usually through the use of Walmart2Walmart money transfers. Crawford pleaded guilty in February 2017, to an information charging her with a single count of theft of government property related to the scheme, and is awaiting sentencing.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the Department of Veterans Affairs Office of Inspector General and is being prosecuted by Trial Attorneys Richard B. Evans and Rebecca Moses of the Criminal Division’s Public Integrity Section.
Former Correctional Officer at Southwest Virginia Regional Jail in Abingdon SentencedRead the Press Release
Abingdon, VIRGINIA – A correctional officer at Southwest Virginia Regional Jail in Abingdon, who agreed to smuggle contraband items into the facility, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Justin Andrew Brown, 23, of Lebanon, Va., was sentenced today to six months in prison and six months house arrest, followed by three years of supervised release. He was forfeited $6,500. Brown previously pleaded guilty to one count of accepting a bribe as a public official, and one count of conspiring to accept a bribe as a public official.
Robert Lewis Jones, 25, also previously pleaded guilty to one count of conspiring to accept a bribe as a public official. Jones will be sentenced on November 29, 2017.
According to evidence presented at a previous hearing by Assistant United States Attorney Zachary T. Lee, Brown was a correctional officer at Southwest Virginia Regional Jail in Abingdon. In the summer of 2015, an inmate approached Brown about smuggling contraband, specifically tobacco, controlled substances and nude pictures into the jail. Following numerous discussions with the inmate, Brown agreed to smuggle controlled substances, tobacco and nude pictures into Southwest Virginia Regional Jail in exchange for $10,000 in United States currency. Law enforcement agents became aware of Brown’s plan in March of 2016. With the assistance of a cooperating witness, law enforcement arranged for a meeting between Brown and the cooperating witness at which Brown believed he would be receiving $10,000 in United States currency and various contraband items that he was to smuggle into the Southwest Virginia Regional Jail. Brown offered Jones $2,000 to “watch his back” during the meeting.
The meeting between Brown, Jones, and the cooperating witness occurred on March 22, 2016, at a restaurant in Abingdon. At the meeting, Jones and Brown took possession of the contraband items and a quantity of United States currency and Brown agreed to smuggle the contraband items into the Southwest Virginia Regional Jail facility. Shortly thereafter, law enforcement arrested both Brown and Jones.
The investigation of the case was conducted by Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Abingdon Police Department, and the Washington County Sheriff’s Department. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Former Army Official and Contractor Sentenced to 18 Months in Federal Prison for Bribery Scheme Involving Contracts at Aberdeen Proving GroundRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On November 8, 2017 United States District Judge George L. Russell III sentenced Danielle N. Kays, age 41, of Bel Air, Maryland to 18 months in federal prison for conspiracy to defraud the United States and commit bribery related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland. Judge Russell also ordered Kays pay forfeiture of $250,700. Kays' husband John Kays, age 42, of Bel Air, Maryland and Matthew Barrow, age 42, of Toledo, Ohio were also charged in the scheme, have pled guilty and are awaiting sentencing.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
In March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. John and Danielle Kays each had leadership positions related to this contract. From September 2006 through April 2011, a series of task orders for services pursuant to the contract were placed.
According to the court documents, Danielle Kays was a civilian employee who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, John Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. From June 2009 through June 2012, Danielle Kays was the Deputy Director of the Technical Management Division, and from 2012 until her resignation from government employment in October 2015, Danielle Kays was the Product Director of Common Hardware Systems. Barrow was the President and owner of MJ-6, LLC, a company which he formed in Ohio in 2008 to obtain military subcontracts. From June 2008 through August 2010, Barrow was also employed as a procurement manager by a glass company in Ohio.
According to the plea agreements, from August 2008 to June 2014, John Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying them a total of approximately $800,000. Mrs. Kays has admitted using her official position to benefit Barrow and MJ-6 during the period 2011- 2014. Specifically, the Kays used their official positions to add MJ–6 as a subcontractor acceptable to the Army, to steer potential employees for government contractors to work for MJ-6, to approve MJ-6 employees to work on various Task Orders, and to approve the pay rates, status reports, and travel reimbursements for MJ-6 employees. The indictment alleges that the Kays steered subcontracts worth approximately $21 million to MJ-6.
In order to conceal their corrupt relationship Barrow caused the glass company he worked for to enter into contracts and make payments to Transportation Logistics Services, LLC, a company incorporated by John Kays; and later made payments to the Kays in cash, which Barrow withdrew from his personal accounts and from MJ-6 accounts To conceal the scheme, John and Danielle Kays made false statements on the government ethics forms that they were required to file by failing to disclose the cash payments received from Barrow. The Kays used the cash for their personal benefit, including purchasing two new vehicles; a power boat, jewelry, a pool party at their country club, and to pay credit card bills.
Barrow later agreed to pay the Kays their corrupt money from MJ-6 disguised as employment salary.
John Kays also pled guilty and is scheduled to be sentenced December 15, 2017 at 2 p.m. Matthew Barrow is scheduled to be sentenced January 12, 2018.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys= Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning thanked the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Schenning praised Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.
Five people indicted for firearms crimesRead the Press Release
Five people were indicted for firearms crimes and, in some cases, related violations, said U.S. Attorney Justin Herdman.
Indicted are: Joey D. Wiseman, Jr., 36, of Elyria; Ryan D. Drummond, 30, of Warren; Dijoun Reed, 25, of Akron; Calvin Jones, Jr., 26, of Cleveland; Jean Claude Phillip McKenzie, 34, a citizen of Jamaica.
Wiseman on Aug. 4 had a Lorcin 9mm pistol with an obliterated serial number and ammunition, despite numerous previous convictions that made it illegal for him to have a firearm, including possession of cocaine, having weapons while under disability, improperly handling firearms in a motor vehicle and drug trafficking. Wiseman also sold cocaine on the same day, according to the indictment.
Drummond possessed a Smith and Wesson, model SD40VE, .40 caliber pistol, a Smith and Wesson, model SD40VE, .40 caliber pistol, a Remington, model 870 Express Magnum, 12 gauge shotgun and ammunition on Aug. 21, after previous convictions for possession of cocaine with a firearms specification and trafficking in cocaine, according to the indictment.
Reed on Oct. 24 possessed a Smith & Wesson, M&P, 40-caliber pistol, and ammunition despite prior convictions for tampering with evidence and having weapons while under disability that made it illegal for him to have a firearm, according to the indictment.
Jones was found on Sept. 27 to have a Colt .25-caliber handgun despite prior convictions for aggravated assault and attempted felonious assault that made it illegal for him to have a firearm, according to the indictment
McKenzie was found on Oct. 1 in possession of a SCCY 9 mm pistol in Cleveland after having been deported from the United States in 2012, McKenzie was also indicted for illegally reentering the United States.
The Wiseman case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh following an investigation by the Elyria Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The Drummond case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the ATF, the Warren Police Department and the Adult Parole Authority.
The Reed case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the ATF and the Ohio Adult Parole Authority.
The Jones case is being prosecuted by Assistant U.S. Attorney Danielle Angeli following an investigation by the Shaker Heights Police Department and the ATF.
The McKenzie case is being prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the U.S. Department of Homeland Security, Immigration and Custom Enforcement and the Cleveland Division of Police.
If convicted, the court will determine the defendant’s sentence after a 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 violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Federal Jury Convicts Andrews Electrician of a False Billing Scheme and for Failing to File Tax ReturnsRead the Press Release
In Midland, a jury yesterday afternoon convicted Andrews County electrician Randall Varian Hanks on federal charges in connection with a false billing scheme and failing to file tax returns that resulted in excess of $1.5 million loss to local businesses announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
The jury convicted the 46-year-old, who once owned and operated Sandhills Electric, Inc., of four counts of mail fraud and three counts of failure to file a tax return.
Evidence presented at trial revealed that from June 2013 to May 2016, Hanks, while working for two area oilfield services companies, generated fraudulent service tickets and invoices in excess of $1.5 million for parts and services that he fraudulently claimed to have provided to the two companies’ customers. Both oilfield service companies paid Hanks and then billed the respective customers for parts and services Hanks claimed to have provided.
Furthermore, testimony revealed that Hanks received more than the applicable threshold in personal income each year, yet failed to file income tax returns with the Internal Revenue Service for the calendar years 2013, 2014, and 2015, resulting in tax losses to the U.S. Government of nearly $500,000.
Hanks remains on bond pending sentencing. Hanks faces up to 20 years in federal prison and a $250,000 fine on each mail fraud count and up to one year in federal prison and a $25,000 fine for each failure to file a tax return count. Additionally, he may be required to forfeit property and money he acquired because of his fraudulent scheme. Sentencing is scheduled for February 13, 2018, in Midland before Senior United States District Judge Robert A. Junell.
The FBI Oilfield Theft Task Force and IRS-CI agents investigated this case.
Fairbanks Sex Offender Convicted of Receipt of Child PornographyRead the Press Release
U.S. Attorney Bryan Schroder announced today that on November 8, 2017, a federal jury in Fairbanks convicted Tommy Hanson, 54, of receipt of child pornography.
Hanson was found guilty after a three-day trial before U.S. District Judge Ralph R. Beistline of the District of Alaska. Sentencing is scheduled for January 19, 2018, in Fairbanks, Alaska. Because Hanson was previously convicted of possession of child pornography, the maximum penalty for the defendant’s conviction is not less than 15 years imprisonment and up to 30 years imprisonment, a fine of $250,000, a term of supervised release of five years to life, and a $100 special assessment.
According to evidence presented at trial, in 2007 Hanson pled guilty to the possession of child pornography and was sentenced to 96 months imprisonment. In that case, Hanson admitted to the use of newsgroup binaries to receive thousands of images of depicting child sexual exploitation, and then backing those images up to CD-ROMS.
Following his release from imprisonment in 2012, Hanson was subjected to a term of supervised release. As a condition of his release, Hanson was not to possess computers without the approval of the probation office, and if found in possession of any computers, the devices were subject to search.
United States Probation Officers searched the defendant’s home in North Pole, Alaska on October 12, 2016. During the search, the probation officers found the defendant in possession of an unauthorized computer and an external hard drive. A forensic search of the computer and hard drive by the FBI revealed thousands of images of child pornography that the defendant had downloaded between 2012 and 2016 using internet newsgroups, after his release in the prior case. The FBI discovered additional forensic evidence linking Hanson to the computer and external hard drive, such as Skype chat logs. In those Skype chat logs Hanson told a friend that he was not allowed to have computer but that he was not concerned about being searched by the “feds” given the remote location of his home.
This case was investigated by the United States Probation Office, FBI agents and analysts in Fairbanks and Anchorage, and FBI’s Electronic Device Analysis Unit in Quantico, Virginia. The case was prosecuted by Assistant United States Attorneys Adam Alexander and Kyle Reardon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Eagle Butte Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 6, 2017, by U.S. District Judge Roberto A. Lange.
Braxtyn Melecca Jo Garreau, age 22, was sentenced to 57 months in custody, followed by 3 years of supervised release, a fine of $500, forfeiture of $206, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Garreau was indicted by a federal grand jury on April 12, 2017. She pled guilty on August 15, 2017.
Between January, 2014, and April 12, 2017, Garreau knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota.
Garreau received distributable quantities of methamphetamine and distributed some of the methamphetamine in South Dakota. The individuals who provided Garreau with the methamphetamine knew that she intended to engage in further distribution. Garreau admitted that it was reasonably foreseeable to her that more than 500 grams of methamphetamine would be distributed during the course of the conspiracy.
In addition to conspiring with others to distribute methamphetamine, Garreau was arrested on February 23, 2017, with 7.8 grams of methamphetamine, drug paraphernalia, and $206 in U.S. currency in her possession, which she admitted was proceeds from the sale of methamphetamine. That money was seized by law enforcement and forfeited.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Garreau was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Harm was sentenced on November 6, 2017, by U.S. District Judge Roberto A. Lange.
Kevin Yellow Earring, age 27, was sentenced to two terms of 60 months in prison, to be served concurrently, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Yellow Earring was indicted by a federal grand jury on April 12, 2017. He pled guilty on August 15, 2017.
The conviction stems from two separate incidents that occurred in 2017. On January 19, 2017, Yellow Earring assaulted a woman with a pocketknife at a house in Eagle Butte. The woman was taken to the hospital for treatment.
On February 11, 2017, Yellow Earring assaulted another woman, at an apartment in Eagle Butte, by hitting and kicking her with his shoes on. The assault resulted in two fractured ribs. The woman was taken to the hospital for treatment.
These cases were investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the cases.
Yellow Earring was immediately turned over to the custody of the U.S. Marshals Service.
Dubuque Man Sentenced to over Three Years’ Imprisonment for Unlawfully Possessing FirearmRead the Press Release
A man who shot his brother-in-law was sentenced yesterday to over three years in federal prison.
David M. Caldwell, age 27, from Chicago, Illinois, received the prison term after a July 6, 2017, guilty plea to possession of a firearm by a drug user.
In a plea agreement, Caldwell admitted that he traveled with his brother-in-law from Chicago to a party in Dubuque, Iowa, on February 2, 2017. Caldwell brought marijuana and ecstasy pills to the party. Early the next morning, Caldwell’s brother-in-law attempted to stop an intoxicated Caldwell from driving home, causing a fight. Caldwell retrieved a revolver from his car, shot his brother-in-law through the left thigh, and drove away. Police officers stopped Caldwell in Elizabeth, Illinois, where they found the revolver hidden under a fuse panel in his car.
Caldwell was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. At the sentencing hearing, Judge Reade noted the extreme dangerousness of Caldwell’s actions. Caldwell was sentenced to 37 months’ imprisonment and a special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Caldwell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Dubuque Police Department, the Jo Daviess County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1016-LRR.
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Drug Trafficker who was Extradited from Mexico Pleads Guilty to Distributing more than 50 Kilos of MethamphetamineRead the Press Release
The leader of a dangerous drug distribution ring, who continued to run his drug operation after fleeing to Mexico, pleaded guilty today in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes. As early as 2010, JESUS ENRIQUE PALOMERA, 38, conspired with others to distribute methamphetamine in the Tacoma area. PALOMERA not only sold drugs, he sold guns as well – arranging the sale of nine guns in one day to an undercover law enforcement agent. PALOMERA faces a mandatory minimum 10 years in prison and up to life in prison when he is sentenced by U.S. District Judge Robert J. Bryan on February 9, 2018.
According to records filed in the case, following the gun sales in November 2011, PALOMERA fled to Mexico after some of his coconspirators were arrested. PALOMERA continued to run his drug operation from across the border, sometimes communicating with customers in Pierce County via Facebook. PALOMERA continued to be involved in drug distribution in 2014 and 2015. In the plea agreement, PALOMERA admits that more than 50 kilos of methamphetamine were transported at his direction from Mexico and up through California and Oregon to Washington. Highlighting the danger of the meth ring, one of the co-conspirators is missing and presumed dead after a load was seized by law enforcement.
PALOMERA was taken into custody in Mexico in June 2015 and was extradited to the United States in July 2016.
PALOMERA’s coconspirator, James E. Roberts, was sentenced to ten years in prison in December 2015. Roberts owned an auto body shop in Lakewood, Washington that was central to the drug trafficking ring.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Lakewood Police Department, the Washington Department of Corrections, the Los Angeles Police Department, the Siskiyou County Drug Task Force, the California Highway Patrol, the Oregon State Police, and the FBI. The case is being prosecuted by Assistant United States Attorneys Michael Dion and Amy Jaquette.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Julio Ernesto Gomez, 46, a Dominican national residing in Boston, was sentenced by U.S. District Court Judge George A. O’Toole to eight months in prison, two years of supervised release, and will be subject to deportation. In August 2017, Gomez pleaded guilty to one count of unlawful reentry of a deported alien.
Gomez was deported in 2004 after a federal trial in Boston in which the jury convicted him of making false statements in a passport application and using a fraudulent Social Security number. He later reentered the United States.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit prosecuted the case.
Doctor Sentenced in Multi-Million Dollar Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
A doctor was sentenced to 48 months in prison, to be followed by one year of supervised release, and was ordered to pay restitution of $2,198,520.37 for his participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office; Jimmy Patronis, Florida Chief Financial Officer; William D. Snyder, Sheriff, Martin County Sheriff's Office; George L. Dorsett, Assistant Inspector General for Investigations, Amtrak Office of Inspector General; Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB); Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO); Sarah J. Mooney, Chief, West Palm Beach Police Department; Jeffrey S. Goldman, Chief, Delray Beach Police Department; Pam Bondi, Florida Attorney General; and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG); made the announcement.
Joaquin Mendez, 52, of Miramar, previously pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1347; all in violation of Title 18, United States Code, Section 1349.
Co-defendants Kenneth Chatman, Fransesia Davis, and Michael Bonds established sober homes which were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
The co-defendants referred the sober homes’ residents who had insurance to treatment centers that purportedly offered clinical treatment services for persons suffering from alcohol and drug addiction. Defendant Chatman hired doctors, including defendant Mendez, to serve as medical directors of his treatment centers. As medical director, Mendez was purportedly responsible for evaluating patients and prescribing medically necessary treatment and testing. Instead of Mendez using his medical expertise and his individual assessments of patients to decide what type of laboratory testing was needed by each patient, co-defendant Chatman dictated the type and frequency of different types of lab testing that would be performed based upon the kickbacks and bribes that he was receiving from different clinical laboratories. Mendez facilitated this testing by signing doctor’s orders for urine drug tests and certificates of medical necessity for saliva drug tests, although Mendez had never seen some of the patients. Mendez knew that insurance claims for the medically unnecessary tests that he prescribed would be submitted to the patients’ insurance companies. When he examined treatment center patients, Mendez billed those patients’ insurance plans using procedure codes that reflected more complex and lengthier examinations than Mendez actually performed.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak-OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
District Woman Found Guilty of Felony Murder in Beating Death of Three-Year-Old SonRead the Press Release
WASHINGTON – Francis Lyles, 28, of Washington, D.C., was found guilty by a jury today of felony murder and first-degree cruelty to children in the beating death of her three-year-old son in June 2014, U.S. Attorney Jessie K. Liu announced.
Lyles was found guilty following a trial in the Superior Court of the District of Columbia. The felony murder charge carries an enhancement based on the victim’s age and the cruel, heinous nature of the crime. Lyles faces a maximum sentence of life in prison with no possibility of release. The Honorable Zoe Bush scheduled sentencing for Jan. 8, 2018.
According to the government’s evidence, on June 18, 2014, Lyles beat her three-year-old son, Xavier, for upsetting her newborn’s bouncer seat. On June 23, 2014, at about 8:30 p.m., Lyles became upset again with her son, who had been running through their apartment in Southeast Washington. She repeatedly beat him with her hands and/or fists, causing multiple bruises and a lacerated liver. She used so much force that the child’s kidney avulsed from the urethral casing. Xavier lost approximately one third of his blood from internal bleeding. He vomited and was left unattended without food, water or medical treatment for about 15 hours.
At about 11 a.m. on June 24, 2014, Lyles entered the child’s room and tried to wake him. He was not moving or breathing. Lyles first called her cousin and then called 911 for an ambulance. The District of Columbia Department of Fire and Emergency Medical Services came to the residence, and Xavier was pronounced dead in the ambulance. The District of Columbia’s Office of the Chief Medical Examiner determined that Xavier died from multiple blunt force injuries and the cause of death was homicide.
Initially, Lyles led law enforcement to believe that her boyfriend had beaten the child when she left Xavier in his care. The boyfriend lived with Lyles and her children in the apartment. For weeks, law enforcement followed her information and leads. As the investigation continued, however, the prosecution learned that, contrary to her statements, Lyles was responsible for the death of her son. Lyles’s cousin had an app which recorded all of their incoming and outgoing phone calls. Several calls were found in which the defendant admitted to having “whooped “her son on several occasions. According to the medical examiner’s office, the child had more than 70 injuries.
Lyles was arrested on Sept. 16, 2014, and has been in custody ever since.
In announcing the verdict, U.S. Attorney Liu expressed appreciation for the work the Metropolitan Police Department, U.S. Marshal’s Service, and the U.S. Secret Service. She also expressed appreciation for the assistance provided by the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences.
U.S. Attorney Liu acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Laura R. Bach, Michelle D. Jackson, Lindsey Merikas, Chrisellen Kolb, and John Mannarino; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Victim/Witness Advocates Marcia Rinker, Jennifer Clark, Karen Giannakoulias, and Tracy Owusu; Liaison and Operations Manager Linda McDonald; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Kelly Blakeney, Mia Beamon, Alesha Matthews, Meridith McGarrity, Stephanie Gilbert, and Lornce Applewhite; Criminal Investigators Durand Odom, Tommy Miller, John Marsh, Melissa Matthew, Nelson Rhone, Mark Crawford, Shannon Alexis, Sharon Johnson, and Zachary McMenamin, and Litigation Technology Specialists Anisha Bhatia, Paul Howell, Jeannie Latimore-Brown, Joshua Ellen, and Leif Hickling.
Finally, she expressed appreciation for the work of Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
Department of Justice Compensates Victims of Bernard Madoff Fraud Scheme with Funds Recovered Through Asset ForfeitureRead the Press Release
The Department of Justice today announced that on Nov. 9, the Madoff Victim Fund (MVF) began its initial distribution of $772.5 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme. These funds will be sent to 24,631 victims across the globe. This distribution represents the first in a series of payments that will eventually return over $4 billion to victims as compensation for losses they suffered from the collapse of the BLMIS. The MVF has received over 65,000 petitions from victims in 136 countries.
These payments mark the single largest distribution of forfeited funds in the history of the Department’s victim compensation program.
Deputy Attorney General Rod J. Rosenstein, Acting U.S. Attorney Joon H. Kim for the Southern District of New York and Assistant Director in Charge William F. Sweeney Jr., of the FBI’s New York Field Division made the announcement.
“Thanks to civil asset forfeiture, the Department of Justice is announcing today the record-setting distribution of restitution to victims of Bernard Madoff’s notorious investment fraud scheme,” said Deputy Attorney General Rosenstein. “We have recovered billions of dollars from third parties – not Mr. Madoff – and are now returning that money to tens of thousands of victims. This is the largest restoration of forfeited property in history.”
“Bernie Madoff committed one of history’s largest and most devastating frauds,” said Acting U.S. Attorney Kim. “This Office not only prosecuted Madoff himself and others who helped perpetrate his fraud, but has remained committed to recovering money for his victims. To date, this Office has recovered more than $9 billion for the innocent victims of Madoff’s fraud, and today’s distribution of $770 million, the single largest distribution of forfeited funds in the Department’s history is part of our ongoing commitment to not only prosecute criminals but also find relief for victims.”
“No amount of money in the world could ever reverse the catastrophic effects Madoff’s historic Ponzi scheme had on individuals and businesses alike,” Assistant Director in Charge Sweeney. “But now, nearly a decade after this crime was exposed, it is our hope that victims will finally be able to see the light at the end of a long, dark tunnel.”
For decades, Bernard L. Madoff used his position as Chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle. On June 29, 2009, U.S. District Judge Denny Chin sentenced Madoff to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered Madoff to forfeit $170.799 billion as part of Madoff’s sentence.
Of the approximately $4.05 billion that will be made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case. The MVF is overseen by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.
More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected].
Department of Justice Announces Significant Tool in Prosecuting Opioid Traffickers in Emergency Scheduling of All FentanylsRead the Press Release
The Department of Justice today announced that the Drug Enforcement Administration (DEA) intends to take immediate action against the flow of illicit fentanyl analogues into this country and the alarming increase in overdose deaths linked to synthetic opioids by scheduling all fentanyl-related substances on an emergency basis.
When the DEA’s order takes effect, anyone who possesses, imports, distributes, or manufactures any illicit fentanyl analogue will be subject to criminal prosecution in the same manner as for fentanyl and other controlled substances. The action announced today will make it easier for federal prosecutors and agents to prosecute traffickers of all forms of fentanyl-related substances.
“President Trump has made it a cornerstone of his presidency to combat the deadly drug crisis in America, and today the Department of Justice is taking an important step toward halting the rising death toll caused by illicit fentanyls in the United States,” said Attorney General Jeff Sessions. “By scheduling all fentanyls, we empower our law enforcement officers and prosecutors to take swift and necessary action against those spreading these deadly poisons. I also urge the many members of Congress who clearly share our concern and alarm over fentanyl’s role in our opioid overdose epidemic to do their part by permanently scheduling these lethal substances.”
The bulk of illicit fentanyls arrive in the United States through the mail or express shipping systems, or are imported into the United States across the southwest border. Overseas chemical manufacturers, aided by illicit domestic distributors, currently attempt to evade regulatory controls by creating structural variants of fentanyl that are not directly listed under the Controlled Substances Act (CSA). Without the action announced today, prosecutors must overcome cumbersome evidentiary hurdles to secure convictions of these traffickers under the Analogue Act.
The DEA’s action is a proactive approach to minimize the potential harm of these substances with no medical or industrial use and will facilitate criminal, civil, and administrative actions against anyone trafficking in fentanyl variants. The temporary scheduling will go into effect no earlier than 30 days after the DEA publishes its notice of intent and will last up to two years, with a possibility of a one-year extension if certain conditions are met.
“Today’s action represents just one step in the ongoing fight to battle the opioid epidemic,” said DEA Acting Administrator Robert W. Patterson. “DEA is committed to using all of its tools to aggressively fight and address the opioid crisis and growing fentanyl problem plaguing the United States.”
This action is the latest in a series of aggressive and innovative actions by Attorney General Jeff Sessions and the Department of Justice to stem the opioid epidemic through support to law enforcement and public health authorities.
Delaware Man Pleads Guilty to Producing Child PornographyRead the Press Release
A Dover, Delaware man pleaded guilty today to two counts of producing child pornography before U.S. District Court Judge Gregory M. Sleet, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney David C. Weiss of the District of Delaware.
According to admissions made as part of his guilty plea, on Dec. 16, 2015, Daniel Arthur Hill, 29, was arrested by the Delaware State Police Department for solicitation of a minor. Hill met a person online who he believed was a 14-year-old girl and with whom he arranged to engage in sexual intercourse. After his arrest, law enforcement officials executed a search warrant on Hill’s electronic devices and, on Aug. 8, 2016, Hill was indicted in the U.S. District Court for the District of Delaware for enticement of a minor and for possession, production, and distribution of child pornography.
The defendant is scheduled to be sentenced at 2 p.m. on Feb. 15, 2018.
The Delaware State Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case in cooperation with the Delaware Attorney General’s Office. This case is being prosecuted by Trial Attorney Kathryn C. Furtado of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Graham Robinson of the District of Delaware.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dallas Woman Sentenced for Role in Bank Fraud ConspiracyRead the Press Release
TYLER, Texas – A 44-year-old Dallas woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Rachelle Dashner pleaded guilty on May 18, 2017, to conspiracy to commit bank fraud and was sentenced to 21 months in federal prison today by U.S. District Judge Thad Heartfield. Dashner was also ordered to pay restitution in the amount of $7,691,106.50.
According to information presented in court, in the summer of 2013, Albert Davis, 56, formerly of Richardson, Texas, and David Tayce, 67, of Lucas, Texas, approached Community Trust Bank regarding financing for iHeart Care cardiovascular surgical centers that Davis planned to develop across North Texas. The plan, as outlined by Davis, was to open multiple iHeart cardiovascular surgical centers and team up with physicians at each location who would invest in the surgical centers and refer patients to the cardiovascular practices. Over the course of the next year, Davis, Tayce, and Dashner prepared loan documents related to various iHeart Care locations in Denton, Ennis, Mesquite, and Mansfield. Davis and Dashner identified numerous physicians as guarantors in the loan documents without the physicians’ knowledge and authorization. The loan documents were submitted to Community Trust Bank, and based upon various false and fraudulent representations, Community Trust Bank funded numerous loans to iHeart. In many instances, the iHeart facilities for which financing was obtained were never built or made operational. In total, Davis, Tayce, and Dashner submitted fraudulent loan documents to Community Trust Bank and secured five fraudulent loans totaling over $7,500,000.
Davis, Tayce, David Hernon, 56, of Fishers, Ind. (formerly of Richardson, Texas), and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, were charged in a related case in the Western District of Missouri for conspiring to commit wire fraud. From 2008 to 2015, Davis and his co-conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor.
On Apr. 24, 2017, Davis, was sentenced by U.S. Chief District Judge Greg Kays in the Western District of Missouri to 12 years in federal prison. The court also ordered Davis to pay $19,151,555 in restitution to the victims of the fraud scheme.
On Apr. 25, 2017, Tayce, Hernon, Richard Bryant, and Christina Bryant were sentenced in separate appearances before Judge Kays. Tayce was sentenced to five years and six months in federal prison and ordered to pay $19,151,555 in restitution. Hernon was sentenced to four years and four months in federal prison and ordered to pay $6,487,224 in restitution. Richard and Christina Bryant were each sentenced to five years of probation and ordered to pay $8,079,197 in restitution.
In a related matter, in 2011, Davis, through his company, LBDS Holding Company, LLC, filed a civil trade secrets lawsuit against Korean-company ISOL Technology, Inc. (LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428) in the Eastern District of Texas. During the 2014 trial of the case, Davis and Hernon testified falsely about business dealings with Cerner Corporation and offered false exhibits to support LBDS’s claim of damages. At the conclusion of the trial, the jury awarded LBDS a verdict of $25 million. When the perjury was discovered, attorneys for ISOL filed an emergency motion for sanctions against LBDS. The district court vacated the verdict, dismissed LBDS’s case with prejudice, and awarded ISOL $738,706.47 in attorney’s fees.
In 2015, Davis and Hernon were charged in the Eastern District of Texas with making false declarations before court. Hernon pleaded guilty and was sentenced on June 13, 2017, to 15 months. Davis pleaded guilty on June 19, 2017, and awaits sentencing.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorney Matthew P. Wolesky of the Western District of Missouri and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas.
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Cuban man sentenced for role in fraudulent bank card conspiracyRead the Press Release
DALLAS — Roberto Carlos Puebla Saavedra, 32, originally from Cuba, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 60 months in federal prison and ordered to pay $408,596.46 in restitution for his role in a conspiracy involving fraudulent purchases in North Texas using counterfeit bank cards, announced U.S. Attorney John Parker of the Northern District of Texas.
Saavedra pleaded guilty in June 2017 to one count of conspiracy to produce, use, or traffic a counterfeit access device. He has been in custody since the time of his arrest in July 2016.
According to documents filed in the case, from at least August 2014 through July 2016, Saavedra, along with his co-defendants, obtained lists of credit and debit card numbers belonging to other individuals online. They used the card information to create counterfeit bank cards using devices to encode the cards with the fraudulently obtained account information. The defendants went to various retail stores and purchased prepaid gift cards and shopping cards with the counterfeit cards. The defendants then took those purchased prepaid gift cards and shopping cards to other stores and purchased items, including other gift cards, to further launder the illegally obtained money.
The scheme was discovered after an investigator from JPMorgan Chase observed a large volume of fraudulent transactions being made with unauthorized JPMorgan Chase debit card numbers at Walmart stores in the Dallas-Fort Worth metroplex area. JPMorgan Chase’s investigator worked with Walmart investigators to collect surveillance footage and conduct surveillance of the defendants engaging in the fraudulent transactions.
The case was investigated by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorneys Jamie L. Hoxie and Shane Read prosecuted.
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Counsel to U.S. Attorney Receives Hollenbeck AwardRead the Press Release
NEWARK, N.J. – John M. Fietkiewicz, Counsel to the U.S. Attorney for the District of New Jersey, was honored today with the Charles J. Hollenbeck Award at the N.J. Commission on Professionalism in the Law awards luncheon in Somerset.
“John has served our office with distinction and professionalism for more than three decades,” Acting U.S. Attorney William E. Fitzpatrick said. “His role in overseeing the preparation of cases for trial has been invaluable in ensuring that when our Assistant U.S. Attorneys walk into court, they are completely prepared. He embodies the highest principles of what public service is all about.”
Fietkiewicz has held a variety of positions in the U.S. Attorney’s Office since starting in October 1985. Prior to becoming a member of the U.S. Attorney’s Front Office as Counsel to the U.S. Attorney in March 2013, he was the Chief Litigation Counsel for three years, a Senior Litigation Counsel in the Special Prosecutions Division for seven years, the Deputy Chief of the Fraud Division for 11 years, and an AUSA in the Fraud Division, Criminal Division, and Appeals Division for six years. Since 2005, he has been the Office’s Professional Responsibility Officer. He created the office’s Trial Supervision Program in 2010 and has run it ever since
Fietkiewicz received his J.D., cum laude, from the Fordham University School of Law, where he was Editor-in-Chief of the Fordham Law Review. He received his B.A., magna cum laude, from Montclair State College. Prior to coming to the U.S. Attorney’s Office, he clerked for the Honorable Gerard L. Goettel, United States District Judge, Southern District of New York, and he was associated with the New York law firm of Cahill Gordon & Reindel.
The Hollenbeck award is given annually to someone who is “licensed to practice law in the state of New Jersey; employed by a governmental agency at the federal, state, county or municipal level, or by a nonprofit organization that serves the needs of the legal community; and has served with diligence, competence and dedication to the profession.” The award is named for Charles Hollenbeck who dedicated a majority of his nearly four-decade career as an attorney to improving the quality of legal services throughout the state.
Corpus Christi Man Gets Nearly 15 Years in Synthetic Drugs CaseRead the Press Release
VICTORIA, Texas – A 37-year-old resident of Corpus Christi has received a 174-month sentence for possession with intent to distribute synthetic cannabinoids and illegally possessing a semi-automatic rifle, announced Acting U.S. Attorney Abe Martinez.
James Richard Santos Jr. pleaded guilty Sept. 21, 2106.
At a hearing in Victoria federal court yesterday afternoon, U.S. District Judge Joh D. Rainey ordered Santos to prison for 174 months for the drug charge and another 120 months for being a felon in possession of a firearm. The sentences will run concurrently. Following the more than 14-year sentence, he will be on supervised release for three years.
Santos was found to be the organizer of a synthetic cannabinoid organization. The investigation revealed Santos utilized storage facilities in Corpus Christi and Houston to store the synthetic cannabinoids and would transport and distribute them in South Texas.
Santos also has multiple prior convictions. As such, he is prohibited from possessing a firearm or ammunition per federal law. However, in the course of the investigation, authorities found a Sabra Defence Model XR15 semi-automatic rifle in his possession.
While in custody, Santos continued to provide direction to others, even giving instructions to conceal the charged firearm. Further, he used violence and intimidation to control other co-conspirators.
Two others were also charged in relation to the synthetic drug enterprise. They both previously entered pleas of guilty and have been sentenced for their roles in this offense.
Santos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau Alcohol Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth prosecuted the case.
Convicted Sex Offender Pleads Guilty to Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 31-year-old Corpus Christi man has admitted he possessed child pornography, announced Acting U.S. Attorney Abe Martinez.
Adam Thomas Simington appeared before U.S. Magistrate Judge Jason B. Libby today and entered a guilty plea to one count of possession of child pornography.
The court heard that Simington was previously convicted in the state of Oklahoma for possessing child pornography and was required to register as a sex offender. Law enforcement learned he was in possession of child pornography and seized several digital devices from Simington’s residence which resulted in the discovery of more than 900 images of child pornography.
Sentencing has been set for Feb. 28, 2018, before U.S. District Judge Nelva Gonzales Ramos. At that time, Simington faces a minimum of 10 and up to 20 years in federal prison. He was permitted to remain on bond pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Convicted Felon Pleads Guilty to Possessing Firearm Discharged by Juvenile After Being Left UnattendedRead the Press Release
Anthony Patrick Sanders, 27, of Nashville, Tenn., pleaded guilty yesterday in U.S. District Court to being a convicted felon in possession of firearms, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Sanders was charged in a criminal complaint on June 14, 2017, after the accidental shooting death of 7-year old Harmony Warfield on June 6, 2017. He was indicted by a federal grand jury on July 12, 2017.
“This is another tragic example of the unintended consequences that result when persons prohibited from carrying firearms choose to ignore the law,” said U.S. Attorney Cochran. “Due to the reckless actions of a convicted felon, an innocent child lost her life. This office and our law enforcement partners will continue to relentlessly pursue those individuals responsible for inflicting violence in our public housing communities and bring the appropriate federal charges and seek harsh prison sentences. There is no parole in the federal system.”
According to court documents, in June 2016 Sanders was released from prison after being convicted of kidnapping in 2008. In or around February 2017 Sanders began frequenting the J.C. Napier Housing Development in Nashville and regularly began selling heroin in the area. Sanders was known to regularly carry a firearm when he was selling heroin in the area and he frequently stayed at 767 Lewis St.
Sanders stayed at the Lewis St. apartment on the night of June 5, 2017. He awoke the following morning and went outside, leaving a loaded pistol within easy access of anyone inside the apartment. Shortly thereafter, a juvenile in the apartment picked up the firearm and discharged the weapon, striking Harmony Warfield in the head and killing her. Sanders then re-entered the apartment and found Harmony laying on the kitchen floor with a gunshot wound to the head. He then retrieved the firearm and fled the area. Court records indicate that three other children, ages 2, 11 and 14, were in the apartment when the incident occurred.
Sanders eventually fled to a community near Columbus, Ohio where he hid the firearm, which was later recovered by ATF agents. It was also determined that Sanders had taken this firearm from an individual in May 2017, after a fight in the Cayce Homes public housing development in Nashville.
The plea agreement calls for the Sanders to receive a 10 year prison sentence, if accepted by U.S. District Judge Aleta Trauger on March 2, 2018.
This case was investigated by the ATF and the Metropolitan Nashville Police Department-Youth Services Division. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Connecticut Man Pleads Guilty to Participating in Conspiracy to Distribute Heroin and FentanylRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Anthony Swift, 32, formerly of Hartford, Connecticut , pleaded guilty to participating in a conspiracy to distribute heroin and fentanyl.
Court documents and statements in court showed that on May 23, 2016, the New Hampshire State Police conducted a traffic stop of a vehicle traveling on Interstate 95. Swift was a passenger in the vehicle. A search of the vehicle resulted in the seizure of 14.46 grams of fentanyl and 120.4 grams of heroin from a duffel bag in the trunk of the vehicle. Swift acknowledged that the drugs had been purchased in Hartford, Connecticut for distribution in Presque Isle, Maine area.
The driver of the vehicle, Emily Bragdon, 20, of Presque Isle, Maine, is scheduled for trial on January 23, 2018.
Swift’s sentencing is scheduled for February 20, 2018.
“I commend the State Police for their work in preventing this substantial amount of drugs from being distributed,” said Acting U.S. Attorney Farley. “The U.S. Attorney’s Office continues to work closely with all of our law enforcement partners to stop the sales of heroin and fentanyl in New England.”
This investigation was conducted by the New Hampshire State Police. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Coeburn Doctor Pleads Guilty to Health Care Fraud, Distributing RitalinRead the Press Release
Abingdon, VIRGINIA – A Coeburn, Virginia doctor, who prescribed Ritalin and hydrocodone to an undercover investigator without a legitimate medical purpose, pleaded guilty today to federal health care fraud and drug distribution charges, Acting United States Attorney Rick A. Mountcastle and Virginia Attorney General Mark Herring announced.
Gurcharan Singh Kanwal, 78, of Wise, Va., pleaded guilty this afternoon to one count of health care fraud and one count of distributing Ritalin and hydrocodone. As part of his plea agreement, Kanwal has also agreed to surrender his medical license and never reapply for a medical license. In addition, he has agreed to pay $472,500 in restitution to the Virginia Medicaid program.
According to evidence presented at today’s guilty plea hearing by Special Assistant United States Attorney and Assistant Attorney General M. Suzanne Kerney-Quillen, between September 19, 2016 and February 22, 2017, the defendant knowingly distributed Ritalin and hydrocodone, without a legitimate medical purpose and beyond the bounds of medical practice to an undercover investigator. Kanwal also fraudulently billed Virginia Medicaid for services provided to the investigator, which were not medically necessary or not actually received.
An investigation into Kanwal and the Coeburn Medical Clinic began after agents received complaints that controlled substances were being diverted by employees and patients of Dr. Kanwal. Agents also learned that Kanwal was believed to prescribe controlled substances without a legitimate medical purpose and outside the course of his professional practice. During the summer of 2015, the Southwest Virginia Drug Task Force began an official investigation into Kanwal. During the course of the investigation, an undercover investigator visited Kanwal’s office as a patient and obtained prescriptions from Kanwal for Ritalin and hydrocodone, without a legitimate medical purpose and beyond the bounds of medical practice.
The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit and the Southwest Virginia Drug Task Force. Agencies that provided assistance during the execution of a search warrant in this case included the City of Norton Police Department, Big Stone Gap Police Department, Coeburn Police Department, Dickenson County Sheriff’s Office, Lee County Sheriff’s Office, Scott County Sheriff’s Office, Tazewell County Drug Task Force, Virginia Department of Alcoholic Beverage Control, Virginia State Police, Wise County Commonwealth’s Attorney’s Office, Wise County Sheriff’s Office, Wise Police Department, and the Drug Enforcement Administration. Special Assistant United States Attorney and Assistant Attorney General M. Suzanne Kerney-Quillen is prosecuting the case for the United States.