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Thursday 26 October 2017
Bucyrus man indicted for child pornography crimesRead the Press Release
Wesley A. Muchow, 51, of Bucyrus, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said U.S. Attorney Justin Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Muchow knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place from Aug. 10, 2015, through Feb. 23, 2017, according to the indictment.
Muchow possessed an eMachine computer and a Dell computer, each of which contained child pornography, on Feb. 23, 2017, according to the indictment.
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 violation. 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 Michael A. Sullivan following an investigation by the Federal Bureau of Investigation, the Mansfield Police Department and the Canton Police Department.
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.
Brockton Gang Member Sentenced for Firearms PossessionRead the Press Release
BOSTON – A member of the Flameville Legend Boys gang was sentenced yesterday in federal court in Boston for illegal possession of a firearm.
Caetano Oliveira, 26, of Brockton, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 86 months in prison and three years of supervised release, during which time he is prohibited from affiliating with gang associates. In June 2017, Oliveira pleaded guilty to being a felon in possession of a firearm and ammunition.
In July 2016, law enforcement launched an investigation into a suspected Brockton drug dealer, with whom Oliveira lived. On Aug. 5, 2016, during a search of the suspect’s apartment, law enforcement seized drug trafficking paraphernalia and heroin as well as two loaded handguns – a Sig Sauer 9mm Magnum and a Taurus .40 caliber pistol – and ammunition, which were recovered in Oliveira’s bedroom. Oliveira admitted to law enforcement officers that the firearms were his.
According to court documents, Oliveira was previously convicted of several firearm and drug offenses. In 2010, Oliveira was sentenced to two 18-month jail sentences after being convicted in state court of illegal gun possession and possession with intent to distribute cocaine. In 2013, Oliveira pleaded guilty to assault with a dangerous weapon for ordering an associate to open fire on a car in which two undercover police officers were meeting with a witness, who was one of Oliveira’s rivals.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. Assistant U.S. Glenn MacKinlay, Chief of Weinreb’s Organized Crime and Gang Unit, prosecuted the case.
Brazilian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national charged with an immigration crime pleaded guilty and was sentenced today in federal court in Boston.
Henrique Ortmayer, 23, a Brazilian national residing in Boston, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Indira Talwani sentenced Ortmayer to time served (approximately five months) and three years of supervised release, with the first six months to be spent in a community residential reentry program. Ortmayer will be subject to deportation upon completion of the sentence imposed.
In 2014, Ortmayer was convicted of heroin distribution in Salem District Court. Upon completion of his sentence, Ortmayer was placed into removal proceedings, and on Nov. 16, 2015, he was deported to Brazil.
In April 2017, Ortmayer was encountered by police and arrested on open state warrants. Ortmayer’s fingerprints revealed he was in the United States illegally having been previously deported in November 2015.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Danvers Police Department assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Bradenton Man Convicted for Illegally Possessing A FirearmRead the Press Release
Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Alvoid Kennon (39, Bradenton) guilty of possessing a firearm and ammunition as a convicted felon. He faces a minimum mandatory sentence of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for January 17, 2018.
Kennon was indicted on December 15, 2016.
According to testimony and evidence presented at trial, on April 13, 2016, members of the Bradenton Police Department (BPD) were scheduled to execute a search warrant at 1106 3rd Street in Bradenton. Prior to executing the warrant, a BPD detective observed Kennon arrive at the location and park his vehicle at the residence. Kennon had an outstanding warrant for his arrest and a suspended driver’s license. Kennon walked away from the vehicle and head down the street. A few minutes later, additional detectives arrived at the location and when Kennon saw them, he attempted to flee.
After arresting Kennon on the outstanding warrant, detectives returned him to the home and recovered a loaded Glock .40-caliber pistol from the front passenger seat of the vehicle. Kennon has multiple prior felony convictions and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bradenton Police Department. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Charlie D. Connally.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety-one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Bossier City man pleads guilty to damaging Air Force property with vehicleRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Bossier City man pleaded guilty Wednesday to driving a vehicle onto Barksdale Air Force Base and damaging property.
Jeffery Jermaine Francis, 33, of Bossier City, La., pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of willful damage to property of the United States. According to the guilty plea, Francis was driving a green 2003 GMC Yukon on August 20, 2017 and struck a bollard at the West Gate of Barksdale Air Force Base. When approached and asked to place the vehicle in park, Francis instead drove onto the base. Barksdale security forces had to deploy a vehicle entrapment barrier on Barksdale Boulevard, which disabled the vehicle. He then fled the scene on foot. Security forces later discovered that the vehicle belonged to Francis’s girlfriend, and that he was driving under suspension. The estimated cost of damage to the vehicle and Barksdale property was $17,600.
Francis faces up to 10 years in prison, three years to life of supervised release, restitution and a $250,000 fine. The court set a February 1, 2018 sentencing date.
United States Air Force Police Criminal Investigations conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
Bartonsville Man and Hotel Charged with Sex and Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Faizal Bhimani, age 41, of Bartonsville, Pennsylvania, and Om Sri Sai, Inc., doing business as a hotel operator in Bartonsville, Pennsylvania, were indicted on October 24, 2017, by a federal grand jury on sex and drug trafficking charges. The case was unsealed yesterday following the arrest of Bhimani.
According to United States Attorney Bruce D. Brandler, the indictment alleges that from June 2014 to present, Bhimani, the manager of a hotel in Bartonsville, along with Om Sri Sai, Inc., facilitated and profited from drug trafficking and commercial sex induced by force, fraud, and coercion.
The government is also seeking forfeiture of all assets including real property, and the liquor license of the hotel.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Stroud Regional Police Department, and the Monroe County District Attorney’s Office Criminal Investigations Division. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Baltimore Man Convicted of Carjacking, Conspiracy and Destruction of Property Resulting in Breach at the National Security AgencyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On October 25, 2017, a federal jury convicted Dontae Small, age 43, of Baltimore, Maryland on conspiracy, carjacking, and destruction of government property, after he rammed a stolen car into a security gate at the National Security Agency in Ft. Meade, Maryland.
The verdict was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; Anne Arundel County Police Chief Tim Altomare, the National Security Agency Police and the Ft. George G. Meade Police Services Division.
According to evidence at presented at trial, on October 4, 2015, Small and his co-conspirators were riding in a white minivan in the Federal Hill neighborhood of Baltimore, looking for victims to rob. At approximately 10:09 p.m. Small texted a male co-conspirator the following message: “Get the dude cpming down da st.I parked on smoking a pipe” [sic].
Three masked co-conspirators assaulted Victim 1 on Grindall Street in the Federal Hill neighborhood of Baltimore. The carjackers pointed a silver handgun at the victim and robbed him of the keys to his car, a 2008 Acura TSX. The conspirators then took the car. On that same night, two of the conspirators approached Victims 2 and 3 a block away on Riverside Avenue, and brandished a silver handgun. The robbers obtained an iPhone phone that had fallen from Victim 3’s pocket before fleeing.
On October 7, 2015, Small drove the stolen Acura to Arundel Mills Mall in Anne Arundel County, Maryland. The Anne Arundel Police identified the car as stolen and set up surveillance. When Small returned to the vehicle and unlocked it using Victim 1’s keys, the police attempted to arrest him. Instead, Small took off over a curb in the parking lot, narrowly missing pedestrians and drove without his lights out of the Mall at a high rate of speed. The police followed and Small engaged him in a high-speed pursuit, eventually turning into Ft. Meade and then crashing the car into a security gate protecting the National Security Agency. Small then fled and hid in a nearby sewer for hours as security personnel and police attempted to find him. The NSA was closed to essential personnel for a day while the search continued. When Small emerged from the sewer the next morning, the police were able to arrest him after a brief foot chase and struggle.
Small faces a sentence of 15 years in prison for carjacking; a maximum of 10 years in prison for destruction of government property; and a maximum of five years in prison for conspiracy. Sentencing is set for 11:00 a.m. on February 6, 2018 in U.S. District Court in Baltimore.
Acting United States Attorney Stephen M. Schenning commended FBI, the Baltimore City Police Department, Baltimore City State’s Attorney’s Office, Anne Arundel County Police Department, National Security Agency Associate Directorate for Security and Counterintelligence (Office of General Counsel) and Ft. George G. Meade Police Services Division for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Riley and Sandra Wilkinson, who are prosecuting the case and NSA attorney Hillary Hellmann for her assistance in the prosecution.
Attorney General Jeff Sessions Announces Department of Justice has Settled with Plaintiff Groups Improperly Targeted by IRSRead the Press Release
Attorney General Jeff Sessions announced today that the Department of Justice has entered into settlements, pending approval by the district courts, in two cases brought by groups whose tax-exempt status was significantly delayed by the Internal Revenue Service based on inappropriate criteria. The first case, Linchpins of Liberty v. United States, comprised claims brought by 41 plaintiffs, and the second case, NorCal Tea Party Patriots v. Internal Revenue Service, was a class action suit that included 428 members. Attorney General Sessions released the following statement about the cases:
“Chief Justice John Marshall wrote 'that the power to tax involves the power to destroy … [is] not to be denied.' And it should also be without question that our First Amendment prohibits the federal government from treating groups differently based solely on their viewpoint or ideology.”
"But it is now clear that during the last Administration, the IRS began using inappropriate criteria to screen applications for 501(c) status. These criteria included names such as “Tea Party,” “Patriots,” or “9/12” or policy positions concerning government spending or taxes, education of the public to “make America a better place to live,” or statements criticizing how the country was being run. It is also clear these criteria disproportionately impacted conservative groups.”
“As a result of these criteria, the IRS transferred hundreds of applications to a specifically designated group of IRS agents for additional levels of review, questioning and delay. In many instances, the IRS then requested highly sensitive information from applicants, such as donor information, that was not needed to make a determination of tax-exempt status.”
"The IRS’s use of these criteria as a basis for heightened scrutiny was wrong and should never have occurred. It is improper for the IRS to single out groups for different treatment based on their names or ideological positions. Any entitlement to tax exemption should be based on the activities of the organization and whether they fulfill requirements of the law, not the policy positions adopted by members or the name chosen to reflect those views.”
“There is no excuse for this conduct. Hundreds of organizations were affected by these actions, and they deserve an apology from the IRS. We hope that today’s settlement makes clear that this abuse of power will not be tolerated.”[Linchpins of Liberty, et al., v. United States of America, et al., No. 1:13-cv-00777-RBW in the United States District Court for the District of Columbia]
[NorCal Tea Party Patriots v. Internal Revenue Service, et al., No. 1:13-cv-00341 in the United States District Court for the Southern District of Ohio]
Albuquerque Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Gabriel Sanchez, 29, of Albuquerque, N.M., pled guilty today in federal court to firearms charges under a plea agreement that recommends a seven-year prison sentence.
Sanchez’s co-defendant Virgal Malott, 23, also of Albuquerque, was charged by criminal complaint on Feb. 18, 2015. According to the complaint, officers of the Albuquerque Police Department (APD) arrested Malott on outstanding state felony warrants on Feb. 14, 2015. Thereafter, APD executed a state search warrant at Malott’s residence as part of an investigation into a series of armed robberies of Albuquerque-area businesses. During the search, APD found a loaded firearm, which provided the basis for a federal criminal complaint charging Malott with being a felon in possession of a firearm and ammunition that was filed on Feb. 18, 2015, by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). In June 2015, Malott was charged in an 11-count indictment with violating the Hobbs Act by robbing seven businesses engaged in interstate commerce, carjacking, using and brandishing a firearm during crimes of violence, and with being a felon in possession of a firearm. The indictment alleged that Malott committed the crimes in Bernalillo County, N.M., between Dec. 2014 and Jan. 2015.
The indictment was superseded in Aug. 2015, to add two more defendants, Sanchez and Paul Lujan, 22, also of Albuquerque, and two more charges. The superseding indictment charged the three men with conspiring to violate the Hobbs Act by robbing businesses engaged in interstate commerce in Jan. 2015, the armed robbery of five Albuquerque-area businesses, and using and brandishing firearms during crimes of violence. It also charged Malott alone with the armed robbery of two additional Albuquerque-area businesses, carjacking, and with being a felon in possession of a firearm. The superseding indictment alleged that the three men committed the crimes in Bernalillo County between Dec. 2014 and Jan. 2015.
During today’s change of plea hearing, Sanchez entered a guilty plea to Count 12 of the superseding indictment, which charged him with using and carrying a firearm during and in relation to a crime of violence. In entering the guilty plea, Sanchez admitted that on Jan. 30, 2015, he carried and brandished a firearm during the armed robbery of the Title Max Loans located at 3900 San Mateo Blvd. NE in Albuquerque.
Malott previously entered a guilty plea on Aug. 17, 2017, to three counts of the superseding indictment charging him with the armed robbery of a business engaged in interstate commerce, carjacking, and using and brandishing a firearm during a crime of violence. In entering the guilty plea, Malott admitted robbing a title loan business located in Albuquerque on Dec. 22, 2014. Malott acknowledged that he was armed when he committed the robbery, and that he pointed the firearm at the business’s three employees and threatening to kill them. Malott also admitted committing a carjacking on Jan. 19, 2015, by pointing a firearm at an individual at an Albuquerque convenience store and demanding his wallet and keys. Malott fled from the scene in the victim’s vehicle. Under the terms of his plea agreement, Malott will be sentenced to a term of 15 to 20 years of imprisonment to be followed by a term of supervised release to be determined by the court.
On Aug. 15, 2017, Lujan pled guilty to a felony information charging him with using and carrying a firearm during a crime of violence, and Lujan admitted that on June 30, 2015, he acted as the getaway driver during the armed robbery of the Loan Max Title Loan in Albuquerque. Lujan admitted that he discarded a firearm while running from the police after the robbery. Under the terms of his plea agreement, Lujan will be sentenced to 60 months of imprisonment followed by a term of supervised release to be determined by the court.
Malott was arrested in Nov. 2015, and Sanchez and Lujan were arrested in Dec. 2015. The three men remain detained pending sentencing hearings, which have yet to be scheduled.
This case was investigated by the Albuquerque office of ATF with assistance from APD and the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Rumaldo A. Armijo and David M. Walsh are prosecuting the case.
Addis Man Convicted of Stealing over $250,000 from InvestorsRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today the conviction of an Addis businessman who stole over $250,000 from investors.
On October 26, 2017, WILLIAM TODD CUTRER, age 52, of Addis, Louisiana, pled guilty to mail fraud before U.S. District Judge John W. deGravelles. As a result of his guilty plea, CUTRER faces a significant term of imprisonment, fines, restitution orders, forfeiture, and a term of supervised release following imprisonment. A sentencing date has not yet been scheduled.
As CUTRER acknowledged in court during his guilty plea, from in or about January 2014 through at least November 2016, he executed a scheme to defraud victim investors by means of materially false and fraudulent pretenses, promises, and representations. CUTRER owned and operated West Baton Rouge Credit, Inc. (“WBRC”), a Port Allen lending company that made high-interest loans to individual customers. CUTRER raised capital for WBRC by obtaining lines of credit from local banks and by personally soliciting investments from individual investors. CUTRER guaranteed to his victims that he would pay interest on their investments and that their funds could be redeemed at any time upon written notice.
Instead of using the funds as promised, CUTRER wrote checks to himself and his family members, and made interest payments to prior investors who were due interest on their principal. When CUTRER failed to make the payments he owed to his victim investors, he sent them a letter falsely claiming that because of the August 2016 flood, he was having difficulty collecting payments on WBRC’s high-interest loans. In reality, however, CUTRER had used his victims’ money to make payments to himself and his family and to other investors. As a result of his scheme, CUTRER fraudulently obtained over $250,000.
Acting U.S. Attorney Amundson stated, “Investment-related fraud is a significant danger in our community. Those who hold themselves out as investment advisors have a unique opportunity to abuse the trust that their investors have placed in them to line their own pockets. I greatly appreciate the willingness of CUTRER’s victims to come forward and make us aware of this scheme and the hard work of the investigative agencies and the prosecutor in this important prosecution.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, and the Louisiana Office of Financial Institutions. It is being prosecuted by Assistant United States Attorney Ryan Rezaei.
Wednesday 25 October 2017
York Man Sentenced to 50 Years’ Imprisonment for Child Sexual ExploitationRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Senior Judge Sylvia H. Rambo sentenced Michael Charles Clarke, 44, of York, Pennsylvania, to 600 months’ imprisonment for production, possession and transportation of child pornography, followed by 25 years of supervised release.
According to U.S. Attorney Bruce D. Brandler, this sentencing followed Clarke’s November 15, 2016, guilty plea to each of those charges, which stemmed from his sexual assault of a minor child from 2010 to 2015 on multiple occasions and included recording the abuse. Clarke was arrested by the Southwestern Regional Police Department on September 26, 2015, and charged with rape of a child and associated offenses. When Clarke’s home was searched, multiple computers, hard drives, thumb drives and cds were seized. The FBI forensically examined this evidence and discovered that Clarke had downloaded and saved child pornography images on a number of the devices. Further investigation revealed that in 2010, Clarke made recordings of another minor girl by using hidden cameras and then transported images of that child pornography across state lines, from Iowa to Pennsylvania.
At today’s sentencing proceeding, one of the victims, her mother and her brother presented heartfelt and moving statements to the Court conveying the extensive damage Clarke has caused in their lives. Members from the South Central Pennsylvania chapter of the Bikers Against Child Abuse (BACA) organization also attended the hearing to support the victim.
This case was investigated by the Federal Bureau of Investigation and the Southwestern Regional Police Department. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, 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."
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Wisconsin Man Indicted on Sex Trafficking Charges for Allegedly Transporting a Minor to Chicago to Engage in ProstitutionRead the Press Release
CHICAGO — A Wisconsin man has been indicted on federal sex trafficking charges for allegedly transporting an underage girl to Chicago from West Virginia to engage in prostitution.
A three-count indictment charges BLAKE STECKEL, 33, of Pleasant Prairie, Wisc., with sex trafficking of a minor, production of child pornography, and transporting an individual in interstate commerce for purposes of prostitution.
Steckel allegedly began communicating with the victim in July via Snapchat and text messages. Steckel purchased the girl’s plane ticket from West Virginia after promising to arrange work for her as a model or escort in the Chicago area, according to a criminal complaint and affidavit previously filed in the case. After the girl arrived in Chicago, Steckel took sexually explicit photographs of her and posted them in commercial sex advertisements on Backpage.com and ExplicitChicago.com, the complaint states. He then arranged multiple meetings for her to engage in prostitution in various hotels in the Chicago suburbs, including Schaumburg, Elk Grove, Itasca and Rosemont, according to the complaint. Steckel kept a portion of the money the girl earned performing commercial sex acts, the complaint states.
The indictment was returned Tuesday in federal court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; John P. Selleck, Acting Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation; James E. Lamkin, Chief of the Schaumburg Police Department; and Michael Nerheim, Lake County State’s Attorney. The charges are the result of a joint investigation conducted by the Chicago and Milwaukee offices of the FBI and the Schaumburg Police Department.
The government is represented by Assistant U.S. Attorney Sean J.B. Franzblau.
According to the charges, Steckel threatened to post the victim’s sexually explicit photographs on Facebook and Instagram if she refused to engage in prostitution for him. At one point the victim said she wanted to go home to West Virginia, but Steckel forced her to continue working for him, the complaint states.
Law enforcement rescued the girl in a Schaumburg hotel room on Aug. 21, 2017, after an undercover officer responded to an online posting for a “date” with the victim, the complaint states. The undercover officer engaged in a series of text messages with Steckel to set up the meeting, the complaint states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The sex trafficking count is punishable by a statutory minimum sentence of 15 years in prison and a maximum of life in prison. Production of child pornography carries a minimum prison sentence of 15 years and a maximum of 30 years. Transporting an individual for prostitution is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
White Plains Accountant Sentenced to 22 Months in Prison for $23 Million Tax Fraud SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JOSEPH CERVONE was sentenced to 22 months in prison on tax fraud charges. CERVONE plead guilty on March 29, 2017, to one count of endeavoring to obstruct and impede the due administration of the internal revenue laws and one count of subscribing to false tax returns before U.S. District Judge Nelson S. Román, who imposed today’s sentence.
According to the Information previously filed in White Plains federal court and court proceedings:
From 2009 through 2012, CERVONE, a certified public accountant with an office in White Plains, obstructed and impeded the IRS by filing false tax returns claiming more than $23 million of energy and coal credits on behalf of his clients in order to obtain tax refunds. In addition, CERVONE also filed false tax returns for the tax years 2010 and 2011 that failed to report income relating to personal expenses paid on behalf of CERVONE from funds obtained as a result of his clients’ false tax returns.
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In addition to the prison term, CERVONE, 64, of White Plains, New York, was sentenced to one year of supervised release and a $15,000 fine.
Mr. Kim praised the outstanding efforts of the Internal Revenue Service - Criminal Investigation. He also thanked U.S. Department of Justice’s Tax Division for its significant assistance in the investigation
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John P. Collins Jr. is in charge of the prosecution.
Weare Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Kenneth Bailey, 52, of Weare, New Hampshire, pleaded guilty in federal court today to six counts of distributing controlled substances.
Court filings and statements made in court showed that on five occasions in 2013, and once in 2014, a cooperating individual purchased methamphetamine or a combination of cocaine and methamphetamine from Bailey at his residence.
A sentencing hearing has been scheduled for February 1, 2018.
“Even as our state faces the serious challenge of the opioid crisis, methamphetamine also continues to pose a threat to our community,” said Acting U.S. Attorney Farley. “Using this dangerous drug can cause significant harm or death. We will continue to work closely with all of our law enforcement partners to stop the distribution illegal drugs in the Granite State.”
“The Federal Bureau of Investigation’s (FBI) Safe Streets Gang Task Force will continue to do everything it can to target individuals like Mr. Bailey who distribute dangerous narcotics and contribute to the opioid epidemic,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
The case was investigated by the FBI New Hampshire Safe Streets Gang Task Force, which is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua. This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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Virginia Man Indicted for Production and Possession of Child PornographyRead the Press Release
A Virginia man was indicted today on child pornography charges, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Rick A. Mountcastle of the Western District of Virginia.
Richard Alan Wellbeloved-Stone, 57, of Charlottesville, Virginia, was indicted in the U.S. District Court for the Western District of Virginia on three counts of production of child pornography and one count of possession of child pornography.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Charlottesville Police Department, the Virginia State Police and the Albemarle County Police Department.
This case is being prosecuted by Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Nancy Healey.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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 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.
U.S. Attorney's Office to Honor Excellence in Law Enforcement and Victim SupportRead the Press Release
CHARLESTON, W.Va. – United States Attorney Carol Casto will honor more than 60 law enforcement officers, victim advocates, and community leaders during the 2017 U.S. Attorney’s Law Enforcement and Victim Assistance Awards Ceremony on Thursday, October 26, 2017, at noon at the Robert C. Byrd United States Courthouse in Charleston.
During the ceremony, U.S. Attorney Casto will present awards for outstanding law enforcement work on major cases involving drug crime, violent crime, white collar crime and child exploitation. Other awards include Law Enforcement Agency of the Year, Distinguished Law Enforcement and Community Service, Law Enforcement Officer of the Year, Crime Victim Service Award, Allied Professional Award, Federal Service Awards, Volunteer for Victims Award, and the Special Courage Award.
The annual awards ceremony, hosted by the U.S. Attorney’s Office for the Southern District of West Virginia, recognizes exemplary service of federal, state, and local law enforcement officers, as well as victim advocates, criminal justice professionals, and others who have made significant contributions on behalf of the criminal justice system.
WHO: United States Attorney Carol Casto, joined by representatives from the law enforcement community, crime victim advocates, and others
WHAT: 2017 U.S. Attorney’s Law Enforcement and Victim Assistance Awards Ceremony
WHEN: Thursday, October 26, 2017, at noon
WHERE: Robert C. Byrd United States Courthouse – Fifth Floor
300 Virginia Street, East
Charleston, WV 25301*Please be advised that cameras and other recording devices will be permitted on the fifth floor of the Courthouse for the ceremony only.
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Two Men Sentenced for Their Roles in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dashawn Abrams, 27, of Denver, CO, and Damarcus Hennings, 26, of Buffalo, NY, were sentenced to 51 months in prison and 78 months in prison respectively by U.S. District Elizabeth A. Wolford. Abrams was convicted of conspiracy to possess with intent to distribute, and to distribute, marijuana, and money laundering. Hennings was convicted of conspiracy to possess with intent to distribute, and to distribute, marijuana and possession of a firearm in furtherance of a drug trafficking crime.Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between April 2015, and September 2015, the defendants conspired with Shaquata Hennings, Arthur Clark, Shahana Beaver, and Janice Humphrey, to ship, receive, and distribute more than 50 packages containing marijuana sent from Denver, Colorado, to Buffalo, New York. The defendants also conspired to send the cash proceeds from resulting marijuana sales back to their marijuana source of supply in Denver.
Shaquata Hennings, Shahana Beaver, Janice Humphrey and Arthur Clark have all been convicted.
The sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.
Two Beckley felons plead guilty to federal gun crimesRead the Press Release
BECKLEY, W.Va. – Two Beckley felons pleaded guilty today to federal gun charges, announced United States Attorney Carol Casto. Ryan Henry Guerrant, 26, entered his guilty plea to being a felon in possession of a firearm. In a separate prosecution, Clennel Pierre Cobb, 45, also pleaded guilty to being a felon in possession of a firearm.
On August 10, 2017, an officer with the Beckley Police Department conducted a traffic stop in Beckley. Guerrant, a passenger in the back seat, informed the officer that he had an Omega, Model 100, .22 caliber revolver at his feet. Guerrant later admitted to law enforcement that he possessed the gun, and that he knew he was not supposed to possess the gun because he was a convicted felon. Guerrant was prohibited from possessing any firearm because of felony convictions in Raleigh County Circuit Court for possession of a firearm by a prohibited person in 2013 and escape and attempted robbery in 2010.
In a separate prosecution, Cobb admitted that on August 12, 2016, he possessed a High Point, Model C9, 9mm pistol. Cobb was prohibited from possessing any firearm under federal law because of multiple felony convictions, including drug convictions in 2006 and 2017 in Raleigh County Circuit Court.
Guerrant and Cobb each face up to 10 years in federal prison when they are sentenced on February 7, 2018.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beckley Police Department conducted the investigations. The plea hearings were held before United States District Judge Irene C. Berger.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Two Aliens Indicted on Illegal Reentry OffensesRead the Press Release
WILMINGTON – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina announces that a federal grand jury in Wilmington has returned indictments charging ERICK TABORA-TABORA, age 36, of Honduras, and RIGOBERTO TREJO-PONCE, age 37, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted, TABORA-TABORA, found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
TREJO PONCE, found in Johnston County, is alleged to have been previously deported subsequent to a felony conviction (possession of drugs). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement Removal Operations.
Tonawanda Man Arrested on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jesus Rojas, 32, of Tonawanda, NY, was arrested and charged by criminal complaint with possession with intent to distribute, and distribution of, cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the complaint, between October 27, 2016, and October 12, 2017, the defendant sold cocaine to a confidential source working with law enforcement officers on four separate occasions. On October 23, 2017, officers executed a search warrant at Rojas’s residence on Military Road in Tonawanda and seized a quantity of marijuana.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that three previously deported aliens were indicted separately by a federal grand jury for illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Jesus Prado-Gomez, age 41, of Mexico, was previously deported from the United States in June 2014. He is alleged to have illegally re-entered the United States sometime after June 2014, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers. In May 2009, he was convicted in the Dauphin County Court of Common Pleas, Dauphin County, Pennsylvania of forgery, an offense which subjects him to enhanced penalties in the current case.
Because of Prado-Gomez’s previous conviction, under federal law he faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Rogelio Chavez-Jimenez, age 40, of Mexico, was previously deported from the United States to Mexico in June 2011. He is alleged to have illegally re-entered the United States sometime after June 2011, and was found in the United States in Perry County, Pennsylvania after eluding examination or inspection by immigration officers.
Jose Contreras-Chavez, age 25, of Mexico, was previously deported from the United States to Mexico in July 2012. He is alleged to have illegally re-entered the United States sometime after July 2012, and was found in the United States in Perry County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Chavez-Jimenez and Contreras-Chavez both face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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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Three Foreign Nationals Indicted for Being in U.S. after DeportationRead the Press Release
BIRMINGHAM – A federal grand jury today indicted three foreign nationals for being in the United States illegally after previous deportation, announced U.S. Attorney Jay E. Town and U.S. Immigration and Customs Enforcement Special Agent in Charge Ray Parmer.
Separate and unrelated indictments filed in U.S. District Court charge JESUS PREITO-ROSAS, 34, who is also known as Louis Martinez, and ADAN MIRELES-JARAMILLO, 30, both of Mexico, and PEDRO EDGARDO PORTILLO-PORTILLO, 43, of El Salvador, with illegal re-entry after deportation.
According to Preito-Rosas’ indictment, he was in Jefferson County on Sept. 26 after having been removed from the United States to Mexico in October 2011 following a conviction for an aggravated felony. The maximum penalty for that charge is 20 years in prison and a $250,000 fine.
Mireles-Jaramillo was in Jefferson Count on Sept. 18 after having been removed from the United States in December 2010 and August 2013, according to his indictment.
Portillo-Portillo was in Shelby County on Sept. 15 after having been removed from the United States in July 2015 and August 2016, according to his indictment. The maximum penalty for the charge against both Mireles-Jaramillo and Portillo-Portillo is two years in prison and a $250,000 fine.
ICE investigated the cases, which the U.S. Attorney’s Office for the Northern District of Alabama is prosecuting.
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Thirty-nine people indicted for trafficking heroin in MansfieldRead the Press Release
Thirty-nine people were indicted in federal court for their roles in two separate conspiracies to obtain large amounts of heroin, and in some cases, other drugs, from out of state and sell the drugs in Mansfield, law enforcement officials said.
Eighteen people are charged in a 41-count indictment with conspiracy to possess with intent to distribute heroin. The defendants are all from the Mansfield area unless otherwise noted. They are: Lennon Hayes, 44; Roberto Calderon, 36, of Chicago; Demond Steele, 45; Tara Jones, 29; Edward Jones, 39, of Chicago; Mazzarney Hardy, 39, of Maywood, Illinois; Michael Ginn, 28; Steve Hollins, 42; Cupree Howard, 39; Marcus Garmon, 32; Ashley Kriedman-Crider, 28; Rickell Fields, 24; Marrico King, 40; Terrance Jones, 27; Natasha Brookins, 34; James Alexander, 32; Vanness Oliver, 39, and Jacquis Mordica, 26.
In a different case, 21 people are charged in a 33-count indictment with conspiracy to possess with intent to distribute heroin, crack cocaine, cocaine and marijuana. The defendants are all from the Mansfield area unless otherwise noted. They are: Kevin Burton, 41; Antoine Jefferson, 39; Damon Slaughter, 41, of Westerville; Lewis Pinkston, Jr., 40; Brian Nowell, 44; Dorthea Burton, 34; Larry Ferguson, 41, of Louisville, Kentucky; Ericka Fortner, 27; Shadawn Smith, 25; Corey Motley, 36; Bronson Jones, 43; Deon Gamble, 34; Willie Feagin, 62; Jon Martel Jefferson, 30; Keith Maddox, 36; Amanda Huffman, 28; Michael Sloan, 60; Shantia Crawford, 27; Cardoves Haslett, 34; Shakela Williams, 23, and Joe Ware, 20.
In one conspiracy, Lennon Hayes and Edward Jones obtained large amounts of heroin from Roberto Calderon in Chicago and then sold it in the Mansfield area. This took place between June 2015 and the present, according to the indictment.
Hayes and Jones sold the heroin to other dealers, including Demond Steele, Tara Jones, Mazzzarney Hardy, Michael Ginn, Steve Hollins, Cupree Howard, Marcus Garmon, Ashley Kriedman-Crider, Rickell Fields, Marrico King, Terrance Jones, Natasha Brookins, James Alexander, Vanness Oliver and Jaquis Mordica, according to the indictment.
Members of the conspiracy used their residences in Mansfield for the purposes of storing and selling the heroin, including: 575 Crescent Ave. (Hayes and Tara Jones), 278 South Main Street (Hardy), 371 2nd Ave. and 743 Bowman Ave. (Edward Jones) and 204 Linden Road (Hollins and Cupree), according to the indictment.
Hayes, Jones and others used firearms and other weapons to protect their drug trafficking activities, according to the indictment.
In a different conspiracy, heroin, cocaine and marijuana was obtained from suppliers in Columbus and California, then resold in Mansfield and Louisville, Kentucky.
Kevin Burton obtained large amounts of cocaine from Antoine Jefferson. Burton sold the cocaine and also cooked some of it into crack cocaine. Burton and Lewis Pinkston also obtained large amounts of heroin from Damon Slaughter in Columbus, according to the indictment.
Burton sold the drugs to other dealers in the Mansfield area, including Pinkston, Brian Nowell, Dorthea Burton, Larry Ferguson, Corey Motley, Bronson Jones, Deon Gamble, Willie Feagin, Jon Martel Jefferson, Keith Maddox, Amanda Huffman, Michael Sloan, Rochelle Arrington, Shantia Crawford, Cardoves Haslett, Shakela Williams and Joe Ware, according to the indictment.
Some of the heroin and cocaine was later transported to Louisville and sold by Dorthea Burton and Larry Feguson, according to the indictment.
Members of the conspiracy used their residences in Mansfield for the purposes of storing and selling the drugs, including: 160 Reba Ave. (Burton and Fortner), 642 Johns Ave. and 461 Busch Ave. (Maddox), 708 Carol Lane (Jones), 1520 Silver Lane (Jefferson) and 35 West Arch Street (Motley), according to the indictment.
Burton, Maddox, Jefferson, Ware and others used firearms to protect their drug trafficking activities, according to the indictment.
“These groups brought heroin into Mansfield from out of state, sold it from houses in neighborhoods with families and used firearms to protect their operations,” U.S. Attorney Justin Herdman said. “Law enforcement did a tremendous job in dismantling these organizations.”
“These 39 individuals were involved in a violent drug trafficking organization right here in middle America -- Mansfield, Ohio,” said FBI Special Agent in Charge Stephen D. Anthony. “Law enforcement will continue to work together and use every tool in our tool bag to rid our communities of dangerous drugs, and firearms, and hold these criminals accountable.”
Richland County Sheriff Steve Sheldon said: “Federal and local law enforcement are working together to combat the opioid epidemic in Richland County from many fronts. This investigation focused on the ones distributing heroin and drugs which are killing people in our community.”
“The collaborative efforts between local law enforcement and our federal partners has made a significant impact on drug trafficking within our communities,” said Mansfield Police Chief Kenneth Coontz. “We plan to continue this effort by targeting more dealers polluting our community. I would also like to thank the many law enforcement agencies that assisted METRICH and the FBI in order to make this a successful operation.”
DEA Special Agent in Charge Timothy Plancon said: “Putting a stop to the efforts of this dangerous group, that was distributing large quantities of heroin and cocaine into the community, is a victory for the residents of Mansfield. In DEA, we understand the importance that drug prevention and drug treatment, play in fighting the current opioid epidemic, but we also recognize that putting a permanent dent into the supply of these poisons will help to reduce addiction rates and ultimately overdose deaths.”
If convicted, the defendant’s sentence will be determined by the court after reviewing 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 and in most cases it will be less than the maximum.
These indictments are the result of investigations by the Federal Bureau of Investigation, Drug Enforcement Administration, METRICH Enforcement Task Force, Mansfield Police Department, Richland County Sheriff’s Office and U.S. Marshal Service, with assistance from the Richland County Prosecutor’s Office. Assistant U.S. Attorney Vasile Katsaros is prosecuting the cases.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Thirteen Alleged Baltimore Drug Dealers Indicted on Federal Drug Trafficking ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland –A federal grand jury has returned a superseding indictment charging thirteen defendants with conspiring to distribute controlled substances. The superseding indictment, which was unsealed today, charges the defendants with distribution of heroin and cocaine. One defendant is also charged with possession of a firearm by a felon. One defendant is further charged with possession of a firearm in furtherance of a drug trafficking crime.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Commissioner Kevin Davis of the Baltimore Police Department.
According to the three-count indictment, in November of 2016, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Baltimore Police Department initiated an investigation into the McRae and Bagley drug trafficking organization. Between January 2012 and October 18, 2017, the organization was allegedly responsible for distributing large quantities of heroin and cocaine at an open-air drug "shop" operating near 1100 North Montford Avenue in Baltimore, Maryland.
The following defendants are charged in the indictment unsealed today:
Rodney Addison, a.k.a. “Black,” a.k.a. “Freddy,” age 39, of Baltimore, Maryland;
Deandre Anderson, a.k.a. “Meatball,” age 22, of Baltimore, Maryland;
Kurt Atkins, age 55, of Baltimore, Maryland;
Jackie Bagley, a.k.a. “Bruce,” a.k.a. “Juice,” a.k.a. “Juicy,” age 38, of Baltimore, Maryland;
Vernon Bartee, age 51, of Baltimore, Maryland;
Johntae Brown, a.k.a. “Tipp,” age 19, of Baltimore, Maryland;
Dominic Durham, a.k.a. “Nick,” age 18, of Baltimore, Maryland;
Wilbur Forrester, a.k.a. “Man Man,” a.k.a. “Dreads,” age 38; of Joppa, Maryland;
Keith Johnson, a.k.a. “Tree,” age 46, of Baltimore, Maryland;
Antonio Jones, a.k.a. “Dre,” age 23, of Baltimore, Maryland;
Andrew Manuel, a.k.a. “Low Low, age 21, of Baltimore, Maryland;
Stancil McNair, a.k.a. “Deandre,” a.k.a. “Do-do,” age 20, of Baltimore, Maryland;
Ernest McRae, a.k.a. “Rat,” a.k.a. “Man Man,” age 37, of Baltimore, Maryland.
All of the defendants face a maximum of life in prison for the drug conspiracy charge with the exception of Manuel and Durham who face a maximum of 20 years in prison. McRae faces 15 to life on the felon in possession of a firearm charge. McNair faces a minimum of 5 years in prison to run consecutive with a maximum sentence of life for the possession of a firearm in furtherance of a drug trafficking crime.
Ten defendants have been detained. The whereabouts of Wilbur Forrester, Antonio Jones, and Dominic Durham are unknown.
Anyone who may have information on the whereabouts of Forrester, Jones or Durham is asked to contact the ATF- Baltimore Field office at 1(888) ATF-TIPS.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the ATF and Baltimore City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Matthew DellaBetta and Mike Hanlon who are prosecuting the case.
Texas man sentenced to 10 years in prison for distributing methamphetamine in ShreveportRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Texas man was sentenced last week to 120 months in prison for distributing methamphetamine in the Shreveport area and possessing a firearm.
Daniel D. Garza, 26, of Laredo, Texas, was sentenced Friday by U.S. District Judge Donald E. Walter to 60 months in prison on one count of conspiracy to possess with intent to distribute methamphetamine and to 60 months in prison on one count of possession of a firearm in furtherance of a drug trafficking crime to run consecutively. He was also sentenced to five years of supervised release. According to the guilty pleas, law enforcement officers received information on November 16, 2016 that Garza was at a Shreveport hotel attempting to distribute methamphetamine. The next day, law enforcement officers saw Garza leaving the hotel in a red Ford Focus with codefendants Bart W. Rogers II, 33, and Rachel Fothergill, 35, both of Dallas, Texas. Law enforcement agents conducted a traffic stop and searched the vehicle. A blue backpack was found in the front passenger side floorboard that contained a large gallon-sized Ziploc-style baggie with three more clear baggies inside containing approximately 195 grams of methamphetamine. Additionally, a 9 mm SAR Arms semi-automatic handgun, model SAR B6P, was located in a gun holster in the backpack. The firearm was loaded and the backpack also contained an additional loaded clip. Additionally, agents found another baggie that contained approximately 79 grams of methamphetamine in the glove box and a scale.
Rogers was sentenced on September 21, 2017 to 96 months in prison and four years of supervised release for the conspiracy count. Fothergill was sentenced on October 13, 2017 to 12 months and one day in prison and three years of supervised release for the conspiracy count.
The DEA and Caddo Parish Sheriff’s Office investigated the case. Assistant U.S. Attorneys James G. Cowles Jr. and Tiffany E. Fields prosecuted the case.
Supervisory Pharmacist of New England Compounding Center Convicted of Racketeering Leading to Nationwide Fungal Meningitis OutbreakRead the Press Release
BOSTON – Glenn Chin, the supervisory pharmacist of New England Compounding Center (NECC) was convicted today by a federal jury of racketeering, racketeering conspiracy, mail fraud, and false labeling in connection with the 2012 nationwide fungal meningitis outbreak.
After a five-week trial, the jury convicted Glenn Chin, 49, of Canton, Mass., of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 30, 2018.
“Mr. Chin ran NECC’s clean room operations with depraved disregard for human lives,” said Acting U.S. Attorney William D. Weinreb. “As a licensed pharmacist, Mr. Chin took an oath to protect patients, but instead deliberately violated safety regulations, causing the largest public health crisis caused by a pharmaceutical drug in U.S. history. Time and time again, Mr. Chin made dangerous decisions: he decided to cut corners, to improperly sterilize and test drugs, to mislabel drugs, to skip cleanings and ignore contamination in the clean rooms, and to endanger patients’ lives. Now, the jury has found that Mr. Chin must be held accountable for the consequences of his decisions. I want to express my profound gratitude to the victims and survivors for supporting the five-year investigation and prosecution of this case. I also want to acknowledge the tireless commitment of the trial team, whose perseverance has brought us one step closer to a just conclusion.”
“We’ve seen the tragic impact poorly compounded drugs can have on patients. Above all else, we must continue to make protecting the public health a top priority by doing all we can to ensure that the compounded drugs that patients rely on are of high quality,” said FDA Commissioner Scott Gottlieb, M.D. “No patient should suffer harm or be put at risk because of poorly compounded drugs. The FDA will continue to prioritize implementing the Drug Quality and Security Act in a way that encourages compounders to adhere to new safeguards, and the agency will take aggressive action against those who put patients at risk by violating the law.”
“Today’s verdict holds Glenn Chin responsible for his role in one of the largest public health crises in this country’s history. Mr. Chin gambled with patients’ lives by cutting corners and ignoring the warning signs that his production methods were unsafe. Hundreds of patients were unnecessarily harmed from his reckless disregard for health and safety regulations,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “We’ll continue to keep the victims and families of this deadly outbreak in our prayers, and the FBI, along with our law enforcement partners, will do everything in our power to combat fraudulent and abusive health care practices.”
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died.
Chin manufactured the three lots of the contaminated MPA, which comprised more than 17,000 vials of medication. In doing so, Chin ignored NECC’s own drug formulation worksheets and standard operating procedures. Specifically, he sterilized the MPA substantially less than what the recipe required and failed to validate or verify the sterilization process at all. Despite knowing these deficiencies, Chin directed the MPA to be filled into thousands of vials and shipped to NECC customers nationwide. Further, as the supervising pharmacist who oversaw all of NECC’s drug compounding operations, Chin directed the shipping of drugs prior to receiving test results confirming their sterility and directed pharmacy technicians to mislabel drugs to conceal this practice. He also directed the compounding of drugs with expired ingredients, including chemotherapy drugs that had expired several years prior. Chin prioritized drug production over cleaning, directed the forging of cleaning logs, and routinely ignored mold and bacteria found inside the clean rooms. Lastly, for more than three years, Chin, along with co-conspirators, utilized a pharmacy technician whose license had been revoked by the Massachusetts Board of Pharmacy to compound highly sensitive cardiac drug solutions, and took steps to conceal the technician’s presence inside the clean room from state regulators.
“The health and safety of U.S. military members, retirees and their dependents is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “Today’s verdict demonstrates DCIS’ ongoing commitment to work with the USAO-MA and its law enforcement partners to identify, investigate and prosecute individuals who endanger the public by disregarding pharmaceutical regulations and safety protocols.”
“Today’s conviction is another important step in holding those accountable who put public health at risk.” said Special Agent in Charge Donna L. Neves, U.S. Department of Veterans Affairs, Office of Inspector General. “The VA Office of Inspector General will continue to work diligently with our law enforcement partners to ensure veterans receiving care at VA medical centers receive safe and unadulterated medications.”
“Today’s verdict in Glenn Chin's trial reflects the hard work of law enforcement agencies and the Department of Justice who are committed to keeping the American public safe,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Chin’s conviction cannot undo the harm that was caused in the nation's largest public health crisis resulting from a pharmaceutical product but it can show that those responsible will be held accountable for their actions.”
Chin faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution on each count of the racketeering, racketeering conspiracy and mail fraud charges. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations’ New York Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, U.S. Department of Defense, Office of Inspector General, Northeast Field Office; Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Weinreb’s Health Care Fraud Unit are prosecuting the case.
Suffolk County District Attorney and Chief of Investigations Indicted for Obstructing Federal Civil Rights InvestigationRead the Press Release
A four-count indictment was returned this morning by a federal grand jury in the United States District Court for the Eastern District of New York charging Thomas J. Spota, the Suffolk County District Attorney, and Christopher McPartland, the Chief of Investigations and Chief of the Government Corruption Bureau of the Suffolk County District Attorney’s Office (SCDAO), with (1) Conspiracy to Tamper with Witnesses and Obstruct an Official Proceeding, (2) Witness Tampering and Obstruction of an Official Proceeding, (3) Obstruction of Justice, and (4) Accessory After the Fact to the Deprivation of Civil Rights. The defendants are scheduled to be arraigned at 3:00 p.m. this afternoon before United States District Judge Leonard D. Wexler at the United States Courthouse in Central Islip, New York.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York (USAO-EDNY), and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Prosecutors swear oaths to pursue justice and enforce the law. Instead of upholding their oaths, these defendants allegedly abused the power of the Suffolk County District Attorney’s Office, attempted to cover up the assault of an in-custody defendant, and attempted to thwart a federal grand jury investigation,” stated Acting United States Attorney Rohde. “Abuses of power by law enforcement authorities cannot and will not be tolerated. There are serious consequences to such actions.”
“While FBI agents were working to restore justice in a civil rights investigation, District Attorney Thomas Spota and Assistant District Attorney Christopher McPartland were conspiring to obstruct it, as alleged today. The crimes they're charged with are rivaled only by the conduct they allegedly attempted to conceal. Make no mistake about it, this type of activity will not be tolerated. Today our message is clear: those seated at the highest levels of the law must still operate within its confines – there are no exceptions,” stated Assistant Director-in-Charge Sweeney.
As set forth in the indictment and a bail letter filed earlier today, on December 14, 2012, an individual (John Doe) was arrested on suspicion of burglarizing motor vehicles, including a motor vehicle issued to and possessed by Burke. Thereafter, John Doe was transported to the Fourth Precinct of the Suffolk County Police Department (SCPD), placed inside an interview room, and handcuffed to a permanent fixture inside the room. Later that day, Burke and other members of the SCPD entered the interview room and assaulted John Doe. Thereafter, John Doe confessed to the burglary of the vehicle. Initially, the Government Corruption Bureau of the SCDAO, under the supervision of defendant McPartland, who reported directly to defendant Spota, handled the prosecution of John Doe. Subsequently, John Doe alleged that his confession was involuntary because, in part, he had been assaulted by Burke, and a special prosecutor was then assigned to the prosecution.
In April 2013, the USAO-EDNY and the FBI initiated a federal grand jury investigation of the December 14, 2012 assault of John Doe. Thereafter, the scope of the federal investigation was expanded to include the investigation of obstruction and attempted obstruction of justice offenses, which investigation continued until the date of today’s indictment. On June 25, 2013, FBI special agents served members of the SCPD with federal grand jury subpoenas, and, that same day, defendants Spota and McPartland were informed of both the existence of the federal investigation and the service of the federal grand jury subpoenas, and began to attempt to obstruct that investigation.
As alleged in the indictment, between December 2012 and the present, defendants Spota and McPartland, together with others including Burke and other members of the SCPD, had numerous meetings and telephone conversations discussing the assault of John Doe, John Doe’s allegations against Burke, and the federal investigation. During those meetings and telephone conversations, defendants Spota and McPartland and Burke and other members of the SCPD agreed to conceal Burke’s role in the assault and to obstruct and attempt to obstruct the federal investigation in order to protect Burke. More particularly, defendants Spota and McPartland, Burke and others used the power of their positions with the SCDAO and SCPD to obstruct and attempt to obstruct the federal investigation by, among other means, using intimidation, threats and corrupt persuasion to pressure multiple witnesses, including co-conspirators, not to cooperate with the federal investigation, to provide false information, including false testimony under oath, and to withhold relevant information from the USAO-EDNY, FBI and the federal grand jury investigating the assault of John Doe.
Ultimately, the attempts to thwart the grand jury investigation were unsuccessful and, on February 26, 2016, Burke pleaded guilty to a deprivation of John Doe’s civil rights and conspiracy to obstruct justice. Thereafter, on November 2, 2016, United States District Judge Wexler sentenced Burke to 46 months in prison, and he currently is serving that sentence.
The charges in the indictment are merely allegations, and defendants Spota and McPartland are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara Treinis Gatz and John J. Durham are in charge of the prosecution assisted by Financial Analyst William J. Hessle.
The Defendants:
THOMAS J. SPOTA
Age: 76
Mount Sinai, New YorkCHRISTOPHER MCPARTLAND
Age: 51
Northport, New YorkE.D.N.Y. Docket No. 17-CR-587 (LDW)
Stillwater Man Sentenced to 27 Months for International Money Laundering and Steroids DistributionRead the Press Release
ALBANY, NEW YORK – Sean T. Dubanowich, age 43, of Stillwater, New York, was sentenced today to 27 months in prison for distributing steroids throughout the country and laundering his drug proceeds overseas for the purpose of acquiring more steroids to sell.
The announcement was made by Acting United States Attorney Grant C. Jaquith; James J. Hunt, Special Agent in Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA); and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, to begin following Dubanowich’s release from prison.
In pleading guilty on June 1, 2017, Dubanowich admitted that he imported anabolic steroids from Thailand and other countries, via the United States Postal Service (USPS), in 2015 and 2016. The steroids he received from overseas were commercially packaged and marketed, among other things, as Mesviron 25, Promax, DecaMax, Primoprim, Susatanon, and TestoRapid.
Dubanowich further admitted that he distributed the steroids he received to customers throughout the United States and Canada, via mailings sent through the USPS. He then used the proceeds from the drug sales to purchase more steroids from abroad. For instance, between January 1, 2015 and June 29, 2016, he sent international wire transfers totaling $105,107: $53,647 to Thailand for “electronics” and “Christmas gifts,” and $51,360 to India for “vitamins and nutritional supplies.” Dubanowich admitted that these transfers were, in fact, all payments for steroids.
This case was investigated by the DEA, USPIS, and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Michael Barnett
Southbury Hotel Agrees to Make Changes to Comply with Americans with Disabilities ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Wyndham Southbury Hotel in Southbury, Connecticut, to resolve allegations that the hotel had not been operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that the Wyndham Southbury Hotel was not accessible for individuals with physical disabilities. The hotel is in the process of making the changes required by the settlement agreement, which include significant improvements to designated accessible guest rooms, the addition of accessible public restrooms in the lobby, and the addition of parking spaces, including van accessible parking spaces, for individuals with disabilities. The hotel will continue to make improvements over the next two years.
Under federal law, private entities that own or operate “places of public accommodation,” including hotels, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Department of Justice is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Daly noted that the Wyndham Southbury Hotel’s management has worked quickly and cooperatively with the U.S. Attorney’s Office to address the ADA issues without litigation.
“The Americans with Disabilities Act ensures that individuals are able to access and enjoy the state’s hotels and other public accommodations,” stated U.S. Attorney Daly. “Our Office is committed to enforcing the ADA, which requires businesses to appropriately serve the diverse population of patrons who live, work, and visit Connecticut. We appreciate the cooperation of the management of the Wyndham Southbury Hotel and their willingness to make the necessary changes to the hotel in order to increase accessibility.”
Any member of the public who wishes to file a complaint alleging that a hotel or any other place of public accommodation in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Second York Gang Leader Sentenced to Life in PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the leader of a gang that has operated for a decade or more in the City of York was sentenced to life in prison for racketeering and drug distribution conspiracies.
According to United States Attorney Bruce D. Brandler, U.S. District Court Judge Yvette Kane imposed a sentence of life in prison on Marc Hernandez, a/k/a “Marky D,” age 32, who was identified as a leader of the “Southside” street gang as well as a member of the Bloods. When imposing sentence, Judge Kane noted Hernandez’s leadership in the gang that ravaged the community in York for over a decade, causing numerous deaths and many other victims. Judge Kane indicated that Hernandez “was the leader of an organization that destroyed a community,” a group that committed countless drive-by shootings and killings of many individuals including innocent bystanders. Judge Kane also noted that “even from jail, he continued as a leader” in the same group doing the same activities.
At the sentencing, the government presented evidence that Hernandez’s gang related activities continued from his jail cell while he awaited sentencing. Including smuggling drugs and phones into prison and attempting to order the murder of individuals outside of prison. There was also evidence introduced at sentencing that Hernandez had risen to national leadership within his set of the Bloods gang. The government asked for a life sentence and pointed to the evidence that Hernandez continued to sell drugs and participate in violent retaliation while in prison. The government argued to court that it should have no confidence that Hernandez will ever stop his violent, drug trafficking ways, as demonstrated by his ongoing criminal conduct. Judge Kane noted that Hernandez was comparable to his co-defendant, Rolando Cruz, Jr. who was sentenced to life in prison on October 3, 2017.
In November 2015, a jury convicted Hernandez of racketeering and drug trafficking conspiracies after a seven-week trial. It included over 100 witnesses called by the government, including York City Police officers and detectives, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI and gang members who had previously pleaded guilty and featured the presentation of over 500 exhibits. Among the exhibits were videos of violent incidents involving the Southside Gang, drugs, cash and property seized by police and ATF agents as part of the investigation.
The jury convicted the other 11 men who went to trial with Hernandez.
The gang, labeled by the government as a criminal enterprise, is known as Southside. It operated in southern York, centered in the area of Maple and Duke Streets. There was no formal structure but the participants included senior leaders, drug traffickers engaged in distribution and sales of narcotics, particularly crack cocaine, and “shooters,” individuals who committed acts of violence, including use of firearms on behalf of the gang and to protect its members from other gangs in York. Order was maintained through intimidation and threats and, in some cases, murder. The Southside Gang includes a group of violent drug traffickers, originally affiliated with the “Bloods,” primarily a New York-based national violent street gang.
Violence against a rival York gang, called “Parkway,” allegedly resulted in death or shootings of members of both gangs and innocent bystanders.
ATF, together with the York City Police Department and the York County District Attorney’s Office, began an intensive two-year investigation of Southside in 2012. It culminated in a September 2014 grand jury indictment of 21 individuals.
Eight of the indicted persons, including James Abney, a senior Southside leader, pleaded guilty to the racketeering conspiracy charge prior to the trial, as did seven other individuals included in the September 2014 indictment.
Many individual Southside gang members were investigated and previously prosecuted by York County law enforcement agencies on state charges. The federal prosecution aimed at dismantling the organization by exposing and attacking its continuity and leadership. The federal investigation of gang violence and drug dealing in York is continuing in full cooperation with local police and the York County District Attorney’s Office.
Overall, the jury found seven of the 12 men on trial guilty of racketeering conspiracy and conspiracy to distribute drugs, mainly cocaine base (crack) and cocaine, but including heroin in some instances. Two others were found not guilty of the racketeering charge but were found guilty of the drug distribution conspiracy count of the indictment. Three of the defendants were found not guilty of either of the conspiracy counts. The jury found all 12 defendants guilty of possession of illegal drugs with the intent to distribute. Two defendants were also charged and found guilty of, possession of firearms in furtherance of drug trafficking.
The principal defendants, specifically the most violent and those in leading roles, were found guilty of the racketeering conspiracy charges.
The individual defendants and the charges on which they were awaiting sentencing or were sentenced:
Rolando Cruz, Jr., “Mico,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 3, 2017, to life in prison.
Douglas Kelly, a/k/a “Killer,” age 39; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Roscoe Villega, a/k/a “P Shawn,” age 43; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Tyree Eatmon, a/k/a “Ree,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Maurice Atkinson, a/k/a “Mo,” age 30; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Anthony Sistrunk, a/k/a “Kanye,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Eugene Rice, a/k/a “B Mor,” age 29; drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Angel Schueg, a/k/a “Pocko,” age 28; drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Jalik Frederick, a/k/a “Murder Cat,” age 22; drug possession with intent to deliver was sentenced to 33 months in prison on June 5, 2017,
Brandon Orr, a/k/a “B Or,” age 23; drug possession with intent to deliver was sentenced to 34 months in prison on November 10, 2016,
Jabree Williams, a/k/a “Minute,” age 24; drug possession with intent to deliver was sentenced to 60 months in prison on May 15, 2017.
Southside gang members who pleaded guilty to racketeering conspiracy prior to the trial are and who are awaiting sentencing are:
James Abney, a/k/a “Doocs,” age 31.
Malik Sturdivant, a/k/a “Base,” age 25.
Jahkeem Abney, a/k/a “Foo,” age 27.
Ronald Payton, a/k/a “Ron Ron,” age 25.
Cordaress Rogers, a/k/a “Tank,” age 31.
Marquis Williams, a/k/a “Quis,” age 29.
Jerrod Brown, a/k/a “Boogie,” age 28.
Quintez Hall, a/k/a “Q,” age 25.
Richard Nolden, a/k/a “Rich,” age 27.
The case included the participation and assistance of the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorneys Michael A. Consiglio, William Houser, and Joseph Terz prosecuted the case.
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Sacaton Man Sentenced to 15 Years in Prison for Voluntary ManslaughterRead the Press Release
PHOENIX – Today, Enrique Xavier Bandin, 21, of Sacaton, Ariz., a member of the Gila River Indian Community (GRIC), was sentenced by U.S. District Judge Diane J. Humetewa to 15 years in prison. Bandin had previously pleaded guilty to voluntary manslaughter. A year ago, on Oct. 23, 2016, Bandin pistol-whipped the victim, also a GRIC member, in the head. The gun discharged, shooting the victim in the head. Bandin left the victim’s body on the side of the road in the center of Sacaton, Ariz., a half a mile from the local hospital.
The investigation in this case was conducted by the Gila River Police Department and the Arizona Department of Public Safety. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-01360-PHX-DJH
RELEASE NUMBER: 2017-105_Bandin
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
SDNY Personnel Among Those Honored at 65th Annual Attorney General AwardsRead the Press Release
Attorney General Jeff Sessions recognized 202 Department of Justice employees – including seven from the Office of the United States Attorney for the Southern District of New York (“SDNY”) who received the Department’s highest award for employee service – for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
Attorney General Jeff Sessions said: “Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law. This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women – through their dedication and commitment – has made a difference. Meeting with them and their families today, I am more confident than ever that the Department – and the safety of the American people – are in good hands.”
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that the Attorney General’s Award for Exceptional Service, the Department’s highest award for employee service, was presented to SDNY Assistant U.S. Attorneys Nola B. Heller, Sarah R. Krissoff, Matthew J. Laroche, Michael D. Maimin, Rachel Maimin, and Micah W.J. Smith, and paralegal specialist Darci Brady. This team, along with fellow award recipients ATF Special Agents Kenneth G. Crotty and Andrew J. Daher, DEA Special Agents William D. Melodick and Moises Walters, HSI Special Agent Paul H. Pasuco, and NYPD Detectives Pedro Alfonso, Paul Jeselson, and John Urena, investigated, arrested, and prosecuted more than 100 members of the violent Bronx-based Trinitarios gang. These RICO cases resulted in clearance of numerous murders and other acts of extreme violence through guilty pleas or convictions at trial. The Trinitarios cases had a direct impact on the homicide rate in the Bronx, which has declined to record-low levels in the aftermath of the initial takedown and subsequent investigation and prosecution.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Our Office serves no higher mission than helping to keep the citizens of our city safe, including from gang and gun violence. That is why we are extremely proud of those in our Office and with our law enforcement partners who received today the Attorney General’s Award for Exceptional Service, the Department's highest honor for employee service. These fine women and men were honored for their work in investigating and prosecuting the vicious and violent Trinitarios gang, including prosecutions that dismantled its leadership and took over a hundred violent gang members off the streets. Their commitment has helped make Bronx safer and has had a positive impact on the lives of New Yorkers.”
Nineteen other individuals outside the department were also honored for their work. The department will also present one posthumous award to Deputy Commander Patrick T. Carothers of the U.S. Marshals Service for exceptional heroism in the line of duty during a fugitive apprehension in Georgia last November in which Deputy Commander Carothers was mortally wounded.
Roanoke Man Sentenced on Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who trafficked large quantities of methamphetamine from Arizona into the Roanoke Valley for redistribution for resale, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Curtis Ronnie Hilton, 45, was sentenced today to a term of 220 months’ imprisonment. Hilton previously entered guilty pleas to one count of conspiracy to possess with the intent to distribute and to distribute 500 grams or more of methamphetamine and one count of being a previously convicted felon illegally in possession of a firearm. Moreover, Mr. Hilton was also found to be in violation of his supervised release. He was sentenced to an additional term of imprisonment of 60 months for that violation.
According to evidence presented at previous hearings by Assistant United States Attorney Ashley B. Neese, from at least April 2015 until June 2016, Hilton, and others, conspired to distribute methamphetamine in and around the Roanoke Valley. If this matter had gone to trial, the United States would have proven that Hilton had a source of supply in Arizona that was shipping methamphetamine to the defendant for redistribution throughout the Western District of Virginia.
Evidence would have also shown that Hilton was a large-scale distributor who directed numerous other co-conspirators to distribute the methamphetamine he was receiving upon its arrival in the Western District of Virginia. Several of them, including Brandi Doss and Joy Mason, among others, have been convicted of federal methamphetamine charges in a corresponding prosecution.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, and the Roanoke City Police Department. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Roanoke Man Sentenced for Stealing from the Railroad Retirement BoardRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who worked while receiving disability benefits from the Railroad Retirement Board, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
James Sexton, 67, was sentenced today to six months home confinement, two years’ probation, 200 hours of community service, a $100,000 fine, a $100 special assessment and restitution in the amount of $454,645. Sexton previously pleaded guilty to one count of theft of government money. The defendant has already paid in full $454,645 in restitution prior to the sentencing hearing.
According to evidence presented at a previous hearing by Assistant United States Attorney Charlene R. Day, Sexton began receiving disability benefits from the Railroad Retirement Board in 1997 and acknowledged that he was required to report any work he performed or earnings to the government. However, he admitted yesterday that he received $454,645 in Railroad Retirement Board benefits earned while working with various financial companies. Sexton’s employment with those companies was not disclosed to the Railroad Retirement Board.
The investigation of the case was conducted by the Railroad Retirement Board, Office of the Inspector General. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Removed Alien Charged with Immigration ViolationRead the Press Release
PITTSBURGH - A citizen of El Salvador has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on October 24, named Mario Nelson Reyes-Romero, age 27, of El Salvador, as the sole defendant.
According to the indictment presented to the court, on or about October 3, 2017, Reyes-Romero was found to be illegally present in Aliquippa, Pennsylvania, having previously been removed from the United States on or about August 29, 2011.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure Auctions in Northern CaliforniaRead the Press Release
A real estate investor pleaded guilty for his role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Abraham S. Farag, who was charged in an indictment returned by a federal grand jury in the U.S. District Court for the Northern District of California on October 22, 2014, pleaded guilty to one count of bid rigging.
According to court documents, Farag participated in a conspiracy to rig bids by agreeing to refrain from bidding against other co-conspirators at public real estate foreclosure auctions in San Mateo County. The conspiracy began no later than August 2008 and continued until January 2011.
The primary purpose of the conspiracy was to suppress competition in order to obtain selected properties offered at San Mateo County public foreclosure auctions at noncompetitive prices.
Today’s guilty plea is the result of the Department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. To date, 74 individuals have pleaded guilty or been convicted at trial.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
RI Doctor Admits to Healthcare Fraud, Accepting Kickbacks for Prescribing Highly Addictive Version of FentanylRead the Press Release
WASHINGTON — Dr. Jerrold N. Rosenberg, 63 of North Providence and Jamestown, R.I., the operator of a now-defunct pain management practice in Rhode Island, pleaded guilty in U.S. District Court in Providence, R.I., today to conspiring to solicit and receive kickbacks in connection with his prescribing of the drug Subsys, a fast-acting, powerful, and highly-addictive version of the opioid drug Fentanyl that is administered as an under-the-tongue spray, and to committing healthcare fraud.
“Doctors who engage in healthcare fraud violate their oaths and put greed ahead of their patients,” said Deputy Attorney General Rod Rosenstein. “The Department of Justice is relentless in pursuing healthcare fraudsters. Earlier this year we conducted the largest healthcare fraud takedown in American history, charging more than 400 defendants with $1.3 billion in fraud, much of it related to our country’s ongoing drug epidemic. Since then, Attorney General Sessions assigned a dozen experienced prosecutors to focus on opioid-related health care fraud. This conviction is another step toward our goals of saving taxpayer dollars and protecting the American people from deadly drugs.”
Subsys is manufactured by Arizona based company Insys Therapeutics, Inc. (“Insys”). This spray was approved by the U.S. Food and Drug Administration in 2012 exclusively for “the management of breakthrough cancer pain in . . . patients who are already receiving and who are already tolerant of opioid therapy for their underlying persistent cancer pain.” As a result, many insurance companies require a diagnosis of breakthrough cancer pain before approving coverage of the drug, which costs approximately $2,000 to over $16,000 for a thirty day supply.
Appearing before U.S. District Judge John J. McConnell, Jr., Rosenberg admitted to the Court that he participated in a healthcare fraud scheme in which he falsely and fraudulently indicated that his patients had breakthrough pain from cancer when they did not, in order to secure insurance approvals for prescriptions of Subsys. As an example, Rosenberg admitted that in 2012, as part of the scheme, he falsely claimed that one patient suffered from cancer pain from basal cell carcinoma. While the patient had in fact had a potential skin cancer lesion on his nose removed many years before, it had not recurred, and was wholly unrelated to his pain. Rosenberg admitted that, in total, the healthcare fraud scheme resulted in losses of over $750,000; in many cases, the cost of the drug was reimbursed, at least in part, by the Medicare program.
Rosenberg also admitted that, between 2012 and 2015, he conspired with Insys officials to receive kickbacks, in the form of purported speaker fees, from the manufacturer of the spray. Rosenberg admitted that he accepted these payments, which totaled over $188,000. In addition, according to court documents, Rosenberg’s son was a sales representative for Insys Therapeutics from June 2012 – September 2013 and made substantial amounts in commissions as a result of the defendant’s prescribing Subsys to his patients. Rosenberg admitted that the speaking fees he received from Insys were a significant motivating factor in his decision to prescribe Subsys to his patients.
Rosenberg’s guilty plea to healthcare fraud and conspiracy to receive kickbacks is announced by Deputy Attorney General Rod Rosenstein; Acting U.S. Attorney for the District of Rhode Island Stephen G. Dambruch; Phillip Coyne, Special Agent-in-Charge of the Boston Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and Rhode Island Attorney General Peter F. Kilmartin.
“These provider kickbacks pervert medical decision making and undermine the integrity of government health programs,” said Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will aggressively work with both Federal and State Medicaid Fraud Control Unit law enforcement agencies to fight the opioid scourge.”
“Patients trusted Dr. Rosenberg to make medical decisions based on the best available treatment, not based on speaker fees, kickbacks and other financial incentives. He violated the law and his oath as a physician to do no harm when he placed greed over patient care, thinking little of the long-term consequences of patients taking this extremely powerful, highly-addictive opioid,” said Rhode Island Attorney General Peter F. Kilmartin. “Our office, working with our federal, state and local law enforcement partners, is committed to rooting out fraud and abuse in our healthcare system.”
Rosenberg is scheduled to be sentenced on January 16, 2018. The statutory maximum sentence with respect to the healthcare fraud scheme is up to 10 years imprisonment; a maximum sentence of five years imprisonment on the charge of conspiracy to accept kickbacks, followed by up to three years of supervised release and a fine of up to $250,000.00 on each charge. Under the terms of a plea agreement filed with the Court, Rosenberg has agreed to the entry of a restitution order in the amount of $754,736.48.
The case is being prosecuted in the District of Rhode Island by Assistant U.S. Attorneys Lee H. Vilker and Zachary A. Cunha.
The matter was investigated by the United States Attorney’s Office for the District of Rhode Island, the U.S. Department of Health and Human Services Office of Inspector General and the Rhode Island Department of Attorney General’s Medicaid Fraud and Patient Abuse Unit.###
Pittston Man Sentenced to Eight Years’ Imprisonment for Role in Drug ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on October 23, 2017, United States District Court Judge Malachy E. Mannion sentenced Richard Chalmers, age 41, of Pittston, Pennsylvania to 96 months’ imprisonment for his role in a drug conspiracy.
According to United States Attorney Bruce D. Brander, Chalmers conspired to distribute approximately 60 grams of heroin throughout Northeastern Pennsylvania between February and April of 2016. This amount of drugs equates to approximately 2,400 personal doses of heroin.
Chalmers was indicted by a federal grand jury on October 25, 2016, and pleaded guilty pursuant to a plea agreement on January 24, 2017.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Pennsylvania State Police, and the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorney Evan Gotlob prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Pittsburgh Man Charged with Robbing Brentwood Bank Armed with a KnifeRead the Press Release
PITTSBURGH - One resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of armed bank robbery, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on October 24, named Gary William White, age 20, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about September 20, 2017, White robbed PNC Bank, located at 3701 Saw Mill Run Boulevard, Pittsburgh, PA 15227, with a deadly weapon, namely a knife. PNC Bank is insured by the Federal Deposit Insurance Corporation.
The law provides for a maximum total sentence of 25 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, along with the Allegheny County Police and Brentwood Police Departments, conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Robbing Bank, Illegally Possessing Gun and AmmunitionRead the Press Release
PITTSBURGH - One resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of bank robbery, possession of a firearm and ammunition by a convicted felon and possession of a firearm in furtherance of a crime of violence, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on October 24, named Christian Elijah Moore, age 28, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about September 5, 2017, Moore robbed First National Bank, located at 116 West 8th Avenue, Homestead, PA 15120. The indictment also alleges that in furtherance of the bank robbery, Moore was in possession of a firearm and ammunition, following a felony conviction in 2011. Federal law prohibits a person convicted of a crime punishable by in excess of one year imprisonment from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, along with the Allegheny County Police and Homestead Police Departments, conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peabody Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BOSTON – A Peabody man pleaded guilty today in federal court in Boston to possessing child pornography, including images and videos of infants and toddlers being sexually abused.
Daniel Baldwin, 26, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 25, 2018.
Following an investigation into the online trade of child pornography through peer to peer networks, federal agents executed a search warrant at Baldwin’s home in Peabody on April 4, 2017, where they seized digital devices containing approximately 1500 videos containing child pornography. Baldwin is a Level 2 sex offender based on a 2013 Massachusetts state conviction for possession of child pornography.
The charge provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Opening Statement by U.S. Attorney R. Trent Shores Before the Senate Committee on Indian AffairsRead the Press Release
Chairman Hoeven, Vice-Chairman Udall, and Members of the Committee:
Thank you for the opportunity to testify before you today about three important bills pertaining to critical justice issues in Indian Country: S. 1870, Securing Urgent Resources Vital to Indian Victim Empowerment Act 2017; S. 1953, Reauthorization of the Tribal and Law Order Act of 2010; and S. 1942, “Savanna’s Act.” It is truly an honor to be here, not only as a United States Attorney representing the Justice Department, but also as an Oklahoman and as a member of the Choctaw Nation of Oklahoma. I began my legal career at the Department’s Office of Tribal Justice, meeting with tribal leaders from across the Country and even helping to draft testimony for officials who testified before this Committee.
Fifteen years later, I am an experienced career prosecutor who has seen firsthand the very real challenges that these bills seek to address. As I reviewed the content of these bills, I am confident that we can—and will—work together to improve public safety in Native communities. It is our duty to do so as we seek to uphold our federal trust responsibility.
The three bills address some of the biggest threats to public safety in Native communities. Violent crime and substance abuse occurs at higher rates in Indian country than anywhere else in the United States. That is unacceptable. There are not enough resources to cover all of the needs of law enforcement and victim service providers working in and around Indian country. Too many correctional facilities in Indian country are overcrowded or substandard such that they cannot maintain sight and sound separation between adult and juvenile detainees. Furthermore, the need for treatment services is widespread and urgent. Like many areas of our Country, Indian communities have been plagued by the scourge of the opioid epidemic. We must improve our services and programs for Native juveniles involved in the justice system, and we need better law enforcement tools and techniques to respond to cases of missing and murdered Native peoples, especially Native women.
As the United States Attorney in the Northern District of Oklahoma, and throughout my years of experience working on tribal justice issues, I have seen and heard from tribal leaders, law enforcement, social service providers, and victims about the challenges that exist on-the-ground in Native communities. There are 39 federally recognized tribes in Oklahoma, and 14 of those are in my District. We have large tribes like the Cherokee Nation and Muscogee (Creek) Nation and smaller tribes such as the Pawnee, Miami, or Delaware Tribes. We prosecute a diverse array of violent crimes and encounter too many victims who do not have the resources they so desperately need.
As a federal prosecutor, I have stood next to a hospital bed while a victim of domestic violence recounted the horrific details of how her lip was busted, her head concussed, her tooth knocked out, her arm broken, and her eye blackened. I listened to her cry as she explained that her boyfriend had flown into a fit of rage. I remember learning that the boyfriend had a history of domestic violence and that multiple women had sought protective orders against him. And I remember the disappointment when the victim notified us that she did not want to testify for fear of repercussions. While we were still able to successfully prosecute the boyfriend in this case, far too often tribal, state, and federal prosecutions of domestic violence offenders are unsuccessful because of witness and evidentiary problems. In this and similar moments, it was crucial that I had with me federal and tribal law enforcement agents and a victim-witness specialist to ensure that we met the needs of the prosecution and the victim. Multi-jurisdictional and multi-disciplinary teams are important in these types of cases, just as they also are in sexual assault and child sexual assault prosecutions.
In 2008, I sat on the floor of a doublewide trailer in rural Oklahoma with a BIA investigator and Cherokee Nation Marshal as we tried to build rapport with a twelve-year-old girl who had been repeatedly raped by her father for a period of years. The victim had been so victimized that she communicated by adopting the characteristics of horses, that is, she whinnied, snorted, and stamped her feet. You see, the horses in the field behind her house were the only thing in her life that had not hurt her. They were her friends. After months of intense work with our prosecution team and counselors, that same little girl—and two of her friends who had also been raped by her father—bravely testified in front of a jury and in front of her father. He was found guilty and is now spending life in a federal penitentiary.
Members of the Committee, there are many more cases like these—domestic violence, sexual assaults, child abuse—that require resources to be successfully investigated and prosecuted, and to help give a voice to victims. These bills seek to provide some of those critical resources and I thank you.
Thanks to the ongoing efforts of this Committee, federal agencies, and the Tribes, we are making progress in improving public safety in Native communities. Since the passage of the Tribal Law and Order Act of 2010 we are making progress in ensuring that Tribes are able to access law enforcement databases, which is critical to meeting public safety needs. We have expanded funding and training opportunities, established more productive protocols based on our government-to-government relationship with the Tribes, and have sought to be more clearly accountable for our efforts.
In the Northern District of Oklahoma, I am blessed to have a great relationship with the fourteen federally recognized tribes. My Tribal Liaison, Shannon Bears Cozzoni, regularly travels to Indian Country where, together with other federal prosecutors, she provides a variety of training to tribal law enforcement officials to help them obtain Special Law Enforcement Commissions to enforce federal law in Indian Country. As a former tribal liaison myself, I can assure you this position is crucial for United States Attorney’s Offices and there are no more dedicated advocates for justice in Indian Country. The funding of training programs for tribal law enforcement through District-focused initiatives and the National Advocacy Center serves to improve the investigative skills of law enforcement, social service providers, and prosecutors working in Indian Country. Similarly, the creation of the Native American Issues Coordinator at the Executive Office for United States Attorneys and the formal establishment of the Office of Tribal Justice has given United States Attorneys with Indian Country in their Districts an ever-present voice in the halls of the Justice Department in DC even when we are not physically present. The Tribal Law and Order Act of 2010 has been good for Indian Country and good for those of us working to ensure justice in Indian country.
Each bill proposes new methods and refined approaches to addressing major threats to public safety. Savanna’s Act addresses a tragic set of cases: missing and murdered individuals, often women, in Indian country. The Department of Justice supports the goals of this bill and the effort to take on this dark and tragic issue. We have identified some technical issues in the course of our review. For example, Section 1 of the bill references the Automated Integrated Fingerprint Identification System, which has been replaced with the Next Generation Identification System. We welcome the opportunity to work with your staffs to assist in making some technical adjustments.
The SURVIVE Act addresses a long-time issue in Indian country: a lack of resources to support the level of victim services warranted by the levels of violent crime in Indian country. The importance of providing effective services to victims of crime cannot be overstated. From any angle—humanitarian, law enforcement, community relations—it is both right and necessary. A number of the Department of Justice comments on an earlier version of this Act were incorporated into the current bill, which we recognize and appreciate. We note that the Act includes a consultation requirement. In fact, the Department, through the Office for Victims of Crime, has already begun making plans for formal consultations and listening sessions with tribes, with the first listening session having occurred in Milwaukee on October 18, 2017. Our review of this bill is ongoing, and welcome discussion with your staffs as we make progress towards a formal Administration response.
The Tribal Law and Order Act of 2010 was a significant and extremely positive piece of legislation. As a result of that legislation, the Department of Justice is making significant progress on improving public safety in Indian country. This Committee has received previous testimony from this Department on the many ways that the 2010 Tribal Law and Order Act altered and improved the way that we work in Indian country and with our federal partners and we agree with the Committee’s efforts to do more. Our review of this bill is also ongoing, so while we do not yet have a formal position to offer we do applaud efforts to compel greater improvements in law enforcement, data sharing, and justice for Native American and Alaska Native children. We are particularly heartened that you intend to extend the Bureau of Prisons pilot project and included support for our Tribal Access Program, which will help us expand that opportunity to more Tribes.
In our review, we noted a recurring effort to improve data collection and information sharing. The Department is unequivocally in favor of efforts to improve collection of and access to data whenever we can do so without harming victim confidentiality or jeopardizing an investigation. We are working internally to find immediate opportunities for improvement. And we will continue to work with our partner agencies, with Tribes, and with your staffs on data collection and information sharing issues.
The Department is actively engaged in efforts to address the specific challenges described in the bills and is committed to working with Congress, other federal agencies, and Tribes to more effectively address them. We seek, whenever possible, to expand Tribes’ opportunities for funding, training, and technical assistance. Our partnerships with Tribes and with other agencies active in Indian country are an integral part of our daily work, which we continually review to ensure that our work is productive and focused on the needs of the Tribes.
While we have further to go, we are far ahead of many nations in recognizing and protecting the rights of native peoples. Around the world, indigenous peoples are marginalized, exploited, or threatened with death—denied basic human rights, women abused, indigenous cultures destroyed, languages lost. With your continued leadership, the United States can lead by example to promote and protect the inherent rights of indigenous people. Recently, missing and murdered indigenous women was a topic of discussion during a June meeting of the Attorneys General for the U.S., Canada, Mexico, United Kingdom, New Zealand and Australia. In that meeting, Attorney General Sessions voiced support for the creation of a working group that would allow us to expand our partnerships in addressing this grievous issue.
As indicated earlier, the Department of Justice fully supports the goals of these three bills. The bills under discussion today are clearly intended to spur further progress, specifically in support of law enforcement, in providing effective services to victims of crime, and in shedding light on the tragic number of missing and murdered individuals in Indian country. The Department’s review of the bills is ongoing; some offices have already reached out to discuss some of the technical aspects of the bills, and we welcome the opportunity to continue working with your staffs to refine language.
We have made great progress, but we know we have a ways to go before we reach our shared goal of achieving lasting public safety in Indian country. We appreciate the efforts by this Committee to ensure that legislation affecting Native communities puts Federal, State, and Tribal agencies in the best possible position to overcome barriers to public safety. Thank you again for the opportunity to appear before you today. Thank you also for the opportunity to share with you some perspective from the United States Attorney’s Office in the Northern District of Oklahoma. I am happy to answer any questions you may have.Ohio Man Pleads Guilty to Sexual Exploitation of ChildrenRead the Press Release
BOISE – Timothy Raymond Schmidt, 34, of Cincinnati, Ohio pleaded guilty yesterday in United States District Court to sexual exploitation of children, U.S. Attorney Bart M. Davis announced.
According to the plea agreement, from January 28 to April 9, 2015, Schmidt, while in Ohio, used Skype to communicate with two minor victims, ages 17 and 13, located in Valley County, Idaho. On at least 12 occasions, Schmidt persuaded, induced, and coerced the 17 year-old victim to engage in sexually explicit conduct over live Skype video transmissions. On at least 11 occasions, Schmidt persuaded, induced, and coerced the 13 year-old victim to engage in sexually explicit conduct over live Skype video transmissions.
Schmidt’s conduct was discovered by adult relatives of the victims and reported to the Valley County Sheriff’s Office. The case was referred to Homeland Security Investigations (HSI) and the Idaho Internet Crimes Against Children (ICAC) task force. ICAC detectives examined the victims’ computers and discovered 33,000 lines of archived Skype chats between Schmidt and both victims, sexually explicit images of both victims, and images of Schmidt. Within the chats, Schmidt provided personal identifying information to the victims, including his name, hometown, his place of work, where he went to college, and a description of his tattoos. ICAC detectives were also able to identify two locations in Ohio from where Schmidt had engaged in the chats.
In May 2016, HSI Agents from Idaho and Ohio served a search warrant at one of the locations in Ohio where the Skype communications originated from. Agents determined that Schmidt currently resided there. They seized computers belonging to Schmidt from the residence.
HSI Agents also contacted a resident of the second location in Ohio where Skype communications originated from, and confirmed that Schmidt had previously stayed at the residence. Agents observed items in the residence which were consistent with items the victims reported observing in the background of Schmidt’s live chats, including a Darth Vader statue and model airplanes hanging from the ceiling. An HSI forensic examiner examined Schmidt’s computers and discovered evidence that both had been used to communicate with the victims via Skype.
Sexual exploitation of a child is punishable by not less than 15, and up to 30 years in prison, a maximum fine of $250,000, at least 5 years and up to lifetime of supervised release, and a $5,100 special assessment.
Sentencing is set for January 31, 2018, before Chief U.S. District Judge B. Lynn Winmill.
“This case is an excellent example of local, state and federal law enforcement working together to take out this child sexual predator,” said Davis. “Protecting our children from sexual predators is a top law enforcement priority, and we will continue to use all available tactics and resources to prosecute these individuals.”
“Homeland Security Investigations is committed to bringing to justice to those who sexually exploit children,” said Bradford A. Bench, special agent in charge of HSI Seattle. “This case exemplifies the long reach of HSI, and its ability to coordinate and pursue investigative efforts with our law enforcement partners.”
The case was investigated by Homeland Security Investigations, the Idaho Internet Crimes Against Children Task Force, and the Valley County Sheriff’s Office. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Norwich Man Sentenced to Prison for Role in Eastern Connecticut Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JONAS JOSEPH, also known as “James,” 34, of Norwich, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to eight months of imprisonment, followed by three years of supervised release, for his role in a scheme to stage car accidents for the purpose of defrauding automobile insurance companies.
On June 15, 2017, a jury found JOSEPH guilty of one count of conspiracy to commit mail and wire fraud, and Mackenzy Noze guilty of one count of conspiracy to commit mail and wire fraud, five counts of wire fraud and three counts of mail fraud.
According to the evidence presented during the trial, between March 2011 and February 2014, Noze, JOSEPH and others conspired to stage numerous car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from approximately $10,000 to $30,000 per accident.
The evidence at trial indicated that Noze participated in as many as 50 staged crashes, and JOSEPH was personally involved in six crashes. In three of the crashes, JOSEPH feigned injury and filed fraudulent bodily injury claims. In the other three, he allowed others to crash into his vehicle so that he could collect payouts on fraudulent property damage claims.
Judge Meyer ordered JOSEPH to pay restitution of $44,153.42.
JOSEPH has been released on a $10,000 bond since his arrest on June 1, 2016. Judge Meyer ordered him to report to prison on November 27.
On October 2, 2017, Judge Meyer sentenced Noze to 48 months in prison.
Five other individuals have been charged and convicted as a result of this investigation.
This matter has been investigated by the Federal Bureau of Investigation, the Norwich Police Department, and the National Insurance Crime Bureau. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Michael J. Gustafson.
New York Doctor Convicted of Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor practicing in Staten Island, New York, was convicted at trial today for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Thomas V. Savino, 58, of Staten Island, was found guilty on all 10 counts of an indictment charging him with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud.
Savino was convicted following a six-day trial before U.S. District Judge Stanley R. Chesler in Newark federal court. The jury deliberated for two and a half hours before returning its verdict.
According to documents filed in this case and the evidence at trial:From July 2012 through April 2013, Savino received cash bribes totaling at least $25,000 from BLS employees and associates in return for referring his patients’ blood specimens to BLS. Savino’s referrals generated approximately $375,000 in lab business for BLS.
The investigation has thus far resulted in 51 convictions – 37 of them doctors– in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
The Anti-Kickback and Federal Travel Act counts are each punishable by a maximum potential penalty of five years in prison. The wire fraud counts are each punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for Feb. 14, 2018.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Senior Litigation Counsel Joseph N. Minish and Assistant U.S. Attorney Erica Liu of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.37 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Eric R. Breslin Esq., Newark and Melissa S. Geller, New YorkNew Orleans Man Charged with Embezzling over $437,000 from Local EmployerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that WAYNE SONIAT, age 61, of New Orleans, was charged in a two-count Bill of Information with wire fraud and making false statements on federal income tax returns.
According to the Bill of Information, SONIAT was employed as a warehouse manager for a New Orleans-based food production company headquartered in Metairie, which also operated a manufacturing plant in Reserve (“Company A”). SONIAT was responsible for, among other things, ensuring that employees followed appropriate procedures, keeping track of when temporary employees worked, and submitting the requisite paperwork, including time sheets, to ensure that Company A paid the temporary employees and the staffing agency through whom the temporary employees were acquired for the time the temporary employees worked. Between about November 2009 and October 2014, SONIAT embezzled approximately $437,346 from Company A in a series of approximately 200 wire transfers, without Company A’s knowledge or authorization. SONIAT did so by signing and submitting paperwork, including time sheets, indicating that temporary, contract employees (“ghost employees”) had performed work for Company A when, in fact, they had not. SONIAT obtained debit cards in the names of the ghost employees onto which payments were made for the time they allegedly worked. SONIAT then used the money to pay for personal expenses to withdraw cash at area ATMs.
If convicted, SONIAT faces a maximum term of imprisonment of 23 years in prison, 3 years of supervised release after any term of imprisonment, and a $250,000 fine.
Acting U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service – Criminal Investigations in investigating this matter, with assistance from the United States Secret Service, the St. John the Baptist Sheriff’s Office, and the Louisiana Financial Crime Task Force. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
Mississippi Man Charged with Theft from Government for Defrauding TARP-funded Alabama BankRead the Press Release
BIRMINGHAM – Federal prosecutors this week charged a Mississippi man with stealing government property by defrauding an Alabama bank that received money through the Troubled Asset Relief Program following the 2008 financial crisis, announced U.S. Attorney Jay E. Town, TARP Special Inspector General Christy Goldsmith Romero, and FBI Special Agent in Charge Johnnie Sharp Jr.
The U.S. Attorney’s Office charged THOMAS G. COMER JR., 58, of Columbus, Miss., with one count of theft of government money or property between January 2010 and July 2014. In conjunction with the charge, prosecutors also filed a plea agreement with Comer in which he agrees to plead guilty, pay restitution of $136,278 to the U.S. Treasury and forfeit that same amount to the government as proceeds of illegal activity. Comer must appear before a federal judge to formally enter his guilty plea.
The Treasury Department lost nearly $500,000 in its TARP investment in the Lamar County, Ala., bank that Comer defrauded, according to his plea agreement.
“Those who greedily seek a self-indulgent advantage during times of calamity, especially in times of financial crisis or natural disaster, will be vigorously prosecuted by the United States,” Town said. “I want to thank SIGTARP and the FBI for their outstanding work on this case.”
“Today’s plea is an important step in the fight against fraud that hurt a TARP bank and cost taxpayers,” Romero said. “One week after taxpayers funded Bank of Vernon with $6 million in a TARP program to foster small business lending, the bank loaned money to Thomas Comer to buy river barges. Months later, Comer sold the barges that served as collateral for the loans, and defrauded the bank, keeping the money for himself rather than repaying the loans,” she said. “Fraud against a TARP bank is fraud against taxpayers, as seen here when the bank could not repay TARP in full and Treasury took a loss of nearly half a million dollars. I thank U.S Attorney Jay E. Town and his team for fighting with SIGTARP against TARP bailout-related crime and recovering funds for Treasury.”
“Mr. Comer ultimately stole from tax-paying citizens in order to line his own pockets,” Sharp said. “The FBI and our partners will continue to pursue and bring to justice those who perpetrate this type of fraud.”
Comer owned a Mississippi-based company, CFC Transportation, which specialized in hauling gravel and other freight on the Mississippi and other rivers. He and his company filed for bankruptcy in federal court in May 2014, according to his plea agreement.
Comer had an established banking relationship with the Bank of Vernon in Lamar County and in March 2009 obtained a $295,922 business loan to buy nine barges, according to the plea agreement. The loan documentation designated the barges as security for the loan.
Several months later, Comer obtained a second loan, in the form of a $136,278 line of credit, saying the barges “had been arrested” and he needed money to recover them, according to the plea agreement. In early 2010, Comer sold six of the nine barges for $239,000 but used that money to prop up his struggling businesses rather than to repay his bank loans. Comer also did not inform the Bank of Vernon that he had sold the barges. Between July 27, 2010, and June 25, 2013, on 11 loan renewals and extensions of his two loans, Comer misrepresented his security for the loans, listing the nine barges as collateral, according to his plea agreement.
The Vernon bank, through its holding company, First Vernon Bancshares, received $6 million in TARP funds from the U.S. Treasury in June 2009, according to Comer’s plea agreement. The Treasury Department established TARP as part of the Emergency Economic Stabilization Act of 2008. TARP was designed to restore liquidity and stability to the country’s financial system in the wake of the financial crisis.
In exchange for the TARP funds to First Vernon Bancshares, the government held shares in the bank and the holding company was required to pay quarterly dividends to the U.S. Treasury until the bank redeemed its stock. In September 2010, the bank converted to a different TARP program designed to help small businesses obtain credit, but First Vernon Bancshares still was required to make quarterly dividend payments to the Treasury Department until the bank repaid its investment, according to Comer’s plea agreement.
The holding company ultimately missed some of the quarterly payments and, in November 2016, reached an agreement with Treasury to buy back its preferred stock for about $5.7 million, according to the plea agreement. Treasury lost about $499,600 on its investment in First Vernon Bancshares.
Comer could face a prison sentence of up to 10 years.
Treasury’s Office of the Special Inspector General for the Troubled Asset Relief Program and the FBI investigated the case, which Assistant U.S. Attorney Xavier Carter is investigating.
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Michigan Man Pleads Guilty to Conspiracy to Sexually Exploit Dozens of Minor GirlsRead the Press Release
Grand Rapids, Michigan resident pleaded guilty on Oct. 25, to two child exploitation offenses, including conspiracy to produce child pornography and conspiracy to receive and distribute child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Beth Drake of the District of South Carolina.
James Thomas Gersky, 33, pleaded guilty two weeks before he was set to go on trial in Charleston, South Carolina. Six other co-defendants had already pleaded guilty.
According to court documents, between July 2014 and April 2015, Gersky and his co-conspirators utilized a website that was specifically designed to help the group target and sexually exploit underage girls. The website was password-protected and only vetted individuals could become members. The members of the website worked together to identify social media profiles of girls, including girls younger than 13, and strategized how to convince the girls to engage in sexually explicit activity via live web camera. Typically, Gersky and his co-conspirators streamed pre-recorded videos of other underage girls engaging in similar conduct to their target-victims in an effort to trick the girls into believing they were watching a live video of someone their own age. Using peer-pressure, the members convinced the victims to engage in sexually explicit activity. The victims were unaware that they were actually communicating with adult men who were recording the sexually explicit activity. After successfully recording a victim’s sexually explicit activity, Gersky and his co-conspirators would share the videos with each other by uploading the file to a file-storage site and placing a link to download the file on a section of their website. To date, 87 victims from 28 states and Canada have been positively identified.
Five of the co-conspirators each pleaded guilty to one count of conspiracy to produce child pornography and one count of conspiracy to receive and distribute child pornography. On Aug. 8, Jonathan Cripe, 28, of Imperial, Missouri, pleaded guilty. On Sept. 28, Sean Ellis, 43, of Kennesaw, Georgia, and Steven Fox, 39, of Elkridge, Maryland, each pleaded guilty. On Oct. 12, Michael Augustin, 44, of Fort Collins, Colorado, pleaded guilty. On Oct. 20, Dejan Becovic, 24, of West Vallen City, Utah, pleaded guilty. Becovic also previously pleaded guilty in Utah to receipt of child pornography, and on Oct. 18, was sentenced to 15 years in federal prison for the Utah conviction. On Sept. 29, Brandon Gressette, 33, of Summerville, South Carolina pleaded guilty to conspiracy to produce child pornography, as well as two substantive counts of production of child pornography. Additionally, another co-conspirator, Jonathan Soto, 27, of Branchburg, New Jersey, was prosecuted in the District of New Jersey and also pleaded guilty to conspiracy to produce child pornography. On March 31, Soto was sentenced to 18 years in federal prison for his role in the scheme.
The FBI is investigating the case. Trial Attorneys Lauren Britsch and Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Dean Secor are prosecuting the case.
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 http://www.justice.gov/psc.
Mescalero Apache Man Pleads Guilty to Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Ronald Roy Blaylock, Sr., 34, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to assaulting a federal officer.
Blaylock was arrested on June 1, 2017, on a criminal complaint charging him with assaulting a federal officer. According to the criminal complaint, Blaylock was arrested on tribal charges after he assaulted a law enforcement officer of the Bureau of Indian Affairs (BIA). Blaylock committed the assault on the Mescalero Apache Indian Reservation in Otero County, N.M., on Jan. 30, 2016, by head-butting the officer while the officer was arresting Blaylock. The officer sustained a bump and bruise to his head as the result of the assault.
Blaylock was subsequently charged by indictment on Oct. 19, 2017, with assaulting a federal officer on Jan. 30, 2016, in Otero County.
During yesterday’s proceedings, Blaylock pled guilty to the indictment and admitted that on Jan. 30, 2016, he assaulted a BIA officer by intentionally head-butting the officer. At sentencing, Blaylock faces a maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Memphis Man Sentenced to 57 Months in Scheme to Defraud Financial InstitutionsRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 57 months in federal prison for committing bank fraud against financial institutions in the Memphis area. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to the indictment, from August 2011 through February 2016, Talmadge Garner and other co-conspirators participated in a deceptive scheme to defraud Orion Federal Credit Union, SunTrust Bank and Regions Bank by opening new accounts and/or using their existing accounts to deposit fraudulent checks. Garner also stole the identities of individuals to pass fraudulent checks to the Banks.
Nearly 200 fraudulent checks totaling over $130,000 were deposited into accounts at the Banks. Immediately after deposits were made in the banks, withdrawals were made by Garner and others. Garner would give co-conspirators some of the proceeds withdrawn from the banks.
On October 25, 2017, U.S. District Judge Sheryl H. Lipman sentenced Garner to 57 months imprisonment and 3 years supervised release to begin after his incarceration.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Damon Keith Griffin prosecuted the case on the government’s behalf.