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30 November 2017
Readout of Associate Attorney General Rachel Brand Trip to Ottawa, Canada for Trilateral Summit on Violence Against Indigenous Women and GirlsRead the Press Release
Associate Attorney General Rachel Brand traveled to Ottawa, Canada on Thursday, Nov. 30, to lead the U.S. delegation in the Trilateral Summit on Violence Against Indigenous Women and Girls. This is the second meeting of the trilateral working group. The first was hosted by the U.S. in 2016 and next year’s meeting will be in 2018, hosted by Mexico.
Associate Attorney General Brand met with Carolyn Bennett, Minister of Canada’s Crown-Indigenous and Northern Affairs and Ismerai Betanzos Ordaz, Indigenous Rights Coordinator, Mexican Commission on the Development of Indigenous Rights.
“Tackling the issue of violence against Indigenous women and girls in our region and in the U.S. is not only a matter of criminal justice, but a moral imperative,” said Associate Attorney General Brand.
During the event, the three countries agreed to continue to prioritize the discussions, committing to continue the dialogue in 2018. Government representatives, in partnership with Indigenous women from across North America, will participate in events during the upcoming year, in preparation for the next meeting, which will be hosted by Mexico in the fall of 2018.
Themes discussed at this meeting were the importance of meaningful consultation with indigenous women regarding solutions to violence; promising practices for improving criminal justice responses to violent crimes against Indigenous women and girls; and the need for rigorous data collection to understand the full extent of domestic and sexual violence and human trafficking in Indigenous communities.
To address this need for data, Associate Attorney General Brand has directed the Department’s National Institute of Justice to adapt an ongoing study on violence in Indian Country to add an inquiry about the prevalence rates of human trafficking of American Indian and Alaska Native women and girls.
Canada, Mexico and the United States of America were also pleased to welcome Indigenous women from their respective countries to attend the event as full partners in order to ensure that their voices were included in the discussions. Indigenous women shared their experiences and perspectives, contributing to the development of outcomes for the working group.
The Department of Justice remains committed to addressing violence against indigenous women and girls in all of its forms through aggressive law enforcement and programs that serve victims. The Department is committed to working with our international partners to share information and develop capabilities to address cross-border crimes like sex and labor trafficking together.
Associate Attorney General Brand’s visit supports the Justice Department’s continuing efforts under the Task Force on Crime Reduction and Public Safety.Potomac Doctor Indicted for Distribution of Controlled Dangerous SubstancesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Dr. William Samuel Vaughn, III, a/k/a “Skip,”, age 62, of Largo, Maryland, today on charges of Distribution and Dispensation and Causing and Attempting to Cause the Distribution and Dispensation of Controlled Dangerous Substances. The indictment was returned on November 29, 2017 and unsealed today upon the arrest of the Vaughn.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office and Chief J. Thomas Manger of the Montgomery County Police Department.
According to the 66-count indictment, between January 2014 and June 2017 Vaughn was a physician who practiced out of an urgent care center located in Potomac, Maryland. During this time he prescribed four individuals 3,210 20 mg and 30 mg Amphetamine (Adderall) pills outside the usual course of professional practice and without a legitimate medical purpose.
Amphetamine is a stimulant and a Schedule II controlled substance. Amphetamine is commonly used for the treatment of attention deficit disorder, and is available in generic form and under the brand name Adderall.
"Today's indictment and arrest exposes Vaughn's lack of concern for the true health of his patients," FBI Special Agent-in-Charge of the Baltimore Field Office Gordon B. Johnson said. "Vaughn violated his privilege and authority to prescribe controlled drugs lawfully by putting his own personal gain ahead of his patients' health and well-being. When trusted doctors fail, the FBI and our partners are going to hold them accountable."
“Any physician who ignores the health and wellbeing of his patients and illegally prescribes narcotics to members of our community who are struggling with addiction is no better than a drug dealer selling from a street corner. Hopefully, this 66 count indictment will serve notice to the members of the medical profession and citizens of Montgomery County that we will aggressively pursue anyone, including a doctor, who is involved in the illegal distribution of drugs in our community," said Chief J. Thomas Manger of the Montgomery County Police Department.
Vaughn faces a maximum sentence of 20 years in prison and up to a lifetime of supervised release. An initial appearance has been scheduled for 2:30 p.m. in U.S. District Court in Greenbelt today.
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 FBI and Montgomery County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Kelly O’Connell Hayes who is prosecuting the case.
Paramedic Sentenced for Stealing Fentanyl from Ambulance CompanyRead the Press Release
BOSTON – A paramedic was sentenced today in federal court in Boston for diverting fentanyl intended for patients for his own use and for extracting fentanyl from vials stocked on ambulances and replacing the fentanyl with saline.
Joseph V. Amello, 50, of Rowley, Mass., was sentenced by U.S. District Court Judge Douglas P. Woodlock to 30 months in prison and three years of supervised release. In June 2017, Amello pleaded guilty to one count of acquiring a controlled substance by deception, fraud, and forgery, and one count of tampering with a consumer product.
From approximately November 2014 to August 2015, while working as a paramedic for an ambulance company, Amello stole over 650 5-ml vials of fentanyl for his own use. In addition, beginning around July 1, 2015, Amello removed fentanyl from a number of vials intended for ambulance patients and replaced the fentanyl with saline.
Acting United States 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; and Commissioner Monica Bharel, M.D., M.P.H., of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. Assistant U.S. Attorney Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Palm Beach County Resident Sentenced to 20 Years in Federal Prison for Firearm and Drug OffensesRead the Press Release
Gerald Petion, 33, of Delray Beach, was sentenced by United States District Judge Robin L. Rosenberg to 240 months in federal prison, to be followed by five years of supervised release for being an armed career criminal in possession of a firearm and ammunition, and possession of a firearm in furtherance of a drug trafficking crime.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), and Jeffrey S. Goldman, Chief, Delray Beach Police Department (DBPD), made the announcement.
Petion was prosecuted under the federal Armed Career Criminal Act (ACCA), which provides for an enhanced sentence for persons with at least three prior felony convictions for violent felonies or serious drug trafficking crimes.
According to court documents, on March 14, 2016, DBPD Officers responded to a heroin overdose in the City of Delray Beach. The victim, who was in extreme respiratory distress, survived the incident, and once revived, cooperated with law enforcement officials. Petion was identified as the street level heroin dealer and DBPD initiated a narcotics investigation. After multiple undercover purchases of heroin, DBPD obtained an arrest warrant for Petion for two counts of sale of heroin within 1,000 feet of a park.
On April 15, 2016, DBPD Officers located Petion. Petion refused to surrender and instead fled from the scene on foot. As Petion fled he dropped a fully loaded FN Herstal, Model Five-seveN, 5.7 x 28 mm, semi-automatic pistol.
On April 24, 2016, DBPD Officers located Petion and after a brief standoff, he surrendered to the officers. Petion was arrested for his outstanding felony warrants.
Prior to his commission of both offenses, Petion had three separate prior felony convictions for aggravated battery, one prior felony conviction for trafficking in cocaine, and one prior felony conviction for delivery of Oxycodone within a 1,000 feet of a school. As a consequence, Petion was subject to the enhanced sentencing provisions of ACCA.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the anti-gang, anti-gun violence initiative of the United States Department of Justice. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Greenberg commended the investigative efforts of ATF, PBSO, and DBPD. This case was prosecuted by Assistant U.S. Attorney John C. McMillan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Oxycodone Trafficker Convicted by Federal JuryRead the Press Release
Assistant U. S. Attorney Orlando Gutierrez (619) 546-6958
NEWS RELEASE SUMMARY – November 29, 2017
SAN DIEGO – Edwin Fuller, a member of a drug trafficking organization that illegally acquired and distributed at least 50,000 oxycodone tablets valued at $1.5 million during a three-year span, was convicted by a federal jury today following a three-day trial.
Fuller was part of what is believed to be the San Diego region’s most prolific and well-organized oxycodone ring. The organization acquired oxycodone via fraudulent prescriptions and phony California identification cards and distributed the pills across the country. One significant seizure involved 7,000 pills sent by this organization to Columbus, Ohio.
Fuller is the fourth key member of the organization that has been convicted in the case so far. The investigation is ongoing.
Two coconspirators testified at trial that Fuller was a recruiter and a “filler” who walked into pharmacies to get bogus prescriptions filled. Fuller received the oxycodone and distributed it to others. Evidence at trial proved that over a six-month period Fuller was able to successfully acquire more than 11,000 30-milligram tablets of oxycodone. The traffickers obtained pills for about $2 each from the pharmacies and then sold them for a street value of up to $30 each.
One coconspirator testified that she was “thankful” for being arrested because she would have died as a result of her addition to oxycodone.
U.S. Attorney Adam Braverman said prosecution of this organization and others like it is a priority for this office because their greed is feeding the addiction crisis in California and other regions of the United States.
“Just yesterday I heard from parents who tragically lost their son to opiate addiction. This case demonstrates that we are holding pill peddlers accountable for the havoc they are wreaking on our country,” said U.S. Attorney Adam Braverman. “We will not tolerate drug trafficking rings that seek to profit by exploiting and endangering people who struggle with substance use disorder.”
Earlier today, Attorney General Jeff Sessions announced new resources and stepped up efforts to address the drug and opioid crisis, including over $12 million in grant funding to assist law enforcement in combating illegal manufacturing and distribution of methamphetamine, heroin, and prescription opioid and a directive to all U.S. Attorneys to designate an Opioid Coordinator to work closely with prosecutors, and with other federal, state, tribal, and local law enforcement to coordinate and optimize federal opioid prosecutions in every district.
Fuller is scheduled to be sentenced on February 15, 2018 at 2:15 p.m. before U.S. District Judge Gonzalo Curiel.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Case Number 16cr0867
Edwin Fuller Age: 39 Los Angeles
SUMMARY OF CHARGES
Conspiracy to Possess with Intent to Distribute Controlled Substance – Title 21, U.S.C., Section 841(a) (1) and 846
Maximum penalty: 20 years in prison and $1 million fine
Owners of Peabody Pizza Shop Plead Guilty to Federal Tax ChargesRead the Press Release
BOSTON – The owners of Giovanni’s Roast Beef & Pizza in Peabody pleaded guilty yesterday to skimming cash receipts from Giovanni’s and failing to report the cash on their tax returns, thereby avoiding the payment of more than $550,000 in taxes.
William Panousos, 66, Theodora Panousos, 64, and Konstantinos Panousos, 38, each pleaded guilty to one count of conspiracy to defraud the United States. William Panousos also pleaded guilty to three counts of aiding and assisting in filing false corporate and individual tax returns; Theodora pleaded guilty to four counts; and Konstantinos pleaded guilty to two counts. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for March 8, 2018.
During tax years 2013 through 2015, the defendants skimmed approximately $1.5 million in cash receipts from Giovanni’s and did not deposit them into the business’ bank account or report them to their tax preparer. In addition, the defendants paid some of the business’ expenses in cash, including a portion of payments to suppliers and a portion of employees’ salaries. They also failed to report about $550,000 of those cash expenses on their tax returns.
The charge of conspiracy to defraud the United States provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Each charge of aiding and assisting the filing of false tax returns provides for a sentence of no greater than three years in prison, one year 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 Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit is prosecuting the case.
Oklahoma City Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lashea Dannette Harris, age 33, of Oklahoma City, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C), punishable by not more than 20 years imprisonment, and up to a $1,000,000.00 fine or both.
The Superseding Indictment alleged that beginning in or about July 2016 and continuing until on or about November 29, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to possess with intent to distribute and to distribute a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, in violation of Title 21, United States Code, Section 846.
The charges arose from a joint investigation entitled “Golden Pony” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Bureau of Indian Affairs and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
New York Man Sentenced to 28 Months in Prison for Illegally Manufacturing and Possessing ExplosivesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARK D. HUBER, 57, of Mahopac, New York, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 28 months of imprisonment, followed by three years of supervised release, for illegally manufacturing and possessing explosives.
According to court documents and statements made in court, on July 21, 2016, the Connecticut State Police received a report that several items that appeared to be explosive devices were in a garage of a residence in Warren, Connecticut. HUBER previously resided at the home. The State Police and FBI Bomb Squad searched the garage and discovered that HUBER had manufactured black powder and flash powder, which can be used as the explosive charge in an improvised explosive device (IED). Investigators found and seized approximately 12 IEDs, and approximately 35 devices that were missing only the explosive powder.
HUBER was arrested on a federal criminal complaint on July 22, 2016. A subsequent search of residences in Ossining and Mahopac, New York, where HUBER resided prior to his arrest, revealed additional pyrotechnic mixtures, fuses and fully assembled explosive devices.
HUBER has been detained since his arrest. On July 12, 2017, he pleaded guilty to one count of unlawful possession of an unregistered explosive device.
This case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
New York Man Convicted of Heroin and Crack ChargesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Carey Ackies, 36, of Jamaica, Queens, New York, was convicted today following a four-day jury trial in U.S. District Court of conspiracy to distribute heroin and 28 grams or more of cocaine base, commonly known as crack, and aiding and abetting the possession with the intent to distribute heroin and 28 grams or more of crack.
Court records and trial evidence revealed that on January 18, 2016, federal agents intercepted a drug courier getting off a bus in Portland with heroin and crack. The ensuing investigation revealed that the defendant was the source of the drugs. Four days later, DEA located and arrested the defendant in New York. A search of his Jamaica apartment resulted in the seizure of heroin and crack, a firearm, a money counter and other evidence of drug trafficking.
Ackies faces between ten years and life in prison and a $10,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S Drug Enforcement Administration in conjunction with U.S. Immigration & Customs Enforcement’s Homeland Security Investigations, the Maine State Police and the Lewiston Police Department, and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Orleans Man Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CORTEZ THOMPSON, age 34, of New Orleans, was sentenced yesterday after previously pleading guilty to conspiracy to commit mail fraud.
U.S. District Judge Susie Morgan sentenced THOMPSON to three years probation.
According to court documents, from in or about December 2012 and continuing though in or about June 2013, THOMPSON and his co-conspirators were involved in a scheme to unlawfully obtain money through the distribution of counterfeit United States Postal Service money orders. To this end, THOMPSON and his co-conspirators would, among other things, procured, produced, and caused to be produced counterfeit United States Postal Service money orders, distributed them via the mail, and negotiated them in order to share the illegal proceeds of the crime.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. Assistant U.S. Attorney Loan "Mimi" Nguyen was in charge of the prosecution.
New Orleans Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DORIAN GIVENS, age 30, of New Orleans, pled guilty yesterday to an Indictment charging him with violating the Federal Gun Control Act.
According to the court records, GIVENS on two separate occasions possessed a firearm after being convicted of distributing crack cocaine in a prior federal case. In June 2016, police found GIVENS in possession of a gun in the driver’s side door panel of the vehicle he was in when he was shot several times. In January 2017, police found a gun in a hotel room where GIVENS had been arrested. GIVENS admitted on a recorded jail call to being in possession of that gun.
GIVENS faces a term of imprisonment of up to 10 years on each count, as well as a fine of $250,000, and three years of supervised release following any term of imprisonment. U.S. District Judge Susie Morgan set sentencing for March 7, 2018.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the New Orleans Police Department, and the Jefferson Parish Sherriff’s Office in investigating this matter. Assistant U.S. Attorney David Haller is in charge of the prosecution.
New Haven Man Sentenced to Federal Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JAHMAL GIBBS, 21, of New Haven, was sentenced yesterday by U.S. District Judge Jeffrey Alker Meyer in New Haven to 24 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on February 26, 2016, members of the U.S. Marshals Violent Fugitive Task Force arrested GIBBS in an apartment on Henry Street in New Haven. A search of a bedroom in the apartment revealed a loaded .357 caliber revolver that was hidden between a mattress and a box spring.
In September 2014, GIBBS was convicted of a state felony firearm offense. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On November 2, 2016, GIBBS pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
NYPD Officer Charged with Narcotics, Weapons, Fraud, Identity Theft, and Counterfeit Currency OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Police Commissioner of the City of New York (“NYPD”), announced the unsealing of a criminal complaint charging REYNALDO LOPEZ with attempting to traffic narcotics and using a firearm in furtherance of that offense, access device fraud, conspiracy to commit access device fraud, aggravated identity theft, and passing counterfeit obligations. LOPEZ is a police officer with the NYPD, assigned to the Anti-Terrorism Unit in the Transit Bureau. LOPEZ was presented yesterday before U.S. Magistrate Judge Debra Freeman.
Acting U.S. Attorney Joon H. Kim said: “Reynaldo Lopez, a police officer sworn to serve and protect his community, instead allegedly engaged in a shocking crime spree. Lopez allegedly attempted to traffic nearly three kilograms of heroin, stole people’s identities to create and use credit cards for his own use, and knowingly used counterfeit money. Police officers who violate their oath and break the laws betray not only the public, but their fellow officers who have nobly committed themselves serving and protecting our communities.”
FBI Assistant Director William F. Sweeney Jr. said: “The list of allegations Officer Lopez faces is troubling on many levels. Not only is Lopez accused of participating in a fraudulent credit card operation and a counterfeit money scheme, he’s also accused of misusing his position as a police officer to engage in the trafficking into our city of what he believed to be heroin. The NYPD works diligently day in and day out to protect the public from those who engage in these types of crimes. As evidenced by the charges today, nobody is exempt from that practice.”
NYPD Police Commissioner James P. O'Neill said: “Police officers are sworn to protect and serve the public. As alleged, the defendant violated our oath, breaking the law, repeatedly, to traffic narcotics or steal others' identities. Today he finds himself under arrest and charged criminally in federal court after eroding the trust we work on building every day with the public.”
According to the Complaint[1] unsealed today in Manhattan federal court:
LOPEZ is an NYPD police officer assigned to the Transit Bureau’s Anti-Terrorism Unit.
On November 29, 2017, LOPEZ attempted to traffic approximately three kilograms of heroin from a location in New Jersey to the Bronx, New York. LOPEZ agreed with another undercover police officer (“UC-2”) to transport what LOPEZ believed were three kilograms of heroin to a drug dealer located in the Bronx, New York, under LOPEZ’s protection as an NYPD police officer, and was arrested when he attempted to make the delivery. LOPEZ also possessed a firearm in furtherance of this attempted narcotics trafficking.
From May 2017 to the present, LOPEZ engaged in a scheme to create and utilize fraudulent credit cards, including by using identity information stolen from his victims. He was part of a counterfeit credit card operation whose participants used stolen or otherwise illicitly obtained personal identifying information to create fraudulent credit cards, and then used the fraudulent credit cards to purchase merchandise for themselves. As part of his participation in these crimes, LOPEZ also possessed and used a device that applies electronic data to blank physical credit cards.
From October 2017 to the present, LOPEZ possessed, passed, and used counterfeit United States currency. In multiple recorded conversations with an undercover NYPD officer (“UC-1”), LOPEZ discussed his possession of counterfeit money, stating that he previously had successfully used some of the counterfeit currency. LOPEZ also showed UC-1 a stack of currency that LOPEZ claimed was counterfeit, and provided UC-1 with a counterfeit $100 bill.
* * *
LOPEZ, 26, of Brooklyn, New York, was arrested yesterday in the Bronx, New York. LOPEZ is charged with one count of access device fraud, which carries a maximum sentence of 15 years in prison; one count of conspiracy to commit access device fraud, which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; one count of passing counterfeit obligations, which carries a maximum sentence of 20 years in prison; attempted possession of one kilogram and more of mixtures and substances containing heroin, which carries a mandatory minimum sentence of 10 years in prison and a maximum of life in prison; and firearms use, carrying, and possession in connection with a narcotics trafficking offense, which carries a mandatory sentence of five years in prison.
The statutory minimum, maximum, and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Kim praised the FBI and the NYPD for their outstanding work on the investigation. He added that the investigation is continuing.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller and Jessica Lonergan are in charge of the prosecution.
[1] The charges contained in the Complaint are merely accusations, and LOPEZ is presumed innocent unless and until proven guilty.
More than a Dozen Charged in Large-Scale Conspiracy Involving Local Aryan Brotherhood RingRead the Press Release
CORPUS CHRISTI, Texas – A total of 14 Corpus Christi residents are now in custody and face up to life in prison for their alleged roles related to the activities of the Aryan Brotherhood of Texas (ABT), announced Acting U.S. Attorney Abe Martinez.
The charges include conspiracy to participate in racketeering activity involving the activities of the ABT, violent crimes in aid of racketeering activity and conspiracy to possess with the intent to distribute methamphetamine.
A federal grand jury returned the indictment on Nov. 29, 2017, against James Randall Ross aka Silver, 45, David Wayne Frost aka Spider, 47, Michael Lee Craig aka Rooster, 44, Mark Clairborne Pennington aka Shiloh, 59, Brian Russell Campbell aka Iceman aka Loyalty, 35, Johnny Glenn Voiles aka Panhead, 47, Jimmy Curtis Mullenax III aka Curt, 40, Kenneth Brandenburh aka K-Dog, 44, Matthew Jay Thompson aka Pie Face, 33, Pedro Campos aka Pete, 59, Abby Telge, 28, Johnny Hagensick, 49, Randy Stasney, 60, and Allen Saunders, 35. The indictment was unsealed today.
Ross made his initial appearance this morning, at which time he was ordered detained pending trial set for Jan. 8, 2018. With the exception of Voiles, who is not as yet in custody, the remaining defendants are expected to make their initial appearances before U.S. Magistrate Judge B. Janice Ellington at 2:00 p.m. today.
Voiles is believed to be in the Houston area. Anyone with information about his whereabouts is asked to contact Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) at 1-866-347-2423.
The indictment charges Ross, Frost, Craig, Pennington, Campbell and Voiles in with conspiracy to participate in racketeering activity involving ABT activities between 1995 and November 2017. The indictment alleges they and others known and unknown were members and associates of the ABT, a criminal organization whose members and associates engaged in the illegal trafficking of controlled substances, extortion, murder, attempted murder, assault with a dangerous weapon and other acts of violence and intimidation. They allegedly operated throughout Texas, including the Corpus Christi Division of the Southern District of Texas and elsewhere. In addition, one of the purposes of the criminal enterprise was allegedly to keep victims in fear of the enterprise and in fear of its leaders, members and associates through threats of violence and actual violence.
Ross, Frost and Craig are also charged with violent crimes in aid of racketeering activity in September 2015.
All 14 arrested today are charged with conspiracy to possess with the intent to distribute methamphetamine between July 2012 to November 2017.
All face up to life in prison. The racketeering charges also carry a possible $250,000 maximum fine, while the drug trafficking conviction carries a possible maximum $10 million fine, upon conviction.
HSI; Bureau of Alcohol, Tobacco Firearms and Explosives; Drug Enforcement Administration; Texas Department of Public Safety; Nueces County Sheriff’s Office; Corpus Christi Police Department and the U.S. Marshals Service conducted the investigation. Assistant U.S. Attorneys Lance Watt and Julie K. Hampton are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Milestone Recovery, Inc. Agrees to Pay $4,519 to Settle Civil Health Care Fraud CaseRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank today announced that Milestone Recovery, Inc. (“Milestone”) has entered into a civil settlement agreement with the United States and the State of Maine in which it will pay $4,519.04 to resolve allegations that Milestone submitted false claims to MaineCare (Maine’s Medicaid program) from June 2015 through July 2016. MaineCare is primarily funded by the United States, which pays about two-thirds of all claims submitted to MaineCare.
According to a civil complaint filed today, Milestone used money paid to it by MaineCare to pay the salary and benefits of a Milestone employee who previously had been excluded from Federal health care and the MaineCare programs. Federal health care programs may not pay, directly or indirectly, for items or services furnished, ordered, or prescribed by excluded individuals or entities. Prior to joining Milestone, the employee had been excluded after surrendering her nursing license for diverting Fentanyl and Oxycodone while employed as a nurse at a hospital. The employee disclosed the circumstances that caused her to surrender her nursing license in her Milestone employment application, but Milestone failed to check publicly available exclusion databases to determine if she was excluded.
The case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, and the Attorney General’s Office of the State of Maine. The civil action is docketed United States and the State of Maine v. Milestone Recovery, Inc., 2:17-cv-00466-GZS (D. Me.).
Mexican national sentenced to 46 months in prison for reentering the U.S. illegally a sixth timeRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Mexican citizen was sentenced to 46 months in prison for reentering the United States illegally.
Jose Luis Gamez-Verdugo, 49, of Mexico, was sentenced by U.S. District Judge Dee D. Drell on one count of illegal reentry of a removed alien. According to the August 8, 2017 guilty plea, Gamez-Verdugo was found on April 9, 2017 in Vermilion Parish. After further investigation, it was determined that he had been removed from the United States on five previous occasions. The most recent removal was on June 16, 2011 in Brownsville, Texas.
United States Immigrations and Customs Enforcement and the Vermilion Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips prosecuted the case.
Mexican national sentenced to 15 months in prison for reentering the U.S. illegally for fourth timeRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Mexican citizen was sentenced to 15 months in prison for reentering the United States illegally for a fourth time.
David Acuna-Ontiveros, 31, of Nogolas, Sorora, Mexico, was sentenced by U.S. District Judge Dee D. Drell on one count of illegal reentry of a removed alien. According to the July 28, 2017 guilty plea, Louisiana State Police arrested Acuna-Ontiveros on April 24, 2017 at the Morgan City Department of Motor Vehicles. The defendant was attempting to obtain a driver’s license using a stolen identity. Acuna-Ovtiveros was found with another person’s driver’s license, birth certificate and Social Security card. He admitted after the arrest that he was in the United States illegally and had paid money for the stolen identity. After further investigation, law enforcement agents found that the defendant had been removed in February of 2005 and March of 2006. He was also arrested in December of 2012 and removed in September of 2013 after serving time for a felony.
United States Immigrations and Customs Enforcement and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Mexican national sentenced to 11 months in prison for illegally reentering the U.S. multiple timesRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Mexican citizen was sentenced to 11 months in prison for reentering the United States illegally after being removed at least three times.
Juan Jose Mendoza-Ibarra, 38, of Mexico, was sentence by U.S. District Judge Dee D. Drell on one count of illegal reentry of a removed alien. According to the September 1, 2017 guilty plea, the defendant was found to be in Lafayette in July of 2017 after an arrest. He had previously been removed from the United States at least three times on March 11, 2016, August 5, 2016 and February 10, 2017.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Mexican Citizen Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Juan Carlos Cruz Figueroa, age 30, and a citizen of Mexico, was sentenced today to time served (80 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Cruz Figueroa admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on November 7, 2007. Cruz Figueroa had also been removed to Mexico on September 22, 2007.
On September 11, 2017, ICE Officers arrested Cruz Figueroa in Saratoga Springs, New York.
Following his sentencing, Cruz Figueroa was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant United States Attorney Edward P. Grogan.
Maritime Instructor Sentenced for Conspiracy to Commit Wire Fraud and Wire FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MAURICE GEORGE, age 45, of Napoleonville, was sentenced today after previously pleading guilty to one count of Conspiracy to Commit Wire Fraud.
United States District Judge Eldon F. Fallon sentenced GEORGE to five years probation and ordered him to pay restitution in the amount of $334,892.
According to the court documents, GEORGE was employed by Beier Radio, L.L.C., located in Louisiana, which manufactured maritime electronics products including Dynamic Positioning Systems (“DPS”). DPS is a maritime vessel computer system that automatically maintains a vessel’s position and heading by using position reference sensors and the vessel’s propellers and thrusters. Beier operated a DPS training center in Gray, Louisiana under the name “The Marine Training Institute.” Beier’s Marine Training Institute provided technical and operational training courses for Beier DPS customers. In 2007, GEORGE began working as an instructor for Beier Radio’s Marine Training Institute and taught DPS courses at Beier’s Louisiana classroom facility. Typically, Beier charged tuition in the amount of $2,000 to $2,500 for their DPS courses.
Between 2007 and 2013, GEORGE devised a scheme to embezzle approximately $334,892 from Beier Radio. On approximately 225 occasions, GEORGE negotiated monetary payments of approximately $1,200 to $2,000 with “students,” which he kept for himself, in exchange for endorsing and certifying their log books and for issuing DPS certificates of training from Beier Radio. In order to conceal his activities, GEORGE failed to create invoices for his illegal transactions and failed to have DPS students complete registration materials
GEORGE instructed DPS students to pay him directly by check made payable to “MAURICE GEORGE.” GEORGE also forged the signatures of various employees of Beier Radio on the DPS training certificates. The Indictment alleges that GEORGE deposited the illegal payments into his personal checking account with ASI Federal Credit Union. It is important to note that the investigation determined the overwhelming majority of GEORGE’s students did actually attend the DPS courses.
“George’s greed not only stole money from the company he worked for, it put our Nation’s critical infrastructure at risk,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. “Because of these bogus certifications the possibility exists that someone could be injured or killed and we could face any number of potential environmental disasters.” Parmer is the Special Agent in Charge of the New Orleans field office with responsibility for Louisiana, Arkansas, Alabama, Mississippi, and Tennessee.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), as well as the U.S. Coast Guard Investigative Service who assisted HSI in this investigation. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Marion County woman admits to her role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A Fairmont, West Virginia woman has admitted today to distributing methamphetamines, United States Attorney Bill Powell announced.
Cassie Chase Poland, age 18, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine - Aiding and Abetting.” Poland admitted to aiding another in distributing methamphetamine in Randolph County in April 2017.
Poland faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.Man Sentenced to 9 Years Imprisonment for Being a Felon in Possession of a Firearm and Assaulting a Jackson Police OfficerRead the Press Release
Jackson, TN – Jeremy Seville Hall was sentenced to 9 years in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on December 26, 2016, an officer with the Jackson Police Department (JPD) conducted a traffic stop on a silver Kia Spectra that had a non-functioning driver’s side brake light. During the stop, the defendant, a backseat passenger in the vehicle, was found to have active warrants for his arrest. Hall opened the rear left passenger door and fled the area on foot while wearing a backpack.
The police officer gave chase and attempted to take Hall into custody. He assaulted the officer, putting him in a chokehold and attempted to flee while emptying the contents of the backpack. When additional officers arrived on the scene, they obtained control of Hall. Officers then noticed a Glock 27, .40 –caliber pistol on the ground at Hall’s feet. A search of Hall’s person, revealed two additional .40 caliber rounds of ammunition in the right front pocket of his pants. The firearm had been reported stolen from Brownsville, TN., on February 28, 2016.
United States Attorney D. Michael Dunavant said: "By collaborating with our law enforcement partners we will use every available resource to ensure the safety of our citizens. If you choose to illegally possess firearms anywhere within the 22-counties of the Western District of Tennessee, you will be met with aggressive and unrelenting federal prosecution. The professionals in the U.S. Attorney’s Office along with law enforcement partners are committed to aggressively removing individuals from our communities that commit these and other horrific crimes. This is our mission. Gun Crime is Max time."
On November 27, 2017, the Honorable S. Thomas Anderson, Chief United States District Court Judge, sentenced Hall to 9 years imprisonment and 3 years supervised release to begin after his incarceration. His sentence included a sentencing enhancement for assaulting a law enforcement officer during the offense.
"The Jackson Police Department is committed to working with the U.S. Attorney’s Office and our federal partner law enforcement agencies to continue to target violent individuals who commit crimes with guns. If you commit a crime in Jackson with a firearm that violates federal laws, you can expect to face the consequences."
The Jackson Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution, investigated this case.
Assistant U.S. Attorney Taylor Eskridge is prosecuting this case on the government’s behalf.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty yesterday in federal court in Boston to racketeering conspiracy involving the murder of a 15-year-old boy in East Boston.
Henry Josue Parada Martinez, a/k/a “Street Danger,” 22, a Salvadoran national formerly of East Boston and Montgomery County, Md., pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for March 1, 2018.
During an investigation of MS-13 in Massachusetts, Parada Martinez was identified as a member of MS-13’s Molinos clique, which operated in East Boston and other parts of Massachusetts. Parada Martinez admitted that on Sept. 7, 2015, he was one of four individuals who murdered a 15-year-old boy on Constitution Beach in East Boston. Agents subsequently recorded conversations with Parada Martinez in which he acknowledged being a member of MS-13, admitted that he was one of the men who murdered the victim, and identified other MS-13 members who committed the murder with him.
After a three-year investigation, Parada Martinez was one of 61 individuals named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. Parada Martinez is the 26th defendant to plead guilty in this case.
Parada Martinez faces up to life in prison, five years of supervised release, and will be subject to deportation upon completion of his sentence. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Herndon (VA) Police Chief Maggie A. DeBoard made the announcement.
Manchester Man Convicted of Drug Trafficking ChargesRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley today announced that, after a four-day trial, a jury returned guilty verdicts late Wednesday afternoon against Valentin Delo Perez Soto, also known as Miguel Angel Sanchez Caraballo, 49, of Manchester, New Hampshire.
Evidence presented at trial demonstrated that the defendant sold fentanyl and heroin to a cooperating individual on April 23, June 4, and October 2, 2015. A search warrant was executed at the defendant’s residence on Pearl Street in Manchester on November 2, 2015, where quantities of cocaine, oxycodone, and over 100 grams of heroin were recovered.
Perez Soto was convicted of one count of distributing fentanyl, two counts of distributing heroin, and one count of possessing cocaine, oxycodone and 100 grams of more of heroin with the intent to distribute.
Perez Soto, who is in custody, faces a mandatory minimum sentence of at least ten years and a maximum of life in prison. His sentencing has not yet been scheduled.
“This prosecution demonstrate the commitment of the U.S. Attorney’s Office to working with our law enforcement partners to stop the distribution of drugs in our communities,” said Acting U.S. Attorney Farley. “While we recognize that those who struggle with substance abuse require access to treatment, we will continue to work tirelessly to identify and prosecute those who are responsible for distributing these deadly substances in the Granite State.”
The investigation that led to this prosecution was co-led by the New Hampshire State Police and the FBI Safe Streets Gang Task Force. They were assisted by the U.S. Drug Enforcement Administration, Northeast Laboratory, and the Hillsborough County House of Corrections. The case was prosecuted by Assistant U.S. Attorneys Bill Morse and Anna Dronzek.
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Lynn Man Pleads Guilty to Counterfeit Steroid ConspiracyRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in federal court in Boston for his role in a conspiracy to traffic counterfeit steroids, including testosterone and trenbolone, to customers across the country.
Philip Goodwin, 37, pleaded guilty to one count of conspiracy to distribute controlled substances, one count of conspiracy to traffic counterfeit drugs, one count of trafficking counterfeit drugs, one count of possession with intent to distribute controlled substances, and one count of money laundering conspiracy. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 28, 2018.
In April 2017, Goodwin and five others, including Tyler Bauman, a/k/a “musclehead 320,” were arrested and charged with operating a counterfeit steroid operation on the North Shore.
According to court documents, from approximately May 2015 until April 12, 2017, the conspirators manufactured steroid products - made from raw materials purchased overseas - in Goodwin’s home, and marketed them as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., is a legitimate pharmaceutical company that does not manufacture steroids.
The defendants allegedly sold the steroids to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business located in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.
In August 2017, Bauman pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on Jan. 23, 2018.
The charges of conspiracy to traffic in counterfeit drugs and conspiracy to distribute controlled substances provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. The charge of possession of a controlled substance provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. The charge of trafficking in counterfeit drugs provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $5 million. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the laundering transactions. 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; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement today. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.
Local Investigative Team Wins Federal Law Enforcement Award for Murder InvestigationRead the Press Release
On November 30, 2017, five members of the team that investigated the May, 2011 killing of Tony Canfield were recognized for their efforts with the Federal Law Enforcement Officers Association (FLEOA) national group achievement award. The award ceremony took place at the Sioux City Police Department.
The FLEOA was founded in 1977, and is a non-profit organization that represents federal law enforcement agents across the nation, and currently represents more than 25,000 federal law enforcement agents from over 65 different agencies.
The recipients of the FLEOA award were FBI Special Agent Jonathan Moeller, Northern District of Iowa Assistant United States Attorney Forde Fairchild, Sioux City Police Department Detectives Heather Albrecht and Mike Simons and Minnehaha County Sheriff’s Office Captain Mike Walsh.
The national award stems from the recipients’ group efforts in the investigation of Sioux City resident Tony Canfield’s murder. The case began on May 1, 2011, when Mr. Canfield and his wife were robbed at gunpoint by three men. One of the robbers held and brutalized the wife, while the other two physically robbed Mr. Canfield of marijuana and cash. Mr. Canfield resisted his attackers and attempted to escape the robbery by fleeing his home. While fleeing, Mr. Canfield was shot and killed on his front porch. The crime went unsolved for five years, owing to the fact there was no forensic evidence identifying the perpetrators, and neither the murder weapon, nor any shell casings were recovered at the scene. In addition, the wife could not identify the robbers as they were wearing masks. Nonetheless, through dogged investigative work, which included numerous interviews conducted in a number of different states, the perpetrators were arrested and prosecuted. In 2016, all three defendants were convicted, and sentenced. The sentences ranged from 20 to 35 years’ imprisonment.
United States Attorney for the Northern District of Iowa Peter Deegan stated: “Our office is proud to count Assistant United States Attorney Forde Fairchild among those who helped bring Canfield’s ruthless killers to justice. The investigative team represents the very best in cooperative law enforcement and is most deserving of this prestigious award.”
Sioux City Police Chief Rex Muller added: “We are extremely proud of the working relationship we have with the local FBI Office and United States Attorney’s Office. This was a particularly challenging case that required the resources of multiple agencies to lead to a successful prosecution. These criminals presented a significant danger to the general public if not identified and arrested. The efforts of the investigators and prosecutors in this case over a five year period are a testament to their dedication to bring justice to this case, as well as bring some closure to the family of Tony Canfield. It is a fine example of the strong cooperation and capability that exists within Northwestern Iowa law enforcement community.”
In praising the investigative team, Minnehaha County Sheriff Mike Milstead said: “I’m proud that Captain Mike Walsh was able to provide valuable assistance to this joint investigation and help bring those responsible to justice. The team’s dedication, thoroughness and persistence paid off in ways far beyond the award they received today.”
Finally, FBI Special Agent Jon Moeller, a member of the award winning team, said: “Although this investigation took five years, it never really went ‘cold’. Diligently and persistently a team of investigators and analysts - spread over five states - and from multiple agencies, never stopped working this case. Together we brought three killers to justice, brought closure to the friends and family of Mr. Canfield, and a renewed sense of security to the whole community. It is an honor and privilege to work with these folks on a daily basis.”
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Leading Proxy Solicitation Firm Georgeson LLC Agrees to Pay $4.5 Million to Resolve Fraud ChargesRead the Press Release
BOSTON – New York-based proxy solicitation firm Georgeson LLC has entered into a deferred prosecution agreement and agreed to pay a $4.5 million criminal penalty to resolve the government’s criminal investigation into a conspiracy to bribe an employee of a proxy advisory firm as part of a scheme to defraud the advisory firm of confidential information about how its clients had voted on numerous shareholder proposals.
According to admissions made in the resolution documents, from September 2007 to March 2012, Georgeson, one of the nation’s leading proxy solicitation firms, conspired to provide tickets to concerts and sporting events to Brian M. Bennett, formerly known as Brian Zentmyer, an employee of one of the country’s leading proxy advisory firms, in order to obtain information about whether and how the proxy advisory firm’s clients had voted on particular shareholder proposals. Georgeson also admitted that its employees conspired to defraud Georgeson’s own clients by billing them for at least a portion of the cost of the bribes provided to Bennett, while falsely describing those charges in invoices as legitimate expenses.
Proxy advisory firms provide institutional investors with research, analysis and recommendations concerning proposals subject to vote by shareholders in publicly traded companies. The firms may also engage in ancillary businesses, such as helping clients cast their votes, also known as proxy ballots or proxies. Proxy solicitation firms, in turn, assist publicly traded companies in matters requiring shareholder approval by attempting to gather information about institutional investors’ holdings and the direction of their proxy votes. This information can help proxy solicitors and their clients determine whether particular shareholder proposals are likely to pass or fail, and can thus help to shape their strategies for affecting the outcome of shareholder votes.
In July 2015, Bennett pleaded guilty to an Information charging him with one count of conspiracy to commit wire fraud and honest services wire fraud. He was sentenced in January 2017 to one year of probation. In December 2016, Keith Haynes, a former senior managing director at Georgeson, pleaded guilty to an Information charging him with one count of conspiracy to commit wire fraud and honest services wire fraud. He has not yet been sentenced. Four other Georgeson employees have been charged in an indictment with conspiracy to commit wire fraud and honest services wire fraud, as well as substantive counts of wire fraud and honest services wire fraud. They are scheduled to stand trial in February 2018 in federal court in Boston. The details contained in the indictment against those individuals are allegations. They are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
As part of the deferred prosecution agreement, Georgeson has agreed to pay the criminal penalty, to continue to cooperate with the U.S. Attorney’s Office in the District of Massachusetts in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to retain an independent compliance consultant.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission. Assistant U.S. Attorney Stephen E. Frank, Chief of Weinreb’s Economic Crimes Unit, and Assistant U.S. Attorney Eric D. Rosen, also of the Economic Crimes Unit, are prosecuting the case.
Leader of Tuscaloosa Area Drug Ring Sentenced to 25 Years in PrisonRead the Press Release
TUSCALOOSA – A federal judge today sentenced the leader of a drug ring trafficking methamphetamine and cocaine in Tuscaloosa County to 25 years in prison, announced U.S. Attorney Jay E. Town, Bureau of Alcohol, Tobacco, Firearms & Explosives Special Agent in Charge Steven L. Gerido and West Alabama Narcotics Task Force Captain Phil Simpson.
U.S. District Judge L. Scott Coogler sentenced SANTONY MARKEI NOLAND, 32, also known as “Santony Markies Noland,” “San T” and “Black,” on one count of conspiracy to distribute 50 grams or more of methamphetamine between December 2016 and March 2017, and on one count of being a felon in possession of a firearm. Noland pleaded guilty to the charges in July.
Noland, of Tuscaloosa, is one of 10 defendants, all of whom have pleaded guilty to charges related to the drug-trafficking conspiracy. Three of the defendants remain to be sentenced.
"Multiple law enforcement agencies came together in this investigation and successfully took down an established cocaine- and methamphetamine-trafficking organization in the Tuscaloosa area," Town said. "This is an outstanding example of how robust partnerships between every level of law enforcement enables the dismantling of drug smuggling organizations and reduces the availability of illegal narcotics in our communities.”
“ATF, along with its partners, work diligently to protect the public from senseless acts of violence,” Gerido said. “ATF will remain vigilant as we engage with the community and foster a safe environment. Support from the public is crucial and the reporting of illegal activity is encouraged through ATF’s report it phone app.”
“We were glad to be able to partner with the ATF to get this violent drug offender off the streets,” Simpson said.
Noland has multiple felony convictions in Tuscaloosa County Circuit Court and a prior federal felony conviction from the Northern District of Alabama for being a felon in possession of a firearm on a previous occasion.
The ATF, WANTF and the Drug Enforcement Administration investigated the case. The task force is composed of officers from the Tuscaloosa County Sheriff’s Office, the Tuscaloosa, Northport and University of Alabama police departments, and the Tuscaloosa County District Attorney’s Office. Assistant U.S. Attorney Brad Felton is prosecuting the case.
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Kansas Man Indicted in Robbery, Attempted RobberyRead the Press Release
KANSAS CITY, KAN. – A Prairie Village man was indicted Wednesday on charges he robbed a shoe store, and attempted to rob a credit union, U.S. Attorney Tom Beall said.
John P. Gail, 49, Prairie Village, Kan., was charged with one count of commercial robbery, and one count of attempted robbery of a Credit Union. The indictment alleges that on Sept. 10, 2017, he robbed Payless Shoe Source at 4824 S. 4th Street in Leavenworth, Kan.
In addition, the indictment alleges that on Sept. 11, 2017, Gail attempted to rob the Community America Credit Union at 13590 S. Blackbob in Olathe, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on each count. The FBI, the Leavenworth Police Department and the Olathe Police Department investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
OTHER INDICTMENTS
Ronald James McNeil, 25, Charlotte, N.C., and Rock Sarousse Lamartiniere, 24, are charged with one count of wire fraud and one count of aggravated identity theft. The indictment alleges they used false identities to purchase cell phones at discounted prices from AT&T. The crimes are alleged to have occurred Aug. 31, 2017, in Johnson County, Kan.
If convicted, they face up to 20 years in federal prison and a fine up to $250,000 on the wire fraud count and two years (consecutive) and a fine up to $250,000 on the identity theft count. The Overland Park Police Department investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Jury Finds Mission Man Guilty of Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that Roger Watts, age 34, of Mission, South Dakota, was found guilty of Assaulting, Resisting, and Impeding a Federal Officer following a two-day jury trial in Pierre, South Dakota. The verdict was returned on November 29, 2017.
The charge carries a maximum sentence of up to 20 years in prison, and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Watts was indicted by a federal grand jury on February 15, 2017. The conviction stems from an incident that occurred on January 20, 2017, in the North Antelope Community near Mission. On that date, Rosebud Sioux Tribe Law Enforcement Services Officers were investigating an allegation that Watts had stolen property and questioned him at a home in North Antelope. After being questioned, Watts was informed he was being arrested. Watts became combative and charged at one of the officers, physically engaging him. A struggle ensued and the officer sustained a knee injury during the struggle.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for February 20, 2018.
Watts was remanded to the custody of the U.S. Marshals Service pending sentencing.
Jury Convicts Two Men of Conspiracy to Import HeroinRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two men today for their role in a conspiracy to import heroin and cocaine into the United States from El Salvador.
According to court records and evidence presented at trial, Rosemberg Martin Majano, 40, of Lithia Springs, Georgia, and Jose Alejandro Orellana Montalvo, 25, of Woodbridge, were participants in a conspiracy to smuggle more than $400,000 worth of heroin and cocaine into the United States from El Salvador. Majano carried the drugs in his checked luggage on a flight from El Salvador into Washington Dulles International Airport. When Majano arrived at the airport, officers with the U.S. Customs and Border Protection discovered the heroin and cocaine concealed within food packaging in his luggage. Majano admitted that he was being paid to deliver the packages to someone in the airport. In an ensuing surveillance operation, special agents with the Department of Homeland Security, Homeland Security Investigations, identified Orellana Montalvo as the individual who was to pick up the narcotics from Majano. Orellana Montalvo was arrested after he tried to pick up Majano outside of a restaurant in Herndon.
Each man faces a mandatory minimum of 10 years and maximum of life in prison when sentenced on March 30, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Casey Owen Durst, Director of CBP’s Baltimore Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorneys Thomas W. Traxler and Dennis M. Fitzpatrick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-204.
Internal Revenue Service Impersonation Scammers ArrestedRead the Press Release
United States Attorney Gregory J. Haanstad for the Eastern District of Wisconsin announced that pursuant to criminal complaints and arrest warrants issued by a United States Magistrate Judge in the Eastern District of Wisconsin four suspects in an Internal Revenue Service impersonation scam were arrested by local and federal law enforcement. Moin Gohil of Dunwoody, Georgia (age: 22), was arrested by local law enforcement authorities on November 24, 2017. Pratik Patel of Hoffman Estates, Illinois (age: 26), Parvez Jiwani of Tucker, Georgia (age: 39), and Nakul Chetiwal of Dunwoody, Georgia (age: 27), were arrested on November 28, 2017 by federal law enforcement authorities. All of these arrests were based on charges of violations of Title 18, United States Code, Sections 1343, 1349, 2 (Wire Fraud, Conspiracy to Commit Wire Fraud, and Aiding and Abetting). Each of these charges carries a maximum of 20 years imprisonment and a $250,000 fine.
According to the criminal complaint, Gohil, Chetiwal, and Jiwani were “runners” who used fraudulent identification cards to pick up fraud proceeds for a scheme likely originating from India. Patel aided and abetted at least one of the runners. In this scheme, which is sometimes referred to as an “IRS impersonation scheme,” members of the scheme (likely in India) call victims and make misrepresentations (typically, that the victim owes taxes) and cause the victims to wire money through a wire service, such as MoneyGram. Other members of the conspiracy (known as “runners”), such as Gohil, Chetiwal, and Jiwani, then use fraudulent identification cards to pick up the fraud proceeds. According to the complaint, Gohil, Chetiwal, and Jiwani picked up $666,537 sent from 784 victims during the period from January 25, 2016, through August 8, 2017. The false identities used by Gohil, Chetiwal, and Jiwani are linked to an additional 6,530 fraudulent transactions totaling $2,836,745.
The case was investigated by the Treasury Inspector General for Tax Administration Mid Atlantic Division and Southern Field Division as well as the Mount Pleasant, Wisconsin Police Department and the Federal Deposit Insurance Corporation Office of the Inspector General. The case is being prosecuted Assistant United States Attorney Zachary J. Corey.
A criminal complaint is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The public should be aware that the Internal Revenue Service (or any federal government agency) will never ask you to pay money to them via MoneyGram, RIA, Western Union, or especially iTunes or Steam (online gaming) gift cards.
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Inmate Indicted for Murder-For-Hire SchemeRead the Press Release
BOSTON – An inmate at the Essex County House of Corrections was indicted today in federal court in Boston in connection with a murder-for-hire scheme.
Mason Stickney, 20, of Byfield, was indicted on three counts of using a facility of interstate commerce in the commission of murder-for-hire.
According to court documents, in October 2017, Stickney, who was in custody at the Essex County House of Corrections, approached a fellow inmate and solicited his assistance in the murder of a police officer, a restaurateur from New Hampshire and a student. The fellow inmate reported Stickney’s solicitation to authorities. Thereafter, at the request of investigators, the inmate provided Stickney with the phone number of a would-be hitman, who was actually an undercover agent.
It is alleged that in recorded conversations between Nov. 3 and Nov. 8, 2017, both on the phone and in person at the jail, Stickney described to the undercover agent the individuals he wanted killed and how he wanted the murders committed. Stickney promised to pay the undercover agent $10,000 upon his release from jail, as well as to “get rid of three people for you guys.”
Each charge provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Essex County District Attorney Jonathan Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Essex County Sheriff Kevin F. Coppinger made the announcement. Assistant U.S. Attorney Robert Richardson of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Immigration Attorney Pleads Guilty to Fraud Scheme and Identity Theft in Relation to Visa ApplicationsRead the Press Release
An Indianapolis, Indiana immigration attorney pleaded guilty today for defrauding the U.S. Citizenship and Immigration Services (USCIS) and more than 250 of his clients by filing false visa applications and reaping approximately $750,000 in fraudulent fees.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge James M. Gibbons of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Chicago made the announcement.
Indianapolis immigration attorney Joel Paul, 45, of Fishers, Indiana pleaded guilty before U.S. District Judge Jane E. Magnus-Stinson of the Southern District of Indiana to an information charging him with one count each of mail fraud, immigration document fraud, and aggravated identity theft in connection with a scheme to submit fraudulent U-visa applications. Sentencing will be scheduled before Judge Magnus-Stinson in early 2018.
“Individuals who commit immigration fraud undermine and abuse our generous immigration system—a system that lawfully admits more immigrants than any other country in the world—and put our public safety and national security at risk,” said Attorney General Sessions. “President Trump promised voters he would return this country to a lawful system of immigration, and this Justice Department is committed to fulfilling that promise by rooting out fraud and abuse. We will not tolerate fraud at any level, and will bring those who engage in fraud to justice.”
According to the plea agreement, Paul admitted that from 2013 to 2017, he submitted more than 250 false Applications for Advance Permission to Enter as a Nonimmigrant on behalf of his clients and without their knowledge. Those applications falsely asserted that Paul’s clients had been victims of a crime and had provided substantial assistance to law enforcement in investigating the crime. With approximately 200 of the false applications, Paul submitted unauthorized copies of a certification he had obtained from the U.S. Attorney’s Office (USAO) for the Southern District of Indiana in 2013, using the certification without the USAO’s knowledge to falsely claim that the applicant had provided substantial assistance in a criminal prosecution. In total, Paul charged his clients approximately $3,000 per application.
HSI investigated the case. Trial Attorneys Molly Gaston, Peter M. Nothstein, and Amanda Vaughn of the Criminal Division’s Public Integrity Section are prosecuting the case.
Individuals who believe they may have been victims of the scheme described above or who have information about this matter can contact the Department of Justice by phone at (202) 514-1412.
Hoover Man Sentenced to Prison for Fraud Against Employers and UA Band Support GroupRead the Press Release
TUSCALOOSA – A federal judge today sentenced a Hoover man to more than two years in prison for stealing money from two former employers and a non-profit organization that supported the University of Alabama’s Million Dollar Band, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Court Judge L. Scott Coogler sentenced RANDALL SHO WOODS, 33, to two years and three months in prison on two counts of wire fraud and one count of bank fraud. Woods pleaded guilty to the charges in June.
“This case is yet another example of an employee stealing from a series of employers,” Town said. “Citizens have to trust those with access to bank accounts and confidential business information and when that trust is breached, there needs to be dire consequences.”
Ingram’s Accounting & Financial Management Inc. in Tuscaloosa had employed Woods as a staff accountant. While working at the business, Woods fraudulently charged more than $30,000 on corporate credit card accounts for personal expenses, according Woods’ guilty plea. Another company, Birmingham-based State Traditions, had previously employed Woods as an account clerk. While at State Traditions, Woods engaged in numerous fraudulent activities, including stealing from the company’s Pay-Pal account and forging the endorsement of one of State Traditions’ owners on multiple checks. Combined, Woods stole more than $150,000 from State Traditions, according to his plea. Finally, while Woods served as treasurer of the Million Dollar Band Association, he stole more than $28,000 by writing checks payable to himself, according to his plea.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
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Honduran National Sentenced for Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans, announced that LUIS ALONSO MUNOZ-MADRID, age 35, a citizen of Honduras, was sentenced today after previously pleading guilty to being in the United States illegally.
U.S. District Judge Nannette Jolivette Brown sentenced MUNOZ-MADRID to time served and ordered that he be remanded to the U.S. Marshals Service where he would then be surrendered to immigration authorities pursuant to an ICE detainer.
According to the court documents, on August 29, 2017, MUNOZ-MADRID was found in the Eastern District of Louisiana after having been previously deported from the United States on December 14, 2011.
Acting U.S. Attorney Evans praised the work of the Immigration and Customs Enforcement in investigating this matter.
Honduran Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Leonel Antonio Rodriguez Ayala, age 29, and a citizen of Honduras, pled guilty today to illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Rodriguez Ayala admitted that he was removed from the United States to Honduras on October 3, 2013, and that he returned to the United States without permission following the 2013 removal. On October 24, 2017, ICE Officers arrested Rodriguez Ayala in Saratoga Springs, New York.
Rodriguez Ayala faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States Judge Lawrence E. Kahn on March 29, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ICE-ERO and prosecuted by Assistant United States Attorney Edward P. Grogan.
Harrisburg Man Indicted on Firearms ChargeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daryl Davis, age 20, of Harrisburg, Pennsylvania, was indicted on November 29, 2017, by a federal grand jury on a firearms charge.
According to United States Attorney David J. Freed, the indictment alleges that on September 15, 2017, in Harrisburg, Davis unlawfully possessed a Taurus .40 caliber pistol as a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg City Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is ten years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hamilton Township Man Charged with Distributing Child Pornography of Five Year OldRead the Press Release
CINCINNATI – Jake M. Damron, 25, of Loveland, Ohio, was arrested yesterday and charged with receipt and distribution of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Hamilton Township Police Chief Scott Hughes and the FBI’s Child Exploitation Task Force announced the charge.
Damron was charged by a criminal complaint that was unsealed today at his initial appearance in federal court.
According to the affidavit filed in support of the complaint, Hamilton Township Police received a report on November 20 that Damron had taken pornographic pictures of a five year old to whom he had access. It was reported that Damron was trading images of the victim for other child pornography via the Kik messenger app.
During an interview with FBI agents, Damron confirmed that he had taken sexually explicit photographs of the five year old. He stated this was the only victim he had photographed and that he had “probably” taken them due to easy access.
Receipt and distribution of child pornography in this case is punishable by a range of five to 20 years in prison.
“I commend the investigation by the FBI and the Hamilton Township Police, particularly the speed with which they were able to act,” said U.S. Attorney Glassman. “This kind of close cooperation between federal and local law enforcement partners helps make urgent action possible.” U.S. Attorney Glassman further commended Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Government Contractor Convicted of Major Fraud against the United StatesRead the Press Release
Memphis, TN – After two days of the trial before U.S. District Judge John T. Fowlkes, Jr., the defendantM. Cleve Collins entered a plea of guilty to the indictment charging him with one count of major fraud against the United States. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to the indictment, M. Cleve Collins, aka Milton Cleve Collins aka Cleve Collins, 54, executed a scheme to defraud the United States on a construction contract valued at approximately one and one-half million dollars administered by the General Services Administration for the replacement of the roof and the air conditioning system at the Ed Jones Federal Courthouse and Post Office in Jackson, TN.
As part of the scheme to defraud, Collins caused the roofing subcontractor, a small Memphis-area business, to perform work for which he was never fully paid. Additionally, Collins filed false and fraudulent certifications with the U.S. Government indicating he had, in fact, paid the subcontractor. The value of the funds obtained because of this scheme was over $580,000.
"As the legal representative of the United States of America, it is the priority and duty of the U.S. Attorney’s Office to safeguard taxpayer funds, and to promote the responsible use and stewardship of such government resources for the benefit of our nation and our citizens. The major fraud committed by the defendant in this case is a serious crime of dishonesty and deceit that strikes at the very heart of those national interests, and will not be tolerated. The GSA and the FBI are to be commended for their diligent investigative work in uncovering and exposing this fraud, and I am pleased that we have achieved justice by holding the defendant accountable under the law," said D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.
On November 17, 2016, Collins was indicted on one count of violation of major fraud against the United States. The sentencing hearing is set for March 1, 2018. The maximum penalty for major fraud against the United States is not more than 10 years, not more than a $5,000,000 fine, 3 years supervised release and a special assessment of $100.
"Federal contractors are obligated to follow through on their promises to make payments to their subcontractors," said GSA Inspector General Carol Fortine Ochoa. "When contractors fail to meet their obligations, we will hold them accountable."
"The FBI takes particular interest in cases where individuals, for their own personal benefit, use deceit and fraud to line their pockets," said Michael T. Gavin, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. "Fraud has a negative and long lasting impact on the community, and the honest and law abiding citizens who are fed up with the likes of those who, motivated merely by greed, violate the law, should be assured by this conviction that the FBI is committed to work closely with its law enforcement partners to vigorously pursue anyone who commits such crimes."
This case was investigated by Special Agent Steve Heckler of the General Services Administration, Office of the Inspector General and Special Agent Brent Hayden of the FBI. Assistant U.S. Attorney Tony Arvin is prosecuting this case on the government’s behalf.
Georgia Man Sentenced to over 12 Years for Possessing Child Pornography and Failing to Register as a Sex OffenderRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that William Curtis Oliver, 53, of Dover-Foxcroft, Maine and formerly of Dougherty County, Georgia, was sentenced today in U.S. District by Judge John A. Woodcock, Jr. to 151 months in prison and 20 years of supervised release for possessing child pornography and failing to register as a sex offender. Oliver pleaded guilty to failing to register as a sex offender on December 13, 2016; he pleaded guilty to possessing child pornography on June 8, 2017.
Court records reveal that in January 2016, a detective with the Rosenberg, Texas police department who was affiliated with the Houston Internet Crimes Against Children Task Force, was monitoring certain internet sites. The detective was working in an undercover capacity and posing as a 14-year-old female child (“UC”). On January 27, 2016, the defendant wrote to the UC about traveling from Maine to see the UC and have sex. Over the next few weeks, the defendant sent several text messages to the UC. On about February 2, 2016, the defendant sent several images of prepubescent girls engaged in sexually explicit conduct to the UC.
The defendant has been in custody since his arrest on September 15, 2016, following a related investigation by federal and state authorities that revealed that the defendant had been convicted of child molestation in Georgia and had moved to Maine in December 2015 without complying with federal sex offender registry requirements.
In imposing sentence, Judge Woodcock said: “The need to protect the public from this defendant is clear.”
The investigation was conducted by the Rosenberg, Texas Police Department; the United States Marshal’s Service; Immigration and Customs Enforcement-Homeland Security Investigations; the U.S. Marshal’s Service, and the Dover-Foxcroft Police Department.
Franklin, Tennessee Man Sentenced to Federal Prison for Transporting Illegal AlienRead the Press Release
Ronald Edward Strickland, 69, of Franklin, Tenn., was sentenced today in U.S. District Court, to 30 months in prison, followed by 3 years of supervised release, for smuggling a Honduran woman into the United States, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Strickland was also ordered to pay a $75,000 fine by U.S. District Judge Sean Cox, who remarked that Strickland was a sexual predator who preys on young and vulnerable women and that he gave the families money so that they would allow him to have sex with their daughters.
Strickland, a retired Tennessee Highway Patrol sergeant, was arrested on a criminal complaint on August 1, 2016, and indicted on August 31, 2016. He pleaded guilty to the charge on June 20, 2017.
“The self-serving actions of this individual not only violated our nations’ immigration laws but placed the lives of vulnerable people in grave danger,” said U.S. Attorney Cochran. “We will continue to work closely with Homeland Security Investigations to aggressively pursue those who facilitate the illegal entry of persons into the U.S.”
According to court documents, in early 2016, Strickland devised a plan to smuggle a 22- year-old female from Honduras into the United States. Strickland texted the woman on January 7, 2016, about uniting with him and engaging in a sexual relationship. Strickland then began a series of text communications with an individual in Honduras and others, in which he discussed smuggling the woman into the United States. Strickland maintained the text communications, monitoring the progress of the woman’s journey, until he was notified that the woman had arrived in Houston, Texas.
Additional testimony and evidence introduced during court proceedings established that Strickland caused the woman to attempt to enter the U.S. twice before her third successful entry. He monitored her progress through social media and was aware of the dangers she faced during the journeys, including becoming lost in the desert for days in the middle of the summer with no supplies and being injured after having to jump from a train. During one of the woman’s journeys, Strickland messaged a family member and stated that his “friends” were under control of the Zetas (a violent Mexican criminal organization) and commented that it would be better if the women were caught by immigration officials. During another instance, the woman was not answering Strickland’s phone calls and Strickland threatened that if she had used him, he would obtain an arrest warrant against her alleging that she had stolen money from him and that would cause her to be put in jail and deported.
In July 2016, Strickland drove to Houston, Texas, where he picked up the woman and drove her to his home in Franklin, Tenn.
Acting on a tip, on July 22, 2016, Homeland Security Investigations (HSI) agents went to Strickland’s Franklin home, where they located the 22-year-old female. The subsequent investigation determined that the woman had been illegally smuggled into the United States and that Strickland had paid a coyote $8,000 to smuggle her from Honduras to the United States. The investigation also determined that Strickland maintained an apartment in Honduras and travelled there on a regular basis.
Assistant Special Agent in Charge Robert Hammer, who oversees HSI operations in Tennessee said, “HSI is committed to aggressively investigating those individuals that attempt to smuggle women into the country and illegally harbor them in their homes.”
In considering enhancements to the sentence, Judge Cox found that the perils of the woman’s journey were reasonably foreseeable to Strickland and that he was responsible for intentionally or recklessly creating a substantial risk of death or bodily injury to the woman being smuggled. Judge Cox particularly noted that she was under the control of armed smugglers and gang members; that women in her group were robbed and sexually molested; that she had to jump from a moving train; and that her group was sent into the desert alone, without food or water.
This case was investigated by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorneys Lynne T. Ingram and Henry Leventis.
Franklin County Man Charged with Dealing Heroin, Fentanyl, Cocaine that Resulted in DeathRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged David L. Dobbins, 38, of Urbancrest, Ohio, with seven charges related to distributing heroin, fentanyl and cocaine – including distribution that resulted in death – in a superseding indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Grove City Police Chief Jeffrey A. Pearson announced the charges.
The superseding indictment alleges that in February, Dobbins distributed heroin, cocaine and fentanyl that caused the death of at least one known individual. The victim was found dead at the Star City Inn in Grove City.
Dobbins is also charged with five counts of possession with intent to distribute the controlled substances and one count of possession of a firearm in furtherance of drug trafficking.
Dobbins was arrested April 14 and remains in custody. He was charged by an original indictment in October and this superseding indictment adds the charge of distributing heroin, fentanyl and cocaine that resulted in death.
Distributing narcotics that result in death is a federal crime that carries a potential sentence of 20 years to life in prison. Each possession with the intent to distribute count is punishable by up to 20 years in prison. Possessing a firearm while committing a drug trafficking crime is punishable by a range of seven years to life in prison, to be served consecutive to any other sentence.
U.S. Attorney Glassman commended the investigation of this case by the DEA and Grove City Police, and Assistant United States Attorney Timothy D. Prichard, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Fort Peck Meth Dealer Sentenced to PrisonRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that Mauri Gourneau was sentenced to 40 months in prison, four years of supervised release, and a $100 special assessment. U.S. District Judge Brian Morris presided over the hearing.
Gourneau previously entered a guilty plea to possession with intent to distribute methamphetamine. In April 2017, Gourneau was stopped by the Montana Highway Patrol on US Highway 2. Following a search of her vehicle and possessions, Gourneau was found in possession of a digital scale and a plastic baggie containing 76.7 grams of pure methamphetamine. Gourneau was selling methamphetamine on the Fort Peck Indian Reservation, primarily in Poplar.
In a sentencing memorandum filed in federal court, federal prosecutors noted, “The distribution of methamphetamine is crippling communities, including the Indian reservations. Possessing with the intent to distribute methamphetamine is an offense against society as a whole and the mere existence of methamphetamine is detrimental.” It continued “[Gourneau’s] possession of over 70 grams of pure methamphetamine in alarming considering how many people could purchase from her and get high.”
Judge Morris sentenced Gourneau to over three years in federal prison, with four years of supervised release to follow. Because there is no parole in the federal system, Gourneau will likely serve all of the time imposed by the court. In the federal system, Gourneau does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The Gourneau case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Fort Peck Tribes Department of Law and Justice, Roosevelt County Sheriff’s Office, and other federal, state, and local agencies.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Former State Senator Pleads Guilty to Child Sex TraffickingRead the Press Release
Oklahoma City, Oklahoma – RALPH ALLAN LEE SHORTEY, 35, of Oklahoma City, pleaded guilty today to child sex trafficking, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On September 5, 2017, a federal grand jury returned a four-count indictment against Shortey, who was an Oklahoma State Senator at the time of the alleged offenses. Counts 1 and 2 charged him with using a facility of interstate commerce on October 10 and 15, 2013, to transport child pornography. In particular, these child pornography counts alleged Shortey used his smartphone to send a video involving a prepubescent girl and videos involving young boys from his AOL email address to a Hotmail address and a Yahoo! address. Count 3 alleged Shortey produced child pornography by persuading a minor identified as John Doe to send him at least one image of Doe’s penis. This count alleged Shortey began communicating with Doe in February 2016 on Kik, a social media application, and that the production of child pornography took place between February 14, 2016, and March 8, 2017.
Count 4 charged Shortey with child sex trafficking for soliciting a minor to engage in a commercial sex act on March 8 and 9, 2017. According to the indictment, Doe advised Shortey via Kik on March 8 that he needed money for spring break. Shortey is alleged to have replied: "I don’t really have any legitimate things I need help with right now. Would you be interested in 'sexual' stuff?" The indictment stated that after Doe responded "yes," the Kik conversation included explicit references to sex acts. The indictment further alleged that just after midnight on March 9, Shortey drove Doe to a Super 8 Motel in Moore, Oklahoma, where Shortey rented a room with his credit card. Based on information provided by Doe’s father, officers of the Moore Police Department knocked on the motel room door at approximately 1:00 a.m. and allegedly discovered Doe with Shortey, whose backpack contained an open box of condoms.
This afternoon Shortey pleaded guilty to Count 4, the child-sex-trafficking count. In particular, he admitted to U.S. District Judge Timothy D. DeGiusti that he solicited Doe, who was a minor, to engage in a commercial sex act in and affecting interstate commerce, after having had a reasonable opportunity to observe Doe. The United States has agreed to dismiss the remaining three counts at the time of sentencing. At the conclusion of the hearing, the court ordered that Shortey be detained in the custody of the U.S. Marshals Service until sentencing, which will take place in approximately 90 days.
Shortey faces a mandatory minimum sentence of ten years in prison. He could receive a maximum sentence of life in prison. He will serve a term of supervised release after incarceration of at least 5 years and up to life and could be fined up to $250,000. He will also be required to pay restitution and a $5,000 special assessment.
This case is the result of an investigation by the Federal Bureau of Investigation and the Moore Police Department, with assistance from the Cleveland County District Attorney’s Office and the Oklahoma State Bureau of Investigation. Assistant U.S. Attorneys K. McKenzie Anderson and Brandon Hale are prosecuting the case. Reference is made to court filings for further information.
Former Postal Employee Sentenced to Prison and Ordered to Pay Almost $1.0 Million for Fraudulently Obtaining Workers' Compensation BenefitsRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that Deborah Joy Durand, a 55-year-old resident of Fruitland, Idaho, was sentenced to 15 months in prison, two years of supervised release, and ordered to pay $903,316.48 in restitution and forfeiture. U.S. District Court Judge Brian Morris Morris presided over the sentencing hearing.
At trial, the government presented the following evidence. Durand had a back injury from her job at the Post Office. She had back surgery and was unable to work for a period of time. But instead of returning to work when capable, Durand obtained total disability status. Special Agents from the U.S. Postal Service Office of Inspector General obtained evidence that Durand was feeding horses, lifting hay bales, jogging in the mornings, clearing land, running chainsaws, removing stumps from fallen trees, building fences, mowing the lawn every week, riding horses twice a week, and many other physically challenging activities.
Durand also participated in other physical activities including a lengthy three-day kayaking trip where she paddled approximately 30 miles in open ocean water, among other strenuous physical activities. Durand claimed she could not sit or stand for long, and she was “totally sedentary.” She even claimed she was unable to work in any capacity.
At trial, Durand was convicted of four counts of fraud related to obtaining workers’ compensation benefits. In total, Durand received over $664,828.16 based on her claims for workers’ compensation. Of that amount, she received $238,488.32 for wages, despite having the ability to work at least a desk job at the Post Office.
U.S. Attorney Kurt Alme stated, “The Federal Worker’s Compensation Program is there to help the truly injured. The public should be assured that individuals who defraud that Program in Montana will be held accountable. I applaud the efforts of the USPS Office of Inspector General and Ryan Weldon of our office in bringing this case to justice.”
This case was investigated by the USPS Office of Inspector General. Acting Executive Special Agent-in-Charge Jeff Krafels said, “The majority of Postal Service employees are dedicated, hardworking, and trustworthy professionals who would never consider engaging in criminal conduct. However, when attempts to defraud the Federal Workers’ Compensation Program arise, those acts will not be tolerated, and they will be vigorously investigated by the USPS Office of Inspector General. The Workers’ Compensation Program is designed to ensure that individuals injured during the performance of their duties receive appropriate medical care and compensation. The conviction and sentence in this case are a result of the commitment between the United States Attorney’s Office and the USPS Office of Inspector General, to ensure the integrity of the Federal Workers’ Compensation Program, and to hold those accountable for defrauding the program.”
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Durand will likely serve all of the time imposed by the court. In the federal system, Durand does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
Former Police Officer Pleads Guilty to Exploiting his Authority by Sexually Assaulting an IndividualRead the Press Release
Jerry Lynn Gragg, 40, a former police officer with the Savanna Police Department in Pittsburg County, Oklahoma, pleaded guilty today in federal court in Muskogee, Oklahoma, to one count of violating the civil rights of a female whom he sexually assaulted during a routine traffic stop.
According to court documents, on Jan. 21, 2017, Gragg, while on-duty, stopped a vehicle during the early hours of the morning while it was still dark outside. After approaching the vehicle, Gragg brought the female driver back to his marked patrol unit and directed her to sit in the front passenger seat. Given the coercive power of Gragg’s position as a law enforcement offer, and the physical disparity in size between Gragg and the victim, she could not escape from the patrol car. Thereafter, Gragg caused the victim to perform a sexual act on him against her will. Gragg admitted that he knew what he was doing was wrong and against the law, yet he did so anyway. Gragg further admitted that his acts included aggravated sexual abuse, which under federal law, requires force or putting the victim in fear of bodily injury, kidnapping, or death.
“The Department of Justice will not tolerate law enforcement officers who exploit their authority to sexually abuse individuals in their custody, thinking their actions will go without consequence because of the power they wield,” said Acting Attorney General John M. Gore. “The Civil Rights Division will continue to vigorously prosecute these cases.”
"I commend the strength and courage exhibited by the victim of this heinous act to come forward and provide law enforcement with the information necessary to hold the Defendant accountable for violating his oath to protect and serve his community." said U.S. Attorney Brian Kuester. "While the majority of law enforcement officers follow the laws they are sworn to uphold, this Office will continue to investigate and prosecute those who choose otherwise."
“This deliberate abuse of authority is a disgrace and embarrassment to all members of the law enforcement community,” said FBI’s Oklahoma City Division Special Agent in Charge Kathryn Peterson. “There is an added sense of betrayal when a fellow law enforcement official preys on the citizens he has sworn to protect.”
The terms of the plea agreement require Gragg to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements. A sentencing hearing has not been set.
This case is being investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Pittsburg County District Attorney’s Office and the Savanna Police Department. It is being prosecuted by Assistant United States Attorney Shannon Henson of the Eastern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Police Officer Pleads Guilty to Exploiting His Authority by Sexually Assaulting an IndividualRead the Press Release
MUSKOGEE, OKLAHOMA – Jerry Lynn Gragg, 40, a former police officer with the Savanna Police Department in Pittsburg County, Oklahoma, pleaded guilty today in federal court in Muskogee, Oklahoma, to one count of violating the civil rights of a female whom he sexually assaulted during a routine traffic stop.
According to court documents, on January 21, 2017, Gragg, while on-duty, stopped a vehicle during the early hours of the morning while it was still dark outside. After approaching the vehicle, Gragg brought the female driver back to his marked patrol unit and directed her to sit in the front passenger seat. Given the coercive power of Gragg’s position as a law enforcement offer, and the physical disparity in size between Gragg and the victim, she could not escape from the patrol car. Thereafter, Gragg caused the victim to perform a sexual act on him against her will. Gragg admitted that he knew what he was doing was wrong and against the law, yet he did so anyway. Gragg further admitted that his acts included aggravated sexual abuse, which under federal law, requires force or putting the victim in fear of bodily injury, kidnapping, or death.
“The Department of Justice will not tolerate law enforcement officers who exploit their authority to sexually abuse individuals in their custody, thinking their actions will go without consequence because of the power they wield,” said Acting Assistant Attorney General John M. Gore. “The Civil Rights Division will continue to vigorously prosecute these cases.”
"I commend the strength and courage exhibited by the victim of this heinous act to come forward and provide law enforcement with the information necessary to hold the Defendant accountable for violating his oath to protect and serve his community." said U.S. Attorney Brian Kuester. "While the majority of law enforcement officers follow the laws they are sworn to uphold, this Office will continue to investigate and prosecute those who choose otherwise."
“This deliberate abuse of authority is a disgrace and embarrassment to all members of the law enforcement community,” said FBI’s Oklahoma City Division Special Agent in Charge Kathryn Peterson. “There is an added sense of betrayal when a fellow law enforcement official preys on the citizens he has sworn to protect.”
The terms of the plea agreement require Gragg to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements. A sentencing hearing has not been set.
This case is being investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Pittsburg County District Attorney’s Office and the Savanna Police Department. It is being prosecuted by Assistant United States Attorney Shannon Henson of the Eastern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
Former Federal Agent Pleads Guilty to Accepting Bribes to Dismiss Indictment Against Colombian Narcotics KingpinRead the Press Release
A former U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Special Agent pleaded guilty today to accepting bribes in exchange for securing the dismissal of a drug trafficking indictment filed against a Colombian cocaine trafficker, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
According to admissions in his plea agreement, Christopher V. Ciccione II, 52, of Phoenixville, Pennsylvania, accepted cash and other things of value and used his official position to cause a drug trafficking indictment against Colombian national Jose Bayron Piedrahita Ceballos to be dismissed and to obtain official authorization for Piedrahita and his family to enter the United States. Piedrahita and Colombian national Juan Carlos Velasco Cano, 49, gave Ciccione approximately $20,000 in cash, as well as dinner, drinks and prostitution during an extended hotel stay in Bogota, Colombia, in exchange for official acts that resulted in the dismissal of the indictment against Piedrahita. Velasco, who previously pleaded guilty, served as the intermediary between Ciccione and Piedrahita.
Ciccione admitted that in furtherance of this scheme to obstruct justice, he misled the U.S. Attorney’s Office and HSI management and altered law enforcement records to represent to decision makers that Piedrahita was a “former” suspect of a closed investigation, rather than a “current” subject, who was “never positively identified” and that his case should be dismissed— all while maintaining contact with Piedrahita. Ciccone also falsified the concurrence of several other federal agents and attempted to parole Piedrahita into the United States.
Ciccione will be sentenced on Feb. 9, 2018, before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. Piedrahita is currently incarcerated in the Republic of Colombia.
The U.S. Department of the Treasury’s Office of Foreign Assets Control designated Piedrahita as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act on May 3, 2016.
ICE’s Office of Professional Responsibility, Department of Homeland Security’s Office of Inspector General and the FBI investigated the case. The Criminal Division’s Office of International Affairs, the Office of the Judicial Attaché in Colombia and the Drug Enforcement Administration provided valuable assistance to the investigation. The Colombian Attorney General’s Office also provided invaluable support. Trial Attorneys Luke Cass and Jennifer A. Clarke of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Bank Executive Charged for Role in $15 Million Bank Loan SchemeRead the Press Release
A former Kansas bank executive was charged in an indictment filed today for his participation in a bank fraud scheme to obtain a $15 million construction loan from 26 Kansas banks based on allegedly false information contained in the loan documents.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge David Anderson of the Federal Deposit Insurance Corporation Office of Inspector General’s (FDIC-OIG) Kansas City Regional Office, Special Agent in Charge Karl A. Stiften of the Internal Revenue Service Criminal Investigation’s (IRS-CI) St. Louis Field Office, Special Agent in Charge Darrin E. Jones of the FBI’s Kansas City Field Office and Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region Office made the announcement.
Troy A. Gregory, 50, of Lawrence, Kansas, was charged in an indictment filed in the District of Kansas with one count of conspiracy to commit bank fraud, four counts of bank fraud, and two counts of false statements.
According to the indictment, Gregory was a bank executive and loan officer who had made millions of dollars in loans to a group of borrowers who were struggling to make payments on the loans. The indictment alleges that beginning in approximately late 2007, Gregory began the process of making a $15.2 million construction loan to build an apartment complex to that same group of borrowers. The indictment further alleges that Gregory’s bank shared this loan with 25 other Kansas banks. Gregory allegedly made or caused others to make false statements to the banks about the strength of the borrowers, the debt status of the apartment property and the existence of approximately $1.7 million in certificates of deposit for collateral on the loan, all to get the loan approved. Instead of using the loan funds promised for building the apartments, Gregory allegedly immediately diverted over $1 million of the loan to pay for part of the certificates of deposit pledged as collateral, pay off debt on the apartment property and make payments on unrelated loans. Other Kansas banks that shared in this loan allegedly would not have participated in the loan without the false representations and promises.
The indictment alleges that the banks ultimately wrote off millions of dollars on the $15.2 million construction loan.
An indictment is merely an allegation and all defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The FDIC-OIG, IRS-CI, FBI and FHFA-OIG are investigating this matter. Trial Attorney Andrew R. Tyler and Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country, focusing on cases of national significance and international scope. Fraud Section prosecutors have vast experience in investigating and prosecuting securities and financial fraud, health care fraud and foreign corruption. The Section is routinely the national leader in large, sophisticated white collar investigations and prosecutions, frequently in partnership with U.S. Attorneys’ Offices and in coordination with foreign law enforcement agencies.