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29 November 2017
SBM Offshore N.V. and United States-Based Subsidiary Resolve Foreign Corrupt Practices Act Case Involving Bribes in Five CountriesRead the Press Release
SBM Offshore N.V. (SBM), a Netherlands-based company specializing in the manufacture and design of offshore oil drilling equipment, and its wholly owned U.S. subsidiary, SBM Offshore USA Inc. (SBM USA), have agreed to resolve criminal charges and pay a criminal penalty of $238 million in connection with schemes involving the bribery of foreign officials in Brazil, Angola, Equatorial Guinea, Kazakhstan and Iraq in violation of the Foreign Corrupt Practices Act (FCPA). SBM USA pleaded guilty today in connection with the resolution.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Houston Field Office made the announcement.
“This corrupt scheme involved some of the highest-level executives within the company, spanned five countries, and lasted for more than a decade,” said Acting Assistant Attorney General Cronan. “The resolution announced today demonstrates the Criminal Division’s continuing commitment to work closely with our foreign partners to hold both companies and individuals accountable for their actions as we continue to level the playing field for ethical and honest businesses to compete in the marketplace.”
“Deterring corporate crime requires enforcing the law on multiple fronts,” said Acting U.S. Attorney Martinez. “These cases involve both individual and corporate misconduct, which the guilty pleas reflect. We will continue to aggressively investigate and prosecute individuals and corporations who violate the FCPA and those who misuse our financial system to do so.”
“This case exemplifies how HSI works diligently with our foreign law enforcement partners to promote and protect international trade practices, ensuring a fair and equal playing field for U.S. companies and consumers,” said HSI Special Agent in Charge Dawson.
SBM entered into a deferred prosecution agreement in connection with a criminal information filed today in the Southern District of Texas charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to U.S. District Judge David Hittner. In addition, SBM USA pleaded guilty and was sentenced by Judge Hittner on a one-count criminal information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the Department, SBM agreed to pay a total criminal penalty of $238 million to the United States, including a $500,000 criminal fine and $13.2 million in criminal forfeiture that SBM agreed to pay on behalf of SBM USA.
According to the companies’ admissions and court documents, beginning by at least 1996 and continuing until at least 2012, SBM conspired to violate the FCPA by paying more than $180 million in commissions to intermediaries, knowing that a portion of those commissions would be used to bribe foreign officials in Brazil, Angola, Equatorial Guinea, Kazakhstan and Iraq. SBM made these payments in order to influence those officials, for the purpose of securing improper advantages and obtaining or retaining business with state-owned oil companies in the five named countries. SBM acknowledged that it gained at least $2.8 billion from projects it obtained from these state-owned oil companies.
The Justice Department resolution follows guilty pleas by two former SBM executives. On Nov. 9, Anthony Mace, the former CEO of SBM and a former member of the board of directors of SBM USA, pleaded guilty to one count of conspiracy to violate the FCPA. On Nov. 6, Robert Zubiate, a former SBM USA executive, pleaded guilty to one count of conspiracy to violate the FCPA. Mace and Zubiate are awaiting sentencing.
In 2014, SBM settled with the Dutch Public Prosecutor’s Office (Openbaar Ministerie) over related conduct and paid the Netherlands a total $200 million in disgorged profits and a $40 million fine. SBM has paid a combined worldwide total in criminal penalties in excess of $475 million.
The Department reached this resolution based on a number of factors, including the fact that while SBM brought the conduct to the attention of the Criminal Division’s Fraud Section and Dutch authorities, it did not provide a complete disclosure for approximately one year; that SBM did cooperate with the Department’s investigation, including an accelerated investigation into bribery conduct related to Kazakhstan and Iraq; and that SBM has undertaken significant remedial measures, including terminating and demoting employees who were involved in the criminal conduct, terminating longstanding agency agreements and implementing a new and enhanced system of internal controls to address and mitigate corruption and compliance risks. Therefore, SBM was entitled to a 25 percent reduction off of the bottom of the U.S. Sentencing Guidelines range. In addition, the Department considered SBM’s inability to pay a fine.
In calculating its fine, the Department credited SBM’s payment of penalties to the Openbaar Ministerie and the payment of penalties likely to be paid to the Brazilian Ministério Público Federal (MPF).
The Department of Justice is grateful to Brazil’s MPF, the Netherlands’ Dutch Public Prosecutor’s Office (Openbaar Ministerie) and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
ICE-HSI investigated the case. Trial Attorney Dennis R. Kihm and Assistant Chief Tarek Helou of the Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter. The FBI’s International Corruption Squad and the Internal Revenue Service’s Criminal Investigation Division assisted with portions of the investigation of this case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Philadelphia Man Sentenced to 10 and ½ Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
Steven Ronald Randall, 25, of Philadelphia, Pennsylvania, was sentenced to 126 months incarceration in federal prison following his conviction on 2 counts of bank fraud and 10 counts of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen.
As part of his guilty plea and in connection with his sentencing, Randall admitted that he used social media service Facebook to solicit persons to provide him with their bank ATM cards and PIN numbers so that he could deposit bad checks into their accounts and withdraw the funds before the banks and other financial institutions realized that the checks were bad. Randall admitted that he recruited approximately 30 people in this manner, that he went to numerous ATM machines in Philadelphia and the surrounding area to make the deposits and withdrawals, and also that he used the ATM cards and PIN numbers at various stores, including Walmart, CVS, RiteAid, Wawa, 7-Eleven, Pathmark, and Giant, to purchase goods and obtain cash back prior to the banks discovering that the checks were bad.
In addition to the prison sentence, U.S. District Judge Joseph F. Leeson, Jr. ordered Randall to pay $51,567 restitution to Citizens Bank and $799 restitution to TD Bank.
The case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney Michael S. Lowe.
Philadelphia Duo Charged with Firearms OffensesRead the Press Release
Darrell Wylie, 25, and Namir White, 27, of Philadelphia, Pennsylvania, were charged today by Indictment with interference with interstate commerce by means of robbery, brandishing a firearm during and in relation to a crime of violence, and theft of government funds, announced United States Attorney Louis D. Lappen. Wylie was further charged in the Indictment with unlawfully possessing a firearm, having previously been convicted of a felony.
The Indictment alleges that the offenses were committed in Philadelphia on or about November 2, 2017, when Wylie and White committed the armed robbery of a person working on behalf of federal investigators, after having offered to sell three firearms to the person.
If convicted as charged, Wylie and White each face a maximum possible sentence of life imprisonment, as well as a minimum term of imprisonment of seven years, and supervised release for a maximum of five years. Wylie further faces a maximum fine of $1,000,000 and $400 in special assessments, while White faces a maximum fine of $750,000 and $300 in special assessments.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorneys Joseph A. LaBar and Seth Schlessinger.
Parkville Man Sentenced for Computer Hacking, Accessing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Parkville, Mo., man who was under investigation for hacking into his former employer’s computer system, was sentenced in federal court today for both the intrusion charge and for using a computer to view thousands of images of child pornography.
Jacob Raines, 38, of Parkville, was sentenced by U.S. District Judge Howard F. Sachs to six years in federal prison without parole.
On May 23, 2017, Raines pleaded guilty to one count of computer intrusion and one count of accessing a computer in order to view child pornography over the Internet.
Raines worked as the information technology manager for American Crane & Tractor Parts in Kansas City, Kan., from July 2004 until his resignation on March 28, 2014. The company’s new IT manager removed Raines’s computer passwords and made other security changes associated with the transition to a new IT manager. However, while utilizing the computer previously assigned to Raines, the new IT manager noticed that someone had logged into the computer remotely and copied files to an off-site server.
An examination revealed the company’s proprietary source code files and file folders were copied to Raines’s remote server during several sessions from May 16 to May 18, 2014. Law enforcement officers executed a search warrant at Raines’s residence on April 2, 2015, for evidence of the computer intrusion and theft of trade secrets. Copies of the proprietary source code for the company were on Raines’s home computer.
This proprietary source code is considered a trade secret by American Crane & Tractor Parts, which provides it a competitive advantage in its industry. The value of the proprietary source code exceeds $5,000, and the copying of this source code would provide a commercial advantage and a private financial gain to others.
According to court documents, Raines acted against his employer of almost a decade in a manner that could have potentially caused significant financial harm to the company. While it is not clear that Raines transferred the firm’s source codes to a third party once he stole them, it is certain he had the connections and means to provide them to at least one of the firm’s largest competitors.
Investigators also discovered that Raines had used his home computers and hard drives to access child pornography over the Internet since Nov. 13, 2013. Raines utilized peer-to-peer, file-sharing software to search for child pornography. Investigators discovered more than 7,000 files of child pornography images and videos on a DVD. Located in the hard drive of another desktop computer belonging to Raines were over 3,900 thumbnail images and 260 icon images of child pornography carved from unallocated space. Over 6,000 additional images and 25 videos of child pornography were also carved from the unallocated space of a separate loose hard drive belonging to Raines.
According to court documents, a recurring theme in the images Raines possessed and accessed was the graphic depiction of the rape and sodomy of pubescent and prepubescent girls, some as young as babies and toddlers, by adult men. Raines also possessed and accessed numerous images of young boys and girls engaging in sexually explicit conduct with other minors.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI.
Pair of USP Lee Inmates Sentenced for EscapeRead the Press Release
Abingdon, VIRGINIA – A pair of inmates serving time at United States Penitentiary Lee County in Jonesville, Virginia, who escaped in May 2017, were sentenced to additional prison time yesterday in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney Rick A. Mountcastle announced.
Salah Mohamed, 36, was sentenced yesterday to 60 months in prison. He previously pleaded guilty to one count of conspiracy to escape or attempt to escape a correctional facility and one count of escape from a correctional facility. Kamal Qazah, 38, was also sentenced yesterday to 60 months in prison. He previously pleaded guilty to one count of conspiracy to escape or attempt to escape a correctional facility and one count of escape from a correctional facility.
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Mohamed and Qazah were inmates serving prison time at USP Lee prison camp. Mohamed was serving 172 months and Qazah was serving 216 months when in May 2017 they failed to show-up for the 5:00 p.m. inmate count. USP officials discovered that Mohamad and Qazah had walked away from the camp and were likely picked-up by another person on a nearby road outside of the grounds of USP Lee. Nineteen days later the United States Marshals Service was able to locate Mohamed and Qazah in Mexico City, Mexico and take them into custody. Found in their possession were forged Yemeni passports and United States currency.
The investigation of the case was conducted by the United States Marshals Service. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Oxford Man Sentenced for Felon in Possession of a Firearm and AmmunitionRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr. announced that today in federal court today, Senior United States District Judge W. Earl Britt, sentenced TEVIN TIA’MANE NORWOOD, 25, of Oxford, NC to 100 months of imprisonment followed by 3 years of supervised release.
NORWOOD was named in an Indictment filed on April 18, 2017. NORWOOD subsequently pled guilty to one-count of Felon in Possession of a Firearm and Ammunition. On July 18, 2017, NORWOOD pled guilty to the charge.
On October 10, 2016, Oxford Police officers observed NORWOOD driving erratically. After a short vehicle pursuit, NORWOOD jumped out of his vehicle while it was still in gear and fled; however, he was captured following a brief foot chase. The vehicle continued into an embankment, thus recklessly endangering anyone in the area. A search of the path of flight taken by NORWOOD resulted in the recovery of a stolen, Glock .40 caliber firearm with one bullet in the chamber. This firearm was positively identified as the same firearm used by NORWOOD in a previous shooting several days earlier also in Oxford. A box of .40 caliber ammunition was found in NORWOOD’S vehicle. NORWOOD subsequently provided an unprotected statement that the Glock firearm was his.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Butner Department of Public Safety, Oxford Police Department, Durham Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney Daniel P. Bubar handled the prosecution of this case for the government.
North Platte Resident Sentenced on Child Pornography ChargesRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Gale Robert Gibbs, 67, formerly of North Platte, Nebraska, was sentenced today in Lincoln, Nebraska, to 37 months in prison by Senior United States District Judge Richard G. Kopf, for possessing child pornography. Gibbs was also ordered to pay $1,000.00 in restitution to the victims and will serve 10 years of supervised release and be required to register as a sex offender.
The North Platte Police Department was contacted by a technician at a computer shop in North Platte after Gibbs took his computer in for repairs. While examining the computer the technician found a number of thumbnails of images depicting child erotica and child pornography.
On August 31, 2016, the North Platte Police Department obtained a search warrant for Gibbs’ residence and seized the laptop. After forensic examination approximately 67 images were found on his computer, including 27 images identified by the National Center for Missing and Exploited Children as known victims from outside the State of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the North Platte Police Department.
North Carolina Man Pleads to Being a Felon in Possession of a Firearm and Ammunition Stemming from Mall StandoffRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that James Jacob Parrish, Jr., age 26, of Fayetteville, North Carolina, pled guilty in federal court to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Section 922(g)(1). Chief United States District Judge Terry L. Wooten accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court established that at approximately 8:00pm on Sunday, March 26, 2017, deputies with the Richland County Sheriff’s Department (“RCSD”) were dispatched to an alarm and shots-fired call at Columbia Mall on Two Notch Road. The mall was closed at that time. Deputies located a vehicle registered to Parrish parked in the median of the mall parking lot with a flat front tire and noticed bullet holes in the glass door of the Sears Automotive Department with spent 9mm shell casings lying on the sidewalk in front of the door. Upon making entry into the Sears Automotive Department, deputies noticed an interior glass door had been shot out as well.
The RCSD’s Special Response Team (“SRT”) responded to the scene and ultimately located Parrish barricaded inside an interior room. SRT tried to negotiate with Parrish to surrender peacefully and during the negotiations, Parrish made threats to shoot the officers. After unsuccessful negotiations, SRT made entry into the room and encountered Parrish pointing a loaded Kahr 9mm handgun at them. SRT was able to safely apprehend Parrish and placed him under arrest. Parrish was transported to a local hospital for medical treatment for a foot injury he sustained when he fell through a ceiling while trying to escape detection. While at the hospital, Parrish attempted to take a handgun from a deputy.
Parrish is prohibited under federal law from possessing firearms and ammunition based upon his prior North Carolina state convictions for carrying a concealed firearm (2002), possession of stolen goods (2003), possession of cocaine (2003), sell of cocaine (2003), possession with intent to distribute counterfeit currency (2003), second degree murder, second degree kidnapping, attempted robbery with a deadly weapon, and sell of cocaine (2005). Parrish had been released from a North Carolina prison in 2015.
Parrish faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the RCSD and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Newport News Carjacker Sentenced to 12 Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 12 years in prison for an August 2016 carjacking of a man in a hotel parking lot in Newport News.
According to court documents, Adrian Briggs, 21, approached the victim’s car and asked to borrow his cell phone. The victim obliged and Briggs made small talk with the man, used the victim’s phone, and asked the victim for bus fare, which the victim provided. After approximately 30 minutes, Briggs pulled a firearm from his waistband and threatened to shoot the victim. Briggs then stole the victim’s car, wallet, and cell phone. The Newport News Police located the victim’s car the following day, and matched a fingerprint found on an item in the car to Briggs. Law enforcement also pulled phone records from the victim’s cell phone and found that Briggs had called his mother from the victim’s phone twice on the morning of the crime. In between the calls, Briggs also used the victim’s credit card to rent movies at a Redbox in Hampton.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Michael C. Grinstead, Acting Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Bethany Lipman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-33.
New Jersey Fishmonger Arrested for Stealing over $900,000 in Checks from Fulton Fish MarketRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Daniel D. Brownell, the Commissioner of the New York City Business Integrity Commission (“BIC”), announced today the unsealing of a complaint charging VINCENT PERRETTI with bank fraud and conspiracy to commit bank fraud in connection with a scheme to steal over $900,000 in checks from his employer at the Fulton Fish Market. PERRETTI was arrested this morning and was presented this afternoon before Magistrate Judge Debra Freeman in federal court in Manhattan.
Manhattan Acting U.S. Attorney Joon H. Kim said: “As alleged, Vincent Perretti’s fishy scheme involved stealing nearly a million dollars from his employer and spending it on trips and jewelry. Thanks to the outstanding investigative work of the NYPD, Perretti’s alleged two-year scheme has gone belly up.”
Commissioner Daniel D. Brownell said: “Vincent Perretti allegedly directed a blatant, long-term fraud in the Fulton Fish Market, stealing nearly $1 million from his own employer. As the regulator for all of the City’s public wholesale markets, BIC will continue to work to keep the markets fair and competitive, free from corruption and theft.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
Over a two-year period, PERRETTI and a co-conspirator who also worked at the Fulton Fish Market entered fake invoices into their employer’s accounting system, causing the employer to issue unauthorized checks to PERRETTI for shipments of fish that were neither ordered nor delivered. PERRETTI then cashed the checks and spent the money on personal items, including jewelry and trips to the Bahamas.
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PERRETTI, 49, of Aberdeen, New Jersey, is charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, and one count of bank fraud, which carries a maximum sentence of 30 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Business Integrity Commission and the New York City Police Department.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Adam S. Hobson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Neosho Man Sentenced to 40 Years for Sexual Exploitation of a MinorRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man was sentenced in federal court today for producing child pornography.
James Lyndon McFadin, Jr., 34, of Neosho, was sentenced by U.S. District Judge Beth Phillips to 40 years in federal prison without parole. McFadin has been incarcerated in federal custody since his arrest on Dec. 21, 2015.
On July 7, 2017, McFadin pleaded guilty to six counts of enticing a minor to engage in sexually explicit conduct for the purpose of producing child pornography and one count of receiving and distributing child pornography.
McFadin used six children – four females and two males, who ranged in age from approximately 5 to 16 years old – to produce child pornography between Jan. 1 and Dec. 19, 2015. McFadin video-recorded illicit sexual activity between himself and one of the child victims, identified as “Jane Doe 1” in court documents. McFadin also had Jane Doe 1 to send him sexually explicit images of herself and the other child victims.
Law enforcement officers executed a search warrant at McFadin’s residence and seized a laptop computer, a computer hard drive and a computer tower. Investigators discovered multiple videos and photos of child pornography, including the child victims, on McFadin’s devices and cell phone.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Southwest Missouri Cyber Crime Task Force and the Neosho, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Members and Associates of Violent Louisville Street Gang Charged in 40 Count Indictment with Conspiring to Obtain Firearms for Convicted FelonsRead the Press Release
Arrests resulted from Louisville Metro Intelligence Joint Task Force
Charges included 32 firearms, ammunition, and explosive materials
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman, joined by Special Agent in Charge Louisville Field Division of Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Stuart L. Lowrey, Louisville Metro Police Chief Steve Conrad, and Special Agent in Charge Federal Bureau of Investigation Amy Hess, announced the results today, of an ongoing investigation in to violent criminal activity, within Jefferson County, Kentucky, with the indictment and arrests of members and associates of the Victory Park Crips. These charges result from an investigation by Louisville Metro Intel (LM Intel): an intelligence-led task force which identifies serious, violent offenders and leverages all available resources to investigate, apprehend and prosecute these offenders. The LM Intel Joint Task Force was announced in January of 2017, and includes the United States Attorney’s Office, federal investigative agencies, state prosecutors and Louisville Metro Police.
The forty-count superseding indictment was unsealed late yesterday afternoon following the arrests of Chicoby Summers, 22, Shelby Strong, 33, Jerlen Horton, 23, Derrick Hammond, 33, and Lakeshia Watts, 23. All are from Louisville and are in federal custody following their initial appearances before United States Magistrate Judge Colin H. Lindsay, late yesterday afternoon in Louisville.
At all times relevant to the conspiracy, Hammond, Summers, and Horton were convicted felons, and they had close relationships with each other as well as other members of the Victory Park Crips (VPC), a violent street gang operating primarily in the west end of Louisville. Lakeshia Watts shared a residence with Horton and Shelby Strong was an associate of Hammond. Members and associates of the VPC use firearms to aid narcotics trafficking, preserve and protect power and reputation by intimidation and violence against rival gangs. The culture of the VPC glorifies guns and violence, and firearms are a status symbol to members.
According to the charges, beginning in February of 2017, the defendants conspired to obtain firearms through the use of straw purchasers (associates who had no felony convictions and could lawfully purchase firearms). It was further part of the conspiracy that firearms purchased by straw purchasers were transferred ultimately to convicted felons, aided and abetted by others. Federal law prohibits convicted felons from purchasing or owning firearms, prohibits a buyer from purchasing a weapon on behalf of another person, and prohibits an unlawful user of a controlled substance to possess a firearm.
All defendants are charged in count one with conspiracy to possess a firearm by a prohibited person. Defendants Horton, Hammond and Watts are further charged with conspiring to corruptly obstruct, influence, and impede an official proceeding. Additionally, Strong is charged with engaging in the business of dealing in firearms without a license. Strong is further charged with making material false statements in order to acquire firearms from River City Firearms and Cabela’s and for illegally possessing firearms as a habitual drug user. Strong is also charged, along with Hammond, for transferring firearms to convicted felons.
Summers and Horton are charged with illegal possession of multiple firearms by convicted felons. Horton is further charged with received and possessing explosive material including two LIDU, 1.3g, 2 inch display shells; two LIDU, 1.3g, 3 inch display shell, and one Legend, 1.3g, 4 inch TI Salute shell.
If convicted at trial, defendants face up to ten years in prison for each count for counts 2-34 and 36-40; and up to five years for each of counts one and 35. All counts carry a fine of $250,000 and each count includes a three-year period of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the support of the Louisville Metro Police Department, Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA).
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The charge of a person by a Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty
summers_et_al._ssi_11_21_17.pdfMan Pleads Guilty to Attempting to Steal Greene County Company Client InformationRead the Press Release
DAYTON – Christopher Paul Murphy, 68, of Golden Valley, Ariz., pleaded guilty in U.S. District Court to intentionally accessing a protected computer without authorization.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into before U.S. District Judge Walter H. Rice.
According to the statement of facts in this case, Murphy intentionally attempted to access a protected computer system last month without authorization in an effort to gain information for his own private commercial gain.
Murphy planned to obtain client information of customers of National BiWeekly Mortgage Administration, Inc. (NBA) in Xenia. Murphy wanted to use the information to solicit customers to his own similar business.
The defendant attempted to obtain the information by causing an email containing malware to be sent to an NBA employee. He also provided a thumb drive to an NBA employee and directed that, in the event the malware failed, the employee should download the company’s client lists onto the thumb drive.
Murphy pleaded guilty to one count of intentionally accessing a protected computer without authorization, which is a federal crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Brent G. Tabacchi, who is representing the United States in this case.
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Logan County man sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Logan County man who possessed a sawed-off shotgun in October 2016 was sentenced today to two years and three months in federal prison, announced United States Attorney Carol Casto. Brian Kevin Sigmon, II, 34, of Henlawson, previously pled guilty to possession of an unregistered firearm.
On October 22, 2016, Sigmon possessed a shotgun that had been sawed-off, with a barrel length of less than 18 inches and an overall length of less than 26 inches. The sawed-off shotgun Sigmon possessed was not registered on the National Firearms Registration and Transfer Record as required by federal law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Eric Bacaj handled the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Liberty County Woman Guilty of Federal Income Tax ConspiracyRead the Press Release
BEAUMONT, Texas – A 69-year-old Liberty, Texas woman has pleaded guilty to a federal tax violation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Maria Lilia Riggs pleaded guilty to an Information charging her with conspiracy to defraud the United States by impeding and obstructing the Internal Revenue Service (IRS) of the Treasury Department in the collection of income taxes. Riggs entered a plea of guilty on Nov. 28, 2017, before U.S. Magistrate Judge Zack Hawthorn as part of a plea agreement waiving her indictment by a federal grand jury.
According to a factual basis signed by the defendant, joint individual federal tax returns Form 1040 of defendant Maria Lilia Riggs and her spouse for tax years 2007 through 2014 show federal income taxes owed of approximately $359,009.00 with little or no withholding or taxes paid or tendered. Further, for tax years of 1999 through 2006 the joint individual tax returns Form 1040 of the defendant and her spouse show federal income taxes owed of approximately $164,514.00 with little or no withholding or taxes paid or tendered.
According to information presented by prosecutors, beginning in 2006 when Riggs learned that federal tax levies were being served on her financial institution she began to open other accounts at that institution and another financial institution in the names of relatives and corporations in which the personal earned income of Riggs and her spouse were deposited in and withdrawn from in order to evade the lawful collection of taxes owed over the years. In 2013 when IRS Revenue Officers attempted to collect past due taxes owed from the Riggs, Maria Lilia Riggs completed and signed Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals and failed to disclose her ownership of the various nominee accounts she was utilizing to evade payment of taxes owed.
Under federal statutes, Riggs faces up to five years in federal prison at sentencing as well as restitution to the IRS of approximately $521,166. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Robert L. Rawls.
Laredo Man Indicted for Unlawful Possession of More Than 100 FirearmsRead the Press Release
LAREDO, Texas – A 72-year-old resident of Laredo has appeared in court on allegations he possessed more than 100 firearms, even though he was a convicted felon, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the indictment against Javier J. Trevino on Nov. 21, 2017. He was taken into custody yesterday and made his initial appearance before U.S. Magistrate Judge Diana Song Quiroga today.
According to the indictment, Trevino was found in possession of 123 firearms on Aug. 20, 2016. Trevino is a convicted felon and thereby prohibited from possessing a firearm per federal law. These firearms allegedly included handguns, rifles with high capacity magazines and shotguns.
If convicted, Trevino faces up to 10 years in federal prison as well as a $250,000 maximum fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Webb County Sheriff’s Department.
Assistant U.S. Attorney Christopher dos Santos is 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.
Krotz Springs man sentenced to 41 months in prison for possessing firearms, ammunition illegallyRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Krotz Springs man was sentenced Tuesday to 41 months in prison for possessing firearms and ammunition after being convicted of a felony.
Paul Joseph Viola, 46, of Krotz Springs, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on two counts of possession of a firearm by a convicted felon and two counts of possession of ammunition by a convicted felon. He was also sentenced to two years of supervised release and ordered to pay a $10,000 fine.
Testimony and evidence at a three-day trial that ended on August 2, 2017 revealed that ATF agents received an anonymous call in October of 2015 reporting that Viola was a felon in possession of firearms. In an undercover operation conducted between October 31, 2015 and November 13, 2015, law enforcement agents obtained photographs of a Remington 1100 12 gauge shotgun, a .22 caliber Remington Speedmaster Model 552 semi-automatic rifle, and a .22 caliber Ruger model 10/22 semi-automatic rifle in Viola’s trailer in Krotz Springs. While the investigation was still ongoing, on November 28, 2015, Louisiana Department of Wildlife and Fisheries agents found Viola hunting in the Sherburne Wildlife Management area in St. Martin Parish in possession of a loaded .35 caliber Whelen single shot rifle and five rounds of ammunition. On December 7, 2015, ATF agents searched Viola’s trailer in Krotz Springs where they found and seized 13,428 rounds of ammunition. During his arrest on January 21, 2016 in Krotz Springs, law enforcement agents found 10 .22 caliber rounds of ammunition in a magazine for a Ruger 10/22 rifle, one round of Hornady .444 Marlin ammunition, three rounds of .243 Winchester ammunition and two rounds of .308 Winchester ammunition.
The ATF and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Knoxville Man Sentenced for Conspiring to Defraud the FDARead the Press Release
Abingdon, VIRGINIA – A Tennessee man, who operated a business that unlawfully distributed prescription animal drugs to evade existing Food and Drug Administration laws, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon to a federal felony conspiracy charge, United States Attorney Rick A. Mountcastle announced.
Billy K. Groce, 65, of Knoxville, was sentenced today to imprisonment for a term of four months. Groce previously pleaded guilty to one count of conspiracy to defraud the United States by impeding, impairing obstructing and defeating the lawful functions of the Food and Drug Administration.
Groce operated a business that was created for the purpose of illegally circumventing the FDA’s regulation of the interstate shipment and labeling of veterinary drugs. Groce’s business illegally obtained, stored, sold and caused to be shipped, drugs from veterinary drug manufacturers and distributers. Groce’s business was not a licensed wholesaler, a licensed pharmacy or a veterinary clinic.
Federal regulation of prescription veterinary drugs are not primarily to protect animals from the potential harms of prescription drugs, but are to protect the human food supply from unsafe drug residues in the edible tissues of animals sold for slaughter. Accordingly, veterinary prescription drugs must stay within the controlled chain of distribution to ensure the drugs’ safety and efficacy.
Groce illegally sold the drugs throughout Tennessee and Southwest Virginia. In addition, Groce shipped drugs to co-conspirator Marlin Webb, who was the store manager at a farm supply business in Carroll County, Virginia. Webb illegally sold the veterinary prescription drugs to customers in Southwest Virginia. Webb previously pleaded guilty to a felony charge of conspiracy to defraud the FDA and was sentenced to one year of probation. He paid $125,000 in forfeiture and other payments at the time of his guilty plea.
The investigation of the case was conducted by the U.S. Food and Drug Administration – Office of Criminal Investigations and the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Justice Department Awards $525,569 to Maine Drug Enforcement Agency Through the Anti-Heroin Task Force ProgramRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that $525,569 in grant funding through the Department of Justice’s Office of Community Oriented Policing Services through its Anti-Heroin Task Force Program (AHTF) was made to the Maine Drug Enforcement Agency. This grant is part of the new tools to address the opioid crisis announced today by Attorney General Jeff Sessions.
AHTF provides two years of funding directly to law enforcement agencies in states with high per capita levels of primary treatment admissions for heroin and other opioids. This funding will support the location or investigation of illicit activities related to the distribution of heroin or the unlawful distribution of prescription opioids.
Jeannette Man Admits Collecting and Trading Child PornographyRead the Press Release
PITTSBURGH – A resident of Westmoreland County, Pennsylvania, pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
Jeffrey John Valenta, age 56, of Jeannette, Pennsylvania, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that in November 2010, the Pennsylvania State Police were conducting an undercover investigation into the Internet sharing of child pornography. In connection with the investigation, the state police obtained evidence that led to Valenta’s home. Troopers executed a search warrant at the residence of Valenta on January 6, 2011. He admitted to collecting and trading child pornography. A forensic review of Valenta’s computer revealed 33 video files depicting child pornography.
Judge Conti scheduled sentencing for March 14, 2018. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
Inmate at Lewisburg Federal Prison Sentenced to an Additional Seven Years in Prison for Assault on Correctional OfficerRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal inmate at the United States Penitentiary at Lewisburg was sentenced yesterday by U.S. District Court Judge Matthew W. Brann in Williamsport, to serve an additional seven years in prison for assaulting a federal correctional officer.
According to United States Attorney David J. Freed, Julious Bullock, age 31, formerly of North Carolina, previously admitted to the charge of assault on a correctional officer. The charge stems from an incident on August 2, 2016, in which Bullock “head-butted” a correctional officer at the United States Penitentiary at Lewisburg.
Bullock was previously indicted by a federal grand jury in September 2016, on the assault charge. He is presently serving a sentence of 120 months in prison on the charge of being a convicted felon in possession of a firearm. That offense occurred in 2010 in Raleigh, North Carolina. The sentence which Bullock received yesterday will be served in addition to that sentence.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
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Hitchita Man Sentenced to 46 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimmie John Likowski, age 49, of Hitchita, Oklahoma, was sentenced to 46 months imprisonment, and 3 years of supervised release for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about May 21, 2017, within the Eastern District of Oklahoma, the defendant, Jimmie John Likowski, a/k/a Jimmy John Likowski, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Okmulgee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
United States Attorney Brian J. Kuester said, “This office is committed to working with our federal, state, local and tribal partners to protect the public from violent offenders. Enforcement of the federal laws that prohibit convicted felons from possession of firearms is one way that we are able to protect the public. I am thankful for the work of the Okmulgee County Sheriff’s Office, the Bureau of Alcohol, Tobacco, and Firearms, and members of the United States Attorney’s Office, for their work on this case and their commitment to public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney John David Luton represented the United States.
Hichita Man Sentenced to 46 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimmie John Likowski, age 49, of Hitchita, Oklahoma, was sentenced to 46 months imprisonment, and 3 years of supervised release for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about May 21, 2017, within the Eastern District of Oklahoma, the defendant, Jimmie John Likowski, a/k/a Jimmy John Likowski, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Okmulgee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
United States Attorney Brian J. Kuester said, “This office is committed to working with our federal, state, local and tribal partners to protect the public from violent offenders. Enforcement of the federal laws that prohibit convicted felons from possession of firearms is one way that we are able to protect the public. I am thankful for the work of the Okmulgee County Sheriff’s Office, the Bureau of Alcohol, Tobacco, and Firearms, and members of the United States Attorney’s Office, for their work on this case and their commitment to public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney John David Luton represented the United States.
Hayneville Man Sentenced to 15 Years in Prison for Assaulting a Federal Law Enforcement OfficerRead the Press Release
Montgomery, Alabama- Harry Larmont McCall, 54, of Hayneville, Alabama was sentenced yesterday to 15 years in prison for assaulting a federal officer with a deadly weapon, announced United States Attorney Louis V. Franklin, Sr. McCall was found guilty of the charge after a trial that took place in June 2017. There is no parole in the federal prison system.
At trial, the jury heard testimony that in December of 2015 McCall arrived at the Department of Veterans Affairs (VA) Montgomery Regional Office on Perry Hill Road for a scheduled appointment. McCall had previously made threats to VA employees, so his appointment was scheduled at this location because of the security measures present at its entry point.
When entering the building for his appointment, he was required to go through a security checkpoint to ensure no prohibited items were brought into the facility. During the security check, VA employees discovered that McCall had an unauthorized item and would not allow him to enter the facility with it.
At this point, McCall began to cause a disturbance and the VA police were required to intervene. When a VA police officer tried to investigate the incident further, McCall attempted to leave in his car. The officer, who was standing near the rear of McCall’s car, ordered McCall to stop and exit the vehicle. McCall refused and instead put his car into reverse and sped backwards toward the officer. The officer attempted to move out of the way, but he was ran over by McCall and suffered serious injuries to his leg that caused a permanent disability. McCall fled, but was later arrested by authorities.
“We hope this sentence sends a message that endangering the lives of our federal law enforcement partners will not be tolerated,” said U.S. Attorney Franklin. “Our office will prosecute those who do so to the fullest extent of the law. In addition, we are committed to providing a safe environment for our veterans who visit VA facilities in the Middle District. We hope for the continued recovery of the victim in this incident, who also happens to be a veteran himself, and thank him for his service.”
This case was investigated by the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorney Brandon W. Bates.
Greenville Man Guilty of Twenty Seven Counts of Making False Claims for Payment to the United StatesRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake announced today that Myron Anvil “Mac” McCall, age 59, of Greenville, South Carolina, was found guilty as charged by a jury in federal court in Greenville, South Carolina, of an indictment listing twenty seven (27) counts of violations of Title 18, United States Code, Section 287. Specifically, each count of the indictment charged that McCall had filed a false tax return for another person. The trial was presided over by United States District Judge Bruce H. Hendricks who will sentence Mr. McCall at a later date.
Testimony at trial showed that McCall had worked with over 80 prison inmates and, using their names and Social Security numbers, had prepared false income tax returns for them and sought to obtain fraudulent refunds from the government totaling approximately $500,000. The scheme was discovered when an incriminating letter from Mr. McCall to an inmate in an Arkansas state prison was intercepted. The letter led to the involvement of Internal Revenue Service investigators who stopped the scheme. However, almost $300,000 in fraudulent refunds had already been sent out.
The case was investigated and prosecuted by Assistant United States Attorneys Maxwell Cauthen and David C. Stephens of the Greenville Office. U.S. Attorney Drake commends the Internal Revenue Service for its diligence and hard work in investigating and assisting in the prosecution of Mr. McCall.
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Golf Resort CEO Pleads Guilty to Fraud and Tax Evasion ChargesRead the Press Release
PITTSBURGH – A resident of Westmoreland County, Pennsylvania has pleaded guilty in federal court in Pittsburgh on charges of wire fraud and income tax evasion, Acting United States Attorney Soo C. Song announced today.
Rocco Panucci, 53, of Greensburg, PA, pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
According to the information presented to the court, the victim in this case is Chestnut Ridge Golf, L.P. ("Chestnut"), 132 Pine Ridge Road, Blairsville, Pennsylvania, 15717, a golf and resort conference center. In September 2007, Chestnut retained the defendant for an annual salary of $100,000, plus approximately $21,000 of benefits, to function as the chief executive and finance officer. Panucci was responsible for the day-to-day operations until he was dismissed on December 17, 2012, by reason of the conduct these charges are based upon. Panucci used his fiduciary position to cause Chestnut to incur a loss of approximately $354,072 to benefit himself and his family. For example, $20,740.92 of Chestnut monies were diverted for college tuition for Panucci’s children, and $139,183.62 was diverted for personal travel, leisure, dining and entertainment. Panucci directed that an American Express credit card in the name of Chestnut be sent to his home address so that none of the itemized statements were seen by anyone at Chestnut. When it was time to pay the American Express charges, Panucci provided the Chestnut in-house bookkeeper his handwritten lists of what appeared to be legitimate expenditures, which in truth were fabrications to cover what Panucci had charged on the card for personal items.
Judge Schwab scheduled the sentencing for April 4, 2018. The law provides for a maximum total sentence of not more than 40 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation leading to the information in this case.
Gardnerville Man Sentenced to 15 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
RENO, Nev. – A former employee at a Lake Tahoe children’s ski school was sentenced today to 15 years in prison for child sexual exploitation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Stephan L. DeGraffenreid, 27, of Gardnerville, Nev., pleaded guilty to one count of sexual exploitation of a minor and two counts of attempted sexual exploitation of a minor. United States District Judge Howard D. McKibben also sentenced DeGraffenreid to lifetime supervised release.
According to the criminal complaint and plea agreement, law enforcement discovered child pornography on an Apple iPod Touch that was found at the Children’s Ski School at Heavenly Ski Resort. During the investigation, it was discovered the iPod belonged to DeGraffenreid who was a former employee at the ski school. During the execution of a search warrant at DeGraffenreid’s residence, officers with the Northern Nevada Online Child Exploitation Task Force located a thumb drive that contained explicit images of children in a childcare facility restroom in Gardnerville. DeGraffenreid admitted to taking the sexually explicit photos of the children found on the thumb drive.
The case was investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The Douglas County Sheriff’s Office and the El Dorado County Sheriff’s Office also assisted with the investigation. Assistant U.S. Attorney Shannon M. Bryant prosecuted the case.
To report child sexual exploitation, contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or the FBI’s Las Vegas Office at (702) 385-1281.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Gaffney Man Sentenced in Federal Court on Charges of Using Explosive DevicesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Jeffrey Dean Daily, age 45, of Gaffney, was sentenced in federal court in Anderson on charges of using an explosive device to damage a building, a violation of Title 18, United States Code, Section 844(i). United States District Judge Timothy M. Cain imposed a sentence of 60 months, followed by three years of supervised release with restitution.
Evidence presented at the change of plea hearing earlier this year established that, on October 1, 2014, Daily used an explosive device to damage the Chesnee Car Wash, and on July 6, 2015, he used an explosive device to damage the Oasis Car Wash in Gaffney. On July 17, 2015, law enforcement officers executed a search warrant at Daily’s residence and found components like those used in the two explosions at the carwashes. Agents also recovered an intact homemade explosive device located in Daily’s truck.
The Chesnee Police Department, Gaffney Police Department, Cherokee County Sheriff’s Office, SLED, Spartanburg County Sheriff’s Office, along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office prosecuted the case.
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Fugitive in Multi-Million Dollar Bank Fraud Scheme Named in Grand Jury Indictment Alleging Series of Fraudulent Real Estate LoansRead the Press Release
LOS ANGELES – A longtime fugitive was named today in a nine-count indictment that alleges he participated in a $9 million loan fraud scheme that targeted Wells Fargo Bank.
Napoleon Olarte, 40, who is believed to be in Venezuela after fleeing the United States approximately eight years ago, was indicted late this afternoon by a federal grand jury.
The indictment alleges that Olarte carried out the mortgage fraud scheme with two co-conspirators – Juan Jose Calle and Nancy Karina Coleman – both of whom previously pleaded guilty to charges related to the scheme.
Olarte and his co-conspirators allegedly defrauded Wells Fargo Bank, where Coleman worked as a mortgage consultant. Olarte and Calle allegedly ran a rogue brokerage and escrow company in Northridge called Fast Escrow. Olarte resided in Reseda at the time of the alleged scheme.
According to court documents, Coleman accepted bribes and other favors in exchange for approving approximately $9 million in fraudulent loans for Olarte and Calle. The indictment alleges that Olarte submitted fraudulent loan applications to Wells Fargo that listed false information for borrowers’ income, assets and employment. In relation to some loans financed by Wells Fargo, Olarte and Calle allegedly failed to pay off existing loan holders and failed to record liens in favor of Wells Fargo, leaving the bank with no collateral when the loans defaulted.
The indictment charges Olarte with one count of conspiracy, six counts of bank fraud, and two counts of making false statements to a financial institution. If he were to be convicted in this case, Olarte would face a statutory maximum sentence of 30 years in federal prison for each of the nine counts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Previously, Calle pleaded guilty to wire fraud, and Coleman pleaded guilty to conspiracy to make false statements to a financial institution.
Federal authorities believe that Olarte is currently residing in Venezuela. Anyone with information about his whereabouts should contact the Federal Bureau of Investigation at (310) 477-6565.
The case against Olarte is the result of an investigation by the Federal Bureau of Investigation, and the United States Department of Housing and Urban Development’s Office of Inspector General.
The case against Olarte is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Fremont Business Owner Sentenced to over Four Years in Prison for Role in Visa Fraud Conspiracy, Mail Fraud, Witness Tampering, and Related CrimesRead the Press Release
SAN JOSE – Sunitha Guntipally was sentenced today to 52 months in prison for her role in a conspiracy to commit several crimes including visa fraud, obstruction of justice, use of false documents, mail fraud, and witness tampering, announced United States Attorney Brian J. Stretch; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin; and U.S. State Department, Diplomatic Security Service, San Francisco Field Office Special Agent in Charge Matthew Perlman. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge, after Guntipally pleaded guilty to the conspiracy charge on May 3, 2017.
A federal grand jury indicted Sunitha Guntipally, 44, of Fremont, and three co-defendants, Venkat Guntipally, 49, of Fremont; Pratap “Bob” Kondamoori, 56, of Incline Village, Nev.; and Sandhya Ramireddi, 58, of Pleasanton, in a 33-count indictment filed May 5, 2016. The indictment contains charges in connection with the submission of fraudulent applications for H-1B specialty-occupation work visas.
In connection with her guilty plea, Sunitha Guntipally admitted that she and Venkat Guntipally were a husband and wife team who founded and owned DS Soft Tech and Equinett, two employment-staffing companies for technology firms. Sunitha Guntipally admitted that between approximately 2010 and 2014, she and her co-defendants submitted more than one hundred additional fraudulent petitions for foreign workers to be placed at other purported companies. The end-client companies listed in the fraudulent H-1B applications either did not exist or never received the proposed H-1B workers. None of them ever intended to receive those H-1B workers. These applications were designed and intended to create a pool of H-1B beneficiaries who then could be placed at legitimate employment positions in the Northern District of California and elsewhere. Through this scheme, Sunitha Guntipally, along with her co-conspirators, gained an unfair advantage over competing employment-staffing firms and, as a result, she and her husband, Venkat Guntipally, earned money from these downstream companies for themselves and their companies. In addition, Sunitha Guntipally admitted that she obstructed justice, and directed her co-defendant to do the same, in an effort to mislead the agents, and conceal the conspiracy.
In sum, Sunitha Guntipally was charged with one count of conspiracy, in violation of 18 U.S.C. § 371; ten counts of substantive visa fraud, in violation of 18 U.S.C. § 1546(a); seven counts of using false statements, in violation of 18 U.S.C. § 1001(a)(3); four counts of mail fraud, in violation of 18 U.S.C. § 1341; and four counts of witness tampering, in violation of 18 U.S.C. § 1512(b)(3). Pursuant to her guilty plea, Sunitha Guntipally pleaded guilty to the conspiracy charge and the remaining charges were dismissed.
In sentencing Sunitha Guntipally, Judge Koh stated that the defendant’s crime does “damage to the rule of law.” Judge Koh stated that the defendant’s conduct “undermines respect for our legal immigration system” and does “tremendous damage to our institutions and affects the rights of others to immigrate to the United States.”
In addition to the prison term, Judge Koh ordered Sunitha Guntipally to serve three years of supervised release and to pay a $50,000 fine. Each of Sunitha Guntipally’s co-defendants has already pleaded guilty to his respective roles in the scheme. Judge Koh sentenced Ramireddi to 14 months’ imprisonment and Kondamoori to 20 months’ imprisonment for their respective roles earlier this year. Venkat Guntipally, Sunitha Guntipally’s husband, is scheduled to be sentenced on March 21, 2018, at 9:15 a.m.
Assistant U.S. Attorney Timothy J. Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by the Department of Homeland Security’s Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Four South Florida Residents Sentenced to Prison for Conspiring to Commit Sweepstakes Mail FraudRead the Press Release
Four Florida residents were sentenced to prison terms ranging from 42 months imprisonment to 84 months imprisonment for participating in a sweepstakes mail fraud scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Matthew Pisoni, 44, of Fort Lauderdale, Marcus Pradel, 41, of Boca Raton, and Victor Ramirez, 38, of Aventura, were found guilty of conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1349, after a five-week trial that ended on July 26, 2017. John Leon, 50, of Fort Lauderdale, previously pled guilty to conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 371.
Today, United States District Court Judge Gayles sentenced Pisoni and Ramirez to 84 months imprisonment; Pradel to 78 months imprisonment; and Leon to 42 months imprisonment.
The trial evidence established that the four defendants, Pisoni, Pradel, Ramirez and Leon, falsely notified individuals by mail that they had won a substantial prize. The letters the defendants sent fraudulently represented that the recipients needed to pay a fee ranging from $20 to $50 to the defendants in order to redeem their purported winnings. During the course of the mail fraud conspiracy, more than 100,000 victims in the United States and abroad were fraudulently induced to pay the fees by the defendants’ misleading claims that they had won a prize. The fraudulent letters directed victims to pay the fees in cash or by check or money order payable to fictitious companies. The defendants then either processed the victims’ payments through independent payment processors or deposited them into shell bank accounts controlled directly and indirectly by the defendants and their co-conspirators. In total, over $25 million in victim payments went into the defendants’ and co-conspirators’ bank accounts.
Mr. Greenberg commended the investigative efforts of the IRS-CI, USPIS, Federal Trade Commission, Aventura Police Department, and other local and international law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Elijah Levitt, and H. Ron Davidson.
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.
Fort Dodge Man Sentenced to Federal Prison for Possession with the Intent to Distribute MethamphetamineRead the Press Release
A man who possessed with the intent to distribute methamphetamine was sentenced on November 28, 2017, to more than 14 years in federal prison.
Gary Darnell Black, 44, from Fort Dodge, Iowa, received the prison term after an August 8, 2017, guilty plea to one count of possessing with the intent to distribute methamphetamine.
In a plea agreement, defendant admitted that, during a traffic stop, he possessed approximately 64 grams of actual (pure) methamphetamine, 1.687 kilograms of marijuana, a digital scale, and drug paraphernalia.
At sentencing, the government presented evidence that Black had accumulated 48 criminal convictions since 1993. Evidence also showed that Black had been convicted and/or incarcerated in 23 of the past 24 years. His prior convictions included drug offenses, theft offenses, assaults, and interference with official acts, one of which resulted in an officer sustaining serious head and neck injuries.
Black was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Black was sentenced to 178 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Black is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay Alexander and investigated by the Iowa Division of Narcotics Enforcement, Sac County Sheriff’s Office, and Storm Lake Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4032.
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Former U.S. Army Civilian Employee at Brooke Army Medical Center Sentenced to Federal Prison for Pocketing Solicited Funds for Wounded WarriorsRead the Press Release
In San Antonio today, 67-year-old Opal Jewel Charles, of Cibolo, TX, was sentenced to five years in federal prison for stealing money collected for wounded warriors and their families announced United States Attorney Richard L. Durbin, Jr.; Resident Agent in Charge Ray A. Rayos, U.S. Army Criminal Investigation Command (Army CID), San Antonio Fraud Resident Agency; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Troy Caldron, San Antonio.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Charles pay $260,000 restitution and be placed on supervised release for a period of three years after completing her prison term.
In May, Charles pleaded guilty to one count of wire fraud and one count of structuring. By pleading guilty, Charles admitted that from 2004 to December 2016, she was assigned to attend to the needs of soldiers and their families at the Warrior Transition Battalion at Brooke Army Medical Center located on Fort Sam Houston in San Antonio. As part of her duties, she solicited funds and other assistance from private organizations and individuals dedicated to assisting wounded warriors. Charles, admittedly, stole those solicited funds and used them for her own private affairs, including gambling. Charles further admitted to structuring bank deposits under $10,000 in order to avoid triggering automatic currency transaction reports.
“Today's sentencing illustrates our firm commitment to aggressively investigate public corruption on Joint Base San Antonio and hold those who engage in such acts accountable,” said Resident Special Agent in Charge Ray A. Rayos, U.S. Army CID San Antonio Fraud Resident Agency."
“IRS-Criminal Investigation is diligent in unraveling the fraudulent actions of those, such as Opal Charles, who schemed to defraud those willing to donate to American soldiers in need of assistance,” said IRS-CI Acting Special Agent in Charge Troy Caldron, San Antonio Field Office. “Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
Agents with the U.S. Army CID Major Procurement Fraud Unit and IRS-CI investigated this case. Assistant United States Attorney James Blankinship prosecuted this case on behalf of the Government.
Former Police Officer Sentenced for Trafficking Steroids, Money LaunderingRead the Press Release
PROVIDENCE – A former Charlestown, RI police officer was sentenced today to 3 years probation and 1,000 hours of community service for importing, repackaging and selling pharmaceuticals from China and elsewhere, and employing elaborate schemes to hide more than $530,000 in proceeds he netted from the sale of the steroids.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Evan C. Speck, 35, of Westerly, R.I., to serve the first 18 months of his probationary sentence on home confinement with electronic monitoring – the first 12 months of which he ordered Speck incarcerated on weekends at the Wyatt Detention Center in Central Falls.
Additionally, Speck was ordered to purchase an advertisement in the Westerly Sun to publish a letter of apology to the community for his criminal conduct and to send a similar letter to each member of the Charlestown Police Department. The letters must first be approved by the Court. Speck will also forfeit $536,000 in forfeitable assets, an amount equal to the total value Speck received from the sale of steroids and other drugs.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 46-57 months. The government recommended the court impose a sentence of 57 months incarceration.
Speck pleaded guilty on November 7, 2017, to possession with the intent to distribute steroids, distribution of a misbranded drug and money laundering.
Speck’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Jeffrey Ebersole, Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration Office of Criminal Investigations; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations for New England.
According to information presented to the Court, Speck had been ordering Testosterone Cipionate from China since at least the beginning of 2015, repackaging the drug and selling it to his customers under the name “TabMan Pharmaceuticals.” Speck connected with potential customers through third-party, member only web-based steroid boards. He communicated with distributors of raw products and with his customers, many of whom were professional and amateur bodybuilders, utilizing encrypted emails and varying email addresses, and through text message software that would eliminate texts after they were read.
To conceal the movement of funds, Speck utilized various money remittance services, utilizing false names to conceal his identity as both the sender and recipient of tainted funds. Speck, his distributors of raw product and his customers utilized regularly changing intermediary nominees, domestically and abroad, to facilitate money remittances. The defendant also used crypto-cyber currency, Bitcoin, to conceal both the purchase and sales of products.
On March 20, 2017, federal law enforcement agents executed a court-authorized search of Speck’s residence and seized items associated with the receipt, packaging and resale of steroids and other performance enhancing drugs. Agents also seized labels containing the name under which Speck sold steroids, TabMan Pharmaceuticals.
Additionally, agents seized various false identification documents, ledgers, and cash. The ledgers show that from approximately June 2015 to the date of the search, Speck received $536,000 from the sale of steroids and other drugs. Investigators also seized two firearms from Speck’s residence and a loaded firearm found stashed in his vehicle.
The case was prosecuted by Assistant U.S. Attorneys Dulce Donovan and Mary E. Rogers, with the assistance of Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the Rhode Island FDA Office of Criminal Investigations task force, IRS Criminal Investigation, U.S. Postal Inspection Service, and Homeland Security Investigations.
The Rhode Island FDA Office of Criminal Investigations task force is comprised of agents and officers from the FDA, IRS, DEA, HSI, Rhode Island State Police and the East Providence, North Providence and Westerly Police Departments.
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Former NBA star Chris Herren to share inspiring story of drug addiction, recovery with Ohio Valley studentsRead the Press Release
WHEELING, WEST VIRGINIA – As the opioid epidemic continues to ravage West Virginia communities and families, United States Attorney Bill Powell and community leaders remain steadfast in their commitment to educate students in the Northern District of West Virginia about the dangerous and deadly consequences of addiction. Next week, former National Basketball Association standout Chris Herren will return to the Ohio Valley to share his powerful story of his struggle with addiction.
On Tuesday, December 5, 2017, Herren will address students in Ohio and Wetzel Counties. First, he will visit Triadelphia Middle School to lead a discussion with students from sixth, seventh and eighth grades. Later, he will visit New Martinsville School in Wetzel County to address middle school students.
After an explosive debut as an All-American basketball star at Durfee High School in Massachusetts, Herren played at Boston College and Fresno State. Capturing the attention of the NBA, Herren was drafted by the Denver Nuggets. He would also play several seasons for the Boston Celtics. Behind the scenes, alcohol, cocaine, and heroin abuse nearly cost Herren his life.
Leveraging his own experience to educate and inspire young people, Herren tours the country speaking about substance abuse and addiction through his Project Purple program. Project Purple is an initiative of the Herren Project, a non-profit organization founded by Herren to break the stigma of addiction, bring awareness to the dangers of substance abuse, and shed light on effective treatment.
Herren’s presentations on December 5, 2017 are not open to the public. For more information on Project Purple, go to thpprojectpurple.org.
Former Iraqi Subcontractor Found Guilty in Kickbacks ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Romanian citizen today for his role in a government contract kickback scheme that caused a loss of more than $3.4 million to the U.S. Department of State.
According to court records and evidence presented at trial, Emil Popsecu, 49, conspired to violate the Anti-Kickback Act related to the lease of real property in Iraq in 2011.
According to evidence adduced and presented at trial, a United States government contractor headquartered in Virginia and performing services for the U.S. Department of State in Iraq in 2011, was searching for real property to lease. A conspiracy formed between Wesley Aaron Struble, 49, a United States citizen living in Batangas, Phillipines, and Joes Rivera, 60, of Potomac, Maryland, both of whom were working as government contractors in Iraq. Struble and Rivera approached an Iraqi company and its associates and agreed to accept kickbacks in exchange for help in causing the U.S. State Department contractor to lease property that the Iraqi company controlled.
Emil Popescu was late recruited to the conspiracy and asked to open a bank account in Baghdad, Iraq. After a lease was signed between the U.S. State Department contractor and the Iraqi company, Popescu withdrew cash from the bank account and made kickback payments directly to Struble and Rivera. Popescu also facilitated other kickback payments by withdrawing money from the bank account and giving it to the Iraqi company knowing that kickback payments were owed to Struble and Rivera.
Prior to trial, Struble and Rivera each pleaded guilty to the same conspiracy and were sentenced to four years and three years in prison, respectively.
Popescu faces a maximum penalty of five years in prison when sentenced on Feb. 23, 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, Steve A. Linick, the Inspector General for the U.S. Department of State, and Andrew W. Vale, Assistant Director of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the verdict. Special Assistant U.S. Attorney Brian D. Harrison and Assistant U.S. Attorney Kimberly R. Pedersen prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-44 and 1:17-cr-052.
Former Employee of U.S. Government contractor in Afghanistan sentenced to prison for accepting $250,000 in kickbacks from subcontractorRead the Press Release
ATLANTA - A former employee of a U.S. government contractor in Afghanistan was sentenced today to 21 months in prison for accepting over $250,000 in illegal kickbacks from an Afghan subcontractor in return for his assistance in obtaining subcontracts on U.S. government contracts.
U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge John Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office- Atlanta Resident Agency, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.
Nebraska McAlpine, 57, of Smyrna, Georgia, was sentenced in Atlanta by U.S. District Judge Mark H. Cohen of the Northern District of Georgia. McAlpine previously pleaded guilty to a one-count Information charging him with one count of accepting illegal kickbacks. The defendant’s prison sentence will be followed by three years of supervised release and 100 hours of community service.
As part of his guilty plea, McAlpine admitted that while he was employed as a project manager for an American defense contractor (the Prime Contractor) in Kabul, Afghanistan, he and an Afghan executive agreed that in exchange for illicit kickbacks, McAlpine would ensure that the Prime Contractor awarded lucrative subcontracts to the executive’s companies. McAlpine admitted that he repeatedly told his supervisors that these companies should be awarded “sole source” subcontracts, which allowed them to supply services to the Prime Contractor without having to competitively bid on them. As a result of the kickback scheme, the Prime Contractor paid over $1.6 million to the subcontractor to assist with maintaining the Afghanistan Ministry of the Interior Ultra-High Frequency radio communications system in Kabul, McAlpine admitted.
McAlpine further admitted that the executive agreed to pay kickbacks to McAlpine totaling approximately 15 percent of the value of the subcontracts, and that in 2015 and 2016, he accepted over $250,000 in kickbacks from the executive. McAlpine also admitted that he hid the kickbacks from his employer by storing the cash payments in his personal effects and by physically transporting the cash to the United States. McAlpine then deposited the majority of these funds into his bank accounts at bank branches in the Atlanta metropolitan area, he admitted.
DCIS, SIGAR and Army CID-MPFU investigated the case. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia prosecuted the case.
Former DOJ Attorney Pleads Guilty to Obstruction of Justice and Interstate Transportation of Stolen PropertyRead the Press Release
SAN FRANCISCO– Jeffrey Wertkin pleaded guilty today to two counts of obstruction of justice and one count of transportation of stolen property, announced United States Attorney Brian J. Stretch; Department of Justice Office of the Inspector General, Fraud Detection Office Special Agent in Charge Lewe Sessions; and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty plea was accepted by the Honorable Maxine M. Chesney, U.S. District Judge, following the filing of the charges in a criminal information earlier this month.
According to his plea agreement, Wertkin, 41, of Washington, D.C., worked for the Civil Fraud Section of the Department of Justice from October 24, 2010, until April 12, 2016. During that time, he worked on qui tam actions pursuant to which the government investigated companies suspected of breaking the law. By statute, qui tam complaints are filed under seal and therefore kept from public view until the court orders that the complaints may be made public. In his plea agreement, Wertkin admitted that during the last month of his employment as a trial attorney with the Department of Justice, he began secretly reviewing and collecting sealed qui tam complaints that were not assigned to him. Further, Wertkin has admitted that after he left the Department of Justice, he used the stolen information to improperly solicit clients that were the subject of the sealed complaints. Wertkin acknowledged that in one instance, he was successful in using the information from a sealed complaint to convince the subject of a lawsuit to retain him as an attorney to represent it in the lawsuit. Wertkin also acknowledged he lied to the Department of Justice in documents he completed during his exit process regarding whether he stole the complaints.
The plea agreement also describes two occasions in which Wertkin attempted to sell information to companies that were the subject of government investigations. On November 30, 2016, Wertkin offered to sell a complaint to the corporation named in the lawsuit. Then, between November 30, 2016, and January 31, 2017, Wertkin engaged in multiple conversations with a representative of the corporation to negotiate the sale of the sealed complaint for $310,000. Similarly, on January 23, 2017, Wertkin contacted a second corporation and offered to mail to the representative a copy of the face sheet of the complaint. Wertkin actually mailed a redacted copy of the face sheet and promised that, for a fee, he would provide the entire complaint.
Wertkin was arrested on January 31, 2017, after traveling from the Washington, D.C. Area to the San Francisco Bay Area with a copy of a sealed complaint. On that day, Wertkin believed he was meeting at a Cupertino hotel with a representative from a company with whom he would exchange the complaint for a duffel bag filled with $310,000. In truth, Wertkin was meeting with an undercover employee of the FBI.
Further, Wertkin admitted that after his arrest, he took steps in an effort to obstruct the ongoing investigation. Specifically, after being released from custody, Wertkin returned to his office, purportedly to retrieve his personal belongings, and removed and destroyed documents from his office that he knew could further incriminate him. Wertkin acknowledged he took these and additional other steps in an effort to corruptly obstruct the ongoing investigation and proceedings against him.
In sum, on November 1, 2017, Wertkin was charged by information with two counts of obstruction of justice, in violation of 18 U.S.C. § 1505, and one count of interstate transportation of stolen goods, in violation of 18 U.S.C. § 2314. Pursuant to the plea agreement, Wertkin pleaded guilty to all counts.
Judge Chesney scheduled a hearing for sentencing Wertkin for March 14, 2018, at 2:15 p.m. The maximum statutory sentence for each count of violating 18 U.S.C. § 1505 is five years in prison and a $250,000 fine. The maximum statutory sentence for a violation of 18 U.S.C. § 2314 is 10 years in prison and a $250,000 fine. Additional fines, victim restitution, and a term of supervised release also may be imposed. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robin L. Harris and William Frentzen are prosecuting the case. The prosecution is the result of an investigation by the FBI and the Department of Justice Office of the Inspector General.
Former City of Nashua Volunteer Sentenced to 18 Months in PrisonRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Dana Michelle Lawrence, 43, of Nashua has been sentenced to 18 months in prison for using another person’s social security number.
According to court documents and statements made during a lengthy hearing in U.S. District Court yesterday, in 2006, Lawrence completed consecutive one-year prison terms for fraud-related offenses she committed in New York and Rhode Island. After Lawrence was released from a New York prison, she was required to serve a nine-year period of probation in connection with the Rhode Island case and pay restitution totaling more than $47,000 to the victims of that case. However, shortly after Lawrence completed the prison sentence, she absconded from supervision and a warrant was ultimately issued for her arrest.
Using an alias, “Genevieve Kaplan,” in November 2016, Lawrence began working as a volunteer for the City of Nashua, preparing grant applications. Last May, the Nashua Police Department and Federal Bureau of Investigation were told that “Kaplan” tried to obtain routing and account numbers for bank accounts that belonged to the City. The NPD and FBI discovered Lawrence’s true identity and obtained a copy of a lease application that “Kaplan” used to rent an apartment in Nashua. On the application, “Kaplan” used a social security number assigned to another person. She was arrested for that federal offense on May 11, 2017. She pleaded guilty on August 11, 2017.
During the 11-year period that Lawrence was a fugitive from justice, she used a number of aliases, social security numbers that belonged other people, falsely claimed to be a graduate of an Ivy League law school with access to substantial sums of money. She moved to different states in order to steal money from people she befriended, businesses that employed her, charitable organizations, and other entities.
The Federal Bureau of Investigation, Social Security Administration, Office of Inspector General, and the Nashua Police Department investigated the case.
The case was prosecuted by Assistant United States Attorneys Robert Kinsella and Anna Dronzek.
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Former City Commissioner Convicted in Health Insurance Fraud SchemeRead the Press Release
McALLEN, Texas ‐ A 47-year-old former Pharr city commissioner has been convicted in connection with a scheme to defraud Blue Cross Blue Shield of Texas, announced Acting U.S. Attorney Abe Martinez.
Oscar Elizondo participated in a conspiracy to submit more than $1.7 million in fraudulent claims to Blue Cross Blue Shield of Texas for expensive pain patches and scar creams.
As a marketer for Penitas Family Pharmacy (aka Riverside Pharmacy) in Penitas, Elizondo targeted employers that carried employee health insurance through Blue Cross, such as the City of Pharr, Frontera Produce and Point Isabel Independent School District, among others. Working with contacts at those entities, Elizondo and other marketers offered meals, drinks and promises of “free” prescription pain patches and scar creams to entice employees to turn over their insurance information.
Elizondo’s co-conspirators then used the insurance information, along with fraudulent prescriptions, to submit fraudulent and medically unnecessary claims to Blue Cross. The insurance company was billed for prescriptions for individuals who never received pain patches or scar creams or who never saw a doctor to obtain a valid prescription. Other employees saw a doctor, but it was a doctor involved in the scheme who received kickbacks, including prescription pain medication, to write prescriptions for all patients Elizondo and other co-conspirators brought him.
In addition, Penitas Family Pharmacy billed Blue Cross for prescription refills that were never requested by, or delivered to, patients.
Elizondo faces up to 10 years in federal prison and a $250,000 maximum fine. Sentencing has been set for Feb. 7, 2018, before U.S. District Judge Randy Crane.
The FBI, Mission Police Department, Texas Department of Insurance – Fraud Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Five Defendants Indicted on Federal Drug Trafficking and Money LaunderingRead the Press Release
Memphis, TN – On November 8, 2017, a federal grand jury returned a 7-count indictment charging five defendants with conspiracy to distribute large amounts of marijuana and money laundering. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
This investigation was conducted in conjunction with prosecutors in Memphis and elsewhere as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Between 2014 and May 3, 2017, the defendants engaged in a multi-state marijuana and money laundering conspiracy. Utilizing the U.S. Mail, the defendants would send and receive packages of marijuana for redistribution in multiple locations, including Memphis and Chattanooga, Tennessee and San Francisco, California. In furtherance of this conspiracy, the defendants conducted a large number of financial transactions.
"This indictment reflects the ongoing priority of the U.S. Attorney’s Office to use all available law enforcement and prosecutorial resources to disrupt and dismantle drug trafficking organizations and conspiracies that distribute illegal narcotics into and through the Western District of Tennessee. Our investigations and prosecutions through the OCDETF Program will be aggressive and far reaching, and will include criminal forfeiture of the ill-gotten financial proceeds from such illegal activities," said U.S. Attorney D. Michael Dunavant.
The five defendants indicted on federal charges include:
Jijad Hijazi, 33, San Francisco, CA
Christopher Heffernan, 32, San Francisco, CA
Nasseam Elkarra, 36, San Francisco, CA
Kenric West, 46, Memphis, TN
Patrick O’Neal, 28, Memphis, TNCount 1 charges Jijad Hijazi, Christopher Heffernan, Nasseam Elkarra, Kenric West and Patrick O’Neal with conspiracy to distribute, and to possess with intent to distribute, in excess of 100 kilograms of marijuana.
Count 2 charges Kenric West with possession with intent to distribute 444.2 grams of marijuana.
Count 3 charges Kenric West with possession with intent to distribute 23.4 grams or more of cocaine.
Count 4 charges Kenric West with being a convicted felon in possession of a firearm.
Count 5 charges Jijad Hijazi and Kenric West with possession with intent to distribute marijuana in excess of 2,690 grams.
Count 6 charges Jijad Hijazi and Kenric West with possession with intent to distribute 1,523 grams of marijuana.
Count 7 charges Jijad Hijazi and Kenric West with conspiring to engage in financial transactions with intent to promote the carrying on of specified unlawful activity, that is conspiracy to commit drug trafficking.
The United States also seeks criminal forfeiture of $3,078,000 in U.S. currency, both jointly and separately from Jijad Hijazi, Christopher Heffernan, Nasseam Elkarra, Kenric West and Patrick O’Neal.
If convicted, the defendants face maximum sentences of up to 40 years imprisonment for the drug conspiracy charge, 5 years imprisonment for each of the marijuana possession charges, 10 years imprisonment for felon in possession of firearm charge, and 2o years imprisonment for the money laundering conspiracy charge.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case was investigated by the Drug Enforcement Administration and the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Cotten is prosecuting this case on the government’s behalf.
Federal Grand Jury Charges Four Men with Exploiting Big Crow Program Office at Kirtland Air Force Base to Perpetuate Multi-Million Dollar Fraud SchemeRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., returned an indictment yesterday charging four men with exploiting the now defunct Big Crow Program Office at Kirtland Air Force Base to perpetuate a multi-million dollar scheme to defraud the United States. The 46-count indictment charges Milton Boutte, 72, of Moriarty, N.M., George Lowe, 55, of Fort Washington, Md., and Jose Diaz, 58, and Arturo Vargas, 54, both of El Paso, Texas, with perpetuating the fraudulent scheme from Oct. 2004 through Feb. 2009, in Bernalillo County, N.M., and elsewhere.
Acting U.S. Attorney James D. Tierney announced the filing of the indictment after it was posted on the court’s website this morning. The four defendants will be summoned into federal court in Albuquerque for arraignment hearings on dates that have yet to be scheduled.
The indictment generally alleges that the defendants perpetuated their scheme to defraud the United States by submitting fraudulent invoices to federal agencies and fraudulently participating in a government program intended to promote minority-owned small businesses. According to the indictment, beginning in fall 2004, Boutte, who was then the Director of the Big Crow Program Office, and Lowe, a lobbyist, conspired and schemed with Diaz and Vargas, owners of minority-owned small businesses who had contracts with the Big Crow Program Office, to pay lobbyists, consultants and contractors with funds fraudulently obtained from the United States. The defendants allegedly did so even though the Big Crow Program Office was not authorized to lobby or to expend appropriated funds for lobbying activities under the contracts they were operating under.
The indictment alleges that the defendants facilitated their fraudulent scheme by exploiting a U.S. Small Business Administration (SBA) program intended to promote the development of small businesses owned by socially and economically disadvantaged individuals by making them eligible to obtain sole-source contracts from government agencies without competitive bidding. In April 1995, Diaz enrolled his company, Miratek, in the SBA program and received a sole-source contract valued at $1,332,109 to provide technical and managerial support for the Big Crow Program Office. After the sole-source contract was awarded to Miratek, the defendants allegedly conspired fraudulently to misapply funds to pay Lowe and other lobbyists for lobbying on Big Crow’s behalf, allegedly diverting at least $529,000 of the contract funds to pay Lowe and his firm, Broadcreek Associates. This allegedly violated the conditions of the SBA program and of Miratek’s contract because lobbying services were not within the authorized scope of work and because Lowe was not an employee of Miratek. In furtherance of their alleged frauds, the defendants allegedly disguised the nature of the claims for services purportedly provided by Lowe and other lobbyists.
The indictment alleges that, in April 2004, after Miratek’s eligibility for the SBA program expired, the defendants created a joint venture to take its place in the fraudulent scheme. According to the indictment, Diaz and Vargas created a joint venture known as Vartek, LLC, to afford Diaz the ability to continue to have access to sole-source contracts under the SBA program and to enable the defendants to continue to perpetuate their scheme to defraud the United States. The indictment alleges the SBA relied on the promises and representations of Diaz and Vargas and approved the Vartek joint venture on Dec. 20, 2005. Vartek was awarded two sole-source contracts, valued at approximately $3,209,116 and $3,847,939, respectively, to provide technical and analytical support for the Big Crow Program Office similar to the contracts previously awarded to Miratek.
The indictment alleges that Diaz and Vargas misappropriated funds authorized under the Vartek contracts to pay Lowe and other unauthorized lobbyists, consultants and contractors. Diaz and Vargas allegedly submitted fraudulent invoices to the U.S. Army Contracting Agency containing claims for payment for services purportedly provided by Lowe and other lobbyists, consultants and contractors. To conceal and disguise the nature of those payments, the defendants allegedly misrepresented in those invoices that Lowe and other lobbyists, consultants and contractors were Vartek employees. To further disguise the diversion of large sums, the defendants made fictional claims for work purportedly performed under the contracts by other persons. The defendants allegedly fabricated the hours that those purported employees worked on the contracts. Diaz and Vargas allegedly falsely represented that the lobbyists and consultants were “project managers” and billed the government at or near the highest rate allowed under the contracts. In aggregate, the defendants fraudulently claimed and obtained payments under the Vartek contracts totaling more than $5,800,000 for lobbyists, consultants and unauthorized contractors, of which at least $506,000 was diverted and paid to Lowe and his firm, Broadcreek Associates. Diaz also allegedly falsified and fabricated the hours that he himself worked under those contracts.
The indictment includes forfeiture provisions requiring that the defendants forfeit to the United States any property, real or personal, which constitutes or is derived from proceeds of their crime if the defendants are convicted of the offense of conspiracy to commit wire fraud.
Indictment 17-CR-3338-JB
Charges and Statutory Penalties
Count 1 charges Boutte, Diaz, Vargas and Lowe with conspiracy to defraud the United States with respect to claims, in violation of 18 U.S.C. § 286, and carries a maximum penalty of ten years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Count 2 charges Boutte, Diaz, Vargas and Lowe, with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and carries a maximum penalty of 20 years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Counts 3 and 4 charge Boutte, Diaz and Vargas with fraud against the United States, in violation of 18 U.S.C. § 1031, and aiding and abetting such fraud, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of 20 years of imprisonment and a fine not more than $5,000,000 if the loss is less than $500,000, but not to exceed $10,000,000 in the aggregate.
Counts 5 through 46 charge certain of the defendants with making false, fictitious and fraudulent claims, in violation of 18 U.S.C. § 287, and aiding and abetting the making of such claims, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of five years of imprisonment and a fine of not more than $250,000. Counts 5 through 9 charge Boutte, Diaz and Lowe; Counts 10 through 22 charge Boutte, Diaz, Vargas and Lowe; Counts 23 through 24 charge Boutte, Diaz and Vargas; and Counts 25 through 46 charge Boutte, Diaz and Vargas.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Major Procurement Fraud Unit of the U.S. Army Criminal Investigations Command, Defense Criminal Investigations Services, Defense Contract Audit Agency – Investigative Support, and U.S. Small Business Administration Office – Office of Inspector General, and General Services Administration – Office of Inspector General. Assistant U.S. Attorneys Timothy S. Vasquez and Jeremy Peña are prosecuting the case.
Boutte IndictmentEight Members/Associates of Cowboys Gang in South Carolina Sentenced for RICO Conspiracy and Violent Crimes in Aid of RacketeeringRead the Press Release
Eight members and one associate of the Cowboys gang, a violent street gang that originated in “Eastside” area of Walterboro, South Carolina, were sentenced this week in federal court in Charleston, South Carolina.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
U.S. District Court Judge David C. Norton sentenced Khiry Broughton, aka KBlacka, to 108 months in prison; Clyde Naquan Hampton, aka One Loyal Shooter, to 151 months in prison; Zaquann Ernest Hampton, aka TOB, to 84 months in prison; Matthew Rashaun Jones, aka Boogie Mac, to 151 months in prison; Bryant Jameek Davis, aka Savo, to time served; Christopher Sean Brown, aka Roughish, to 108 in prison; William Lamont Cox, aka Wataz, to time served; and Quintin Fishburne to time served. All were sentenced to three years of supervised release as well.
Khiry Broughton, Clyde Naquan Hampton, Matthew Rashuan Jones, and William Lamont Cox were each convicted of RICO conspiracy. Bryant Jameek Davis, Quintin Fishburne, Zaquann Ernest Hampton and Christopher Sean Brown were each convicted of attempted murder in aid of racketeering
Clyde Naquann Hampton and Zaquann Ernest Hampton are from Summerville, South Carolina. Matthew Rashaun Jones is from Cottageville, South Carolina. Khiry Broughton, Bryant Jameek Davis, Quintin Fishburne, and Christopher Sean Brown are from Walterboro, South Carolina, and William Lamont Cox is from Round O, South Carolina.
According to the respective Plea Agreements, all eight defendants were members/associates of the Cowboys gang, a violent street gang that originated in “Eastside” area of Walterboro, South Carolina. Members of the Cowboys show their allegiance by wearing red, white, and blue clothing, and carrying rags in these colors, including depictions of the American flag. Further, members of the Cowboys greet each other and show their membership in the gang using a set of hand-signs intended to evoke the shape of a “b.” This hand sign also shows an affiliation with the “Bloods” gang. Members of the Cowboys also show allegiance to the gang by having the words “Cowboy(s)” or “GMC” tattooed to some part of their body. The Cowboys gang was also, for a time, aligned with another violent street gang called the “Wildboys,” that originated out of the Green Pond area of Walterboro, South Carolina. In addition to sharing a common interest in posting threats, firearms, large amounts of cash, and what purported to be narcotics on Facebook and YouTube, Cowboys and Wildboys shared common enemies. These shared interests resulted in shootings, aimed at rival gang members, which left innocent by-standers seriously injured.
According to his Plea Agreement, Khiry Broughton was sentenced for his role as leader of the Cowboys. In addition, Broughton and Fishburne were sentenced for their roles in a Nov. 6, 2015 attempted murder. Broughton, along with co-defendants Dashawn Brown and Quintin Fishburne, attended a drag race outside of Walterboro. After bets were placed, Broughton questioned the results of the race and demanded the winnings, which were held by one of the race drivers. Broughton decided to rob the winner of the race and in so doing retrieved a backpack containing firearms from Fishburne’s vehicle. Broughton provided the firearms to members of the Cowboys. After the winner refused to provide the money, the winner and another innocent bystander were shot and severely injured. After the shooting occurred, Fishburne, who transported Broughton and Brown to the race, drove Broughton and Brown from the scene to avoid apprehension by the police.
Clyde Naquan Hampton was sentenced for his role in a July 6, 2010 shooting aimed at individuals Hampton believed disrespected him. After throwing up the “b” sign and shouting allegiance to the Cowboys, Hampton fired several shots toward the victims. Hampton was also sentenced for his role in a July 12, 2010 shooting aimed at a rival gang member. After the shooting occurred, shell casings were recovered from the scene and analyzed. Analysis confirmed that the firearm Hampton used was the same as that used in the July 6, 2010 shooting. Hampton was also sentenced for his role in the May 30, 2013 drive-by shooting aimed at rival gang members. Hampton was the driver of this vehicle while two other members of the Cowboys, Matthew Rashuan Jones and Christopher Sean Brown, fired multiple shots at the residence where they believed rival gang members allegedly lived.
Matthew Rashaun Jones was sentenced for his role in a May 12, 2011 drive-by shooting aimed at an individual he believed was a member of a rival gang. Jones, a passenger in the vehicle, along with Dashawn Trevell Brown, fired multiple shots at the individual. Jones was also sentenced for his role in a May 30, 2013 drive-by shooting aimed at rival gang members. While riding in a vehicle driven by Clyde Naquann Hampton, Jones and Christopher Sean Brown fired multiple shots at the residence.
Bryant Jameek Davis was sentenced for his role in a Sept. 28, 2014 shooting in Walterboro, South Carolina. Davis exchanged words with an individual believed to be a member of a rival gang. After exchanging words with the individual and while possessing a firearm, Bryant fired at least two shots at the victim, striking him in the neck and clavicle resulting in serious bodily injury.
William Lamont Cox was sentenced for his role in the distribution of various amounts of controlled substances, namely crack cocaine, from July 30, 2015 to Oct. 15, 2015. Cox used members of the Cowboys to assist in protecting and selling the narcotics.
Zaquann Ernest Hampton was sentenced for his role in the Oct. 28, 2012 robbery that resulted in a shooting of the victim. Hampton, and other associates of the Cowboys gang, placed an order of marijuana from the victim. When the victim arrived, Hampton and his associates, tried to rob the victim, and in so doing, brandished and discharged a firearm that resulted in serious bodily injury.
Christopher Sean Brown was sentenced for his role in the May 30, 2013 drive-by shooting aimed at members of a rival gang. Brown, and Jones, who were passengers in a vehicle driven by Clyde Naquann Hampton, fired multiple shots in the residence they believed was occupied by members of the rival gang.
As part of the sentence, Khiry Broughton, Clyde Naquann Hampton, Matthew Rashaun Jones, and William Lamont Cox were ordered to serve a term of three years of supervised release and to pay the costs of medical care for the victims who received medical care as a result of the injuries. Zaquann Ernest Hampton, Bryant Jameek Davis, Quintin Fishburne, and Christopher Sean Brown were ordered to serve a term of three years of supervised release and pay the costs of medical care for those victims injured as a result of the crime.
Dashawn Trevell Brown, a member of the Cowboys, who pleaded guilty to RICO conspiracy, is scheduled to be sentenced on Dec. 15.
The case was investigated by the ATF, Charleston, South Carolina, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section from Washington, D.C. and Special Assistant U.S. Attorney Tameaka A. Legette from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
Eagle Butte Man Indicted on Methamphetamine Charges and Distribution of a Controlled Substance Where Children are PresentRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for conspiracy to distribute a controlled substance, distribution of a controlled substance, and distribution of a controlled substance where children are present.
Rafael Lombarana Davila, age 32, was indicted on July 11, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 22, 2017, and pled not guilty to the Indictment.
The maximum penalties upon conviction are up to 40 years in custody and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between April 1, 2014, and July 11, 2017, Davila knowingly and intentionally combined, conspired, confederated and agreed with others to intentionally distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. The Indictment further alleges that on or about December 22, 23, and 27, 2016, Davila actually distributed methamphetamine to another individual, and distributed methamphetamine where children resided and were present.
The charges are merely accusations and Davila is presumed innocent until and unless proven guilty.
This case is being investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Davila was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Des Moines Tax Preparer Sentenced to 45 Months in Prison for Tax FraudRead the Press Release
DES MOINES, Iowa – On November 29, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Lony Tap Gatwas, 48, of Ames, Iowa, to 21 months in prison for wire fraud and tax fraud, and 24 months for aggravated identity theft, to be served consecutively to one another, for a total of 45 months, announced United States Attorney Marc Krickbaum. Gatwas was also ordered to pay $132,585 in restitution to the Internal Revenue Service (IRS), serve three years of supervised release following his imprisonment, and pay $1,800 to the Crime Victims’ Fund.
On July 26, 2017, following a jury trial, Gatwas was found guilty of four counts of wire fraud, seven counts of aggravated identity theft, and seven counts of preparing and presenting false tax returns. Gatwas operated a tax preparation business in Des Moines. As stated in the indictment, Gatwas engaged in a scheme to defraud the IRS by preparing and filing personal income tax returns listing false dependents. During trial, the government presented evidence that Gatwas placed his own children, as well as other children, on his clients’ personal income tax returns as dependents, when these children had no relationship to the taxpayers, did not live with the taxpayers, and the taxpayers provided no financial support for the children.
Gatwas inflated his clients’ refunds by thousands of dollars by placing false dependents on his clients’ tax returns. Clients’ testimony established Gatwas charged them from $1,000 to $2,000 for each false dependent he put on their return. When his clients were audited, Gatwas instructed some clients to lie to IRS Revenue Agents about their relationship with the false dependents.
The IRS – Criminal Investigation conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Czar Entertainment Founder James Rosemond Convicted in Manhattan Federal Court for Ordering the Murder of Lowell FletcherRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JAMES ROSEMOND, a/k/a “Jimmy the Henchman,” was found guilty last night of murder-for-hire, conspiracy to commit murder-for-hire, and firearms offenses for ordering the murder of Lowell Fletcher, a/k/a “Lodi Mack.” The jury convicted ROSEMOND on all counts in the controlling indictment following a nine-day retrial before United States District Judge Lewis A. Kaplan.
Acting U.S. Attorney Joon H. Kim said: “James Rosemond’s team of hitmen assassinated Lowell Fletcher as payback for an assault on Rosemond’s son. Rosemond’s defense at trial – that he hired these men to shoot Fletcher, but did not intend for Fletcher to be killed – was swiftly and unanimously rejected by the jury. Justice for Fletcher’s family has been a long time coming, in part because of a hung jury and an overturned conviction in two prior trials, but that thanks to the unwavering commitment and tireless work of the detectives, agents, and prosecutors on this case, it is finally here.”
According to court papers and the evidence at trial:
JAMES ROSEMOND was the founder of Czar Entertainment, a rap music management company, and also the head of a large-scale cocaine trafficking organization. In March 2007, members and associates of a rival rap music group known as “G-Unit,” including Marvin Bernard, a/k/a “Tony Yayo,” and Lowell Fletcher, a/k/a “Lodi Mack,” assaulted ROSEMOND’s son. ROSEMOND’s son was not seriously injured in the assault, and Fletcher ended up serving prison time for his involvement in the assault. Nevertheless, in 2009, ROSEMOND recruited a crew of men to murder Fletcher upon his release from prison by promising at least $30,000 in payment for killing Fletcher. At ROSEMOND’s direction, members of the murder crew selected a dark and secluded location for the murder in the vicinity of Mount Eden and Jerome Avenues in the Bronx, and lured Fletcher to that spot. When Fletcher arrived there in the evening on September 27, 2009, a member of the murder crew stepped out of the shadows and fired five bullets into Fletcher’s back and arms using ROSEMOND’s .22 caliber handgun with a silencer. Fletcher died later that night. On October 2, 2009, ROSEMOND had a trusted employee of his cocaine organization provide a kilogram of cocaine – worth about $30,000 in street value – to a member of his murder crew as payment for the murder.
For his role in ordering, planning, and paying for the murder of Lowell Fletcher, ROSEMOND was convicted of one count of substantive murder-for-hire, one count of conspiracy to commit murder-for-hire, and two firearms counts. ROSEMOND faces a mandatory minimum sentence of life in prison. ROSEMOND is scheduled to be sentenced on March 13, 2018, before Judge Kaplan.
At the conclusion of ROSEMOND’s first trial, in February and March 2014, a mistrial was declared after the jury was unable to reach a unanimous verdict on the counts against ROSEMOND relating to the murder-for-hire of Fletcher. At ROSEMOND’s second trial in December 2014, ROSEMOND was convicted on all counts. On appeal to the United States Court of Appeals for the Second Circuit, ROSEMOND argued in part that his conviction in this murder-for-hire case should be overturned because certain rulings by the trial court effectively barred him from advancing a line of defense that ROSEMOND wanted to pursue – namely, ROSEMOND’s claim that although he ordered hitmen to shoot Fletcher, he did not intend for the shooting to result in Fletcher’s death. In November 2016, the Second Circuit vacated ROSEMOND’s conviction and remanded the case for a new trial. The case was reassigned to Judge Kaplan for retrial. ROSEMOND presented that defense at this third trial, which began on November 6, 2017, and ended on November 28, 2017, when a unanimous jury found ROSEMOND guilty of all the charges against him.
Acting U.S. Attorney Kim thanked and praised the U.S. Drug Enforcement Administration, the New York City Police Department, the U.S. Department of Homeland Security, and the U.S. Marshals Service for their persistence and outstanding work in this investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. The trial was conducted by Assistant U.S. Attorneys Samson Enzer, Drew Skinner, and Elizabeth Hanft.
Credit Repair Business Owner Pleads Guilty to Tax Fraud ChargesRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of JOSEPH ARNOLD MCGLYNN, JR., 33, former owner, CEO and President of United Credit Consulting (“UCC”), for failing to account for and pay over employment taxes. MCGLYNN, JR., who was indicted on August 8, 2017, pleaded guilty yesterday before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
According to the plea agreement and documents filed in court, while MCGLYNN, JR. was the owner, CEO and President of UCC, a credit repair service company located in Burnsville, Minn., MCGLYNN, JR. was responsible for ensuring that UCC’s Employer’s Quarterly Federal Tax Returns were filed and that employment taxes were paid. However, although MCGLYNN, JR. caused employment taxes to be withheld from the wages of UCC employees, he failed to pay over such taxes to the Internal Revenue Service (“IRS”). Instead, MCGLYNN, JR. used the money to fund a lavish lifestyle, including luxury vacations, rentals of luxury vehicles, visits to strip clubs and purchases of luxury items such as jewelry and handbags. In total, MCGLYNN, JR. failed to pay to the IRS at least $159,157 in employment taxes.
The defendant’s wife and former employee of United Credit Consulting, TARA MARIE MCGLYNN, 32, pleaded guilty on January 17, 2017, to filing a false tax return.
Both cases are the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorney Michelle E. Jones is prosecuting the cases.
Defendant Information:
JOSEPH ARNOLD MCGLYNN, JR., 33
Burnsville, Minn.
Convicted:
- Willful failure to account for and pay over employment taxes, 2 counts
TARA MARIE MCGLYNN, 32
Eden Prairie, Minn.
Convicted:
- Filing a false tax return, 1 count
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Cleveland man sentenced to 17 years in prison for selling heroin that caused three overdoses in WoosterRead the Press Release
A Cleveland man was sentenced to 17 years in prison for selling heroin that caused three overdoses in Wooster last year, law enforcement officials said.
Demetrius L. Frizzell, 31, previously pleaded guilty to one count of conspiracy to distribute heroin and one count of attempted witness tampering.
Wooster police learned about a heroin overdose victim who on Nov. 3 was brought to an emergency room unresponsive and appeared to be deceased. He was revived after emergency-room staff administered 12 doses of Narcan. Investigators traced the sale of heroin to Frizzell, according to court documents.
Frizzell also sold heroin on Oct. 29 and Nov. 2 that resulted in overdoses. All three people who overdosed were revived with Narcan, according to court documents.
Frizzell made a call from jail to an unknown male and instructed him to go to the home of one of the people who overdosed called and get him “in line,” according to court documents.
“This defendant sold heroin that resulted in several overdoses and would have caused deaths, but for the intervention from first responders and hospital personnel,” said U.S. Attorney Justin E. Herdman. “Aggressive enforcement, combined with increased prevention and education efforts, is our best chance to turn around this epidemic.”
DEA Special Agent in Charge Timothy Plancon stated: “Overdoses and overdose deaths related to heroin have become an epidemic across the country and Ohio has been hit particularly hard by this problem. Identifying and bringing to justice those individuals that distribute illegal drugs that result in an overdose is one of DEA’s top priorities.”
MEDWAY Director Donald Hall said: “The MEDWAY Drug Enforcement Agency will continue to collaborate and work closely with our federal partners to hold people accountable for their actions who are involved in trafficking drugs in our communities.”
This case was investigated by the Drug Enforcement Administration, the MEDWAY Drug Enforcement Agency, the Wooster Police Department and the Wayne County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Mark Bennett.
Bridgeport Man Sentenced to Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANORIS DELGADO, also known as “Alex,” 29, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to five months of imprisonment, followed by three years of supervised release, for distributing heroin. Judge Bolden ordered DELGADO to serve the first six months of his supervised release in home confinement.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the morning of April 25, 2016, Bridgeport Police and medical personnel responded to a location on Washington Avenue on a report of a possible drug overdose. The overdose victim was revived with two doses of Narcan and was transported to the hospital. A friend of the victim, who was with the victim at the time and contacted medical professionals after the overdose, told investigators that he and the victim purchased heroin from and individual he knew as “Eric” in the area of Brooks Street and Ogden Street in Bridgeport. The victim subsequently identified DELGADO’s brother, Erick Delgado, as the source of the heroin he used.
In the evening of April 25, 2016, Monroe Police and emergency medical personnel responded to a report of an unresponsive 48-year-old male at residence in Monroe. The victim was pronounced dead at the scene. A subsequent interview with an acquaintance of the victim revealed that, on April 25, the victim and his acquaintance traveled to the area of Brooks Street and Ogden Street where the victim purchased heroin from Erick Delgado.
The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be acute fentanyl intoxication.
On May 3, 2016, an individual working with law enforcement contacted Erick Delgado to arrange the purchase of heroin. When the individual and an undercover officer arrived in the area of Brooks Street and Ogden Street, they were met by ANORIS DELGADO who subsequently provided them with 20 bags of heroin. The undercover officer purchased another 20 bags of heroin from ANORIS DELGADO on May 20.
ANORIS DELGADO was arrested on June 21, 2016, and was subsequently released on bond. On October 25, 2016, he pleaded guilty to one count of distribution of heroin. He has been detained since July 11, 2017, when his bond was revoked.
Erick Delgado pleaded guilty to the same charge and, on January 26, 2017, was sentenced to 13 months of imprisonment.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Monroe and Bridgeport Police Departments. The case is was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Baton Rouge Man Pleads Guilty to Transporting Child PornographyRead the Press Release
Acting United States Attorney Corey R. Amundson announced that ANDREW EASTERLY, age 20, of Baton Rouge, Louisiana, pleaded guilty yesterday before Chief U.S. District Judge Brian A. Jackson to transporting child pornography. Easterly faces a significant period of imprisonment when sentenced on March 29, 2018.
According to Easterly’s admissions to the Court in connection with his guilty plea, beginning in March 2015, and continuing until May 2015, Easterly used his computer and other electronic devices to upload sexually explicit images of children to an online social media website, which allowed his followers and other members of the public to access, view, and share the images. Law enforcement recovered multiple electronic devices used by Easterly to store more than 300 images and videos of sexually explicit depictions of prepubescent minors and toddlers, as well as images produced by Easterly depicting minor victims in various states of nudity and intimate behaviors.
Acting U.S. Attorney Amundson stated, “Fighting against the sexual exploitation of children requires the kind of dedicated federal, state, and local effort exemplified in this matter. Our office looks forward to continuing to work hand-in-hand with our partners at the Attorney General’s Office, HSI, BRPD, and EBRSO to make our community, state, and nation a safer place. My gratitude to the prosecutors and agents who worked diligently on this important matter.”
“We are pleased that this case, initiated by our office’s investigation, has resulted in a guilty plea by Mr. Easterly for the transportation of child pornography,” said Louisiana Attorney General Jeff Landry. “Today’s conviction is a direct result of the hard-work and communication with our law enforcement partners. Our office will continue our efforts to find child predators and bring them to justice.”
This matter was a joint effort involving the United States Attorney’s Office, the Louisiana Attorney General’s Office – Cyber Crime Unit, and the U.S. Department of Homeland Security – Homeland Security Investigations, with assistance from the Baton Rouge Police Department and the East Baton Rouge Parish Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Jamie A. Flowers, Jr.