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Monday 2 October 2017
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on September 18, 2017, by U.S. District Judge Roberto A. Lange.
Douglas LaPlante, Jr., age 26, was sentenced to 12 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
LaPlante was indicted by a federal grand jury on February 15, 2017. He pled guilty on June 28, 2017.
The conviction stems from an incident on October 28, 2016, when LaPlante’s girlfriend called the Cheyenne River Sioux Tribe (CRST) Police Department because he was intoxicated and she wanted him removed from the residence. A CRST Officer responded to the call. After gaining access to the apartment, the officer confirmed that LaPlante’s girlfriend still wanted him to be removed. Once he got confirmation, the officer attempted to remove LaPlante from the residence. LaPlante doubled up his fist and hit the officer in the face/jaw. A struggle ensued between the officer and LaPlante and the two of them fell to the floor. When LaPlante got up, he repeatedly advanced on the officer, swinging at him. At one point, LaPlante got close enough that the officer grabbed him and took him to the ground. LaPlante continued to resist and attempt to get away. The officer was able to retrieve his O.C. spray from his duty belt and apply a single stream to LaPlante's face. This brought LaPlante into compliance, and he was taken into custody.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
LaPlante was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Assault with a Dangerous WeaponRead 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 Assault with a Dangerous Weapon.
Colton White Feather, age 22, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 26, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 4, 2017, White Feather unlawfully assaulted an adult male with a knife, with intent to do bodily harm to said victim.
The charge is merely an accusation and White Feather is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
White Feather was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dominican National Sentenced for Illegal Reentry after DeportationRead the Press Release
Boston – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Jose Manuel Arroyo, a/k/a Juan Manuel Tejeda-Serrano, 39, a Dominican national residing in Boston, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 21 months in prison and three years of supervised release. Arroyo will be subject to deportation proceedings upon completion of his sentence. In May 2016, Arroyo pleaded guilty to one count of illegal reentry after deportation.
Between 2005 and 2014, Arroyo was deported from the United States five times. Between 2010 and 2013, Arroyo was convicted of illegal reentry after deportation on three occasions in federal court in Boston, as well as once in Texas in 2006. Arroyo most recently came to the attention of federal immigration officials after being arrested for identity fraud. In March 2017, Arroyo, under the name Juan Manuel Tejeda-Serrano, pleaded guilty in federal court in Boston to one count of conspiracy to distribute and possess with intent to distribute controlled substances, including cocaine. His sentencing is scheduled for November 2017.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
District Teenager Sentenced to 14 Years in Prison for Series of Armed RobberiesRead the Press Release
WASHINGTON – Jarod Ingram, 17, of Washington, D.C., has been sentenced to a 14-year prison term for a series of armed robberies he committed earlier this year against people responding to sales notices on “OfferUp, U.S. Attorney Jessie K. Liu announced today.
Ingram was charged as an adult given the serious nature of his crimes. He pled guilty in April 2017, in the Superior Court of the District of Columbia, to armed robbery and firearms offenses. He was sentenced on Sept. 29, 2017, by the Honorable Thomas J. Motley. Following his prison term, Ingram will be placed on five years of supervised release.
According to the government’s evidence, Ingram committed four robberies in less than three weeks of victims who set up meetings by using the digital application “OfferUp,” which permits users to buy or sell items. The victims were planning to purchase iPhones or a laptop computer that were listed on the site.
The first armed robbery took place at about 7:15 p.m. on Jan. 20, 2017, in the 300 block of Taylor Street NE. The victim was robbed of $300 that he had brought for an iPhone. The second crime took place at about 2:30 p.m. on Feb. 4, 2017, in the 400 block of Taylor Street NE, with another victim likewise surrendering $300 at gunpoint.
Two more armed robberies took place on the following day, Feb. 5, 2017. The first occurred at noon in the 600 block of Riggs Road NE; in this instance, Ingram robbed a woman of $500 and took an iPhone out of her pre-school son’s hands. Finally, at 3:50 p.m. on Feb. 5, 2017, Ingram robbed a man of $250 in the 4900 block of Third Street NW. An investigation by the Metropolitan Police Department (MPD) led to Ingram’s arrest the following day.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the efforts of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond, Victim/Witness Advocate James Brennan, and Assistant U.S. Attorney Gregory Rosen, who investigated and prosecuted the matter.
Director of South Korea’s Earthquake Research Center Sentenced to 14 months in Federal Prison for Money Laundering Stemming from Million Dollar Bribe SchemeRead the Press Release
LOS ANGELES – A former director of South Korea’s Earthquake Research Center at the Korea Institute of Geoscience and Mineral Resources (KIGAM) has been sentenced to 14 months in federal prison for using a Southern California bank account to launder bribes he received from two seismological companies, including one based in Pasadena.
Heon-Cheol Chi, 59, of South Korea, was sentenced today by United States District Judge John F. Walter on one count of engaging in financial transactions with criminally derived property stating that this sentence “should send a clear message that this will not be tolerated by the law." Chi was convicted in July of the money laundering charge following a four-day jury trial in United States District Court. According to the evidence presented at trial, Chi laundered the proceeds of bribes he had accepted in violation of South Korea law. In addition to the prison term, Chi was ordered to pay a $15,000 fine and to serve one year of supervised release following the completion of his term in federal custody.
According to trial testimony, from at least 2009 through 2015, Chi abused his official position at KIGAM to demand and receive over $1 million in bribes from two seismological companies in exchange for providing them with unfair business advantages in the South Korean seismological market. The trial evidence showed that Chi advocated the purchase and use of equipment from these two companies by KIGAM and other South Korean customers. He also provided these companies with market intelligence and inside information, including confidential information about their competitors and the KIGAM bidding process.
The evidence showed that Chi directed that his bribe payments be paid in cash or wired to his personal account at a Bank of America branch in Glendora. Chi transferred approximately half of the bribe payments sent to that account to an investment account he held in New York City, and spent approximately 70 percent of the remaining funds in South Korea, where he resided and worked.
In addition to his use of cash payments and the U.S. banking system, the trial evidence showed that Chi took a number of steps to conceal his bribery scheme, including instructing representatives of the companies to delete or not respond to his emails, requesting that these company representatives not inform his colleagues at KIGAM of his illegal arrangements with these companies, and by sending fictitious invoices listing a false address in New Jersey.
The evidence at trial included numerous emails in which Chi admitted that he was acting illegally and that he accepted bribes that exceeded his legitimate income from KIGAM by a substantial margin.
The case against Chi is part of an ongoing investigation by the FBI’s International Corruption Squad in Los Angeles. Assistant United States Attorney Poonam Kumar of the Major Frauds Section, and Trial Attorneys David Fuhr and Anna Kaminska of the Criminal Division’s Fraud Section, prosecuted the case.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.
Detroit felon sentenced to federal prison for gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to a year and three months in federal prison for a gun charge, announced United States Attorney Carol Casto. Deandre Lamar Harris, 31, previously pleaded guilty to being a felon in possession of ammunition.
On January 18, 2014, members of the West Virginia State Police conducted a search at 345 Sixth Avenue in Huntington, a residence used by Harris. The search was conducted after law enforcement received information that a stolen firearm had been taken there to pay a drug debt to another individual. Law enforcement located Harris in the residence, along with two other individuals, one of whom was alleged to have received the firearm. At the time of the search, Harris was in possession of several rounds of .25 caliber ammunition. Harris was prohibited from possessing ammunition under federal law because of felony convictions in 2007 in Cabell County Circuit Court for malicious wounding and for attempt to commit a felony.
The West Virginia State Police conducted the investigation. Assistant United States Attorney R. Gregory McVey handled the prosecution. United States District Judge Robert C. Chambers 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 with existing local programs targeting gun crime.
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Defendants in Massachusetts Registry of Motor Vehicles Identity Theft Scheme Agree to Plead GuiltyRead the Press Release
BOSTON – Five individuals have agreed to plead guilty in federal court in Boston for their roles in a scheme to produce false identification documents through the Massachusetts Registry of Motor Vehicles (RMV).
Evelyn Medina, 56, of Boston; Annette Gracia, 37, of Boston; Kimberly Jordan, 33, of Randolph; David Brimage, 46, of Boston; and Bivian Yohanny Brea, 41, of Boston, have agreed to plead guilty to one count of producing without lawful authority an identification document or a false identification document. At the time of their arrest, Medina, Gracia, Jordan, and Brimage were all employed as clerks at the Haymarket Registry of Motor Vehicles.
Angel Miguel Beltre Tejada, 32, a Dominican national illegally residing in Jamaica Plain, was charged in an Information with one count of aggravated identity theft. The defendants were arrested in August 2017.
In October 2015, law enforcement received an anonymous letter alleging that a corrupt RMV employee was providing Massachusetts identifications and drivers’ licenses to individuals who were using false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were working with Brea and Tejada to fraudulently provide Massachusetts licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. Tejada and Brea would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejada would receive several hundred dollars in cash each time he sold identification documents. Brea received up to $2,700 per identity for her role in the scheme, which included helping clients obtain the documents and facilitating their acquisition of Massachusetts identity documents.
Typically, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
If the Court accepts the binding plea agreements for the clerks, Medina will be sentenced to 15 months in prison; Gracia to one year and one day in prison; Jordan to eight months in prison; and Brimage to eight months in prison. They all face two years of supervised release. Brea, who has entered a non-binding plea agreement, faces a sentence of no greater than 15 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft for which Tejada is charged provides for a mandatory minimum of two years in prison. Tejada will also be subject to deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security, Boston Field Office; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. HSI’s Document and Benefit Fraud Task Force investigated the case. Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Connecticut Man Sentenced to 6 Years for Fentanyl TraffickingRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Raheem Childers, 32, of New London, Connecticut, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr., to six years in prison and three years of supervised release for possession with the intent to distribute fentanyl. Childers pleaded guilty on August 16, 2016.
According to court records on May 26, 2017, federal agents executed a search warrant at a hotel room in Orono, Maine where they found Childers, $2,500, and 168 grams of fentanyl. Childers admitted that he had been in the area selling the drug.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance provided by the Somerset County Sheriff’s Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Compton Man Sentenced to 13 Years in Federal Prison for Illegally Selling FirearmsRead the Press Release
LOS ANGELES – A Compton man with a lengthy criminal history was sentenced today to 156 months in federal prison for firearms offenses, including dealing firearms without a license.
Francisco Juantonio Hilt, 39, of Compton, was sentenced by United States District Court Judge R. Gary Klausner after a jury found him and Sean Ronaldo Alexander, 37, of South Los Angeles, guilty in March of seven illegal gun transactions involving a total of 30 guns, including military-style weapons and stolen firearms. The evidence at trial showed that the men believed they were supplying guns to the Armenian Mafia and the “Mexican Cartel,” and Hilt believed the buyer was a convicted felon. Both Hilt and Alexander were found guilty of conspiracy and engaging in the business of dealing in firearms without a license. Hilt was also convicted of several counts of being a felon in possession of firearms and sale of a firearm to a convicted felon.
On July 12, 2017, Judge Klausner sentenced Alexander to 24 months’ imprisonment.
A third con-conspirator – Jamie Maurice Thomas, 38, of South Los Angeles – pleaded guilty in November 2016 to conspiracy and selling a firearm to a convicted felon. Judge Klausner sentenced Thomas to 63 months in federal prison in March.
The three defendants were charged as part of an operation last year by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) targeting the sale of guns in and around Compton and Mona Park in the Willowbrook area of Los Angeles. During the course of the year-long investigation, authorities took more than 100 illegally trafficked firearms off the streets, and 14 defendants were charged in federal and state court.
The case against Hilt, Alexander, and Thomas was investigated by ATF and was prosecuted by Assistant United States Attorney Veronica Dragalin of the General Crimes Section and Assistant United States Attorney Bryant Yang of the Organized Crime Drug Enforcement Task Force Section.
Compounding Pharmacy Owner Charged with $10 Million Health Care FraudRead the Press Release
BIRMINGHAM – Federal prosecutors today charged the owner of a Decatur compounding pharmacy with conspiracy to defraud a federal health insurance program out of more than $10 million. U.S. Attorney Jay E. Town, Food and Drug Administration, Office of Criminal Investigation, Miami Field Office, Special Agent in Charge Justin Green and Defense Criminal Investigative Service Special Agent in Charge John F. Khin announced the charge.
The U.S. Attorney’s Office charged JOHN CHRISTOPHER LEMLEY, 51, of Decatur, with the conspiracy and seeks to have him forfeit nearly $1 million as proceeds of the fraud. Most of that amount already has been seized from bank accounts held by Lemley or his businesses, according to the charges.
In conjunction with the one-count information filed in U.S. District Court, prosecutors also filed a plea agreement with Lemley. As part of that agreement, Lemley agrees to forfeit $918,234, along with a 2015 Lexus Gx-460 Premium purchased with criminal proceeds. Lemley must appear before a judge to formally enter a guilty plea.
“This defendant took part in a conspiracy that employed improper contracts, kickbacks, mislabeled drugs and prescription forgeries in order to bilk millions of dollars from the federal health insurance program meant for America’s military members and their families,” Town said. “The FDA and DCIS did a tremendous job uncovering this fraud and our office remains committed to prosecuting every single one of these types of cases.”
“American consumers rely on FDA to ensure that their drugs are safe, effective and properly labeled,” Green said. “Today’s announcement should serve as a reminder of our continued focus on those who put profits ahead of the U.S. public health by distributing misbranded products.”
“In concert with our investigative partners, DCIS aggressively pursues fraud and corruption that undermines the integrity of Department of Defense programs, especially those involving the well-being of our Warfighters who deserve the best medical care available,” Khin said. “It is unconscionable for a health care provider to make profits by taking advantage of military members and their families when they are most vulnerable.”
Lemley owned a Decatur pharmacy that operated as Southern Compounding. He also owned Apotheca Supply, which was licensed to relabel and repackage pharmaceutical drugs and was located in a suite that adjoined Southern Compounding on U.S. Highway 31 South. Lemley also had a 20 percent membership interest in Medworx Sunflower LLC, an affiliate of Medworx Compounding, a compounding pharmacy in Ridgeland, Miss., according to the information and plea agreement.
Between February 2015 to January 2016, Lemley conspired with others at Medworx Sunflower and Southern Compounding to defraud TRICARE, a U.S. Department of Defense health care program, and third-party prescription-drug program administrators Express Scripts Incorporated and OptumRx Inc., according to the court documents.
Southern Compounding submitted prescription reimbursement claims to TRICARE as part of ESI’s pharmacy network. The pharmacy submitted claims to various insurance plans as part of OptumRx’s pharmacy network.
As part of the conspiracy, Lemley conducted the fraud by various means that included improperly contracting with Medworx Compounding to refer prescriptions to Southern Compounding, paying kickbacks to independent sales representatives as incentive to refer TRICARE prescriptions, selling misbranded over-the-counter medications as prescription drugs and not reversing claims on prescriptions Lemley knew were forged, according to the court documents.
Although ESI’s regulations prohibited Southern Compounding from subcontracting any of its work, Southern entered a management agreement with Medworx in early 2015 whereby Medworx referred prescriptions to Southern Compounding, according to Lemley’s plea agreement. Southern filled the prescriptions, billed third-party administrators for them and sent almost all the payments received to Medworx. Medworx then returned a portion of those payments directly to Lemley, the plea agreement says. The amount returned totaled $918,234, representing a distribution for Lemley’s 20 percent membership interest in Medworx Sunflower.
Southern Compounding’s billings to TRICARE soared in the two months after Southern entered its agreement with Medworx, according to the plea agreement. In the 13 months prior to the agreement, TRICARE paid claims of about $215,561 to Southern. In the two months following the February 2015 agreement, TRICARE, through ESI, paid about $10.5 million in claims to Southern, according to the plea agreement. More than 90 percent of that was profit.
In accordance with Southern’s management agreement with Medworx, Lemley transferred most of the money – about $10.2 million – to Medworx. Most of the transferred money was to fund kickbacks to the independent sales representatives, according to the plea agreement.
Lemley faces a maximum sentence of 5 years in prison.
FDA-OCI and DCIS investigated the case, which Assistant U.S. Attorney Chinelo Dike-Minor is prosecuting.
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Cape Cod Woman Sentenced for Role in Drug and Money Laundering RingRead the Press Release
BOSTON – A Cape Cod woman was sentenced today in federal court in Boston in connection with a drug and money laundering ring.
Diane Johnson, 51, of Mashpee, was sentenced by U.S. District Court Judge Indira Talwani to five years of probation, with the first six months to be served in home detention. In May 2017, Johnson pleaded guilty to one count of money laundering conspiracy.
From 2010 to 2015, Johnson and her son David Landry conspired to launder drug proceeds in order to disguise the nature of the funds and continue their drug trafficking activity. From May 2014 to January 2015, two of Johnson’s co-defendants, Landry and Justin Groom, conspired to manufacture and distribute marijuana and possessed marijuana with the intent to distribute it. Landry, a convicted felon, was also found in possession of a .40 caliber semi-automatic pistol. He continued participating in the criminal offense while in jail on state charges. Groom was also charged with eight counts of money laundering in connection with using the proceeds of the illegal activities to pay the rent of the home where he grew marijuana, at Landry’s direction. A third co-defendant, Evan Lopes, aided by Landry, possessed methylone.
David Landry was sentenced to 78 months in prison; Justin Groom and Evan Lopes were sentenced to two years and three years of probation, respectively.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Barnstable Police Chief Paul MacDonald; Barnstable County Sheriff James M. Cummings; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Cape & Islands District Attorney Michael O’Keefe made the announcement. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Burley Man Pleads Guilty to Illegal Drug TraffickingRead the Press Release
POCATELLO – Lucio Juarez, 36, of Burley, Idaho, pleaded guilty today to conspiracy to distribute methamphetamine, United States Attorney Bart M. Davis, announced.
According to the plea agreement, Juarez sold methamphetamine to an undercover law enforcement agent four times between December 6, 2016, and April 3, 2017. A fifth sale was arranged, but Juarez was arrested prior to the sale taking place. At the time of his arrest, Juarez had in his possession approximately 11 ounces of methamphetamine. In total, Juarez sold more than 20 ounces of methamphetamine.
The charge of conspiracy to distribute methamphetamine is punishable by at least 5 and up to 40 years in prison, a maximum fine of $5,000,000, and four years up to a life term of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Idaho State Police, the Cassia County Sheriff’s Office, and the Minidoka County Sheriff’s Office.
Broward Resident Charged in Social Security Theft SchemeRead the Press Release
A Fort Lauderdale woman was charged this morning in federal court with stealing social security benefits for over a decade.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, announce that Myriam Etienne, 49, of North Fort Lauderdale, was charged with 90 counts of theft of government funds, in violation of Title 18, United States Code, Section 641. The defendant had her initial appearance today in Fort Lauderdale Federal Court.
According to information presented in court, the defendant falsely obtained Social Security Supplemental Security Income for her grandfather, who died in 2003 and her grandmother, who died in 2008, after their respective deaths, until June 2016. The Social Security Administration administers numerous programs to provide for the material needs of individuals and their families, including supplemental security income. Monthly benefits are paid to eligible individuals. Court records reflect that these benefits were paid to the defendant’s grandmother and grandfather. The funds were direct deposited into a joint bank account the defendant shared with her deceased grandparents. After her grandmother’s and grandfather’s deaths, the defendant received approximately $125,000 in payments from the SSA.
If convicted, the defendant faces a potential penalty of up to ten years in prison, three years of supervised release, a $250,000 fine and restitution as to each count.
Mr. Greenberg commended the investigative efforts of SSA’s Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Randy Katz.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Aurora Man Indicted for Fraud and Money LaunderingRead the Press Release
DENVER -- Justin Manning, age 40, of Aurora, Colorado, was indicted by a federal grand jury on September 26, 2017 on charges of wire fraud, money laundering and filing false tax returns, Acting United States Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. Today, October 2, 2017, Manning is scheduled to appear before a U.S. Magistrate Judge where he will be advised of his rights and the charges pending against him.
According to information contained in the indictment, between 2012 and 2015, Manning was employed as an asset protection manager and assistant store manager at a local Walmart. In those job positions, Manning had access to blank Money Network Checks used in Walmart’s Money Network System.
Beginning in approximately October 2013 and continuing through January 2015, Manning fraudulently filled out money network checks, and caused others to fill out the checks, in the name of third parties in order to deceive other Walmart employees into believing they were legitimate checks. Manning used his management positions to access the store’s register bags. He took cash from the store’s register bags and replaced it with fraudulent Money Network Checks totaling the same amount as the cash taken so that the register bags maintained the correct total balance and other Walmart employees would not realize cash had been taken from the bags. Manning has been charged with thirteen counts of wire fraud related to the processing of the fraudulent Money Network Checks.
Manning also knowingly engaged in financial transactions utilizing the proceeds of the wire fraud. Specifically, Manning is charged with three counts of money laundering for using cash proceeds derived from the fraud to purchase a diamond wedding ring set and a Toyota 4Runner and for transferring funds between accounts at a financial institution.
Additionally, in March 2014 and 2015, Manning filed U.S. Individual Income Tax Returns for the 2013 and 2014 tax years, respectively. When he filed these tax returns, Manning knew that he had intentionally not reported as income the cash he took as part of his fraudulent scheme.
Manning is charged with thirteen counts of wire fraud, three counts of money laundering and two counts of filing false tax returns. The indictment also includes a forfeiture count under which the government seeks to divest Manning of the proceeds obtained through the fraud. Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count. Money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count. False tax statement carries a penalty of not more than 3 years in prison and a fine of up to $100,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation (IRS CI). This case is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Friday 29 September 2017
Wisconsin Man Pleads Guilty to Enticement of a MinorRead the Press Release
A man who enticed a minor to engage in illegal sexual activity pled guilty yesterday in federal court in Cedar Rapids.
Carson Sibley, age 26, from LaCrosse, Wisconsin, was convicted of one count of enticement of a minor. At the plea hearing, Sibley admitted that, in 2017, he persuaded, induced, or enticed a minor to engage in sexual activity for which a person could be charged with a criminal offense.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Sibley remains in custody of the United States Marshal pending sentencing. Sibley faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Grundy County Sheriff’s Office, the Black Hawk County Sheriff’s Office, the Cedar Rapids Police Department, the LaCrosse Police Department, and Homeland Security Investigations.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-53.
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Webster Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Daniel J. Sullivan, 39, Webster, NY, pleaded guilty to possession of child pornography before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the investigation began when an undercover law enforcement officer, using a peer-to-peer network, connected to an internet connected computer that was sharing videos containing child pornography. The investigation led to Sullivan who admitted that he had been involved with looking at images of child pornography.
A search warrant was executed at Sullivan’s residence and a laptop and a portable hard drive were seized. The laptop contained over 800 videos of suspected child pornography and the portable hard drive contained over 600 videos of suspected child pornography.
The plea was the culmination of an investigation on the part of the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled on January 3, 2018, at 3:30 p.m. before Judge Geraci.Washington Man Sentenced for ATM Card Skimming SchemeRead the Press Release
BOSTON - A Washington man was sentenced Wednesday, Sept. 27, 2017, in federal court in Springfield for his role in an ATM card skimming scheme.
Aaron Dario, 37, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 13 months in prison, five years of supervised release, and was ordered to pay restitution of $129,189 to TD Bank, N.A. On Aug. 30, 2017, Dario pleaded guilty to one count each of conspiracy to commit bank fraud, attempted bank fraud, and aggravated identity theft.
From approximately February 2014 until his arrest on Sept. 21, 2014, Dario conspired with others to defraud, and did defraud, several banks through a multi-state ATM skimming scheme operated by a Romanian organized crime group in New York City. In this conspiracy, Dario and others first installed skimmer devices and pinhole cameras on the bank’s ATMs. The skimmer devices captured names and account numbers of hundreds of customers as they used their debit and other account cards to withdraw funds or engage in other transactions at the ATMs. The pinhole cameras recorded the personal identification numbers of the customers as they entered the information on the ATM keypads. Dario and others then removed the skimmer devices and pinhole cameras and used the account numbers and personal identification numbers to create fraudulent cards. The conspirators then used the fraudulent cards to withdraw money from the customers’ bank accounts, resulting in substantial losses to the financial institutions.
Acting United States Attorney William D. Weinreb; David L. Jaffe, Acting Chief of the Justice Department’s Organized Crime and Gang Section; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and East Longmeadow Police Chief Jeffrey Dalessio made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Weinreb’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Justice Department’s Organized Crime and Gang Section prosecuted the case.
United States Attorney’s Office Hosts 3rd Annual Anti-Terrorism ConferenceRead the Press Release
Roanoke, VIRGINIA – The United States Attorney’s Office for the Western District of Virginia hosted the 3rd Annual Anti-Terrorism Conference on September 28, 2017, at the Virginia Western Community College in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
More than 260 law enforcement officers from across the Commonwealth of Virginia attended to address topics related to protecting communities in the Commonwealth of Virginia from terrorism and the role of local, state, and federal law enforcement in the fight against terrorism.
Acting United States Attorney Mountcastle stressed the importance of the partnerships between local, state, and federal law enforcement in preventing terrorism. “More than 85 percent of law enforcement officers work at the state or local level. You are on the front lines in the noble task of keeping our communities safe. We hope that this conference will allow you to share your experiences, strengthen your partnerships, and enhance your ability to protect national security and prevent terrorist attacks . . . It’s our goal and intention that this conference will serve to enhance and foster the teamwork and coordination among law enforcement that is so important to our vital mission of protecting the public from terrorism.”
The United States Attorney’s Office for the Western District of Virginia holds Antiterrorism Advisory Council meetings multiple times per year and the annual antiterrorism conference to discuss international and domestic terrorism threats in the Western District of Virginia, to disseminate information and provide training to federal, state, and local law enforcement officers, and to enhance teamwork and cooperation among public safety agencies.
Two Pittsburgh-area Men Charged with Violating Federal Drug, Robbery and Gun LawsRead the Press Release
PITTSBURGH – Two Pittsburgh-area residents have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics, robbery, and firearms laws Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on September 26, 2017 and unsealed September 27, named Kahlil Shelton and Deron Howell.
According to the indictment, from August 4, 2017 to August 7, 2017, Shelton and Howell conspired to distribute and possess with the intent to distribute 50 kilograms or less of marijuana and did possess with the intent to distribute 50 kilograms or less of marijuana on August 7, 2017. Both are also charged with conspiring to commit Hobbs Act Robbery as well as committing the robbery itself on August 7, 2017. The indictment also charges that both men possessed a firearm in furtherance of both a drug trafficking crime and a crime of violence, and that the firearm was discharged in furtherance of committing those crimes.
Both face a total mandatory minimum sentence of not less than 10 years in prison up to a maximum sentence of life, a fine of not more than $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 Timothy M. Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, and Firearms and the Cranberry Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Murfreesboro Men Indicted for Conspiracy and Civil Rights Violations in Islamic Center VandalismRead the Press Release
A federal grand jury in Nashville, Tennessee, yesterday, returned an indictment charging two Murfreesboro men, Charles Dwight Stout, III, 19, and Thomas Avery Gibbs, 18, with conspiring to commit a civil rights violation and committing a civil rights violation through damaging and defacing the Islamic Center of Murfreesboro.
The indictment was announced by Donald Cochran, U.S. Attorney for the Middle District of Tennessee, and Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the FBI.
The indictment alleges that Charles Stout and Thomas Gibbs vandalized the Islamic Center by placing bacon, a pork product forbidden by Islam, around an entrance; spray painted profane references to Allah on multiple parts of the Center’s exterior; concealed their identity in the commitment of these crimes by wearing masks; and the mask worn by Stout was a World War II-era Nazi gas mask.
The indictment also alleges that following the vandalism, Stout destroyed the clothing that he wore and permanently deleted the photographs of the vandalism that he took with his cell phone. Stout was previously indicted on August 30, 2017, for obstructing a federal investigation by deleting photographic evidence.
Members of the Islamic Center discovered the vandalism when they attended Morning Prayer on July 10, 2017, and immediately reported it to law enforcement.
If convicted, both men face up to a year in prison. An indictment is merely an accusation and is not evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Cochran commended the work of the FBI and the Rutherford County Sheriff’s Office, who worked together to investigate this case and identify the suspects. Assistant United States Attorneys Sara Beth Myers and Henry C. Leventis are prosecuting the case.
Two Chattanooga Residents Sentenced to Prison for Participating in a Conspiracy to Commit Wire Fraud and for Tax EvasionRead the Press Release
CHATTANOOGA, Tenn. – On September 29, 2017, James H. Brennan, 68, and Douglas A. Dyer, 58, both of Chattanooga, Tennessee, were sentenced by the Honorable Travis R. McDonough, U.S. District Court Judge, to respectively serve 48 months and 60 months in federal prison for their roles in a wire fraud and tax evasion conspiracy. Upon their release, U.S. Probation will supervise them for three years. Brennan and Dyer were also ordered to pay over $4.9 million in restitution to over 200 victims in this case. Additionally, Brennan was ordered to pay restitution to the IRS in the amount of $184,022.84. Dyer was ordered to pay restitution to the IRS in the amount of $354,251.58.
In May 2017, both Dyer and Brennan pleaded guilty to conspiring to steal approximately $4.9 million from investors and evading the assessment and payment of their true taxes due and owing by mischaracterizing the stolen money as capital gains instead of income, thus paying at a fraudulently derived lower tax rate. Dyer also pleaded guilty to criminal contempt for dispersing funds contrary to an order in a civil case filed by the Securities and Exchange Commission for securities fraud.
According to documents on file with the U.S. District Court, between 2008 and 2016, Brennan and Dyer sought and received funds from numerous investors by promising them that their money would be used to capitalize limited liability corporations which would merge with companies seeking to transition to public ownership on a public stock exchange. Instead, they diverted the funds to their personal use. Although the general practice is to report stolen funds as income, Brennan and Dyer mischaracterized the funds they stole as capital gains and paid taxes at the lower capital gains rate, effectively evading paying taxes at the correct rate.
The case was investigated by the Federal Bureau of Investigation (FBI) and Internal Revenue Service (IRS) Criminal Investigation. Assistant U.S. Attorneys James T. Brooks and Anne-Marie Svolto represented the United States.
U.S. Attorney Nancy Stallard Harr said, “The U.S. Attorney’s Office will continue to pursue prosecution of fraudulent offenders, such as Brennan and Dyer, who effectively steal money from both innocent individuals and the United States by failing to pay taxes.”
“Fraudulent investment schemes continue to bring financial ruin to many Americans,” stated Tracey D. Montaño, Special Agent in Charge, IRS-Criminal Investigation. “We are proud of the work of our special agents who utilize their specialized forensic accounting skills to unravel complex financial schemes. The prosecution of individuals who intentionally conceal their income and evade taxes is a key priority for IRS Criminal Investigation. Mr. Dyer and Mr. Brennan stole investors’ hard-earned money, used it for their own personal benefit, and evaded the federal tax owed on the stolen funds. This case should serve as a reminder, no matter the source of income, all income is taxable.”
“The public's faith in the integrity of investment markets, particularly those involving capital for new companies, is essential for the continued success of our country's economic stability and growth,” stated Renae McDermott Special Agent in Charge of the Knoxville FBI. “The sentencing today demonstrates the commitment of the FBI and our investigative partners to bring to justice those who prey upon unsuspecting investors.”
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Toledo felon indicted following arrest with crack cocaine and 13 firearms, including unregistered sawed-off shotgunRead the Press Release
A Toledo man arrested with 13 firearms was indicted on firearm and drug charges, said U.S. Attorney Justin E. Herdman, FBI Special Agent in Charge Stephen D. Anthony and Toledo Police Chief George Kral.
Markein Cargill, 46, was indicted on one count each of possessing firearms after being convicted of a felony; possessing an unregistered short-barrelled shotgun; possessing with intent to distribute crack cocaine; and using and carrying a firearm during and in relation to a drug trafficking offense.
Cargill on Sept. 1, 2017, was arrested with 13 firearms, including a sawed-off 12-gauge shotgun with no serial number. Cargill was not allowed to possess firearms because of previous convictions for crimes involving heroin and cocaine, according to the indictment.
He also possessed with intent to distribute nearly 10 grams of crack cocaine, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Federal Bureau of Investigation and the Toledo Police Department. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney’s Office Announces Its On-Going Efforts to Combat Human TraffickingRead the Press Release
Savannah, GA- The Federal Human Trafficking Task Force for the Southern District of Georgia (“Task Force”), led by the United States Attorney’s Office for the Southern District of Georgia, announces its recent and on-going efforts to combat human trafficking.
Human trafficking, also known as trafficking in persons or modern-day slavery, is a crime that involves compelling or coercing a person to provide labor or services, or to engage in commercial sex acts. The coercion can be subtle or overt, physical or psychological. Exploitation of a minor for commercial sex is human trafficking, regardless of whether any form of force, fraud, or coercion was used.
The Task Force was created in 2015 as a partnership of federal, state and local law enforcement agencies with a common goal of discovering and rescuing victims of human trafficking while identifying and prosecuting the criminals responsible. The Task Force achieves that goal through heightened law enforcement and victim service presence in the community, through devotion of resources to intensive investigations designed to dismantle trafficking organizations, and by providing training for law enforcement and conducting outreach awareness campaigns in the community. The Task Force also partners with non-government agencies to provide necessary services and basic needs for victims of human trafficking, including counseling, emergency shelter, clothing, and medicine.
The Task Force recently has provided training on ways to recognize and prevent human trafficking to a number of local groups, including: at-risk youth at Park Place Outreach, a youth emergency shelter (June 2017); medical staff at Memorial Hospital in Savannah, Georgia (July 2017); social workers, guidance counselors, school nurses and alternative school staff with the Savannah-Chatham County Public School System (July 2017); the Coastal Area Traffic Enforcement Network, an organization that includes law enforcement from Appling, Bacon, Brantley, Camden, Charlton, Glynn, Jeff Davis, Liberty, Long, McIntosh, Pierce, Tattnall, Ware, and Wayne Counties (September 26, 2017); and medical staff at Southeast Georgia Health System in Camden County (September 28, 2017).
Over the past four years in the Southern District of Georgia, at least 31 human trafficking victims were rescued based on the collaborative efforts of law enforcement and the Task Force. In March 2017, a federal grand jury convicted Timothy Lewis of nine counts of child sex trafficking and eight counts of coercion and enticement of a minor to engage in sexual activity, among other felony charges, in relation to a child sex trafficking ring he operated in the Savannah, Georgia area. That case began as a rescue operation to find a missing 13-year-old girl. The investigation revealed, and trial evidence showed, that Lewis was selling the 13-year-old and seven other children for commercial sex through online prostitution advertisements. Lewis’ sentencing hearing is scheduled for November 30, 2017, and he faces a maximum sentence of life imprisonment for his crimes.
United States Attorney R. Brian Tanner said, “Human traffickers prey on some of the most vulnerable members of our community, and they must be brought to justice. Working together with our law enforcement and community partners can only increase our success in identifying victims and in investigating and prosecuting these cases. We will continue to bring the full power of the federal government to this important fight.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI continues to be a steadfast partner with federal prosecutors in the fight against human trafficking as we dedicate significant resources toward the identification, investigation, and presentation for prosecution of those involved and providing the much needed services to those being exploited. It takes many agencies working together to make a difference in eradicating this scourge and the FBI is proud of the part that it plays in addressing this in an aggressive but cohesive manner.”
“Human trafficking is quite simply a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick Annan. “HSI made a record number of more than 2,000 human trafficking arrests in 2016 and rescued more than 400 trafficking victims nationwide, with many of them often hidden in plain sight. HSI will continue our relentless pursuit to investigate and seek prosecution of criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
If you believe you have information about a potential trafficking situation, call the National Human Trafficking Hotline toll-free at 1-888-373-7888. Anti-trafficking advocates are available 24 hours a day, seven days a week to take reports of potential human trafficking. All reports are confidential, and you may remain anonymous. Interpreters are available. The information you provide will be reviewed by the National Hotline and forwarded to specialized law enforcement and/or service providers where appropriate.
To request training for your organization and for additional information, please contact Assistant United States Attorney Tania Groover, U. S. Attorney’s Office, at (912) 652-4422.
Tallahassee Man Convicted of Attempted Enticement of a MinorRead the Press Release
TALLAHASSEE, FLORIDA – Michael A. Chmielewski, 38, of Tallahassee, a former State of Florida legislative staffer, was convicted of attempted enticement of a minor this afternoon in the U.S. District Court in Tallahassee after a three-day trial. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2017, undercover investigators conducted “Operation Cupid’s Arrow” to identify individuals seeking to engage in sexual activity with minors. Chmielewski responded to a Craigslist advertisement in which an undercover officer posed as a 14-year-old girl named “Sara.” Over two days, Chmielewski continued his conversation with “Sara” on the chat messaging application Kik, discussed sexual activity with “Sara,” and traveled to meet “Sara” in person to have sex. Chmielewski was arrested after arriving at a store to meet “Sara.”
Chmielewski faces a minimum of 10 years and a maximum of life in prison. The sentencing hearing is scheduled for January 5, 2018, at 1:30 p.m. at the United States Courthouse in Tallahassee.
The case was investigated by the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, the Tallahassee Police Department, the Cocoa Police Department, the United States Immigration and Customs Enforcement Homeland Security Investigations, the U.S. Marshals, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Springfield Man Sentenced to 13 Years in Prison for Stalking and Kidnapping WomanRead the Press Release
ALEXANDRIA, Va. – A Springfield, Virginia man was sentenced today to a total of 13 years in prison for interstate stalking, interstate domestic violence, and being a felon in possession of ammunition.
According to court records, Nam Quoc Hoang, 41, began stalking his ex-girlfriend in late December 2013. Nam’s harassment began when he sent his ex-girlfriend a series of messages in which he threatened to post sexually explicit photographs of her unless she paid him money. When his ex-girlfriend did not pay him, Nam posted the photographs and continued to repost the photographs even after Facebook took the photographs down. After posting the photographs, Nam and his co-conspirator, Khoa Dang Vu Hoang, traveled from Virginia to Maryland to stalk his ex-girlfriend throughout January 2014. This stalking included breaking into her home on two occasions and taking valuable personal items, which were never recovered.
On January 26, 2014, Khoa observed the ex-girlfriend’s Facebook post “checking in” to a nightclub in Washington, D.C. Khoa informed Nam about this post and the men drove to the nightclub and waited for Nam’s ex-girlfriend to return to her vehicle and leave. The men then followed her, and when she stopped at a traffic light Nam approached her vehicle, displayed a weapon, and demanded entry. His ex-girlfriend, afraid for her life, let Nam into the vehicle. Once inside the vehicle, Nam hit his ex-girlfriend in the face and threatened her and her family.
A federal jury convicted Khoa in March for interstate stalking and conspiracy, and he was sentenced to five years in prison on July 21, 2017.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys James L. Trump, Carina A. Cuellar, and James Levine 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. 1:16-cr-193.
Slidell Man Charged for Conspiring to Sell Fentanyl and Heroin, and for Firearms ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that KENNETH MARTIN, age 43, of Slidell, was charged yesterday in an eleven-count Indictment for conspiring to distribute and to possesses with the intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, and for possession of three firearms in furtherance of his drug trafficking.
According to the Indictment, from at least May 23, 2016, through August 2, 2017, MARTIN conspired to distribute 40 grams or more of fentanyl and 100 grams or more of heroin. MARTIN is also charged seven counts of distribution of heroin or fentanyl, and one count of possession with the intent to distribute 40 grams or more of fentanyl. Additionally, MARTIN is charged with being a felon in possession of three firearms – a revolver, a semi-automatic pistol, and a shotgun – and with possessing those firearms in furtherance of the drug trafficking conspiracy.
If convicted of the drug charges, MARTIN will face a minimum of five years and a maximum of forty years imprisonment. If convicted of possessing of a firearm in furtherance of the drug trafficking conspiracy, MARTIN faces a minimum of five years and a maximum of life imprisonment, all of which must be consecutive to his sentence for other counts.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security, the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Salvadoran national in Cleveland indicted on firearms and identity theft chargesRead the Press Release
A Salvadoran national was indicted on firearms and identity theft charges, law enforcement officials said.
Carlos Amaya-Melendez, 38, is a citizen of El Salvador but was living in Cleveland. He used the identity of a U.S. citizen from Puerto Rico to obtain an Ohio driver’s license in 2009. It was renewed in 2015, according to court documents.
He also possessed a .38-caliber revolver and ammunition while not a citizen of the U.S., according to the indictment.
This case was investigated by the Department of Homeland Security, U.S. Customs and Border Protection, U.S. Border Patrol. It is being prosecuted by Assistant U.S. Attorneys Elliott Morrison and Robert Kern.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Salvadoran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Salvadoran national was charged yesterday in federal court in Boston with a federal immigration crime.
Gerardo Alberto Perez-Fuentes, 22, was indicted on one count of unlawful reentry of a deported alien. Perez-Fuentes was previously deported on Oct. 8, 2015. On Sept. 6, 2017, law enforcement in Chelsea encountered Perez-Fuentes and determined him to be illegally present in the United States.
The charge provides for a sentence of no greater than 10 years in prison, three year of supervised release, and a fine of $250,000. Perez-Fuentes will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Salem Man Sentenced in Federal Court on Firearms ChargeRead the Press Release
Columbia, South Carolina –------- United States Attorney Beth Drake, announced today that Justin David Crenshaw, age 31, of Salem, was sentenced to the statutory maximum of ten years in federal prison earlier this week on charges stemming from his possession and discharge of a firearm last fall at a residence in Oconee County. United States District Court Judge Bruce H. Hendricks, who issued the sentence, also revoked Crenshaw’s term of supervised release, adding an additional two years to be served consecutively to the ten-year sentence, effectively bringing the sentence to a term of twelve years.
Crenshaw was previously indicted on December 13, 2016, by a federal grand jury for felon in possession of ammunition, a violation of Title 18, United States Code, Section 922(g)(1). Prior to his indictment, Crenshaw, whose conduct at the time of the offense was being supervised by United States Probation following his summertime release from the Bureau of Prisons, was arrested on federal arrest warrants in early December for the offense and has remained in custody, detained without bond, since that date.
The facts presented by the government at the guilty plea hearing this morning established that on October 25, 2016, Crenshaw and a colleague entered a residence in Oconee County and initiated a physical assault on a male located in the residence. The male ran outside the house followed by Crenshaw who then fired two rounds during the altercation. Deputies recovered two 9mm ammunition casings from the site of the incident. When interviewed, Crenshaw admitted firing the shots.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance and cooperation of the Oconee County Sheriff’s Office. The prosecution of the case was handled by Assistant U.S. Attorney Bill Watkins and First Assistant U.S. Attorney Lance Crick.
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Sacramento Man Sentenced for Role in Gold SchemeRead the Press Release
SACRAMENTO, Calif. — Garik Voskanyan, 34, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell, Jr. to 15 months in prison for bank fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, in May 2013, Voskanyan conspired with his
co-defendant, Karapet Damaryan, and others to steal the identity of an innocent bank account holder in order to gain control over the victim’s bank account. The conspirators then fraudulently wired $141,395 out of the victim’s account to a gold coin and bullion store, where Voskanyan and his co-defendant attempted to use the stolen funds to purchase nearly 100 one-ounce gold coins. The fraud was detected when the victim checked his bank account on the day the fraudulent wire was attempted. Voskanyan and Damaryan were arrested outside the gold store when they arrived to pick up the gold.
This case was the product of an investigation by the United States Secret Service and the Placer County Sheriff's Office. Assistant United States Attorneys Matthew G. Morris and Amy Schuller Hitchcock prosecuted the case.
Co-defendant Damaryan pleaded guilty to aggravated identity theft and bank fraud on January 20, 2017, and is set to be sentenced on October 27, 2017.
Richmond Man Charged with Sex Trafficking by Force, Threats of Force, Fraud, and CoercionRead the Press Release
OAKLAND - A federal grand jury indicted Marcus Antonio Redick, aka “Stacks,” aka “Domanni Sellers,” for the sex trafficking of a victim by force, threats of force, fraud, and coercion, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge, John F. Bennett.
According to the indictment filed on September 28, 2017, and unsealed today, Redick, 36, of Richmond, Calif., is alleged to have recruited, enticed, obtained, harbored, and transported a victim in or affecting interstate commerce knowing that force and threats of force would be used to cause that victim to engage in a commercial sex act. The indictment charges Redick with one count of violating 18 U.S.C. § 1591(a)(1).
Redick was arrested this morning, and he made his initial appearance in the Oakland federal courthouse today before U.S. Magistrate Judge Kandis A. Westmore. Redick is currently in federal custody pending further hearings, the next of which is scheduled for 9:30 a.m. on October 5, 2017, before U.S. Magistrate Judge Donna M. Ryu, for status regarding detention.
The maximum statutory penalties for a violation of 18 U.S.C. § 1591(a) are life in prison, a $250,000 fine, and a lifetime term of supervised release. Redick also faces a mandatory minimum sentence of 15 years in prison, and a mandatory minimum term of supervised release of 5 years. In addition, there is a mandatory special assessment of $100, and the Court may order restitution and forfeiture. 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, namely, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Bill Gullotta is prosecuting the case with the assistance of Julissa Rey and Vanessa Vargas. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Oakland Police Department.
Anyone who suspects instances of human trafficking are strongly encouraged to call the FBI or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678. Indeed, a NCMEC tip led to the discovery and rescue of a victim in this case.
Randallstown Woman Sentenced to 2 Years in Prison for Injecting Non-Medical Grade Silicone into the Bodies of Victim CustomersRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Kendra Westmoreland, age 55, of Randallstown, Maryland, to two years in prison, followed by one year of supervised release for receiving and delivering an adulterated or misbranded device, in connection with her receipt and use of polydimethylsiloxane, which she misrepresented to customers as medical grade silicone. Judge Hollander also ordered Westmoreland pay a fine of $2,500.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to her plea agreement, from October 2000 through October 4, 2015, Westmoreland received polydimethylsiloxane, a silicon-based organic polymer that she injected directly into the bodies of victim customers for money or some other payment. Westmoreland intentionally defrauded and misled individuals by representing polydimethylsiloxane as “medical grade” silicone and approved for injecting directly into the human body. Westmoreland also indicated that she was medically licensed to perform the procedure. In fact, Westmoreland was never a licensed medical practitioner and silicone is not approved by the FDA for this purpose.
As a result of her representations, victim customers came to her residence, or to hotel rooms, to have polydimethylsiloxane injected directly into their buttocks and other places on their bodies, for larger and fuller buttocks or to shape other areas of their bodies. Westmoreland also traveled to other locations for the same purpose. Westmoreland typically charged customers $250 to $500 per session, and estimated that she had injected thousands of customers, who she claimed found her through word of mouth, or through her business website. On October 4, 2015, a search warrant was executed at Westmoreland’s residence. A room of her home was set up to resemble an operating room, including medical equipment and collages of photographs of individuals exposing their buttocks, representing a sampling of those who Westmoreland had injected with silicone. A forensic search of Westmoreland’s cellular phone revealed 126 individuals listed in her contacts as clients. A financial audit of Westmoreland’s finances for the period from December 2011 to October 2015 revealed cash deposits of $227,994.01, and additional deposits of $48,801.06, for a total of $276,795.07. The audit indicated no tax payments and no tax returns filed during that period.
Westmoreland admitted that she stored the polydimethylsiloxone in a plastic container that was not properly labeled for medical use. When injected into humans, liquid silicone is a medical device subject to the regulation of the Food and Drug Administration (FDA). Polydimethylsiloxane is not approved, exclusively or as a component, for body-contouring. Polydimethylsiloxane is used in the manufacture of shampoos (to make hair shiny and slippery), food (as an antifoaming agent), caulking, lubricants, kinetic sand, and heat-resistant tiles.
Acting United States Attorney Stephen M. Schenning commended the FDA Office of Criminal Investigations and Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Judson T. Mihok, who prosecuted the case.
Project Dakota Flyer Nets an Additional 16 DefendantsRead the Press Release
United States Attorney Randolph J. Seiler announced that an additional sixteen individuals have been indicted for the illegal trafficking of eagles and other migratory birds. These individuals are in addition to the 15 individuals that were indicted earlier this year. The Indictments are a result of a two-year undercover operation, dubbed Project Dakota Flyer.
Indicted Individuals Include:
Manuel Lieras: 39, Pocatello, ID, charged with violations of the Migratory Bird Treaty Act: CR 17-10032
Jason Brodersen: 46, Omaha, NE, charged with violations of the Bald and Golden Eagle Protection Act, Migratory Bird Treaty Act, and Lacey Act: CR 17-50141
Sheldon Tree Top: 43, Mandan, ND, charged with violations of the Bald and Golden Eagle Protection Act and Lacey Act: CR 17-30116
Christopher Pomani: 37, Chamberlain, SD, charged with violations of the Bald and Golden Eagle Protection Act and Lacey Act: CR 17-30118
Michael Pomani: 20, Ft. Thompson, SD, charged with violations of the Bald and Golden Eagle Protection Act and Lacey Act: CR 17-30118
Arvella Pomani: 35, Pierre, SD, charged with violations of the Bald and Golden Eagle Protection Act, and Lacey Act: CR 17-30118
Wanda Dupris: 44, Eagle Butte, SD, charged with violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act: CR-17-30119
Melinda Sue Relf, a/k/a Melinda Red Feather: 37, Pine Ridge, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50140
Fair Deal Pawn: Rapid City, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50138
Kenneth Foster, d/b/a Rapid Pawn: 28, Rapid City, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50136
Pawn With Us: Rapid City, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50139
Elray Rosaaen, d/b/a Buffalo Gap Trading Post: 72, Buffalo Gap, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50137
Jeffrey Alan Jensen, d/b/a Jerry’s Pawn Shop: 53, Mobridge, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-30123
Amanda Silbernagel, d/b/a Jerry’s Pawn Shop: 30, Mobridge, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-30123
Steven Ray Marin, d/b/a Mobridge Pawn: 46, Mobridge, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-30124
Larry Belitz: 74, Hot Springs, SD, charged with violations of the Bald and Golden Eagle Protection Act, Migratory Bird Treaty Act, and Lacey Act: CR-17-50157
Initial appearances have been set for Friday October 6, 2017, in Pierre, Wednesday October 11, 2017, in Rapid City, and Thursday October 12, 2017, in Aberdeen. This case is being investigated by the U.S. Fish and Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric Kelderman are prosecuting the cases.
Pittsburgh Man Charged with Possessing Crack CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on August 30 and unsealed September 26, named Walter Porter, age 45, as the sole defendant.
According to the indictment, on April 14, 2016, Walter Porter possessed with the intent to distribute a quantity of crack cocaine.
On the sole count of the indictment, the law provides for a maximum total sentence of not more than 30 years in prison, a fine of $2,000,000, 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 Timothy M. Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana Borough Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Indicted for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nathan Crowder, age 28, of Philadelphia, Pennsylvania, was indicted on September 28, 2017, by a federal grand jury for possession of heroin with intent to distribute and conspiracy.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Crowder was found to possess heroin while traveling to Williamsport from Philadelphia on January 31, 2017, in Luzerne County, Pennsylvania.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan VanFleet is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a $2,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Philadelphia Man Indicted for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Markeese Askew, age 24, of Philadelphia, Pennsylvania, was indicted on September 28, 2017, by a federal grand jury for possession with intent to distribute heroin and methamphetamine.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Askew was found to possess heroin and methamphetamine on August 14, 2017, in Lycoming County, Pennsylvania.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan VanFleet is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a $2,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pennsylvania Tobacco Distributor Agrees to Plead Guilty to Aiding Tobacco Trafficking in MassachusettsRead the Press Release
BOSTON – A Pennsylvania wholesale tobacco distributor agreed to plead guilty yesterday in federal court in Boston to aiding and abetting untaxed shipments of tobacco products into Massachusetts and evading financial reporting requirements.
Kamlesh Patel, 60, was charged and agreed to plead guilty to one count of aiding and abetting a large Norwood-based customer to violate the Prevent All Cigarette Trafficking Act (PACT Act) and one count of failing to report large cash transactions to the IRS.
Patel owned and operated RDK Distributors (RDK) and MV Distributors (MV) in Stroudsburg, Penn., through which he distributed wholesale quantities of cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), among other products.
Title 15 of the PACT Act requires people who sell, advertise for sale, transfer or ship for profit smokeless tobacco between states to file a statement with the Attorney General and the tobacco tax administrator in the states to which they ship their products. The PACT Act also requires them to file with the tax administrator a monthly record of each shipment of smokeless tobacco that they transport into the state.
Beginning in approximately January 2013, Patel sold large quantities of tobacco products to a Norwood wholesaler, often worth more than $100,000 at a time. The Norwood wholesaler typically paid Patel for tobacco products in cash. To evade financial reporting requirements that would have notified the IRS of the size, nature and income of the Norwood wholesaler’s business, Patel falsely divided among multiple invoices the bulk cash payments he received. Patel created and instructed his employees to record the large cash payments he received as if there had been numerous sales over numerous days among numerous companies, each less than $10,000, rather than the single sale for which he had received one or two sizeable cash payments, often amounting to more than $100,000 at a time.
The charge of structuring cash transactions to evade financial reporting requirements provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of up to $500,000 and forfeiture. The charge of aiding and abetting violation of the PACT Act provides for a sentence of no greater than three years in prison, up to one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Massachusetts Department of Revenue also provided valuable assistance. Assistant U.S. Attorney Stephen Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Pennsylvania Man Sentenced to 12 Years in Prison for Attempting to Exploit Nine-Year-Old Massachusetts BoyRead the Press Release
BOSTON - A Pennsylvania man was sentenced late yesterday in federal court in Boston for attempting to engage in sexual activity with a nine-year-old boy he met via online PlayStation games.
Robert Rang, 28, of Coaldale, Penn., was sentenced by U.S. District Court Judge Indira Talwani to 12 years in prison and 15 years of supervised release. In July 2017, following a seven-day trial, a federal jury convicted Rang of one count of attempted coercion and enticement of a minor.
On Oct. 29, 2014, a Massachusetts woman contacted her local police department to report that her nine-year-old grandchild, with whom she lived, had been in contact with an adult male via Sony PlayStation and text message. The woman discovered the illicit contact when she observed sexually explicit messages from Rang on her grandchild’s iPod.
Further investigation revealed that Rang had been communicating with the child for months via PlayStation, telephone and Facebook. During that time, Rang sent the child gift cards to make PlayStation-related purchases. Over the course of several months, Rang asked the child to masturbate with him and send him naked pictures; the child refused Rang’s requests.
When law enforcement executed a federal search warrant at Rang’s Coaldale home on Dec. 29, 2014, they found several images of child pornography on Rang’s cell phone, as well as evidence of his sexually explicit communications with and attempted exploitation of other minors – including a boy in New York and a boy in Kentucky - and confirmation that Rang had made plans to visit the child in Massachusetts. Rang has a prior conviction for corruption of minors in Schuylkill County, Penn.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of U.S. Postal Inspection Service, Boston Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County Sherriff Joseph D. McDonald Jr.; and Plymouth Police Chief Michael E. Botieri made the announcement today. Assistant U.S. Attorneys David G. Tobin and Anne Paruti of Weinreb’s Major Crimes Unit prosecuted the case.
Owner of Old Saybrook Pizza Restaurant Admits Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that ROBERT KEHAYIAS, 58, of Old Saybrook, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of filing a false tax return.
According to court documents and statements made in court, KEHAYIAS owns and operates Pizza Works (also known as Pizza Junction, LLC), a restaurant located in Old Saybrook. For the 2010 through 2014 tax years, KEHAYIAS deposited most of the cash receipts generated by the restaurant into his personal money market account, a portion of the cash receipts into other personal bank accounts, and only a minimal amount of cash into the business bank account. During this time, KEHAYIAS provided his tax return preparer with Quickbooks reports that significantly understated the gross receipts of the business each year. As a result, KEHAYIAS failed to report more $765,733 in taxable income on his federal income tax returns for the 2010 through 2014 tax years, and failed to pay approximately $340,000 in taxes.
Judge Meyer scheduled sentencing for January 16, 2018, at which time KEHAYIAS faces a maximum term of imprisonment of three years, a fine of up to approximately $680,000 and back taxes, interest and penalties.
This case has been investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Oswego Man Sentenced to Prison for Threatening to Murder Secret Service Agent and FamilyRead the Press Release
BINGHAMTON, NEW YORK – Joshua Michael Furbeck, age 22, of Oswego, New York, was sentenced today to serve 42 months in prison for Threatening to Murder a Federal Law Enforcement Officer, and 42 months in prison for Threatening to Murder a Family Member of a Federal Law Enforcement Officer, announced Acting United States Attorney Grant C. Jaquith and Lewis Robinson, Special Agent in Charge of the United States Secret Service, Buffalo Field Office. The 42-month sentences will run concurrently to one another. Furbeck was also sentenced to serve a three-year term of supervised release following his release from prison.
As part of hisguilty plea, Furbeck admitted that on September 17, 2016, he called the United States Secret Service Office in Syracuse, New York, and left a voicemail message in which he threatened to kill a specific Secret Service Agent and members of his family. On October 27, 2016, Furbeck was interviewed in person by Secret Service Agents and made additional threatening statements against the same specific Secret Service Agent.
This case was investigated by United States Secret Service, Buffalo Field Office, and the New York State Police (Troop D), and was prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Oklahoma Man Sentenced for Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Jason Gene Lay, 35, of Park Hill, Okla., was sentenced yesterday in federal court in Las Cruces, N.M., to 60 months in prison for his conviction on a methamphetamine trafficking charge. Lay will be on supervised release for three years after completing his prison sentence.
Lay was arrested on March 28, 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute on Feb. 11, 2016, in Chaves County, N.M. According to the complaint, law enforcement agents seized approximately 53.4 grams of crystal methamphetamine, three handguns, $4,000 cash and drug paraphernalia when they executed a search warrant at a hotel room in which Lay had been residing.
On Sept. 14, 2016, Lay pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Lay admitted that on Feb. 11, 2016, law enforcement agents executed a search warrant on his hotel room, and found methamphetamine hidden in false compartments inside two canisters, $4,000 and three handguns. Lay further admitted that he planned to distribute the methamphetamine.
This case was investigated by the Las Cruces office of the DEA and the Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Oklahoma Man Sentenced for Filing False Tax Returns for Prison InmatesRead the Press Release
SACRAMENTO, Calif. — Donald Loyde Harned, 72, of Oklahoma, was sentenced today by United States District Judge Garland E. Burrell, Jr. to two years in prison and ordered to pay $219,984.00 in restitution for conspiring to defraud the United States with false claims for federal tax refunds, United States Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Harned and six other co-defendants operated a tax fraud scheme in which they filed false tax returns using the identities of prison inmates. To execute the scheme, the conspirators incarcerated inside the Susanville Correctional Center obtained the personal identification information of other inmates. They provided this information to those outside the prison, including Harned, who then used this information to prepare and file false income tax returns with the IRS using the Earned Income Tax Credit (EITC), containing information they knew to be false and claiming refunds to which they knew the inmates were not entitled. Harned was paid by the inmates for each return he prepared and filed, and retained a portion of the false refunds for himself.
"The Earned Income Tax Credit is a refundable tax credit for working individuals and couples, particularly those with children, who earn a low to moderate income," said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. "Mr. Harned and his co-conspirators devised a scheme to illegally use the EITC for inmates that had no income and did not qualify for the credit. IRS-CI will aggressively investigate these types of prison schemes ensuring the EITC program is applied correctly."
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock prosecuted the case.
To date, six of the seven individuals charged in this conspiracy have pleaded guilty. The six have been sentenced, including Edwin Ludwig IV, who was sentenced to seven years in prison for leading the scheme. Charges are pending against one remaining defendant. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
O.C. Day Care Agrees to Administer Emergency EpiPen Injections When Needed to Comply with the Americans with Disabilities ActRead the Press Release
LOS ANGELES – A Garden Grove preschool has entered into a voluntary civil settlement agreement with the United States to resolve allegations that it violated the Americans with Disabilities Act (ADA) by failing to agree to provide EpiPen injections when required and requested at its facility.
OC Kids Infant and Preschool agreed last week to modify its policies to allow its staff to administer emergency EpiPen injections to children experiencing severe allergic reactions.
The agreement with the United States Attorney’s Office resolves allegations that OC Kids was violating Title III of the ADA, which prohibits discrimination by places of public accommodation, including day care facilities, against individuals with disabilities.
“Children with disabilities, including severe food allergies, must be given equal opportunities to attend day care,” said Acting United States Attorney Sandra R. Brown. “I want to thank OC Kids for acknowledging its responsibility to comply with the Americans with Disabilities Act. The policies and changes that OC Kids has agreed to implement should serve as a guide for other day care centers to ensure that their admissions policies and practices do not discriminate against children with disabilities.”
Under the terms of the voluntary settlement agreement, OC Kids has agreed to:
- not discriminate against any individual on the basis of disability;
- revise its policies to allow for reasonable modifications for children with disabilities, including children who have food allergies; and
- provide appropriate training for its staff.
This matter was handled by Assistant U.S. Attorney Katherine M. Hikida with the Civil Division’s Civil Rights Section. For more information on the ADA, including access to publications to assist entities with ADA compliance, please visit www.ADA.gov or call the Department of Justice’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Nine Defendants Indicted in $866,000 Insider Trading ConspiracyRead the Press Release
CHICAGO — Nine defendants, including four Chicago-area men, have been indicted on fraud charges for allegedly using inside information about an impending corporate acquisition to earn illegal trading profits.
The indictment alleges that SHANE FLEMING, a vice president of corporate sales at Minnesota-based Life Time Fitness Inc., obtained material, non-public information about the potential sale of the company to two private equity firms in 2015. Fleming learned that the sale would likely cause an increase in the company’s stock price, and he shared the inside information with BRET BESHEY, a longtime friend and business partner, the indictment states. Beshey and Fleming agreed to use the information to execute financial trades, and further agreed to share the profits, the indictment charges. Beshey then allegedly shared the information with his girlfriend CHASITY CLARK, his friend and business partner PETER KOURTIS, and Clark’s friend CHRISTOPHER BONVISSUTO.
Kourtis and Bonvissuto agreed to use the information to purchase Life Time Fitness stock options and share the profits with Beshey and Clark, the indictment states. Kourtis then shared the material, non-public information with friends ERIC WELLER, AUSTIN MANSUR, ALEX CARLUCCI and DIMITRI KANDALEPAS, all of whom knew the information came from an insider at Life Time Fitness, and they agreed to use the information to make trades, according to the charges.
The securities purchases were executed before news of the potential sale became public via a media report, which caused the stock price to increase substantially, the indictment states. The defendants earned approximately $866,629 in illegal profits from the trades, the indictment states.
The indictment was returned Sept. 28, 2017, in federal court in Chicago. It charges all nine defendants with conspiracy to commit securities fraud. Arraignments have not yet been scheduled.
“Our economy relies on the integrity of the markets, which is a core principle upon which the American financial system is built,” said Joel R. Levin, Acting United States Attorney for the Northern District of Illinois. “The U.S. Attorney’s Office is committed to aggressively using federal securities laws to hold insiders and investors accountable for using market-moving information to line their own pockets.”
Acting U.S. Attorney Levin announced the charges along with Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission provided valuable assistance.
Charged in the conspiracy are Fleming, 54, of Chanhassen, Minn.; Beshey, 44, of Puerto Vallarta, Mexico; Clark, 34, of Puerto Vallarta, Mexico; Bonvissuto, 41, of Buffalo, N.Y.; Kourtis, 51, of Niles, Ill.; Weller, 52, of Hermosa Beach, Calif.; Mansur, 46, of Chicago, Ill.; Carlucci, 51, of Clarendon Hills, Ill.; and Kandalepas, 28, of Schaumburg, Ill.
Each of the defendants also faces individual counts of securities fraud. Fleming and Beshey are each charged with nine counts; Kourtis eight; Weller three; Mansur two; and one each for Clark, Bonvissuto, Carlucci and Kandalepas.
Life Time Fitness owned a chain of fitness centers in the United States and Canada. The company’s common stock traded on the New York Stock Exchange, and options in its stock were traded on the Chicago Board Options Exchange. According to the indictment, Fleming learned on Feb. 23, 2015, that the company was in advanced acquisition negotiations with the private equity firms. Fleming shared the information with Beshey later that day, the indictment states. As other conspirators became aware of the inside information, they made arrangements to execute securities transactions and pay a portion of the proceeds to the fellow conspirator who passed them the tip, the indictment states.
From Feb. 25, 2015, to March 3, 2015, the defendants purchased hundreds of call options in Life Time Fitness stock, the indictment states. On March 5, 2015, the company’s share price was $57.67. After markets closed for the day, the Wall Street Journal published an article about the acquisition discussions. On March 6, 2015, the share price increased to a high of $69.13. On March 16, 2015, Life Time Fitness issued a news release announcing that two private equity firms were purchasing all of the company’s shares for $72.10 per share.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge carries a maximum sentence of five years in prison. Each count of securities fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys John D. Mitchell and William R. Hogan.
Niagara Falls Mans Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Julius Hall, Jr., 31, Niagara Falls, NY, pleaded guilty to possession of a firearm in furtherance of drug trafficking before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $250,000.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on November 10, 2016, during the execution of a search warrant at 303 38th Street, Apartment 2, in Niagara Falls, law enforcement officers found the defendant in the living room. A .40 caliber Glock pistol with a loaded 15-round magazine was found inside a zippered bag in the defendant’s bedroom closet. In addition, four plastic bags containing cocaine and crack cocaine were recovered from various locations within the apartment. One plastic bag containing green vegetable matter, two digital scales with white powder residue on the surface, and $578 in U.S. currency were also found within the apartment.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Niagara Falls Police Department, under the direction of Superintendent Bryan DalPorto.
Sentencing is scheduled on January 11, 2018, at 12:30 p.m. before Judge Geraci.Mobile County Resident Sentenced to 36 Months for Possession of a Firearm After Felony ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Eddie Grant, a 28 year old, resident of Mobile, Alabama was sentenced today to 36 months incarceration followed by three years of supervised release. A search warrant was executed at Grant’s residence and a Smith & Wesson, .40 caliber pistol along with a small amount of marijuana were found. Grant confessed to possession of the firearm and the marijuana.
On June 15, 2017, Grant pled guilty to possession of the firearm after being convicted of Possession of Marijuana, 1st Degree in September 2010.
The Mobile, Alabama Police Department investigated the case along with the Bureau of Alcohol Tobacco Firearms and Explosives and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Man Indicted for Growing Marijuana on Public Land and Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment yesterday against Crescencio Pastor Carmona Venegas, 32, of San Diego, charging him with cultivation of marijuana and being an alien in possession of a firearm, United States Attorney Phillip A. Talbert announced.
According to court documents, a clandestine marijuana grow site on U.S. Forest Service land in the Stevenson Creek area of Madera County was observed from the air in early September 2017. On September 13, 2017, USFS officers and other law enforcement personnel hiked into the grow site and apprehended Venegas. Officers found 2,052 live marijuana plants, a .22 caliber rifle, a .22 caliber handgun, and ammunition in the grow site. Venegas is prohibited by law from possessing a firearm.
This case was the product of an investigation by the U.S. Forest Service. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Venegas faces a mandatory prison term of 10 years in prison, up to a maximum of life, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Luzerne County Man Sentenced to over Eight Years in Prison for His Role in Bath Salts Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 28, 2017, Robert Benussi, III, age 26, of Wilkes-Barre, Pennsylvania, was sentenced to 107 months’ imprisonment by Senior U.S. District Court Judge James M. Munley, for his participation in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Bruce D. Brandler, Benussi previously pleaded guilty to agreeing with others to distribute the drug to customers in the Luzerne County area during 2014 and 2015. The members of the conspiracy obtained the alpha-pvp from suppliers in China.
In imposing the sentence, Judge Munley noted that Benussi’s role in the conspiracy included distributing the highly addictive bath salts, and using force, threats, and intimidation in furtherance of the conspiracy.
Benussi was one of seven people charged by a grand jury in August 2016. That indictment was the fourth wave of arrests connected to alpha-pvp distribution in Luzerne County. In all, 18 people have been charged in the case since July 2013, including a Texas-based supplier of the bath salts.
Judge Munley also ordered Benussi to serve three years on supervised release following his prison sentence.
The investigation was conducted by Homeland Security Investigations, United States Postal Inspectors, the Drug Enforcement Administration, the Pennsylvania State Police, and local police from Luzerne County. Assistant United States Attorney Francis P. Sempa prosecuted the case.
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Liberian National Charged with Resisting a Federal Officer During RemovalRead the Press Release
BOSTON - A Liberian national was charged today in federal court in Boston with resisting a federal officer at Logan International Airport during removal.
Mohammed Kenneh, 35, was indicted on one count of resisting a federal officer. Kenneh was charged by complaint on Aug. 30, 3017.
On July 16, 2016, Kenneh was ordered removed from the United States back to Liberia. On Aug. 29, 2017, Kenneh was transported to Logan International Airport for removal. Once at the airport, Kenneh was met by two deportation officers who asked him to exit the van in which he arrived. It is alleged that Kenneh refused to exit the van; therefore, one of the officers entered the van and attempted to remove Kenneh from the vehicle. Kenneh resisted the officer and struck the officer on the head and shoulders multiple times, eventually knocking the officer onto the floor of the van. Kenneh then allegedly wrapped his handcuffed hands around the officer’s wrist and hands and refused to release the officer. Another officer then entered the van and, together, the two officers were able to remove Kenneh from the van onto the sidewalk. A decision was then made to abort the removal proceedings and return Kenneh to Immigration and Customs Enforcement custody.
Kenneh faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Christopher Cronen, Field Office Director, Enforcement and Removal Operations Boston Field Office, U.S. Immigration and Customs Enforcement, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Obtains $365,000 Settlement of Sexual Harassment Lawsuit Against Kansas City, Kansas, Housing AuthorityRead the Press Release
The Justice Department today announced that the Kansas City, Kansas, Housing Authority (KCKHA) and three of its former employees have agreed to pay $365,000 to resolve a sexual harassment lawsuit filed by the department in 2015. So far this year, the Justice Department has filed or settled four cases alleging unlawful sexual harassment of women in housing.
Under the settlement, KCKHA, former Administrative Coordinator Victor Hernandez, former Property Manager Derrick Estelle, Sr., and former Director of Housing Management Ronald Cobb, will pay a total of $360,000 in monetary damages to 14 current and former KCKHA residents and applicants who were subjected to sexual harassment, as well as $5,000 to the United States in civil penalties. The settlement also requires KCKHA to conduct training, to adopt new policies and procedures to prevent sexual harassment by its employees, and to provide a mechanism by which tenants and applicants can register complaints about sexual harassment with KCKHA management.
“Sexual harassment of women is unacceptable and will not be tolerated,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “No one should ever have to endure the type of outrageous conduct that occurred in this case in exchange for obtaining or keeping a place to live.”
“No woman should be subjected to harassment in her own home. This action sends a message to all housing providers that not only is this type of behavior unacceptable and immoral, it is illegal,” said HUD Assistant Secretary for Fair Housing and Equal Opportunity Anna Maria Farías. “HUD will continue to work to protect the fair housing rights of victims of harassment.”
This matter began when two female public housing tenants filed complaints about Hernandez with the Department of Housing and Urban Development (HUD). After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Justice Department. During its investigation, the department identified additional KCKHA applicants and tenants who had been sexually harassed by Hernandez, Estelle, or Cobb. Among other things, the department’s complaint alleged that Hernandez subjected women to unwanted sexual conduct as a condition for favorable hearing decisions, including asking them sexual questions, showing pornographic pictures and videos, making explicit sexual comments, and exposing himself. Hernandez admitted in sworn testimony that he had exposed himself to multiple women during appeals hearings concerning their housing.
The complaint also alleged that Estelle and Cobb explicitly conditioned housing benefits in return for sexual favors and made repeated unwelcome and offensive sexual advances to women residing in or applying for public housing. The complaint further alleged that Hernandez, Estelle, and Cobb engaged in this conduct while exercising their authority as employees of KCKHA.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of prohibited sex discrimination under this law. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination should call the department at 1-800-896-7743, or send an e-mail to [email protected], or contact HUD at 1-800-669-9777.