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13 November 2017
Former Retirement Center Business Manager Sentenced to Nearly Three Years in Prison for Stealing More Than $190,000 from Elderly ResidentRead the Press Release
RENO, Nev. – A former Business Manager for the Reno Valley Retirement Center was sentenced today to 33 months in prison for stealing from an elderly resident’s bank account, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Angela Diane Fischer, 52, of Fernley, Nevada, pleaded guilty to one count of mail fraud. In addition to the prison term, U.S. District Judge Miranda M. Du sentenced Fischer to three years supervised release and ordered her to pay restitution to the victim in the amount of $190,231.26.
Fischer admitted that from Dec. 24, 2014 to June 3, 2016, she fraudulently obtained $190,231.26 from an elderly man’s bank account for her personal benefit. She changed the password for the man’s online banking account, so she could access and set-up automatic payments from his bank account to pay his rent at the Reno Valley Retirement Center. As part of the scheme, she fraudulently sent approximately 37 checks to herself and transferred money from the man’s savings account to checking account in order to conceal the money that she was taking without his permission. Furthermore, Fischer continued to withdraw money from the man’s account after she was terminated from the Reno Valley Retirement Center in June 2015.
The case was investigated by the Reno Police Department with assistance from the FBI. Assistant U.S. Attorney Megan Rachow prosecuted the case.
For more information about the Department of Justice’s efforts to prevent and combat elder abuse, visit the Elder Justice Initiative website at https://www.justice.gov/elderjustice. If you or someone you know is a victim of elder abuse, call the Victim Connect hotline at 1-855-4VICTIM (1-855-484-2846).
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Former Reservist Pleads Guilty to Stealing Weapons from Army Reserve Center, Escaping from Prison & Attempted Bank RobberyRead the Press Release
BOSTON – A former Army Reservist has pleaded guilty to stealing six machine guns and 10 handguns from a U.S. Army Reserve facility, escaping from federal prison, and attempting to rob two banks.
James W. Morales, 35, of Cambridge, pleaded guilty to one count of being a felon in possession of a firearm; one count of possession of a machine gun; one count of possession of stolen firearms; one count of theft of government property; one count of conspiracy to possess, store, conceal, and sell stolen weapons; one count of escape; and two counts of attempted bank robbery. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 8, 2018.
On Nov. 14, 2015, Morales broke into a weapons vault at the Lincoln Stoddard United States Army Reserve Center in Worcester and stole six M-4 Carbines and 10 M-11 handguns. Morales was familiar with the layout of the facility, having been stationed there prior to his discharge from the Army Reserve.
Morales gained access to the weapons by breaking a kitchen window located near the room that contained the vault, climbing to the top of the vault, and cutting a hole through its ceiling. The sharp edges of the ceiling caused Morales to cut himself, leaving behind DNA, which was matched to Morales three days after the robbery.
Upon identifying Morales through the DNA database, law enforcement learned that Morales was on bail for child rape charges pending in Middlesex Superior Court. One of the conditions of his release required him to wear an electronic monitoring bracelet, which he wore during the robbery. In addition, surveillance video depicting a dark colored BMW X1 parked at a building adjacent to the U.S. Army facility was recovered. In the video, a man can be seen going to and from the car with duffle bags. Soon after Morales was identified, law enforcement learned that Morales was renting a BMW X1 at the time of the robbery.
After the robbery, Morales rented another vehicle, and GPS data from the vehicle showed that Morales had travelled to New York City. Morales was then located and arrested on Nov. 18, 2015, in Long Island. Inside his vehicle, four M-4 Carbines and two M-11 handguns were recovered with serial numbers matching those stolen from the Armory.
Morales gave a statement to agents admitting his role in the robbery of the Army Reserve facility. Morales went on to explain that he had sold five of the handguns to two individuals in Dorchester with the help of Tyrone James, who facilitated the transaction. Morales claimed to have given James several hundred dollars, one of the M-4 Carbines and one of the M-11 handguns as payment for assisting with the sales. In April 2017, James was sentenced to 57 months in federal prison.
Following his arrest, Morales was detained at the Donald W. Wyatt Detention Facility in Central Falls, R.I. On Dec. 31, 2016, Morales escaped from the prison by climbing a basketball hoop, jumping onto a roof, and going through a barbed wire fence.
On Jan. 5, 2017, Morales, captured on surveillance video, entered a branch of Bank of America in Cambridge and attempted to rob the bank by passing the teller a note that read, “I WANT ALL OF THE LARGE DENOMINATIONS W/BAND’S FROM THE 2ND (BOTTOM) TILL NOW BE CALM – BE COOL – NO DYE PACKS.” The teller was able to flee to the back of the bank behind a locked door, and Morales exited the bank without any money.
Later that same day, Morales, again captured on surveillance video, entered a branch of Citizen’s Bank in Somerville and attempted to rob the bank by passing the teller a note that read, “I WANT THE MONEY IN THE TILL NOW!! 100’s 50’s 20’s Be Calm, Be Cool, be Quick.” The teller stated, “I can’t,” and Morales wished the teller a nice day and exited the bank.
After a foot pursuit in Somerville, Morales was apprehended by law enforcement; he admitted to attempting to rob both banks.
All of the M-4 Carbines have been recovered, while five of the handguns have not yet been recovered. The FBI is offering a reward in connection with information that leads to their recovery. Anyone with information should contact the FBI immediately at (857) 386-2000.
Each possession charge provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charges of conspiracy and escape provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of bank robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge bases upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Acting United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; United States Marshal John Gibbons for the District of Massachusetts; Colonel Richard McKeon, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Brent B. Larabee; and Somerville Police Chief David Fallon made the announcement today. Assistant U.S. Attorneys Mark Grady and Kelly Lawrence of Weinreb’s Criminal Division are prosecuting the case.
Former Fresno IRS Employees Sentenced to Prison for Tax FraudRead the Press Release
FRESNO, Calif. — Della Ornelas, 49, and Randall Ruff, 53, both of Fresno, were sentenced today by United States District Judge Dale A. Drozd to six months in prison for aiding others in the preparation of false tax returns, and making their own fraudulent tax returns as an employee of the United States, U.S. Attorney Phillip A. Talbert announced. They both were also ordered to serve six months in home confinement and to pay full restitution to the Internal Revenue Service.
According to court documents, Della Ornelas, 49, and Randall Ruff, 53, both of Fresno, are a married couple and were longtime employees of the Internal Revenue Service in Fresno. Between 2005 and 2013, they filed false tax returns for family and friends that added dependents, generating large tax refunds that were diverted into bank accounts they controlled sometimes without the knowledge of the taxpayer. They also filed false tax returns for themselves, fraudulently adding dependents that they were not entitled to claim. Over a seven‑year period, Ornelas defrauded the United States of approximately $76,897, and Ruff defrauded the United States of approximately $53,227.
This case was the product of an investigation by the Treasury Inspector General for Tax Administration and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
Former Deputy Police Chief Sentenced to 4 Years in Prison for Conspiring to Distribute Heroin and MarijuanaRead the Press Release
FRESNO, Calif. — U.S. District Judge Anthony W. Ishii sentenced former Fresno deputy police chief Keith Foster, 53, today to four years in prison for drug trafficking activity with family and friends, U.S. Attorney Phillip A. Talbert announced.
Keith Foster resigned from his position on April 3, 2015, one week after his arrest. On May 23, 2017, a federal jury in Fresno found Foster guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. Co-defendant Ricky Reynolds was sentenced today to 24 months of probation and six months of home detention.
“Earlier this year, a jury found Keith Foster guilty of violating the very laws he was sworn to enforce. By conspiring with others to distribute illegal drugs, Foster breached the trust that the community placed in him as deputy chief of the Fresno Police Department and invited the danger and violence associated with such activity into our neighborhoods,” said U.S. Attorney Talbert.
“Like other law enforcement officers we have convicted for similar crimes in this district, Foster abused his position of trust for his own financial gain,” U.S. Attorney Talbert continued. “Given that the abuse of methamphetamine, opioids, and other drugs causes such immense harm to our community, we will zealously prosecute those in such positions who put profit over duty. I am grateful for the hard work of the ATF and the FBI, together with the full cooperation of Fresno Police Chief Jerry Dyer, in bringing Foster to justice. My office is committed to working with our law enforcement partners to investigate and prosecute public corruption to the fullest extent of the law.”
“Our mission at ATF is to protect the public from violent criminals and criminal organizations,” said Assistant Special Agent in Charge Brice McCracken, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “In the pursuit of our commitment to the public, ATF special agents, alongside our partners at the FBI, followed evidence of a drug trafficking conspiracy that was occurring within the community. That investigation led directly to the former Deputy Police Chief of Fresno Keith Foster. Keith Foster’s actions jeopardized public safety and violated the trust of the citizens of Fresno he swore to protect. Today he faces the consequences for breaking that trust. However, his actions are not indicative of the Fresno Police Department and they will not deter ATF’s partnership with the department.”
“The American people expect law enforcement officers to obey the laws they are sworn to uphold, protect the public, and to serve as role models for their communities,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Keith Foster abused the power and reputation of his position as deputy chief by engaging in drug trafficking, a crime that invites violence into the community he swore to protect and serve. Public corruption is an important and top criminal priority for the FBI, and we are grateful to those who bring allegations of public corruption to our attention.”
According to evidence presented at trial, between July 19, 2014, and March 26, 2015, Keith Foster conspired with his nephew Iran Dennis “Denny” Foster, 46, of Fresno, to obtain marijuana from Ricky Reynolds, 50, of Shasta Lake. Denny Foster regularly traveled to Reynolds’ residence to purchase marijuana. On one of these trips, Denny Foster was stopped by the California Highway Patrol in Merced County and arrested for possessing six pounds of marijuana in the trunk of his car. When he was arrested, his passenger called Keith Foster and Foster said that he “could have provided cover” for Denny Foster if he had known about the trip ahead of time. He also said he would call his “narc guys.”
Also according to evidence presented at trial, between December 23, 2014, and February 2, 2015, Foster conspired with co-defendant Rafael Guzman, 43, of Fresno, to obtain heroin for another person.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorneys Melanie L. Alsworth and Dawrence W. Rice Jr. are prosecuting the case.
Six others pleaded guilty before trial to various offenses related to the drug trafficking conspiracy. On July 10, 2017, Randy Flowers, 51, was sentenced to two years and nine months in prison, on August 14, 2017, Denny Foster, 46, was sentenced to a year and a half in prison. On October 11, 2016, Rafael Guzman, 43, of Fresno was sentenced to three years and four months in prison. Jennifer Donabedian, 37, of Fresno, pleaded guilty to concealing a felony and served 12 months’ probation. Sarah Ybarra, 39, of Fresno, pleaded guilty to conspiracy to distribute marijuana and served one year in prison.
Former Broward County Resident Sentenced to More Than 11 Years in Prison for Identity Theft Hotel Fraud SchemeRead the Press Release
Halima Ouedraogo, 36, most recently of Kirkland, Washington, was sentenced on November 9, 2017, in Miami by U.S. District Court Judge Federico Moreno to 11 years and 11 months in prison in connection with an extensive identity theft and access device fraud scheme. In a previous three-day trial, a jury convicted Ouedraogo of one count of access device fraud, in violation of 18 U.S.C. §1029(a)(2), one count of possession of fifteen or more unauthorized access devices, in violation of 18 U.S.C. §1029(a)(3), and ten counts of aggravated identity theft, in violation of 18 U.S.C. §1028A(a)(1).
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), made the announcement.
The evidence at trial established that Ouedraogo, who previously resided in Miramar and Pembroke Pines, systematically used other peoples’ identities to exploit an electronic reservation and check-in system used by certain hotel chains at the time. For example, on August 4, 2015, Ouedraogo checked in to a Fort Lauderdale hotel using the credit card account number and other personal information of someone who did not know her, and did not authorize her to possess or use it. Ouedraogo stayed at the hotel for three weeks, where she ordered several meals, movies, and other incidentals, running up an overall tab of more than $5,000.
When charges on the stolen credit card began to be declined, Ouedraogo left without paying and checked into another nearby hotel, again using another victim’s name, credit card account number, and other personal information. Ouedraogo was located and arrested later that morning while in possession of more than 1500 names, dates of birth, social security numbers, bank account numbers, driver’s licenses, checkbooks, tax documents, bank cards, vehicle registrations, student identifications and additional personal information belonging to other people. None of the victims authorized Ouedraogo to have or use their identifications. Also found in Ouedraogo’s possession were numerous other hotel key cards, receipts, and folios.
Mr. Greenberg commended the investigative efforts of IRS-CI, USSS and the Fort Lauderdale Police Department. This case was prosecuted by Assistant U.S. Attorneys Anne P. McNamara and Frederic Shadley.
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.
Farmington Felon Sentenced for Conviction on Firearms Charge and Stolen ValorRead the Press Release
ALBUQUERQUE – Anthony Lee Gambino, 45, of Farmington, N.M., was sentenced on Nov. 9, 2017, in federal court in Albuquerque, N.M., to six months in prison for violating the federal firearms laws and making false representations about having received military medals and decorations. Gambino will be on supervised release for three years after completing his prison sentence.
According to court filings, Gambino was the owner and operator of Gambino Security Safety Corp., a security company based in Aztec, N.M. An investigation revealed that Gambino was producing commercial videos and photos for his company advertising different types of tactical and firearms training which depicted Gambino armed with a rifle, holstered side arms and hand guns. Gambino also represented to a prospective vendor of his commercial tactical services that he was a combat veteran who had earned medals and ribbons including the Purple Heart. Court filings indicate that Gambino fraudulently enlisted in the U.S. Marine Corps which resulted in an other than honorable discharge. Gambino was never in combat and was not awarded the Purple Heart or the Marine Corps Combat Action Ribbon.
Gambino was arrested in May 2016, on a criminal complaint charging him with being a felon in possession of firearms and making false representations about receiving military medals and decorations. Gambino was subsequently indicted on the same charges on May 25, 2016. According to the indictment, Gambino was prohibited from possessing firearms or ammunition because he previously had been convicted on charges of commercial burglary, failure to appear, and menacing involving a deadly weapon. According to the indictment, Gambino committed the crimes on May 12, 2016, in San Juan County, N.M.
On Feb. 7, 2017, Gambino pled guilty to the indictment and admitted that on May 12, 2016, he was in possession of six firearms and multiple rounds of ammunition despite his status as a convicted felon prohibited from possessing firearms or ammunition. Gambino further admitted that he fraudulently held himself out to be a recipient of a Purple Heart and a Combat Action Ribbon with intent to obtain money, property or other tangible benefit.
This case was investigated by Homeland Security Investigations and the San Juan County Sheriff’s Office. Assistant U.S. Attorney George C. Kraehe prosecuted the case.
Eagle Butte Man Sentenced for Simple AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Simple Assault was sentenced on November 13, 2017, by U.S. District Judge Roberto A. Lange.
Carlin Jimi Jewett, Jr., a/k/a Jimmy Jewett, Jr., age 37, was sentenced to 6 months in custody, and a special assessment to the Federal Crime Victims Fund in the amount of $10. Restitution is being left open for 30 days.
Jewett was indicted by a federal grand jury on May 16, 2017. He was found guilty on October 12, 2017, after a 2-day trial.
The conviction stems from an incident on March 31, 2017, when the defendant held a pocket knife, with the blade exposed, to the neck of a juvenile female at her home in Timber Lake.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case. Jewett was immediately turned over to the custody of the U.S. Marshals Service.
Durant Man Sentenced to 36 Months Probation for Delay or Destruction of Mail by Postal EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Shawn Justin Fischer, age 36, of Durant, Oklahoma, was sentenced to 3 years of probation for Delay or Destruction Of Mail By Postal Employee, in violation of Title 18, United States Code, Section 1703.
The Indictment alleged that on or about April 20, 2017, in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully open a package entrusted to him and which came into his possession to be conveyed by mail while performing his assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Services’ Office of Inspector General. U.S. Attorney Brian J. Kuester stated, “The vast majority of our Postal Service employees serve us honorably. Identifying and prosecuting the very few Postal Service employees who violate the trust of the people they serve helps to maintain the integrity of our postal system. I am thankful to the Office of Inspector General for its work in this and other cases in the Eastern District of Oklahoma.”
The Honorable James H. Payne, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States.
Doctor Pleads Guilty to Making False StatementsRead the Press Release
St. Louis, MO – On November 13, 2017, Deborah Lee Dowden, 61, of Defiance, Missouri, pled guilty today one felony charge of making a false statement to a health care program. In her plea agreement, Dr. Dowden admitted that her medical license suspended on June 11, 2013 because of her failure to pay her state taxes. Dr. Dowden’s medical license later expired on January 31, 2014. Eventually, during March or April of 2016, the defendant vacated her medical office. However, after April 2016, Dr. Dowden continued to submit numerous office visit claims for reimbursement to health care benefit programs regarding Missouri patients even though she had neither an office nor a medical license with which to provide medical services until January 30, 2017. The plea agreement calculates a loss to various private health care programs of $304,843. Sentencing for Dr. Dowden is set for February 21, 2018.
A false statement charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Special Investigation Unit of Anthem Blue Cross Blue Shield.
Derry Man Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Peter Morency, 34, of Derry, New Hampshire pleaded guilty today to three counts of producing child pornography.
According to court documents and statements made in court, Morency filmed and photographed himself performing sexual acts on two children. The children, who were known to Morency, appeared to be sleeping at the time. A forensic examination of devices possessed by Morency uncovered over 5,000 still images and over 2,000 videos depicting the sexual exploitation of children, of which approximately 30 still images and 37 videos were created by the defendant. The defendant admitted to possessing and to producing the images.
Morency will be sentenced on February 22, 2018. He faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in prison on each count of conviction.
“The United States Attorney’s Office is committed to working with our law enforcement partners to protect the children of the Granite State,” said Acting U.S. Attorney Farley. “Those who exploit children cause untold amounts of harm to their victims and our entire community. We will continue to be aggressive in our efforts to identify and prosecute those who produce child pornography to ensure that they cannot exploit additional children or cause further harm.”
"The sexual exploitation of children is a heinous crime that causes irreparable harm to its young victims," said Michael Shea, acting special agent in charge of HSI Boston. "To rescue these innocent victims, HSI works closely with our law enforcement partners to protect our communities from child predators."
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Derry Police Department, and the New Hampshire Internet Crimes Against Children Task Force, which includes members of several other police departments. The case is being prosecuted by Assistant U.S. Attorney Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Concert Promoter Who Raised Money for Events that Would Never Take Place Pleads Guilty to Bilking InvestorsRead the Press Release
LOS ANGELES – A concert promoter who operated in Dallas, Texas and West Hollywood pleaded guilty this morning to a federal fraud charge for defrauding investors, promoters and performers who invested in concerts and World Wrestling Entertainment events.
Gabriel Martin Reed, 46, a former Malibu resident who currently lives in McKinney, Texas, pleaded guilty this morning to one count of wire fraud.
Reed, who conducted business under the name Gabe Reed Productions, admitted in court today that he received money from victims after falsely telling them that events would take place, certain performers had agreed to participate in those events, and their money would be used to organize and promote the events. Instead of using the money for concerts and other events as promised, Reed used investor funds to pay his personal expenses, including rent, utility bills and travel expenses.
According to court documents, over an 8½-year period, Reed represented himself as a promoter and organizer of hard rock and wrestling events. Reed solicited investors by touting what he claimed were longstanding relationships with well-known musicians, showing props from alleged previous tours, and fabricating records related to music events.
“To execute his scheme to defraud, [Reed] used sophisticated means, including, but not limited to, creating email addresses in the names of other individuals and entities to convince his victims that their funds were legitimately invested,” according to a plea agreement filed in federal court. “In addition, [Reed] produced and distributed to victims fraudulent and fabricated artist contracts, bank statements, and correspondence.”
One Los Angeles investor agreed to put $100,000 into a 2016 concert tour Reed was calling “Titans of Rock.” However, many of the promised artists had not agreed to participate in the tour, according to the plea agreement. The FBI reviewed bank records that showed the victim’s money was used to pay for Reed’s personal expenses, including child support, costs related to a birthday party, and meals at Ruth’s Chris Steakhouse and Mr. Chow in Beverly Hills, according to an affidavit previously filed in this case.
Documents previously filed in this case state that victims suffered losses of at least $1.4 million.
Reed pleaded guilty before United States District Judge Philip S. Gutierrez, who scheduled a sentencing hearing on March 19, 2018. As a result of today’s guilty plea, Reed faces a statutory maximum sentence of 20 years in federal prison.
The case against Reed is being investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Chicago man pleads guilty for role in drug conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Chicago man pleaded guilty today for his role in a drug trafficking conspiracy, announced United States Attorney Carol Casto. Richard Fleming entered his guilty plea to aiding and abetting the attempted distribution of 100 kilograms or more of marijuana.
Fleming admitted that he traveled to Putnam County on March 12, 2010, to pick up approximately $600,000 of drug proceeds from a March 5, 2010, shipment of over 300 kilograms of marijuana on behalf of a drug trafficking organization operating out of Arizona and Mexico. Unbeknownst to Fleming and the drug trafficking organization, law enforcement intercepted the marijuana before it could be delivered. When Fleming arrived in Putnam County to pick up the cash, he actually met with an undercover officer who provided him with a duffel bag he represented contained approximately $600,000 in drug proceeds. Fleming then left the area and began travelling back to his destination to provide the money to other members of the drug trafficking organization. A traffic stop was conducted on Fleming’s vehicle in Kentucky and the duffel bag was recovered.
Fleming was originally charged in July 2010 and released on bond. On September 7, 2011, he failed to appear for his trial and a bench warrant was issued for his arrest. Fleming remained a fugitive until he was arrested in Mexico in August 2017. He admitted during his plea hearing that he fled the United States to avoid prosecution in this case.
Fleming faces at least five and up to 40 years in federal prison when he is sentenced on February 12, 2018.
A total of 15 other individuals were successfully prosecuted as a result of this investigation. Additionally, law enforcement seized over a million dollars in drug proceeds and an airplane belonging to this drug trafficking organization.
This prosecution was made possible through the cooperative efforts of several investigating agencies, including the Putnam County Sheriff’s Department, the Metropolitan Drug Enforcement Network Team, the Muskingum County Sheriff’s Department in Ohio, the Lawrence County Sheriff’s Department in Ohio, the United States Marshals Service, the Kentucky State Police, the Indiana State Police, the Huntington Police Department, and the Policia Federal Ministerial of Mexico. Additionally, several Drug Enforcement Administration agents investigated this case, including agents from Charleston, Columbus, Phoenix, Tucson, Chicago, Denver, and Hermosillo, Mexico.
Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. United States District Judge Robert C. Chambers presided over today’s plea hearing.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Berkeley County man admits to heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gregory Everett Mosby, of Inwood, West Virginia, has admitted to heroin distribution, United States Attorney William J. Powell announced.
Mosby, age 42, pled guilty to one count of “Possession with Intent to Distribute Heroin.” Mosby admitted to being in possession of heroin with the intent of distributing in September 2013 in Berkeley County.
Mosby faces up to twenty years in prison and a fine of up to $1,000,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Ballston Spa Man Pleads Guilty to Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Damian Quillinan, age 44, of Ballston Spa, New York, pled guilty today to receiving and possessing child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Quillinan admitted that on July 29, 2016, he used his phone to download files containing child pornography from the Internet, which he saved on the phone’s memory card. Quillinan further admitted to downloading and storing over 14,000 child pornography videos and images on various computers and external hard drives in his residence between February 2014 and August 2016.
United States District Judge Mae A. D’Agostino is scheduled to sentence Quillinan on March 13, 2018. Quillinan faces at least 5 years and up to 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Upon his release from prison, Quillinan would also have to register as a sex offender.
This case was jointly investigated by the FBI and New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Attorney General Jeff Sessions Statement on the FBI's 2016 Hate Crimes StatisticsRead the Press Release
Attorney General Jeff Sessions released the following statement on the FBI’s announcement of the 2016 Hate Crimes Statistics:
“No person should have to fear being violently attacked because of who they are, what they believe, or how they worship.
“In June, the Hate Crimes Subcommittee of the Justice Department’s Task Force on Crime Reduction and Public Safety met with representatives from affected communities. The subcommittee continues to explore ways to expand and improve training for federal, state, and local prosecutors and investigators; improve data collection of hate crimes; and to create even better partnerships with local law enforcement and affected communities.
“The full report of the Task Force is due in January, but there are actions we can take now, like continuing to aggressively prosecute those who violate an individuals’ civil rights. Most recently, the Justice Department cross-designated a Civil Rights Division prosecutor to assist in the trial of an Iowa man accused of murdering Kedarie Johnson, a transgender teenager. I was pleased to learn on November 3, 2017 that the trial resulted in a conviction, and the man now faces life in prison.
“The Department of Justice is committed to ensuring that individuals can live without fear of being a victim of violent crime based on who they are, what they believe, or how they worship.”
Attorney General Jeff Sessions Appoints Utah U.S. Attorney John W. Huber to Leadership Position as Member of the Attorney’s General’s Advisory CommitteeRead the Press Release
WASHINGTON, D.C. -- Attorney General Jeff Sessions today announced the appointment of nine new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Utah U.S. Attorney John W. Huber will serve as the Vice Chair of the AGAC.
U.S. Attorney Richard Moore of the Southern District of Alabama will Chair the AGAC.
The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. The AGAC represents U.S. Attorneys around the country and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.
“I am pleased to announce the first members of the Attorney General’s Advisory Committee under this administration. These U.S. Attorneys will play an important role in carrying out the Department of Justice’s mission to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and return to the rule of law,” said Attorney General Sessions.
“I am deeply honored to be asked to serve as an advisor to Attorney General Sessions and Deputy Attorney General Rosenstein. These men are leaders of the highest caliber and are deeply committed to serving our great nation. This appointment will give Utah an important voice in Department of Justice initiatives and priorities,” Huber said today.
Other new appointees include U.S. Attorney for the District of Columbia Jessie K. Liu; U.S. Attorney for the Northern District of Ohio Justin E. Herdman; U.S. Attorney for the Eastern District of North Carolina Robert Higdon; U.S. Attorney for the Northern District of Oklahoma Robert Trent Shores; U.S. Attorney for the Southern District of Indiana Joshua Minkler; U.S. Attorney for the Eastern District of Missouri Jeff Jensen; and Acting U.S. Attorney for the District of Alaska Bryan Schroder.
A brief bio on each nominee is below:
Richard Moore (Chair)
The Senate confirmed Richard Moore’s appointment as United States Attorney for the Southern District of Alabama in September 2017. Prior to this appointment, Mr. Moore served as the Inspector General for the Tennessee Valley Authority. From May 2009 to March 2011, Mr. Moore was the Chairman of the Investigations Committee for the Council of Inspectors General on Integrity and Efficiency. Prior to this position, Mr. Moore served as an Assistant United States Attorney for the Southern District of Alabama from 1985 to 2003. From 1997 to 1998, Mr. Moore was an Atlantic Fellow in Public Policy at Oxford University in England. Mr. Moore received his B.S., summa cum laude, from Spring Hill College and his J.D. from the Samford University Cumberland School of Law.
John W. Huber (Vice Chair)
John Huber has served as the United States Attorney for the District of Utah since 2015, and in August 2017, the Senate again confirmed his appointment. Prior to being United States Attorney, Mr. Huber served as an Assistant United States Attorney for 13 years. Mr. Huber began his prosecutorial career in the Weber County (Utah) Attorney’s Office, and later served as the Chief Prosecutor for West Valley City, Utah, before joining the United States Attorney’s Office in 2002. Mr. Huber received his B.A. from the University of Utah and his J.D. from the University of Utah College of Law.
Justin E. Herdman
The Senate confirmed Justin Herdman’s appointment as United States Attorney for the Northern District of Ohio in August 2017. Prior to this appointment, Mr. Herdman was a partner at Jones Day and an Assistant United States Attorney in Cleveland, Ohio. Mr. Herdman previously served as an Assistant District Attorney in New York City from 2001 to 2005 and as an associate at Vorys, Sater, Seymour and Pease, LLP. He is currently a Judge Advocate General in the United States Air Force Reserve. Mr. Herdman received his B.A. from Ohio University, his Master of Philosophy from the University of Glasgow and his J.D. from Harvard Law School.
Robert Higdon
The Senate confirmed Robert Higdon to be United States Attorney for the Eastern District of North Carolina in October 2017. Prior to this appointment, Mr. Higdon was a partner at the law firm of Williams Mullen. He previously served as an Assistant United States Attorney in both the Western and Eastern Districts of North Carolina. In the Eastern District U.S. Attorney’s Office, Mr. Higdon served as Chief of the Criminal Division for more than 11 years. Mr. Higdon also served as senior trial counsel in the Public Integrity Section of the Department of Justice. He received his B.A., cum laude, from Wake Forest University and his J.D. from Wake Forest University School of Law.
Jeff Jensen
The Senate confirmed Jeff Jensen to be United States Attorney for the Eastern District of Missouri in October 2017. Prior to this appointment, Mr. Jensen was a partner at Husch Blackwell LLP. He served as an Assistant United States Attorney in the Eastern District of Missouri starting in 1999, and was Executive United States Attorney from 2005 to 2009. Prior to joining the U.S. Attorney’s Office, Mr. Jensen was an FBI Special Agent from 1989 to 1999. While working at the FBI, Mr. Jensen attended St. Louis University School of Law at night, graduating magna cum laude. He also received his B.A., cum laude, from Indiana University School of Business.
Jessie K. Liu
The Senate confirmed Jessie Liu to be United States Attorney for the District of Columbia in September 2017. Ms. Liu was previously Deputy General Counsel for the United States Department of the Treasury and a partner at the law firms of Morrison & Foerster LLP and Jenner & Block LLP. In addition, she has served as an Assistant United States Attorney in the District of Columbia and in several senior positions in the United States Department of Justice, including as Deputy Assistant Attorney General in the Civil Rights Division, counsel to the Deputy Attorney General, and deputy chief of staff for the National Security Division. Ms. Liu clerked for then-Chief Judge Carolyn Dineen King of the United States Court of Appeals for the Fifth Circuit. She received her A.B., summa cum laude, from Harvard University and her J.D. from Yale Law School.
Joshua Minkler
The Senate confirmed Joshua Minkler to be United States Attorney for the Southern District of Indiana in October 2017. Since June 2015, Mr. Minkler had served as the interim United States Attorney for the Southern District of Indiana. Prior to that position, he served for 21 years as an Assistant United States Attorney in the Southern District of Indiana. Before he joined the U.S. Attorney’s Office, Mr. Minkler served for five years as an assistant prosecuting attorney in the Office of the Kent County Michigan Prosecuting Attorney. Mr. Minkler received his B.A. from Wabash College, and his J.D. from Indiana University Maurer School of Law.
Bryan Schroder
Bryan Schroder’s nomination to be United States Attorney for the District of Alaska is pending in the Senate. Mr. Schroder is currently the Acting United States Attorney for the District of Alaska, and previously served as the First Assistant United States Attorney and Criminal Chief. Mr. Schroder has served in the U.S. Attorney’s Office for more than 11 years. Mr. Schroder is a retired Captain in the U.S. Coast Guard, having served for 24 years. Mr. Schroder graduated from the U.S. Coast Guard Academy and the University of Washington School of Law.
Robert Trent Shores
The Senate confirmed Robert Trent Shores to be United States Attorney for the Northern District of Oklahoma in September 2017. Prior to this appointment, Mr. Shores was an Assistant United States Attorney in the Northern District of Oklahoma. Mr. Shores previously served as First Assistant Attorney General for the State of Oklahoma and deputy director for the Department of Justice’s Office of Tribal Justice, where he developed initiatives to promote public safety in Indian Country. Mr. Shores received his undergraduate degree from Vanderbilt University and his J.D. from the University of Oklahoma College of Law.
Attorney General Jeff Sessions Appoints Members to U.S. Attorney Advisory CommitteeRead the Press Release
Attorney General Jeff Sessions today announced the appointment of nine new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. AGAC represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.
The new appointees include: U.S. Attorney for the Southern District of Alabama Richard Moore; U.S. Attorney for the District of Utah John W. Huber; U.S. Attorney for the District of Columbia Jessie K. Liu; U.S. Attorney for the Northern District of Ohio Justin E. Herdman; U.S. Attorney for the Eastern District of North Carolina Robert Higdon; U.S. Attorney for the Northern District of Oklahoma Trent Shores; U.S. Attorney for the Southern District of Indiana Joshua Minkler; U.S. Attorney for the Eastern District of Missouri Jeff Jensen; and Acting U.S. Attorney for the District of Alaska Bryan Schroder.
U.S. Attorney Richard Moore will serve as the Chair of AGAC, and U.S. Attorney John W. Huber will serve as the Vice Chair.
“I am pleased to announce the first members of the Attorney General’s Advisory Committee under this administration. These U.S. Attorneys will play an important role in carrying out the Department of Justice’s mission to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and return to the rule of law,” said Attorney General Sessions.
A brief bio on each nominee is below:
Richard Moore (Chair)
The Senate confirmed Richard Moore’s appointment as United States Attorney for the Southern District of Alabama in September 2017. Prior to this appointment, Mr. Moore served as the Inspector General for the Tennessee Valley Authority. From May 2009 to March 2011, Mr. Moore was the Chairman of the Investigations Committee for the Council of Inspectors General on Integrity and Efficiency. Prior to this position, Mr. Moore served as an Assistant United States Attorney for the Southern District of Alabama from 1985 to 2003. From 1997 to 1998, Mr. Moore was an Atlantic Fellow in Public Policy at Oxford University in England. Mr. Moore received his B.S., summa cum laude, from Spring Hill College and his J.D. from the Samford University Cumberland School of Law.
John W. Huber (Vice Chair)
Since June 2015, John Huber has served as the United States Attorney for the District of Utah, and in August 2017, the Senate again confirmed his appointment. Prior to being United States Attorney, Mr. Huber served as an Assistant United States Attorney for thirteen years. Mr. Huber began his prosecutorial career in the Weber County (Utah) Attorney’s Office, and later served as the Chief Prosecutor for West Valley City, Utah, before joining the United States Attorney’s Office in 2002. Mr. Huber received his B.A. from the University of Utah and his J.D. from the University of Utah College of Law.
Justin E. Herdman
The Senate confirmed Justin Herdman’s appointment as United States Attorney for the Northern District of Ohio in August 2017. Prior to this appointment, Mr. Herdman was a partner at Jones Day and an Assistant United States Attorney in Cleveland, Ohio. Mr. Herdman previously served as an Assistant District Attorney in New York City from 2001 to 2005 and as an associate at Vorys, Sater, Seymour and Pease, LLP. He is currently a Judge Advocate General in the United States Air Force Reserve. Mr. Herdman received his B.A. from Ohio University, his Master of Philosophy from the University of Glasgow and his J.D. from Harvard Law School.
Robert Higdon
The Senate confirmed Robert Higdon to be United States Attorney for the Eastern District of North Carolina in October 2017. Prior to this appointment, Mr. Higdon was a partner at the law firm of Williams Mullen. He previously served as an Assistant United States Attorney in both the Western and Eastern Districts of North Carolina. In the Eastern District U.S. Attorney’s Office, Mr. Higdon served as Chief of the Criminal Division for more than 11 years. Mr. Higdon also served as senior trial counsel in the Public Integrity Section of the Department of Justice. He received his B.A., cum laude, from Wake Forest University and his J.D. from Wake Forest University School of Law.
Jeff Jensen
The Senate confirmed Jeff Jensen to be United States Attorney for the Eastern District of Missouri in October 2017. Prior to this appointment, Mr. Jensen was a partner at Husch Blackwell LLP. He served as an Assistant United States Attorney in the Eastern District of Missouri starting in 1999, and was Executive United States Attorney from 2005 to 2009. Prior to joining the U.S. Attorney’s Office, Mr. Jensen was an FBI Special Agent from 1989 to 1999. While working at the FBI, Mr. Jensen attended St. Louis University School of Law at night, graduating magna cum laude. He also received his B.A., cum laude, from Indiana University School of Business.
Jessie K. Liu
The Senate confirmed Jessie Liu to be United States Attorney for the District of Columbia in September 2017. Ms. Liu was previously Deputy General Counsel for the United States Department of the Treasury and a partner at the law firms of Morrison & Foerster LLP and Jenner & Block LLP. In addition, she has served as an Assistant United States Attorney in the District of Columbia and in several senior positions in the United States Department of Justice, including as Deputy Assistant Attorney General in the Civil Rights Division, counsel to the Deputy Attorney General, and deputy chief of staff for the National Security Division. Ms. Liu clerked for then-Chief Judge Carolyn Dineen King of the United States Court of Appeals for the Fifth Circuit. She received her A.B., summa cum laude, from Harvard University and her J.D. from Yale Law School.
Joshua Minkler
The Senate confirmed Joshua Minkler to be United States Attorney for the Southern District of Indiana in October 2017. Since June 2015, Mr. Minkler had served as the interim United States Attorney for the Southern District of Indiana. Prior to that position, he served for 21 years as an Assistant United States Attorney in the Southern District of Indiana. Before he joined the U.S. Attorney’s Office, Mr. Minkler served for five years as an assistant prosecuting attorney in the Office of the Kent County Michigan Prosecuting Attorney. Mr. Minkler received his B.A. from Wabash College, and his J.D. from Indiana University Maurer School of Law.
Bryan Schroder
Bryan Schroder’s nomination to be United States Attorney for the District of Alaska is pending in the Senate. Mr. Schroder is currently the Acting United States Attorney for the District of Alaska, and previously served as the First Assistant United States Attorney and Criminal Chief. Mr. Schroder has served in the U.S. Attorney’s Office for more than 11 years. Mr. Schroder is a retired Captain in the U.S. Coast Guard, having served for 24 years. Mr. Schroder graduated from the U.S. Coast Guard Academy and the University of Washington School of Law.
R. Trent Shores
The Senate confirmed Robert Trent Shores to be United States Attorney for the Northern District of Oklahoma in September 2017. Prior to this appointment, Mr. Shores was an Assistant United States Attorney in the Northern District of Oklahoma. Mr. Shores previously served as First Assistant Attorney General for the State of Oklahoma and deputy director for the Department of Justice’s Office of Tribal Justice, where he developed initiatives to promote public safety in Indian Country. Mr. Shores received his undergraduate degree from Vanderbilt University and his J.D. from the University of Oklahoma College of Law.
Attorney General Jeff Sessions Appoints Members to U.S. Attorney Advisory CommitteeRead the Press Release
Attorney General Jeff Sessions today announced the appointment of nine new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. AGAC represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.
The new appointees include: U.S. Attorney for the Southern District of Alabama Richard Moore; U.S. Attorney for the District of Utah John W. Huber; U.S. Attorney for the District of Columbia Jessie K. Liu; U.S. Attorney for the Northern District of Ohio Justin E. Herdman; U.S. Attorney for the Eastern District of North Carolina Robert Higdon; U.S. Attorney for the Northern District of Oklahoma Robert Trent Shores; U.S. Attorney for the Southern District of Indiana Joshua Minkler; U.S. Attorney for the Eastern District of Missouri Jeff Jensen; and Acting U.S. Attorney for the District of Alaska Bryan Schroder.
U.S. Attorney Richard Moore will serve as the Chair of AGAC, and U.S. Attorney John W. Huber will serve as the Vice Chair.
“I am pleased to announce the first members of the Attorney General’s Advisory Committee under this administration. These U.S. Attorneys will play an important role in carrying out the Department of Justice’s mission to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and return to the rule of law,” said Attorney General Sessions.
A brief bio on each nominee is below:
Richard Moore (Chair)
The Senate confirmed Richard Moore’s appointment as United States Attorney for the Southern District of Alabama in September 2017. Prior to this appointment, Mr. Moore served as the Inspector General for the Tennessee Valley Authority. From May 2009 to March 2011, Mr. Moore was the Chairman of the Investigations Committee for the Council of Inspectors General on Integrity and Efficiency. Prior to this position, Mr. Moore served as an Assistant United States Attorney for the Southern District of Alabama from 1985 to 2003. From 1997 to 1998, Mr. Moore was an Atlantic Fellow in Public Policy at Oxford University in England. Mr. Moore received his B.S., summa cum laude, from Spring Hill College and his J.D. from the Samford University Cumberland School of Law.
John W. Huber (Vice Chair)
Since June 2015, John Huber has served as the United States Attorney for the District of Utah, and in August 2017, the Senate again confirmed his appointment. Prior to being United States Attorney, Mr. Huber served as an Assistant United States Attorney for thirteen years. Mr. Huber began his prosecutorial career in the Weber County (Utah) Attorney’s Office, and later served as the Chief Prosecutor for West Valley City, Utah, before joining the United States Attorney’s Office in 2002. Mr. Huber received his B.A. from the University of Utah and his J.D. from the University of Utah College of Law.
Justin E. Herdman
The Senate confirmed Justin Herdman’s appointment as United States Attorney for the Northern District of Ohio in August 2017. Prior to this appointment, Mr. Herdman was a partner at Jones Day and an Assistant United States Attorney in Cleveland, Ohio. Mr. Herdman previously served as an Assistant District Attorney in New York City from 2001 to 2005 and as an associate at Vorys, Sater, Seymour and Pease, LLP. He is currently a Judge Advocate General in the United States Air Force Reserve. Mr. Herdman received his B.A. from Ohio University, his Master of Philosophy from the University of Glasgow and his J.D. from Harvard Law School.
Robert Higdon
The Senate confirmed Robert Higdon to be United States Attorney for the Eastern District of North Carolina in October 2017. Prior to this appointment, Mr. Higdon was a partner at the law firm of Williams Mullen. He previously served as an Assistant United States Attorney in both the Western and Eastern Districts of North Carolina. In the Eastern District U.S. Attorney’s Office, Mr. Higdon served as Chief of the Criminal Division for more than 11 years. Mr. Higdon also served as senior trial counsel in the Public Integrity Section of the Department of Justice. He received his B.A., cum laude, from Wake Forest University and his J.D. from Wake Forest University School of Law.
Jeff Jensen
The Senate confirmed Jeff Jensen to be United States Attorney for the Eastern District of Missouri in October 2017. Prior to this appointment, Mr. Jensen was a partner at Husch Blackwell LLP. He served as an Assistant United States Attorney in the Eastern District of Missouri starting in 1999, and was Executive United States Attorney from 2005 to 2009. Prior to joining the U.S. Attorney’s Office, Mr. Jensen was an FBI Special Agent from 1989 to 1999. While working at the FBI, Mr. Jensen attended St. Louis University School of Law at night, graduating magna cum laude. He also received his B.A., cum laude, from Indiana University School of Business.
Jessie K. Liu
The Senate confirmed Jessie Liu to be United States Attorney for the District of Columbia in September 2017. Ms. Liu was previously Deputy General Counsel for the United States Department of the Treasury and a partner at the law firms of Morrison & Foerster LLP and Jenner & Block LLP. In addition, she has served as an Assistant United States Attorney in the District of Columbia and in several senior positions in the United States Department of Justice, including as Deputy Assistant Attorney General in the Civil Rights Division, counsel to the Deputy Attorney General, and deputy chief of staff for the National Security Division. Ms. Liu clerked for then-Chief Judge Carolyn Dineen King of the United States Court of Appeals for the Fifth Circuit. She received her A.B., summa cum laude, from Harvard University and her J.D. from Yale Law School.
Joshua Minkler
The Senate confirmed Joshua Minkler to be United States Attorney for the Southern District of Indiana in October 2017. Since June 2015, Mr. Minkler had served as the interim United States Attorney for the Southern District of Indiana. Prior to that position, he served for 21 years as an Assistant United States Attorney in the Southern District of Indiana. Before he joined the U.S. Attorney’s Office, Mr. Minkler served for five years as an assistant prosecuting attorney in the Office of the Kent County Michigan Prosecuting Attorney. Mr. Minkler received his B.A. from Wabash College, and his J.D. from Indiana University Maurer School of Law.
Bryan Schroder
Bryan Schroder’s nomination to be United States Attorney for the District of Alaska is pending in the Senate. Mr. Schroder is currently the Acting United States Attorney for the District of Alaska, and previously served as the First Assistant United States Attorney and Criminal Chief. Mr. Schroder has served in the U.S. Attorney’s Office for more than 11 years. Mr. Schroder is a retired Captain in the U.S. Coast Guard, having served for 24 years. Mr. Schroder graduated from the U.S. Coast Guard Academy and the University of Washington School of Law.
Robert Trent Shores
The Senate confirmed Robert Trent Shores to be United States Attorney for the Northern District of Oklahoma in September 2017. Prior to this appointment, Mr. Shores was an Assistant United States Attorney in the Northern District of Oklahoma. Mr. Shores previously served as First Assistant Attorney General for the State of Oklahoma and deputy director for the Department of Justice’s Office of Tribal Justice, where he developed initiatives to promote public safety in Indian Country. Mr. Shores received his undergraduate degree from Vanderbilt University and his J.D. from the University of Oklahoma College of Law.
Athens County Man Convicted for Killing Migratory BirdRead the Press Release
COLUMBUS, Ohio – Rick Kesterson, 37, of Glouster, Ohio was sentenced in U.S. District Court for unlawfully killing an Osprey in violation of the Migratory Bird Treaty Act. Under the Migratory Bird Treaty Act, it is unlawful to kill any migratory bird except as allowed by regulation.
Kesterson was sentenced to two years of probation. He was also ordered to pay $500 in restitution to the Ohio Department of Natural Resources, forfeit his hunting license, complete 52 hours of community service at Burr Oak State Park and be subject to random house inspections and drug testing.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and officials with the United States Fish and Wildlife Service, Office of Law Enforcement, and Ohio Department of Natural Resources (ODNR), Division of Wildlife and Franklin County Prosecutor Ron O’Brien announced the sentence handed down last week by U.S. District Judge Algenon L. Marbley.
According to court documents, Kesterson was observed striking an Osprey with a pipe after the Osprey was shot out of the air with a shotgun.
In April 2015, ODNR Division of Wildlife received a complaint on the Turn in a Poacher (TIP) hotline reporting the shooting of an Osprey. Eyewitnesses stated they were watching the bird with binoculars when they heard two shots and saw the Osprey fall from the air into a pond.
Kesterson was seen using a fishing line to retrieve the Osprey from the water. Kesterson then struck the Osprey with a stick or pipe and carried it down a dirt road into the woods.
Investigators found the Osprey partially submerged in a creek in the woods.
The following day, during the execution of a search warrant, investigators approached a residence belonging to Kesterson’s parents, in which Kesterson resides in the basement. Despite Kesterson’s mother telling authorities she was the only person home, investigators found Kesterson hiding in his bedroom, lying on the floor between two beds.
The residence was filled heavily with smoke that smelled like marijuana and it was later determined Kesterson saw the officers coming up the driveway and he attempted to burn a handful of marijuana in a wood burning stove with a propane torch. Investigators also found live marijuana plants, a large amount of marijuana drying and grow lights throughout the residence.
The Athens County Sheriff’s Office, Major Crimes Unit, obtained a separate search warrant for the narcotics and handled that aspect of this matter.
Kesterson was charged by criminal complaint in January 2017 and indicted by a federal grand jury in May 2017. He pleaded no contest to the charge today in federal court, and Judge Marbley found him guilty.
“This case came to fruition thanks to a call to 1-800-POACHER,” U.S Attorney Glassman said. “We encourage residents of the Southern District of Ohio to continue to report the illegal killing of wildlife so that we may hold individuals like Kesterson accountable for their actions.”
U.S. Attorney Glassman commended the cooperative investigation by U.S. Fish and Wildlife and Ohio Department of Natural Resources, as well as Assistant United States Attorney J. Michael Marous and Special Assistant United States Attorney Heather Robinson who represented the United States in this case.
# # #
10 Defendants Indicted on Federal Drug Trafficking ChargesRead the Press Release
Memphis, TN – Ten residents of the greater Memphis area have been indicted for conspiring to distribute large quantities of methamphetamine, cocaine, and marijuana throughoutWest Tennessee. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
On November 2, 2017, a federal grand jury returned a superseding indictment, which remained sealed until the defendants’ arrest. On Tuesday, November 7, 2017, federal, state and local law enforcement agencies participated in an early morning round up. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
The indictments follow a six-month investigation involving agents of the FBI as well as other federal and state agencies in this joint operation. The defendants have been charged with conspiracy to distribute and possess with the intent to distribute more than 500 grams of methamphetamine, more than 5 kilograms of cocaine, and more than 100 kilograms of marijuana. The defendants are:
• Daniel Castelo, 42, Memphis, Tennessee
• Lorenzo Castelo, 39, Memphis, Tennessee
• Carlos Crump, 33, Memphis, Tennessee
• Julio Ceasar Garcia, 37, Memphis, Tennessee
• Josue Gonzalez, 28, Memphis, Tennessee
• Jesus Gutierrez, 40, Memphis, Tennessee
• Albert Hall, 33, Memphis, Tennessee
• Roy Lee Johnson, 59, West Memphis, Arkansas
• Roy Lee Johnson Jr., 27,West Memphis, Arkansas
• Victor Torrez, 19, Memphis, TennesseeU.S. Attorney D. Michael Dunavant said, "This indictment and takedown represents another great example of law enforcement working together to remove criminals from the Western District of Tennessee. We will not tolerate illegal drug activity disrupting our daily lives. Each day, we are driven with all due haste to go after those who do not abide by our laws of justice and who distribute poison in our community. We are coming after you. Making our communities safer for our citizens is our priority and mission."
Count 1 charges Lorenzo Castelo, Daniel Castelo, Carlos Crump, Julio Ceasar Garcia, Jesus Gutierrez, Albert Hall, Roy Lee Johnson, Roy Lee Johnson Jr., and Victor Torrez with conspiracy to possess with intent to distribute 5 kilograms of Cocaine.
Count 2, 3, and 4 charges Lorenzo Castelo with possession with intent to distribute and distribute in excess of 50 grams of Methamphetamine.
Count 5 charges Lorenzo Castelo, Daniel Castelo, Julio Ceasar Garcia, Josue Gonzalez, and Victor Torrez, with possession with intent to distribute and to distribute in excess of 500 grams of Methamphetamine.
Count 6 charges Lorenzo Castelo, Daniel Castelo, Carlos Crump, Julio Ceasar Garcia, Albert Hall, Roy Lee Johnson and Victor Torrez with possession with intent to distribute and to distribute in excess of 100 kilograms of Marijuana.
Count 7 charges Lorenzo Castelo, Daniel Castelo and Victor Torrez with possession with intent to distribute in excess of 500 grams of Methamphetamine.
The United States also seeks criminal forfeiture of $1,000,000 in U.S. currency, both jointly and severally from Lorenzo Castelo, Daniel Castelo, Victor Torrez, Julio Ceasar Garcia, Carlos Crump, Albert Hall, Roy Lee Johnson, Roy Lee Johnson Jr., Jesus Gutierrez and Josue Gonzalez.
"Illegal drugs are related violence are serious threats to our communities and these arrests demonstrate the importance of cooperation between state, local and federal law enforcement in the Investigation and prosecution of drug trafficking organizations," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the FBI. "The FBI will continue to combat these issues to protect our community from the lethal combination of narcotics and firearms, and to disrupt and dismantle the drug networks that threaten our neighborhoods."
During this investigation, agents seized approximately $345,000 in U.S. currency and 16 pounds of meth. If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.
The FBI and Homeland Security Investigations ("ICE") investigated this case, along with the FBI Safe Streets Task Force, which includes agents from the Memphis Police Department, Shelby County Sheriff’s Office, Bartlett Police Department, Germantown Police Department, and Desoto County, Mississippi Sheriff’s Department, who also participated in this investigation. Assistant U.S. Attorney Jerry Kitchen is prosecuting the case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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11 November 2017
Former Partner at International Law Firm Pleads Guilty in Manhattan Federal Court to Insider TradingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WALTER C. LITTLE, a/k/a “Chet,” a former partner at an international law firm (the “Firm”), pled guilty yesterday to conspiracy to commit securities fraud. Between February 2015 and May 2016, LITTLE used his position at the Firm to learn nonpublic information about certain of the Firms’ clients, including sensitive information regarding expected mergers and earnings. LITTLE used that information to place securities trades and passed that information to Andrew M. Berke, who allegedly also traded on it. LITTLE and Berke allegedly made approximately $1 million in illegal profits through their trading. LITTLE pled guilty earlier today before the Honorable Katherine Polk Failla. The charges against Berke remain pending.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted in court today, Walter Little, while a law firm partner, accessed confidential information about firm clients, and then traded on it. He violated the terms of his employment, the canons of his profession, and federal securities laws. Now Walter Little awaits sentencing for his crime.”
According to allegations in a Complaint and Indictment[1] filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:
LITTLE began working for the Firm in 2005, eventually becoming a partner. The Firm provided legal services to a wide variety of corporations in connection with financial transactions and regulatory issues, among other things. Clients regularly entrusted the Firm with nonpublic information when using its services, and the Firm consequently enacted policies requiring its employees to respect the confidences of such information. LITTLE, however, failed to abide by the Firm’s internal policies prohibiting the improper use of its clients’ confidential information. Even though he did not perform any billable work for the associated clients, LITTLE used the Firm’s document management system to view numerous documents relating to seven different companies. These documents contained material nonpublic information about, among other things, an anticipated delisting from the NASDAQ stock exchange, clients’ involvement in mergers and acquisitions, clients’ anticipated earnings announcements, and a planned securities offering. All of these events would have predictable impacts on the associated stocks’ prices, and, between February 2015 and May 2016, LITTLE traded stocks and options based on the information contained in these documents, making hundreds of thousands of dollars in profits. In addition to trading on the information himself, LITTLE also provided the information to BERKE, his business associate and friend, who also traded on it and made hundreds of thousands of dollars in illegal gains as well.
LITTLE has agreed to forfeit the illegal profits that he made through his trading as part of his plea agreement with the Government.
* * *
LITTLE pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. LITTLE will be sentenced February 22, 2018, by Judge Failla.
BERKE is charged in the Indictment with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; six counts of securities fraud, each of which carries a maximum penalty of 20 years in prison; and one count of conspiracy to commit wire fraud, which also carries a maximum penalty of 20 years in prison. These charges also have a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
The charges against BERKE are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert Allen is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and Indictment, and the descriptions of the Complaint and Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
10 November 2017
Louisville Business Owner Convicted of Defrauding A United States Department of Agriculture ProgramRead the Press Release
Owner of the Meat Store convicted of Food Stamp Fraud
LOUISVILLE, Ky. – The former owner of a Louisville specialty food store was convicted in United States District Court yesterday, before Senior Judge Thomas B. Russell, of Food Stamp fraud, following a four day jury trial announced United States Attorney Russell M. Coleman.
Elias Estephane was the owner of the Meat Store located at 1066 South 28th Street and the Meat Store 2 located at 4835 Poplar Level Road. Both were specialty food stores focusing on meats and both were accepted as Supplemental Nutrition Assistance Program (SNAP), or Food Stamp retailers. SNAP is a program administered by the United States Department of Agriculture (USDA) to provide food-purchasing assistance to low-income individuals through the issue of (EBT) cards to recipients. Evidence at trial showed that on multiple occasions Estephane traded cash for SNAP benefits, in violation of program rules that only permit benefits to be exchanged for eligible food items. Estephane generally paid customers fifty cents on the dollar for their benefits.
In 2015, the USDA and the Federal Bureau of Investigation (FBI) began investigating the Meat Store’s redemption of SNAP benefits. They targeted the Meat Store because it had a significantly higher level of redemption of SNAP benefits compared to similar stores in the area. Specifically, the Meat Store’s month-to-month SNAP redemptions in 2015 were around 20 times the average redemptions from similar stores in the same geographic area.
During the course of the investigation, USDA and FBI sent two undercovers into the Meat Store to attempt to sell SNAP benefits for cash. Between September 1, 2015, and July 12, 2016, the two undercovers exchanged SNAP benefits for cash with defendant Estephane at the Meat Store on nine different occasions, eight of which were captured on video. Sometimes the undercovers would present multiple SNAP EBT cards in different names and request cash from all of them.
During the trial, the United States submitted surveillance video of the Meat Store from four different days then compared transaction data with the video, flagging instances in which people spent $100 or more but left the store holding only one bag. Further the United States had five customer witnesses and one former employee testify.
Sentencing is scheduled before Senior Judge Russell in February 2018. Estephane faces up to five years in prison, three years of supervised release, restitution and a fine of up to $10,000.
The case was prosecuted by Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl, with the assistance of paralegal Mary Kennedy, and was investigated by U.S. Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation (FBI).
Dual U.S.-Irish Citizen Extradited from Ireland to Face Mortgage Fraud ChargesRead the Press Release
BOSTON – A dual U.S.-Irish citizen was arraigned late yesterday in federal court in Boston on charges of mortgage fraud and identity theft after being extradited from Ireland. It was Ireland’s first extradition to the United States since 2012.
Patrick Lee, 44, a dual U.S.-Irish citizen formerly residing in Canton and Easton, Mass., was indicted in 2011 on 29 counts of wire fraud, six counts of unlawful monetary transactions, and 16 counts of aggravated identity theft. Lee had been living in Ireland since 2007.
It is alleged that Lee participated in a mortgage fraud scheme from 2005-2007, shortly before the real estate bubble burst. According to the indictment, Lee and others bought multi-family properties in Dorchester and South Boston and converted them into condominiums. Straw buyers were recruited and paid a fee to sign the purchase documents, although the straw buyers had no intention of living in the condominiums. Lee and others then engaged mortgage brokers to prepare false mortgage loan applications to be signed by the straw buyers, and then Lee, who was not a licensed real estate appraiser, prepared appraisals for the properties using the name and license number of an actual licensed appraiser. It is further alleged that Lee arranged with certain real estate attorneys to conduct closings for the transactions by using false and misleading documents, and then loan applications were sent to mortgage lenders, who funded the loans based on the false appraisals and other misrepresentations. The loan proceeds were paid to Lee and the other sellers, and the straw buyers never moved into the properties or paid the mortgage loans. Eventually, the properties went into foreclosure, and the lenders lost their money.
It is further alleged that some closing documents represented that Lee would receive a certain portion of the loan proceeds as the seller, but in fact he received more. The indictment also charges that Lee prepared appraisals for certain properties that he himself bought or sold, but the appraisals falsely represented that the appraiser, who was represented to be someone other than Lee, was independent and not related to the seller or the buyer.
For some of the wire fraud counts, the charging statute provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The remaining wire fraud counts provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charging statute for unlawful monetary transactions provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000; and the charge of aggravated identity theft provides for a mandatory sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. The U.S. Department of Justice’s Office of International Affairs provided assistance in securing Lee’s extradition to the United States. Assistant U.S. Attorneys Sandra S. Bower and Christine Wichers of Weinreb’s Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
9 November 2017
Wood County man pleads guilty to possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Wood County man who stole mail in November 2016 pleaded guilty today, announced United States Attorney Carol Casto. Richard Thomas Morris, Jr., 38, of Washington, entered his guilty plea to possession of stolen mail.
Morris was a relief driver for a United States Postal Service contractor whose job it was to collect outgoing mail from post offices along a rural route between Ravenswood and Parkersburg. On November 17, 2016, Morris was stopped at the Belleville Post Office by law enforcement officials with the United States Postal Inspection Service. Morris consented to a search of the truck he was driving, and the search turned up a piece of mail addressed to a home in St. Mary’s. The mail had been opened and contained a greeting card. Morris had stolen the greeting card, as well as $50.00 in cash that had been put inside the card by the sender.
Morris faces up to five years in federal prison and $250,000 in fines when he is sentenced on January 22, 2018.
The United States Postal Inspection Service and the United States Postal Service, Office of Inspector General, conducted the investigation. Assistant United States Attorneys Eumi L. Choi and R. Gregory McVey are handling the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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Wisconsin Man Indicted on Charges Related to the Illegal Importation and Sale of Prescription DrugsRead the Press Release
PITTSBURGH - A resident of Oak Creek, Wisconsin was indicted by a federal grand jury in Pittsburgh on charges of conspiracy, use of a false name and address to conduct an unlawful business by means of the Postal Service, and two charges of introduction into interstate commerce, with the intent to defraud, misbranded drugs, Acting United States Attorney Soo C. Song announced today.
The four-count indictment named Rashid Mohammad Khan, 57, as the sole defendant.
According to the indictment presented to the court, the defendant participated in a conspiracy that involved the illegal importation of prescription drugs and the illegal sale of those drugs to consumers in the United States. The importation and sale of prescription medication is regulated by the Food and Drug Administration pursuant to the Federal Food, Drug and Cosmetic Act. Federal law and regulation require that certain drugs, particularly dangerous drugs, contain certain warnings and only be administered under a doctor's care pursuant to a doctor's prescription. A drug is considered "misbranded" if, for example, the drug is sold without a prescription, if it fails to include the approved warnings, if the drug was not approved by the FDA, or if the drug ismanufactured in a facility not approved by the FDA.
Through various websites, members of the conspiracy advertised for sale to consumers in the United States various dangerous drugs that were sold without a prescription, were not administrated under the care of a doctor, did not provide the appropriate warnings, and were not manufactured in facilities approved by the FDA. Some of these misbranded drugs were sent through the Postal Service to the defendant, who then arranged to send themisbranded drugs through the Postal Service to consumers, including consumers in the Western District of Pennsylvania. To conceal his illegal conduct, the defendant used fictitious names and addresses.
The law provides for a maximum total sentence of 16 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration - Office of Criminal Investigations, HomelandSecurity Investigations, Pennsylvania State Police and United States Postal Inspection Service 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.
Whitehall Felon Sentenced for Gun PossessionRead the Press Release
HELENA - The United States Attorney’s Office announced today that 67-year old William Kent Ross of Whitehall was sentenced to 15 months in prison, three years of supervised release, and a $100 special assessment. U.S. District Judge Charles C. Lovell presided over the hearing.
In August 2016, Ross possessed six firearms at his Whitehall, Montana residence. Local law enforcement notified ATF of Ross’s firearm possession after their early August encounter at his residence when he refused to provide a DNA sample in compliance with this sex offender registration requirements. The officer noticed two rifles in a gun cabinet with glass doors and the keys dangling from the lock. The officer noticed a second gun cabinet inside the residence. The six firearms included two revolvers (one was loaded), three rifles (one was loaded), and one shotgun. Ross has an extensive criminal history that includes prior sex crimes involving children and absconding from supervision.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Office.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Vermont Felon Sentenced for Escaping Albany Halfway HouseRead the Press Release
ALBANY, NEW YORK – Keisha Richards, age 24, of Fair Haven, Vermont, was sentenced today to 8 months in jail for escaping from a federal halfway house.
The announcement was made by Acting United States Attorney Grant C. Jaquith and United States Marshal David L. McNulty.
Richards was ordered by the federal Bureau of Prisons to reside at the Horizon House Residential Reentry Center, a halfway house in Albany, as part of her sentence for a federal drug conviction in Vermont. As part of her August 16, 2017 guilty plea, Richards admitted that she left the halfway house without permission on February 27, 2017, and did not return. On April 11, 2017, Richards was arrested by the U.S. Marshals at a residence in Albany.
Richards will also serve a 3-year term of supervised release, to begin after her release from jail.
This case was investigated by the United States Marshals Service and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Two North Texas men sentenced for roles in a $6.4 million diamond investment fraud schemeRead the Press Release
DALLAS — Craig Allen Otteson, 65, of McKinney, Texas, and Jay Bruce Heimburger, 59, of Dallas, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and were sentenced for their roles in a diamond investment scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Otteson and Heimburger both pleaded guilty in July 2017 to one count of mail fraud. Judge Fitzwater sentenced Otteson to 121 months in federal prison and ordered him to pay $4,704,784 in restitution. Heimburger was sentenced to 97 months in federal prison and ordered him to pay $4,707,794 in restitution.
Co-defendant Christopher Arnold Jiongo, 57, of Houston, pleaded guilty to his role in the scheme and is scheduled to be sentenced on November 21, 2017.
According to documents filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas. Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond. Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas. JBH Securities was primarily involved in the business of providing investment advice. Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market. On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.
The indictment charged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds. As part of their original business plan, Jiongo, Otteson and Heimburger represented to American Safe Retirements (ASR) that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond. Jiongo, Otteson and Heimburger all understood that ASR would instruct ASR sales agents to represent to investors that every dollar invested through the diamond notes would always be fully secured by the cash and diamond inventory of Worldwide Diamond.
The indictment also alleged that sometime in the summer of 2011, Jiongo, Otteson and Heimburger all realized that their original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors. Rather than inform ASR and the investors of the changed circumstances caused by their failed business plan, Jiongo, Otteson and Heimburger chose to deceive ASR when they failed to inform ASR that 100% of all investment funds would not be secured by cash and/or the diamond inventory of Worldwide Diamond. By deceiving ASR, Jiongo, Otteson and Heimburger knew that they were also causing the investors to be deceived about the use of investor funds.
According to the plea documents signed by Otteson, during the period from February 2012 through March 2013, Otteson and Heimburger engaged in a scheme to defraud investors, and to obtain money and property from these investors by false and fraudulent pretenses, representations, and promises. In plea papers filed with the court, Otteson admitted that he and Heimburger engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds. Otteson also admitted that as part of the scheme to defraud investors, Otteson and Heimburger caused their sales agent to fraudulently sell promissory notes valued at $1,280,000 to 23 new clients in California.
The indictment alleged that during the period from 2011 through 2013, Otteson, Heimburger, and Jiongo caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors. During the sentencing hearing, witnesses testified that in June 2011 Otteson and Heimburger caused letters to be sent to the Texas State Securities Board and to ASR which contained false statements.
This case is one of many felony indictments of bankruptcy-related crimes prosecuted as part of the Bankruptcy Fraud Initiative (BFI), United States Attorney’s Office, Northern District of Texas. These prosecutions were the result of criminal referrals made by the United States Trustee’s Office in Dallas, Texas. Since 2013, as a result of the BFI, 23 defendants have been convicted and 2 defendants are pending trial.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Two Executives Plead Guilty to Role in Foreign Bribery SchemeRead the Press Release
HOUSTON – Two former executives at a Dutch oil and gas services company, Anthony “Tony” Mace and Robert Zubiate, pleaded guilty this week to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) for their roles in a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Mace, 65, of the United Kingdom, was the Oil Services Company’s CEO from 2008 to 2011 and a former board member of one of its wholly-owned Houston subsidiaries. Zubiate, 66, of California, was a former Texas and California-based sales and marketing executive at the same subsidiary.
U.S. District Judge David Hittner of the Southern District of Texas accepted Mace’s guilty plea on Nov. 9 and Zubiate’s guilty plea on Nov. 6. Sentencing for Mace is scheduled for Feb. 2, and Zubiate for Jan. 31, 2018.
As part of his guilty plea, Mace admitted that prior to becoming CEO, other employees of the Oil Services Company entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras), Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol) and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace further admitted he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
Mace admitted he maintained a spreadsheet reflecting payments to five individuals. Even though he was aware there was a high risk those individuals were Equatorial Guinean officials or persons receiving money on behalf or at the direction of those officials, he nevertheless authorized Oil Services Company to make more than $16 million in payments to those individuals. Mace further admitted he continued a practice that was instituted before he became CEO by splitting payments to Oil Services Company’s Brazilian intermediary - paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace admitted he deliberately avoided learning that the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials.
As part of his plea, Zubiate’s admitted that between 1996 and 2012, he and his co-conspirators used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting the Oil Services Company and its U.S. subsidiary with winning bids. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for the Oil Services Company and its U.S. subsidiary.
ICE-HSI investigated the case. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case along with Trial Attorney Dennis R. Kihm and Assistant Chief Tarek Helou of the Criminal Division’s Fraud Section. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands’ Openbaar Ministerie and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Two Executives Plead Guilty to Role in Foreign Bribery SchemeRead the Press Release
Two former executives at a Dutch oil and gas services company (the “Oil Services Company”), Anthony “Tony” Mace and Robert Zubiate, pleaded guilty this week to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) for their roles in a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Mace, 65, of the United Kingdom, was the Oil Services Company’s CEO from 2008 to 2011, and a former board member of one of its wholly-owned Houston subsidiaries. Zubiate, 66, of California, was a former Texas and California-based sales and marketing executive at the same subsidiary.
U.S. District Judge David Hittner of the Southern District of Texas accepted Mace’s guilty plea on Nov. 9 and Zubiate’s guilty plea on Nov. 6. Sentencing for Mace is scheduled for Feb. 2, 2018, and Zubiate for Jan. 31, 2018.
As part of his guilty plea, Mace admitted that prior to becoming CEO, other employees of the Oil Services Company entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras), Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol) and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace further admitted that he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
Mace admitted that he maintained a spreadsheet reflecting payments to five individuals and that even though he was aware there was a high risk those individuals were Equatorial Guinean officials or persons receiving money on behalf or at the direction of those officials, he nevertheless authorized Oil Services Company to make over $16 million in payments to those individuals. Mace further admitted that he continued a practice that was instituted before he became CEO by splitting payments to Oil Services Company’s Brazilian intermediary, that is, paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace admitted that he deliberately avoided learning that the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials.
As part of his plea, Zubiate’s admitted that between 1996 and 2012, he and his co-conspirators used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting the Oil Services Company and its U.S. subsidiary with winning bids. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for the Oil Services Company and its U.S. subsidiary.
ICE-HSI investigated the case. Trial Attorney Dennis R. Kihm and Assistant Chief Tarek Helou of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands’ Openbaar Ministerie and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Transportation Recruiter Charged with Defrauding Employers out of Half Million DollarsRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged John E. Kelly, 62, of Columbus, with defrauding two employers out of approximately half a million dollars in an indictment returned here last week that was unsealed today.
Kelly was arrested yesterday in North Carolina by federal agents and will be transported to Columbus for future court proceedings.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Angela L. Byers, Federal Bureau of Investigation (FBI), Cincinnati Division and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the charges.
The indictment alleges that Kelly created and maintained a pair of sham business entities for the purpose of billing fake advertising invoices.
Beginning in February 2014, Kelly was employed as the Director of Driver Recruiting for CEVA Logistics, a supply chain company headquartered in Houston, Texas. The next year, he was employed in a similar role as Director of Fleet Recruitment for Container Port Group, Inc., headquartered in Cleveland. In both roles, Kelly was able to set up new advertising vendors for payment through his direct-report employees.
While employed at CEVA, Kelly allegedly had an employee add one of his fake businesses as an approved advertising vendor in CEVA’s accounting system. Kelly also allegedly created a fictitious alias – “Jess” – on behalf of the bogus advertising business.
“The indictment alleges that Kelly sent fraudulent advertising invoices from Jess’s email address to his own CEVA email address for advertising that did not exist,” U.S. Attorney Glassman said. “He’d then have CEVA mail the payment checks to a mailbox he established at a Pak Mail Store in Lewis Center.”
In total, Kelly allegedly created and submitted roughly 65 fraudulent advertising invoices to CEVA, tallying nearly $488,000.
Once employed at Container Port Group, it is alleged that Kelly continued the scheme by having an employee add a second sham business venture as an approved advertising vendor in the company’s accounting system.
He allegedly created a second alias – “Linda Rowe” – to communicate with himself and create fictitious advertising invoices.
Kelly allegedly created 13 false invoices through the scheme at Container Port Group and billed the business approximately $35,500. According to the indictment, he instructed his house cleaner to establish a pair of mailboxes on behalf of the second sham business at a UPS store in Delaware, Ohio.
Kelly also allegedly attempted to conceal his true and accurate income from the IRS in calendar years 2014 and 2015. It is calculated that Kelly owes more than $155,000 in taxes.
Kelly is charged with eight counts of mail fraud, eight counts of money laundering and two counts of tax evasion. Mail fraud is a crime punishable by up to 20 years in prison; money laundering carries a potential maximum sentence of 10 years in prison and tax evasion is a crime punishable by up to five years in prison.
“John Kelly held very important positions in businesses that placed their trust in him, and he allegedly abused their trust by creating fake business and lining his own pockets with stolen advertising dollars,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation, the FBI and USPIS, as well as Assistant United States Attorney Noah Litton, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Three Luzerne County Residents Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Roberto Torner, age 44 and Liza Robles, age 33, both of Freeland, Pennsylvania, and David Alzugaray-Lugones, age 48, of Weatherly, Pennsylvania, were charged on November 7, 2017, by a federal grand jury with various drug trafficking and firearms offenses in Luzerne County.
According to United States Attorney Bruce D. Brandler, Torner, Robles and Lugones-Alzugaray conspired to distribute heroin from June 2, 2015 to June 8, 2015, in Luzerne County. All three individuals also were charged with distributing heroin on June 8, 2015.
Torner and Robles were charged with conspiring, from May 12, 2012 to August 28, 2017, to provide firearms and ammunition to a convicted felon and to possess firearms and ammunition as a convicted felon. The indictment alleges that Robles purchased six firearms from various federal firearms licensees and other unnamed individuals, including two assault rifles, and provided them to Torner, a convicted felon prohibited from purchasing firearms. The indictment also alleges that Torner purchased a shotgun from an unnamed individual.
Robles also was charged with providing firearms and ammunition to Torner, despite knowing of his status as a felon. Torner also was charged with being a felon in possession of firearms and ammunition. Alzugaray-Lugones also was charged with being an illegal alien in possession of a firearm and ammunition.
The indictment seeks forfeiture of $4,000, over 1,500 rounds of ammunition, and various firearms seized during the investigation. The firearms are:
- Magnum Research 1911U .45acp;
- Hi-Point JHP .45acp;
- Stag Arms STAG-15, .223 cal. (a semiautomatic firearm that is capable of accepting a large capacity magazine);
- Mossberg 500 12-gauge shotgun; and
- Norinco MAC90 (a semiautomatic firearm that is capable of accepting a large capacity magazine); and a
- Tikka T3, 30.06 rifle.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
The case also 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 penalties under federal law for the most serious narcotics charges are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalties under federal law for the most serious firearms charges are 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Indicted for Health Care Fraud at Houston ClinicRead the Press Release
HOUSTON – Two Houston clinic owners are expected in federal court following the return of a 27-count indictment alleging a conspiracy to commit wire fraud, kickbacks and money laundering, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Scott Pierce of the U.S. Postal Service (USPS) Office of Inspector General (OIG) - Contract Fraud Investigations Division and Special Agent in Charge Steven Grell of the U.S. Department of Labor (DOL)-OIG.
A grand jury returned the indictment Nov. 2, 2017, against Anukul Dass aka Andy Dass, 41, and his sister Anurag Dass aka Anna Dass, 46, both of Houston, along with Stephen Vincent Hunt, 67, formerly of Houston and now of Waxahachie. The Dass siblings are expected to make their appearances before U.S. Magistrate Nancy Johnson today at 10:00 a.m. Hunt turned himself in and made his initial appearance earlier this week.
Anukul and Anurag Dass operated A&A Pain and Wellness Center Inc. at 6600 Harwin Drive in Southwest Houston. From 2010 to 2017, the indictment alleges they filed false claims the Office of Worker Compensation Programs (OWCP) for patients that Hunt directed to the clinic. Hunt was allegedly a former injured employee with the U.S. Postal Service (USPS) who filed his own injury claim with OWCP.
The Dass siblings allegedly conspired with Hunt for him to direct injured federal workers to A&A Pain and Wellness Center for medical treatment and health care services. In return, the indictment alleges Hunt would receive a fee as payment from the center for each claim OWCP paid. Hunt also allegedly charged injured federal workers he referred a fee for his representation and services through a company he controlled under the name “Zentec.”
Anna Dass was the manager of Clinical Operations at A&A, while Anukul Dass was the director, according to the indictment. Anna Dass allegedly filed false claims for services which were not performed or were “upcoded” and billed at a higher rate than services actually performed. From 2010 to 2017, A&A billed OWCP for more than $9.1 million. OWCP allegedly paid $7.2 million for those claims according to the allegations.
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team for both protecting patient safety and overall program costs,” said Pierce. “Along with our law enforcement partners, the USPS-OIG will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service.”
“An important mission of DOL-OIG is to investigate allegations of medical provider fraud in the OWCP,” said Grell. “We will continue to work with our law enforcement partners to investigate these types of allegations.”
If convicted of the conspiracy or the kickback allegations, each faces a penalty of up to five years in prison. The wire fraud carries a possible 20-year maximum sentence, while a conviction for money laundering could result in as much as 10 years imprisonment. All of the charges also carry a possible fine of $250,000.
USPS-OIG and DOL-OIG conducted the investigation. Assistant U.S. Attorney Cedric L. Joubert is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Three Austinites Plead Guilty to Federal Fraud and Tax ChargesRead the Press Release
Three Austinites face federal prison terms and millions in restitution after pleading guilty to defrauding Dell, Inc. and the Internal Revenue Service announced United States Attorney Richard Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio, and IRS-Criminal Investigation Special Agent in Charge William Cotter, San Antonio.
Appearing before U.S. Magistrate Judge Andrew Austin this morning, 50-year-old Kelly Burton Nunn pleaded guilty to one count of conspiracy to commit wire fraud and one count of subscribing a false Income Tax Return. Yesterday afternoon, Kelly’s wife, 47-year-old Tobie R. Nunn, pleaded guilty to the tax charge and a third defendant in this case, 55-year-old Bryan Dale Wallace, pleaded guilty to the conspiracy charge. The conspiracy charge calls for up to five years in federal prison; the tax charge, up to three years in federal prison. The defendants are also subject to a yet-to-be determined amount of restitution in this case. Sentencing, before U.S. District Judge Sparks, has yet to be scheduled.
According to court records, Kelly Nunn and Bryan Wallace conspired from January 2007 to August 2012 to defraud Nunn’s employer, Dell, Inc. (Dell), by charging Dell for services Dell did not receive or excessive amounts for services that Dell did receive. Nunn and Wallace submitted numerous fraudulent invoices under the business name of Bison Services (Bison) for computer-aided-design services related to management of Dell’s business locations. The defendants admitted that they caused Dell to pay Wallace millions of dollars to which Wallace was not entitled. Wallace subsequently paid over $1 million to Nunn during the course of their scheme.
By pleading guilty, Kelly and Tobie Nunn admitted that in April 2011, they intentionally filed electronically a fraudulent 2010 Individual Income Tax Return with the IRS that substantially understated their actual income.
FBI agents and IRS-Criminal Investigation agents investigated this case. Assistant United States Attorney Alan Buie is prosecuting this case on behalf of the Government.
Thirteen Indicted in Methamphetamine Drug Trafficking RingRead the Press Release
TULSA, Okla.—Today, United States Attorney R. Trent Shores announced that a grand jury handed down an indictment against thirteen defendants, charging them with Conspiracy to Possess with the Intent to Distribute Methamphetamine, Distribution of Methamphetamine and Unlawful Use of a Communication Facility. The defendants charged are Keni Patricio Garcia-Soberanis, a/k/a “Danny”, Antonio Soberanis-Garcia, a/k/a “Carlos Garcia”, Jose Angel Garcia, a/k/a “Chino”, Jose Acosta-Soberanis, Madeline Pearl Lavalley a/k/a “Maddie”, Latasha Jo Thompson, Deborah Renee Burns a/k/a “Debbie Burns”, Baley Lynn Enloe a/k/a “Bailey Enloe”, Deborah Renee Enloe, Clayton Lambert, Nickolas Allen Lollis, Justin Daniel Jordan, and James Christopher Martin, a/k/a “Too Tall”.
The indictment alleges the drug conspiracy began in December 2015 and continued through September 2017. According to the indictment, Keni Garcia-Soberanis was a source of supply for methamphetamine distributed by multiple mid-level and street level dealers. Soberanis relied on Thompson, Lavalley, Jose Angel Garcia, and Antonio Soberanis-Garcia who, on numerous occasions, delivered distribution amounts of methamphetamine to Burns, Baley Enloe, Deborah Enloe, Lambert, Lollis, Jordan, and Martin. The indictment further alleges that Keni Garcia-Soberanis, Antonio Soberanis-Garcia and Jose Acosta-Soberanis stored bulk quantities of methamphetamine and drug proceeds at two different locations.
At this time, Keni Patricio Garcia-Soberanis, Antonio Soberanis-Garcia, Jose Angel Garcia, Jose Acosta-Soberanis, Madeline Pearl Lavalley, and Deborah Renee Enloe remain at-large.
“The United States Attorney’s Office continues to work with the Tulsa Police Department and FBI to keep methamphetamine out of our community. We want to reduce its availability, drive up its price, and reduce its purity and addictiveness.” USA Shores said. “Drug traffickers who peddle their wares in the Northern District of Oklahoma should be on notice that they will be prosecuted in a federal court of law.”
Tulsa Police Chief Chuck Jordan commented upon the partnership between federal and local authorities and stated, “Investigations and prosecutions such as these would not be possible without the strong partnership between the Tulsa Police Department and the United States Attorney’s Office. We appreciate the opportunity to be able to collaborate with them on this investigation.”
The Indictment is part of Operation “Cloverfield,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. The Federal Bureau of Investigation (FBI) and Tulsa Police Department (TPD) conducted the joint investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Task Force Officers assigned to the FBI-Safe Streets Task Force. Assistant United States Attorney Joel-lyn A. McCormick is prosecuting the case.
The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Ted L. McBride Receives Lifetime Achievement AwardRead the Press Release
Longtime federal prosecutor, Ted L. McBride, was awarded the Lifetime Achievement Award by the South Dakota State’s Attorneys Association, at an event in Sioux Falls on Wednesday evening, November 8, 2017. Presenting the award to McBride was former colleague, and current Pennington County State’s Attorney, Mark Vargo. This is only the second Lifetime Achievement Award ever bestowed by the association.
McBride, an Assistant U.S. Attorney for the District of South Dakota, has also announced his retirement as of November 11, 2017, following a storied career in federal service that spanned almost 28 years. McBride’s tenure with the U.S. Attorney’s office included two stints as Interim U.S. Attorney, as well as First Assistant U.S. Attorney. In 1998, he was honored with the Director’s Award for Superior Performance from the Executive Office for U.S. Attorneys.
“Ted McBride is the epitome of a tried-and-true federal prosecutor. His courtroom presence was unequaled and his prosecutorial skills were envied by many,” said U.S. Attorney Randolph J. Seiler. “Ted has run the gamut on the cases he masterfully handled, from homicides, sexual assaults, and burglaries, to corruption, fraud, and drug cases. It has been my honor and privilege to work alongside Ted for the better of two decades. He cared and he fought, and he made a difference in the lives of many. There will never be another Ted McBride.”
“This award is a recognition of a career marked by zealous advocacy on behalf of victims and the community at large. It is the unique role of the U.S. Attorney’s Office in South Dakota that the prosecutors in that office, unlike most federal prosecutors, are active with the same kinds of violent crimes that we deal with in state court,” said Vargo. “And we recognize in him a kindred spirit, one who stands at the top of our profession. There are generations of both federal and state prosecutors who Ted helped recruit, train, and lead. As he leaves the USAO, we wanted to make public our appreciation for all that he has done.”
The South Dakota State’s Attorneys’ Association has, since 2002, given out several different awards, including Prosecutor of the Year, the Distinguished Service Award and a Lifetime Achievement Award.
The presentation took place during the Law Enforcement Appreciation and Children's Charity Dinner.
Tampa Man Pleads Guilty to Firearms ChargeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Javis D. Wilson (39, Tampa) has pleaded guilty to possessing a firearm as a convicted felon. He faces up to life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 2016, Wilson sold undercover agents cocaine, ammunition, and several firearms, including a 30-06 caliber rifle, a .25 caliber handgun, and a .40 caliber handgun. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Murray.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Stockton Man Sentenced to 3 Years in Prison for His Participatin in a Large-Scale Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Arthur Change Menefee, 46, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years in prison and ordered to pay over $5 million in restitution, United States Attorney Phillip A. Talbert announced.
According to court documents, Menefee was a licensed real estate agent who aided unqualified buyers in obtaining loans to purchase properties. Some of the properties were sold by co‑defendant Aleksandr Kovalev, who offered kickbacks to the buyers that were not disclosed to the lenders. Menefee assisted the buyers in preparing loan applications that included false information, and used fictitious companies he created to generate false information about the buyers’ employment and income to support the fraudulent loan applications. At least 23 properties were involved in Menefee’s mortgage fraud scheme, with substantial losses to the lenders.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
To date, co-defendants Aleksandr Kovalev, Jannice Riddick, Florence Francisco, Adil Qayyum, Elsie Pamela Fuller, and Leona Yeargin have pleaded guilty and been sentenced. Two other defendants, Valeriy Vasilevitsky, charged in United States v. Vasilevitsky, 2:12-cr-344 KJM, and Ruth Willis, charged in United States v. Willis, 2:13-cr-00228 MCE, have also pleaded guilty and been sentenced with respect to their involvement in the scheme.
South Bend Man IndictedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced the return of a four-count indictment charging Cordero Love, age 25, of South Bend, Indiana with 3 counts of Hobbs Act Robbery and 1 count of using a firearm during a crime of violence.
According to documents in this case, it is alleged that Love committed 3 robberies in the South Bend/Mishawaka area. The three robberies are outline below:
- August 13, 2017 a Gas Station in South Bend was robbed by means of actual or threatened force, violence and fear of injury
- On October 1, 2017 a Gas Station in Mishawaka was robbed by means of actual or threatened force, violence and fear of injury.
- On October 3, 2017, a Gas Station in Mishawaka was robbed during which Love allegedly brandished a firearm.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the South Bend Police Department. The case is being handled by Assistant U.S. Attorney Joel Gabrielse.
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Sioux Falls Man Charged with Bank Robbery Appears in Federal CourtRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for bank robbery.
Cody Maynard, age 27, was indicted on August 16, 2017. He appeared before Veronica L. Duffy on November 8, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Maynard entered the Voyage Federal Credit Union in Sioux Falls, South Dakota, on April 27, 2017, and demanded money from the teller.
The charge is merely an accusation and Maynard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Maynard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Simpson Man Charged with Armed Bank RobberyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John C. Ryall, age 38, of Simpson, Pennsylvania, was indicted on November 7, 2017, by a federal grand jury and charged with armed bank robbery.
According to United States Attorney Bruce D. Brandler, Ryall robbed the Honesdale National Bank in Scott Township, Pennsylvania, on October 20, 2017. Ryall obtained $5,255, but was restrained by a bank customer, and taken into custody by the Scott Township Police Department shortly thereafter. Ryall brandished a CO2 BB-gun during the robbery.
The matter was investigated by the Federal Bureau of Investigation and by the Scott Township Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the charge is 25 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sex Offender Sentenced for Failing to Register in MassachusettsRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for failing to register as a sex offender.
Charles Towers, 52, was sentenced by U.S. District Court Judge Leo T. Sorokin to two years in prison and five years of supervised release.
Towers is required to register as a sex offender based on a 2009 conviction in San Diego Superior Court of attempted forcible oral copulation. He was sentenced to 18 months in prison and ordered to register as a sex offender for life.
After serving his sentence, Towers registered as a sex offender in California. In April 2014, Towers moved from San Diego to Brockton and failed to both notify the San Diego Police Department’s Sex Offender Unit of his change of address and to register as a sex offender with the Massachusetts Sex Offender Registry Board, as he was legally required to do.
Acting United States Attorney William D. Weinreb and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Sentencings for November 3 - November, 8 2017Read the Press Release
McKleen Miranda-Bencomo, 28, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 8, 2017, for distribution of methamphetamine and aiding and abetting. Miranda-Bencomo was arrested in Gillette, Wyoming. He received eight months of imprisonment, to be followed by two years of supervised release, and was ordered to pay $400.00 in restitution and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Carroll Thomas Manning, Jr., 40, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 7, 2017, for being a felon and unlawful user of a controlled substance in possession of a firearm. Manning was arrested in Casper, Wyoming. He received 78 months imprisonment, to be served consecutive to his state sentence. Upon release from custody, Manning will be on supervised release for three years, and he was ordered to pay a $100.00 special assessment. This case was investigated by the Casper Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
John Edward Hatch, 24, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 7, 2017, for conspiracy to distribute methamphetamine and for carrying a firearm during and in relation to a drug trafficking crime. Hatch was arrested in Casper, Wyoming. He received 113 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $500.00 in restitution and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Glenn William Getter, 40, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute methamphetamine. Getter was arrested in Casper, Wyoming. He received 60 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Matthew Aaron Cook, 52, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute methamphetamine. Getter was arrested in Casper, Wyoming. He received 36 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Vincent Lee Greenough, 48, of Buffalo, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute methamphetamine. Greenough was arrested in Sheridan, Wyoming. He received 36 months of imprisonment, to be followed by two years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Tony Vincent Apodaca, 53, of Wheat Ridge, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Apodaca was arrested in Wheat Ridge, Colorado. He received 87 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Ivan Thomas Gorzalka, 44, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2017, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Gorzalka was arrested in Sheridan, Wyoming. He received 87 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Rosebud Man Sentenced for Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on November 6, 2017, by U.S. District Judge Roberto A. Lange.
Conroy Chasing In Timber, age 35, was sentenced to time served in custody until December 1, 2017 (approximately 9 months), 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Chasing In Timber was indicted by a federal grand jury on February 15, 2017. He pled guilty on August 15, 2017.
The conviction stemmed from an incident that occurred on December 24, 2016. On that date, Chasing In Timber was arrested for disorderly conduct and transported to the Rosebud Adult Correctional Facility near Rosebud. As he was completing the booking process, Chasing Timber struck a corrections officer in the face with a closed fist.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Chasing In Timber was immediately turned over to the custody of the U.S. Marshals Service.
Roanoke Man Pleads Guilty to Child Pornography ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who investigators with the Southern Virginia Internet Crimes Against Children (ICAC) task force identified as someone who received at least 144 files containing child pornography, pleaded guilty today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Richard B. Morgan, 67, waived his right to be indicted and pleaded guilty today to an Information charging him with one count of receipt of child pornography. A sentencing hearing has been scheduled for February 16, 2018 at 9:30 a.m.
According to information presented at today’s guilty plea hearing by Assistant United States Attorney Charlene R. Day, In June 2015, an investigator with the Southern Virginia ICAC identified the IP address attached to the home address of the defendant as one associated with an IP address downloading files containing child pornography. Investigators successfully downloaded images of child pornography from the defendant via peer-to-peer, file-sharing software often used by those who trade in child pornography.
A search warrant was obtained for Morgan’s home address. During the search, Morgan told officers, “I know why you are here.” Morgan admitted to officers that he downloaded child pornography and was the only person with access to the computer in his apartment. Morgan’s computer and an external hard drive were seized and forensically examined, revealing 1,849 images and 4,406 videos containing child pornography.
The investigation of the case was conducted by the Southern Virginia Internet Crimes Against Children Task Force, the Bedford County Sheriff’s Office and U.S. Customs Enforcement, Department of Homeland Security. Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Registered Sex Offender Sentenced to Ten Years in Prison for Possession of Images of Child RapeRead the Press Release
A registered sex offender with two prior convictions for child molestation was sentenced today in U.S. District Court in Seattle to ten years in prison and ten years of supervised release, announced U.S. Attorney Annette L. Hayes. DOUGLAS BLOUIN, 51, of Sedro Woolley, Washington came to the attention of law enforcement in 2016, when an agent with Homeland Security Investigations (HSI) used law-enforcement software to investigate individuals sharing child pornography over peer-to-peer file sharing networks. At the sentencing hearing, U.S. District Judge Thomas S. Zilly said BLOUIN has “gone to great lengths to view child pornography.”
According to records filed in the case, the HSI agent was working with the Seattle Internet Crimes Against Children Task Force (ICAC) when he downloaded multiple images and videos of child pornography being shared by a computer at an internet protocol address later traced to BLOUIN. A records check revealed that BLOUIN was a registered sex offender with convictions for two counts of child molestation in 1998 in Skamania County, Washington.
Law enforcement served a search warrant on BLOUIN’s home and seized a number of devices. BLOUIN told law enforcement that he used peer-to-peer software to download child pornography. BLOUIN also admitted that he used a specific ‘scrubbing’ software to remove evidence of the child pornography from his electronic devices. A forensic review of the devices found evidence of the scrubbing software, the file-sharing software, file names consistent with child pornography, and one image of child pornography.
BLOUIN pleaded guilty to possession of child pornography on August 8, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Registered Nurse Charged with Stealing Pain Medications Intended for Patients from Minneapolis HospitalRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the indictment of MATTHEW ALLEN AMUNDSON, 30, a registered nurse, for fraudulently obtaining hydromorphone, a prescription opioid pain medication. AMUNDSON, who is charged with one count of obtaining a controlled substance by fraud, made his initial appearance in U.S. District Court in Minneapolis, Minn. earlier today.
According to the indictment, from January 2015 through April 2015, AMUNDSON, while employed as a registered nurse at Abbott Northwestern Hospital in Minneapolis, Minn., fraudulently obtained possession of controlled substances, namely, hydromorphone, which was intended for hospital patients. While working in his capacity as a nurse, AMUNDSON accessed the hospital’s secured automated medication dispensing systems and used syringes to extract hydromorphone from vials intended for patient use. AMUNDSON subsequently injected the vials with saline solution to replace the missing hydromorphone before returning the vials to the medication dispensing systems.
This case is the result of an investigation conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Drug Enforcement Administration (DEA) Tactical Diversion Squad, which is comprised of agents, officers and deputies from the DEA, Federal Bureau of Investigation, Minneapolis Police Department, Plymouth Police Department, Washington County Sheriff’s Office, and the Minnesota Army National Guard.
Assistant U.S. Attorney Richard A. Newberry is prosecuting the case.
Defendant Information:
MATTHEW ALLEN AMUNDSON, 30
Northfield, Minn.
Charges:
- Obtaining a controlled substance by fraud, 1 count
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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ravenna man indicted for selling carfentanil, heroin, fentanyl and illegally having a firearmRead the Press Release
A Ravenna man was indicted for selling carfentanil, heroin, fentanyl and illegally having a firearm, said U.S. Attorney Justin E. Herdman.
A grand jury returned a six-count indictment charging Deangelo Frost, 28, with distributing narcotics and with being a felon in possession of a firearm.
Frost sold carfentanil and fentanyl on May 3, 2017. He sold synthetic cannabinoids in April 2017 and sold heroin on multiple dates in October 2015, according to the indictment.
Frost also possessed a Deutsche Werke, 7.65 mm pistol in October 2015 despite previous convictions for attempted witness intimidation and possession of cocaine, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Mahoning Valley Law Enforcement Task Force and the Portage County Drug Task Force. The matter is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Queens Man Charged with Conspiracy to Produce Child PornographyRead the Press Release
A criminal complaint was unsealed earlier today in federal court in Brooklyn, New York, charging Keith Liwanag with conspiracy to produce child pornography. Liwanag was arrested today and is scheduled to make his initial appearance this afternoon before United States Magistrate Judge Cheryl L. Pollak.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the charges.
“As alleged, the defendant victimized vulnerable children abroad by soliciting photographs and videos of their sexual abuse in exchange for money,” stated Acting United States Attorney Rohde. “The safety and protection of children is a priority for this Office and our law enforcement partners and we will pursue those who would endanger children to the fullest extent of the law.” Ms. Rohde extended her grateful appreciation to INTERPOL’s Crimes Against Children Unit for its investigative work and assistance in the investigation.
“This individual is alleged to have convinced women overseas to commit sexual acts with children in return for payment,” stated ICE-HSI Special Agent-in-Charge Melendez. “His version of a ‘show,’ among other criminal acts against children, allegedly included enticing a mother to sexually abuse her own son for his pleasure. We will be relentless in our pursuit of child predators to ensure they face justice for their unfathomable acts.”
According to the complaint, in September and October 2016, Liwanag used a Facebook account to direct women in the Philippines to engage in sexual acts with children in exchange for money, and to produce and send child pornography over Facebook’s private messaging service. On September 8, 2016, the defendant sent several messages to a woman asking her to sexually abuse a six-year-old boy as part of a “show” in exchange for money. On September 11, 2016, the defendant sent and received messages from another woman about a “show” with the woman’s son and offered her money to perform a sex act on him. On October 12, 2016, the defendant sent a message to a third woman soliciting photographs of the sexual abuse of her child. In response, on October 27, 2016, the woman sent the defendant two images depicting child abuse. As set forth in court filings, the evidence obtained during the course of the investigation includes 10 recorded video conferences between the defendant and women engaged in the sexual abuse of children.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Tanya Hajjar and Erin Reid are in charge of the prosecution.
The Defendant:
KEITH LIWANAG
Age: 26
Residence: Queens, New YorkPreviously Convicted Child Sex Offender from Albuquerque Sentenced to 25 Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE –David Abrisz, 56, of Albuquerque, N.M., was sentenced this afternoon in federal court to 25 years in federal prison followed by ten years of supervised release for his conviction on child pornography charges. Abrisz will be required to register as a sex offender after he completes his prison sentence. Abrisz also was ordered to pay $5,000 in restitution to the victims of his crimes.
Acting U.S. Attorney James D. Tierney and Bernalillo County Sheriff Manuel Gonzales, III, said that Abrisz, a previously convicted child sex offender, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“The exploitation of children on the Internet has no geographical or jurisdictional boundaries and requires that we share information and work as a team to protect our children,” said Acting U.S. Attorney James D. Tierney. “This case is an example of the law enforcement community’s commitment to identifying, locating and prosecuting predators who exploit children and undermine the normalization of child sexual abuse.”
“The Bernalillo County Sheriff’s Office is committed to collaborating with federal agencies to proactively investigate crimes against children,” said Bernalillo County Sheriff Manuel Gonzales, III. “As recent high profile events have shown us, adults who fantasize about sexual relations with kids can turn deadly. Let this serve as a warning to all those who seek out children as victims, we are dedicated to identifying anyone who preys on children and we will hold those who commit these repulsive crimes accountable.”
The Bernalillo County Sheriff’s Office arrested Abrisz in Aug. 2016, on an indictment charging him with one count of distributing child pornography and three counts of possessing child pornography. The indictment charged Abrisz with distributing child pornography from July 2013 through Dec. 2015, and possessing child pornography on two computers and a thumb drive from Aug. 2014 through Feb. 2016. Abrisz committed the crimes in Bernalillo County, N.M.
Abrisz pled guilty to the indictment on June 28, 2017. In entering the guilty plea, Abrisz admitted committing the following criminal acts: (i) distributing approximately 80 child pornography files between July 2013 and Dec. 2015; (ii) possessing a computer that contained approximately two video files and 880 image files of child pornography from Dec. 2014 through Feb. 2015; (iii) possessing a second computer that contained approximately 145 image files of child pornography from Dec. 2014 through Feb. 2015; and (iii) possessing a thumb drive that contained approximately 147 video files and one image file of child pornography from Aug. 2014 through Feb. 2015.
This case was investigated by the Bernalillo County Sheriff’s Office and the New Mexico Regional Computer Forensic Laboratory. Assistant U.S. Attorney Sarah Mease prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Child hood, please visit http://www.justice.gov/psc/.