Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 28 September 2017
Last Defendant Sentenced in Dallas-based Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — The last of 16 defendants charged and convicted in a methamphetamine distribution conspiracy that operated in the Dallas area has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Tommy Rodriguez, 36, of Dallas, was sentenced by Chief U.S. District Judge Barbara M.G. Lynn yesterday to serve 180 months in federal prison, following his guilty plea to one count of conspiracy to distribute a controlled substance.
“There is a high cost to choosing drug trafficking as an occupation,” said U.S. Attorney Parker. “The combined efforts of this office and our law enforcement partners will keep it that way.”
Other defendants charged and convicted in the case have been sentenced as follows:
Eduardo Zavala-Ruiz, aka “Gold Coins,” “Primo,” “Lalo,” “Lalin,” 240 months
Zachary Whiteside, aka “Sharkey,” “Shark,” “Zach,” 214 ½ months
Jose Mario Chavez-Bravo, aka “Rafael Lua-Maguna,” “Mickey,” 200 months
Nicole Leedy, aka “Nicky,” 188 months
Christopher Michael Eller, aka “Chris,” 135 months
Rafael Hurtado, aka “Rafi,” “Ralphie,” 135 months
Kyle Travis Kamp, 135 months
Manuel Eguia, aka “Twenty,” 108 months
Frank Allen Lonero, aka “Frankie,” 90 months
Richard Islas, aka “Gordo,” 87 months
Rene San-Miguel, 63 months
Monica Maldonado-Pena, 51 months
Albert Lee Longoria, 48 months
Francisco Millan-Madrid, 48 months
Kirstin Perviance, 48 months
Karla Julissa Jimenez, 21 months
One defendant remains a fugitive.
According to documents filed in the case, in 2014, the above-listed defendants conspired together and with others to distribute and possess with the intent to distribute methamphetamine and cocaine in the Dallas area.
The North Texas High Intensity Drug Trafficking Area (HIDTA) task force investigated the case. Assistant U.S. Attorney Phelesa Guy prosecuted.
# # #
Justice Department Sues Guam’s Government for Racial and National Origin Discrimination in Violation of the Fair Housing ActRead the Press Release
The U.S. Department of Justice today filed a lawsuit alleging that the Government of Guam, as well as the Chamorro Land Trust Commission and its Administrative Director, have violated the federal Fair Housing Act by discriminating against non-Chamorros in the enforcement and implementation of Guam’s Chamorro Land Trust Act. “Chamorro” is a term often used to refer to descendants of the indigenous people of Guam.
“The Fair Housing Act prohibits states and territories of the United States from discriminating because of race or national origin in the provision of housing and housing-related benefits and services,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “The complaint filed today seeks to ensure that any land program implemented by Guam complies with these principles and does not unlawfully limit the availability of housing opportunities based on a person’s race or national origin.”
Part of the Government of Guam, the Chamorro Land Trust Commission holds and administers approximately 20,000 acres, or 15% of Guam’s total land area. As part of its mission to administer this land, the Commission grants 99-year residential leases for one-acre tracts, at a cost of one dollar per year. Only “native Chamorros,” however, are eligible for these leases. Additionally, the Commission makes numerous housing-related benefits available exclusively to Chamorro lease holders, including below-market-rate loans. Among those harmed by this policy are non-Chamorro spouses of Chamorro beneficiaries. As alleged in the complaint, for example, one African-American man was evicted from the home he and his wife built on land administered by the trust after his wife, who was Chamorro, passed away.
Guam’s approximate demographics, based on Census 2010 data, are: Chamorro 37.3% (plus an additional 6.1% who identify as two or more races/ethnic origins including Chamorro); Filipino 26.3%; Native Hawaiian and non-Chamorro Pacific Islander 12.0%; non-Filipino Asian 5.9%; White 7.1%; and Black or African American 1.0%.
The complaint seeks a court order that would (1) declare that the Chamorro Land Trust Act and its implementing regulations are invalid to the extent that they require or permit any action that would be a discriminatory housing practice under the Fair Housing Act, (2) prohibit the defendants from discriminating on the basis of race and national origin in providing residential land leases and other real estate-related benefits under the Chamorro Land Trust Act, (3) award monetary damages for any persons harmed by the defendants’ discriminatory conduct, and (4) require the defendants to pay civil penalties. Any individuals who have information relevant to this case are encouraged to contact the Civil Rights Division at 1-800-896-7743, Option 8.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at www.hud.gov.
The case is being jointly handled by the Department’s Civil Rights Division and the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Justice Department Files Lawsuit Against Crop Production Services Alleging Discrimination Against U.S. WorkersRead the Press Release
The Justice Department announced today that it filed a lawsuit against Crop Production Services Inc. (Crop Production), headquartered in Loveland, Colorado, for allegedly discriminating against U.S. workers in violation of the Immigration and Nationality Act (INA).
The complaint alleges that in 2016, Crop Production discriminated against at least three United States citizens by refusing to employ them as seasonal technicians in El Campo, Texas, because Crop Production preferred to hire temporary foreign workers under the H-2A visa program. According to the department’s complaint, Crop Production imposed more burdensome requirements on U.S. citizens than it did on H-2A visa workers to discourage U.S. citizens from working at the facility. For instance, the complaint alleges that whereas U.S. citizens had to complete a background check and a drug test before being permitted to start work, H-2A workers were allowed to begin working without completing them and, in some cases, never completed them. The complaint also alleges that Crop Production refused to consider a limited-English proficient U.S. citizen for employment but hired H-2A workers who could not speak English. Ultimately, all of Crop Production’s 15 available seasonal technician jobs in 2016 went to H-2A workers instead of U.S. workers.
Under the INA, it is unlawful for employers to intentionally discriminate against U.S. workers because of their citizenship status or to otherwise favor the employment of temporary foreign workers over available, qualified U.S. workers. In addition, the H-2A visa program requires employers to recruit and hire available, qualified U.S. workers before hiring temporary foreign workers.
“In the spirit of President Trump’s Executive Order on Buy American and Hire American, the Department of Justice will not tolerate employers who discriminate against U.S. workers because of a desire to hire temporary foreign visa holders,” said Attorney General Jeff Sessions. “The Justice Department will enforce the Immigration and Nationality Act in order to protect U.S. workers as they are the very backbone of our communities and our economy. Where there is a job available, U.S. workers should have a chance at it before we bring in workers from abroad.”
The United States’ complaint seeks back pay on behalf of the workers, civil penalties, and other remedial relief to correct and prevent discrimination. The workers have also filed their own private suit, and are represented by Texas RioGrande Legal Aid. Both suits were filed in the Office of the Chief Administrative Hearing Officer, a specialized administrative court that Congress created to resolve such claims.
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
This case is part of the Division’s Protecting U.S. Workers Initiative, an initiative aimed at targeting, investigating, and bringing enforcement actions against companies that discriminate against U.S. workers in favor of foreign visa workers.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
James Derrick Robertson Pled Guilty to Receipt of Child Pornography ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that James Derrick Robertson, age 53, of Demopolis, Alabama pled guilty to a violation of 18 USC Section 2252A(a)(2), Receipt of Child Pornography, which carries a penalty of at least five years up to 20 years and Obstruction of Justice in violation of 18 USC Section1519, which carries a penalty of up to twenty years. Sentencing is set for December 20, 2017, before Judge Callie V. S. Granade.
This case was investigated by the Demopolis Police Department and the Federal Bureau of Investigation.
J.A. McDonald, Inc. and Owner Eric Boyden Pay $270,000 to Settle Allegations of False Claims Act Violations Arising from Bridge ConstructionRead the Press Release
The United States Attorney’s Office for the District of Vermont announced today that general contractor J.A. McDonald, Inc. (“JAM”), headquartered in Lyndon Center, Vermont, and JAM owner and president, Eric Boyden, have paid $270,000 to the United States to resolve allegations that JAM violated the federal False Claims Act, 31 U.S.C. § 3729, and the Vermont False Claims Act, 32 V.S.A. 631, by knowingly causing the State of Vermont to present false claims for payment to the United States in connection with the federally-funded construction of a two-span bridge on Vermont Route 116 in Bristol, Vermont.
More specifically, the settlement resolves allegations that JAM employees intentionally altered critical bridge components such that the bridge no longer conformed to specified safety standards, and that JAM employees took affirmative steps to conceal such alterations from the Vermont Agency of Transportation (“VTrans”). As a result of the alleged cover-up, VTrans unwittingly paid JAM for deficient bridge work and in turn presented a number of false claims to the Federal Highway Administration (“FHWA”) for the reimbursement of the federal share of amounts paid to JAM.
In cooperation with federal and state authorities, JAM has since replaced the allegedly-deficient bridge components at its own cost and under the supervision of VTrans inspectors. JAM has also terminated its employment of two employees who allegedly directed the foregoing scheme.
“As exemplified by this settlement, contractors who cut corners on taxpayer-funded projects will face serious consequences,” said Acting United States Attorney Eugenia A.P. Cowles. “We will not hesitate to aggressively pursue and hold accountable those who knowingly or recklessly bill the government for faulty goods or services, particularly where public safety is a concern.”
“This investigation demonstrates how to not conduct business on public infrastructure projects in the United States. The Office of Inspector General is committed to investigating fraudulent acts and the individuals who commit them,” said Todd Damiani, regional Special Agent-in-Charge of the United States Department of Transportation Office of Inspector General (“OIG”). “We encourage anyone who may have information about fraud affecting taxpayer dollars on public transportation projects to come forward and report it. The OIG is committed to working with our Federal, State and local law enforcement and prosecutorial partners to hold accountable those who engage in fraudulent activities.”
“The message is that we will work with our federal partners to uphold the integrity of the federal-aid highway construction program,” said Vermont Secretary of Transportation Joe Flynn. “Those who attempt to hide defective work will be held accountable. I am pleased that McDonald’s senior management cooperated with the investigation.”
Pursuant to the terms of the settlement agreement entered into by the United States, the State of Vermont, JAM, and Boyden, the settlement constitutes neither an admission of liability by JAM or Boyden nor a concession by the United States or the State of Vermont that the claims asserted are not well founded. The claims settled in this matter are allegations only; there has been no judicial determination of liability.
This matter was investigated by the United States Attorney’s Office for the District of Vermont and the OIG, with assistance from the FHWA, VTrans, and the Vermont Attorney General’s Office.
Assistant United States Attorney Ben Weathers-Lowin handled the matter on behalf of the United States. VTrans was represented by Vermont Assistant Attorney Generals John K. Dunleavy and Toni Hamburg Clithero, and JAM and Boyden were represented by John T. Sartore of the firm Paul Frank + Collins P.C.
International Cybercriminal Sentenced to 30 Months’ Imprisonment for “Grandparent Scams”Read the Press Release
Earlier today in federal court in Brooklyn, Hani Kabbara, a Canadian citizen, was sentenced by United States District Judge Margo K. Brodie to 30 months’ imprisonment for conspiracy to commit wire fraud. Kabbara was originally arrested and charged in August 2016, after traveling to the United States from Canada, and pleaded guilty in April 2017. In addition, as part of the sentence the court ordered Kabbara to pay $8,000 in restitution.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI).
“As part of an international cybercrime scheme, Kabbara and his co-conspirators deceived elderly victims in the United States by, for example, falsely claiming that a grandchild was in jail and needed money for bail,” stated Acting United States Attorney Rohde. “Today’s sentence sends the message that predators like Kabbara, even those who hide behind the anonymity of the internet and online monikers, will be brought to justice for their criminal acts.”
“Kabbara believed he was safe from U.S. laws in Canada and devised a series of schemes using social engineering and the services of other cybercriminals to rob innocent elderly victims out of hundreds of thousands of dollars,” stated FBI Assistant Director-in-Charge Sweeney. “Today’s sentencing shows that international cybercriminals are never beyond the reach of U.S. authorities who are engaged with their international law enforcement partners.”
“Today’s announcement highlights IRS Special Agents’ intense focus on the pursuit of identity thieves and cyber criminals,” stated IRS-Criminal Investigation Special Agent-in-Charge Robnett. “Kabbara took part in an elaborate scheme driven by greed and a blatant disregard for the damage inflicted on innocent victims. Rest assured that those involved in this criminal behavior will be held fully accountable.”
As alleged in the indictment and described in court filings, between February 2014 and August 2016, the defendant ran a sophisticated scheme that used social engineering and overseas call centers to steal from unsuspecting, elderly victims in the United States. Kabbara and his co-conspirators used various threats and deceit to demand payment from his victims, for example, telling them that a grandchild had been arrested and the victim needed to send money immediately in order for the grandchild to be released from jail. Kabbara and his co-conspirators demanded money in the form of MoneyPaks, which are vouchers that can be loaded with cash and then used to fund prepaid debit cards. The defendant sold the MoneyPaks in online criminal forums and, with his co-conspirators, transferred the funds onto prepaid debit cards, which themselves were obtained using stolen identities and were later cashed at ATM machines. The defendant and his network of co-conspirators communicated with each other anonymously in cyberspace through dark web forums and encrypted chat applications, then used a crew of “workers,” in the New York area to withdraw funds from the debit cards, consolidate the cash and send it back to the defendant in Canada.
In connection with his guilty plea, the defendant also admitted to attempting to participate in a massive tax refund fraud using stolen personally identifiable information of millions of victims, and to his participation in a 2011 global cyber heist in which he and his co-conspirators used hacked account information to drain ATMs around the world of more than $10 million.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorney Una A. Dean is in charge of the prosecution.
The Defendant:
HANI KABBARA
Age: 32
Nationality: Canadian
E.D.N.Y. Docket No. 16-CR-472 (MKB)
Indictment Charges California Man with Fentanyl Trafficking OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Bridgeport returned an indictment yesterday charging OMAR VILLARREAL, 26, of La Puente, California, with fentanyl trafficking offenses.
As alleged in court documents, on December 21, 2016, law enforcement officers stopped a tractor trailer in Route 34 in Derby. A search of the cab of the tractor trailer revealed a box that contained 25 kilograms of fentanyl. The driver of the vehicle, Erick Crespo-Escalante, was placed under arrest. The investigation revealed that Crespo-Escalante was delivering the shipment of fentanyl to a location in Waterbury.
It is alleged that VILLARREAL traveled to Connecticut from October to November 2016 and coordinated the transportation and delivery of the fentanyl shipment with Crespo-Escalante.
The indictment charges VILLARREAL with one count of conspiracy to possess with intent to distribute, and to distribute, a controlled substance, and one count of aiding and abetting the distribution of fentanyl. Both offenses carry a maximum term of imprisonment of 20 years. The indictment also charges VILLARREAL with one count of traveling in interstate commerce to promote an unlawful activity, and offense that carries a maximum term of imprisonment of five years.
VILLARREAL has been detained since his arrest on May 15, 2017.
On April 4, 2017, Crespo-Escalante pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, fentanyl. He awaits sentencing.
As to VILLARREAL, U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Holdenville Man Sentenced to 36 Months Probation for Delay or Destruction of MailRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MIKEL DWAYNE MEEK, age 48, of Holdenville, Oklahoma, was sentenced to 3 years 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 November 22, 2016 in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully secrete, destroy, detain and 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 Service Office of Inspector General.
The Honorable Ronald A. White, 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.
Heroin Dealer Admits to Federal Charges in Connection to the Overdose Death of a Farmers Branch WomanRead the Press Release
DALLAS — Nancy Pineda, 28, of Farmers Branch, Texas, appeared in federal court, this week, before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to her role in selling the heroin that caused a young woman’s overdose death at a McDonald’s restaurant in Farmers Branch in June 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Pineda pleaded guilty to one count of conspiracy to possess with the intent to distribute a controlled substance. Pineda has been in custody since the time of her arrest in October 2016. Sentencing is scheduled for January 11, 2018.
Three other men, charged in the same case, also appeared this week before U.S. Magistrate Judge Ramirez and U.S. Magistrate Judge Stickney and pleaded guilty to their roles in the trafficking of illegal narcotics. Rogelio Bernal, 20, and Steven Gomez, 19, both of Dallas, Texas, and Zakariah Michael Wolf, 29, of Greenville, Texas, each pleaded guilty to one count of conspiracy to possess with the intent to distribute a controlled substance. They will remain in custody pending sentencing, which is also set for January 11, 2018.
The defendants face a maximum penalty of not more than 20 years in prison and a fine up to $1,000,000.
According to the factual resume filed in Pineda’s case, in June 2016 Pineda sold user quantities of heroin out of a vehicle in the Dallas area. Specifically, on June 8, 2016, Pineda travelled by car to a restaurant in Dallas to sell $20 worth of heroin to co-defendant Anthony Jaramillo. Jaramillo then delivered the heroin to an individual identified as M.H. On that same day, M.H. died at a McDonalds restaurant in Farmers Branch, Texas, after injecting the heroin she purchased from Jaramillo.
According to factual resumes filed in the case, beginning in 2016 until March 9, 2017, Bernal, and Gomez conspired to distribute illegal narcotics to customers in the Dallas area, as well as others who would travel from other cities to obtain drugs from them, including Wolf. Wolf would purchase heroin from Bernal or Gomez, then distribute that heroin and other illegal narcotics in the Greenville, TX, area.
A search warrant executed on March 9, 2017 at the residence of Bernal and Gomez revealed a number of weapons, 490 grams crack cocaine, and 2,036 grams of methamphetamine.
The Farmers Branch Police Department, Greenville Police Department, and the Drug Enforcement Administration investigated the case with assistance from the Grand Prairie Police Department and Dallas Police Department. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Myria Boehm are prosecuting.
# # #
Henry Jeremy Lewis Sentenced Following Guilty Plea to a Federal Firearm ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Henry Jeremy Lewis of Mobile was sentenced to six months imprisonment. Lewis’ sentencing followed entry of a June 2017 guilty plea to a charge of prohibited person in possession of a firearm. Lewis was previously convicted of Possession of a Stolen Firearm in 2012 in the Circuit Court of Cook County, Illinois.
Lewis’ guilty plea included his admission that on December 28, 2016, he was observed riding his bicycle through the parking garage at the Social Security Administration. Lewis stopped near one of the stairways and removed a pistol from his jacket, then wrapped it in something and returned it to his jacket. The Security Officers then contacted 911 and requested that the Mobile Police Department respond. When Mobile Police Officers responded they saw Lewis at the corner of Dauphin Street and Bayou Street. As Officers approached, they ordered him to stop. After a brief foot chase and resistance, Officers restrained Lewis. As he was taken to the ground a Hi-Point, .380 caliber pistol, fell out of his jacket.
Possession of a firearm by a prohibited person, in this instance a convicted felon, is a violation of Title 18, United States Code Section 922(g)(1). Lewis’ imprisonment will be followed by a three (3) year term of supervised release.This case arose from an investigation by the Mobile Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Mobile Police Department and the Federal Protective Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Gorham Woman Sentenced to Three Months for Federal Program FraudRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Jamie Hussey, 35, of Gorham, Maine, was sentenced yesterday in U.S. District Court by Judge D. Brock Hornby to three months in prison and one year of supervised release for federal program fraud. She was also ordered to pay $92,877 in restitution.
Court records show that between February 2014 and September 2016, the defendant embezzled money from the South Portland Housing Authority (SPHA), an agency that that administers public housing units and that receives federal benefits each year under programs administered by the U.S. Department of Housing and Urban Development (“HUD”). While employed as the SPHA Resident Services Coordinator for the Family Self-Sufficiency Program (FSS), the defendant illegally caused 48 checks to be issued in the names of FSS program participants and deposited into her personal bank account.
The case was investigated by HUD-Office of the Inspector General and the South Portland Police Department.
Gangster Disciple Sentenced to 12 ½ Years for Selling Crack CocaineRead the Press Release
Jackson, TN – A Jackson man has been sentenced to 151 months in federal prison for distributing and possessing with intent to distribute crack cocaine. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, in January 2016, the Jackson Police Department Special Operations Division (Jackson Madison County Metro Narcotics and JPD Gang Enforcement Unit) and the Tennessee Bureau of Investigation, initiated an undercover investigation of 34-year-old Terrence Whiteside. The defendant, whose nickname is "Trouble," was a known member of the Gangster Disciples street gang.
Between January 2016 and February 2016, law enforcement did three controlled buys of cocaine base (crack) from Whiteside. They purchased a total of 29.45 grams of crack cocaine. On May 11, 2016, a search warrant was executed at a residence in Jackson, Tennessee. Officers also had an active arrest warrant for Whiteside at the time for the prior narcotic purchases. At the home, they found 6.9 grams of crack and 52.9 grams of marijuana. They also located Gangster Disciple documentation, including the gang’s by-laws. Officers seized four vehicles, three televisions, digital scales, 11 cell phones and $963 in cash. Whiteside was on parole for two prior state felony narcotic convictions at the time he was selling the crack and at the time of the search warrant.
While imposing the 151-month sentence, U.S. District Judge J. Daniel Breen also ordered Whiteside to serve a 3-year term of supervised release following his release from prison.
The case was investigated by Jackson Madison County Metro Narcotics Unit, Jackson Police Department Gang Enforcement Unit, and the Tennessee Bureau of Investigation.
Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
Former Oakland Resident Sentenced to 81 Months in Prison for Selling Methamphetamine and for Failing to Appear in CourtRead the Press Release
OAKLAND- Reine Fleur Silverlight was sentenced today to 81 months in prison for participating in a methamphetamine distribution scheme and for absconding during her federal court proceedings, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable Yvonne Gonzalez Rogers following Silverlight’s guilty pleas in which she admitted to committing the crimes.
On July 13, 2017, Silverlight, 44, formerly of Oakland, pleaded guilty to federal charges. According to the plea agreement, Silverlight admitted that between September 10, 2011, and November 5, 2011, she possessed 170.9 grams of 98.8% pure methamphetamine with the intent to distribute the drugs to others in exchange for cash, and she used a mobile telephone to facilitate the drug distribution. A federal grand jury indicted Silverlight on March 22, 2012, charging her with possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1).
Silverlight further admitted that after receiving pretrial release, she absconded and intentionally failed to appear for her court hearings. On July 6, 2017, Silverlight was charged in a Superseding Information with using a communications facility to facilitate narcotics trafficking, in violation of 21 U.S.C. § 843, and to failing to appear after pre-trial release from custody, in violation of 18 U.S.C. § 3146(a)(1). She was arrested on August 11, 2015, in Canton, Ohio, and has remained in state custody since then. Pursuant to her plea agreement, she pleaded guilty to both charges in the federal Superseding Information.
In addition to the prison term, Judge Gonzalez Rogers also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving the sentence immediately.
Assistant U.S. Attorney Michelle Bazu is prosecuting the case with the assistance of Julissa Rey and Noble Hughes. The prosecution is the result of an investigation by the DEA.
Former Investment Advisor Indicted for Fraud and PerjuryRead the Press Release
BOSTON – A former investment advisor was arrested today and charged with deceiving and manipulating his former clients concerning the management of their retirement savings as well as lying to the U.S. Securities and Exchange Commission (SEC).
Richard G. Cody, 43, of Jacksonville, Fla., was arrested today in Florida on an indictment out of the U.S. District Court in Boston charging him with one count of violating the Investment Advisors Act of 1940 and two counts of making a false declaration in a court proceeding. Cody is scheduled to appear in federal court in Boston on Oct. 12, 2017.
The indictment alleges that from May 2005 to August 2016, Cody acted as an investment advisor and managed the retirement savings of three victims, including two in Massachusetts. Cody falsely assured the victims that their retirement savings were secure, when in fact he knew they were not. Contrary to his fraudulent assurances, by 2014 the total value of their retirement savings had substantially diminished, and the retirement savings of two victims were entirely gone. In order to conceal these losses, Cody allegedly provided the victims with fraudulent account statements and tax documents. In addition, Cody failed to inform his victims that regulators had suspended him in 2013 from acting as investment advisor.
According to the indictment, Cody lied to the SEC during a March 2017 sworn deposition in connection with a civil enforcement action the SEC had filed against him in December 2016. Cody allegedly made false declarations regarding fraudulent documents that he denied giving to two victims of the scheme.
The charges of violating the Investment Advisors Act of 1940 and making a false declaration in a court proceeding each provide for a sentence of no greater than five years in prison, two years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office gratefully acknowledges the assistance of the U.S. Securities and Exchange Commission. Assistant U.S. Attorney Neil J. Gallagher Jr. of Weinreb’s Economic Crimes Unit is 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.
Former Harrisburg Police Corporal Admits Stealing Government FundsRead the Press Release
JOHNSTOWN, Pa. – A former Harrisburg Police official pleaded guilty in federal court in the Middle District of Pennsylvania to charges of conversion of government property and theft from programs receiving government funds, Acting United States Attorney Soo C. Song announced today.
Sean D. Cornick, 45, of Harrisburg, Pa., pleaded guilty to two counts before United States District Judge John E. Jones, III.
In connection with the guilty plea, the United States presented information to the Court that on October 23, 2016, Cornick took $400 in government funds that he was not authorized to receive. Additional information described that Cornick stole government funds totaling $22,346.93 between October 15, 2015 and October 27, 2016. The Court was advised that at the time of the offenses, Cornick served as the Corporal and supervisor of the Organized Crime and Vice Unit of the Harrisburg Police Department.
Judge Jones scheduled a Presentence Conference for January 29, 2018, at 10:45 a.m. The law provides for a maximum total sentence of 11 years in prison, a fine of $350,000 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 John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Harrisburg Police Department conducted the investigation that led to the prosecution of Cornick.
Former Chiropractor Sentenced to Federal Prison for Lengthy Tax Fraud Scheme After Being Arrested in Panama and Returned to the United StatesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that STEVEN F. ANGLE, age 61, of Baton Rouge, Louisiana, was sentenced yesterday by U.S. District Judge Shelly D. Dick to two years in federal prison for filing false tax returns and obstruction of the Internal Revenue laws. ANGLE was ordered to pay restitution in the amount of $129,000 and a fine of $50,000.
ANGLE owned and operated Chiropractic Nutrition Clinic located in Baton Rouge, Louisiana, for approximately 20 years. ANGLE provided chiropractic services to clients and was paid primarily by health insurance companies and law firms. From 2005 through 2009 and again from 2011 through 2013, ANGLE filed false federal income tax returns in which he reported no income or far less income than he actually earned. In 2011, for instance, ANGLE reported only $26 in total income. In 2012, he reported zero dollars in total income, although he actually earned at least $108,000 that year. Throughout all of the false tax returns, ANGLE consistently represented that he owed no taxes, and he filed fraudulent 1099-MISC forms that had been altered to reflect no income, when, in fact, ANGLE was earning substantial income from his business.
ANGLE was indicted by a federal grand jury in Baton Rouge, Louisiana, in June of 2016. By that time, ANGLE was living in Panama. In late 2016, ANGLE was arrested by Panamanian authorities and deported to Florida. In January of 2017, ANGLE made his initial appearance in the United States District Court for the Southern District of Florida, at which time he was remanded to the custody of the United States Marshals and ordered to be transferred to Baton Rouge to face the charges pending here.
Acting U.S. Attorney Amundson stated, “Tax fraud is a serious crime that deprives valuable government programs out of needed resources and hurts all honest taxpayers. We will continue to work closely with IRS-CI and the FBI to aggressively pursue those who would cheat our tax system.”
This investigation was handled by the Criminal Investigations Division of the Internal Revenue Service and the Federal Bureau of Investigation, with valuable assistance from the United States Marshals Service. This matter is being prosecuted by Assistant United States Attorneys J. Brady Casey and Rene Salomon.
Former Bemidji Assistant Principal Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the guilty plea of BRANDON MARK BJERKNES, 35, for coercion and enticement of a minor and production of child pornography. BJERKNES, who was charged and taken into custody on May 30, 2017, pleaded guilty today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn.
“Brandon Bjerknes repeatedly victimized vulnerable young girls and boys, many of whom he personally knew because of his former role as Assistant Principal of Bemidji Middle School,” said Assistant U.S. Attorney Angela Munoz-Kaphing. “Due to a vigilant parent who initially reported disturbing social media messages, and the dedicated efforts of the Beltrami County Sheriff’s Office and the Minnesota Bureau of Criminal Apprehension, Bjerknes’ predatory actions were stopped.”
“This disturbing case is an example of why investigators must continue to identify and bring to justice those who would prey on children, and why parents must keep a watchful eye for predators lurking online,” said BCA Superintendent Drew Evans.
“The Beltrami County Sheriff’s Office is very pleased to learn that Brandon M. Bjerknes has pleaded guilty to the two felony counts of coercion and enticement of a minor and production of child pornography. Our hope now is that the victims and their families can begin the process of healing and finding closure,” said Ernie Beitel, Chief Deputy Sheriff of the Beltrami County Sheriff’s Office.
According to the defendant’s guilty plea and documents filed in court, since 2006, BJERKNES was employed by the Bemidji Area Schools and, beginning in 2014, served as the Assistant Principal of Bemidji Middle School until his resignation in April 2017. While holding the position of Assistant Principal, BJERKNES posed as a 13-15-year-old male named “Brett Larson,” and used various social media profiles on Facebook and Snapchat with “decoy photographs” to contact minor females and males in middle and high school. Using the alias profiles, BJERKNES directed the minor victims to send him sexually explicit photographs. BJERKNES also used the alias profiles to engage in sexually explicit conversations with the minor victims. Some of the minor victims BJERKNES contacted on social media were students at Bemidji Middle School.
According to the defendant’s guilty plea and documents filed in court, on March 20, 2017, law enforcement executed a search warrant at BJERKNES’ Bemidji residence. Officers seized a number of electronic devices including BJERKNES’ personal iPhone and work iPhone, multiple iPads, computers and external hard drives. The social media accounts and the electronic devices contained multiple sexually explicit photos and videos of multiple known minor victims. Law enforcement identified evidence that BJERKNES used the alias social media accounts to contact more than 50 minor victims.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension and the Beltrami County Sheriff's Office.
This case is being prosecuted by Assistant United States Attorney Angela Munoz-Kaphing.
Defendant Information:
BRANDON MARK BJERKNES, 35
Bemidji, Minn.
Convicted:
- Coercion and enticement of a minor, 1 count
- Production of child pornography, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Bank Teller Pleads Guilty to Federal Charge for Stealing More Than $185,000 from Homeless CustomerRead the Press Release
WASHINGTON – A former bank teller pled guilty today to stealing more than $185,000 from a longtime customer of the bank, a homeless man, announced U.S. Attorney Jessie K. Liu and Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Phelon Davis, 29, of District Heights, Md., pled guilty in the U.S. District Court for the District of Columbia to interstate transportation of stolen property. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Davis faces a likely range of 18 to 30 months in prison and a potential fine. The plea agreement calls for Davis to pay $185,440 in restitution and an equal amount in a forfeiture money judgment. Davis will be sentenced at a later date by the Honorable Emmet G. Sullivan.
According to a statement of offense submitted at the plea hearing, Davis worked in 2014 as a teller at a national bank in Washington, D.C. One of the bank’s longtime customers, who was homeless and earned money as a street vendor, maintained more than one account with the bank. However, by October 2014, his accounts had gone dormant due to a lack of activity.
In October 2014, the customer attempted to deposit thousands of dollars into one of his accounts. Because he lacked identification and the accounts had gone into dormant status, Davis instructed the customer where to go to obtain identification documents and a Social Security card. In reviewing the customer’s accounts, Davis noticed that the customer had a surprisingly large balance. As a result, Davis devised a scheme to fraudulently obtain the customer’s money.
Later that month, Davis used the identification means of the customer to fraudulently open a new account in the customer’s name. He forged the customer’s signature on the application and had an ATM card issued for the newly opened account. Over the next two years, without the customer’s knowledge, Davis logged into the customer’s accounts online and transferred money between the accounts. All told, from approximately Oct. 22, 2014 through Oct. 26, 2016, Davis used ATMs on 144 occasions to withdraw $185,440 from the customer’s accounts. The customer, meanwhile, did not receive bank statements during this time, did not use e-mail, and did not have access to a computer.
Davis used the stolen money for his personal benefit, including funding a down payment on his residence, paying off personal debt, and paying for vacations in Jamaica, Aruba, the Dominican Republic, and Mexico.
In announcing the plea, U.S. Attorney Liu and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Shannon Alexis, Paralegal Specialist Jessica Mundi, and Assistant U.S. Attorney Kondi Kleinman, who is prosecuting the matter.
Former Bank President Indicted for Stealing from His Own BankRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On September 26, 2017, a federal grand jury indicted David Harris Lavine, age 58, of Rockville, Maryland, on charges of theft of bank funds by a bank officer and bank fraud and Lavine and Charles L. Tobias, age 56, Potomac, Maryland for conspiracy to defraud the Internal Revenue Service and tax evasion.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service-Criminal Investigation; Assistant Inspector General Gerald Maye of the Federal Reserve Board Office of Inspector General and Special Agent in Charge Michael McGill of the Social Security Administration, Office of Inspector General.
From March 2010 until January 2011, David Harris Lavine was the Acting President of CFG Community Bank. From January 2011 until August 2011, Lavine was president of the bank affiliate, Capital Financial Ventures, LLC. According to the indictment, Lavine, while acting President, diverted $100,000 of bank funds to his own benefit. The indictment also charges that while president of the bank affiliate, Lavine devised a scheme to defraud CFG Community Bank, a state member bank supervised by the Federal Reserve Board, through the re-finance of bank-owned mortgage loans and the diversion of loan proceeds to his personal benefit and the benefit of a friend.
According to court documents, Lavine used his position at Capital Financial Ventures to pose as the CEO/President of CFG Community Bank. For example, Lavine invited the borrowers of two loans with balances totaling over $7.5 million, to refinance those loans with other financial institutions for a lower mortgage and pay off CFG Community Bank. At Lavine's direction, the settlement company sent the mortgage loan payoff not to CFG Community Bank but to another company so that Lavine could divert in excess of $775,000. Lavine created false correspondence with the loan borrowers to provide to CFG Community Bank to conceal the diversion from CFG Community Bank.
According to the indictment, Lavine and Tobias owned Capital T Partners Brookfield, LLC, a Maryland limited liability corporation. In the fall 2011, Lavine and Tobias decided to realize a profit from a group of non-performing mortgages by fraudulently "donating" some of the mortgages to a charity as an in-kind donation and thereby receiving a valuable tax deduction for Capital T Partners Brookfield which would pass through to their personal income tax returns. Lavine is also charged with tax evasion for two years for failing to report the monies he received through the bank offenses and using the fraudulent charitable contribution as a deduction. Tobias is charged with tax evasion for failing to report income and also using the fraudulent charitable deduction.
The maximum possible penalties for the bank offenses are thirty years in prison and/or a $1 million fine per count and 5 years in prison and /or $250,000 per count for the tax charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the IRS, FBI, the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau and SSA-IG for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Joyce K. McDonald who is prosecuting the case.
Food Stamp Fraudsters Sentenced in Federal CourtRead the Press Release
United States Attorney Gregory A. Haanstad of the Eastern District of Wisconsin announced today that Milwaukee residents Kanwar Gill (age: 67) , Raviinder Gill (age: 27), and George Nance (age: 59) have been sentenced to terms of imprisonment for wire fraud based on a scheme to traffic benefits issued by the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, and by the Special Supplemental Nutrition Program for Women, Infants and Children (WIC). Kanwar Gill was sentenced to 15 months’ imprisonment, Raviinder Gill was sentenced to 20 months’ imprisonment, and George Nance was sentenced to 18 months’ imprisonment.
Between 2013 and 2015, the defendants operated a convenience store called Quick N EZ, located at 3076 N. 27th Street in Milwaukee. Quick N EZ was authorized to participate in the SNAP and WIC programs, pursuant to which Quick N EZ could exchange SNAP and WIC benefits for qualifying food items. Soon after it opened, however, Quick N EZ began exchanging SNAP and WIC benefits for cash. Kanwar Gill, Raviinder Gill, and George Nance each agreed to provide cash to benefit-recipients in exchange for roughly twice the amount in benefits. For example, the store would take $100 worth of benefits from a customer, the store would give the customer $50 in cash, and the store would then obtain the full $100 reimbursement for the benefits from the U.S. Government.
Quick N EZ far exceeded other stores of similar size in the Milwaukee County area in average redemptions of SNAP and WIC benefits. The United States Department of Agriculture’s Office of the Inspector General and Wisconsin’s Department of Health Services conducted undercover compliance buys at Quick N EZ, confirming that the store was exchanging SNAP and WIC benefits for cash. The United States Department of Agriculture calculated that between 2013 and 2015, Quick N EZ redeemed approximately $1,245,529.72 in SNAP and WIC benefits to which it was not entitled.
A grand jury indicted Kanwar Gill, Raviinder Gill, and George Nance on November 22, 2016, charging them with conspiracy to commit wire fraud, wire fraud, and SNAP fraud. All three defendants pleaded guilty. On September 6, 2017, the Honorable J.P. Stadtmueller sentenced Kanwar Gill to 15 months’ imprisonment. On September 7, 2017, Judge Stadtmueller sentenced George Nance to 18 months’ imprisonment. Finally, on September 27, 2017, Judge Stadtmueller sentenced Raviinder Gill to 20 months’ imprisonment. Kanwar and Raviinder Gill have also forfeited tens of thousands of dollars to the United States, and have been ordered to pay restitution in the amount of $1,245,529.72.
This case was investigated by the Office of the Inspector General for the U.S. Department of Agriculture, the Federal Bureau of Investigation, and the Wisconsin Department of Health Services. It was prosecuted by Assistant United States Attorney Rebecca Taibleson.
# # # # #
For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Fernandina Beach Man Sentenced to 15 Years in Federal Prison for Selling CocaineRead the Press Release
Jacksonville, Florida– U.S. District Judge Harvey Schlesinger today sentenced Wesley Eugene Parker (25, Fernandina Beach) to 15 years in federal prison for distributing cocaine. He pleaded guilty on May 22, 2017.
According to court documents, on December 28, 2016, and again on January 10, 2017, Parker sold powder cocaine to a confidential informant. The sales took place at Parker’s home in Fernandina Beach. On January 26, 2017, law enforcement officers executed a search warrant at that home and recovered firearms, ammunition, and illegal drugs, including marijuana and cocaine. This is Parker’s sixth adult conviction for selling cocaine.
On August 16, 2017, in a related case, Frank Malik Drummond (21, Fernandina Beach) was sentenced to 5 years’ imprisonment for possession of a firearm by a convicted felon and for distributing cocaine from the same location as Parker.
These cases were investigated by the Nassau County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. They are being prosecuted by Assistant United States Attorney Michael J. Coolican.
Felon from Raton Pleads Guilty to Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Mark William Elliot, 46, of Raton, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Elliot entered the guilty plea under a conditional plea agreement that permits him to withdraw his guilty plea if he is successful in challenging a court order denying his motion to suppress evidence seized from him when he was arrested, which included a firearm and ammunition.
Elliot was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition and possession of methamphetamine with intent to distribute on March 25, 2016, in Bernalillo County, N.M. According to the indictment, Elliot was prohibited from possessing firearms or ammunition because he previously had been convicted of five counts of receiving or transferring a stolen vehicle, tampering with evidence, forgery and shooting at an occupied building.
According to court documents, on March 25, 2016, Albuquerque Police Department (APD) officers found Elliot asleep on the sidewalk next to his motorcycle, which was illegally parked in the road next to a stop sign. After waking Elliot, the officers observed a bulge in Elliot’s right front pocket. When the officers realized there was a firearm in Elliot’s pocket, Elliot attempted to flee, ran into an APD officer, and was arrested. APD officers recovered a loaded firearm and ammunition, approximately 18 grams of methamphetamine and drug paraphernalia from Elliot’s jacket during a search incident to his arrest.
During today’s proceedings, Elliot pled guilty conditionally to Count 1 of the indictment charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Elliot admitted possessing a loaded firearm in his right front pocket during an interaction with APD officers on March 25, 2016. Elliot acknowledged that he was prohibited from possessing firearms or ammunition on March 25, 2016, because of his status as a convicted felon.
At sentencing, Elliot faces a maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Federal and State Law Enforcement Agencies Target Methamphetamine Traffickers and ProducersRead the Press Release
SYRACUSE, NEW YORK –Interstate methamphetamine traffickers and local producers face federal and state charges in a series of cases that resulted in the arrests of 31 people in September.
The announcement was made by Acting United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division, Postal Inspector in Charge Shelly Binkowski, New York State Police Superintendent George P. Beach II and Tioga County District Attorney Kirk Martin.
30 of the charged defendants are residents of Broome, Jefferson, Lewis, Oneida, Onondaga, Oswego, and Tioga Counties, and one defendant is a resident of Arizona.
“Whether produced locally or brought here from other states and countries, methamphetamine wreaks havoc on our communities. It destroys the health of those who use it, and its addicts often commit other crimes. Thanks to the outstanding cooperation among our local, state, and federal law enforcement partners, 31 people have been charged with peddling this poison and possessing pseudoephedrine knowing it would be used to make methamphetamine. We will continue to work together to arrest and convict those who traffic in this deadly drug,” said Acting U.S. Attorney Grant C. Jaquith.
DEA Special Agent in Charge James J. Hunt stated, “Recently, methamphetamine abuse has been overshadowed by opioid abuse in the press, but it is nonetheless just as deadly and addictive. DEA and our law enforcement partners are committed to increasing awareness of the dangers associated with methamphetamine use; and these investigations demonstrate our collective efforts to rid Upstate New York of methamphetamine and other dangerous drugs.”
Postal Inspector in Charge Shelly Binkowski stated, “The U.S. Postal Inspection Service and our law enforcement partners will continue to dedicate the resources necessary to keep methamphetamine producers and traffickers out of our communities. The arrest of these individuals demonstrates our commitment to keeping these and other highly addictive drugs from destroying lives.”
New York State Police Superintendent George P. Beach II said, “These arrests are a direct result of the combined efforts of Federal, state, and local law enforcement to rid New York of local and interstate methamphetamine heroin trafficking operations. This sends a strong message to drug dealers throughout the country that New York State will not tolerate drugs in its communities. These efforts will ultimately rid our communities of methamphetamine and its associated dangers.”
The charges resulting from three independent investigations are summarized below.
September 19, 2017 Pseudoephedrine Arrests
On September 19, 2017, the DEA and New York State Police arrested the following nine people who had been charged with possessing pseudoephedrine, an over-the-counter drug, knowing that it would be used to make methamphetamine:
Brett Clifton, 19, Lyons Falls, NY
Leann Evans, 28, Rome, NY
Mark Myers, 54, Blossvale, NY
Brittany DeKay, 37, Blossvale, NY
Michael Hoke, 37, Utica, NY
Scott Leisner, 48, Sylvan Beach, NY
Alyssa Moleski, 21, Cicero, NY
Joseph Palladino, 48, Carthage, NY
James Mayhew, 39, Watertown, NY
On September 26, 2017, a tenth person, Zachary Mazur, 29, Utica, NY, was arrested.
If convicted, these defendants face up to 20 years in prison, a fine of up to $250,000 and terms of supervised release of up to three years.
September 20, 2017 Operation Hail Storm Arrests
On September 20, 2017, as part of “Operation Hailstorm,” an investigation targeting interstate and local methamphetamine trafficking, the DEA, the United States Postal Inspection Service, the New York State Police, and the Broome County Special Investigations Unit Drug Task Force arrested the following nine people who had been charged in a federal indictment with conspiracy to possess with intent to distribute and distribution of methamphetamine:
Alonzo Lamar Harris, a/k/a “L” 42, of Youngstown, Arizona
Charles Green, a/k/a “C” 42, of Endicott, New York
Akuan Johnson, a/k/a “Bleek” 38, of Binghamton, New York
Vincent Harrell, a/k/a “VI” 39, of Endicott, New York
Kenneth Wilson, a/k/a “KB” 46, of Endicott, New York
Rachel Millard, a/k/a “R” 30, of Endicott, New York
Jolene Barrett, 41, of Johnson City, New York
Misti Evans, 37, of Endicott, New York
Amanda Kamp, 37, of Deposit, New York
On September 26, 2017, a tenth person, Jerome Bell, 35, of Binghamton, New York was arrested. If convicted, all of the defendants, except Amanda Kamp, face sentences of at least ten years and up to life in prison, a fine of up to $10 million, and a term of supervised release of at least 5 years and up to life. If convicted, Johnson, Harrell, Wilson, and Bell could face enhanced penalties because of their prior convictions. If convicted, Kamp faces up to 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life.
Harris, Green, Bell, Johnson, and Millard are also charged with conspiracy to launder drug proceeds and, if convicted, face up to 20 years in prison, a fine of up to $500,000, and a term of supervised release of up to three years.
On September 20, 2017, an eleventh defendant, Robert Patton, 39, of Waverly, New York was charged by the Tioga County District Attorney with criminal possession of a controlled substance, second degree.
Law enforcement officers seized approximately 6 pounds of methamphetamine, more than $60,000 of cash, three handguns, and three vehicles.
September 28, 2017 Pseudoephedrine Arrests
Today, the DEA and New York State Police arrested the following 10 people who had been charged with possessing pseudoephedrine, an over-the-counter drug, knowing that it would be used to make methamphetamine:
Arthur LaDuke, 45, North Syracuse, NY
Brittany Peck, 28, Richland, NY
Christine Morey, 32, West Monroe, NY
Donald Burdick, 59, West Monroe, NY
Edward Bennett, 32, Pulaski, NY
Elizabeth Kairis, 22, Cicero, NY
Leann Harrison, 58, West Monroe, NY
Lindsey Creiman, 36, Cicero, NY
Loren Redhead, 30, Pulaski, NY
Mary Jean Pugh, 40, Pulaski, NY
If convicted, these defendants face up to 20 years in prison, a fine of up to $250,000 and a term of supervised release of up to three years.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
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.
These cases are being investigated by the United States Drug Enforcement Administration-Syracuse Resident Office, the United States Postal Inspection Service, the New York State Police, the City of Cortland Police Department, the Broome County SIU Drug Task Force, including the Vestal Police Department, Endicott Police Department, Binghamton Police Department, Johnson City Police Department, Waverly Police Department, Broome County Sheriff’s Office, and Tioga County Sherriff’s Office and are being prosecuted by Assistant U.S. Attorneys Carl Eurenius and Nicolas Commandeur and Tioga County District Attorney Kirk Martin.
Federal Jury Convicts Man of Theft of Government Funds and Identity TheftRead the Press Release
DALLAS — Following a three-day trial before U.S. District Judge Jane J. Boyle, a federal jury convicted Jeffrey Sila, 32, a citizen of Nairobi, Kenya, yesterday on two counts of theft of public funds and one count of aggravated identity theft, announced U.S. Attorney John R. Parker of the Northern District of Texas.
Sila is to be sentenced by U.S. District Judge Jane J. Boyle on January 11, 2018. The maximum statutory penalty for the identity theft count is a mandatory term of two years in prison and a $250,000 fine. The maximum statutory penalty for the theft of public funds counts are a maximum statutory penalty of ten years in prison and a $250,000 fine. Sila has been in custody since the time of his arrest in September 2016.
The government presented evidence at trial that Sila illegally obtained a $76,592.86 United States Treasury check payable to an individual identified as C.S. that had been issued on a federal income tax return filed electronically from Kenya. On August 9, 2016, Sila delivered the treasury check to an Internal Revenue Service (IRS) Criminal Investigation (CI) undercover agent in exchange for $48,000. Sila was arrested on September 11, 2016, at Los Angeles airport as he attempted to board a flight to Nairobi, Kenya. Sila was also convicted of the theft of another treasury refund check that had been issued on an electronically filed return filed in 2012.
The case was investigated by IRS-CI. Assistant U.S. Attorneys Christopher Stokes and Sid Mody are prosecuting.
# # #
Federal Grand Jury Indicts Two Lawyers and Coal Company VP in Conspiracy to Bribe LegislatorRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted two Birmingham lawyers and an Alabama coal company executive on charges of conspiracy, bribery, wire fraud and money laundering conspiracy. The indictment charges that the three paid a state legislator to take official action favorable to their interests in connection with EPA actions in north Birmingham. U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr., and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey announced the indictment.
A six-count indictment filed in U.S. District Court charges that JOEL IVERSON GILBERT and STEVEN GEORGE McKINNEY, both partners in the Birmingham law firm Balch & Bingham, and DAVID LYNN ROBERSON, vice-president of government and regulatory affairs for Drummond Company, conspired to provide former state Rep. Oliver L. Robinson Jr. with a valuable and confidential consulting contract in exchange for his taking official action favorable to Balch & Bingham and its client, Drummond, regarding an environmental cleanup site in north Birmingham.
"It matters not on which side of the bribe one falls in public corruption. Those who pay and those who receive will be prosecuted to the fullest," Town said. "The work done by this trial team and investigators with the FBI and IRS has been as diligent as it has been exceptional."
“Public corruption tears at the fabric of democracy and undermines the public's trust in government,” Sharp said. “Those who choose to engage in corrupt practices can expect the FBI and our partners will be working to bring you to justice.”
“The allegations against these defendants show personal gain and agendas were placed above the overall health of the citizens who lived and worked in this community,” Dorsey said. “Bribery of political officials is against the law and IRS Criminal Investigation will continue to assist with the ongoing effort to expose everyone involved in this conspiracy.”
The Environmental Protection Agency had designated an area of north Birmingham, including the neighborhoods of Harriman Park, Fairmont and Collegeville, as a Superfund site after finding elevated levels of arsenic, lead and benzo(a)pyrene during soil sampling. In September 2013, EPA notified five companies, including ABC Coke, a division of Drummond, that they could potentially be responsible for the pollution. A company determined to be responsible “could have faced tens of millions of dollars in cleanup costs and fines,” according to the indictment.
Robinson, 57, of Birmingham, pled guilty on Sept. 7 to conspiracy, bribery, and honest services fraud for accepting a valuable contract between Balch & Bingham and his non-profit Oliver Robinson Foundation to influence and reward him for using his elected position to oppose prioritization and expansion of the EPA site, designated the 35th Avenue Superfund Site. At the time, between November 2014 and November 2016, Robinson represented Alabama House District 58, which included citizens of Birmingham, and was vice-chairman of the Jefferson County Legislative Delegation.
In September 2014, EPA proposed adding the 35th Avenue Site to its National Priorities List, signaling that it required priority attention. Placement on the priorities list would have allowed EPA to use the federal Superfund Trust Fund to conduct long-term cleanup at the site, provided the State of Alabama agreed to pay 10 percent of the costs, which could equal millions of dollars, according the charges. EPA also was considering the petition of a Birmingham advocacy group, GASP, to expand the site to the Tarrant and Inglenook neighborhoods.
Gilbert, 45, McKinney, 62, and Roberson, 66, all of Birmingham, employed a strategy between 2014 and 2016 “focused on protecting ABC Coke and Drummond Company from the tremendous potential costs associated with being held responsible for pollution within the affected areas,” according to the indictment. They sought to accomplish that goal by working to prevent placement of the 35th Avenue Site on the National Priorities List or its expansion to Tarrant and Inglenook, according to the indictment.
In addition to the conspiracy count, the indictment charges Gilbert, McKinney, and Roberson with one count of bribery, three counts of honest services wire fraud, and one count of money laundering conspiracy.
The bribery count charges that the men agreed to give the lucrative contract and monthly payments to the Oliver Robinson Foundation to influence and reward Robinson for, among other things, using his official position to:
- Publicly pressure and advise the Alabama Environmental Management Commission and the Alabama Department of Environmental Management’s director to take a position for the state that was favorable to Balch & Bingham and Drummond in relation to EPA’s efforts to place the 35th Avenue Site on the NPL and expand it into Tarrant and Inglenook.
- Meet with and advise EPA officials to take a position favorable to Balch & Bingham and Drummond regarding the site listing and expansion.
- Vote as a member of the Alabama House Rules Committee to send a joint resolution, written by Gilbert, to the House floor for consideration with a recommendation for adoption. The resolution urged the state attorney general and ADEM to “combat the EPA’s overreach.”
The honest services wire fraud counts charge Gilbert, McKinney, and Roberson with scheming to defraud Alabama citizens of their intangible right to Robinson’s honest services through bribery. These three counts charge three specific executions of the wire fraud scheme – Balch & Bingham checks for $14,000 on Feb. 17, 2015, $7,000 on April 10, 2015, and $7,000 on June 25, 2015 – that were each deposited into the Oliver Robinson Foundation account at Regions Bank.
The money laundering conspiracy charges the three men with conspiring with each other and Robinson to engage in financial transactions designed to conceal the source and receipt of bribery payments.
According to the indictment, Gilbert, McKinney and Roberson formed a tax-exempt corporation named Alliance for Jobs and Economy and recruited corporations to contribute money to it to help fund opposition to EPA’s actions in north Birmingham. Roberson opened and controlled AJE’s bank account. During 2015 and 2016, Drummond and four other corporations contributed a total of $195,000 to AJE, according to the indictment, and Gilbert and Roberson directed almost all of that money to the Oliver Robinson Foundation. Gilbert and Roberson also directed more than $150,000 from Drummond to the Oliver Robinson Foundation. In total, the Oliver Robinson Foundation received approximately $360,000 under the contract during 2015 and 2016.
As part of the conspiracy, payments from Drummond and AJE to the Oliver Robinson Foundation were routed through Balch & Bingham. According to the charges, the Oliver Robinson Foundation invoiced Balch & Bingham; Balch & Bingham paid the invoices; Balch & Bingham invoiced Drummond or AJE in an identical amount; and Drummond or AJE promptly paid those amounts to Balch & Bingham.
The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for bribery is 10 years in prison and a $250,000 fine. The maximum penalty for honest services wire fraud is 20 years in prison and a $250,000 fine, and the maximum penalty for money laundering conspiracy is 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.
FBI and IRS, Criminal Investigation, investigated the case, which Assistant U.S. Attorneys George Martin, Robin Beardsley Mark and John B. Ward are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
El Departamento Presenta una Denuncia contra Crop Production Services Alegando Que Discriminaron A Trabajadores en los EE. UU.Read the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha presentado una denuncia contra Crop Production Services, Inc. (Crop Production), con sede en Loveland, Colorado, por su alegada discriminación contra trabajadores en este país, en contra de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
La denuncia alega que en el 2016, Crop Production discriminó al menos a tres ciudadanos estadounidenses al negarse a contratarlos como técnicos estacionales en El Campo, Tejas porque Crop Production prefirió contratar a trabajadores extranjeros temporales bajo el programa de visas H-2A. Según la denuncia del Departamento, Crop Production impuso requisitos más onerosos y exigentes a los ciudadanos estadounidenses a los que impuso a los trabajadores con visas H-2A para desalentar a ciudadanos estadounidenses a trabajar en sus instalaciones. Por ejemplo, la denuncia alega que mientras que los ciudadanos estadounidenses tenían que someterse a una investigación de antecedentes y un ensayo de drogas antes de recibir autorización para trabajar, los trabajadores con visas H-2A pudieron comenzar a trabajar sin completar estos pasos y en algunos casos nunca los completaron. Asimismo, la denuncia alega que Crop Production se negó a considerar a un ciudadano estadounidense con dominio limitado del inglés para un empleo mientras que contrató a trabajadores con visas H-2A que no podían hablar inglés. Al final, de los 15 puestos disponibles en el 2016 para técnicos estacionales, todos fueron adjudicados a trabajadores con visas H-2A en vez de a trabajadores en este país.
Conforme la INA, es ilegal que los empleadores discriminen de manera intencionada a trabajadores en este país por motivos de su estatus de ciudadanía o de otra forma dar preferencia a la hora de contratar a empleados a trabajadores extranjeros temporales en vez de a trabajadores cualificados en este país que están disponibles para trabajar. Además, el programa de visas H‑2A requiere que los empleadores recluten y contraten a trabajadores cualificados y disponibles en este país antes de contratar a trabajadores extranjeros temporales.
«En el espíritu de la orden ejecutiva del Presidente Trump para Buy American and Hire American, el Departamento de Justicia no tolerará a empleadores que discriminen a trabajadores en este país debido a su deseo de contratar a trabajadores extranjeros temporales», declaró el Fiscal General Jeff Sessions. «El Departamento de Justicia hará cumplir la ley de Inmigración y Nacionalidad para proteger a los trabajadores en este país, ya que representan el pilar de nuestras comunidades y economía. Siempre que haya un trabajo disponible, debemos de darles una oportunidad a los trabajadores en este país antes de comenzar a traer trabajadores de otros países».
La denuncia de los Estados Unidos busca pagos retroactivos en nombre de los trabajadores afectados, sanciones civiles y otras formas de indemnización para corregir y prevenir la discriminación. Asimismo, los trabajadores han presentado su propia denuncia privada y están siendo representados por Texas RioGrande Legal Aid. Ambas denuncias se presentaron ante la Oficina del Oficial Principal de Vistas Administrativas, un tribunal administrativo especializado que el Congreso creó para resolver tales casos.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Este caso forma parte de la Iniciativa para la Protección de Trabajadores en los EE. UU., de la División. El objetivo de esta iniciativa es identificar, investigar y denunciar a compañías que discriminan a trabajadores en este país a favor de trabajadores extranjeros con visa.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Eagle Grove Man Pleads Guilty to Sexual Exploitation of a Child and ExtortionRead the Press Release
A man who sexually exploited a child and committed extortion pled guilty yesterday in federal court in Cedar Rapids.
Jason Marvets, age 30, from Eagle Grove, Iowa, was convicted of one count of sexual exploitation of a child and one count of extortion. At the plea hearing, Marvets admitted that, between 2016 and 2017, he persuaded, induced, enticed, or coerced a child to send him sexually explicit depictions of herself. In a plea agreement, he admitted that this child was 11 and 12 years old and that he threatened to distribute depictions of her in order to get more depictions of her. In the plea agreement, he also admitted he obtained sexually explicit depictions from a 15-year-old child and threatened to ruin her life when she did not communicate with him.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Marvets remains in custody of the United States Marshal pending sentencing. Marvets faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 32 years’ imprisonment, a $500,000 fine, $5,200 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Wright County Sheriff’s Office, the Webster County Sheriff’s Office, the Georgia Bureau of Investigation, and the Michigan State Police.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-3034.
Follow us on Twitter @USAO_NDIA.
Dominican National Sentenced for Trafficking Heroin and FentanylRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for supplying heroin and fentanyl to traffickers in Taunton and surrounding communities.
Jonathan Ruiz, 33, a Dominican national residing in Lawrence, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to six years in prison and three years of supervised release. Ruiz will be subject to deportation upon completion of his sentence. In June 2017, Ruiz pleaded guilty to conspiracy to possess with intent to distribute and to distribute heroin and fentanyl.
In April 2016, Ruiz was arrested and charged in a superseding indictment along with 25 others who had been charged the previous October in connection with a heroin trafficking ring operating primarily in southeastern Massachusetts. Ruiz trafficked in narcotics from Lawrence, supplying distributers in Taunton, Fall River and other locations. The charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Taunton and surrounding communities.
Ruiz and co-defendants, Dedwin Cruz-Rivera, a heroin supplier based in Taunton, Manuel Romero-Gonsalez, a heroin supplier based in Providence, R.I., and Eric Matos, a heroin and fentanyl supplier based in Lawrence, supplied co-conspirators, Oniel Rivera, Cory Nickerson, and Maria Elena Ocasio, among others, with heroin and occasionally fentanyl for distribution. Ruiz also supplied fentanyl and heroin to Cruz-Rivera.
Matos, Ocasio, Nickerson, Rivera, and Romero-Gonsalez all pleaded guilty and have been sentenced. Cruz-Rivera pleaded guilty and is scheduled to be sentenced Nov. 28, 2017.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorneys Thomas E. Kanwit, Karen Beausey, Katherine Ferguson and Ann Taylor of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.
Detention Ordered for El Paso Defendant Charged in Cocaine/Heroin Trafficking IndictmentRead the Press Release
In El Paso this afternoon, U.S. Magistrate Judge Anne T. Berton ordered 36 year-old Martin Arody Sanchez Aguirre held without bond pending trial on federal drug trafficking charges. Sanchez Aguirre is one of five individuals indicted earlier this month for trafficking in cocaine and heroin throughout the El Paso area from April 2014 through July 2015 announced United States Attorney Richard L. Durbin, Jr. and Acting Special Agent in Charge Steve Borak, U.S. Drug Enforcement Administration, El Paso Division.
This multi-year investigation targeted a drug trafficking organization based in Juarez, Mexico. The organization smuggled large quantities of heroin and cocaine from Juarez into El Paso, Texas, and distributed the drugs in various parts of the United States, including Chicago, Illinois. This investigation resulted in the seizure of over forty kilograms of cocaine and over ten kilograms of heroin.
On September 13, 2017, a federal grand jury returned a five-count indictment against Sanchez Aguirre, 47 year-old Ruben Abbud-Villarreal, 45 year-old Miguel Alonso Olaguez, 26 year-old Jose Guzman, and 33 year-old Jaime Gonzalez-Nava. Count one of the indictment charges all five defendants with one count of conspiracy to possess with intent to distribute more than 5 kilograms of cocaine. Count two of the indictment charges Gonzalez-Nava and Sanchez Aguirre with conspiracy to import more than 5 kilograms of cocaine. Count three of the indictment charges Abbud-Villarreal and Olaguez with possession with intent to distribute more than five kilograms of cocaine in October 2014. Count four charges Guzman and Gonzalez-Nava with conspiracy to possess with intent to distribute more than one kilogram of heroin. Count five charges Gonzalez-Nava with conspiracy to import heroin. Other members of this drug trafficking conspiracy have previously been federally prosecuted and are currently serving prison terms in the Bureau of Prisons.
All charges call for up to life in federal prison upon conviction. On Tuesday, Judge Anne T. Berton set bond at $35,000 each for Guzman and Olaguez. Abbud-Villarreal remains in custody pending trial. Gonzalez-Nava is in custody in Illinois awaiting transfer to the Western District of Texas. A trial date has yet to be scheduled.
These federal and state charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.Department of Justice Awards A $750,000 Grant to Baltimore Police Department Community Collaboration DivisionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland –The Department of Justice has awarded a $750,000 grant to the Baltimore Police Department Community Collaboration Division to improve supervision strategies that will reduce recidivism rates in Baltimore City announced Acting United States Attorney Stephen M. Schenning.
The objectives of the Smart Supervision Program are to improve supervision strategies that will reduce recidivism, promote and increase collaboration among agencies and officials who work in probation, parole, pretrial, law enforcement, treatment, reentry, and related community corrections fields and to develop and implement strategies for the identification, supervision, and treatment of “high-risk/high-needs” supervisees.
Since 2015, The Baltimore Police Department Community Collaboration Division (BPD-CCD) Reentry Program has created partnerships with service providers, local, state, and federal agencies. The mission of the BPD-CCD Reentry Program is to reduce recidivism rates in Baltimore City by providing case management and connecting offenders to service providers.
The Smart Supervision Program seeks to improve the capacity and effectiveness of community supervision agencies to increase parole and probation success rates and reduce the number of crimes committed by those under supervision, which would in turn reduce admissions to prisons and jails and save taxpayer dollars.
The Baltimore Police Department Community Collaboration Division was one of seven awardees across various jurisdictions in the United States. The Community Collaboration Division partnered with the Department of Public Safety and Correctional Services, Division of Parole and Probation and local service providers to expand evidence-based practices and principles to improve the delivery of probation and parole supervision strategies and practices.
“I’m excited that we received this grant based on the work of the Community Collaboration Division,” said Baltimore Police Commissioner Kevin Davis. “We have an obligation to focus on those rejoining our community to ensure resources are in place and available in order to put people on the right path for success.”Dauphin County Woman Sentenced to Home-Confinement for Taking Deceased Husband’s Social Security BenefitsRead the Press Release
WILLIAMSPORT– The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 27, 2017, United States District Court Judge Matthew W. Brann sentenced Loretta Galloway, age 56, of Harrisburg, Pennsylvania, to six months’ home-confinement and to pay full restitution of $83,874 for unlawfully collecting thousands of dollars in Social Security Benefits that she was not entitled to.
According to United States Attorney Bruce D. Brandler, from June 2010 through February 2015, Galloway collected $83,874 of her deceased husband’s Social Security benefits to pay her bills and other expenses. Galloway was not entitled to these benefits.
Galloway was indicted on January 31, 2017, and pleaded guilty pursuant to a plea agreement on June 8, 2017.
The investigation was conducted by the Social Security Administration, Office of the Inspector General. Assistant United States Evan Gotlob prosecuted the case.
# # #
Dallas Man Convicted of Drug and Firearms ChargesRead the Press Release
DALLAS — Ronee Damien Williams, 25, of Dallas, Texas was convicted by a federal jury yesterday of multiple firearm and drug offenses following a three-day trial before U.S. District Judge David C. Godbey, announced U.S. Attorney John Parker of the Northern District of Texas.
Williams was convicted on one count of felon in possession of a firearm, one count of possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a drug trafficking crime. He faces a penalty of not more than ten years in prison and a $250,000 fine for the felon in possession charge and not less than five years and not more than forty years in prison and a $5,000,000 fine for the drug and firearm possession charges. He has been in custody since the time of his arrest in March 2016. Sentencing is scheduled for January 8, 2018.
Co-defendant Jordan Jamichael Mims pleaded guilty in April 2017 to the same charges and was sentenced by Judge Godbey to a total of 120 months in prison.
The government presented evidence that Williams had previously been convicted of a crime punishable by imprisonment for a term exceeding one year. On September 18, 2015, Dallas Police executed a search warrant on a house where Williams and others were selling cocaine, PCP, and marijuana. At the time the search warrant was executed, Williams was inside the house that had multiple firearms, more than 28 grams of cocaine and a large amount of PCP.
The ATF and Dallas Police investigated. The case is being prosecuted by Assistant U.S. Attorneys John Boyle and Shane Read.
# # #
Credit Counseling and Financial Education Requirements for Bankruptcy Filers Are Waived Temporarily in Puerto Rico and the U.S. Virgin IslandsRead the Press Release
WASHINGTON, D.C. – The U.S. Trustee Program (USTP) today announced a temporary waiver of the federal statutory requirements for credit counseling and personal financial management education for consumer bankruptcy filers in the District of Puerto Rico and the District of the U.S. Virgin Islands, due to the effects of Hurricanes Irma and Maria.
Under the Bankruptcy Code, individual bankruptcy filers are required to receive credit counseling from an approved agency within 180 days before they file bankruptcy. In addition, in order to receive a bankruptcy discharge, individual bankruptcy filers must complete a course in personal financial management offered by an approved provider.
The Bankruptcy Code permits U.S. Trustees to waive the credit counseling and financial education requirements within a judicial district where approved agencies and providers are not reasonably able to provide adequate services. Acting U.S. Trustee Guy Gebhardt made this determination with respect to the District of Puerto Rico and the District of the Virgin Islands. The waiver applies to bankruptcy cases filed on or after September 28, 2017.
The U.S. Trustee Program is the component of the Department of Justice that promotes integrity and efficiency in the nation’s bankruptcy system by enforcing bankruptcy laws, providing oversight of private trustees, and maintaining operational excellence. The Program has 21 regions and 92 field offices. The Program is responsible for overseeing bankruptcy cases in all jurisdictions except those in Alabama and North Carolina. The Districts of Puerto Rico and the Virgin Islands are located in the Program’s Region 21, which is based in Atlanta.
Carrollton Woman Sentenced for $185,000 Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Carrollton, Mo., woman was sentenced in federal court today for a bank fraud scheme in which she used her neighbor’s house to obtain a loan for her failed business venture.
Carol Joyce Noble, 65, of Carrollton, was sentenced by U.S. District Judge Stephen R. Bough to two years and six months in federal prison without parole. The court also ordered Noble to pay $267,924 in restitution.
On March 28, 2017, Noble was found guilty at trial of two counts of bank fraud. Evidence introduced during the trial indicated that Noble defrauded Central Trust Bank in Jefferson City, Mo., in September 2011 as part of a scheme to obtain a fraudulent $185,000 loan in order to purchase a convenience store in Stover, Mo.
As part of the scheme, Noble caused the fraudulent appraisal of her Gravois Mills, Mo., residential property in order to obtain the loan. Noble changed the physical address of the residence to an adjacent residence by altering the last digit of the house number, unbeknownst to the neighbor. Noble met the appraiser at her neighbor’s home and misrepresented to the appraiser that it was her own. The appraiser then appraised the wrong home at a value $100,000 higher than the true value of Noble’s property. Noble was found guilty of two counts of bank fraud related to the fraudulent appraisal.
According to court documents, the loan closed and the money was issued, but the business quickly failed. During the foreclosure process, it was determined that the property appraised was not Noble’s actual house, but rather, the residence next to hers. The bank ultimately sold Noble’s actual residence for only $15,000. The bank, Noble’s business partners (who continued to pay the deficiency on the loan after its default) and even the appraisal company and its insurance company lost substantial amounts of money as a result of this fraud.
This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the FBI.
Canadian, Oklahoma Woman Sentenced to 36 Months Probation for Embezzlement of MailRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LEANDA JOANNE PRATHER, age 37, of Canadian, Oklahoma, was sentenced to 3 years probation for EMBEZZLEMENT OF MAIL BY POSTAL EMPLOYEE, in violation of Title 18, United States Code, Section 1709.
The Indictment alleged that between on or about August 2, 2016, to on or about December 20, 2016, in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully embezzle packages entrusted to her and which came into her possession to be conveyed by mail, located at the Eufaula Post Office, 131 W. Foley, Eufaula, Oklahoma, while performing her assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Service Office of Inspector General.
The Honorable Ronald A. White, 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.
Buffalo Man Arrested, Charged with Distributing HeroinRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jose Ramos-Escalera, 29, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute and distribution of heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the complaint, between July 18, 2017, and September 26, 2017, the defendant distributed amounts of heroin and possessed heroin with intent to distribute in the Buffalo area.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Arrested, Charged with Being A Felon in Possession of FirearmsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Hunter, 21, of Buffalo, NY, was charged by criminal complaint with two counts of being a felon in possession of firearms. Each charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that according to the complaint, between March 3, 2017, and March 12, 2017, the defendant posted images to “Snap Chat” depicting himself in possession of a Hi-Point, model JH-45 semi-automatic firearm.
On April 1, 2017, New York State Parole Officers, assisted by members of the Buffalo Police Department, searched Hunter’s residence, recovered a Hi-Point, model CF380, .380 caliber semi-automatic firearm, and arrested the defendant.
The defendant was previously convicted in state court of Criminal Possession of a Weapon in February 2014 and is legally prohibited from possessing a firearm.
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan benedict, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; New York State Parole, under the direction of Acting Commissioner Anthony J. Annucci; and the Erie County District Attorney’s Office, under the direction of John Flynn.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bristol Woman Pleads Guilty to Preparing False Tax Returns for Clients for More Than a DecadeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that ROBIN REID, 54, of Bristol, waived her right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to preparing false federal income tax returns.
According to court documents and statements made in court, REID operated a tax return preparation practice. From at least 2005 and continuing until 2015, REID falsified information on numerous returns that she prepared for clients by inflating deductions for medical and dental expenses, charitable contributions, employee-related expenses, and other expenses. REID often created fictitious Schedule C forms in order to fabricate deductible business expenses, and fictitious Schedule E forms to inflate expenses relating to rental properties. By routinely overstating deductions, REID reduced taxable income on the respective returns, and caused a tax loss of $1,126,011 to the government.
REID pleaded guilty to one count of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years, a fine of up to approximately $2.2 million, and restitution. Chief Judge Hall scheduled sentencing for December 21, 2017.
REID’s clients are required to resolve their own tax liability with the Internal Revenue Service.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Beardstown Man Sentenced for Methamphetamine TraffickingRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Kayln Valdez was sentenced on September 28, 2017 to 108 months in federal prison for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
Valdez pled guilty on June 14, 2017. At his change of plea hearing, Valdez admitted possessing two kilograms of methamphetamine in Jerseyville, Illinois on June 18, 2016. A co-defendant of Valdez,Mark E. Wilson, was sentenced on September 7, 2017 to a term of 97 months in prison for the same offenses.
The investigation which resulted in Valdez’s arrest and conviction was conducted by the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Barnett Woman Sentenced for MethRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Barnett, Mo., woman was sentenced in federal court today for possessing methamphetamine with the intent to distribute.
Ashley Annette Stone, 33, of Barnett, was sentenced by U.S. District Judge Stephen R. Bough to eight years in federal prison without parole.
On April 26, 2017, Stone pleaded guilty to possessing 50 grams or more of methamphetamine with the intent to distribute.
On Jan. 11, 2016, Morgan County, Mo., sheriff’s deputies went to Stone’s residence to interview her about reports that she was involved in the distribution of methamphetamine. Deputies executed a search warrant at her residence and seized a bag that contained 54.27 grams of methamphetamine hidden behind the washing machine. Stone’s car was also searched, and officers found a bag that contained seven grams of methamphetamine.
According to court documents, Stone’s vehicle had been stopped by Lake Ozark, Mo., police officers on July 24, 2015. During the stop, officers found a baggie that contained .36 gram of methamphetamine. Stone told investigators she had travelled to Oklahoma City to obtain a pound of methamphetamine. She also admitted that, a week prior to the traffic stop, she had traveled to obtain a pound of methamphetamine, which she sold in Missouri.
Stone also told investigators that she had been buying and selling methamphetamine that she obtained from Mexican nationals. She stated that, two weeks earlier, she had purchased methamphetamine at $500 per ounce from a Mexican man in Kansas City, Mo. The man gave Stone a tequila bottle containing a clear liquid, and instructed her to heat it in an aluminum pan and then set it aside to dry, and that it would turn into crystal methamphetamine. Stone stated that the liquid ultimately yielded a pound of powder. Stone had obtained a second bottle containing methamphetamine that was located in her vehicle. The vehicle had been returned to its owner, who had broken the bottle, but the bottle was recovered and found to contain methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force, the Lake Ozark, Mo., Police Department, the Miller County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
BB&T Bank Employee Admits to Stealing over $500,000Read the Press Release
Abingdon, VIRGINIA – A BB&T employee, who over a period of approximately four years embezzled over a half-million dollar, faces up to 30 years in federal prison after she pleaded guilty today in the federal court in Abingdon to embezzlement charges, Acting United States Attorney Rick A. Mountcastle announced.
Anna B. Holt, 48, of Staffordsville, Va., waived her right to be indicted and pleaded guilty today to embezzlement by a bank employee of moneys of the bank or entrusted to the custody of the bank.
Holt worked for BB&T Bank as a branch banker at the New River Branch in Pearisburg, Virginia. The defendant admitted today that from around 2013 to August 2017, while being employed at the bank, she embezzled a total of $565,790.41 from 14 separate accounts holders. Holt used various methods to embezzle the money, including making withdrawals from customer accounts, cashing customers’ bonds and keeping the proceeds, and creating fake credit accounts in the names of relatives and withdrawing the loan proceeds. Some of the money embezzled was used to repay accounts from which Holt had previously stolen money.
Sentencing is scheduled for December 19, 2017, at 2:30 p.m. before United States District Court Judge James P. Jones in Abingdon.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Asplundh Tree Experts, Co. Pleads Guilty to Unlawful Employment of AliensRead the Press Release
PHILADELPHIA –Asplundh Tree Experts, Co., one of the largest privately-held companies in the United States, headquartered in Willow Grove, Pennsylvania (“Asplundh”), pleaded guilty today to unlawfully employing aliens, in connection with a scheme in which the highest levels of Asplundh management remained willfully blind while lower level managers hired and rehired employees they knew to be ineligible to work in the United States, announced acting United States Attorney Louis D. Lappen. Following the guilty plea hearing today, the Honorable John R. Padova sentenced the company to pay a forfeiture money judgment in the amount of $80,000,000.00 and abide by an Administrative Compliance Agreement, as set forth by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia. Pursuant to a separate Civil Settlement Agreement, Asplundh will pay an additional $15,000,000.00 to satisfy civil claims arising out of their failure to comply with immigration law.
The $95,000,000.00 recovery, including $80,000,000.00 criminal forfeiture money judgment and $15,000,000.00 in civil payment, represents the largest payment ever levied in an immigration case.
According to court documents, from 2010 until December 2014, Asplundh, an industry leader in tree trimming and brush clearance for power and gas lines, hired and rehired employees in many regions in the United States accepting identification documents it knew to be false and fraudulent. A six-year HSI audit and investigation revealed that the company decentralized its hiring so Sponsors (the highest levels of management) could remain willfully blind while Supervisors and General Foremen (2nd and 3rd level supervisors) hired ineligible workers, including unauthorized aliens, in the field. Hiring was by word of mouth referrals rather than through any systematic application process. This manner of hiring enabled Supervisors and General Foremen to hire a work force that was readily available and at their disposal.
This decentralized model tacitly perpetuated fraudulent hiring practices that, in turn, maximized productivity and profit. With a motivated work force, including unauthorized aliens willing to be relocated and respond to weather related events around the nation, Asplundh had crews which were easily mobilized that enabled them to dominate the market. Asplundh provided all the incentives to managers to skirt immigration law.
“Our partners at U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia are to be commended for their work on this lengthy audit and investigation, spanning 6 years," said Acting United States Attorney Louis D. Lappen. "Today’s settlement and the compliance agreement makes it clear, that companies must play by the rules and treat everyone fairly.”
“Today marks the end of a lengthy investigation by ICE Homeland Security Investigations into hiring violations committed by the highest levels of Asplundh’s organization,” said ICE Acting Director Thomas Homan. “Today’s judgment sends a strong, clear message to employers who scheme to hire and retain a workforce of illegal immigrants: we will find you and hold you accountable. Violators who manipulate hiring laws are a pull factor for illegal immigration, and we will continue to take action to remove this magnet.”
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
Albuquerque Felon Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jimmie Joe Lucero, 51, of Albuquerque, N.M., was arraigned today in federal court on an indictment charging him with violating the federal firearms laws. Lucero entered a not guilty plea to the indictment and remains detained pending trial, which has yet to be scheduled.
Lucero, whose prior criminal history includes at least eight prior felony convictions including convictions for assault, aggravated assault with a deadly weapon, and battery on a peace officer, is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. 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 felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The FBI arrested Lucero on June 15, 2017, based on a criminal complaint charging him with being a felon in possession of a firearm. According to the criminal complaint, FBI agents found a firearm in Lucero’s vehicle during the execution of a search warrant at Lucero’s residence. The indictment, which was filed on Sept. 21, 2017, charges Lucero with unlawfully possessing a firearm on June 15, 2017, in Bernalillo County, N.M., and alleges that Lucero was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Lucero is detailed pending trial. If convicted, Lucero faces a maximum penalty of ten years in federal prison for being a felon in possession of a firearm. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo.
Albany Man Sentenced for Oxycodone DistributionRead the Press Release
ALBANY, NEW YORK – Jason C. Bishop, age 27, of Albany, New York, was sentenced today to time served (approximately 18 months of imprisonment), to be followed by 3 years of supervised release, for distributing oxycodone in Albany County.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
As part of his March 17, 2017 guilty plea, Bishop admitted that he obtained prescribed oxycodone tablets from a pharmacy and then sold those tablets to Salvatore Commisso. Commisso was sentenced in January 2017 to 36 months in prison for conspiring to distribute oxycodone.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Alaska Couple Charged with Defrauding Anchorage Medical Practice of at Least $550,000Read the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Alaska couple has been charged for allegedly defrauding an Anchorage medical practice of at least $550,000.
Jill Diane Applebury, aka: “Jill Wetzsteon,” 52, d/b/a Applebury Accounting Services, and her husband Darin Wade Applebury, 52, both of Anchorage, have been named in a 39-count indictment charging them with bank fraud, wire fraud, fraudulent transactions with an access device, and aggravated identity theft.
From the mid-1990’s until March 2013, Jill Applebury was the independent contractor bookkeeper for an Anchorage medical practice, which was owned and operated by an Anchorage physician. The indictment alleges that from at least 2004 until March 22, 2013, Jill Applebury and Darin Applebury defrauded the Anchorage medical practice in several ways.
For example, as to Jill Applebury, one such scheme involved the medical practice’s profit-sharing plan. Employees of the medical practice were eligible to participate in its profit-sharing plan, which was overseen by a third-party administrator. Independent contractors did not qualify for the plan. According to the indictment, Jill Applebury falsely represented to the third-party administrator that she had become a full-time employee of the medical practice in 2009, making her eligible to participate in the profit-sharing plan beginning in 2010. In all, Jill Applebury fraudulently caused the physician to unknowingly allocate $62,722.90 to her in unauthorized profit-sharing plan contributions for the years 2010 and 2011.
The indictment further alleges that, between 2004 and March 22, 2013, Jill and Darin Applebury also defrauded the physician’s medical practice by using the medical practice’s business bank account and business credit card to pay for items for their own personal and/or business benefit. The unauthorized charges to the medical practice’s business credit card included cell phone service for the Appleburys and members of their family, internet service for their residence, business licenses for businesses owned by Jill and Darin Applebury, automobile insurance for their personal vehicles, and other personal items.
In addition, in October 2012, Darin Applebury is alleged to have fraudulently used the medical practice’s business credit card to effect four transactions, totaling nearly $3,000, of medical products for his business, Rapid Recovery Medical Service. Darin Applebury effected these fraudulent credit card transactions using the physician’s name and address unbeknownst to and without the permission of the Anchorage physician. Jill Applebury assisted her husband in carrying out this unlawful conduct.
This case was investigated by the Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD).
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Alabama Man Arrested on Production of Child Pornography ChargesRead the Press Release
A 54-year-old Muscle Shoals, Alabama resident was arrested on September 27, on a federal criminal complaint charging him with producing child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
According to the complaint affidavit, between Aug. 1, 1997, and Oct. 15, 1998, Charles Mark McCormack used a minor, born in or about 1992, to engage in sexually explicit conduct for the purpose of producing child pornography, by surreptitiously videotaping the minor urinating in a bathroom in his residence.
The charges contained in the complaint are only allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating this case with the cooperation of the Georgia Bureau of Investigation. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Daniel J. Fortune of the Northern District of Alabama are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Alabama Man Arrested on Production of Child Pornography ChargesRead the Press Release
WASHINGTON – A 54-year-old Muscle Shoals, Alabama resident was arrested on September 27, on a federal criminal complaint charging him with producing child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
According to the complaint affidavit, between Aug. 1, 1997, and Oct. 15, 1998, Charles Mark McCormack used a minor, born in or about 1992, to engage in sexually explicit conduct for the purpose of producing child pornography, by surreptitiously videotaping the minor urinating in a bathroom in his residence.
The charges contained in the complaint are only allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating this case with the cooperation of the Georgia Bureau of Investigation. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Daniel J. Fortune of the Northern District of Alabama are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Additional Canadian Citizen Charged in Telemarketing ScamRead the Press Release
Ari Tietolman, 43, of Montreal, Canada, was charged in a Superseding Indictment1 with three counts of wire fraud and four counts of money laundering, announced Acting United States Attorney Louis D. Lappen. In addition, the Superseding Indictment added Adam Harper, 34, of Montreal, Canada, who is also charged with three counts of wire fraud and four counts of money laundering.
According to the Superseding Indictment, between 2005 and March 2014, Tietolman, Harper, and others used Tietolman’s network of telemarketers in Canada and India to target American senior citizens with deceptive telemarketing calls. They sold worthless or non-existent services and then debited the victims’ bank accounts without their informed consent. Using the business names Fraud Watch, Patient Assistance Plus, Legal Eye and Trust One, the worthless or non-existent services these telemarketers sold included purported fraud protection and discounted legal services, as well as a discount prescription card.
During the calls, Tietolman’s telemarketers allegedly made various false representations, such as that they were calling on behalf of, or were affiliated with, the victim’s bank, or insurance company, or the United States government. In addition to misrepresenting the value of the products being marketed, Tietolman’s telemarketers allegedly misrepresented the cost of these products, sometimes telling consumers the products were free, or less expensive than the amount that was ultimately debited from the consumers’ bank accounts. In other instances, Tietolman’s telemarketers allegedly assured consumers they would not debit the consumers’ bank accounts, and then did just that after the consumer provided their bank account information.
According to the Superseding Indictment, Tietolman and Harper attempted to conceal their involvement in the scheme by employing others to run “front” companies and process the fraud money. The sole purpose of these corporations was to process the fraud proceeds generated by the telemarketing scheme. Tietolman and Harper instructed others to open up numerous bank accounts in the United States in the names of the fraud companies that they had incorporated. Tietolman, Harper, and others controlled these United States bank accounts from Canada. Tietolman and Harper instructed others in the United States to deposit victims’ funds in batches of less than $10,000 to avoid federally-mandated reporting requirements. After the funds were deposited, Tietolman and Harper instructed others to wire the majority of the funds to accounts in Canada.
Tietolman and Harper face maximum possible sentences of 170 years in prison; three years of supervised release; a fine of $1.75 million or up to double the amount involved in the money laundering; and a $700 special assessment.
In March 2016, Marc Roy Ferry, 36, of Downingtown, Pennsylvania, pleaded guilty in a related case to his role in running “front” companies in the United States for Tietolman and Harper.
The case was investigated by the FBI, IRS - Criminal Investigations, Homeland Security Investigations, the Federal Trade Commission, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Vineet Gauri.1 An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed
Acting Manhattan U.S. Attorney Settles Civil Mortgage Fraud Lawsuit Against Residential Home Funding Corp.Read the Press Release
UPDATE
The press release issued in this case on September 28, 2017, incorrectly identified Residential Home Mortgage Corp. as the settling defendant instead of Residential Home Funding Corp. The defendant in this case is Residential Home Funding Corp. Residential Home Mortgage Corp. has no connection to this case and has not been accused of any wrongdoing.
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dane Narode, Associate General Counsel for Program Enforcement for the U.S. Department of Housing and Urban Development (“HUD”), and Christina Scaringi, the Special Agent in Charge of HUD’s Office of the Inspector General (“HUD-OIG”), Northeast Region, announced today that the United States has settled a civil mortgage fraud lawsuit against RESIDENTIAL HOME FUNDING CORP. (“RESIDENTIAL HOME FUNDING”) stemming from RESIDENTIAL HOME FUNDING’s participation in the Federal Housing Administration’s (“FHA”) Direct Endorsement Lender Program (“DEL Program”). In the settlement, approved Monday by U.S. District Judge Jed S. Rakoff, RESIDENTIAL HOME FUNDING agreed to pay $1.67 million and admitted, acknowledged, and accepted responsibility for, among other things, failing to maintain a compliant quality control program and approving loans for FHA insurance that failed to meet the requirements established by HUD. The settlement amount was based on RESIDENTIAL HOME FUNDING’s financial ability to pay after a review of the company’s financial records. As part of the settlement, RESIDENTIAL HOME FUNDING also agreed to retain an independent compliance consultant to ensure its compliance with the HUD/FHA rules applicable to the DEL Program.
Acting Manhattan U.S. Attorney Kim said: “We are committed to holding lenders accountable when they recklessly approve loans for FHA insurance and then fail to live up to their promises to HUD. With this settlement, Residential Home Funding accepts responsibility for its conduct and will pay $1.67 million.”
HUD Associate General Counsel for Program Enforcement Dane Narode said: “This case demonstrates HUD’s resolve in protecting the integrity of its mortgage insurance programs for the benefit of all Americans, especially first-time homebuyers. We’re pleased that Residential Home Funding has accepted responsibility for its actions and has agreed to improve its training and quality control program.”
HUD-OIG Special Agent in Charge Christina Scaringi said: “This settlement with Residential Home Funding is the latest example of our continued commitment to hold mortgage industry professionals accountable for their actions. HUD OIG’s Joint Civil Fraud Division and Office of Investigations will continue to work together with our partners at the U.S. Attorney’s Office to root out lenders who choose to use deceptive practices that ultimately cause FHA to suffer losses on mortgages that should never have been approved.”
The Government’s Complaint in this action alleged as follows:
During the period 2006 through 2012 (“Covered Period”), RESIDENTIAL HOME FUNDING participated in the DEL Program. As a DEL lender, RESIDENTIAL HOME FUNDING had the authority to originate, underwrite, and approve mortgages for FHA insurance. If a DEL lender like RESIDENTIAL HOME FUNDING approved a loan for FHA insurance and the loan later defaulted, the holder of the loan could submit an insurance claim to HUD and HUD had to pay the costs associated with the default. Throughout the Covered Period, HUD therefore required DEL lenders to follow HUD’s program rules, including its underwriting requirements and its requirement that lenders maintain a compliant quality control program. A compliant quality control program must include procedures to ensure that the lender reviews loans for compliance with HUD requirements, promptly discloses to HUD all loans containing evidence of fraud or other serious underwriting problems, and conducts a full review of all loans that go into default within the first six payments (“early payment defaults”). RESIDENTIAL HOME FUNDING failed to comply with all three of these basic requirements, and it also routinely approved loans for FHA insurance that did not meet HUD’s underwriting requirements. Notwithstanding these failures, RESIDENTIAL HOME FUNDING continued to fraudulently certify to HUD, each year, that it “conforms to all HUD-FHA regulations necessary to maintain its HUD-FHA approval.”
As part of the settlement, RESIDENTIAL HOME FUNDING has admitted, acknowledged, and accepted responsibility for the following misconduct during the Covered Period:
- RESIDENTIAL HOME FUNDING failed to conform to the HUD and FHA rules requiring DEL lenders to maintain a compliant quality control program by, among other things:
-
- not taking action to address loans with underwriting deficiencies that were identified through RESIDENTIAL HOME FUNDING’s own quality assurance review process;
-
- not reviewing early payment default loans; and
-
- not reporting to HUD loans that were identified in RESIDENTIAL HOME FUNDING’s quality control reviews as having indicia of fraud or other serious deficiencies.
- Contrary to representations in RESIDENTIAL HOME FUNDING’s annual certifications, RESIDENTIAL HOME FUNDING did not conform to all applicable HUD and FHA regulations.
- RESIDENTIAL HOME FUNDING endorsed for FHA mortgage insurance loans that did not meet all underwriting requirements contained in HUD’s handbooks and mortgagee letters.
- RESIDENTIAL HOME FUNDING submitted to HUD and FHA loan-level certifications stating that loans were eligible for FHA mortgage insurance when in fact they were not.
* * *
Mr. Kim thanked HUD-OIG for its assistance in this case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jessica Jean Hu and Elizabeth M. Tulis are in charge of the case.
Wednesday 27 September 2017
Young Melph Mafia Gang Member Sentenced to Life in Prison following Convictions on Rico, Gun, Drug, and Murder ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DEDRICK KEELEN, a/k/a “Roy,” age 24, of New Orleans, was sentenced today after having previously been found guilty of violating the Racketeer Influenced Corrupt Organization Act “RICO” as well as drug conspiracy, firearms conspiracy, and murder charges. U.S. District Judge Kurt D. Engelhardt sentenced KEELEN to serve life plus 10 years.
In June of 2017, KEELEN, LIONEL ALLEN, JAWAN FORTIA, BRYAN SCOTT and DELWIN MCLAREN were convicted following a 7-day trial. According to evidence presented at trial, KEELEN was a member of the “Young Melph Mafia” gang, also referred to as “YMM.” The YMM gang was initially formed in or about 2005 and continued to exist through 2014. During the course of the federal investigation into the gang, agents learned that the defendants controlled an area of Central City New Orleans along Martin Luther King Boulevard near the former Melpomene Housing Development. The gang, which started when the members were in their early teens, participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court in 2014. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
The jury found KEELEN guilty of conspiracy to commit RICO violations, conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine and a quantity of marijuana, conspiracy to possess firearms during and in relation to crimes of violence and drug trafficking crimes, assault with a dangerous weapon and two murders. Specifically, KEELEN was convicted of participating in the shooting deaths of Lawrence Burt and Vivian Snyder that occurred on December 16, 2012 on St. Andrew Street.
KEELEN was one of eleven defendants originally charged in August of 2014 in a superseding indictment involving gun and drug conspiracies. Five YMM defendants pled guilty to the conspiracy charges and were sentenced. JACOBI “CO” BOYD was sentenced to 480 months of incarceration; ALFRED “AL” COBBINS was sentenced to 252 months of incarceration; SHAWN “GUNNER” GRACIN was sentenced to 270 months of incarceration; RUBEN “RUE” GEIGER was sentenced to 220 months of incarceration; DARIUS “D-MAN” WILLIAMS was sentenced to 156 months of incarceration; and DEONTRE “SOULJA” HILLS was sentenced to 96 months of incarceration. In August of 2015, federal RICO and murder charges were added against the remaining defendants in a second superseding indictment. JEFFREY WILSON pled guilty to only drug charges and was sentenced to 180 months of incarceration. LIONEL ALLEN, JAWAN FORTIA, BRYAN SCOTT, and DELWIN MCLAREN, who went to trial with KEELEN, are awaiting sentencing.
“It is very important that we, in the law enforcement community, send a very strong message to these gangs that are wreaking havoc on our community,” said ATF Special Agent in Charge Dana Nichols. “If you continue to deal drugs, engage in violent crime, and devalue human life, you will go to prison for a very long time. With today’s sentence, Mr. Keelen will be spending the remainder of his life in federal prison.”
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Edward Rivera, Nolan Paige, and Nicholas Moses were in charge of the prosecution.