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Thursday 7 September 2017
Memphis Man with Multiple Prior Felonies Convicted of Possession with Intent to Manufacture and Distribute NarcoticsRead the Press Release
Memphis, TN – A federal jury has found a Memphis man guilty of trafficking narcotics, possession with intent to distribute and manufacture controlled substances and being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to information presented in court, in March 2015, Duane Anthony Rouch, 52, purchased narcotics from underground websites designed to enable users across the world to buy and sell illegal drugs and other illicit goods and services anonymously outside the reach of law enforcement. To purchase narcotics on the "Dark Web" Rouch used "cryptocurrency," a form of payment used to conceal the identity of the buyer and seller using third-party vendors.
In March 2015, Rouch received a package from China containing a pill mold. From 2015 until December 2016, he received packages containing microcrystalline cellulose, a binding agent used to manufacture pharmaceutical pills. The defendant ordered online from China and Canada and had them shipped on ten occasions to a warehouse address in Memphis, Tennessee.
On September 16, 2016, Memphis Homeland Security ("ICE") Agents received information from U.S. Customs and Border Protection ("CBP") about a Canadian company shipping contraband to Memphis, Tennessee. This company transships contraband from China to the United States and supplies pill presses and chemicals for producing counterfeit pills or tablets. Furthermore, CBP Officers provided that at least ten shipments had been forwarded to the warehouse in Memphis, Tennessee.
In December 2016, Officers with the Shelby County Sheriff’s Office obtained a state search warrant for the warehouse to search for illicit narcotics. Law enforcement found an unloaded Lorcin 9 millimeter pistol, iPhone 6, pill press covered in residue, several mixing containers and utensils coated with white powder, drug paraphernalia – methamphetamine pipes, scales, presses, Xanax pills, lab mixing utensils, and materials used to manufacture methamphetamine – and more than 5 grams of methamphetamine in a mail parcel. The search of Rouch’s iPhone 6 revealed multiple photos/videos consistent with drug trafficking. At the time of the search, Rouch was on parole for multiple felony offenses.
On Tuesday, September 5, 2017, a federal jury convicted Rouch of one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute alprazolam, one count of conspiracy to commit the trafficking of narcotics and one count of felon in possession of a firearm. Rouch is scheduled for sentencing on December 7, 2017. He is subject to a mandatory minimum sentence of ten (10) years on the methamphetamine related offenses.
This case is being investigated by the Border Enforcement Security Team, which consists of federal agents from the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service and local law enforcement offices. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in the investigation.
Special Assistant U.S. Attorneys Sam Stringfellow and Bryce Phillips are prosecuting this case on the government’s behalf.
McLaughlin Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Abusive Sexual Contact by Use of Force, Abusive Sexual Contact by Fear, and Abusive Sexual Contact, was sentenced on September 1, 2017, by U.S. District Judge Charles B. Kornmann.
Frankie Marshall, age 27, was sentenced to 180 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $300.
Marshall was indicted by a federal grand jury on April 12, 2017. He pled guilty on June 6, 2017.
The conviction stems from an incident on March 29, 2017, when Marshall was at the home of a friend, the victim, in Bullhead, South Dakota. The two were playing dice and cards. Marshall left at about 5:30 am to meet up with another person.
Marshall returned a short time later and asked if he could wait for his sister to come get him, which the victim allowed. Marshall began to shut all of the lights off and sat down next to her on the couch. Marshall asked her if she wanted to have a one-night-stand, and the victim declined. Marshall shoved her back on the couch, got on top of her, and attempted to shove his hands down her pants. Marshall grabbed her pants and started to pull them down while the victim was struggling to keep them up. Marshall pulled the victim’s pants and panties off, pulled his sweats down, and proceeded to rape her.
As the assault was happening, one of the victim’s relatives entered the home and turned on a light upon entering. When the light was turned on, Marshall pulled up his pants and fled the residence. The police were immediately summoned and members of the victim’s family attempted to locate Marshall, who fled Bullhead and went to Fort Yates, North Dakota, where he was located and arrested by Bureau of Indian Affairs Law Enforcement.
This case was investigated by the Bureau of Indian Affairs Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Indicted on Assault and Firearm ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assault of an Intimate Partner by Strangulation, Child Abuse, and Felon In Possession of a Firearm.
River Grey Bull, age 22, was indicted on May 16, 2017. He appeared before U.S. Magistrate Judge William D. Gerdes on August 29, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 11, 2016, Grey Bull assaulted his intimate partner by strangulation and suffocation. The Indictment further alleges that Grey Bull hit his intimate partner while she was holding her child and the blow carried through and hit the child. Grey Bull, having previously been convicted of a felony, is alleged to have knowingly possessed a firearm.
The charges are merely accusations and Grey Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Grey Bull was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mark H. Wildasin Appointed U.S. AttorneyRead the Press Release
Attorney General Jeff Sessions has appointed Mark H. Wildasin to serve as the U.S. Attorney for the Middle District of Tennessee, following the retirement of Acting U.S. Attorney Jack Smith.
Mr. Wildasin has served as the Civil Chief for the U.S. Attorney’s Office in Nashville since January 2006. As the Civil Chief, Mr. Wildasin oversaw a team of Assistant U.S. Attorneys responsible for litigating civil matters where the United States is either the plaintiff seeking to recover damages on behalf of the United States or acting to defend the government in defensive actions. As the Chief of the Civil Division he was also responsible for asset forfeiture and collecting debts owed to the United States. His team was responsible for collecting and recovering record numbers of debts and financial settlements on behalf of the government.
While serving as the Civil Chief, in October 2011 Mr. Wildasin was detailed to the American Embassy in Baghdad, Iraq, where he served for a year as an attorney advisor in the Office of the Justice Attaché.
Prior to joining the U.S. Attorney’s Office, Mr. Wildasin was a member of the Nashville law firm Waller, Lansden, Dortch & Davis, specializing in commercial litigation including trademark, copyright, antitrust, and other competition issues.
Mr. Wildasin previously practiced antitrust and intellectual property litigation as an associate, then partner, in the San Francisco office of the international law firm Coudert Brothers and was clerk to the Honorable Thomas A. Higgins, U.S. District Judge for the Middle District of Tennessee. He received his A.B. degree in political science from Duke University, and earned his law degree from Vanderbilt Law School in 1991 where he was Research Editor for the Vanderbilt Journal of Transnational Law.
Mr. Wildasin will serve in this capacity for 120 days or until a presidentially appointed U.S. Attorney is confirmed by the United States Senate.
Local Medical Doctor Pleads Guilty to Illegally Dispensing and Distributing Controlled Substances by Prescriptions and Money LaunderingRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that FREDERICK FLOYD, D.O., age 58, a physician who practiced and resided in New Orleans, pled guilty today to a two-count Bill of Information charging him with illegally dispensing controlled substances and money laundering.
On July 7, 2017, DR. FLOYD was arrested on charges of distribution of controlled substances. According to court records, DR. FLOYD illegally dispensed and conspired with others to illegally dispense controlled substances, including Oxycodone, a Schedule II controlled substance, and other controlled substances. The original charge, contained in a complaint filed in court, states that DR. FLOYD dispensed more than 4.8 million dosages of controlled substances by prescriptions between January 1, 2015 and August 31, 2016.
DR. FLOYD made his initial appearance before U.S. Magistrate Court Judge Michael B. North on July 10, 2017. A detention hearing was held on July 12, 2017, and he has been detained since that date.
DR. FLOYD will face a mandatory term of 10 years in prison on the charges if the Court accepts the plea agreement. DR. FLOYD will also be subject to a fine of $1,250,000 and a term of supervised release of at least three years, following any term of imprisonment. U.S. District Judge Carl J. Barbier set sentencing on December 28, 2017.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Drug Enforcement Administration, Internal Revenue Service, New Orleans Police Department, Jefferson Parish Sheriff’s Office, Harahan Police Department, Westwego Police Department, New Orleans District Attorney’s Office, Kenner Police Department, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney John F. Murphy is in charge of the prosecution.
Little Eagle Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on September 1, 2017, by U.S. District Judge Charles B. Kornmann.
Charles Eagle Pipe, age 44, was sentenced to 45 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Eagle Pipe was indicted by a federal grand jury on March 15, 2017. He pled guilty on June 12, 2017.
The conviction stems from an incident on March 29, 2015, when a Bureau of Indian Affairs officer who was patrolling in Little Eagle, was informed of an incident occurring at the home of the victim. The officer responded and was informed that Eagle Pipe had taken her car, without permission, and returned highly intoxicated. Eagle Pipe refused to return the keys to the victim, assaulted her, then grabbed a knife and began to cut himself with it. Eagle Pipe then went across the street to his mother’s residence. The officer went across the street and placed Eagle Pipe under arrest, following a brief scuffle.
Upon securing Eagle Pipe in the vehicle, the officer went back across the street to where the victim was standing. She showed the officer where Eagle Pipe had thrown the knife, and she also showed the officer marks on her legs where she stated Eagle Pipe had kicked her. At the time of this incident, Eagle Pipe had seven prior convictions for Domestic Abuse in Standing Rock Tribal Court that would have been, if subject to federal jurisdiction, assaults against a spouse or intimate partner.
This case was investigated by the Bureau of Indian Affairs Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Eagle Pipe was immediately turned over to the custody of the U.S. Marshals Service.
Leader of Bank Fraud Conspiracy Sentenced to Ten Years in Federal PrisonRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On September 6, 2017, U.S. District Judge Paula Xinis sentenced Brian Diggs, age 45, of Brandywine, Maryland, to ten years in federal prison followed by five years of supervised release for conspiracy to commit bank fraud and aggravated identity theft. Judge Xinis ordered forfeiture of $393,702. A restitution amount will be determined at a later hearing. The scheme to defraud involved applications for over $1,500,000 in car loans.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre Watson of Homeland Security Investigations, Baltimore Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to his plea agreement, Diggs and eight co-conspirators defrauded numerous federal credit unions by applying for vehicle loans using false personal and financial information. Often Diggs and his co-conspirators identified cars for purchase that they had no intention of obtaining. On certain occasions, Diggs and his co-conspirators applied for and obtained vehicle loans on the same vehicle at different credit unions. Diggs and his co-conspirators nominally agreed to sell vehicles, obtained money from vehicle sales, and then did not provide the vehicles to buyers. Diggs and his co-conspirators failed to make payments toward vehicle loans, thereby often resulting in the vehicles being repossessed by credit unions and other lending institutions. In at least one instance, Diggs and co-conspirator Derrick Byas, Jr., used the name of a living victim on a fake driver’s license to obtain a loan from a credit union.
The fraud scheme affected more than ten financial institutions and employed sophisticated means, including fake documents, fake addresses, and false Social Security numbers. Diggs was the leader and organizer of the scheme.
Acting United States Attorney Stephen M. Schenning thanked HSI and the Prince George’s County Police Department for their work on the investigation. Mr. Schenning commended Assistant U.S. Attorneys Joseph Baldwin, Erin Pulice, and Thomas Windom who are prosecuting the case.
Kyle Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man convicted of two counts of Abusive Sexual Contact was sentenced on September 5, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Darrell Janis, age 58, was sentenced to 8 years in custody, followed by 5 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Janis was indicted by a federal grand jury in October 2016. He was subsequently found guilty following a trial in Federal District Court in Rapid City on May 11, 2017.
The conviction stems from Janis using force to have sexual contact with a child, who was between the ages of 12 and 16, on December 11, 2015, at Kyle.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Janis was immediately turned over to the custody of the U.S. Marshals Service.
Jury Convicts Atlanta-Based Supplier of Heroin and Methamphetamine to Cartel-Linked Drug Trafficking Organization in BradentonRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Alexis Hernandez (52, Lilburn, GA) guilty of conspiracy to distribute more than one kilogram of heroin and more than five hundred grams of methamphetamine. He faces a minimum mandatory sentence of 20 years, up to life, in federal prison. His sentencing hearing is scheduled for November 30, 2017.
Hernandez was charged in a superseding indictment on April 25, 2017, along with five other members of a Bradenton-based drug trafficking organization. Damien Avellaneda-Hernandez, Gonzalo Delarosa, a/k/a “Gordo,” Glenn Olvera, and Sergio David Gutierrez-Olmos, a/k/a “Chavo,” a/k/a “Chilango” previously pleaded guilty for their roles in this case. On August 31, 2017, Gutierrez-Olmos was sentenced to 10 years in federal prison. The others will be sentenced in the near future. Francisco Avellaneda-Hernandez, a/k/a “Flaco,” remains at large.
According to evidence presented at trial, Hernandez was a supplier of heroin and methamphetamine to the Francisco Avellaneda-Hernandez Drug Trafficking Organization, a group with ties to a cartel based in Michoacan, Mexico, and operating in Florida, Georgia, Texas, New Jersey, New York, and Massachusetts. Between January and August 2016, law enforcement officers seized more than 20 kilograms of methamphetamine in the Middle District of Florida linked to the organization. In addition, evidence was presented at trial showing that Hernandez and others had arranged the transport of 2 kilograms of heroin and 1.5 kilograms of methamphetamine to Manhattan. Hernandez was arrested in Manhattan on September 27, 2016.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Amarillo Sky.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the U.S. Customs and Border Patrol, the Polk County Sheriff’s Office, the Manatee County Sheriff’s Office, the Pasco County Sheriff’s Office, the Hardee County Sheriff’s Office, the Lakeland Police Department, the Plant City Police Department, and the New York Police Department. It is being prosecuted by Assistant United States Attorneys Dan Baeza and Diego Novaes.
Iowa Couple Sentenced for Fraud and Theft of Government FundsRead the Press Release
A couple who committed fraud against the government were sentenced for fraud and theft of government funds.
Kimberly Calles-Sheker, 43, and Oscar Calles, 44, both from Fort Dodge, Iowa, received their prison terms after May 16, 2017 and July 6, 2017, guilty pleas. Calles-Sheker pled guilty to one count of theft of government funds and Calles pled guilty to three counts of fraud or misuse of documents to obtain employment.
At the guilty plea hearings, Calles-Sheker admitted that from 1995 through April 2016, she improperly received benefits from the Supplemental Nutrition Assistance Program (SNAP); Family Investment Program (FIP); and Medical Assistance (Medicaid Title XIX). Eligibility for these programs is based on an applicant’s income, household composition and resources. Between about August 2012 and March 2016 Calles-Sheker and Oscar Calles resided together. During this time, Calles’s income was being deposited into a joint bank account with Calles-Sheker. Even though Oscar Calles was residing with Calles-Sheker and was employed, Calles-Sheker did not report his income when completing the required documentation for eligibility for these assistance programs. In fact, the only household income reported was approximately $753 in Social Security and Social Security Disability income that Calles-Sheker received each month. It has been determined their household received $32,080.57 in overpaid public assistance between November 2012 and April 2016. Oscar Calles admitted that he was an illegal alien from Mexico, but was employed by various employers and committed fraud by using the stolen identity of a deceased United States citizen, Francisco Aguilera to obtain and maintain employment in the United States. Specifically, Calles was employed at the following companies: D&H Poultry of Sibley, Osceola County, Iowa; Sparboe Farms of Eagle Grove, Iowa; Centrum Valley Farms of Clarion, Iowa; and Daybreak Foods, Inc. of Webster City, Iowa.
Both were sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Calles-Sheker was sentenced to 5 years’ probation and was ordered to pay $32,080.57 in restitution to Iowa Department of Human Services. She must also pay a special assessment of $100. Calles was sentenced to time served of 191 days’ imprisonment. He must also pay a special assessment of $300. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Calles is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Kevin C. Fletcher and Shawn S. Wehde and investigated by USDA-OIG, Iowa Department of Inspections and Appeals (IDIA), and U.S. Department of Homeland Security.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4010.
Follow us on Twitter @USAO_NDIA.
Internet Predator Sentenced to 40 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Chad Theodore Dillon (45, Okaloosa County) to 40 years in federal prison for online enticement of a child to engage in sexual activity. The Court also ordered him to forfeit the 2006 Ford F-150 truck he had used to meet a victim.
Dillon pleaded guilty on January 18, 2017.
According to court documents, this investigation began in April 2016, when an agent from the Florida Department of Law Enforcement conducted an undercover investigation to identify users of a particular app who were attempting to entice and sexually exploit children. On April 22, 2016, an FDLE undercover agent published a post that read, “Being 13 and being alone is just no fun at all.” Within a few minutes, the agent received a private message from “Ice Whale,” that read, “R u m or f?,” which initiated a conversation between the two. During the conversation, “Ice Whale,” later determined to be Dillon, repeatedly solicited the “child” for sexual acts. Dillon also offered to have sex with the “child’s” 12-year-old “friend,” who he believed to be sleeping over at the “child’s” house. He also claimed to have had sex with 12-year-olds a “couple times.” Dillon provided his cellphone number to the “child” and claimed that his name was “Cory.” Despite repeated conversation, Dillon declined to meet with the “child” for the sexual encounter discussed. However, further investigation revealed that Dillon had previously solicited a 13-year-old child online to produce nude images of herself.
After determining that “Ice Whale” was Dillon, FDLE agents obtained a warrant for Dillon’s cellphone and found chat messages revealing he had traveled to Georgia to have sex with a minor, and had enticed a different child to produce pornography and to meet him for sex.
“FDLE appreciates the assistance of the Jacksonville Sheriff’s Office and the FBI in safely apprehending this predator, and commends the U.S. Attorney’s Office’s diligence in prosecuting this case,” said Commissioner Rick Swearingen. “We are focused on protecting families and removing these threats to our children.”
"The FBI Jacksonville Division and our law enforcement partners are committed to identifying those who prey on our children, and this case is one example of our relentless efforts to stop them," said Special Agent in Charge Charles P. Spencer. “Today’s sentencing sends a message that child exploitation is a threat that will not be ignored, and we will stop at nothing to protect these innocent victims, and seek justice for the heinous acts committed against them.”
This case was investigated by Florida Department of Law Enforcement and the Federal Bureau of Investigation, with assistance from the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Illegal Mexican Sentenced for Possession of a FirearmRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that EDUARDO TORRES-GUERRERO, age 24, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment charging him with possession of a firearm by an illegal alien.
U.S. District Judge Lance M. Africk sentenced TORRES-GUERRERO to 16 months imprisonment, followed by three years of supervised release. Upon completion of his sentence, TORRES-GUERRERO will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, on February 8, 2017, TORRES-GUERRERO was stopped by the Jefferson Parish Sheriff’s Department and discovered to be in possession of a SUW .32 caliber firearm, serial number 145765. TORRES-GUERRERO illegally entered the United States prior to February 8, 2017, and had no pending status adjustments with the Citizenship and Immigration Services.
Acting U.S. Attorney Evans praised the work of the Immigration and Customs Enforcement Agency and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Honduran National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CARLOS ALBERTO PINEDA-CANTOR age 40, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Lance M. Africk sentenced PINEDA-CANTOR to 15 months imprisonment, followed by 1 year of supervised release, and $100 special assessment. Following completion of his sentence, PINEDA-CANTOR will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about December 31, 2016, PINEDA-CANTOR was found in the United States after having been officially deported and removed on or about December 26, 2007.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Guatemalan National Pleads Guilty to Illegally ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that VENACIO ORTIZ-LEON age 29, a citizen of Guatemala, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien.
According to the Bill of Information, on or about June 3, 2017, ORTIZ-LEON was found in the United States after having been officially deported and removed on or about January 27, 2011.
ORTIZ-LEON faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100.00 special assessment. U.S. District Judge Carl J. Barbier set sentencing for November 16, 2017.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Gresham Man Sentenced to 96 Months in Federal Prison for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore. – On Wednesday, September 6, 2017, United States District Court Judge Marco A. Hernandez sentenced Nicolas Allen Harms, 26, of Gresham, to 96 months in federal prison followed by 3 years of supervised release. Harms had previously pleaded guilty to one count of being a felon in possession of a firearm in violation of 18 U.S.C. §§ 992(g)(1) and 924(a)(2).
According to court documents, in late 2015, Gresham Police Officers received information that Harms was selling heroin. Using a confidential informant, officers conducted a controlled buy of heroin from Harms. On December 8, 2015, officers executed a search warrant on Harms’ hotel room and found approximately 35 grams of heroin, 17 grams of methamphetamine, a loaded .357 revolver, digital scales and drug packaging material. Officers also found 3.5 grams of methamphetamine and $440 in cash on the defendant’s person.
Following the search of the hotel room, officers developed information that Harms possessed a storage unit. A subsequent search of the unit resulted in the recovery of a short-barreled .22 caliber rifle, a shotgun and paperwork and materials related to his drug dealing. Harms was arrested and indicted in federal court. He later admitted to being a felon and illegally possessing the three recovered firearms: an Amadeo Rossi .357 caliber revolver, a Winchester 12 gauge shotgun and a Ruger .22 caliber rifle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Gresham Police Department and the United States Attorney’s Office for the District of Oregon and was prosecuted by Scott M. Kerin, Assistant United States Attorney for the District of Oregon.
Grand Jury Indicts Couple Texting on Aircraft about Child MolestationRead the Press Release
Two Tacoma, Washington residents who were observed texting on an airplane about sexually molesting children have been indicted by a grand jury in Seattle, announced U.S. Attorney Annette L. Hayes. MICHAEL KELLAR, 56, and GAIL LYNN BURNWORTH, 50, were arrested last month after an alert passenger on a flight to San Jose, California noticed disturbing texts between KELLAR, who was on the plane, and BURNWORTH, who was in Tacoma. BURNWORTH had access to two minor children. The indictment was returned on Wednesday, September 6, 2017. The pair are scheduled for arraignment on the indictment in U.S. District Court in Tacoma on September 18, 2017.
“Two children are safe tonight because an observant passenger on a plane did the right thing,” said U.S. Attorney Annette L. Hayes. “I commend law enforcement who quickly acted to get these defendants into custody, and protect two children from sexual abuse.”
Both KELLAR and BURNWORTH are charged with conspiracy to produce child pornography. KELLAR is charged with two counts of attempted enticement of a minor in connection with his communication to BURNWORTH regarding the sexual exploitation and rape of each of the minor children.
Conspiracy to produce child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison and a $250,000 fine. Attempted enticement of a minor is punishable by a mandatory minimum ten years in prison and up to life in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
BURNWORTH is charged in Pierce County Superior Court with child rape, child molestation and two counts of sexual exploitation of a minor.
Both defendants remain in custody.
The case is being investigated by the FBI with assistance from the San Jose, California Sheriff’s Office, and the Seattle Police Department Internet Crimes against Children Task Force (ICAC).
The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Georgetown Woman Sentenced for Embezzling over $60,000 Dollars from EmployerRead the Press Release
BOSTON – A Georgetown woman was sentenced today in federal court in Boston for embezzling over $60,000 from her former employer.
Michelle Higson, 41, was sentenced by U.S. District Court Judge Denise J. Casper to three months in prison, nine months of home confinement, three years of supervised release, and ordered to pay restitution of $60,290. In April 2017, Higson pleaded guilty to one count of bank fraud and two counts of uttering a forged security.
Higson worked as a part-time bookkeeper at a Rowley-based company where she was responsible for handling the company’s accounts payable by using the company’s accounting software program. From December 2013 through January 2015, Higson stole a series of the company’s checks and made them payable to cash. Higson then forged her employer’s signatures on the stolen checks, endorsed them herself, and deposited them for cash, which she used for personal expenses.
To conceal her criminal conduct and avoid detection by company officials, Higson falsified entries in the company’s general ledger to make it appear as if the stolen checks had been issued to satisfy payment to bona fide vendors. In total, Higson embezzled over $60,000.
Acting United States Attorney William D. Weinreb and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Anne Paruti of Weinreb’s Major Crimes Unit prosecuted the case.
Gang Leader Sentenced for Drug DistributionRead the Press Release
BOSTON – A leader of the Boston street gang, Columbia Point Dawgs, was sentenced today in federal court in Boston for trafficking oxycodone.
Demetrius Williams, a/k/a Troll, 30, of Roxbury, was sentenced by U.S. District Court Judge Richard G. Stearns to 151 months in prison and five years of supervised release. In December 2016, Williams pleaded guilty to RICO conspiracy and conspiracy to possess with intent to distribute cocaine, cocaine base and heroin. Demetrius Williams, one of 48 defendants tied to the CPD, was indicted in June 2015 on racketeering, drug trafficking, and firearms charges.
Williams, was involved in the importation and distribution of at least 880 grams of cocaine base, 10 kilograms of cocaine, and 700 grams of heroin in Massachusetts, along with other members and associates of the Columbia Point Dawgs (CPD), including his brothers Yancey Williams and Herbert Small, and father Yancey Calhoun.
According to documents filed in court, the CPD, also known on the street as “the Point,” was Boston’s largest and most influential citywide gang. The criminal organization started in the 1980s in the former Columbia Point Housing Development (now Harbor Point) and, over the years, gang members established drug trafficking crews throughout Boston. It is alleged that the CPD was responsible for the distribution of multiple kilo quantities of heroin, cocaine, crack cocaine, and oxycodone throughout Boston and Maine.
Yancey Williams previously pleaded guilty and is scheduled to be sentenced on Sept. 19th; Herbert Small pleaded guilty and was sentenced in August 2017 to 37 months in prison; and Yancey Calhoun also pleaded guilty and was sentenced in December 2016 to 60 months in prison.
Acting United States Attorney William D. Weinreb; Suffolk County District Attorney Daniel F. Conley; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Boston Police Commissioner William Evans; and Commissioner Thomas Turco of the Massachusetts Department of Correction, made the announcement.
Fort Wayne Man Sentenced to Life ImprisonmentRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Larry Norton, age 66, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann for conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine and 1 kilogram or more of heroin. He was found guilty after a 6-day jury trial in May of 2017.
Norton was sentenced to life imprisonment.
According to documents in this case, Norton faced a statutory mandatory minimum sentence of life imprisonment without release because he has two prior final felony drug convictions. Norton’s criminal history actually consisted of three felony drug convictions, two convictions for dealing and distributing cocaine (one federal and one state) and another conviction for possessing cocaine.
This case was investigated by the Federal Bureau of Investigation Fort Wayne Safe Streets Task Force, which includes FBI, Indiana State Police, Allen County Police Department, and the Fort Wayne Police Department. The case was prosecuted by Stacy R. Speith and Anthony W. Geller.
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Fort Wayne Man Sentenced to 22 Months ImprisonmentRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Dean Zimmerman, age 48, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann on his plea of guilty to the charge of conspiracy to commit mail fraud.
Zimmerman was sentenced to 22 months imprisonment followed by 1 year of supervised release. Restitution was ordered payable to the victims, United Technologies Electronic Controls, Inc. and PayPal, Inc. the total sum of $346,753.33, and a 1 million dollar money judgement was also entered. Additionally, 103 items, which include sums of U.S. currency and various items of property (ie computers, jewelry, coins, firearms and vehicles) were ordered forfeited as proceeds of his criminal conduct.
According to documents filed in this case, from on or about January 1, 2014 and continuing until on or about May 17, 2016, Zimmerman conspired with his wife Linda Zimmerman to devise a scheme to obtain money through fraud by stealing property from his employer and then selling the stolen property on eBay and utilizing the United States Postal Service to deliver the stolen merchandise to unwitting buyers. Linda Zimmerman has plead guilty to the same charge, conspiracy to commit mail fraud and is awaiting sentencing.
This case was the result of an investigation by the Federal Bureau of Investigations with the assistance of the Indiana State Police and the Huntington Police Department and was handled by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
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Fort Hall Man Sentenced to a Life Term in Federal PrisonRead the Press Release
POCATELLO – Anthony Martin Ish, 34, of Fort Hall, Idaho, was sentenced today to life imprisonment by Senior U.S. District Judge Edward J. Lodge, Acting U.S. Attorney Rafael Gonzalez announced. A jury convicted Ish of second degree murder and assault with a deadly weapon on February 14, 2017, following a one-week jury trial in Pocatello, Idaho.
Evidence at trial established that on the evening of October 14, 2014, Ish shot and killed Darrel Auck outside Ish’s grandmother’s mobile home on the Fort Hall Indian Reservation. Auck and several others were in attendance for Ish’s birthday party. Eye witnesses testified that Ish fired a pistol at Auck several times, at close range, while Auck was trying to get away. Extensive search efforts were conducted by law enforcement and the community, including the Federal Bureau of Investigation, the Fort Hall Police Department, Shoshone-Bannock Tribes, and Search and Rescue, but Auck’s body has not been recovered.
This case was investigated by the Federal Bureau of Investigation and the Fort Hall Police Department.
Former UND Flight Instructor Sentenced on Child Pornography ChargesRead the Press Release
FARGO – United States Attorney Christopher C. Myers announced that on September 5, 2017, former University of North Dakota Flight Instructor ERIC HEWITT BASILE, age 38, of Grand Forks, ND, was sentenced before United States District Court Judge Ralph R. Erickson to serve 16 ½ years in prison for his role in Receiving and Distributing Materials Containing Child Pornography, as well as Possession of Materials Containing Child Pornography. Judge Erickson further sentenced Basile to serve 15 years of supervised release and to pay $24,000 in special assessments to the Crime Victims’ Fund.
This case came to the attention of law enforcement after two University of North Dakota students separately reported to the UND Police Department that Basile, a then-UND faculty member, had engaged in inappropriate behavior. Based upon those reports, the UND Police Department seized Basile’s UND-issued computer for forensic examination. A preliminary search of the computer revealed child pornography, at which point the matter was turned over to agents with the Department of Homeland Security - Homeland Security Investigations and the North Dakota Bureau of Criminal Investigation for further investigation. During the course of their investigation, law enforcement obtained search warrants for Basile’s office and home, at which time additional media was seized. A subsequent forensic examination of this media revealed additional child pornography videos and images depicting children as young as babies and toddlers being violently sexually abused. The investigation also revealed that Basile traded some of those images and videos with other individuals and also engaged in online chats with those individuals, wherein he discussed his desire to sexually abuse young children.
This case is the result of an investigation conducted by the University of North Dakota Police Department, Grand Forks Police Department, Department of Homeland Security – Homeland Security Investigations, and the North Dakota Bureau of Criminal Investigation.
Assistant United States Attorney Jennifer Klemetsrud Puhl prosecuted the case.
http://www.usdoj.gov/usao/nd
Former Quincy Police Lieutenant Sentenced for “Double Dipping”Read the Press Release
BOSTON – A former Lieutenant with the Quincy Police Department (QPD) was sentenced today in federal court in Boston after a jury found him guilty of collecting double pay in 2015.
Thomas Corliss, 52, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison and one year of supervised release. In June 2017, Corliss was convicted following an eight-day jury trial of 10 counts of mail fraud and one count of fraud involving federal funds.
An internal investigation by the QPD revealed that Corliss had “double dipped,” or collected double pay for working multiple details and/or police shifts that overlapped on multiple occasions in 2015. While on vacation in the Bahamas and on Martha’s Vineyard in 2015, Corliss left himself on the daily roster rather than using vacation time. In total, Corliss defrauded the QPD of more than $8,000.
Acting United States Attorney William D. Weinreb; Ronald G. Gardella, Special Agent in Charge of the Department of Justice, Office of the Inspector General, New York Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Weinreb’s Public Corruption Unit prosecuted the case.
Former Owner of Boston Forensic Accounting Firm Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – The former owner of a Boston forensic accounting firm pleaded guilty today in federal court in Boston to understating his income by hundreds of thousands of dollars on his personal income tax returns.
James Carey, 50, pleaded guilty to two counts of making material misstatements on his 2009 and 2010 personal income tax returns. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Nov. 29, 2017. In April 2017, Carey was indicted on two counts of filing false federal tax returns.
Carey, a certified public accountant, owned Carey & Company, a forensic accounting firm in Boston. Carey & Company administered bank accounts on behalf of insurance companies into which the insurance companies and their clients could make deposits, and from which payments could be made on behalf of and to the insurance companies. In November 2009, a customer of one of the insurance companies sent Carey & Company a payment of $594,217 intended for the insurance company, but during the months that followed, Carey transferred almost all of that money out of the account and used it for his own purposes. The money Carey misappropriated from the insurance company was taxable income, which Carey failed to report on his personal income tax return. In addition, in 2010, Carey reported less than one-third of his business’s actual income on his personal income tax return.
The charging statute provides for a sentence of no greater than three years in prison, one year of supervised release, a fine of $250,000, and restitution of unpaid taxes. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Stephen Heymann and Sara Bloom of Weinreb’s Economic Crimes Unit are prosecuting the case.
Former Loan Broker Pleads Guilty to Defrauding Small BusinessesRead the Press Release
BOSTON – A Saugus loan broker pleaded guilty yesterday in federal court in Boston to operating a scheme that defrauded small businesses from across the country in connection with their efforts to obtain business loans.
Joseph L. Angelo Jr, 59, pleaded guilty to 11 counts of wire fraud. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Nov.29, 2017.
From November 2011 to March 2015, Angelo defrauded 10 small business owners of more than $1 million by representing that his companies – Lease One Corp. and Palmtree Finance & Funding LLC – were brokers for obtaining loans for small businesses. Angelo required the customers to deliver to him what he said were fully refundable deposits, aggregating over $1.1 million, for loans that he said had been approved and would be funded within a few days. In fact, none of the loans had been approved and there were no funds available. When the small business owners complained about delays in receiving funds, Angelo promised that their deposits would be refunded, but he did not refund any of the deposits or secure funding for any of the requested loans.
The charging statute provides for a sentence of no greater than 20 years in prison, five 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 D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Weinreb’s Economic Crimes Unit.
Former Employee of Metro Real Estate Company to Serve 34 Months in Prison for Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – JAMES LEE WARD, JR., of Luther, was sentenced today to 34 months in federal prison for making a forged security and filing a false tax return in connection with his embezzlement of more than $250,000 from a metro real estate company, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Ward is a former Title Closing Coordinator at Paradigm AdvantEdge, LLC ("Paradigm"), a real estate company in Oklahoma City. According to the Information filed in the case, Ward forged a $6,900 check from Paradigm payable to a bogus business entity under his control, made to look like a legitimate payee in Paradigm’s real estate transactions. At his plea hearing on March 16, 2017, Ward admitted that he forged the signature of a Paradigm owner and issued the $6,900 check to himself without the approval of Paradigm. In a plea agreement, Ward agreed that the total loss from his embezzlement was $250,415.00. The Information also alleged that Ward submitted a false federal income tax return for 2014 by failing to report substantial income from the embezzlement. At his plea hearing, Ward admitted that he omitted approximately $140,000 of embezzled income from Paradigm on his 2014 return.
United States District Judge Joe Heaton sentenced Ward to 34 months of imprisonment, followed by three years of supervised release. Ward was ordered to pay restitution to Paradigm and its insurers in the total amount of $250,415.00. He was also ordered to pay $50,777.72 in restitution to the Internal Revenue Service for federal income tax due from his unreported embezzlement income. Ward must report to federal prison on October 6, 2017.
This case is the result of an investigation conducted by the Internal Revenue Service–Criminal Investigations. Assistant U.S. Attorney Chris M. Stephens prosecuted the case.
Former Clearwater Pawnshop Owner Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Craig Reckley to 12 months and 1 day in federal prison for his role in a stolen identity refund fraud scheme. As part of his sentence, the Court also ordered him to pay $166,745.61 in restitution to the Internal Revenue Service.
Reckley pleaded guilty on May 4, 2017.
According to court documents, Reckley obtained and deposited 37 United States Treasury checks into his business’s bank account. The checks represented refunds from the filing of false and fraudulent income tax returns in the names of victim taxpayers. During his involvement in the scheme, Reckley was the owner and proprietor of Quick Cash Pawn of Pinellas, located in Clearwater.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with assistance from the Clearwater Police Department. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Former Amazon Financial Analyst Pleads Guilty to Insider TradingRead the Press Release
A former financial analyst at Amazon.com, Inc., pleaded guilty today in U.S. District Court in Seattle to securities fraud involving insider trading, announced U.S. Attorney Annette L. Hayes. BRETT D. KENNEDY, 26, currently of Blaine, Washington, admitted that in April 2015, he provided non-public quarterly financial results to a friend who then purchased Amazon stock and sold it at a profit once the results were made public. The friend paid KENNEDY for this inside information. KENNEDY is no longer employed by Amazon. Chief U.S. District Judge Ricardo Martinez scheduled sentencing for December 8, 2017.
“Insider trading of any kind corrodes trust in one of the crown jewels of our country -- our financial markets,” said U. S. Attorney Annette L. Hayes. “As this case demonstrates, we work closely with our law enforcement partners – including the FBI and the SEC – to investigate and hold accountable those involved in this serious crime.”
According to the information filed in the case, KENNEDY began work as a financial analyst at Amazon in 2013. As part of his employment he signed a confidentiality statement that he would not disclose Amazon’s non-public financial information outside the company. The policy specifically mentions information such as earnings and losses as material confidential information. In April 2015, KENNEDY used his access to view and write down Amazon first quarter earnings that were going to be announced later in the month. KENNEDY provided this information to his friend. After viewing the information, the friend purchased 4400 shares of Amazon stock for $1.7 million. When the positive earnings news was announced publicly, and the stock price rose, the friend sold the shares for a gain of nearly $116,000.
The friend paid KENNEDY $10,000 in cash for the information.
As part of the plea agreement, the government will recommend KENNEDY serve no more than a year and a day in prison. However, the judge is not bound by that recommendation and KENNEDY could be sentenced to the maximum penalty of up to 20 years in prison and $5 million fine.
The Securities and Exchange Commission today filed civil charges against KENNEDY. In its complaint it identifies the friend as Maziar Rezakhani, and names him as a defendant. Rezakhani, 28, is currently serving a five year prison term for defrauding a bank, Apple, Inc., and various shipping and insurance companies. The insider trading investigation grew out of the investigation into Rezakhani’s frauds. The SEC is seeking disgorgement of all profits from Rezakhani’s alleged illegal trading. KENNEDY agreed to a settlement with the SEC. Details of the SEC action are available here.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Brian Werner.
Former Alabama Legislator Pleads Guilty to Bribery Conspiracy, Fraud and Tax EvasionRead the Press Release
BIRMINGHAM – A former Alabama legislator pleaded guilty today in federal court to accepting bribes from a Birmingham lawyer and an Alabama coal company executive in exchange for advocating their employers’ opposition to 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 plea.
Former state representative OLIVER L. ROBINSON JR., 57, of Birmingham, entered his guilty pleas before U.S. District Court Judge Abdul K. Kallon to conspiracy, bribery and honest services wire fraud. The U.S. Attorney’s Office charged Robinson in June for accepting a valuable contract between the Birmingham law firm Balch & Bingham and the Oliver Robinson Foundation to influence and reward Robinson for using his position as a member of the Alabama House of Representatives, vice-chairman of the Jefferson County Legislative Delegation, and as an elected representative of citizens of Birmingham to pressure and advise public officials to oppose the Environmental Protection Agency’s prioritization and expansion of a North Birmingham EPA Superfund site.
Robinson represented Alabama’s House District 58 from 1998 until he resigned Nov. 30, 2016. As part of his plea, he agrees never again to seek elected office and to pay restitution and forfeiture in amounts to be determined. He is scheduled for sentencing Dec. 7 and remains free on bond.
“This lamentable pursuit of self-interest masquerading as beneficial for the little guy is more than a violation of our laws. This was a violation of the public trust and among the worst breaches of our social contract,” Town said. “All those engaged in public corruption must be brought to justice, and it matters not their benefactor or station.”
“The FBI’s stance on public corruption is that of zero tolerance and therefore it is one of our highest priorities,” Sharp said. “Public corruption is among the most serious of criminal violations and a betrayal of the public’s sacred trust. If allowed to spread unchecked, it can threaten the foundation of our government. The FBI continues to aggressively pursue those who participate in this type of crime.”
"The enforcement of tax administration is compromised with every attempt to undermine the tax system," Dorsey said. "Engaging in public corruption does not qualify as a tax exemption. The totalities of Mr. Oliver’s actions are egregious, devastating, and disappointing to the community in which he promised to serve."
Outside of the bribery charges, Robinson also pleaded guilty today to two counts of wire fraud for spending $17,783 of campaign contributions on personal items unrelated to his legislative campaigns. He pleaded guilty to a third wire fraud count for soliciting money from corporations, representing he would use it to publish a magazine or to defray costs for an annual Partnering for Progress Business Conference or the annual Alabama Black Achievers Awards Gala, which the Oliver Robinson Foundation sponsored. Robinson spent at least $250,000 of those contributions on personal items unrelated to the magazine or the annual events. Robinson also pleaded guilty to one count of tax evasion for the 2015 calendar year.
According to Robinson’s plea, the bribery conspiracy occurred as follows:
EPA 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 Company, that they could potentially be responsible for the pollution. A company determined to be responsible for pollution within the site, known as the 35th Avenue Superfund Site, potentially faced multi-million dollar clean-up costs and fines.
In July 2014, EPA began considering the petition of a Birmingham environmental advocacy group, GASP, to expand the Superfund site to the Tarrant and Inglenook neighborhoods. EPA granted that petition in October 2014 and contracted with the Alabama Department of Environmental Management to perform the preliminary assessment.
In September 2014, EPA proposed adding the Superfund site to its National Priorities List, signaling that it required priority attention. Placement on the priorities list would allow 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. EPA’s decision on priority listing for the site remained pending throughout the scheme.
Balch & Bingham represented Drummond and ABC Coke in relation to the 35th Avenue site. A partner at Balch & Bingham, identified in the charges as “Attorney #1,” coordinated the response to EPA’s actions on behalf of ABC Coke and Drummond Company. A Drummond Company executive, identified as “Drummond Employee #1,” was involved with the attorney in responding to EPA. They formed the Alliance for Jobs and the Economy as a tax-exempt corporation in 2015 to raise money to help fund their opposition to the EPA actions, according to the charges.
The strategy employed by the attorney and the Drummond executive focused on protecting ABC Coke and Drummond from the tremendous potential costs associated with being held responsible for pollution within the affected areas. They sought to accomplish this goal by working to prevent EPA from listing the 35th Avenue site on the National Priorities List and expanding the Superfund site into Tarrant and Inglenook.
The plan included advising residents of North Birmingham and public officials to oppose EPA’s actions. As part of the overall strategy, Balch & Bingham paid Robinson, through his non-profit foundation, to represent Balch & Bingham’s and its clients’ interests, exclusively, in matters related to EPA’s actions in North Birmingham. Over the course of the contract in 2015 and 2016, Balch & Bingham paid $360,000 to the foundation.
One of the first tasks assigned to Robinson under the contract was to appear before the Alabama Environmental Management Commission and the director of the Alabama Department of Environmental Management in February 2015 to advance Balch & Bingham’s and its clients’ opposition to the Superfund proposals. In that appearance, Robinson said he was “really here today to try to protect the residents of north Birmingham.” He said, “[T]he thing that gets me and what is in the process of hurting the residents in that area is that the EPA has included five other corporations in on this process, but there have been no reports stating that these individuals are culpable in any way. And where that hurts the residents is the fact that we will have decades of litigation that will occur because of these five companies being added.”
Robinson asked the AEMC to help narrow the list of potentially responsible parties if there were no reports or tests implicating the corporations. Concluding, Robinson told the AEMC that if the areas of North Birmingham are designated as a Superfund site or listed on the NPL, the residents are “considered to live in a dump and nothing can happen there until it’s either cleaned up and after that, it will take tremendous investment to get it to move forward.”
Robinson concealed from AEMC and the ADEM director that Balch & Bingham and Drummond were paying the Oliver Robinson Foundation to represent their interests exclusively.
The maximum penalty for conspiracy is five years imprisonment and a $250,000 fine. The maximum penalty for bribery is 10 years imprisonment and a $250,000 fine. The maximum penalty for each count of wire fraud is 20 years imprisonment and a $250,000 fine. The maximum penalty for tax evasion is five years imprisonment and a $100,000 fine, together with the costs of prosecution.
The FBI and IRS investigated the case, which Assistant U.S. Attorneys George Martin, Robin Beardsley Mark and John B. Ward are prosecuting.
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Florida Man Pleads Guilty to Cocaine DistributionRead the Press Release
BOSTON – A Tampa, Fla., man pleaded guilty today in federal court in Springfield to distributing cocaine.
Angel Martinez, 39, pleaded guilty today to distributing cocaine in Springfield on May 19, 2015. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 30, 2017.
The charge of distribution of cocaine provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Branch Office is prosecuting the case.
Federal Officials Close the Investigation into the Death of Michael MooreRead the Press Release
The Justice Department will not pursue federal criminal civil rights charges against the Mobile Police Department officer (the Officer) involved in the fatal shooting of 19-year-old Michael Moore, the Department announced today.
Officials from the Civil Rights Division, the United States Attorney’s Office for the Southern District of Alabama, and the Federal Bureau of Investigation (FBI) spoke today with representatives of the Moore family to inform them of this determination. The Department makes this decision because the evidence obtained through the course of a rigorous investigation is insufficient to prove that the Officer willfully used excessive force resulting in Moore’s death.
The Department devoted significant time and resources to investigating the events surrounding Moore’s death on June 13, 2016, in Mobile, Alabama. A team of experienced career federal prosecutors from the Criminal Section of the Civil Rights Division and the United States Attorney’s Office reviewed evidence obtained by the FBI and state investigators to determine whether the Officer violated any federal laws, focusing on the application of 18 U.S.C. § 242, a federal criminal civil rights statute that prohibits certain types of official misconduct. They conducted a detailed and lengthy analysis of numerous materials, including police reports, law enforcement accounts, witness statements, affidavits of witnesses, dispatch logs, physical evidence reports, the autopsy report, photographs, videos of some portions of the incident, and conducted additional witness interviews.
The evidence developed during the investigation indicated that on June 13, 2016, the Officer conducted a traffic stop after Moore made an erratic turn. Moore had two passengers in the vehicle at the time of the traffic stop. Moore was unable to produce a driver’s license and instead provided the Officer with a license number. After running the information, the Officer learned that Moore provided him with a false driver’s license number and that the vehicle Moore was driving was reported stolen. The Officer asked Moore to step out of the car and Moore complied.
There are conflicting eyewitness accounts as to what happened once Moore exited the vehicle and these critical events were not captured on any video. The eyewitnesses to the shooting included residents and motorists traveling through the area in their vehicles. Both passengers inside Moore’s vehicle acknowledged that they saw Moore with a firearm prior to the shooting. One passenger observed a firearm in Moore’s car seat before encountering the Officer, and the other saw a firearm in Moore’s waistband once he stepped outside the vehicle. Some eyewitnesses describe Moore pulling up his pants or having his hands by his waist immediately prior to the shooting. Others describe Moore “snatching” his hand downward or “flinching” at the time of the shooting. Still others only saw Moore’s hands for a portion of the encounter or could not see them at all.
According to the Officer, Moore exited the vehicle with a cell phone in his right hand. The Officer asked Moore to put the cell phone down and when Moore bent down to place the phone on the ground, the Officer saw a gun in Moore’s waistband. The Officer commanded Moore not to reach for the gun, but Moore did so, at which time the Officer shot Moore causing Moore to fall to the ground. While on the ground, the Officer again commanded Moore not to reach for the gun. However, Moore reached for the gun, and the Officer shot him again.
Moore was transported to the University of South Alabama Medical Center where he was pronounced dead. At the hospital, emergency personnel recovered a firearm under Moore’s right hip in the waistband of his clothing. The serial number of the firearm recovered from Moore’s body matched the serial number of a firearm reported stolen earlier that day. An autopsy was conducted and determined that Moore died as a result of multiple gunshot wounds.
Under the applicable federal criminal civil rights laws, prosecutors must establish, beyond a reasonable doubt, that an officer “willfully” deprived an individual of a Constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by the law. Neither accident, mistake, fear, negligence, nor bad judgment is sufficient to establish a willful federal criminal civil rights violation.
Given the totality of the circumstances, and conflicting eye-witness testimony, the government cannot disprove the Officer’s claim that he believed that Moore was reaching for a firearm, that he feared for his life, and that he made the split-second decision to defend it. Therefore, after a careful and thorough review, a team of experienced career federal prosecutors determined that insufficient evidence exists to prove the Officer willfully violated any federal criminal civil rights statutes. Accordingly, the investigation into this incident has been closed.
Federal Officials Close the Investigation into the Death of Michael MooreRead the Press Release
The Justice Department will not pursue federal criminal civil rights charges against the Mobile Police Department officer (the Officer) involved in the fatal shooting of 19-year-old Michael Moore, the Department announced today.
Officials from the Civil Rights Division, the United States Attorney’s Office for the Southern District of Alabama, and the Federal Bureau of Investigation (FBI) spoke today with representatives of the Moore family to inform them of this determination. The Department makes this decision because the evidence obtained through the course of a rigorous investigation is insufficient to prove that the Officer willfully used excessive force resulting in Moore’s death.
The Department devoted significant time and resources to investigating the events surrounding Moore’s death on June 13, 2016, in Mobile, Alabama. A team of experienced career federal prosecutors from the Criminal Section of the Civil Rights Division and the United States Attorney’s Office reviewed evidence obtained by the FBI and state investigators to determine whether the Officer violated any federal laws, focusing on the application of 18 U.S.C. § 242, a federal criminal civil rights statute that prohibits certain types of official misconduct. They conducted a detailed and lengthy analysis of numerous materials, including police reports, law enforcement accounts, witness statements, affidavits of witnesses, dispatch logs, physical evidence reports, the autopsy report, photographs, videos of some portions of the incident, and conducted additional witness interviews.
The evidence developed during the investigation indicated that on June 13, 2016, the Officer conducted a traffic stop after Moore made an erratic turn. Moore had two passengers in the vehicle at the time of the traffic stop. Moore was unable to produce a driver’s license and instead provided the Officer with a license number. After running the information, the Officer learned that Moore provided him with a false driver’s license number and that the vehicle Moore was driving was reported stolen. The Officer asked Moore to step out of the car and Moore complied.
There are conflicting eyewitness accounts as to what happened once Moore exited the vehicle and these critical events were not captured on any video. The eyewitnesses to the shooting included residents and motorists traveling through the area in their vehicles. Both passengers inside Moore’s vehicle acknowledged that they saw Moore with a firearm prior to the shooting. One passenger observed a firearm in Moore’s car seat before encountering the Officer, and the other saw a firearm in Moore’s waistband once he stepped outside the vehicle. Some eyewitnesses describe Moore pulling up his pants or having his hands by his waist immediately prior to the shooting. Others describe Moore “snatching” his hand downward or “flinching” at the time of the shooting. Still others only saw Moore’s hands for a portion of the encounter or could not see them at all.
According to the Officer, Moore exited the vehicle with a cell phone in his right hand. The Officer asked Moore to put the cell phone down and when Moore bent down to place the phone on the ground, the Officer saw a gun in Moore’s waistband. The Officer commanded Moore not to reach for the gun, but Moore did so, at which time the Officer shot Moore causing Moore to fall to the ground. While on the ground, the Officer again commanded Moore not to reach for the gun. However, Moore reached for the gun, and the Officer shot him again.
Moore was transported to the University of South Alabama Medical Center where he was pronounced dead. At the hospital, emergency personnel recovered a firearm under Moore’s right hip in the waistband of his clothing. The serial number of the firearm recovered from Moore’s body matched the serial number of a firearm reported stolen earlier that day. An autopsy was conducted and determined that Moore died as a result of multiple gunshot wounds.
Under the applicable federal criminal civil rights laws, prosecutors must establish, beyond a reasonable doubt, that an officer “willfully” deprived an individual of a Constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by the law. Neither accident, mistake, fear, negligence, nor bad judgment is sufficient to establish a willful federal criminal civil rights violation.
Given the totality of the circumstances, and conflicting eye-witness testimony, the government cannot disprove the Officer’s claim that he believed that Moore was reaching for a firearm, that he feared for his life, and that he made the split-second decision to defend it. Therefore, after a careful and thorough review, a team of experienced career federal prosecutors determined that insufficient evidence exists to prove the Officer willfully violated any federal criminal civil rights statutes. Accordingly, the investigation into this incident has been closed.
Federal Grand Jury Files Obstruction Charges Against Santa Fe Cardiologist Awaiting Sentencing on Health Care Fraud ChargeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division announced that a federal grand jury has returned a new indictment charging Roy G. Heilbron, 54, a cardiologist residing in Santa Fe, N.M., with false statements and obstruction charges. The new charges against Heilbron arise out of his alleged attempt to obstruct and impede proceedings in a pending criminal case.
The two-count indictment, which was filed yesterday, charges Heilbron with making and presenting fraudulent documents regarding his medical condition to a U.S. Probation Officer, and submitting the fraudulent documents for the purpose of postponing or avoiding sentencing in a pending health care fraud prosecution. The new indictment alleges that Heilbron committed the two crimes in Bernalillo County, N.M., and elsewhere, between Aug. 3, 2017 and Aug. 7, 2017.
Heilbron pleaded guilty in federal court in Albuquerque, N.M., to a health care fraud charge on Feb. 17, 2017, under a plea agreement recommending a sentence of two years of imprisonment followed by a term of supervised release to be determined by the court. The Feb. 17, 2017 press release summarizing the proceedings in the health care fraud case in which Heilbron pleaded guilty is attached.
On Aug. 7, 2017, Heilbron’s attorney filed a motion to continue Heilbron’s sentencing hearing, which was scheduled for Aug. 28, 2017, to permit Heilbron to begin chemotherapy in Costa Rica for prostate cancer. The motion included two attachments: a one-page “Treatment Protocol for Roy Heilbron” dated Aug. 3, 2017, which purported to detail Heilbron’s alleged prostate cancer diagnosis, and a three-page “Clinical Summary” dated June 24, 2017, which purported to outline a four-cycle chemotherapy treatment plan. The two documents purported to be authored by a physician with offices in San Jose, Costa Rica, and Miami, Fla.
On Aug. 9, 2017, a U.S. Magistrate Judge issued a warrant for Heilbron’s arrest based on a criminal complaint alleging the same charges as those contained in the new indictment. The complaint outlined the FBI’s investigation into the claims made in the “Clinical Summary” and “Treatment Protocol,” and alleged that Heilbron created the two documents himself and that Heilbron was not a patient of the physician whose name appears on the fraudulent documents. According to the complaint, Heilbron allegedly provided the fraudulent documents to his U.S. Probation Officer on Aug. 4, 2017, in support of a request to postpone his sentencing hearing.
Heilbron was arrested by the FBI in Charlotte, N.C., on Aug. 19, 2017. Heilbron currently is in the custody of the U.S. Marshals Service, which is in the process of transporting Heilbron back to New Mexico to face the charges in the new indictment and sentencing in the health care fraud case.
If convicted on the charges in the new indictment, Heilbron faces a statutory maximum penalty of 15 years of imprisonment on the false statements charge and 30 years of imprisonment on the obstruction of justice charge. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI, with assistance from Charlotte office of the FBI and the U.S. Marshals Service, and is being prosecuted by Assistant U.S. Attorneys Jeremy Peña and George C. Kraehe.
088-170217 Heilbron Fraud Plea Heilbron Complaint Heilbron New IndictmentFederal Agents Arrest U.S. Army Veteran for Posting on Internet Threats to Destroy V.A. Medical Center in Kerrville and Kill EmployeesRead the Press Release
In San Antonio this morning, Special Agents with the Federal Bureau of Investigation arrested 44-year-old Walter Steven Crosley of Lakehills, TX, for using the Internet to post threats to kill individuals working for the U.S. Department of Veteran Affairs (VA) and to damage or destroy buildings by use of explosives announced United States Attorney Richard L. Durbin, Jr.; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and, Special Agent in Charge James Werner, VA Office of Inspector General (VAOIG), South Central Field Office.
According to court records, Crosley served in the Army for 13 years including time in Iraq in support of Operation Iraqi Freedom. In 2005, Crosley, a Motor Transport Operator, suffered multiple injuries resulting from an Improvised Explosive Device (IED) detonation. In 2013, Crosley was permanently retired and received a 100% service-related disability. He has received periodic treatment for his injuries at the Kerrville VA Medical Center.
A criminal complaint and supporting affidavit filed in federal court today alleges that while visiting the facility on June 7, 2017, Crosley made a statement to a nurse that, “I may be the next guy that takes y’all out.” The complaint also states that Crosley, who claims to suffer health issues stemming from his service in Iraq and lack of proper treatment by the VA, periodically uploads videos to YouTube under the name of “Retired Warrior.” In one of the videos, Crosley states that he threatened to blow up the Kerrville VA facility if they did not put him in a war related illness and injury study center. In his video, he also claimed that he would follow in the footsteps of other individuals suffering from Post-Traumatic Stress Disorder (PTSD), who either committed suicide, killed other individuals or destroyed property.
Crosley made his initial appearance this afternoon in federal court in San Antonio. He remains in federal custody pending a detention hearing scheduled for September 21 at 9:30 a.m. Upon conviction, Crosley faces up to ten years in federal prison.
The FBI and the VAOIG investigated this case. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Executive Director of Ocean City, New Jersey, Housing Authority Gets Three Years of Probation for Embezzling Federal FundsRead the Press Release
CAMDEN, N.J. – The former executive director of the Ocean City, New Jersey, Housing Authority (OCHA) was sentenced today to three years of probation for embezzling federal funds received by authority from the U.S. Department of Housing and Urban Development (HUD), Acting U.S. Attorney William E. Fitzpatrick announced.
Alesia Watson, 54, of Galloway Township, New Jersey, previously pleaded guilty before U.S. Magistrate Judge Karen M. Williams to an information charging her with one count of embezzling federal funds received from HUD and administered by OCHA to which she was not entitled. Judge Williams imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:
As executive director, Watson had access to two credit cards maintained by OCHA. From December 2013 through March 2015, Watson purchased 69 MasterCard gift cards using these two OCHA credit cards. She used the gift cards for personal expenses not associated with OCHA or provided them to friends and family members. Watson then used federal funds received from HUD and administered by OCHA to pay the credit card bills associated with the purchase of the gift cards. According to the plea agreement, the loss associated with the embezzlement was more than $6,500 but less than $15,000.
Watson was also ordered to pay restitution of $8,050.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney’s Office in Camden.
Defense counsel: John J. Zarych Esq., Northfield, New Jersey
Essex County, New Jersey, Man Pleads Guilty to Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – A South Orange, New Jersey, man today admitted his participation in the September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Keontrae Lawrence, a/k/a “Taz,” 29, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an indictment charging him with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence.
According to the indictment and other documents filed in this case:
On Sept. 6, 2015, Lawrence and others agreed to rob a club in Passaic at gunpoint. During his plea hearing, Lawrence admitted that he knowingly and willfully participated in the robbery and that he and another conspirator brandished a firearm and threatened to use violence against a club employee. He also admitted that he and the other conspirator took $26,084 in cash from the club before fleeing in a getaway car.
The Hobbs Act conspiracy charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and that sentence must be consecutive to any other sentence imposed. Lawrence’s sentencing is set for Jan. 5, 2018.
Lawrence was originally charged with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Shaheed Blamahsah, a/k/a “Aboo,” 30, of East Orange, New Jersey, in November 2016. Cooper and Lawrence were later indicted by a federal grand jury on March 24, 2017, for their roles in the robbery.
Blamahsah pleaded guilty to his role in the robbery and awaits sentencing. The charges against Cooper are still pending, and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Division for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: John A. Azzarello Esq., Morristown, New Jersey
Escapee Sentenced to 27 Months for Stealing Identity of a Deceased ChildRead the Press Release
Jon Vincent, a/k/a “Nathan Laskoski,” 45, of Lansdale, Pennsylvania, was sentenced today to 27 months in prison, announced Acting United States Attorney Louis D. Lappen. Defendant Vincent pled guilty in May 2017 to Social Security fraud and aggravated identity theft crimes for his use of the identity of a deceased child for more than two decades. According to the facts admitted to by the defendant during his guilty plea hearing, after being convicted in the state of Texas, the defendant served a prison term, then escaped from a Texas halfway house in 1996. Shortly after his escape, the defendant stole the name of the deceased Nathan Laskoski after visiting a cemetery and finding that the decedent had a birthdate close to Vincent’s own birthdate, to craft a new identity. Vincent subsequently obtained the birth certificate for Laskoski, which he used to apply for a Social Security number in Laskoski’s name.
The defendant has been living using the deceased victim’s stolen identity since mid-1996, and used this identity for various purposes, including to obtain employment, open bank accounts, apply for loans, and to obtain government identification. His use of the stolen identity was discovered when a relative of the deceased victim discovered information on the ancestral website “Ancestry.com” indicating that someone was impersonating the decedent.
The case was investigated by the Social Security Administration, Office of Inspector General, the United States Postal Inspection Service, and the United States Department of Labor Office of Inspector General, with assistance from the Lansdale Police Department. It is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
El Dorado County Man Indicted for Distributing a Designer Drug that Caused the Death of a MinorRead the Press Release
SACRAMENTO, Calif. — On August 31, 2017, a federal grand jury returned a two-count indictment against Elijah Lee Richter, 26, of Camino, charging him with distribution of a controlled substance known as 25i-nBOME that caused death, and possession of a controlled substance, U.S. Attorney Phillip A. Talbert announced.
According to the indictment, on September 8, 2012, Richter knowingly and intentionally distributed 25i-nBOME, a controlled substance analogue, which caused the death of a juvenile named A.A.
This case is the product of an investigation by the El Dorado County Sheriff’s Department, El Dorado County District Attorney’s Office, and the Drug Enforcement Administration as part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant United States Attorneys Jason Hitt and Paul Hemesath are prosecuting the case.
If convicted on the distribution charge, Richter faces a maximum statutory penalty of life in prison, a mandatory minimum of 20 years in prison, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Eagle Butte Man and Woman Charged with Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man and woman have been indicted by a federal grand jury for Distribution of a Controlled Substance.
Perry Crow, Jr., a/k/a Perry Fiddler, age 22, and Estrella Fernandez, a/k/a Star Fernandez, age 20, were indicted on July 11, 2017. Crow appeared before U.S. Magistrate Judge Mark A. Moreno on August 30, 2017, and Fernandez appeared before U.S. Magistrate Judge Mark A. Moreno on September 1, 2017. They both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, at least 3 years and up to life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 23, 2016, Crow knowingly and intentionally twice distributed methamphetamine, a Schedule II controlled substance. The Indictment also alleges that on August 31, 2016, both Crow and Fernandez knowingly and intentionally distributed methamphetamine.
The charges are merely accusations and Crow and Fernandez are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Crow and Fernandez were released on bond pending trial, which has been set for October 31, 2017.
Eagle Butte Man Indicted for Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Eunice Jamiel Smart, age 27, was indicted on April 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 30, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on three occasions, September 10, 22, and 23, 2016, in Eagle Butte, Smart knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance.
The charges are merely accusations and Smart is presumed innocent until and unless proven guilty.
This case is being investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Smart was released on bond pending trial. A trial date has not been set.
Dracut Man Charged with Sex TraffickingRead the Press Release
BOSTON – A Dracut man was arrested and indicted yesterday on sex trafficking charges.
Reginald Abraham, 46, was indicted on three counts of sex trafficking by force, fraud or coercion. He was arrested yesterday and detained following an initial appearance in federal court in Boston today.
According to the indictment, at varying times between May 2015 and October 2016, Abraham trafficked three women in Massachusetts and Rhode Island, and used force and threats of force to coerce the women to engage in prostitution.
The charge of sex trafficking provides for a mandatory minimum sentence of 15 years and a maximum sentence of life in prison, five 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 D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Miranda Hooker of Weinreb’s Civil Rights Enforcement Team 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.
Dominican Republic Citizen Sentenced to over 10 Years for Cocaine TraffickingRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Carlos Manuel Perez-Crisostomo a/k/a “Nelson Calderon,” 40, of Portland, was sentenced today in U.S. District Court by Judge George Z. Singal to 121 months in prison and four years of supervised release for conspiring to distribute cocaine and cocaine base, commonly known as “crack.” He pleaded guilty on November 21, 2016.
Court records reveal that between January and March 2016, the defendant distributed multi-ounce quantities of cocaine and crack from an apartment in Portland. On March 6, 2016, law enforcement agents seized about 468 grams of cocaine and 174 grams of crack from his apartment.
The defendant faced a higher guideline sentencing range because he falsely claimed to be a U.S. citizen when he entered his guilty plea under his alias “Nelson Calderon.” An investigation that followed his guilty plea revealed that the defendant is, in fact, a citizen of the Dominican Republic and was unlawfully in the United States at the time of the offense.
The investigation was conducted by the Federal Bureau of Investigation (FBI) and the U.S. Drug Enforcement Administration (DEA), in conjunction with the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the DEA; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, and Lewiston Police Departments.
Dominican National Sentenced to Prison, Faces Deportation for Drug TraffickingRead the Press Release
PROVIDENCE – Francisco Fernandez, a/k/a Joel Antonio Santana Arias, 44, a Dominican national who resided in Lawrence, Mass., was sentenced today in U.S. District Court in Providence, R.I., to 46 months in federal prison for possessing with the intent to distribute nearly two kilograms of cocaine. The cocaine was discovered inside Fernandez’s vehicle by a Rhode Island State Police trooper during a traffic stop in February 2017.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Fernandez to serve 3 years supervised release upon completion of his prison term. At the conclusion of his term of incarceration, Fernandez will be turned over to U.S. Immigration and Customs Enforcement for deportation proceedings.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 37- 46 months. The government recommended the court impose a sentence of 46 months in prison.
Fernandez pleaded guilty on June 19, 2017, to possession with the intent to distribute more than 500 grams of cocaine.
According to information presented to the court, on February 11, 2017, during a traffic stop of Fernandez’s vehicle on I-95 in West Greenwich by a Rhode Island State Police trooper, it was determined that Fernandez did not have a valid driver’s license. As forms of identification, Fernandez provided a Dominican Republic passport and a vehicle registration under the name of Joel Antonio Santana Arias. A further check determined that the name Joel Antonio Santana Arias was an alias for Francisco Fernandez, and revealed an active arrest warrant out of Massachusetts for Fernandez. It was also discovered that Fernandez had mutilated his fingerprints.
After Fernandez was taken into custody, a search of Mr. Fernandez’s vehicle by Rhode Island State Police revealed nearly two kilograms of cocaine inside a backpack, which was located on the front passenger floorboard.
Francisco Fernandez’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin, with the assistance of Assistant U.S. Attorney Zechariah Chafee.
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Department of Justice Announces Priority Consideration Criteria for COPS Office GrantsRead the Press Release
The Department of Justice today announced additional priority consideration criteria for FY 2017 Office of Community Oriented Policing Services (COPS Office) grants. Jurisdictions for FY 2017 were notified that their applications would receive additional points in the application scoring process if their agencies cooperate with federal law enforcement to address illegal immigration, ensuring that federal immigration authorities have the full ability to enforce immigration laws and keep our communities safe.
“Cities and states that cooperate with federal law enforcement make all of us safer by helping remove dangerous criminals from our communities,” Attorney General Jeff Sessions said. “This cooperation is supported by the vast majority of the American people, and jurisdictions with these policies in place should be acknowledged for their commitment to ending violent crime, including violent crime stemming from illegal immigration. Today, the Justice Department announced it will recognize jurisdictions that commit to the rule of law by awarding additional points in the application scoring process for COPS Office grants. My hope is that this recognition will further incentivize every jurisdiction in America to collaborate with federal law enforcement and help us make this country safer.”
Court Orders Hermosa Man to Pay $222,362.11 for Defrauding the National Science FoundationRead the Press Release
National Science Foundation (“NSF”) is a United States agency created to support basic scientific research by providing grants, to individuals, businesses, academic and nonprofit institutions. Scott Thompson, d/b/a as Isosceles, LLC., submitted a grant proposal to study solar cells and develop technology to harvest light and produce renewable energy. Thompson specifically represented that a Post-Doctoral foreign national student of electrical engineering at the South Dakota State University (SDSU) was the principal scientific investigator on the project. Relying on Thompson’s statements, the NSF awarded grant funding. Thompson then represented that the student had worked more than 160 hours on the project, and drew down grant funds. Thompson knew his representations were untrue because he never met or hired the student. He used the grant funds to pay his personal bills. Thompson was found guilty, after a jury trial, of two counts of making false claims and two counts of submitting false documents to the NSF in violation of 18 U.S.C. § 287 and § 1001, and was ordered to pay restitution totaling $87,637.89 to the NSF and SDSU (United States v. Scott Thompson, CR 11-50054).
United States Attorney’s Office then brought a civil action pursuant to the False Claims Act (FCA), 31 U.S.C. § 3729(a)(1), which imposes liability on persons and companies who knowingly submit false claims to the government. Persons who submit a false claim must pay to the United States a civil penalty for each false claim, plus three times the amount of damages the government sustained. Pursuant to the FCA, the Court ordered Thompson to pay a civil judgment of $222,362.11 to the United States. In doing so, the Court stated that Thompson’s “convictions preclude him from denying the essential elements of the government’s FCA claim” and the jury found that Thompson “knowingly presented false claims to the government in order to receive funds from the NSF.” (United States v. Scott Thompson, CIV 15-5060-JLV, Doc. 44).
Criminal restitution, penalties, and debts obtained by fraud are not dischargeable in bankruptcy, 11 U.S.C. § 523. The United States Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government, including grant fraud, and works with various law enforcement agencies to identify and investigate these matters.
The investigation was conducted by the National Science Foundation Office of Inspector General. Assistant United States Attorneys Sarah Collins, Eric Kelderman, and Cheryl Schrempp DuPris prosecuted the criminal and civil cases respectively.
Connecticut Substance Abuse Treatment Provider Pays $627K to Settle False Claims Act AllegationsRead the Press Release
United States Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that a Connecticut substance abuse treatment provider and its former CEO will pay $627,000 to resolve allegations that they violated the federal and state False Claims Acts.
THE HARTFORD DISPENSARY and THE HARTFORD DISPENSARY ENDOWMENT CORPORATION (collectively, “Hartford Dispensary”) is a healthcare organization that provides behavioral health and substance use disorder treatment services. It operates various outpatient treatment programs through its nine clinics located in Connecticut. PAUL McLAUGHLIN is the former President and Chief Executive Officer of Hartford Dispensary.
To be certified as an opioid treatment provider (OTP), the OTP must formally designate a medical director, who assumes responsibility for administering all medical services performed by the OTP. The medical director is also responsible for ensuring that the OTP is in compliance with all applicable federal, state, and local laws and regulations.
The government alleges that Hartford Dispensary and McLaughlin made repeated false representations and false certifications to federal and state authorities that Hartford Dispensary had a medical director, as defined by relevant regulations, who was performing the duties and responsibilities required by federal and state law. The government further alleges that these false representations and certifications were material to false or fraudulent claims submitted to the Medicaid program.
To resolve the government’s allegations under the federal and state False Claims Acts, Hartford Dispensary and McLaughlin have agreed to pay $627,000, which covers conduct occurring from January 1, 2009 through November 20, 2015.
A complaint against Hartford Dispensary was filed in the U.S. District Court in Connecticut under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts. The relators (whistleblowers), Russell Buchner and Charles Hatheway, former employees of Hartford Dispensary, will receive a share of the proceeds of the settlement in the amount of $112,860. The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government.
“Health care providers must be completely honest when certifying information to the government, and the failure to do so will have serious consequences,” stated U.S. Attorney Daly. “The U.S. Attorney’s office is committed to vigorously pursuing health care providers who make false representations to federal health care programs.”
“Medicaid providers are required to comply with the applicable rules of the program and to certify honestly their compliance,” said Attorney General Jepsen. “I’m grateful to our state and federal partners for their continued cooperation and coordination as we work to protect our taxpayer-funded healthcare programs.”
This matter was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Kevin Saunders, and by Assistant Attorneys General Michael Cole and Gregory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Compensation Remains Available to 9-11 Responders and Survivors Affected by Their Exposure; Fund Tops $3 Billion in AwardsRead the Press Release
Each year, as the anniversary of the Sept. 11, 2001, terrorist attacks approaches, the country is reminded of the unprecedented losses suffered. The September 11th Victim Compensation Fund (VCF) acknowledges the important milestones reached in providing support to victims and families and is especially aware of the lives that continue to be affected. The anniversary is a time for the VCF to reaffirm its commitment to the important work that still lies ahead, and to maintain strong and steady progress as the VCF seeks to award compensation to those who continue to suffer. Today, the VCF releases its statistics report and informs the community on its outreach efforts.
The VCF’s statistics report details the enormous strides the VCF has made since its reopening in 2011 and its reauthorization in 2015. As of Aug. 31, the VCF has rendered over 14,000 compensation determinations, including initial awards on new claims, and revised awards on claims with amendments or appeals. These determinations total over $3 billion awarded to VCF claimants, which exceeds the original $2.775 billion authorized by Congress when the VCF reopened in 2011. In all, the VCF has compensated claims from more than 11,500 responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as more than 2,400 others who lived, worked, or traveled through areas of lower Manhattan and suffered physical health conditions as a result of their exposure to debris and toxins generated by the attacks and their aftermath.
“I am keenly aware that each and every one of these claims represents a life forever-changed,” said VCF Special Master Rupa Bhattacharyya. “I am also aware of the tremendous need for compensation that exists in the 9/11 community. We are committed to making improvements wherever possible in order to process claims as quickly and efficiently as possible, without compromising accuracy, thoroughness, or fairness. I am pleased to report that we continue to make progress in rendering decisions on the oldest claims, and are now issuing awards on claims filed in the later part of 2015. Our efforts to accelerate the speed of claims processing are ongoing and an absolute priority.”
The VCF is also increasing its efforts to identify those who may be eligible for compensation because they suffer physical health effects as a result of their exposure but are not aware of the VCF, and is working with partners in the community to extend its reach. Information regarding the VCF was recently mailed to the enrolled membership of the World Trade Center Health Program. The VCF is participating in several events this week to increase awareness of and answer questions regarding the VCF. These include a Facebook Live Event hosted by 9/11 Health Watch, meetings of the WTC Health Program Responder and Survivor Steering Committees, a town hall hosted by United We Stand of New York and the Voices of 9/11 16th Annual Day of Remembrance Information Forum.
VCF Special Master Bhattacharyya added, “The anniversary is always a time to look back and commemorate the lives lost or forever changed by 9/11. It is also a time to look forward and assure the members of the 9/11 community that they are not forgotten, and that as a nation, we are committed to providing help to those who need it. I’m honored to be in a position to so directly serve this community, and, along with my dedicated and talented team, remain deeply committed to ongoing progress.”
The September 11th Victim Compensation Fund was created to provide compensation for any individual (or a personal representative of a deceased individual) who suffered physical harm or was killed as a result of the terrorist-related aircraft crashes of Sept. 11, 2001 or the debris removal efforts that took place in the immediate aftermath of those crashes. The original VCF operated from 2001 to 2004. On Jan. 2, 2011, President Obama signed into law the James Zadroga 9/11 Health and Compensation Act of 2010 (Zadroga Act). Title II of the Zadroga Act reactivated the Sept. 11th Victim Compensation Fund. The reactivated VCF opened in October 2011 and was authorized to operate for a period of five years, ending in October 2016. On Dec. 18, 2015, President Obama signed into law a bill reauthorizing the James Zadroga 9/11 Health and Compensation Act of 2010. This included the reauthorization of the VCF. The new law extends the VCF for five years, allowing individuals to submit their claims until Dec. 18, 2020. The law also includes some important changes to the VCF’s policies and procedures for evaluating claims and calculating each claimant’s loss.
For additional information about how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov and information on policies and procedures can be obtained at https://www.vcf.gov/pdf/VCFPolicy.pdf. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
Colombian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Colombian national was sentenced today in federal court in Boston for a federal immigration crime.
Dorance Serna-Bedoya, 50, was sentenced today by U.S. District Court Judge George A. O’Toole Jr. to 27 months in prison and three years of supervised release. Serna-Bedoya will be subject to deportation proceedings upon completion of his sentence. In May 2017, Serna-Bedoya pleaded guilty to unlawful reentry of a deported alien.
In 1993, Serna-Bedoya was convicted in Suffolk Superior Court of distribution of cocaine, and was sentenced to 10-11 years in jail. While serving the Suffolk Superior Court sentence, Serna-Bedoya was convicted in U.S. District Court for the Northern District of New York of drug distribution and sentenced to 30 additional months in jail. Upon completion of these sentences, Serna-Bedoya was placed into removal proceedings and on Jan. 6, 2006, he was deported to Colombia. On Oct. 25, 2016, Serna-Bedoya was arrested in Massachusetts using a forged Pennsylvania driver’s license. Officers obtained Serna-Bedoya’s fingerprints and found them to match those contained in Serna-Bedoya’s immigration file.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Citizen of Dominican Republic Pleads Guilty to Illegal Reentry Following a Prior DeportationRead the Press Release
SYRACUSE, NEW YORK – Yesterday, Radhames Perez pled guilty in federal court in Syracuse to illegally re-entering the United States after having been previously deported from the United States following a felony drug conviction, announced Acting United States Attorney Grant C. Jaquith.
Perez, a citizen of the Dominican Republic, admitted that he was deported from the United States in December 2003, following his conviction in New York County Supreme Court for criminal sale of a controlled substance in the second degree, which constitutes an aggravated felony under U.S. immigration law. The defendant was found in the United States again in June 2017 after he was arrested in Frankfort, New York, on an unrelated New York State criminal charge.
The defendant faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. He also faces deportation. He will be sentenced in Syracuse on November 6, 2017, by United States District Judge Brenda K. Sannes. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement, Office of Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Chief Executive Officer of International Metallurgical Company Sentenced to 57 Months for Conspiring to Export Specialty Metals to IranRead the Press Release
Erdal Kuyumcu, 45, of Woodside, N.Y., and the chief executive officer of the Woodside-based Global Metallurgy, LLC, was sentenced to 57 months in prison following his June 14, 2016 guilty plea to conspiracy to violate the International Emergency Economic Powers Act (IEEPA) by exporting specialty metals from the U.S. to Iran.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Division and Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement’s New York Field Office made the announcement.
“With this sentence, the defendant is being held accountable for conspiring with others to send specialized U.S. technology – over a thousand pounds of metallic powder with nuclear and missile applications – to Iran via Turkey,” said Acting Assistant Attorney General Boente. “The National Security Division will aggressively prosecute those who seek to unlawfully provide dangerous material and technology to Iran, a state sponsor of terrorism.”
“This Office, together with our law enforcement partners, will continue to use every tool available, including U.S. export laws, to prevent goods with potentially dangerous uses from falling into the wrong hands and jeopardizing our national security,” said Acting U.S. Attorney Rohde. “Here, the defendant exported a metallic powder that has potential military and nuclear applications to Iran, a state sponsor of terrorism.”
“Laws exist to keep groups and governments from buying materials in support of doing harm. Iran has demonstrated in this case it is willing to use whatever means necessary to hide the end user of the materials, to include utilizing a U.S. citizen to carry out their proliferating activities,” stated Assistant Director in Charge Sweeney. “The FBI New York and its foreign and domestic partners work every day to investigate and interdict adversaries from procuring these items and materials to build nuclear and other weapons of mass destruction, which could end up in dangerous hands.”
“Today's sentencing is the result of outstanding collaborative work by the Justice Department, the Commerce Department and the FBI to break up a network whose aim was to illegally ship sophisticated U.S.-origin technology to Iran,” said Special Agent in Charge Carson. “We will continue to pursue violators wherever they may be.”
According court documents, Kuyumcu, a U.S. citizen, conspired to export from the U.S. to Iran a metallic powder primarily composed of cobalt and nickel, without having obtained the required license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). As established during a two-day presentencing evidentiary hearing, the metallic powder has potential military and nuclear applications. Such specialized metals are regulated by the U.S. Department of Commerce to combat nuclear proliferation and terrorism, and exporting them without the required license is illegal.
In furtherance of the illegal scheme, Kuyumcu and others plotted to obtain more than one thousand pounds of the metallic powder from a U.S.-based supplier. To hide the true destination of the goods from the supplier, Kuyumcu arranged for the metallic powder to be shipped first to Turkey and then to Iran. Kuyumcu used coded language when discussing shipment of the powder with a Turkey-based co-conspirator, such as referring to Iran as the “neighbor.” Shortly after one of the shipments was sent from Turkey to Iran, a steel company in Iran sent a letter-sized package to Kuyumcu’s Turkey-based co-conspirator. The Iranian steel company had the same address as an OFAC-designated Iranian entity under the Weapons of Mass Destruction proliferators sanctions program that was associated with Iran’s nuclear and ballistic missile programs.
Assistant U.S. Attorneys Tiana A. Demas and Ameet B. Kabrawala and Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.