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Tuesday 5 September 2017
New Hampshire Residents Plead Guilty to Conspiracy Involving Misbranded DrugsRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that two residents of New Ipswich, New Hampshire have pleaded guilty to charges that they conspired to distribute misbranded drugs that they obtained from India.
John Hayes, 53, pleaded guilty today to conspiring to introduce misbranded drugs into interstate commerce. His wife, Plabplueng Hayes, 50, pleaded guilty to the same charge on August 23, 2017.
According to court documents and statements in court, the defendants conspired with an unindicted co-conspirator in India, and with John Hayes’ brother (James Hayes) and sister-in-law Shannon Hayes) in North Carolina to receive shipments from India (often three to five shipments per week) that contained, in the aggregate, hundreds of thousands of pills. These pills were then sold to various customers. James Hayes and Shannon Hayes have each pleaded guilty to related charges in North Carolina.
During the course of the conspiracy, United States Customs and Border Protection (CBP), seized more than 60 shipments from India addressed to John Hayes for delivery at his residence and at multiple Post Office boxes in southern New Hampshire and northern Massachusetts. Those seized shipments were found to contain more than 100,000 pills. The pills were all packaged in blister packs with no packaging that a person would recognize as retail-type packaging, and with no directions under which a layman could use a drug safely and for the purposes for which it was intended. Testing showed that thousands of the pills were prescription drugs and controlled substances. In addition, CBP sent letters to John Hayes at the Hayes residence advising him that the seizures occurred because the drugs were imported contrary to federal regulations that prohibit the importation of controlled substances without the express authorization of the United States Drug Enforcement Administration (DEA).
Postal Service and PayPal records also showed that an email account that was used by both defendants sent more than 5,000 packages to locations throughout the United States, including outside of New Hampshire, between February 2012 and September 2013. The email account also was used by both defendants to manage and confirm the receipt of drugs from India, to receive and track customer orders for drugs, and to coordinate payments.
A search warrant executed at the Hayes residence in New Ipswich resulted in the seizure of more than 100,000 pills, including prescription drugs and controlled substances, as well as shipping labels and empty shipping containers, and other documents. Among these documents were two letters from the Food and Drug Administration (FDA) informing John Hayes that tramadol tablets shipped to him were being refused entry into the United States because the drugs appeared to be unapproved and misbranded.
Plabplueng Hayes will be sentenced on November 28, 2017 and John Hayes will be sentenced on December 12, 2017.
“The importation and sale of misbranded drugs presents a serious threat to the community,” said Acting U.S. Attorney Farley. “Consumers who purchase such drugs cannot be confident that the products that they are using have been manufactured under appropriate and sanitary conditions. Ingesting such pills can lead to unexpected and dangerous consequences. I appreciate the hard work of the law enforcement agents in this case who identified and dismantled this dangerous operation.”
“Sending illegal prescription drugs into the U.S. marketplace puts consumers’ health at risk,” said Jeffrey J. Ebersole, Special Agent in Charge, FDA Office of Criminal Investigations’ New York Field Office. “We will continue to pursue and bring to justice those who jeopardize the public’s health.”
This case was investigated by FDA’s Office of Criminal Investigations, the U.S. Department of Homeland Security, the U.S. Postal Inspection Service, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Arnold Huftalen and Special Assistant U.S. Attorney Sarah Hawkins, who is Senior Counsel, Office of Chief Counsel, U.S. Food and Drug Administration.
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National Dental Clinic Chain to Pay $1.3 Million to Resolve Allegations of Overbilling MedicaidRead the Press Release
BOSTON – The U.S. Attorney’s Office and the Massachusetts Attorney General’s Office announced today that Dental Dreams, LLC, a national dental chain with locations in Massachusetts, has agreed to pay $1.375 million to resolve allegations that it improperly billed the Massachusetts Medicaid program (MassHealth) for unnecessary and unjustifiable dental procedures.
“Dental Dreams enriched itself at taxpayer expense by improperly billing Medicaid,” said Acting U.S. Attorney William D. Weinreb. “We will continue to work with our law enforcement partners to ensure that federal and state health care dollars are spent properly.”
“This dental chain’s extensive improper billing violated state regulations and cost our state’s Medicaid program more than a million dollars,” said Massachusetts Attorney General Maura Healey. “As a result of this joint investigation, today’s settlement provides restitution to MassHealth and ensures that these funds are properly used to benefit its members.”
“Medicaid is designed to provide health care services to some of the most vulnerable members of our society and it’s our agency’s mission to ensure government health funds are spent properly,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our Federal and State partners, we will continue to hold accountable any medical professional who, just to enrich themselves, bills Medicaid for more intensive and expensive services than those actually provided.”
“The company took advantage of a vulnerable patient population when it submitted claims to MassHealth for medically unnecessary and unreasonable dental procedures,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Today’s settlement underscores the FBI’s commitment to investigate health care providers who overbill federal and private health insurance programs to maximize profits. We urge anyone with information regarding overbilling practices to contact us.”
The settlement resolves allegations that Dental Dreams overbilled the Massachusetts Medicaid program for surgical extractions of teeth and for a specific kind of oral examination.
The settlement resolves a lawsuit filed by a former employee under the whistleblower provisions of the False Claims Act, which permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.
Acting U.S. Attorney Weinreb, Massachusetts Attorney General Healey, HHS-OIG SAC Coyne and FBI SAC Shaw made the announcement today. The case was handled by Assistant U.S. Attorneys Michelle Leung, Sonya Rao, and Kriss Basil of Weinreb’s Civil Division and Assistant Attorney General Stephany Collamore of Healey’s Medicaid Fraud Division.
Man Sentenced to 27 Years in Prison for 2010 Armed RobberiesRead the Press Release
A St. Louis man will serve 27 years in federal prison for robbing two convenience stores and shooting a customer in 2010. Derek Marshall, 24, was sentenced on August 31, 2017, in the U.S. District Court to 27 years in prison for his role in the June 17, 2010 armed robbery and shooting that occurred at the Best Stop convenience store in Cahokia, Illinois and the July 8, 2010 robbery and shooting that occurred at D&D’s MiniMart, also located in Cahokia, Illinois, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Documents filed in the U.S. District Court establish that on June 17, 2010, Derek Marshall, Leslie Woods, McGee and James Smith robbed the Best Stop convenience store partially masked and armed with a rifle and two handguns, one of which was a .40 caliber pistol Marshall had stolen during a burglary of a St. Louis gun store earlier in June. The four of them drove to the store in a car they had stolen during a carjacking in South St. Louis earlier in the day. Woods waited in the car while Marshall, McGee and Smith went into the store, ordered a customer to the ground, pointed a gun to the owner’s head and took over $11,000 from the cash register. As they fled the store, Marshall shot the customer laying on the floor with a .40 caliber pistol and then fired four shots toward a woman sitting in her car parked outside the business.
Three weeks later, on July 8, 2010, Derek Marshall, Leslie Woods, Terrell McGee, James Smith and Reshon Farmer robbed D&D’s Minimart partially masked and armed with two rifles and two handguns. The crew drove to the store in a minivan they had stolen in North St. Louis earlier that day. Farmer waited in the van while Marshall,Woods, McGee and Smith went into the store and pointed their guns at the two employees behind the counter. While the male clerk was trying to open the register, Woods shot him with a .30 caliber rifle, causing him to fall on top of the female clerk who was lying on the ground.Woods then fired two more shots at both employees. As the two employees laid motionless on the floor, Marshall, Woods, and Smith took the cash register and a .40 caliber handgun that belonged to the storeowner. As a result of the shooting, the male clerk suffered severe injuries and has permanent loss of use of his right arm.
Several police officers from North St. Louis who knew Woods, Marshall, Smith and Farmer viewed the video surveillance of D&D’s MiniMart robbery and identified Marshall, Woods and Smith as three of the gunmen. They also identified Farmer as the getaway driver. During an interview with law enforcement officers, Smith and Farmer confessed to their involvement in the D&D’s MiniMart robbery and identified Marshall, Woods and McGee as the three other gunmen.
In 2015, McGee was arrested and interviewed about his involvement in the two robberies. McGee admitted that he was one of the three gunmen in the Best Stop robbery. He also admitted that he was one of the four gunmen in the D&D’s MiniMart robbery.
Marshall, Woods and McGee plead guilty to all charges in federal court in April 2017. Woods was sentenced to 30 years in prison and McGee was sentenced to 25 years in prison earlier this month. After completion of the 27-year term of imprisonment, Marshall will then serve three years of federal supervised release. He was also ordered to pay $727,070 in restitution to the victims and a $600 special assessment. Smith and Farmer were prosecuted for these offenses by the St. Clair County State’s Attorney’s Office.
The case was investigated by the Cahokia Police Department, the St. Louis County Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Ali Summers, Dan Kapsak and James Piper, Jr..
Lubbock, Tex., Woman Pleads Guilty to Federal Wire Fraud ChargeRead the Press Release
ALBUQUERQUE – Selma Morales, 53, of Lubbock, Tex., pleaded guilty in federal court in Albuquerque, N.M., to a wire fraud charge arising from a scheme that defrauded her employer of more than $550,000. The guilty plea was announced by Acting U.S. Attorney James D. Tierney and Special Agent in Charge Terry Wade of the Albuquerque division of the FBI.
A federal grand jury charged Morales with committing wire fraud in an indictment filed on July 27, 2017. According to the indictment, from May 2009 through May 2015, Morales engaged in a scheme to defraud her employer, a law firm headquartered in Lubbock with offices in Albuquerque, Hobbs and Las Cruces, N.M., of more than $550,000, which she used for unauthorized personal charges and expenditures. At the time, Morales was the law firm’s financial manager and bookkeeper.
During today’s change of plea hearing, Morales pled guilty to the indictment and admitted abusing her position as a trusted, high-level employee who managed the law firm’s day-to-day finances. In her plea agreement, Morales acknowledged having access to the law firm’s bank accounts and credit cards and traveling to the firm’s locations in Albuquerque, Hobbs and Las Cruces in connection with her employment. Morales admitted using four of the law firm’s credit cards to pay for personal expenses, including meals, groceries, car repairs, car and home insurance, property taxes, funeral expenses for a relative, clothing, sports apparel and equipment, designer products, jewelry, and plastic surgery. Morales also used the law firm’s credit cards to pay for family vacations and travel (including trips to San Francisco, Calif., Seattle, Wash., and Las Vegas, Nev.), entertainment (including season tickets to college athletic events, concerts and NBA playoff tickets), apartment rental payments, and college tuition payments. Morales admitted using her position as well as information about her employer to conceal her fraudulent activity.
The plea agreement recommends that Morales be sentenced to a term of imprisonment not to exceed 24 months. It also requires that Morales make restitution to her former employer. Morales remains on conditions of release pending her sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney Margaret M. Vierbuchen.
morales_indictment.pdfLocal Man Sentenced to 60 Months for Failing to Register as a Sex OffenderRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Daniel Herrera Gonzales was sentenced after having previously pleaded guilty on May 17, 2017 to the charge of failing to register as a sex offender. Senior United States District Judge Wm. Fremming Nielsen sentenced Gonzales to a five-year term of imprisonment, to be followed by a five-year term of court supervision after he is released from Federal prison. Upon release from prison, Gonzales will continue to be required to register as a sex offender.
According to information disclosed during the court proceedings, Gonzales was required to register as a sex offender because of a 2011 conviction for third degree assault (sexual motivation) in Douglas County, Washington. That conviction was his third for sexually assaulting children. Gonzales absconded from Washington State Department of Corrections supervision in May 2016. Deputy U.S. Marshals tracked down Gonzales in Wellpinit, Washington last November.
At today’s sentencing hearing, Senior Judge Nielsen found that Gonzales’ criminal history was under-represented by the Sentencing Guidelines. For this reason, the Judge departed upward from the Guidelines and imposed the 60-month sentence.
Acting United States Attorney Harrington said, “The sentence handed down today provides just punishment for this offense. The United States Attorney’s Office for the Eastern District of Washington prosecutes the crime of failure to register as a sex offender with great fervour, particularly when an offender’s prior sex conviction(s) involves vulnerable young victims.” Harrington went on to add, “This case is an outstanding example of the dedication and tireless efforts exhibited by the U.S. Marshals Service day in and day out.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The United States Marshals Service conducted this investigation. Scott T. Jones, an Assistant United States Attorney for the Eastern District of Washington, prosecuted the case.
Justice Department and Bensalem Township Settle Lawsuit over Alleged Religious Land Use and Institutionalized Persons Act ViolationsRead the Press Release
The Justice Department today announced an agreement with Bensalem Township, Pennsylvania, to resolve allegations that the Township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when the Township denied zoning approval to allow the Bensalem Masjid to build a mosque on three adjoining parcels of land in the Township.
“Federal law protects the rights of all religious communities to build places of worship free from discrimination,” said Acting Assistant Attorney General John Gore, head of the Justice Department’s Civil Rights Division. “This agreement ensures that all citizens of Bensalem Township may freely exercise this important civil right.”
The agreement resolves a lawsuit that the Department filed in July 2016. A separate agreement resolving a similar lawsuit brought by the Bensalem Masjid against Bensalem Township has also been reached.
The United States’ complaint alleged that the Bensalem Township’s denial of a variance imposed a substantial burden on the Bensalem Masjid’s religious exercise, treated the Bensalem Masjid less favorably than the township treated nonreligious assemblies and discriminated against the Bensalem Masjid on the basis of religion. The complaint also alleged that the township placed unreasonable limitations on religious assemblies generally through its land use regulations.
As part of the agreement, the Bensalem Masjid will be permitted to use the three adjoining properties for the purpose of building a mosque. The Township has also agreed to review and amend its zoning ordinance to comply with the requirements of RLUIPA. Additionally, the Township has agreed that it will advise its officials and employees about the requirements of RLUIPA, among other remedial measures.
RLUIPA contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise. Persons who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743.
More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Jefferson City Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute at least five kilograms of cocaine.
Mario Alberto De La Cruz, 43, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Willie J. Epps to the charge contained in a June 15, 2016, federal indictment.
By pleading guilty today, De La Cruz admitted that he participated in a conspiracy to distribute cocaine in Columbia, Mo., and elsewhere from Aug. 2 to Nov. 10, 2015. De La Cruz also admitted that he engaged in several controlled transactions in which he sold cocaine to a confidential law enforcement informant in 2015.
On Aug. 28, 2015, the confidential informant contacted De La Cruz and arranged to purchase two ounces of cocaine. The confidential informant sent a text to De La Cruz stating, “Hey bud leaving for a bachelor party in an hour totally forgot to text yesterday bout 20 of us headed our camping could use 2 big loads of wood (two ounces of cocaine) asap!!!!Leaving in an hour.” The confidential informant was provided with $1,900 in investigative funds. De La Cruz met the confidential informant and exchanged 56 grams of cocaine for the cash.
Under federal statutes, De La Cruz is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration and the Jefferson City, Mo., Police Department.
Honduran National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that HUGO TURCIO-CRUZ, age 35, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with illegal reentry of a removed alien.
U.S. District Judge Susie Morgan sentenced TURCIO-CRUZ to time served, a $100 special assessment, and no fine or supervised release. TURCIO-CRUZ was turned over to ICE to be deported.
According to court documents, TURCIO-CRUZ reentered the United States on or about May 4, 2017, after having been previously removed therefrom on or about October 27, 2006.
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.
Gardnerville Man Pleads Guilty to Sexual Exploitation of A MinorRead the Press Release
RENO, Nev. – A Gardnerville, Nevada man pleaded guilty today to child sexual exploitation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Stephan L. DeGraffenreid, 26, pleaded guilty to one count of sexual exploitation of a minor and two counts of attempted sexual exploitation of a minor. United States District Judge Howard D. McKibben accepted the guilty plea and scheduled sentencing for Nov. 29, 2017. DeGraffenreid faces a mandatory minimum penalty of 15 years in prison for each charge.
According to the criminal complaint and plea agreement, law enforcement discovered child pornography on an Apple iPod Touch that was found at the Children’s Ski School at Heavenly Ski Resort. During the investigation, it was discovered the iPod belonged to DeGraffenreid who was formerly an employee at the ski school. On Jan. 26, 2017, during the execution of a search warrant at DeGraffenreid’s residence, officers with the Northern Nevada Online Child Exploitation Task Force located a thumb drive that contained explicit images of children in a childcare facility restroom in Gardnerville. DeGraffenreid admitted to taking the sexually explicit photos of the children found on the thumb drive.
The case is being investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The Douglas County Sheriff’s Office and the El Dorado County Sheriff’s Office also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.
To report child sexual exploitation, contact the FBI’s Las Vegas Office at (702) 385-1281 or the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Former Ohio Man Sentenced to 5 Years in Federal Prison for Burglarizing Uniontown PharmacyRead the Press Release
PITTSBURGH – A former resident of Columbus, Ohio, has been sentenced in federal court to 60 months in jail, to be followed by three years of supervised release on his convictions for burglary of a pharmacy and conspiracy to possess with intent to distribute a Schedule IV controlled substance, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Travis Russell Maynard, 38.
According to information presented to the court, on December 7, 2015, Maynard used a crowbar to break into Nickman’s Pharmacy in Uniontown, Pennsylvania, and proceeded to steal over 3,000 Schedule IV pills from the Pharmacy.
Assistant United States Attorney Timothy M. Lanni prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation leading to the successful prosecution of Maynard.
Former New York Resident Pleads Guilty in Nearly $10 Million Fraud SchemeRead the Press Release
PITTSBURGH –A former resident of Wappingers Falls, New York, has pleaded guilty in federal court to charges of wire fraud and access device fraud, Acting United States Attorney Soo C. Song announced today.
Nicolas Frank Sucich, aka Francisco Javier Alavarez-Johnson, 48, of Cuidad de Tuxpan, Veracruz, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between November 2007 and February 2011, Sucich conspired with others to defraud Liberty Travel and Scotiabank through the purchase of millions of dollars in airline travel packages and point of sale transactions throughout the U.S. using an unauthorized Scotiabank Mastercard. According to the information presented to the court, Sucich and others accumulated nearly $10 million in debit card charges, principally in the purchase of discount travel packages he purchased for himself and others using a business name of FCO Travels, located in Veracruz, Mexico, where Sucich had been living as a fugitive since approximately 1996.
Judge Cercone scheduled sentencing for January 5, 2018. The law provides for a maximum total sentence of not more than 30 years in prison, and fine of $1,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Sucich is being held in custody pending his sentencing.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Immigration Customs Enforcement, Homeland Security Investigations, conducted the investigation that led to the prosecution of Nicolas Frank Sucich.
Former Military Service Member Sentenced to 23 Years in Prison for Sexual Abuse of a MinorRead the Press Release
A former member of the military was sentenced today in U.S. District Court in Tacoma to 23 years in prison for two counts related to sexual molestation of a young child on two different military bases in Washington and Louisiana, announced U.S. Attorney Annette L. Hayes. KENNETH PAUL DESCOTEAUX, 42, was arrested in April 2016, after the minor victim disclosed to authorities that DESCOTEAUX had been sexually molesting the victim since 2011. At the sentencing hearing today, U.S. District Judge Benjamin H. Settle called DESCOTEAUX’s crimes “monstrous.”
According to records filed in the case, the victim disclosed the abuse while residing in Wyoming. The Cheyenne Police Department worked closely with the FBI and law enforcement at Joint Base Lewis-McChord (JBLM) and the Fort Polk Military Installation to investigate the crimes that occurred when the victim and DESCOTEAUX resided on those military installations. DESCOTEAUX was indicted both in federal court in the Western District of Louisiana, and in the Western District of Washington since both military bases are exclusive federal enclaves where criminal cases are prosecuted in federal court. The criminal conduct in Louisiana occurred between 2011 and 2014, when the victim was ages 7-10. The crimes on JBLM occurred between 2014 and 2015 when the victim was 11-years-old. In addition to the sexual abuse, the victim was also repeatedly struck in the head by DESCOTEAUX, at one point causing hearing loss. The minor victim’s mother was a deployed service member periodically serving overseas at the time of DESCOTEAUX’s crimes.
DESCOTEAUX will be required to register as a sex offender after he is released from prison and will be on federal supervision for the rest of his life.
The case was investigated by the Cheyenne Police Department, the FBI, and JBLM- Criminal Investigation Division (CID). The U.S. Attorney’s Office for the Western District of Louisiana provided substantial assistance.
The case is being prosecuted by Assistant United States Attorney Grady J. Leupold, who serves as the Military Liaison for the U.S. Attorney’s Office.
Former Federal Corrections Officer Pleads Guilty to Accepting Bribes from InmatesRead the Press Release
CONCORD, N.H. – A former federal corrections officer, Latoya Sebree, 37, pleaded guilty today to accepting bribes and providing contraband to federal inmates, announced Acting United States Attorney John J. Farley.
According to statements made in court, Sebree, while employed as a corrections officer, provided cellular telephones, tobacco, marijuana and other contraband to inmates at the Federal Correctional Institution in Berlin, New Hampshire, in exchange for money. While investigating the case, law enforcement agents examined cell phones in the possession of inmates that contained numerous text messages that revealed evidence of bribes inmates paid to Sebree.
After viewing that evidence, the law enforcement agents monitored communications between Sebree and an inmate’s girlfriend, who was cooperating with the authorities. In the communications, Sebree agreed to deliver a cellular telephone and a quantity of tobacco to an inmate for $2000 in cash. The cash was mailed to a Post Office box that Sebree rented. After the transaction was completed, $2000 in cash, a quantity of tobacco in various stages of packaging, a heat sealer, three Samsung phones in heat sealed packaging, a Samsung Galaxy phone with a battery and charger, a package of Suboxone, and a VISA gift card were recovered during a search of Sebree’s home in Milan, New Hampshire.
Sebree is scheduled to be sentenced on December 12, 2017. She faces a prison sentence of up to 15 years and a fine of up to $250,000 on the bribery charge. She faces up to five years in prison and a fine of up to $250,000 for providing contraband to inmates.
“The United States Attorney’s Office is committed to identifying and prosecuting corrupt public employees,” said Acting U.S. Attorney Farley. “Smuggling contraband into prisons creates hazards for both inmates and corrections officers. We will work closely with our law enforcement partners to prevent contraband from getting into prisons and to ensure that corrections officers do not engage in unlawful activities or seek to profit from their positions.”
The U.S. Department of Justice, Office of Inspector General and the Federal Bureau of Investigation investigated the case. Assistant United States Attorney Robert Kinsella is prosecuting the case.
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Former Executive Director Pleads Guilty to Defrauding Kankakee Valley Park District, Park FoundationRead the Press Release
URBANA, Ill. – Roy Collins, former executive director of the Kankakee Valley Park District, entered pleas of guilty this afternoon to defrauding the park district and a related not-for-profit organization for his personal benefit. Collins appeared before U.S. District Judge Colin S. Bruce, who scheduled sentencing on Jan. 19, 2018. Collins was allowed to remain on bond.
Collins, 47, of Kankakee, Ill., was employed as the Executive Director of the Kankakee Valley Park District from 2011 to 2016. Collins also served as treasurer for a related not-for-profit organization known as the Kankakee Valley Park Foundation.
Collins pled guilty to using park district equipment, labor, and funds, and other park district and foundation resources to build and maintain a pond on his personal property. Collins admitted that he issued a park foundation check in the amount of $3,008., to purchase a tarp or pond liner, and that he kept and used a mower that belonged to the park district at his personal property.
Collins also admitted that he converted park district and park foundation funds intended for annual “BBQ Fest” events to his personal use. The scheme included his demand and receipt of approximately $6,000 from an individual hired in connection with the 2014 and 2015 BBQ Fests. In addition, Collins admitted that he used the park district’s credit card to make unauthorized personal purchases.
The charges are the result of investigation by the Illinois State Police, the Federal Bureau of Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Katherine V. Boyle.
Each count of wire and mail fraud (one count each) carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000. The maximum statutory penalty for each offense is prescribed by Congress and is provided for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Firearms Crime ReportRead the Press Release
Terrence Akins, 25, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Israel Campos, 21, St. Louis, was indicted by a federal grand jury for interfering with commerce by threat of force or violence and possession of a firearm in furtherance of a crime of violence.
Deandre Jackson, 25, St. Louis, was indicted by a federal grand jury for carjacking; discharging a firearm in furtherance of a crime of violence; brandishing a firearm in furtherance of a crime of violence; and felon in possession of a firearm.
Alonzo Morris, 24, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Virgil Pruitt, 41, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Warren Turner, 26, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Marvin Woolfolk, 33, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm; possession with intent to distribute cocaine base (crack), cocaine and fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
Lamont Brison, 26, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Frank Hart, 43, Jennings, was indicted by a federal grand jury for felon in possession of a firearm.
Andrew Henderson, 29, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Michael Payne, 33, St. Louis, was indicted by a federal grand jury for felon in possession of a firearm.
Kalin Malik Anderson, 20, Hannibal, MO, pled guilty to one felony count of felon in possession of a firearm.
Terrence Bevly, 32, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Kelvin Miller, 37, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Jevon Harris, 23, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Rico Jones, 42, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Deshawn Denton, 27, Joilet, IL, was sentenced to 240 months in prison for brandishing a firearm in furtherance of a crime of violence and kidnapping.
Brandon Knighten, 26, St. Louis, was sentenced to 21 months in prison for felon in possession of a firearm.
Felon from Roswell Sentenced to Ten Years for Illegally Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – Michael Dalton, 34, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison for unlawfully possessing firearms and ammunition. Dalton will be on supervised release for three years after completing his prison sentence.
Dalton, who has seven prior felony convictions, was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Dalton was arrested on June 7, 2016, on a federal criminal complaint after he was transferred to federal custody from state custody where he was detained on related state charges. The state charges subsequently were dismissed in favor of federal prosecution.
The criminal complaint charged Dalton with illegally possessing firearms and ammunition on Aug. 28, 2015, in Chaves County, N.M. Dalton was indicted on the same charge on June 30, 2016. The indictment was superseded on Oct. 25, 2016, to add a second offense charging Dalton with being a drug addict unlawfully in possession of firearms and ammunition on Aug. 28, 2015, in Chaves County. According to court documents, Dalton was prohibited from possessing firearms or ammunition because he had prior felony convictions for burglary, breaking and entering, forgery, aggravated fleeing from a law enforcement officer, possessing burglary tools, tampering with evidence, larceny, and possession of a controlled substance.
Dalton proceeded to trial on the two-count superseding indictment on Jan. 23, 2017, and the jury returned a guilty verdict on both counts on Jan. 25, 2017. The evidence at trial established that on Aug. 28, 2015, officers of the Roswell Police Department responded to Dalton’s residence in response to a call from Dalton’s neighbor. The neighbor testified that she called the police after hearing Dalton threaten to shoot his girlfriend in the head during a fight between the couple that occurred outside Dalton’s residence. The neighbor also testified that Dalton attempted to run over his girlfriend with his car before going into his residence with his three-year-old child. The neighbor then heard gunshots coming from Dalton’s residence.
Dalton barricaded himself in his residence, requiring a SWAT team to be dispatched to coax Dalton out of the residence. After an hour-long standoff, came out of the residence and he was identified as a convicted felon, leading the officers to obtain a search warrant for his residence. While executing the search warrant, the officers seized two rifles, a handgun and approximately 240 rounds of ammunition from ’s residence. The evidence at trial also established that in addition to being a convicted felon, was a methamphetamine addict.
This case was investigated by the Las Cruces office of the ATF and the Roswell Police Department. Assistant U.S. Attorneys Alexander B. Shapiro and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
East Tennessee-Based Home Health Providers Agree to Pay U.S. $1.8 Million to Settle False Claims Act LiabilityRead the Press Release
KNOXVILLE, Tenn. – Affiliated home health entities Home Health Care of East Tennessee, Inc.; Home Health Care of West Tennessee, Inc.; Home Health Care Services, Inc.; Home Health Care Services II, Inc.; Health Care Staffing of Tennessee, Inc.; and Home Health Care Support Services, Inc. (collectively “Home Health”) have agreed to pay the United States $1,800,000, to settle False Claims Act liability. Each of the Home Health entities is based in Chattanooga, Tennessee.
The United States contends that Home Health billed Medicare for home health services and, in some cases, hospice services that were not properly payable due to compensation or other financial arrangements with certain referring physicians which either violated or failed to meet the requirements of the Ethics in Patient Referrals Act (also known as the “Stark law”). The United States also contends that certain other billed services were not properly payable because they failed to meet Medicare coverage and payment requirements due to false or invalid certifications. The conduct giving rise to the allegations occurred over a period of time ranging from as early as 2002 to 2013.
Medicare home health providers and hospice providers are required to obtain written physician certifications of eligibility for each home health or hospice beneficiary upon the start of care and periodically throughout the beneficiary’s period of care. Medicare requires these certifications prior to billing in order to help ensure that home health or hospice care is medically necessary. Moreover, home health and hospice providers are required to comply with the Ethics in Patient Referrals Act, which requires that compensation and other financial arrangements with referring physicians meet requirements designed to ensure that physicians make patient referral decisions based on the patients’ best interests, without undue influence from payments or financial benefits received from healthcare providers competing for the physicians’ referrals. The law also serves to protect the integrity of government-funded healthcare programs.
In November 2010, Home Health initiated a voluntary disclosure to the U.S. Attorney’s Office, disclosing that it had uncovered potential violations of the Stark law during the course of an ongoing internal audit. Home Health supplemented its voluntary disclosure from time to time as its internal investigation continued, reporting additional violations. The settlement announced today resulted from the companies’ voluntary disclosures.
“This is an excellent example of how a health care provider can self-report Medicare compliance concerns and avoid costly litigation,” said Nancy Stallard Harr, U.S. Attorney for the Eastern District of Tennessee. “We encourage voluntary disclosures and welcome the opportunity to work with providers to resolve issues such as this and protect the Medicare Trust Fund.”
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Colleyville Businessman Sentenced to 84 Months in Federal Prison for Role in a Ponzi Oil and Gas Fraud SchemeRead the Press Release
FORT WORTH, Texas — James VanBlaricum, 78, of Colleyville, Texas, was sentenced today before Senior U.S. District Judge Terry R. Means to 84 months in federal prison and ordered to pay $32,222,291 in restitution for participating in a Ponzi oil and gas fraud scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
VanBlaricum, who operated Signal Oil and Gas Company (SOG) and Texas Energy Management, which later became Texas Energy Mutual (TEM), pleaded guilty in February 2017 to one count of mail fraud. He has been in custody since his arrest in mid-August 2016.
According to plea documents, VanBlaricum formed SOG and TEM, ostensibly for the purpose of investing in mineral leases, and oil and gas production and earning a profit from those investments. VanBlaricum ran the fraud scheme from approximately January 2007 to August 2016, from office locations in Grapevine, Texas and Bedford, Texas, as well as from his residence and home office located in Colleyville, Texas, where many of the acts and transactions alleged in the indictment took place. VanBlaricum raised millions of dollars from investors by various means, including selling securities in the form of joint ventures in “programs” offered by SOG and TEM.
VanBlaricum employed sales agents who worked on his behalf to raise money, by selling limited partnership interests in these “programs” offered by SOG and TEM. Both personally and through investors, VanBlaricum deceived investors and potential investors by representing that investors would earn an “assured” rate of return on their initial investment, and they would receive a full refund of their initial investment amount after a defined period of time. He also represented that he intended to use a certain percentage of investors’ money to purchase mineral leases, and oil and gas well projects, when in fact, he intended to spend a substantially smaller percentage on the leases and oil and gas well projects and use a substantial part of investors’ money for purposes they did not authorize or even know about, including paying purported investment returns to other investors, commissions to sales agents, and paying his personal expenses as well as personal expenses for family members, friends, and business associates.
VanBlaricum also represented that he had purchased certain assets, or was in the process of purchasing them, when in fact, he had not purchased the assets and was not in the process of purchasing them. He also represented that the oil and gas well projects were productive and profitable, when in fact, most were “dry holes,” produced oil for a short period of time, or had not been drilled.
When VanBlaricum made promises about the use of investor funds, he failed to state that he had made the same promises to other investors and then used those investors’ funds for purposes they did not authorize or even know about, including paying purported investment returns to other investors, commissions to sales agents, and payment of personal expenses for VanBlaricum and his family, friends, and business associates.
VanBlaricum, according to plea documents, identified himself to investors using a false name. VanBlaricum deposited investors’ funds into, and withdrew and expended investors’ funds, from accounts he controlled in the names of entities he controlled. He caused funds to be transferred to, withdrawn from, and deposited into various accounts to create the appearance of business operations and revenue that he knew did not exist. He also caused “lulling” payments to be paid to investors, ostensibly as returns on investment, when he knew the funds came from other investors rather than from business operations.
VanBlaricum secretly, and without authorization, took and spent money entrusted to him by investors for advertising; vacations and international travel; rent payments; automobile purchases; and payroll and commissions for employees and sales agents.
The U.S. Postal Inspection Service with assistance from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) investigated, and additional assistance was provided by the Securities and Exchange Commission. Assistant U.S. Attorney Douglas A. Allen prosecuted.
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Co-Owner of Trash Company Sentenced for FraudRead the Press Release
BOSTON – The co-owner of a trash company was sentenced today in federal court in Boston in connection with defrauding the operator of the Fall River Landfill out of approximately $463,000 in disposal fees.
Stephen P. Aguiar Jr, 47, of Westport, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to one year and one day in prison, two years of supervised release and ordered to pay restitution in the amount of $463,407. In April 2017, Aguiar pleaded guilty to three counts of mail fraud.
Aguiar was one of the owners and operators of Cleanway Disposal & Recycling, Inc., a trash removal and recycling company, and JS Aguiar Enterprises, Inc., a construction and equipment rental company, which were both located in Westport. Aguiar contracted with the company operating the Fall River Landfill to dispose of trash collected from his private clients in Fall River for one rate, and to dispose of trash collected from his private clients outside of Fall River for a higher rate. Aguiar also contracted with the City of Fall River to collect trash from the Fall River Housing Authority (FRHA) and dispose of the trash at the landfill. The company operating the landfill allowed the City of Fall River to dispose of trash collected from FRHA properties at no charge. Between 2009 and 2014, Aguiar misrepresented the origin of a significant portion of the trash he disposed at the landfill. In some instances, Aguiar claimed he was disposing trash from the FRHA, when in fact he was disposing trash collected from his private clients. In other instances, Aguiar claimed he was disposing trash collected from private clients inside of Fall River, when in fact he was disposing trash collected from private clients outside of Fall River. Aguiar thereby defrauded the operator of the Fall River Landfill of approximately $463,000 in revenue.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Massachusetts Inspector General Glenn A. Cunha; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Weinreb’s Public Corruption Unit prosecuted the case.
Charleston woman sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman was sentenced today to a year and a day in federal prison for a drug charge, announced United States Attorney Carol Casto. Terri Mitchell, 26, previously pleaded guilty to possession with the intent to distribute crack.
Mitchell admitted that in March 2015, law enforcement executed a search warrant at her Charleston residence and discovered approximately 80 grams of cocaine and over 60 grams of crack in her bedroom, along over $7,600 in cash. Mitchell further admitted that in May 2015, law enforcement executed another search warrant at her residence in Charleston. While searching Mitchell’s residence, officers found that Mitchell was in possession of approximately 2.7 grams of crack, which was concealed in the pockets of her pants.
The case against Mitchell was investigated by the Charleston Police Department’s Special Enforcement Unit. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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California man sentenced to federal prison for methamphetamine chargeRead the Press Release
HUNTINGTON, W.Va. – A California man caught receiving a shipment of crystal methamphetamine in Huntington earlier this year was sentenced today to three years and a month in federal prison, announced United States Attorney Carol Casto. Christian Duran, 34, of San Jose, previously pleaded guilty to attempted possession with intent to distribute 50 grams or more of methamphetamine.
On January 13, 2017, members of the DEA Task Force conducted a controlled delivery of approximately 25 pounds of marijuana and 150 grams of crystal methamphetamine to Duran and Sean Bradsher at a residence on 4th Avenue in Huntington. The drugs were intercepted by agents the previous day after being sent from California to Huntington. When Duran and Bradsher took possession of the drugs, agents executed a search warrant at the residence and recovered the marijuana and methamphetamine, along with $13,842 in cash. Duran admitted that he intended to distribute the methamphetamine, and Bradsher admitted that he allowed Duran to use the residence to receive the methamphetamine from California. As part of the plea agreement, Duran admitted to all the drug trafficking activity charged in the indictment.
Bradsher previously pleaded guilty to aiding and abetting the attempted possession with intent to distribute 50 grams or more of methamphetamine. He is scheduled to be sentenced on October 30, 2017.
The investigation was conducted jointly by the DEA Task Force, the West Virginia State Police, and the Putnam County Sheriff’s Department. Assistant United States Attorney Joseph F. Adams handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Business Owner Arraigned Following Indictment on Fraud, Perjury and Election-Related OffensesRead the Press Release
WASHINGTON – Keith D. Forney, 58, of Clinton, Md., was arraigned today on charges of engaging in corrupt election practices, second-degree fraud, perjury, making campaign contributions in excess of legal limits, and making campaign contributions through other persons, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Kimberly Lappin, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office.
Forney pled not guilty in the Superior Court of the District of Columbia and remains free on personal recognizance. He also recently pled not guilty at his arraignments in the U.S. District Court for the District of Columbia on federal charges in two indictments returned against him there. In the federal cases, Forney is accused of participating in a contract fraud scheme against the Maryland Administrative Office of the Courts and filing fraudulent federal tax returns.
In the Superior Court case, Forney was indicted on Aug. 16, 2017, on two counts of engaging in corrupt election practices; three counts of second-degree fraud; two counts of perjury, three counts of exceeding campaign contribution limitations, and eight counts of making campaign contributions through other persons.
According to the Superior Court indictment, Forney claimed for years that a rental property he owned in the District of Columbia was his sole primary residence, when he actually was residing in Clinton, Md. Forney also filed federal and District of Columbia tax returns using the D.C. address. Additionally, he obtained a District of Columbia driver’s license and registered as a D.C. voter while having a license and being registered to vote in Maryland. By documenting that he resided in the District of Columbia, Forney’s construction business, Forney Enterprises, Inc., (FEI) could qualify as a resident owned business in the District of Columbia and receive preferences in bidding on District of Columbia government contracts. The company got those designations in 2006, 2008, 2010, 2012, 2014 and 2016.
Additionally, under District of Columbia law, individuals may not contribute more than $1,000 in support of a candidate for an at-Large seat on the Council of the District of Columbia and may not contribute more than $500 for a candidate seeking a ward seat. Individuals also may not make or cause contributions to made in the name of others. According to the indictment, Forney violated those laws with contributions to three candidates in the 2012 election.
Both of the federal indictments were returned on Aug. 10, 2017.
In one federal case, Forney and a co-defendant, Riad M. Sleit, were indicted on two counts of fraud stemming from an alleged scheme involving Forney’s company, FEI, and payments it received as a minority business enterprise. Forney was also charged with two counts of money laundering.
The scheme allegedly involved a series of contracts awarded by the Maryland Administrative Office of the Courts to Sharp Business Systems (SBS) for work on copiers throughout the state’s court system. Under contracts issued in 2009, 2010, and 2011, SBS was to meet a requirement that 20 percent of its sub-contracting work be performed by a minority business enterprise, which, in this case, was to be FEI. Sleit was the president of the metropolitan Washington, D.C. branch of SBS and was involved in the contract, the indictment alleges.
However, according to the indictment, FEI never performed any work or provided any services. Forney, Sleit, and an SBS consultant, John N. Vassos, caused SBS to pay $689,800 to FEI from 2009 to 2013 for its purported work. Forney then turned over the money that FEI received from SBS to Vassos.
In addition to his work at FEI, Forney and a business partner owned Stadium Club, an establishment in Southeast Washington. In May 2010, according to the indictment, Vassos provided approximately $2 million to Forney and his partner to finance the purchase of the property where Stadium Club was located. Additionally, from 2011 until 2014, Vassos loaned hundreds of thousands of dollars to Forney and his partner.
Sleit, 60, of Sarasota, Fla., has entered a not guilty plea. Vassos, 55, of Bethesda, Md., pled guilty in June 2017 to one count of conspiracy to commit mail fraud, one count of tax fraud, and one count of conspiracy to commit wire fraud. He is awaiting sentencing.
In the other federal case, Forney was indicted on two counts of tax fraud for allegedly under-reporting his income on federal income tax returns for the 2009 and 2010 calendar years.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The FBI’s Washington Field Office and the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office are investigating the cases. The cases are being prosecuted by Assistant U.S. Attorneys Anthony Saler and Michael Marando. Assistance has been provided by Paralegal Specialists C. Rosalind Pressley, Toni Anne Donato, Aisha Keys, and Jessica Mundi; Financial Analyst Bryan J. Snitselaar; Litigation Technology Specialist Kimberly Smith; and former Criminal Investigators Juan Juarez and Stephen Cohen, of the U.S. Attorney’s Office.
Bronx Man Sentenced in Manhattan Federal Court to 168 Years in Prison on Charges Stemming from His Sexual Exploitation of Minors and False Statements to Government AgentsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that DAVID KEITH, a/k/a “David Wright,” a/k/a “David Lee Keith,” a/k/a “David Lee,” a/k/a “Lee David,” was sentenced today in Manhattan federal court to 168 years in prison on five counts stemming from his sexual exploitation of minors, related child pornography offenses, and making false statements to a federal agent concerning his abuse of children. KEITH, 39, of the Bronx, New York, pled guilty on November 29, 2016, before United States District Judge Alison J. Nathan, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Joon H. Kim said: “For his predatory crimes that included luring a girl as young as 9 years old into his van to make sexually explicit videos and even threatening to harm another if she reported his sexual assault, David Keith has received a lengthy prison sentence. Protecting children from sexual exploitation is, and will remain, one of the most important missions of this Office.”
According to the allegations contained in the Complaint, the Indictment filed against KEITH, and statements made in court filings and proceedings in open court:
On at least one occasion in 2013, KEITH produced child pornography during his sexual abuse of a child. Specifically, on October 13, 2013, KEITH approached three girls on the street in Queens, each of whom was approximately 12 years old, falsely presented himself as part of the entertainment industry, and encouraged the girls to model for him. KEITH induced one of the girls to enter his vehicle, where he video-recorded, among other things, himself engaging in coercive sexual conduct with her. KEITH threatened to harm the victim if she reported the assault, and told her that he had been watching her.
Just one day earlier, on or about October 12, 2013, KEITH video-recorded another young girl, approximately 8 or 9 years old, in his vehicle as he caused her to remove some of her clothing so that he could record her exposed genitals.
In addition, for a period of at least two years, KEITH downloaded and possessed thousands of images and videos depicting child pornography.
During the investigation, KEITH made statements to federal agents claiming that he had been elsewhere on October 12 and 13, 2013, and was not the individual who abused the children. Those statements were proven false.
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Mr. Kim praised the extraordinary investigative work of the Federal Bureau of Investigation, and thanked the New York City Police Department Special Victims Unit and the Town of Poughkeepsie Police Department for invaluable assistance in the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Matthew Podolsky and Stephen Ritchin are in charge of the prosecution.
Bluefield pain pill dealer sentenced to federal prison for hydromorphone crimeRead the Press Release
BLUEFIELD, W.Va. – A Bluefield drug dealer was sentenced today to two years in federal prison for selling pain pills, announced United States Attorney Carol Casto. Timothy Jordan, 48, previously pleaded guilty to distribution of hydromorphone.
Jordan admitted that on December 2, 2015, he distributed hydromorphone in Bluefield to an individual cooperating with law enforcement authorities.
The Southern Regional Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John File is in charge of the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
This case was brought under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Bank Robber Sentenced to 115 Months in Federal PrisonRead the Press Release
PORTLAND, Ore. – On Tuesday, September 5, 2017, United States District Court Judge Michael H. Simon sentenced Wes Edward Hamman, 46, to 115 months in federal prison followed by 3 years of supervised release. Hamman has also been ordered to pay $2,210 in restitution. On January 24, 2017, a federal jury found Hamman guilty of bank robbery in violation of 18 U.S.C. § 2113(a).
According to court documents, on April 20, 2016, Hamman robbed a Key Bank on SE Hawthorne Boulevard in Portland. Wearing a black hat, sunglasses and a surgical mask, Hamman approached the victim teller and demanded cash. The teller gave him $2,210 that included five bait bills and a tracking device. After the robbery, the Portland Police Bureau (PPB) received tracking information that Hamman was in a taxicab near SE 39th Avenue and SE Hawthorne Boulevard. PPB officers stopped the cab and arrested Hamman. Officers recovered a demand note and $2,140 that included all five bait bills and the tracking device.
While awaiting trial, Hamman engaged in two known attempts to escape custody. The first occurred on April 26, 2016 while Hamman was undergoing a medical evaluation at the Oregon Health and Sciences University (OHSU). During the evaluation, the defendant was shackled to a hospital bed. A Multnomah County Sheriff Deputy observed Hamman intentionally spill a cup of coffee onto the ground. When the deputy entered the room, Hamman lurched his body forward and put both hands on the deputy’s handgun. After disengaging from Hamman, the deputy order him to remain on the floor until additional officers arrived.
The second attempt occurred in June 2016, when Hamman mailed a letter to his son asking him to take part in an elaborate escape attempt. In the letter, Hamman proposed that he arrange to be transported back to the hospital where his son, donning a medical disguise and armed with a fake gun, would confront law enforcement officers and aid in his father’s escape. The letter was given to law enforcement officials and nothing became of Hamman’s plot, which would have resulted in a violent confrontation with law enforcement.
Hamman has four prior robbery convictions. In 2001, he was convicted of armed robbery in Nevada after walking into a cigarette store, pointing a firearm at the clerk and demanding money. Hamman was sentenced to 10 years in prison, but released on parole in 2003. In 2008,
Hamman committed three robberies and attempted a fourth in Washington State. He was convicted and sentenced to 87 months in prison.
"This defendant demonstrated a continuous pattern of violent action across three states before his latest arrest here in Oregon," said Billy J. Williams, United States Attorney for the District of Oregon. "His actions caused severe emotional trauma for his victims and endangered the community. I applaud the multi-agency investigative effort," continued U.S. Attorney Williams, "that resulted in the defendant’s swift apprehension and conviction."
"The sentence imposed on the defendant reflects the serious nature of bank robbery," said Loren Cannon, Special Agent in Charge for the FBI in Oregon. "The FBI is proud of the relationship with its law enforcement partners and working together we are able to get violent offenders off of our streets and make our community a safer place for all."
This case was investigated by the FBI, PPB 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.
Arlington Man Sentenced to 180 Months in Federal Prison for the Attempted Enticement of a MinorRead the Press Release
FORT WORTH — Marquis Konrad Streaty, 32, of Arlington, Texas, was sentenced today before U.S. District Judge Reed C. O’Connor to 180 months in federal prison for the attempted enticement of an individual Streaty believed to be a 13-year-old female, announced U.S. Attorney John Parker of the Northern District of Texas.
Streaty was convicted in May 2017, following a three-day jury trial, on one count of enticement of a child. He has been into custody since the trial verdict.
“Anyone who attempts to entice a child to engage in sexual activity commits a serious crime and will face serious consequences,” said U.S. Attorney Parker. “That’s the law and this office will enforce it.”
The government presented evidence at trial that on March 2, 2017, through March 9, 2017, Streaty attempted to persuade, induce, and entice a person who had not attained the age of eighteen years, to engage in sexual activity.
On March 2, 2017, Streaty posted an advertisement to an Internet message board website in a section that is commonly used to solicit sexual activity. Part of the advertisement stated, “Just a VERY, VERY discreet early 30’s attractive black male here just looking for a family with a kinky side.” A law enforcement special agent working in an undercover capacity replied to the message asking if Streaty “had any hangups with age.” The agent also stated “Ive got a stepdaughter who likes to play and might be up for a new friend.” Streaty replied “No I don't have any hung ups on age” and “I am interested.” The agent proceeds to tell Streaty “And she is 13, so I get it if that’s too young for you.” Streaty replied, “I am interested in meeting her and you.”
The undercover agent and Streaty continued to email and eventually begin to communicate via text messages. In these communications they discussed meeting during the purported minor’s spring break from school, what kind of sexually explicit acts would take place and the purported minor’s sexual preferences. In a later communication Streaty and the purported stepfather agreed to meet at a hotel located along Interstate 30 in Fort Worth, Texas. Streaty also agreed to split the cost of the hotel room with the stepfather.
On March 9, 2017 Streaty traveled from his residence in Arlington, Texas, to the hotel in Fort Worth, Texas. Upon Streaty’s arrival at the hotel, Streaty was intercepted by law enforcement and placed under arrest.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Tarrant County Criminal District’s Office, Digital Forensic and Technical Services Division, investigated the case. Assistant U.S. Attorneys Nancy Larson and Megan Fahey prosecuted.
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Arkansas Man Facing Federal Firearms Charges for Illegally Selling Handguns and Semi-Automatic Rifles in the Chicago AreaRead the Press Release
CHICAGO — An Arkansas man was charged today with federal firearms violations for illegally selling numerous handguns, rifles and a shotgun in Chicago and nearby suburbs.
KLINT KELLEY brought the firearms from Arkansas to Chicago and illegally sold them to a convicted felon, according to a criminal complaint and affidavit filed today in federal court in Chicago. Kelley sold the guns to the felon on three occasions this year, including over the Fourth of July and Labor Day weekends, the complaint states. The most recent sale occurred Sunday in Chicago Ridge, after which authorities arrested Kelley.
Kelley, 27, of Malvern, Ark., is charged with three counts of dealing firearms without a license and across state lines, and one count of selling firearms to a known felon. An initial court appearance is scheduled for today at 1:30 p.m., before U.S. Magistrate Judge M. David Weisman in Chicago.
The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department and Illinois State Police participated in the investigation.
The complaint describes the three occasions when Kelley allegedly sold firearms to the felon. On April 3, 2017, in a residence in southwest suburban Frankfort, Kelley sold the felon five handguns and three semi-automatic rifles in exchange for $4,750 in cash, the complaint states. On July 3, 2017, near the United Center on Chicago’s West Side, Kelley sold the felon four handguns and one semi-automatic rifle in exchange for $3,000 in cash, the complaint states. On Sept. 3, 2017, in a commercial area of southwest suburban Chicago Ridge, Kelley sold the felon four semi-automatic rifles, three handguns and one semi-automatic shotgun in exchange for $7,000 in cash, the complaint states.
Kelley grew up in Illinois and moved to Arkansas several years ago, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge of dealing firearms without a license and across state lines is punishable by a maximum sentence of five years in prison, and the charge of selling firearms to a known felon is punishable by a maximum sentence of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Tobara Richardson.
Monday 4 September 2017
18 Defendants Facing Federal Charges for Drug TraffickingRead the Press Release
AGENTS SEIZE OVER 30 KILOGRAMS OF DRUGS AND APPROXIMATELY A MILLION DOLLARS ONE DEFENDANT SHOT DURING TAKE DOWN
GRAND RAPIDS, MICHIGAN – Acting U.S. Attorney Andrew Birge announced that his office sought, and U.S. Magistrate Judge Phillip J. Green issued last Friday and earlier today, arrest warrants for eighteen separate defendants charged by criminal complaint with conspiring to distribute heroin and cocaine in the areas of Grand Rapids and Benton Harbor, Michigan. The affidavit filed in support of the complaint alleges that the drugs were trafficked into West Michigan by semi-tractor trailer from California.
During the arrests of the defendants and execution of associated searches, federal, state and local investigators seized over 30 kilograms of heroin and cocaine, multiple pounds of marijuana, two kilogram presses, approximately $1,000,000, a bullet-proof vest, three handguns and an assault rifle with an extended magazine. One defendant suffered a gunshot wound in the course of the execution of the arrests and searches. He will appear for proceedings as his condition allows.
Further details of the allegations may be found in the attached complaint and 185-page supporting affidavit, which were unsealed at the initial appearance of eleven of the defendants today. A twelfth defendant, Phillip Nelson, made his initial appearance in Chicago, in the Northern District of Illinois.
The charges are the result of a multi-agency Federal, State and local law enforcement investigation into the conspiracy. The Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), Federal Bureau of Investigation (FBI), Vice Unit of the Grand Rapids Police Department (GRPD), Kent County Sheriff’s Department (KCSD), Wyoming Police Department, Michigan State Police (MSP), Kent Area Narcotics Enforcement Team (KANET), Metropolitan Enforcement Team (MET), U.S. Secret Service (USSS), Bureau of Alcohol Tobacco and Firearms (ATF), Kalamazoo Valley Enforcement Team (KVET), Albion P.D., Calhoun County Sheriff Department, and South West Enforcement Team (SWET) have all supported the investigation.
The charges in the complaint, which carry varying maximum penalties of up to 20 years or life in prison, depending on the allegations against the individual defendant, are merely accusations and are not evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
The image below shows items recovered through the law enforcement operation.
The complaint charges the following individuals: Name
Age
Residence
YUSEF LATEEF PHILLIPS, aka "Sef"
40
Grand Rapids, MI
RAY ANTHONY LEE, aka "Rudy Ray"
46
Grand Rapids, MI
DEMETRIUS DEWAYNE GAINES
41
Wyoming, MI
CAZEMBIE SOKONI BASKIN, aka "Doe-Boy"
44
Grand Rapids, MI
JESSE MARTELL PHILLIPS
34
Previously in custody
RETISHA MAE PEGRAM, aka "Blackie"
36
Grand Rapids, MI
PHILLIP NELSON
39
Chicago, IL
BRANDON KENYEN PARKS
27
Grand Rapids, MI
MICHAEL YADELL NELSON
37
Grand Rapids, MI
MICHAEL GOULD
36
Grandville, MI
KAYODE MOYO-JOMOKE MARSHALL
42
Grand Rapids, MI
SOLON TATUM
40
Grand Rapids, MI
TONY KIRKLAND
55
Kentwood, MI
The DEA requests the public’s assistance in locating the following defendants charged with conspiracy to distribute controlled substances:
Pictures of fugitives Demetrius Gaines, Retisha Pegram, Brandon Parks, and Etrevion Murphy
Friday 1 September 2017
United States Attorney’s Office Launches Online Messaging Campaign to Highlight the Importance of Law Enforcement WellnessRead the Press Release
The United States Attorney’s Office will implement an online messaging campaign in September during National Suicide Prevention Awareness Month to highlight the importance of law enforcement wellness and suicide prevention. According to Badge of Life, more officers die of suicide than from gunfire and traffic accidents combined. The Police Suicide Study estimates that an average of 130 law enforcement suicides occur per year, which is more than ten per month.
Acting United States Attorney William D. Weinreb said, “Law enforcement officers and first responders routinely encounter life-threatening situations, horrific violence, disturbing crime scenes, motor vehicle accidents, child abuse, and other stressful situations that take a psychological toll. We should reward their courage and selflessness by encouraging them to prioritize their psychological wellness and helping them to achieve it.”
Over the course of the month, the U.S. Attorney’s Office will disseminate specific messages via social media using the hashtag #OfficerWellness.
Two men sentenced for child pornography crimesRead the Press Release
ATLANTA - Brandon Otoupal and Franklin Lee Clark Gilmore have been sentenced to federal prison, in separate court proceedings, for child pornography offenses. Otoupal both produced child pornography and posted a video on a website. Gilmore collected a library of child pornography files and shared them on the Internet in order to access more child pornography.
“These two men took perverse pleasure in the sexual abuse of children,” said U.S. Attorney John Horn. “Otoupal went a step further and bullied a teenage girl into producing child pornography for his own enjoyment. These two cases show that the Internet remains a thriving marketplace for the worst victimization of our children, as well as our commitment to doing everything we can to stop it.”
“Child pornography production is, bluntly, recording the sexual exploitation of innocent children, and those who encourage its production are directly responsible for promoting and encouraging child sex abuse,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “As this case shows, no matter where or how these criminals may seek out their illegal acts, ICE Homeland Security Investigations is committed to investigating and seeking prosecution of child exploitation cases as one the agency’s highest priorities.”
According to U.S. Attorney Horn, the charges and other information presented in court: In July 2015, special agents with Homeland Security Investigations received information that a person had posted on a foreign website a file of a young child being sexually abused by an adult. Based on further investigation, the agents determined that the video was uploaded to the website from a house in Carrollton. When special agents executed a federal search warrant on August 17, 2015, they found that Branden Otoupal not only possessed numerous images of child pornography, but he had also produced child pornography. Specifically, he used a cell phone app to coerce a teenage girl to produce child pornography of herself and send it to him for his own sexual enjoyment.
The charges and other information presented in court show that Franklin Lee Clark Gilmore had been downloading child pornography from the Internet beginning around June 2014. He collected files of very young girls being sexually abused on cell phones, tablets and computers. Eventually, to manage his collection, he transferred it to the cloud. He chatted with numerous men online where he gave them links to his collection, and they in turn gave him additional child pornography.
Brandon Otoupal, 27, of Carrollton, Georgia, was sentenced to 16 years in prison to be followed by 20 years of supervised release. Otoupal was convicted of these charges on April 11, 2017, after he pleaded guilty.
Franklin Lee Clark Gilmore, 26, of Cartersville, Georgia, was sentenced to 12 years, four months in prison to be followed by 15 years of supervised release. Gilmore was convicted of these charges on June 9, 2017, after he pleaded guilty. There is no parole in the federal system. Both Otoupal and Gilmore will be required to register as sex offenders upon their release from prison.
These two cases were investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Paul R. Jones prosecuted the cases.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tennessee Woman Pleads Guilty to Aiding and Abetting an Attempt to Kidnap Judge and Sheriff in One-Count Criminal InformationRead the Press Release
Memphis, TN – Patricia Parsons, 49, of Brighton, Tennessee, pleaded guilty to a one-count criminal information charging her with aiding and abetting solicitation to commit kidnapping. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the facts revealed during the plea hearing and alleged in the criminal information, from February 2017 through May 2017, Parsons conspired with Suzanne Holland, a self-appointed Chief Justice of the Universal Supreme Court of the Tsilhqot’in Nation in Canada, to kidnap a Tipton County judge and a Nebraska sheriff.
On January 10, 2017, Michael Parsons (the defendant’s husband) was scheduled to appear in state court in Tipton County, Tennessee on two counts of being a felon in possession of a firearm. Mr. Parsons did not show up for court, removed his ankle monitor and fled the jurisdiction. Two days later, he was located and arrested in a small airport in Arapahoe, Nebraska after flying himself there in a plane.
On February 16, 2017, FBI New Orleans received information that Suzanne Holland, self-appointed Chief Justice of the Universal Supreme Court of the Tsilhqot’in Nation in Canada, was attempting to hire a bounty hunter to kidnap Sheriff Kurt Kapperman of Furnas County, Nebraska and Judge Joseph Walker of Tipton County, Tennessee and to break Mr. Parsons out of jail. Ms. Holland contacted an FBI Confidential Source in New Orleans, Louisiana and solicited the source to execute what were purported to be duly-issued "arrest warrants" for the sheriff and judge issued by the Tsilhqot’in Nation. Holland emailed "arrest warrants" to the source along with an "order to release Michael Parsons from jail." Further investigation revealed that the Tsilhqot’in Nation was a Sovereign Citizen group located on an Indian reservation in British Columbia, Canada.
On February 17, 2017, Ms. Holland provided a telephone number for the source to facilitate further discussions. FBI Memphis determined this number to be that of Mr. Parsons’ wife, defendant Patricia Parsons.
Based on initial telephone conversations, Ms. Holland and the source agreed to draft a contract, signed by both parties, describing duties and payments. A final negotiated price of $250,000 was agreed upon for the arrest of the sheriff and judge and the facilitating release of Mike Parsons from jail. Mike Parsons was described as an Associate Justice of the Tshilhqot’in Nation.
On February 23, 2017, the source and Ms. Holland agreed on an initial payment of $5,000 to begin arranging all travel and other details related to the operation. Holland told the source that Patricia Parsons would have the money and be available to meet in Memphis. On March 6, 2017, the source advised Holland that a business associate would meet Patricia Parsons to coordinate the payment. An amended contract was drawn up and signed by both parties. The source then contacted Patricia Parsons to discuss the transaction.
On March 3, 2017, Ms. Holland requested the source to accept a Corvette in lieu of the $5,000 payment. The Corvette was owned by the Parsons and located on Patricia Parsons’ property in Brighton, Tennessee. In telephone conversations, Patricia Parsons advised that the Corvette had some problems but was worth approximately $7,000. Three days later, during a series of phone calls, the source advised the defendant that an associate was traveling to the Parson’s property to complete the payment transaction.
Further the source explained to Parsons what the overall operation would entail, including: selling the vehicle to help fund the operation; breaking Mr. Parsons out of jail; kidnapping the Tennessee judge (who was scheduled to preside over her husband’s impending trial) and the Nebraska sheriff; using the plane to transport the abducted individuals to Holland in Canada; and using 30 operatives divided into two teams to accomplish these objectives.
During these calls, defendant Parsons advised that her phone was tapped by the FBI and agreed to call the source on another phone. The defendant called on a different line and indicated that she was ok with the source taking the vehicle and using the plane in Nebraska "as long as the FBI don’t come knockin at my door again." The source explained that the operatives would need to go to Canada because "once we kidnap a judge and a sheriff, our heads are gonna be on the choppin block… and once we do what we gotta do we can never come back." After these discussions, the defendant agreed to meet one of the operatives to complete payment transaction.
On March 6, 2017, an undercover FBI employee posing as an associate of the source exchanged phone calls with the defendant and subsequently met at her residence in Brighton, Tennessee to obtain the Corvette. Due to the fact that the Corvette was inaccessible at the resident, the defendant agreed to provide the associate a 1991 Ford Ranger truck as the down payment for the operation. Parsons could not find the title but signed a note transferring ownership of the vehicle and gave the associate keys to the truck.
Between March 11 and March 15, 2017, the associate made three separate telephone calls to Parsons in order to gain further information on Tipton County Judge Joseph Walker. The associated asked about an address and photo of the judge’s house. The defendant responded that she did not know the specific address but that the judge’s name was "Joseph Walker III" and advised that he was located in Ripley, Tennessee in Lauderdale County. She also agreed to find out more information on the judge. On another call, the defendant advised the associate about a Ripley P.O. Box for the judge and stated he presided over courts in Tipton, Lauderdale, Hardeman, Fayette and one other county. At no time did Parsons attempt to notify any authorities of the impending plot to kidnap a sheriff and judge and free Mr. Parsons’ from jail.
Parsons faces a maximum penalty of 20 years’ imprisonment, a $125,000 fine and five years of supervised release. Sentencing is scheduled for December 1, 2017, before United States District Judge Sheryl H. Lipman.
This case was investigated by the FBI. Assistant U.S. Attorney Stephen Hall is prosecuting this case on the government’s behalf.
Tampa Man Sentenced to More Than Four Years in Federal Prison for Credit Card Fraud and Identity TheftRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Yuneski Perdomo (35, previously of Tampa) to four years and ten months in federal prison for conspiracy to commit access device (credit card) fraud and aggravated identity theft. The Court also entered a money judgment in the amount of $31,016.32, the proceeds of the credit card fraud.
Perdomo pleaded guilty on June 1, 2017.
According to court documents, in 2013, Perdomo was the ringleader of a conspiracy that included co-defendants Edel Gomez, Tonysbell Calero-Alvarez, and Jorge Duran-Blanco. The conspirators obtained stolen credit and debit account numbers that they then used to create or purchase counterfeit or cloned credit cards. The true owners of the accounts remained in possession of the cards, so they did not know to report them stolen. The conspirators then spent hours each day traveling around Florida, making purchases at various retail stores using the counterfeit credit cards. They purchased cigarettes and gift cards, among other things, that could be sold for cash, and shared the proceeds. In one instance, at Perdomo’s direction, Gomez, Calero-Alvarez, and Duran-Blanco used counterfeit credit cards at approximately 14 different Walmart locations in the Tampa Bay area over a 24-hour period. Agents identified $30,000 in actual losses and approximately $148,000 in intended losses attributable to the fraud, and they determined that more than 40 individuals’ stolen account information had been used.
Gomez, Calero-Alvarez, and Duran-Blanco pleaded guilty for their roles in this case and were sentenced in 2014 to 36 months’ imprisonment, 44 months’ imprisonment, and 5 years’ probation, respectively. Perdomo was a fugitive from late 2013 until late 2016.
This case was investigated by the Florida Department of Law Enforcement, the U.S. Secret Service (USSS), the U.S. Postal Inspection Service, and the Tampa Police Department, all of whom are members of the USSS’s credit card fraud and identity theft task force. It was prosecuted by Assistant United States Attorney Mandy Riedel.
St. Petersburg Man Sentenced on Firearms ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Raymond Adams (29, St. Petersburg) to eight years and five months in federal prison for being a felon in possession of a firearm and carrying a firearm during a drug trafficking offense. He pleaded guilty on May 31, 2017.
According to court documents, Adams and others planned to break into a St. Petersburg home to steal marijuana and later distribute it. Adams was armed with a 9-mm handgun during the attempted burglary and, when detected by law enforcement officers, he left with his associates in a vehicle that later crashed. Adams then fled on foot and discarded the gun. Officers from the St. Petersburg Police Department apprehended him and recovered the gun.
At the time of the incident, Adams was a felon whose prior criminal history included a 2010 manslaughter conviction. As such, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney James C. Preston, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This case was also prosecuted as part of the St. Petersburg Violent Crime Reduction Initiative.
Spartanburg Man Enters Guilty Plea in Federal Court on Firearms and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Alvin Jamal Bobo, age 36, of Spartanburg, pled guilty in federal court in Greenville to felon in possession of a firearm and ammunition, possession with intent to distribute marijuana, and possession of a firearm in furtherance of a drug trafficking crime. United States District Timothy M. Cain accepted the plea and will impose sentence after United States Probation prepares a pre-sentence report. Bobo, based on prior felony convictions, is prohibited from possessing firearms or ammunition. He faces a statutory, mandatory minimum sentence of five years in federal prison.
Evidence presented at the guilty plea hearing established that on July 16, 2016, members of the Spartanburg City Police Department (SPD) initiated a traffic stop on a vehicle driven by Alvin Jamal Bobo. After detecting the odor of marijuana, SPD searched the vehicle, recovering a Tupperware container under the driver’s seat containing 30 grams of marijuana, a digital scale in the driver’s door, a box of clear baggies, and a Sig Saur .22 caliber pistol from behind the passenger front seat. As SPD was removing and securing the firearm, Bobo claimed it. Pursuant to Bobo’s arrest, SPD also located a small amount of marijuana in his left shoe.
The Spartanburg Police Department and ATF investigated the case. Seventh Circuit Assistant Solicitor Jennifer Wells, serving as a Special Assistant United States Attorney for the US Attorney’s Office, is prosecuting the case.
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Spartanburg Man Enters Guilty Plea in Federal Court on Firearms ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Timothy Andrew Wofford, age 39, of Campobello, pled guilty in federal court in Greenville to felon in possession of a firearm and ammunition. United States District Timothy M. Cain accepted the plea and will impose sentence after United States Probation prepares a pre-sentence report. Wofford, based on prior felony convictions, is prohibited from possessing firearms or ammunition. He faces a statutory maximum sentence of 10 years in federal prison.
Evidence presented at the change of plea hearing established that on the evening of October 6, 2016, members of the Spartanburg County Sheriff’s Office (SCSO) and the South Carolina Highway Patrol (SCHP) responded to a vehicular accident in Campobello, South Carolina. Timothy Wofford was the driver of the vehicle involved and was thrown from the vehicle during the wreck. Officers recovered a 9mm pistol next to Wofford and secured a 12-gauge shotgun from the Wofford’s vehicle. The 9mm pistol was reported stolen out of Lebanon, Tennessee.
The Spartanburg County Sheriff’s Office, South Carolina Highway Patrol, and ATF investigated the case. Seventh Circuit Assistant Solicitor Jennifer Wells, serving as a Special Assistant United States Attorney for the US Attorney’s Office, is prosecuting the case.
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Spartanburg Man Enters Guilty Plea in Federal Court on Firearms ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Tikita Foster, age 31, of Spartanburg, pled guilty in federal court in Greenville to a single-count indictment charging violations of felon in possession of a firearm and ammunition and possession of a firearm and ammunition after sustaining a conviction for a misdemeanor crime of domestic violence. United States District Timothy M. Cain accepted the plea and will impose sentence after United States Probation prepares a pre-sentence report. Foster has prior prohibiting convictions to include a conviction for domestic violence, and therefore, is prohibited under federal law from possessing firearms or ammunition. He faces a maximum sentence of ten years in federal prison.
Evidence presented at the guilty plea hearing established that on May 13, 2016, officers with the Spartanburg Police Department (SPD) were dispatched to a Farley Street residence in reference to a fight outside involving weapons. Upon arrival, SPD made contact with Tikita Foster and another individual who were outside the residence arguing. When asked by SPD if either had any weapons on them, Foster stated that he had a weapon. SPD then recovered a loaded Smith and Wesson .40 caliber pistol from Foster. Foster later told SPD that the firearm belonged to his girlfriend but that he had it because someone was trying to fight his cousin.
The Spartanburg Police Department and ATF investigated the case. Seventh Circuit Assistant Solicitor Jennifer Wells, serving as a Special Assistant United States Attorney for the U.S. Attorney’s Office, is prosecuting the case.
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Spartanburg Man Enters Guilty Plea in Federal Court on Firearms ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Tikita Foster, age 31, of Spartanburg, pled guilty in federal court in Greenville to a single-count indictment charging violations of felon in possession of a firearm and ammunition and possession of a firearm and ammunition after sustaining a conviction for a misdemeanor crime of domestic violence. United States District Timothy M. Cain accepted the plea and will impose sentence after United States Probation prepares a pre-sentence report. Foster has prior prohibiting convictions to include a conviction for domestic violence, and therefore, is prohibited under federal law from possessing firearms or ammunition. He faces a maximum sentence of ten years in federal prison.
Evidence presented at the guilty plea hearing established that on May 13, 2016, officers with the Spartanburg Police Department (SPD) were dispatched to a Farley Street residence in reference to a fight outside involving weapons. Upon arrival, SPD made contact with Tikita Foster and another individual who were outside the residence arguing. When asked by SPD if either had any weapons on them, Foster stated that he had a weapon. SPD then recovered a loaded Smith and Wesson .40 caliber pistol from Foster. Foster later told SPD that the firearm belonged to his girlfriend but that he had it because someone was trying to fight his cousin.
The Spartanburg Police Department and ATF investigated the case. Seventh Circuit Assistant Solicitor Jennifer Wells, serving as a Special Assistant United States Attorney for the U.S. Attorney’s Office, is prosecuting the case.
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Southbridge Man Sentenced for Dealing OxycodoneRead the Press Release
BOSTON – A Southbridge man was sentenced today in federal court in Worcester for distributing oxycodone.
John Tautenhan III, 50, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years in prison and two years of supervised release. In April 2017, Tautenhan pleaded guilty to two counts of conspiracy to possess with intent to distribute and to distribute oxycodone and one count of distribution of oxycodone.
In June 2016, Tautenhan was arrested and charged along with three others for distributing oxycodone in Worcester County. Tautenhan sold oxycodone pills to an undercover officer on nine occasions. In addition, a Court authorized wiretap evidenced that Tautenhan actively distributed oxycodone in and around Southbridge.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Southbridge Police Chief Shane Woodson made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office prosecuted the case.
Soldotna Man Sentenced in Alaska’s First Federal Felony Spice Trafficking CaseRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Philip Drake Kneeland, 34, d/b/a Tobacco Distress, Inc., at mile 91.5 of the Sterling Highway in Soldotna, Alaska, was sentenced to 70 months in prison for distributing Spice and possessing a firearm in furtherance of Spice trafficking.
In addition to his prison sentence, Chief U.S. District Judge Timothy M. Burgess ordered Kneeland to forfeit to the United States approximately $75,400.00, a 2014 GMC truck, and 4 firearms. The Spice distributed by Kneeland contained “cannibimimetic agents,” including compounds JWH-18 and JWH-073, in violation of federal controlled substances law. Judge Burgess also ordered that Kneeland perform 200 hours of community service upon his release from prison, because Kneeland’s sales triggered an epidemic of Spice-related law enforcement responses on the Kenai Peninsula, including emergency room visits, suspected suicides and DUIs, severely impacting the community. The Court heard testimony from a local resident and local law enforcement that the Spice epidemic on the Kenai Peninsula has essentially disappeared since Kneeland’s arrest.
Kneeland pled guilty on March 6, 2017, to possession of synthetic cannabimimetic agents with intent to distribute and possession of a firearm during and in relation to a drug trafficking crime, stemming from a search of Tobacco Distress on Oct. 31, 2015.
As widely reported in the summer of 2015, Anchorage experienced an explosion of Spice overdose emergency calls which strained first responders and claimed many victims. In the fall of 2015, Kenai Peninsula residents openly protested Kneeland’s Spice sales outside the Tobacco Distress premises, carrying signs saying “SPICE KILLS.”
As explained by the Indictment in the case, “Spice” is a generic term for smokeable synthetic cannibinoids, which are manufactured by dissolving psychotropic drugs, compounds such as JWH-18 and JWH-073, in acetone and spraying it on plant material.
Acting U.S. Attorney Schroder complimented the investigation of the case, which was conducted by DEA, the Internal Revenue Service Criminal Investigation (IRS-CI), the Kenai Police Department, and the Alaska State Troopers Statewide Drug Enforcement Unit based on the Kenai Peninsula.
Sixth Chicago-Area Defendant Sentenced in Plaza Frontenac Smash and GrabRead the Press Release
St. Louis, MO – Julian Campbell, 23, of Chicago was sentenced to 40 months today in U.S. District Court for his role in stealing more than $150,000 in luxury handbags from Saks Fifth Avenue at Plaza Frontenac. Campbell is the sixth of eight defendants to be sentenced in U.S. v. Dejaun Wingard et al. An additional five defendants await trial in U.S. v. William Curry et al.
Campbell admitted to traveling from Chicago on November 26, 2016 with a group of associates, stealing the purses and leading police on high-speed chase before being apprehended near Litchfield Illinois. Campbell also acknowledged conducting similar heists in Cincinnati, Ohio; Northbrook, Illinois and at Plaza Frontenac earlier in 2016.
The case is being investigated by the Federal Bureau of Investigation, the Frontenac Police Department, the Illinois State Police, the Montgomery (Il.) County Sheriff’s Department, the Montgomery (Il.) County Prosecutor’s Office and the St. Louis County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
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Six Involved in Large Scale Methamphetamine Trafficking Group ArrestedRead the Press Release
DALLAS — Six individuals have been charged by three separate federal criminal complaints, unsealed today, stemming from their role in selling large quantities of methamphetamine in the Dallas and Desoto areas, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the complaints charge Marco Gonzalez, 31, Alma Zoraida Borrayo-Villasenor, 32, Tomas Rodriguez, 37, Jose Trinidad Medina Tapia, 31, and Javier Guizar-Hernandez, 28, with possession with intent to distribute a controlled substance. Jose Negrete, 42, is charged with knowingly possess with intent to distribute methamphetamine. The six defendants made their initial appearances in federal court today before U.S. Magistrate Judge Renee Harris Tolivar.
Borrayo-Villasenor, Rodriguez, Tapia, Guizar-Hernandez are all citizens of Mexico and were in the United States illegally when the offenses charged occurred.
According to the affidavits filed with the federal complaints, the defendants were involved in a large-scale methamphetamine trafficking organization that involved the recrystallization and distribution of large quantities of methamphetamine and the distribution of heroin, cocaine and marijuana.
A search warrant executed at a residence in Desoto revealed multiple kilograms of methamphetamine and a significant amount, at lease thirty gallons, of liquid methamphetamine. The residence in Desoto was used as a laboratory for the recrystallization of methamphetamine.
A search warrant executed at a residence in Dallas revealed two pounds of heroin, multiple kilograms of methamphetamine, multiple gallons of liquid methamphetamine and approximately $5,000 in cash. This residence was also used as a laboratory for the recrystallization of methamphetamine.
A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the offense charged in the criminal complaints is a maximum penalty of life in federal prison and a $10 million fine.
The Drug Enforcement Administration investigated the case with assistance from the Ellis County Sheriff's Office, Garland Police Department, Waxahachie Police Department, Dallas Police Department, Internal Revenue Service, and Texas Comptroller’s Office.
Assistant U.S. Attorney P.J. Meitl is prosecuting.
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Sarasota Man Sentenced to More Than Nine Years for Possessing Destructive Device, Firearms, and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Steven M. Pace (25, Sarasota) to nine years and one month in federal prison for possessing four destructive devices and for knowingly possessing firearms in furtherance of a drug trafficking crime. The Court also ordered him to forfeit the firearms and ammunition seized as part of this case.
Pace pleaded guilty on January 23, 2017.
According to court documents, in February 2016, Pace, along with Katie Smith, possessed two improvised pipe bombs and two improvised grenades. He also possessed with the intent to distribute approximately 280 grams of AB-fubinaca, a synthetic form of marijuana. Pace and Smith had a number of firearms in their home, one of which was stolen. Pace admitted to carrying at least one of those firearms during his drug transactions.
Smith previously pleaded guilty to possessing destructive devices and was sentenced to 18 months’ imprisonment.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sarasota County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in our communities.
Reading Man Indicted for Trafficking Large Amount of Crystal MethamphetamineRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gilbert Concepcion, age 40, of Reading, Pennsylvania, was indicted on August 8, 2017, by a federal grand jury for crystal methamphetamine trafficking. The case was unsealed on August 31, 2017, following Concepcion’s apprehension.
According to United States Attorney Bruce D. Brandler, the indictment charges Concepcion with conspiring to distribute and possessing with the intent to distribute more than 500 grams of crystal methamphetamine between December 1, 2014 and August 26, 2015. The indictment also charges Concepcion with distributing and possessing with the intent to distribute crystal methamphetamine on May 26, 2015 and on July 15, 2015.
The case was investigated by Homeland Security Investigations and the Pennsylvania Office of the Attorney General. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the charges are life imprisonment. The charge for conspiring to distribute and possess with the intent to distribute over 500 grams of crystal methamphetamine carries a ten-year mandatory minimum sentence of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Previously Convicted Felon and ISIS Supporter from Richmond Charged with Firearms OffenseRead the Press Release
RICHMOND, Va. – A previously convicted felon and alleged supporter of the Islamic State of Iraq and al-Sham (“ISIS”) was arrested yesterday on a charge related to his acquisition of a firearm, three weeks after he was released from state prison.
Casey Charles Spain, 28, of Richmond, was charged by criminal complaint with possession of a firearm as a convicted felon. According to the affidavit in support of the criminal complaint, Spain was incarcerated for over seven years after being convicted in 2010 for abduction with intent to defile. He was released from the Virginia Department of Corrections on August 11, 2017.
According to court documents, while incarcerated, Spain became radicalized and adopted extremist Islamic views. He obtained a tattoo on his cheek that reads “Cop Killa,” and a tattoo of the ISIS flag on his back. Two confidential sources of information who had contact with Spain while he was incarcerated separately reported that Spain swore a pledge of loyalty, commonly known as bayat, to Abu Bakr al-Baghdadi, the leader of ISIS. Spain also allegedly told both individuals that he wanted to travel overseas to engage in jihad on behalf of ISIS, and that if he were not allowed to travel upon his release, he would engage in jihad, to include acts of violence, against targets in the United States.
Given this information, the FBI began conducting intensive surveillance of Spain immediately upon his release from incarceration. This surveillance included making covert contact with Spain through FBI undercover employees (“UCE”) and a confidential human source (“CHS”). According to the complaint affidavit, Spain spoke on multiple occasions to the CHS about his strong desire to both obtain a handgun and travel overseas to engage in actions in support of ISIS. The CHS’s information regarding Spain’s plan was corroborated by several recorded conversations Spain had with still-incarcerated prisoners after his release.
Based upon Spain’s desire to obtain a firearm and the impatience he exhibited with regard to obtaining one, the CHS—as part of a controlled FBI undercover operation—offered to provide Spain with what the CHS described as his own personal weapon. In fact, it was a 9 mm Glock semi-automatic handgun that FBI personnel had rendered inert, for safety reasons.
According to court documents, in the early morning hours of August 31, 2017, as part of the undercover operation, the CHS and an FBI UCE met Spain outside of his Richmond residence. At that meeting, the CHS provided Spain the above-described firearm, and Spain was subsequently arrested by the FBI Richmond SWAT team. Spain initially attempted to flee and escape arrest by running and jumping a nearby fence, but FBI SWAT members pursued Spain on foot and quickly apprehended him. The agents also recovered a cell phone and the gun, which Spain had discarded during the foot-chase.
On August 31, 2017, Spain made his initial appearance in federal court following his arrest on the charge of being a felon in possession of a firearm. United States Magistrate Judge Roderick C. Young ordered that Spain be held without bond pending a probable cause and detention hearing, which is scheduled for September 6, 2017.
Spain faces a maximum penalty of 10 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentence would be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorney Brian Hood of the Eastern District of Virginia and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-mj-152.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Plant City Woman Sentenced in Identity Theft SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Sharmekia Young (36, Plant City) to three years in federal prison for conspiracy and aggravated identity theft. Young pleaded guilty on March 29, 2017.
According to court documents, Young worked at a healthcare company’s billing center in Lakeland, Florida. As an employee of the company, she had password-protected access to the company’s secure computerized databases, which contained medical records and the Personal Identifiable Information (PII) of its customers and patients, including names, dates of birth, and social security numbers.
Young agreed with another employee, Fontella James, to steal hundreds of patients’ records containing the PII of their customers, to sell to another co-conspirator, Vickie Bryant. Young and James provided the PII to Bryant so that Bryant could sell the information to another individual who then manufactured, sold, and used counterfeit credit cards and counterfeit State of Florida Drivers Licenses. On or about June 9, 2016, and again on June 16, 2016, Bryant met with the individual and sold him PII of 957 different victims.
In December 2016, Bryant was sentenced to 4 years’ imprisonment for access device (credit card) fraud and aggravated identity theft. James was sentenced to 32 months’ imprisonment for conspiracy and aggravated identity theft in June 2017.
This case was investigated by the U.S. Secret Service, the Florida Department of Law Enforcement, and the Tampa Police Department, as part of the Secret Service’s Financial Investigations Strike Team. It was prosecuted by Assistant United States Attorneys Rachel Jones, Amanda Riedel, and Adam Saltzman.
Oklahoma Man Sentenced for His Role in Prison Tax Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Edwin Forrest Ludwig III, 61, of Oklahoma, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to a year and a day in prison and ordered to pay $191,465 in restitution for conspiring to defraud the United States with false claims for federal tax refunds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, the defendant’s son, Edwin Forrest Ludwig IV, ran a tax fraud scheme out of the California Correctional Center in Susanville that involved at least seven co-conspirators. Four of the conspirators who were incarcerated at the correctional center obtained personal identification information of other inmates. Co-conspirators who were not incarcerated took this information and prepared and filed false income tax returns with the IRS, claiming refunds that they knew to be false and to which the inmates were not entitled. Ludwig III, who was not an inmate, assisted the scheme by opening bank accounts to deposit the fraudulently obtained refunds and transferring the money for use by the incarcerated co-conspirators.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock prosecuted the case.
To date, five co-conspirators have pleaded guilty. Four have been sentenced for their participating in this scheme, including Ludwig IV, who was sentenced to seven years in prison, and one defendant is set to be sentenced later this month. Charges are pending against one remaining co‑defendant. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.Newport News Man Convicted of CarjackingRead the Press Release
NEWPORT NEWS, Va. – Adrian D. Briggs, 21, was convicted today by a federal jury on charges of carjacking and brandishing a firearm in furtherance of a crime of violence.
According to court records and evidence at trial, on Aug. 11, 2016, Newport News Police Department officers responded to a hotel parking lot following a report of a carjacking in which Briggs had brandished a firearm and threatened the victim, a U.S. Army veteran who had served two tours of duty in Iraq and Afghanistan. The victim had agreed to loan Briggs his cell phone, which Briggs then took along with the car.
The investigation revealed video footage showing a man matching the defendant’s description entering the hotel shortly before the carjacking, and another video showing the same person pulling into a nearby 7-Eleven in the victim’s car just before using the victim’s credit card at the location. Briggs’ DNA was identified by fingerprints in the victim’s car, and the victim positively identified Briggs from a photo spread. In addition, phone records showed that Briggs had used the victim’s cell phone to call Briggs’ mother and sister on the morning of the crime.
Briggs faces a maximum penalty of 22 years in prison when sentenced on November 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Richard W. Myers, Chief of Newport News Police, made the announcement after the verdict was accepted by U.S. District Judge Raymond A. Jackson. Managing Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Bethany J. Lipman of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-33.
New Zealand Man Pleads Guilty to Transporting Child PornographyRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Bobby Mataara Owens, 40, of Turangi, New Zealand, pleaded guilty today in U.S. District Court to transporting child pornography.
According to court records, in December 2016, a federal agent in Maine was investigating the sharing of child pornography over the internet. The agent chatted online with Owens, who sent the agent several images of minors engaged in sexually explicit conduct. Further investigation revealed that Owens was using an IP address assigned to a residence in Valley Village, California. A federal search warrant was obtained for the residence and executed later the same day. Owens was present at the residence, and admitted to investigators that he had sent the images to the agent earlier in the day.
Owens faces between five and 20 years in prison, between five years and life on supervised release and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Los Angeles Police Department.
Murfreesboro Man Charged with Obstruction of Justice in Relation to Islamic Center VandalismRead the Press Release
Charles Dwight Stout, III, 19, of Murfreesboro, Tennessee, was indicted Wednesday by a federal grand jury and charged with obstruction of justice, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. The charge relates to the ongoing investigation into the vandalism of the Islamic Center of Murfreesboro on July 10, 2017.
According to the indictment, on July 10, 2017, Stout and another man vandalized the Islamic Center by placing bacon around an entrance and spray painting profane references to Allah on the exterior of the building. Islam prohibits the consumption of pork.
Both men wore masks during the crime to conceal their identities, including a World-War-II-era Nazi gas mask. Stout also used a cell phone to take photos during the vandalism.
Members of the Islamic Center discovered the vandalism within hours of its occurrence, when they attended Morning Prayer and immediately reported it to law enforcement. Following the vandalism, Stout destroyed the clothing that he wore and permanently deleted the photographs that he took with his cell phone. The indictment alleges that Stout deleted photographic evidence.
- tragic events in Charlottesville, Virginia remind us of the devastating impact that acts of hate have on our communities and our neighbors,” said Acting U.S. Attorney Jack Smith. “When we are confronted with acts of hate it is incumbent upon every American to speak loudly and clearly that we will not tolerate such actions in America. Our reaction to such acts of hate speaks to who we are as individuals and as a society. Where those actions constitute federal crimes it is incumbent on federal authorities to vigorously investigate and prosecute the perpetrators of such heinous acts.
Our office will utilize all available means to protect the freedom to practice one’s religion without fear, intimidation or harassment. We will prosecute to the fullest extent of the law those who, because of hate and ignorance, seek to interfere with that freedom. In desecrating this house of worship, the defendant sought to undermine the religious freedoms of members of the Islamic Center of Murfreesboro, the very freedoms that this country was founded upon. The FBI immediately began investigating these cowardly acts of intimidation against Muslims throughout Tennessee, however, the defendant sought to cover up his crimes by destroying evidence. Our investigation is continuing but this indictment is the first step toward holding him accountable for these despicable acts.”
Stout surrendered to U.S. Marshals this morning and will be making an initial appearance before a U.S. Magistrate later this afternoon.
If convicted, Stout faces up to 20 years in prison. An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
The investigation by the Federal Bureau of Investigation and the Rutherford County Sheriff’s Office is continuing. Assistant United States Attorneys Henry C. Leventis and Sara Beth Myers are prosecuting the case.
Missouri Man Pleads Guilty to Coralville Bank RobberyRead the Press Release
DAVENPORT, IA – Peter Lundberg, 60, of St. Ann, Missouri, pled guilty to one count of bank robbery in United States District Court on September 1, 2017, announced United States Attorney Kevin E. VanderSchel.
During his plea, Lundberg admitted to robbing Bank of the West in Coralville, Iowa, on April 20, 2017. Lundberg stole approximately $1,080 from the bank, which law enforcement later recovered.
Sentencing is scheduled for January 8, 2018, at 1:00 p.m. Lundberg faces a maximum prison term of 20 years, and/or a fine up to $250,000; and, up to five years of supervised release. A mandatory special assessment of $100 per count will also be imposed.
The Coralville Police Department and the Federal Bureau of Investigation conducted the investigation. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Jason T. Griess at 515-473-9300, or by emailing him at [email protected].