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13 October 2017
Jennings man pleads guilty to posting nude photos online of female victimRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Jennings man pleaded guilty Wednesday to posting nude photos online and threatening to post more photos of a female victim.
Christopher Redeaux, 21, of Jennings, La., pleaded guilty before U.S. District Judge Jay C. Zainey to one count of interstate transmission of extortionate communication. According to the guilty plea, Redeaux obtained nude pictures of a woman with whom he had a relationship. After their relationship ended, he threatened to publish the pictures on the internet if the woman did not provide more. After obtaining additional pictures, Redeaux posted some of the photos to Facebook using a fictitious account. He sent a friend request to the victim and her friends. The victim later encountered Redeaux at school, and he invited her to his dorm room where she rejected his sexual advances. Days later, Redeaux began to harass her through an online account and telephone calls. During their last conversation, he ended it by saying “Yup sending your pics.” The victim filed a complaint with McNeese State University Police on December 2, 2015. Redeaux was arrested on several state charges including cyberstalking, sexual battery and cyberbullying. Redeaux’s cell phone was searched and a folder containing the nude photos of the victim were found.
Redeaux faces up to two years prison, one year of supervised release and a $250,000 fine. The court set a December 6, 2017 sentencing date.
The FBI, McNeese State University police and the Greater Houston Regional Computer Forensics Laboratory conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and T. Forrest Phillips are prosecuting the case.
Jacksonville Cardiovascular Practice Agrees to Pay More Than $440,000 to Resolve False Claims Act Allegations for Failing to Reimburse Government Health Care ProgramsRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that First Coast Cardiovascular Institute, P.A. (“FCCI”) has agreed to pay $448,821.58 to resolve allegations that it violated the False Claims Act by knowingly delaying repayment of more than $175,000 in overpayments owed to Medicare, Medicaid, TRICARE, and the Department of Veterans Affairs.
Specifically, the government alleges that FCCI accrued credit balances or overpayments owed to federal health care programs. These credit balances often occur in a medical practice, for example, when two insurers share responsibility for a payment and one pays too much. In 2009, amendments to the False Claims Act made it a violation to knowingly fail to pay back an obligation owed to the United States and its federal health care programs. Despite repeated warnings, FCCI failed to pay back the money it owed to Medicare, Medicaid, TRICARE, and the VA until being notified that the Department of Justice had opened an investigation into their failure to repay the government.
“When FCCI learned that it had received over $175,000 in potential overpayments to federal health care programs in 2016, it had a legal obligation to return those funds within 60 days,” stated Acting U.S. Attorney Stephen Muldrow. “Instead, they delayed repayment, ultimately retaining thousands of dollars to which they were not entitled. This settlement should send a message that we will aggressively pursue those who seek to unjustly profit from our nation’s federal health care programs.”
“This settlement is the result of successful inter-agency cooperation, resulting in the return of overpayments owed back to the government,” stated Special Agent in Charge Monty Stokes from the Office of Inspector General, U.S. Department of Veterans Affairs. “This settlement will hopefully be a deterrent for others who consider similar practices.”
“Failing to return Medicare overpayments is unacceptable and diverts critical tax dollars from their intended purpose,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “The OIG, along with our law enforcement partners, will hold health care companies accountable who knowingly hold onto Medicare funds to which they are not entitled.”
“This settlement demonstrates the ongoing commitment of the Defense Criminal Investigative Service to protect the integrity of the U.S. military health care program, known as TRICARE,” said Special Agent in Charge John F. Khin, Southeast Field Office. Through joint investigations with our investigative partners, DCIS aggressively pursues all remedies against medical providers who fail to deal honestly with the Department of Defense, to preserve our tax dollars where they are needed most.”
The settlement concludes a lawsuit originally filed by a former employee of FCCI, Douglas Malie, in the United States District Court for the Middle District of Florida. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Mr. Malie will receive roughly $90,000 of the proceeds from the settlement with FCCI.
The government’s action in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the State of Florida, the Defense Criminal Investigative Service, the Department of Veterans Affairs, and the U.S. Department of Health and Human Services – Office of Inspector General. It was handled by Assistant U.S. Attorney Shea Gibbons.
The case is captioned United States and the State of Florida ex rel. Malie v. First Coast Cardiovascular Institute, P.A., et al., Case No. 3:16-cv-10548-J-34MCR. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Honduran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Honduran national was indicted yesterday in federal court in Boston on a federal immigration charge.
William Maradiaga-Oseguera, 32, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, on Aug. 29, 2017, law enforcement officers in Boston encountered Maradiaga-Oseguera and determined him to be illegally present in the United States. Maradiaga-Oseguera was previously deported on March 27, 2009; March 17, 2012; July 9, 2012; and Nov. 13, 2013.
Maradiaga-Oseguera faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Honduran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Honduran national was indicted yesterday in federal court in Boston on a federal immigration charge.
Alan Fernando Dominguez Banegas, 24, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, on Sept. 22, 2017, law enforcement officers in Framingham encountered Dominguez Banegas and determined him to be illegally present in the United States. Dominguez Banegas was previously deported on May 30, 2014.
Dominguez Banegas faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hartford Man Pleads Guilty to Federal Charge Stemming from Threats against JudgeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DUSAN MLADEN, also known as David Mladen, 62, of Hartford, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of making a false statement to a federal law enforcement agent investigating threats against a U.S. Bankruptcy Court Judge.
According to court documents and statements made in court, MLADEN was a litigant in a proceeding pending before the U.S. Bankruptcy Court in the District of Connecticut, captioned In re: Eternal Enterprise, Inc. MLADEN formerly owned Eternal Enterprise, Inc., which owns several residential apartment properties in Hartford, and he has continued to be active in the management and decision making for the company.
On July 5, 2017, the judge presiding over the Eternal Enterprise matter discovered in the mailbox of her residence an anonymous handwritten note containing the phrases “BACK OFF,” “YOU ARE OVERSTEPPING AUTHORITY” and “JUST WARNING FOR NOW.”
On July 10, the judge received a phone call that had been placed to her home phone number. During the call, the caller stated that he had visited the judge’s house last week and “I left a message for you.” He said that he wanted her to file an order tomorrow “extending the deadline to September 30,” and “then maybe everything will be ok.” Although the caller refused to identify himself, the judge recognized the voice as MLADEN’s. The U.S. Marshals Service subsequently confirmed that the cell phone used to make the call was at a location in the vicinity of MLADEN’s residence, and that it had been purchased by MLADEN under a fictitious name.
On July 11, deputy U.S. Marshals interviewed MLADEN at his residence. During the conversation, MLADEN denied having gone to the judge’s house the previous week and having called the judge on July 10, and he stated that he did not have the judge’s phone number. Each of these statements was false. Pursuant to a court-authorized search of MLADEN’s car, the U.S. Marshals discovered that the judge’s home address was programmed into the defendant’s GPS unit.
MLADEN has been detained since his arrest on July 11.
Judge Meyer scheduled sentencing for January 15, 2018, at which time MLADEN faces a maximum term of imprisonment of five years.
This matter is being investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney William J. Nardini.
Harrison County man admits to maintaining a drug houseRead the Press Release
CLARKSBURG, WEST VIRGINIA - A Clarksburg, West Virginia man has admitted to having a drug-involved premises, Acting United States Attorney Betsy Steinfeld Jividen announced.
Eric K. Malcomb, age 36, pled guilty to one count of “Maintaining a Drug-Involved Premises.” Malcomb admitted to maintaining a house on Penn Street in Clarksburg for the purpose of distributing heroin in July 2015.
Malcomb faces up to 20 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan Man Arrested in Guilderland, NY Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Diego Efrain Ceto De Leon, 24, of Guatemala, was sentenced today to time served (27 days), for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), Field Office Director Thomas E. Feeley, Buffalo, New York Field Office.
As part of his guilty plea, Ceto De Leon admitted that he was an alien, a citizen of Guatemala, and that he illegally returned to the United States after he was removed to Guatemala on July 29, 2014.
On September 16, 2017, Ceto De Leon was encountered and arrested by ICE officers in Guilderland, New York. A fingerprint check of Ceto De Leon resulted in the discovery of the prior removal.
Following the sentencing, Ceto De Leon was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
The case was investigated by United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Groton Man Sentenced to Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD HUGHES, 42, of Groton, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 12 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, an investigation by the FBI Northern Connecticut Safe Streets Task Force, Norwich Police Department, Waterford Police Department and Groton Town Police revealed that in the summer of 2016, Paul Mott, of Groton, conspired with others to obtain and distribute cocaine. Mott regularly took orders for cocaine from HUGHES and other co-conspirators and then drove to his supplier in the Bronx, New York, to obtain the drug. When he returned to Connecticut, Mott provided the cocaine to HUGHES and others for further distribution. Some of Mott’s narcotics trafficking activity occurred his restaurant, Caribbean American Kitchen to Go, located on Truman Street in New London.
HUGHES and Mott were arrested on August 8, 2016. On that date, a search of HUGHES possessed 319 grams of cocaine.
On May 9, 2017, HUGHES pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine.
Mott also pleaded guilty and, on September 5, 2017, was sentenced to 60 months of imprisonment. He also was ordered to forfeit a 2013 Toyota 4Runner and approximately $3,494 that was seized from him at the time of his arrest.
Three other individuals were charged and convicted as a result of this investigation.
This case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Glenville Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Glenn Mears, 44, of Glenville, New York, pled guilty today to one count of distributing and ten counts of possessing child pornography, announced Acting United States Attorney Grant C. Jaquith and Special Agent in Charge Kevin Kelly, Department of Homeland Security, Homeland Security Investigations (HSI).
As part of his guilty plea, Mears admitted to distributing child pornography using the Internet-based messaging application, “Kik,” and to possessing images and videos of child pornography on ten compact discs. Mears also admitted that he possessed child pornography involving prepubescent children and children under 12 years of age.
Sentencing is scheduled for February 12, 2018, in Albany, New York.
Mears, who is detained pending sentencing, faces at least 5 years and up to 20 years in prison on the distribution of child pornography count, and faces a total of 160 years imprisonment on the possession counts. Mears will receive a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000 on each count. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Garland Man Sentenced to 60 Months in Federal Prison for Stealing over 2,000 Individuals’ IdentificationRead the Press Release
DALLAS — Alan Okpechi, 30, of Garland, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 60 months in federal prison for identify theft, announced U.S. Attorney John Parker of the Northern District of Texas.
Okpechi pleaded guilty to one count of conspiracy to commit access device fraud and has been in custody since his arrest in July 2016.
Krisstopher Segura-Jatip and Morgen Nelson also pleaded guilty to their role in the conspiracy and were sentenced to 57 months and 24 months in federal prison, respectively.
According to plea documents filed in the case, beginning in April 2015 and continuing through July 13, 2016, Okpechi and his coconspirators purchased the identification of individuals, including names, social security numbers, driver's license numbers, and credit card numbers, through websites. Okpechi used the stolen and unauthorized identification to create false identification documents, including false Texas temporary driver's licenses, bearing the photos of Okpechi and his codefendants. The stolen identification was also used to make fraudulent, unauthorized purchases with credit and/or debit card accounts. Okpechi used an algorithm and an application on Nelson’s phone in order to generate credit card numbers that corresponded with and accessed open accounts to which Okpechi did not have authorization to access. Okpechi and other coconspirators obtained blank plastic cards or altered debit, credit, and gift cards, for the purpose of recoding the cards with unauthorized credit card information. The credit cards were used on several occasions to reserve hotel rooms, including entire floors of hotels, and to rent vehicles.
Over the course of the conspiracy, Okpechi had possessed over 2,000 accounts belonging to other individuals.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
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Gaming Center Owner Sentenced for Obstructing Justice in ISIS CaseRead the Press Release
ALEXANDRIA, Va. – An owner of a Fairfax gaming center was sentenced to prison today for obstructing justice and making false statements involving international terrorism.
Michael Queen, 28, of Woodbridge, was sentenced to 2 years in prison. According to court documents, Queen and Soufian Amri, 32, of Falls Church, lied to FBI agents to prevent them from learning about and investigating their friend Haris Qamar’s attempt to travel to join the Islamic State of Iraq and al-Sham (ISIS). Queen and Amri knew that Qamar had attempted to travel overseas to join ISIS in 2014, yet they lied to and misled the FBI by saying that the only person they knew who might travel to join ISIS was a “tall, thin, Indian” individual. Queen later told Qamar that Queen and Amri gave the FBI the name of a Hindu individual as someone who might support ISIS. Queen told Qamar, “I’m never going to throw a Muslim underneath the bus to try to do the right thing.”
Qamar was sentenced to 8 1/2 years in prison on February 17 for attempting to provide material support to ISIS. Amri is scheduled to be sentenced on October 27.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Gordon D. Kromberg and Colleen E. Garcia prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-50.
Four Akron men indicted for distributing methamphetamineRead the Press Release
Four Akron men were indicted in federal court for their roles in a conspiracy to distribute methamphetamine, law enforcement officals said.
Named in the five-count indictment are: Michael E. Davis, 47; James E. Sanders, 50; Christopher J. Proctor, 50, and Rashaad M. Thomas, 40. All four are charged with conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and possession with the intent to distribute more than 500 grams of methamphetamine.
Thomas was charged with an additional count of possession with the intent to distribute more than 500 grams of methamphetamine. Davis and Sanders were also charged with being a felons in possession of a firearm and ammunition.
The investigation was conducted by members of the Akron/Summit County HIDTA Initiative, which includes the Drug Enforcement Administration, Akron Police Department, Ohio State Highway Patrol, Summit County Sheriff’s Office, Summit County Drug Unit, Springfield Township Police Department, Copley Township Police Department, New Franklin Township Police Department, Stow Police Department, Barberton Police Department, Tallmadge Police Department, University of Akron Police Department, Reminderville Police Department, Silver Lake Police Department, Cuyahoga Falls Police Department, and Summit County Prosecutor’s Office.
The case is being prosecuted by Assistant U.S. Attorney Teresa Riley.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Founder and Ceo of Wright Time Capital Group Pleads Guilty to Commodities FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MICHAEL S. WRIGHT pled guilty today before U.S. District Judge Paul A. Engelmayer to commodities fraud in connection with WRIGHT’s operation of an investment fund, Wright Time Capital Group (“WTCG”). WRIGHT induced victims to invest in his fund by misrepresenting the historical trading performance of WTCG, and, after obtaining investor funds, misappropriated a large portion of them for his personal use and benefit. Additionally, after losing most of the funds he actually invested in unsuccessful forex trades, WRIGHT hid those losses from investors by issuing fake account statements and began operating WTCG as a Ponzi scheme, obtaining funds from new investors and using those funds to make payments to earlier investors who were demanding the return of their investments.
Acting U.S. Attorney Joon H. Kim said: “Michael Wright used WTCG as his personal piggy bank, issuing fraudulent account statements that covered up the losses WTCG incurred, and ultimately operating WTCG as a Ponzi scheme. Thanks to the dedicated work of the FBI, Wright will now be held to account for his fraudulent scheme.”
According to the Complaint, the Indictment, and other statements made in open court:
WRIGHT started WTCG in January 2011, and ultimately obtained more than $400,000 in investments from victims (the “Victims”). In his pitch to potential investors, WRIGHT misrepresented WTCG’s investment performance, falsely claiming that he had achieved double-digit gains through forex trading in WTCG’s first six months of existence. In fact, from the outset of WTCG, WRIGHT earned little to no money through his forex trading, and WRIGHT repeatedly falsified account statements to the Victims. Additionally, after obtaining Victim funds, WRIGHT did initially purchase some forex trades on their behalf, but then began to steal their money, using investor funds to pay for personal expenses, including hotel stays, travel, and tattoos.
Eventually, WRIGHT operated WTCG as a Ponzi scheme, soliciting funds from new investors in order to use their funds to make payments to other Victims who were demanding the return of their investments.
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WRIGHT, 30, of Rockville Centre, New York, pled guilty to one count of commodities fraud, which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.
WRIGHT is scheduled to be sentenced by Judge Engelmayer on January 25, 2018, at 10:00 a.m.
Mr. Kim praised the efforts of the FBI in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
Fort Worth Man Arrested on $25 Million Health Care Fraud SchemeRead the Press Release
FORT WORTH, Texas — A Fort Worth, Texas, man, David Williams, 54, was arrested yesterday by special agents with the Federal Bureau of Investigation on a federal complaint charging him with engaging in a scheme to defraud insurance companies by submitting over $25 million in false and fraudulent claims for medical services. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Williams made his initial appearance yesterday before U.S. Magistrate Judge Jeffrey L. Cureton and will remain on bond pending further court hearings.
According to the criminal complaint affidavit, between November 2012 through August 2017, Williams advertised on his website, getfitwithdave.com that he offered in-home fitness training and therapy through his company, “Kinesiology Specialists.” Williams identified himself as “Dr. Dave” and stated that he served clients in most of Texas, Las Vegas, Denver, Tucson, Seattle, and Orlando. Through his website, Williams told potential clients that he was accepting most health care insurance coverage plans.
In order to bill insurance companies for his services, Williams registered as a health care provider with the Centers for Medicare and Medicaid Services. In completing the application, Williams falsely certified that he was a health care provider. Williams enrolled as a health care provider at least nineteen times under different names or variations of his name and his company names and falsely certified that he was a health care provider in each application. Williams would then bill the insurance companies as if he were a medical physician and as if he had provided care requiring medical decision making of high complexity when Williams actually provided fitness and exercise training to his clients.
According to the criminal complaint affidavit, Williams recruited potential clients through the use of flyers, the internet, and word-of-mouth. Once recruited, Williams would typically meet with or speak with the new client over the phone and review their health history and goals for their planned fitness training. Williams would then typically assign a personal trainer to that individual. The personal trainer typically met with the client between one and three times a week for approximately one hour and provided fitness training. Williams would then bill insurance companies for each training session using inaccurate codes and on certain occasions, billed for services that neither he nor his staff, ever provided.
Between November 2012 through August 2017, Williams was paid in excess of $3.9 million in relation to his fraudulent billing of United HealthCare Services, Inc., Aetna, Inc., and Cigna.
A federal criminal 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 maximum statutory penalty for the charged offense is 10 years in federal prison and a $250,000 fine.
The investigation is being conducted by the FBI. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Former Soldier Who Molested Two Young Children while Residing on Military Base Sentenced to 17+ Years in PrisonRead the Press Release
A former Army soldier was sentenced today in U.S. District Court in Tacoma to 210 months in prison and lifetime supervised release for aggravated sexual abuse of a minor, announced U.S. Attorney Annette L. Hayes. WIMIBALDO EVER CEDENO, 55, was arrested in Tacoma in September 2015, following a domestic violence assault at his home. The investigation revealed that CEDENO had sexually molested two children between 2002 and 2006, while CEDENO resided on military bases, including the Fort Lewis Military installation (now Joint Base Lewis-McChord or JBLM). The victims were between the ages of seven and twelve-years-old. At the sentencing hearing U.S. District Judge Robert J. Bryan said, “I need to protect the public. . . . These were very serious ongoing long-term offenses.”
According to records filed in the case, CEDENO molested and raped his young victims while threatening them with loss of their home and financial support if they reported the abuse. The abuse occurred when other adults were not present in the home. CEDENO left the military in 2011 and resided in Tacoma. The abuse was ultimately disclosed to the Tacoma Police and U.S. Military investigators after CEDENO was arrested for shoving his wife during an argument. The victims worked with law enforcement, obtaining recorded statements from CEDENO admitting he sexually molested them.
CEDENO pleaded guilty in May 2017. These crimes are being prosecuted in federal court because they occurred on a military base in an area of exclusive federal jurisdiction.
The case was investigated by the FBI, the U .S. Army Criminal Investigation Division (Army-CID), and the Tacoma Police Department. The case was prosecuted by Assistant United States Attorney Grady Leupold who serves as the Military Liaison for the U.S. Attorney’s Office.
Former Settlement Agent Convicted of Mortgage Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A former settlement agent from Wyckoff, New Jersey, was convicted at trial today on charges related to the refinancing of properties in Bergen and Morris Counties, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Mark Andreotti, 46, was found guilty on all six counts of an indictment charging him with bank fraud, conspiracy to commit bank fraud, tax evasion, and failure to file tax returns. He was convicted following a two-week trial before U.S. District Judge Susan D. Wigenton in Newark federal court. The jury deliberated one and a half hours before returning its verdict.
According to documents filed in this case and the evidence at trial:
In January 2010, Andreotti submitted a loan application to a bank requesting $625,000 to refinance the mortgage on his house in Wyckoff. Andreotti, who owned and operated Metropolitan Title and Abstract (Metropolitan), used Metropolitan as the settlement agent on the transaction. After the bank transferred the $625,000 for the refinance to Metropolitan’s escrow account, Andreotti spent the money on personal expenses instead of paying off the first mortgage on the house.
In April 2011, Andreotti conspired with another individual who worked as a real estate attorney to obtain $480,000 by claiming that the money would be used to refinance the mortgage on the attorney’s house in Montville, New Jersey. After the bank transferred the money for the refinance to Metropolitan’s escrow account, Andreotti kept $110,000 for himself before transferring the remaining funds to the other conspirator.
In 2010, the IRS initiated collection actions against Andreotti for unpaid personal income taxes. Despite numerous liens and levies and having five rental income properties in addition to his primary residence, Andreotti continued to evade his taxes. He also failed to file tax returns for the tax years 2010 and 2011.
The bank fraud counts are each punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The tax evasion count is punishable by a maximum potential penalty of five years in prison and a $100,000 fine. The counts of failure to file tax returns are each punishable by a maximum potential penalty of one year in prison and a $25,000 fine. Sentencing is scheduled for Jan. 23, 2018.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark; special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark; and investigators with the U.S. Attorney’s Office, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Shana Chen in Newark and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing and Finance Agency – Office of Inspector General.Defense counsel: John P. McGovern Esq. and Christopher Dunn Esq., of Newark.
Former Postal Employee Sentenced for Stealing Items from the MailRead the Press Release
Roanoke, VIRGINIA – A former employee of the United States Postal Service was sentenced yesterday in federal court for stealing items from the mail, including cash, Acting United States Attorney Rick A. Mountcastle announced.
Michelle Spinner, 56, of Big Island, Virginia, was sentenced yesterday to a period of probation of two years and ordered to pay $2,603 in restitution. Spinner previously pleaded guilty to a one count Information charging her with theft of mail matter by an officer or employee of the United States Postal Service.
According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, Spinner worked as a mail-processing clerk at the Roanoke Processing and Distribution Center. She began working for the USPS in 2005.
In January 2015, The United States Postal Service- Office of the Inspector General began an investigation into the handling of mail at the processing and distribution center after receiving complaints from customers about mail being “rifled.”
During the course of the investigation, video cameras captured Spinner working on a flat sorter on several occasions. While working on the flat sorter, Spinner could be seen pausing on certain pieces of mail and spending an extended period with her hands deep in a container. On occasion, video captured Spinner opening mail, removing cash and placing the cash in her pocket.
In all, Spinner stole a total of $2,603 in cash from mail at the processing center.
The investigation of the case was conducted by the United States Postal Service-Office of the Inspector General. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Former Nurse Convicted of Wire Fraud and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – After a three-day trial, Tangela Lawson-Brown, 41, of Midway, Florida, was convicted yesterday of wire fraud, theft of government funds, possession of unauthorized access devices, and aggravated identity theft. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between October 2011 and December 2012, Lawson-Brown worked as a nurse at a Tallahassee nursing home. In January 2013, the Tallahassee Police Department seized items from Lawson-Brown’s vehicle after the arrest of her husband. These items included a notebook containing the personally identifiable information (“PII”) of more than 150 people, including 26 patients at the nursing home where Lawson-Brown was previously employed.
Subsequent investigation by the Internal Revenue Service revealed that fraudulent 2011 income tax returns were filed using the PII of 105 persons listed in the notebook, including 24 of the nursing home patients. Over one million dollars in fraudulent claims were filed as part of the scheme. While the IRS detected many of the fraudulent returns, refunds totaling approximately $141,790 were disbursed.
During the trial, the government presented evidence that tax fraud proceeds were deposited into multiple bank accounts controlled by Lawson-Brown and that the fraud proceeds were used to pay Lawson-Brown’s mortgage, car repairs, and other personal expenses. Many of the identity theft victims were elderly patients in Lawson-Brown’s care. In several instances, fraudulent returns were filed within days of the patients arriving at the nursing home.
The sentencing hearing is scheduled for January 4, 2018, at 1:30 p.m. at the United States Courthouse in Tallahassee. Lawson-Brown faces a maximum of 20 years in prison for each of the wire fraud counts, a maximum of 10 years in prison for each of the theft of government funds and possession of unauthorized access devices counts, and a consecutive 2 year sentence for aggravated identity theft.
U.S. Attorney Canova said: “This case illustrates the vulnerability of elderly and disabled persons. Relatives and other caregivers should be alert to unauthorized tax returns, bank accounts, credit cards, and financial transactions, and should immediately report identity theft crimes to law enforcement agencies.”
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation, the United States Secret Service, and the Tallahassee Police Department. Assistant United States Attorney Michael T. Simpson prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Navy Comptroller Sentenced for Accepting Illegal GratuitiesRead the Press Release
NORFOLK, Va. – A former comptroller for the Norfolk Ship Support Activity (NSSA) was sentenced today to 40 months in prison for conspiracy to receive gratuities by a public official.
According to court documents, William R. Hutsenpiller, 57, of Mount Dora, Florida, oversaw the $200 million operating budget for the NSSA while serving as the civilian GS-15 Financial Department Head/Comptroller from October 2009 through November 2013. During this time, Hutsenpiller conspired with others to essentially force a government prime contractor to use a specified subcontractor—Global Services Corporation, based in Fayetteville, North Carolina—that he knew would collaborate with him to misuse government funds. As part of the scheme, Hutsenpiller directed the prime contractor to pass government funds to Global, a defense subcontractor, and in turn, Hutsenpiller directed Global to withhold unexpended funds that should have been returned to the government or to the prime contractor.
From 2010 through 2014, Hutsenpiller made numerous requests that Global provide him with various items of value and services for his personal use, which Global agreed to purchase with government funds. The gratuities that Global provided to Hutsenpiller included a variety of personal electronic items and accessories for Hutsenpiller and his family, such as cell phone service and accessories, multiple iPads, a computer, home thermostat, and streaming television boxes.
On April 10, 2017, Hutsenpiller pleaded guilty to receiving $35,870.69 in gratuities from Global Services Corp. As part of today’s sentencing, Hutsenpiller was ordered to pay a Restitution Judgment of $35,870.60, and to pay a forfeiture amount of $35,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by the U.S. District Judge Rebecca B. Smith. Assistant U.S. Attorneys Alan Salsbury and Stephen Haynie prosecuted the case.
The Defense Contract Audit Agency (DCAA) provided significant assistance with this 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. 2:17-cr-43.
Final Defendant Sentenced in Crack Distribution ConspiracyRead the Press Release
ALEXANDRIA, Va. – The sixth and final defendant in a multi-state crack cocaine and firearms distribution investigation was sentenced today to nearly 14 years in prison for his role in the conspiracy. As part of this case, ATF Agents and the Prince William County Police seized more than 20 firearms and 800 grams of crack.
Steve Pate, 41, of Shannon, North Carolina, was sentenced to 167 months in prison. According to court documents, Pate engaged in a conspiracy to distribute crack cocaine from at least May 2016 through February 2017. As part of the conspiracy, Pate would purchase cocaine, which he would prepare into crack. Pate would then supply the crack to co-conspirators Jerry Bullard and Cedric McEachern, who sold the drugs from a trailer in Robeson County, North Carolina.
As part of the conspiracy, co-conspirators Kristie Middleton and Kevin Shaw traveled from Virginia to purchase multi-ounce quantities of crack from Bullard and McEachern, and firearms from Bullard. Middleton and Shaw then returned to Dale City, Virginia, where they redistributed the crack and possessed and sold firearms alongside co-defendant Nifer McLaurin. See the table below for information on each defendant in this case.
Name, Age
Hometown
Pleaded Guilty to
Sentencing
Nifer McLaurin, 20
Dale City, Virginia
Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 5 years on March 24
Kevin Shaw, 42
Dale City, Virginia
Conspiracy to distribute 28 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 10 years on March 31
Cedric McEachern, 41
Red Springs, North Carolina
Conspiracy to distribute 28 grams or more of cocaine base
Sentenced to 10 years on June 30
Jerry Bullard, 37
Shannon, North Carolina
Conspiracy to distribute 280 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 15 years on July 21
Kristie Middleton, 40
Dale City, Virginia
Conspiracy to distribute 280 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 15 years on August 4
Steve Pate, 41
Shannon, North Carolina
Conspiracy to distribute 280 grams or more of cocaine base
Sentenced today to 167 months
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Paul D. Vanderplow, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Stephan M. Hudson, Chief of Prince William County Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Tobias D. Tobler prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-149.
Federal Jury Hands Down Guilty Verdicts Against Three Charlotte Gang MembersRead the Press Release
CHARLOTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that a federal jury seated in Charlotte has returned guilty verdicts against three United Blood Nation (UBN or Bloods) gang members on multiple charges for crimes related to the gang’s racketeering activities, including three murders. U.S. District Judge Max O. Cogburn, Jr. presided over the three-week trial, which began on September 21, 2017.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Rose in making today’s announcement.
The jury convicted Randall Hankins, II, a/k/a “Foe,” 23, Nana Yaw Adoma, a/k/a “Ratchet,” 22, and Akheem Tahja McDonald, a/k/a “Lil Keem” or “Savage,” 23, of racketeering conspiracy charges. Hankins was also convicted of two counts of murder in aid of racketeering, for his role in the 2014 murders of Douglas and Deborah London, and two counts of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Douglas and Deborah London.
Adoma and Akheem McDonald were convicted of one count of murder in aid of racketeering for the 2013 murder of Kwamne Donqurius Clyburn, and one count of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Kwamne Donqurius Clyburn. Adoma was also convicted of one count of assault with a dangerous weapon in aid of racketeering and one count of use or carry of a firearm in relation to a crime of violence and possession of firearm in furthertance of a crime of violence, for his role in the armed robbery of a business owned by the Londons.
Two co-defendants, Jamell Lamon Cureton and Malcolm Jarrel Hartley, were previously sentenced to life in prison for the murders of the Londons and related racketeering activity charges. Cureton received a second life sentence for his involvement in the murder of Kwamne Clyburn. Seven co-defendants have pleaded guilty to racketeering conspiracy charges and are currently awaiting sentencing. They are: David Lee Fudge a/k/a “Flames” or “Flame;” Daquan Lamar Everett a/k/a “Day Day;” Nehemijel Maurice Houston a/k/a “Mijel” or “Swagg Out;” Briana Shakeyah Johnson a/k/a “Breezy B” or “Breezy V;” Ibn Rashaan Kornegay a/k/a “IB;” Centrilia Shardon Leach a/k/a “CeCe;” and Rahkeem Lee McDonald a/k/a “Hitman” or “Big Keem.”
According to court filings, trial evidence, witness testimony, admissions contained in filed plea documents and other court proceedings:
Beginning at least in or about 2012, Cureton, Hartley and their co-defendants were members of the United Blood Nation gang (UBN or Bloods) in Charlotte. As UBN members, the defendants carried out violent acts for the purpose of protecting and furthering the gang’s power. The defendants operated according to a common set of Bloods’ rules and participated regularly in gang meetings to discuss, among other things, the commission of crimes, including robbery and murder.
Cureton is a member of the Charlotte-area UBN and holds the rank of 5-Star General. As early as 2007, Cureton reported his affiliation with the UBN as a Valentine Blood. Law enforcement seized Cureton’s UBN “Book of Knowledge,” wherein he was identified as a 3-Star General and has since been promoted to a 5-Star General. As a 5-Star General, Cureton commanded the gang’s activities in the area. Hartley is also a member of the Charlotte-area Valentine Blood set of the UBN. Hartley was “ranked up,” or “promoted,” to a 2-Star General, following the murders of Douglas and Deborah London.
On or about May 25, 2014, Cureton, Adoma and Fudge robbed “The Mattress Warehouse,” in Pineville, N.C., owned by Douglas and Deborah London. A federal indictment charged Cureton, Adoma and Fudge in connection with the robbery. In the months that followed, Cureton communicated with Hartley and other UBN gang members and associates, including co-defendants Everrett, Hankins, Houston, Johnson, Kornegay, Leach, and Rahkeem McDonald to plan the murders of the Londons. In a letter Cureton sent from prison, Cureton explained that he ordered the murder of Douglas London because the victim was going to testify against him in court, and described Deborah London as “collateral damage.”
According to evidence presented at trial and witness testimony, after the gang’s leadership authorized Hartley to proceed with the murder, Hankins gave Hartley the gun he used to carry out the murders. Hankins also gave Hartley a plastic shopping bag and instructed him to wrap the bag around the gun so the spent cartridges would fall in the bag and would not be found at the murder scene. On or about October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed Douglas and Deborah London at their home. According to trial evidence and witness testimony, sometime after the murders, Hankins sent Kornegay a text with a link to a news story about the couple’s murders.
Following the Londons’ murders, UBN leadership directed the gang members to “lay low” and to avoid contact with law enforcement. Cureton also told Hartley that from that point forward the topic of the victims’ murders was forbidden to be discussed and authorized action against any person who talked about it. Witnesses testified that Hankins was upset that other gang members had been “ranked-up,” or promoted within the ranks of the gang, as a result of the murders, except him.
Trial evidence also established that on August 22, 2013, Cureton, Adoma and Akheem McDonald murdered Kwamne Donqurius Clyburn, after luring him to Pressley Road Neighborhood Park, in Charlotte. According to evidence presented at trial, Clyburn sustained seven gunshot wounds by two different firearms. Two of the gunshot wounds were to the back of Clyburn’s head. According to witness testimony and as Cureton previously admitted in court papers, Cureton, Adoma and Akheem McDonald murdered Clyburn because they suspected that Clyburn was “false claiming” (falsely claiming to be a Bloods member), and because Clyburn failed a “DNA check,” meaning that they could not verify Clyburn’s claim to be a Blood.
Hankins, Adoma and Akheem McDonald are currently in federal custody. The maximum penalty associated with the charges of which they were convicted is life in prison. The defendants’ sentences will be determined by the Court, taking into consideration the federal sentencing guidelines and statutory sentencing factors. A sentencing date has not been set yet.
In making today’s announcement, U.S. Attorney Rose commended the FBI for their investigation of the case and thanked CMPD for their assistance. U.S. Attorney Rose also thanked the York County Sheriff’s Office and York County Solicitor Kevin Brackett for their assistance throughout the investigation and prosecution of this case.
Assistant U.S. Attorneys Elizabeth Greene and Don Gast are prosecuting the case.
Federal Inmate Charged with Possession of A WeaponRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joshua Mike, Sr., age 25, an inmate at United States Penitentiary, Lewisburg (USP Lewisburg) was indicted on October 12, 2017, by a federal grand jury for possession of a weapon in prison.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Mike possessed a homemade sharpened piece of plastic, commonly referred to as a “shank,” on June 16, 2017.
The case was investigated by correctional staff at USP Lewisburg and the Federal Bureau of Investigation. Assistant United States Attorney Alisan VanFleet 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 defendant is facing a maximum of five years of incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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East St. Louis Man Sentenced to 10 Years in Prison for Unlawful Possession of FirearmsRead the Press Release
Warren Stepney, Jr., 23, of East St. Louis, Illinois will serve ten years in federal prison for possession of firearms as a previously convicted felon, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Following his prison sentence, Stepney will be on federal supervised release for three years. Stepney has been in custody since his arrest on July 28, 2016.
Documents filed in the U.S. District Court establish that on June 28, 2016, Stepney, was observed by officers loitering outside of a convenience store in East St. Louis, Illinois, along with four other individuals. When the officers approached and questioned Stepney, he reached into his pockets. Officers told him to remove his hands. When he refused, an officer performed a pat down search and found a .380 caliber HiPoint handgun in Stepney’s pocket. The gun was loaded with nine rounds of ammunition, and it had an obliterated serial number.
One month later, on July 28, 2016, an East St. Louis officer initiated a traffic stop of Stepney, who was driving a Kia Sportage that had been reported stolen out of St. Louis, Missouri. The officer approached the car with his service weapon drawn and told Stepney to turn the vehicle off, to which Stepney stated he did not know how. When the officer attempted to reach across Stepney to turn the car off, Stepney tried to reach under the passenger’s seat and then put the vehicle into gear and began to drive away with the officer partially inside the car. Stepney drug the officer approximately 15 feet causing injury to the officer. As Stepney fled, he attempted to drive onto a ramp to the interstate at which time he lost control and crashed. As other officers arrived to assist, Stepney threw a handgun out the driver’s side window before he was taken into custody. The firearm was recovered by the officers and determined to be a fully loaded Citadel Government Model 1911-22.
Court documents further established that Stepney was a previously convicted felon, having been convicted in 2012 of residential burglary in the Circuit Court of St. Clair County, Illinois.
The case was investigated by the East St. Louis Police Department and the Washington Park Police Department. The case was prosecuted by Assistant United States Attorney Ali Summers.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national was indicted yesterday in federal court in Boston on a federal immigration charge.
Amaury Olivo-Rodriguez, 39, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, on April 26, 2017, law enforcement officers in Lawrence encountered Olivo-Rodriguez and determined him to be illegally present in the United States. Olivo-Rodriguez was previously deported on June 30, 2009, and Nov. 4, 2014.
Olivo-Rodriguez faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Sentenced to Six Years in Prison for Sexually Assaulting Stranger Near Metro StationRead the Press Release
WASHINGTON – Dashayn James Slade, 36, of Washington, D.C., was sentenced today to six years in prison for sexually assaulting a stranger who he grabbed while she walked to work near a Metro station in 2009 in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Slade pled guilty in July 2017, in the Superior Court of the District of Columbia, to a charge of attempted first-degree sexual abuse. He was sentenced by the Honorable Lynn Leibovitz. Following his prison term, Slade will be placed on supervised release for the rest of his life. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, early in the morning on Dec. 22, 2009, the victim was walking to work near the Rhode Island Avenue Metro station in the 700 block of Rhode Island Avenue NE. Slade, a stranger to her, grabbed her from the Rhode Island Avenue overpass and pulled her over a concrete wall. Slade then pulled her across railroad tracks and snow until they reached a pile of railroad timber. He then sexually assaulted her.
Slade was identified using DNA evidence years after the offense and arrested in January 2016. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of the Metropolitan Police Department (MPD), including the Sexual Assault Cold Case Unit, which investigated the case. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key and Victim/Witness Advocate Juanita Harris. Finally, she expressed appreciation for the work of Assistant U.S. Attorneys Elana Suttenberg and Stuart D. Allen, who investigated and prosecuted the case.
District Man Sentenced to 13 Years in Prison for Fatally Shooting Man in Broad DaylightRead the Press Release
WASHINGTON – Seth Holmes, 23, of Washington, D.C., was sentenced today to 13 years in prison for killing a man earlier this year in Southwest Washington, U.S. Attorney Jessie K. Liu announced.
Holmes pled guilty in August 2017 to a charge of voluntary manslaughter while armed. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon sentence of at least 10 years and up to 14 years in prison. The Honorable Lynn Leibovitz accepted the plea today in the Superior Court of the District of Columbia and sentenced Holmes accordingly. Following his prison term, Holmes will be placed on five years of supervised release.
The government’s evidence demonstrated that on May 9, 2017, at approximately 2:05 p.m., officers with the Metropolitan Police Department (MPD) received a call to respond to a shooting that occurred in the 100 block of Irvington Street SW. Upon arrival, officers found the victim, Damonta Thompson, semi-conscious and unresponsive suffering from a gunshot wound to his body. The District of Columbia Department of Fire and Emergency Medical Services transported Mr. Thompson to a hospital, where he was pronounced dead. An autopsy later determined that Mr. Thompson, 25, died from a gunshot wound to the back.
Further investigation by MPD officers revealed that just prior to the shooting, Holmes pulled his vehicle into the 100 block of Irvington Street SW, where he observed Mr. Thompson. Holmes and Mr. Thompson exchanged words. Holmes then pulled his vehicle down the street, got out, and shot his gun four times in the direction of Mr. Thompson, hitting him one time in his back. Mr. Thompson died a short time later.
Approximately, three days after the shooting, Holmes fled the Washington, D.C. metropolitan area to a relative’s residence in St. Petersburg, Fla. On June 5, 2017, Holmes was located by the U.S. Marshals Service and arrested at the residence. He was then transported back to the District of Columbia and was formally charged.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Marshals Service. She also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Jennifer Allen and Jennifer Clark, and Assistant U.S. Attorney Alicia M. Long, who investigated and prosecuted the matter.
District Court Enters Permanent Injunction Against California Company and Chief Executive Officer to Stop the Distribution of Custom Nutritional ProductsRead the Press Release
A California federal court entered a consent decree permanently prohibiting Custompax Inc. of Fremont, California, and owner and Chief Executive Officer Cedric P. Ling from distributing adulterated dietary supplements, the Department of Justice announced today. Under the terms of the injunction, the defendants must stop manufacturing such products until remedial steps are taken.
The Department also filed a complaint in the U.S. District Court for the Northern District of California on Sept. 12, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, the company did not manufacture its dietary supplements in conformity with current good manufacturing practices. For example, the complaint alleged that the defendants failed to establish and maintain adequate specifications and testing procedures for the purity, strength, and composition of its dietary supplements, and failed to adequately test the identities of the ingredients used to make those supplements.
“Dietary supplement manufacturers that fail to comply with basic manufacturing requirements risk the health and well-being of consumers in the United States and abroad,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA remain vigilant against the dangers posed by such adulterated products.”
The consent decree entered today resolves the litigation, requiring that the defendants adhere to the law’s current good manufacturing practices for dietary supplements. The decree also directs Custompax to stop manufacturing dietary supplements until the company implements specified remedial measures. The measures include, among other things, retaining an expert to inspect Custompax’s facilities and certifying that the company’s manufacturing methods, facilities and controls are in conformity with current good manufacturing practices for dietary supplements.
This matter was handled by Trial Attorney Gabriel H. Scannapieco of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Tara Boland of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of California, visit its website at https://www.justice.gov/usao-ndca.
Detroit man admits to selling crack cocaineRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Detroit, Michigan man has admitted to a drug charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Aaron Deshawn Campbell, also known as “Mike,” age 29, pled guilty to one count of “Distribution of Cocaine Base.” Campbell admitted selling crack cocaine in Monongalia County in June 2015.
Campbell faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force, a HIDTA-funded program, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
DeSoto Woman Sentenced for Embezzling $1.6 Million from Grandview School DistrictRead the Press Release
St. Louis, MO – Angela Huskey, was sentenced to 63 months in prison on mail fraud charges in connection with her embezzlement of approximately $1.6 million from the Grandview R-2 School District. She was ordered to pay $1,813,900.63 in restitution.
According to court documents, Huskey worked for Grandview for more than 20 years, being elevated to the position of business manager in 2009. In court today, Huskey admitted that she embezzled no less than $1.6 million from the school district during that time, falsifying the school district’s records to conceal her crimes. In some cases, Huskey admitted, she concealed her embezzlement by inflating the reported wages for other employees of the school district, causing those individuals to pay excess taxes to the Internal Revenue Service. As a result, those individuals paid an additional $13,368.28 in income taxes they did not in fact owe.
Huskey, 51, DeSoto, MO, pled guilty in June to one felony count of mail fraud and appeared today for sentencing before United States District Judge Rodney W. Sippel.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
Cuban Man Sentenced to 60 Months in Federal Prison for Role in Conspiracy Involving Fraudulent Bank CardsRead the Press Release
DALLAS — Jesus Aldana Gutierrez, 33, a Cuban citizen, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 60 months in federal prison for his role in a conspiracy involving fraudulent purchases in North Texas using counterfeit bank cards, announced U.S. Attorney John Parker of the Northern District of Texas.
Gutierrez pleaded guilty in June 2017 to one count of conspiracy to commit access device fraud. He has been in custody since he was arrested in September 2016. Judge Fitzwater also ordered Gutierrez to pay $408,596.46 in restitution, joint and severally with his codefendants.
According to documents filed in the case, from at least January 2015 through July 2016, Gutierrez and others obtained lists of credit and debit card numbers belonging to other individuals online. Gutierrez and his coconspirators used the card information to create counterfeit bank cards using devices to encode the cards with the fraudulently obtained account information. The defendants went to various retail stores and purchased prepaid gift cards and shopping cards with the counterfeit cards. The defendants then took those purchased prepaid gift cards and shopping cards to other stores and purchased items, including other gift cards, to further launder the illegally obtained money.
The scheme was discovered after an investigator from JPMorgan Chase observed a large volume of fraudulent transactions being made with unauthorized JPMorgan Chase debit card numbers at Walmart stores in the Dallas-Fort Worth metroplex area. JPMorgan Chase’s investigator worked with Walmart investigators to collect surveillance footage and conduct surveillance of the defendants engaging in the fraudulent transactions.
The case was investigated by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorneys Jamie L. Hoxie and Shane Read prosecuted.
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Convicted Felon Arraigned on Drug, Firearm ChargesRead the Press Release
PROVIDENCE – Scott Arnum, 28, of Providence, was arraigned and ordered detained on a 3-count indictment charging him with possession with the intent to distribute crack cocaine, felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking, announced Acting United States Attorney Stephen G. Dambruch, Pawtucket Police Chief Tina Goncalves, and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
The indictment was returned on October 5, 2017.
According to information presented to the Court, on September 18, 2017, a Pawtucket Police officer on patrol stopped a vehicle driven by Arnum for a traffic violation, after the driver stopped short of pulling out in front of a police cruiser while failing to use a turn signal. It is alleged the officer also smelled a strong odor of marijuana believed to be emanating from the vehicle.
According to information presented to the Court, as the officer approached the vehicle she allegedly noticed the driver making rapid movements inside the vehicle, and appeared nervous when the officer encountered him. The officer allegedly again detected a strong odor of marijuana emanating from the vehicle. Arnum complied with a request from the officer to exit the vehicle.
According to information presented to the court, Arnum was escorted to the rear of the vehicle where the officer allegedly discovered a large bag of marijuana, and four small packets and one larger packet of crack cocaine below the inside rear waistband of Arnum’s underwear. Another bag allegedly containing crack cocaine was located inside Arnum’s underwear. Another bag containing crack cocaine allegedly fell out of Arnum’s underwear after he was transported to the police station.
According to information presented to the court, an inventory of the vehicle conducted at the scene of Arnum’s arrest resulted in the seizure of a loaded 9mm pistol and two loaded 9mm magazines from the vehicle’s glovebox.
According to court records, Scott was previously convicted in federal court for possession of crack cocaine with the intent to distribute and being a felon in possession of a firearm. In December 2010, Arnum was sentenced to 84 months in federal prison to be followed by five years of supervised release.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron .
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Colorado Man Who Fled to Costa Rica After Trial Sentenced to More Than 7 Years in Prison for Tax CrimesRead the Press Release
A Grand Junction, Colorado, man was sentenced to 88 months in prison today for tax evasion and failing to file personal and corporate income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Timothy Stubbs, 52, was convicted in September 2015 of tax evasion, wilful failure to file an individual income tax return, and wilful failure to file a corporate income tax return following a jury trial in Denver, Colorado. According to the evidence presented at trial, Stubbs owned National Rebate Fund Inc. in Grand Junction. Despite earning more than $7 million between 2005 and 2007, Stubbs did not file corporate income tax returns. Stubbs also earned more than $2 million in income taxable to him personally during those same years and did not file individual tax returns. According to the evidence at trial, Stubbs had not filed a personal tax return since 1992 and had not paid individual income taxes since 1993. To conceal his income, Stubbs paid more than $700,000 in personal expenses from the business bank accounts and acquired more than $370,000 in gold and silver in 2007. The evidence also showed that during those three years Stubbs purchased real estate in Grand Junction and Crested Butte, Colorado, and two condos in Kailua-Kona, Hawaii, which cost in total more than $2.9 million dollars.
In December 2015, two weeks prior to his scheduled sentencing hearing, Stubbs removed his electronic GPS monitoring ankle bracelet and fled to Costa Rica, where he had been living in 2014, prior to being arrested for the indictment.
According to documents filed with the court, Stubbs lied to immigration officials in Costa Rica in an attempt to renew his residency in Costa Rica and stay there permanently in an effort to avoid punishment in this case. In April 2017, Costa Rica deported Stubbs. He has been held in custody pending sentencing since that time and was remanded.
In addition to the term of prison imposed, U.S. District Court Judge Christine M. Arguello ordered Stubbs to serve three years of supervised release and to pay $639,114 in restitution to the IRS and a fine of $50,000.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Lori A. Hendrickson and Leslie A. Goemaat of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Clayton Man Sentenced to 18 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that IVAN ALEXANDER WILLIAMSON, age 26, of Clayton, Oklahoma, was sentenced to 18 months imprisonment, and 3 years of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about February 9, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Clayton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
United States Attorney Brian J. Kuester said, “I am thankful that the Clayton Police Department and the ATF worked together on this case to bring Mr. Williamson to justice. Prosecuting felons for unlawfully possessing firearms is one of the many ways that the United States Attorney’s Office can work with federal, state and local agencies to protect the public that we all serve.”
The Honorable James H. Payne, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Rob Wallace represented the United States.
Chicago Man Sentenced to 30 Months in Federal Prison for Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On October 12, 2017, United States District Judge George L. Russell III sentenced David T. Odom, age 53, of Chicago, Illinois to 30 months in prison, followed by three years of supervised release for a wire fraud conspiracy arising from a scheme to defraud lenders in order to obtain bridge financing for a movie. Judge Russell also ordered Odom to forfeit up to $821,000 after the sale of the property and pay $700,000 in restitution.
Co-conspirator Darryl Wesley Clements, age 50, of Detroit, Michigan, previously pleaded guilty to wire fraud conspiracy. Rodney Patrick Dunn, age 40, of Elkridge, Maryland, pleaded guilty in a related case to receipt of a bribe by a bank official.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Eric M. Thorson, Inspector General for the Department of the Treasury.
David Odom owned CityScope Productions, LLC, and was seeking financing to produce the movie “Season Tickets.” Odom met Darryl Clements through an attorney in New York. Clements created documents falsely stating that CityScope had permanent financing of $13 million for the movie from Bridge Capital and The Shah Group, and that the funds were held in escrow at a bank in Baltimore, where Dunn worked as a bank officer. Dunn had agreed with Clements that when prospective lenders attempted to verify the existence of the escrow accounts, Dunn would text or telephone Clements with the caller’s information and permit Clements to return the telephone call posing as “Rodney Dunn, bank officer.” Dunn believed he would obtain from Clements valuable contacts with professional athletes that would catapult his career change into sports agency. Clements also promised to pay Dunn for his assistance.
In order to carry out the fraud scheme, Clements also created email accounts which appeared to belong to Dunn and The Shah Group, but which Clements actually controlled. In February 2011, Dunn purchased five cashiers’ checks from his employer bank, each for $20 and made payable to Clements. Clements then altered the checks so that they totaled $4 million, the payees were individuals and entities affiliated with the movie, and “The Shah Group,” was the remitter. Clements provided the altered checks to Odom/CityScope. Odom knew that the checks were fraudulent since in fact, no one had been paid. Clements also fraudulently placed Dunn’s forged signature on escrow agreements and proof of funds statements, which Clements emailed to Odom, so that Odom could furnish those fraudulent documents to prospective lenders.
Odom sought financing from multiple lenders including an unsuccessful attempt thwarted by the prospective lender’s local counsel in Baltimore. Among other things, Clements created a fictitious bank statement for a purported escrow account, which Odom admitted he sent to a prospective lender.
In a telephone call on May 9, 2011, Clements posed as Dunn and fraudulently verified the account numbers and balances of the phony escrow accounts to an official of a California company which specialized in providing bridge financing for movies (California finance company). On the same day, the California finance company loaned $2.5 million to CityScope and transmitted the funds by wire, specifying that the funds were to be used solely for movie expenses.
In early 2011, Odom’s house was sold in a foreclosure proceeding to the mortgage lender, and Odom was faced with moving or eviction. Odom admitted that he used the bridge loan funds to spend $821,000 to purchase his home back from the lender, approximately $60,000 to buy two cars, approximately $6,000 to take his family on the "Exotic Western Caribbean Cruise" by Carnival Cruise, approximately $90,000 in transfers to family members, and another approximately $75,000 in personal expenses. Odom also paid some pre-production movie expenses. Clements received $200,000 from the bridge loan proceeds. Dunn received only the promise of money.
Odom did not repay the bridge loan. The California finance company prepared to have the bank repay the loan from the purported escrow account, leaving messages for Dunn at the bank, which he then passed on to Clements. Clements, posing as Dunn, falsely told the company that the loan repayment had been sent to CityScope, and Odom said that CityScope had not received the funds and sent a demand letter to the Baltimore bank. When the California finance company was not repaid the loan, it sued Odom and others to recover its loan. Because of the allegations contained in the civil suit, Odom believed that criminal charges would be brought against Clements, and he told Clements his fears. Clements was engaged in another loan fraud and received proceeds of $4 million. In August 2011, Clements transferred $2 million to CityScope, which Odom used to partially repay the California finance company.
On April 28, 2017, Clements was sentenced to 18 months in the custody of the Bureau of Prisons, and on September 8, 2017, Dunn was sentenced to 30 weekends of incarceration and a fine of $2,000.
Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the FBI, SIGTARP, and the Treasury Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Joyce K. McDonald and Rachel M. Yasser, who prosecuted the case.
Checotah Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JENADIAH RAY BARNES, age 38, of Checotah, Oklahoma, pled guilty to FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from in or about February 2017, the exact date being unknown to the Grand Jury, until on or about August 1, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, JENADIAH RAY BARNES, a/k/a JENEDIAH RAY BARNES, a/k/a JEDEDIAH RAY BARNES, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Tennessee in Wilson County on or about October 19, 1998, for the offense of Conspiracy to Commit Rape of a Child, resided in Indian Country, and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charge arose from an investigation by the Cherokee Nation Marshal’s Service, the McIntosh County Sherriff’s Office, the Federal Bureau of Investigation, and the U.S. Marshals Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Beaumont man pleads guilty to kidnapping girls after theft in SulphurRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Beaumont man pleaded guilty Wednesday to kidnapping two girls after stealing the truck in which they were seated.
Henry Dwight Moore, 23, of Beaumont, Texas, pleaded guilty before U.S. District Judge Jay C. Zainey to one count of kidnapping. According to the guilty plea, Moore drove a black truck into a Lowe’s parking lot in Sulphur, La., on December 13, 2015. He stole a customer’s purse who had walked away from it to return a shopping cart. A bystander saw Moore take the purse, and the bystander jumped into the back of Moore’s truck as he drove away. The truck’s engine died at one point, and the bystander attempted to confront him. Moore got the engine started again and sped off leaving the bystander in the truck bed. Eventually the bystander pleaded to be let out of the back of the truck, and Moore stopped to allow him to leave. Moore then continued westbound on Interstate 10 in the rain. He lost control and struck the side of a Toyota Tundra truck. After the accident, Moore’s truck died again, and he and the Tundra pulled over to the side of the road. After the Tundra owner exited the truck and walked to the passenger side to inspect the damage, Moore jumped into the driver’s seat and drove off. Inside the Tundra truck were the owner’s daughters ages 5 and 7. Moore told the girls he was going to drop them off at a police station, but he didn’t. He abandoned the car and the girls on the side of the road after reaching Orange, Texas. One of the girls located her father’s cell phone and was able to reach help.
Moore faces up to life in prison, not more than five years of supervised release and a $250,000 fine. The court set a December 6, 2017 sentencing date.
The FBI conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
Bankruptcy Attorney Sentenced to 63 Months in Prison for Fraud Offenses, Stealing Millions from ClientsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER RESSLER, 70, of Woodbridge, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 63 months of imprisonment, followed by three years of supervised release, for embezzling millions of dollars from his bankruptcy clients, and related fraud offenses.
According to court documents and statements made in court, RESSLER, an attorney with a bankruptcy practice based in New Haven, defrauded numerous clients in various ways. RESSLER required certain clients who were seeking a Chapter 11 or Chapter 13 reorganization to deposit funds and represented that the monies would be held in trust for purposes of the anticipated reorganization. RESSLER obtained certain of the funds after he had filed formal bankruptcy actions, which created relevant bankruptcy estates for which he had a continuing duty to maintain client assets under his control and to give appropriate accountings to the U.S. Bankruptcy Court. RESSLER was entrusted with hundreds of thousands of dollars from at least 10 businesses involved with Chapter 11 reorganizations. Instead of holding the funds in trust, he used the monies for other purposes.
As part of both Chapter 11 and Chapter 13 filings, RESSLER submitted multiple documents to the U.S. Bankruptcy Court that represented the status of a debtor’s assets and liquidity, including the debtor-in-possession monthly operating reports. In various instances, RESSLER had already improperly dissipated a portion of a client/debtor’s assets and knew that operating reports filed for certain clients contained false representations, which misled both the court and creditors as to a debtor’s true financial condition. When asked directly in hearings as to whether certain assets existed in certain accounts, RESSLER falsely represented that certain assets existed, when he knew that they did not.
RESSLER also engaged in “work outs” where he would attempt to settle a client’s debts with creditors without relying on the protections of bankruptcy. As part of this process, RESSLER requested that his clients deposit with him funds and represented that he would hold the funds in trust and then use them to settle disagreements with financial institutions or other creditors, such as the IRS, or for some other purpose on behalf of his clients. The investigation revealed that RESSLER took $64,000 from a client purportedly to purchase property; $180,000 from a client to hold money in escrow; $45,000 from another client purportedly to buy back a home in foreclosure; $100,000 from a client to hold money in escrow; $97,000 from a client to hold money in escrow; $102,000 and $50,000 from two other clients purportedly to settle tax obligations with the IRS; at least $199,000 from a client to negotiate a settlement with the IRS; $141,000 from a client to settle debts with IRS and a lender; and $165,000 from a client purportedly to negotiate a loan modification with a lender. In each instance, RESSLER used the monies for other purposes.
In the spring of 2016, the U.S. Bankruptcy Court identified criminal conduct by RESSLER in cases involving debtors that were his clients. In one case, the debtor entrusted RESSLER with $450,000, which were proceeds of a legal settlement, to be held by RESSLER’s firm for the benefit of the debtor and its creditors. In a second case, the debtor entrusted RESSLER’s firm with approximately $321,409. In both cases, RESSLER used most of the deposited funds for other purposes than on behalf of the relevant clients.
In total, RESSLER misappropriated $3,401,452 from 48 clients and used the money for personal and family living expenses, to cover the expenses of his practice, and to fund payments relating to other clients and other bankruptcy estates from which he had previously improperly taken monies.
Judge Covello ordered RESSLER to pay a total of $4,856,931 in restitution. The larger restitution figure includes the embezzled funds and additional monies RESSLER did not embezzle, but owes to more than 60 other clients of his law practice.
On June 7, 2017, RESSLER pleaded guilty to one count of wire fraud, two counts of embezzlement from a bankruptcy estate, and one count of bankruptcy fraud.
RESSLER, who has been released on a $100,000 bond since his arrest on April 25, 2016, was ordered to report to prison on January 15, 2018.
RESSLER resigned from the Connecticut bar in March 2016.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Baltimore CFO Pleads Guilty to Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Jay Edward Wilkins, age 47, of Stoney Beach, Maryland, pleaded guilty today to wire fraud and aggravated identity theft stemming from a scheme to defraud his employer of more than $700,000.
The plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the guilty plea and accompanying factual stipulation, Wilkins was the Chief Financial Officer (CFO) of Revolution, a Baltimore business. Beginning in 2014, Wilkins started improperly diverting corporate funds for his own personal use. As the CFO, Wilkins had access to the personal identifying information, including names, dates of birth, social security numbers, and addresses, of current and former Revolution employees. Over a three-year fraud, Wilkins repeatedly logged into the Revolution payroll account, and changed the direct deposit information for multiple employees, causing the payroll company to send more than $700,000 in fraudulent payroll payments to himself.
In addition, Wilkins failed to report a significant portion of the money he obtained from the fraud on his annual tax returns filed with the IRS for the 2014, 2015, and 2016 calendar years. Wilkins faces a maximum sentence of 20 years in prison for the count of wire fraud and 2 years in prison for the count of aggravated identity theft. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 23, 2018.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney’s Harry Gruber and Paul Riley, who are prosecuting the case.
Atlantic County, New Jersey, Man Sentenced to 10 Years in Prison for Trafficking CocaineRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 120 months in prison for his role in a cocaine distribution conspiracy operating in the Atlantic County, Acting U.S. Attorney William E. Fitzpatrick announced.
Kabaka Atiba, a/k/a “Clarence Nixon,” 47, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count 2 of a second superseding indictment charging him with distribution and possession with intent to distribute cocaine. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
The conspiracy that Atiba participated in involved the trafficking of more than 100 kilograms of cocaine. Atiba and other members of the conspiracy used residences in Pleasantville, New Jersey, and Absecon, New Jersey, to store and package cocaine and crack cocaine.
Atiba was supplied with cocaine by his half-brother, Tozine Tiller, 43, of Absecon, and others, and was personally responsible for distributing in excess of 840 grams of crack cocaine from February 2010 through Dec. 10, 2014.
In addition to the prison time, Judge Simandle sentenced Atiba to three years of supervised release.
To date, 12 individuals have been charged for their roles in the drug trafficking conspiracy. All of those charged, with the exception of one defendant who remains a fugitive, have been convicted. Five defendants have been sentenced, including Talib Tiller, 45, of Pleasantville, New Jersey, and Tejohn Cooper, 44, of Galloway Township, New Jersey, who were recently sentenced in September 2017 to 57 and 96 months in prison, respectively.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski in Newark; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation.
He also thanked the N.J. State Police; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: David Rudenstein Esq., Philadelphia
Albany Felon Sentenced for Possession of Semi-Automatic Rifle and HandgunRead the Press Release
ALBANY, NEW YORK - Jason Twiss, 29, of Albany, New York, was sentenced today to serve 80 months in prison for illegally possessing a loaded semi-automatic rifle and a loaded 9-milimeter handgun as a convicted felon, carrying firearms in furtherance of a drug trafficking crime, and attempted possession of a controlled substance with intent to distribute. Senior U.S. District Court Judge Thomas J. McAvoy also ordered that Twiss serve a three-year term of supervised release following his release from federal prison on the three felony counts.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
As part of his November 22, 2016 guilty plea, Twiss admitted that on December 10, 2014, he drove to Kingston, New York, to purchase heroin for later distribution. While in the Kingston Hospital parking lot, Twiss carried and displayed a loaded Ruger .22 caliber semi-automatic rifle with a 30-round magazine, and a loaded Glock 9mm semi-automatic pistol, to guard against the theft of funds he brought to purchase the narcotics.
A prior felony conviction in Florida on narcotics-related charges prohibited Twiss from legally possessing a firearm in New York.
This case was investigated by ATF and the Kingston Police Department, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Akron man with history of violence indicted on firearms chargesRead the Press Release
A federal grand jury returned a four-count indictment charging Delamon A. Marshall, 38, of Akron, with two counts of being a felon in possession of a firearm and ammunition as an armed career criminal and two counts of possessing of a firearm with an obliterated serial number, said U.S. Attorney Justin E. Herdman.
Marshall had a Glock 9 mm pistol and ammunition on Feb. 22, despite prior convictions for bank robbery and two counts of domestic violence which made it illegal for him to have a firearm. He also possessed a Ruger 9 mm pistol and ammunition on March 17, according to the indictment.
The investigation was conducted by members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Copley Police Department, the Bureau of Criminal Investigation for the Ohio Attorney General, Akron Police Department and the Summit County Coroner’s Office. The case is being prosecuted by Assistant United States Attorney Teresa Riley.
If convicted, the defendant’s sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Aggravated Felon Illegally in the United States Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced that yesterday U.S. District Judge John W. deGravelles sentenced JUAN CARLOS RIGOBERTO-MARTINEZ, age 33, of Honduras, to serve 130 months in federal prison for illegally reentering the United States after removal. The defendant’s extensive criminal history, including his status as an aggravated felon, contributed significantly to the lengthy sentence.
Yesterday’s sentence stems from the defendant’s federal conviction on April 12, 2017, for illegally reentering the United States after removal. Immigration authorities first removed the defendant from the United States on January 7, 2008, after he completed a state prison sentence in Georgia for burglary and theft.
Several months later, on June 5, 2008, the U.S. Border Patrol found and arrested the defendant in Texas for illegally reentering the United States after removal. The defendant plead guilty to the offense, resulting in a 77-month federal prison sentence from the U.S. District Court for the Western District of Texas. On December 27, 2013, immigration authorities again removed the defendant from the United States following the completion of his prison term.
Sometime during 2014 or 2015, the defendant again reentered our country illegally. On August 20, 2015, local authorities arrested the defendant for three separate robberies in Baton Rouge. He was detained pending trial on those charges. While in custody, the U.S. Border Patrol learned of the defendant’s status as both an aggravated felon and an illegal alien previously removed from the United States, resulting in the instant charge.
The defendant subsequently plead guilty to both the instant federal charge and to a state charge of simple robbery. On August 21, 2017, he received a seven-year prison sentence for the state charge. Yesterday, he received a 130-month prison sentence for the federal charge. The federal and state prison sentences will run concurrently.
Acting U.S. Attorney Amundson stated, “Keeping our communities safe from aggravated felons, like this defendant, is a top priority of the U.S. Department Justice generally and my office in particular. This is especially true where the offender is illegally in this country and had been previously removed on multiple occasions following federal and state felony convictions.”
This investigation was handled by the U.S. Department of Homeland Security—Immigration and Customs Enforcement. This matter was prosecuted by Assistant United States Attorney J. Brady Casey.
Acoma Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Anthony Phillips, 27, an enrolled member and resident of Acoma Pueblo, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to an assault charge. Under the terms of his plea agreement, Phillips will be sentenced to 24 months in prison followed by a term of supervised release to be determined by the court.
Phillips was arrested on March 30, 2017, on an indictment charging him with assault resulting in serious bodily injury on Jun 19, 2016, on the Acoma Indian Reservation in Cibola County, N.M.
During today’s proceedings, Phillips pled guilty to the indictment and admitted that on June 19, 2016, on the Acoma Indian Reservation, he assaulted a Laguna Pueblo woman by wrapping his arms around her, kicking her legs out from under her, and taking her to the ground and handcuffing her. Phillips further admitted that the victim suffered an avulsion facture to her knee and a torn ACL as the result of the assault. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services. Assistant U.S. Attorney Elisa C. Dimas is prosecuting the case pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
80th Defendant Pleads Guilty to Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 80 of the 103 defendants charged as the result of this investigation have entered guilty pleas and 44 of them have been sentenced.
The investigation was undertaken in support 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 collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This week, Jeneill Ayala, 25, of Albuquerque, entered a guilty plea in federal court to a methamphetamine trafficking charge, becoming the 80th defendant to enter a guilty plea.
Ayala and her co-defendant, David Torrez, 32, were charged by indictment on July 28, 2016, with conspiracy and distributing methamphetamine on June 21, 2016, in Bernalillo County. Ayala pled guilty on Oct. 10, 2017, to both charges of the indictment without the benefit of a plea agreement. Torrez previously pled guilty on Sept. 26, 2017, to Count 2 of the indictment and admitted selling two ounces of methamphetamine to an undercover law enforcement agent on June 21, 2016.
At sentencing, Ayala and Torrez each face a statutory penalty of not less than five years and not more than 40 years in federal prison. Their sentencing hearings have yet to be scheduled.
Twenty of the defendants charged as the result of the ATF investigation have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. Two defendants are fugitives and the charges against two defendants have been dismissed.
This case against Ayala and Torrez was investigated by the Albuquerque office of ATF and is being prosecuted by Assistant U.S. Attorney Eva M. Fontanez.
12 October 2017
Woman Pleads Guilty to Preparing False Income Tax ReturnRead the Press Release
HOUSTON – A local tax return preparer has entered a guilty plea to willfully aiding and assisting in the preparation of a false tax return for a client, announced Acting U.S. Attorney Abe Martinez.
In the plea agreement filed in the record of the case, Crystal T. Kemp admitted she prepared income tax returns for clients of her business in Houston named CQ Tax Preparation. Kemp willfully placed several false items on the tax returns, including false losses from sole proprietorships, false refundable American Opportunity Credits, false earned income credits and false child tax credits.
“Kemp abused her knowledge of the tax system to defraud the U.S. Government and her clients through tricking them into signing documents to support her fraudulent scheme,” said Goss. “IRS-CI is and always will be committed to uncovering all types of schemes used by unscrupulous return preparers to harm the American taxpaying public.”
According to the plea agreement, Kemp admitted she prepared 41 false income tax returns for clients with a combined tax loss to the United States of $429,131. Kemp also prepared a false 2015 income tax return for an undercover IRS agent posing as a taxpayer, claiming a false income tax refund of $5,546 when the tax return should have reflected a tax due and owing of $1,270.
Kemp further admitted in the plea agreement that she claimed a false income tax refund on her 2013 and 2014 personal income tax returns that resulted in a combined tax loss to the United States of an additional $96,608.
U.S. District Judge Sim Lake accepted the plea and has set sentencing for January 19, 2018. At that time, Kemp will face up to three years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Wilmington Physician Charged with Illegal Oxycodone DistributionRead the Press Release
WILMINGTON, Del. – Dr. Charles Esham, of Wilmington, Delaware, was charged today by Indictment with conspiracy to distribute oxycodone and distribution of oxycodone, announced Acting United States Attorney David C. Weiss.
The seventy-six count felony indictment alleges that Dr. Esham illegally prescribed over 7000 oxycodone pills to his co-conspirators and other individuals between December 2012 and February 2016. Esham, who previously maintained a medical office in Wilmington, is alleged to have issued the prescriptions outside of the course of professional practice and not for a legitimate medical purpose. Esham currently does not have an active Delaware medical license.
Esham faces up to twenty years in prison for each count.
“The charges against Dr. Esham illustrate our office’s commitment to combat those who contribute to the opioid crisis, whether they deal drugs on the street or out of a medical office," stated Acting U.S. Attorney Weiss.
Agencies contributing to the investigation include the following: the Drug Enforcement Administration, the Newark Police Department, the Delaware State Police, the New Castle County Police Department, the Maryland State Police, the Wilmington Police Department, Homeland Security Investigations, the University of Delaware Police Department, and the Philadelphia Police Department. It is being prosecuted by Assistant U.S. Attorneys Jennifer Hall and Shawn Weede.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
West Monroe man pleads guilty to illegally possessing four firearmsRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from West Monroe pleaded guilty Tuesday to illegally possessing four firearms and ammunition.
Calvin E. Braswell Jr., 58, of West Monroe, La., pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of possession of a firearm by a convicted felon. The plea will be final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, law enforcement officers searched Braswell’s residence on February 22, 2017 after receiving a tip of drug activity there. During the search, officers found a High Standard, Model C, .22 caliber pistol; a Smith & Wesson Model CTF, .38 caliber revolver; a Heritage, Rough Rider, .22 caliber revolver; a Ruger, Target 22/45, .22 caliber pistol; and related ammunition. It is illegal for Braswell to possess firearms after being convicted of felonies on January 6, 2000 and July 17, 2008.
Braswell faces up to 10 years in prison, three years of supervised release, forfeiture of the weapons and a $250,000 fine. The court set a February 14, 2018 sentencing date.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, the Union Parish Sheriff’s Office and the Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick is prosecuting the case.
Washington Man Charged with Fraud and Identity Theft Offenses Stemming from Credit Card Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on September 21, 2017, a federal grand jury in New Haven returned a four-count indictment charging ELIJAH CHIN, 27, of Federal Way, Washington, with fraud and identity theft offenses.
CHIN appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges. He was released on a $250,000 bond.
The indictment alleges that between approximately December 2016 and February 2017, CHIN was involved in a scheme in which credit card accounts were opened electronically using personal identifying information from Connecticut residents. After the credit card issuers mailed credit cards to the victims’ home addresses, CHIN took the cards directly from the victims’ mailboxes. CHIN then used the credit cards to purchase gift cards, pre-paid cards and other items at various retail establishments in Connecticut.
The indictment charges CHIN with two counts of wire fraud, which carry a maximum term of imprisonment of 20 years on each count, and two counts of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of two years.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service, Wilton Police Department and Ridgefield Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Two from Northwest Ohio indicted for having methamphetamineRead the Press Release
Two men from Northwest Ohio were indicted in federal court for attempting to distribute methamphetamine, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Eric D. Mason, 28, of Lima, and Kasey J. Hutchinson, 25, of Findlay, were each indicted on one count of possession with intent to distribute methamphetamine. The men possessed approximately 54 grams of methamphetamine on Sept. 6, according to the indictment
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation. The case is being handled by Assistant United States Attorney Thomas P. Weldon
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Raleigh County felons plead guilty to federal gun crimesRead the Press Release
BECKLEY, W.Va. – Two Raleigh County felons pleaded guilty today to federal gun charges, announced United States Attorney Carol Casto. Jerry Wayne Phillips, Jr., 40, of Beckley, entered his guilty plea to being a felon in possession of a firearm. In a separate prosecution, Don Edward Christy, Jr., 42, of Prince, also pleaded guilty to being a felon in possession of a firearm.
Phillips admitted that on June 23, 2016, he possessed six stolen firearms, including a Marlin, Model 30AW, .30/.30 caliber rifle; a Norinco, Model Type 56 SKS, 7.62x39mm rifle; a Mossberg, Model 500, 12 gauge shotgun; a Keystone Sporting Arms, Model Cricket, .22 caliber rifle; a Winchester, Model 190, .22 caliber rifle; and a Rossi (Taurus), Model S411220BS, .410/.22 caliber rifle. Phillips was prohibited from possessing any firearms under federal law because of a 1998 felony drug conviction in Raleigh County Circuit Court and a 2004 misdemeanor conviction for domestic violence.
In a separate prosecution, Christy admitted that on July 27, 2017, he sold an SCCY, Model CPX-2, 9mm pistol to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The gun deal took place in the parking lot of Walmart on North Eisenhower Drive in Beckley. Christy further admitted that on August 14, 2017, he sold a Taurus, Model PT 111, Millennium G2, 9mm pistol and approximately 7.8 grams of methamphetamine to a confidential informant working with the ATF. The gun and drug deal took place in the parking lot of AutoZone on Robert C. Byrd Drive in Beckley. Christy was prohibited from possessing any firearms under federal law because of two felony convictions in Raleigh County Circuit Court, one in 2006 for attempt to commit aggravated robbery and another in 2014 for breaking and entering.
Phillips and Christy each face up to 10 years in federal prison when they are sentenced on January 31, 2018.
The investigations were conducted by the ATF and the Beckley Police Department. The plea hearings were held before United States District Judge Irene C. Berger.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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